Document:

Registration Rights Agreement

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this “Agreement”)
      is
      dated as of February 7, 2007, among DOR BioPharma, Inc., a Delaware corporation
      (the "Company"),
      and
      the Investors signatory hereto (each such Investor, an “Investor”
and
      collectively, the “Investors”).

     

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof among the Company and the Investors (the “Purchase
      Agreement”).

     

    The
      Company and the Investors hereby agree as follows:

     

    1.  Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Purchase Agreement shall have the meanings given such terms in the Purchase
      Agreement. As used in this Agreement, the following terms shall have the
      following meanings:

     

    “Advice”
shall
      have the meaning set forth in Section 6(c).

     

    “Common
      Stock”
means
      the common stock of the Company, par value $.001 per share, and any securities
      into which such common stock may hereafter be classified.

     

    “Effectiveness
      Date”
means,
      (a) with respect to the initial Registration Statement required to be filed
      hereunder, the earlier of (i) the 120th day following the Closing Date, and
      (ii)
      the fifth Trading Day following the date on which the Company is notified by
      the
      Commission that the Registration Statement will not be reviewed or is no longer
      subject to further review and comments, and (b) with respect to any additional
      Registration Statement(s) that may be required pursuant to Section 2(b), the
      earlier of (i) the 120th day following (x) if such Registration Statement is
      required because the Commission shall have notified the Company in writing
      that
      certain Registrable Securities were not eligible for inclusion on a previously
      filed Registration Statement, the date or time on which the Commission shall
      indicate as being the first date or time that such Registrable Securities may
      then be included in a Registration Statement, or (y) if such Registration
      Statement is required for a reason other than as described in (x) above, the
      date on which the Company first knows, or reasonably should have known, that
      such additional Registration Statement(s) is required and (ii) the fifth Trading
      Day following the date on which the Company is notified by the Commission that
      such additional Registration Statement will not be reviewed or is no longer
      subject to further review and comments.

     

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2(a).

     

    “Event”
shall
      have the meaning set forth in Section 2(c).

     

    “Event
      Date”
shall
      have the meaning set forth in Section 2(c).

     

    “Filing
      Date”
means,
      with (a) respect to the initial Registration Statement required to be filed
      hereunder, the 30th
      day
      after the Closing, and (b) with respect to any additional Registration
      Statements that may be required pursuant to Section 2(b), the 30th
      day
      following (x) if such Registration Statement is required because the Commission
      shall have notified the Company in writing that certain Registrable Securities
      were not eligible for inclusion on a previously filed Registration Statement,
      the date or time on which the Commission shall indicate as being the first
      date
      or time that such Registrable Securities may then be included in a Registration
      Statement, or (y) if such Registration Statement is required for a reason other
      than as described in (x) above, the date on which the Company first knows,
      or
      reasonably should have known, that such additional Registration Statements
      is
      required. 

     

    “Force
      Majeure”
shall
      mean any unusual event arising from causes reasonably beyond the control of
      the
      Company that could not be reasonably anticipated that causes a delay in or
      prevents the performance of any obligation under this Agreement, including
      but
      not limited to, acts of God, fire, war, terrorism, insurrection, civil
      disturbance, explosion, adverse weather conditions, unusual delay in
      transportation, strikes or other labor disputes, and restraint by court order
      or
      order of public authority. 

     

    “Grace
      Period”
shall
      have the meaning set forth in Section 2(c)(iv).

     

    “Holder”
or
      “Holders”
means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

     

    “Indemnified
      Party”
shall
      have the meaning set forth in Section 5(c).

     

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section 5(c).

     

    “Losses”
shall
      have the meaning set forth in Section 5(a).

     

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

     

    “Prospectus”
means
      the prospectus included in a Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus.

     

    “Registrable
      Securities”
means
      all of the Shares, together with any shares of Common Stock issued or issuable
      upon any stock split, dividend or other distribution, recapitalization or
      similar event with respect to the foregoing.

     

    “Registration
      Statement”
means
      the registration statement(s) required to be filed hereunder, including (in
      each
      case) the Prospectus, amendments and supplements to such registration
      statement(s) or Prospectus, including pre- and post-effective amendments, all
      exhibits thereto, and all material incorporated by reference or deemed to be
      incorporated by reference in such registration statement(s).

     

    “Response
      Date”
shall
      have the meaning set forth in Section 2(c)(ii).

     

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

     

    “Rule
      424”
means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

     

    2.  Registration.

     

    (a)  On
      or
      prior to each Filing Date, the Company shall prepare and file with the
      Commission the Registration Statement covering the resale of all of the
      Registrable Securities for an offering to be made on a continuous basis pursuant
      to Rule 415. The Registration Statement required hereunder shall be on Form
      S-3
      (except if the Company is not then eligible to register for resale the
      Registrable Securities on Form S-3, in which case the Registration shall be
      on
      another appropriate form in accordance herewith). The Registration Statement
      required hereunder shall contain (except if otherwise directed by the Holders)
      the “Plan
      of Distribution”
      attached hereto as Annex
      A.
      Subject
      to the terms of this Agreement, the Company shall use its best efforts to cause
      the Registration Statement to be declared effective under the Securities Act
      as
      promptly as possible after the filing thereof, but in any event not later than
      the Effectiveness Date, and shall use its best efforts to keep the Registration
      Statement continuously effective under the Securities Act until the date when
      all Registrable Securities covered by the Registration Statement have been
      sold
      or may be sold without volume restrictions pursuant to Rule 144(k) as determined
      by the counsel to the Company pursuant to a written opinion letter to such
      effect, addressed and acceptable to the Company’s transfer agent and the
      affected Holders (the “Effectiveness
      Period”).

     

    (b)  If
      for
      any reason the Commission does not permit all of the Shares to be included
      in
      the Registration Statement filed pursuant to Section 2(a), or for any other
      reason any Registrable Securities are not then included in a Registration
      Statement filed under this Agreement, then the Company shall prepare and file
      as
      soon as possible after the date on which the Commission shall indicate as being
      the first date or time that such filing may be made, but in any event by its
      Filing Date, an additional Registration Statement covering the resale of all
      Registrable Securities not already covered by an existing and effective
      Registration Statement for an offering to be made on a continuous basis pursuant
      to Rule 415. Each such Registration Statement shall contain (except if otherwise
      directed by the Holders) the "Plan of Distribution" attached hereto as
Annex
      A.
      The
      Company shall use its best efforts to cause each such Registration Statement
      to
      be declared effective under the Securities Act as soon as possible but, in
      any
      event, no later than its Effectiveness Date, and shall use its best efforts
      to
      keep such Registration Statement continuously effective under the Securities
      Act
      during its entire Effectiveness Period.

     

    (c)  If:
      (i) a
      Registration Statement is not filed on or prior to its Filing Date (if the
      Company files a Registration Statement without affording the Holders the
      opportunity to review and comment on the same as required by Section 3(a)
      hereof, the Company shall not be deemed to have satisfied this clause (i)),
      or
      (ii) prior to the date when such Registration Statement is first declared
      effective by the Commission, the Company fails to file a pre-effective amendment
      and otherwise respond in writing to comments made by the Commission in respect
      of such Registration Statement within 30 calendar days (the “Response
      Date”)
      after
      the receipt of comments by or notice from the Commission that such amendment
      is
      required in order for such Registration Statement to be declared effective,
      or
      (iii) a Registration Statement filed or required to be filed hereunder is not
      declared effective by the Commission on or before its Effectiveness Date, or
      (iv) during the Effectiveness Period, a Registration Statement ceases for any
      reason to remain continuously effective as to all Registrable Securities for
      which it is required to be effective, or the Holders are not permitted to
      utilize the Prospectus therein to resell such Registrable Securities, for in
      any
      and all such cases for more than an aggregate of 20 Trading Days (the
“Grace
      Period”)
      during
      any 12-month period during the Effectiveness Period (which need not be
      consecutive Trading Days)(any such failure or breach being referred to as an
      “Event,”
and
      for purposes of clause (i) or (iii) the date on which such Event occurs, or
      for
      purposes of clause (ii) the date which such 30 calendar days is exceeded, or
      for
      purposes of clause (iv) the date on which such 20 Trading Days is exceeded
      being
      referred to as “Event
      Date”),
      then
      in addition to any other rights the Holders may have hereunder or under
      applicable law: (x) on each such Event Date the Company shall pay to each Holder
      an amount in cash, as partial liquidated damages and not as a penalty, equal
      to
      1.5% of the aggregate Investment Amount paid by such Holder pursuant to the
      Purchase Agreement; and (y) on each monthly anniversary of each such Event
      Date
      (if the applicable Event shall not have been cured by such date) until the
      applicable Event is cured, the Company shall pay to each Holder an amount in
      cash, as partial liquidated damages and not as a penalty, equal to 1.5% of
      the
      aggregate Investment Amount paid by such Holder pursuant to the Purchase
      Agreement. If the Company fails to pay any partial liquidated damages pursuant
      to this Section in full within seven days after the date payable, the Company
      will pay interest thereon at a rate of 10% per annum (or such lesser maximum
      amount that is permitted to be paid by applicable law) to the Holder, accruing
      daily from the date such partial liquidated damages are due until such amounts,
      plus all such interest thereon, are paid in full. The partial liquidated damages
      pursuant to the terms hereof shall apply on a daily pro-rata basis for any
      portion of a month prior to the cure of an Event, except in the case of the
      first Event Date. Notwithstanding the foregoing, any day on which a Force
      Majeure has occurred or is continuing shall not count toward the calculation
      of
      the number of days for the Filing Date, the Effectiveness Date, the Response
      Date and a Grace Period.

     

    3.  Registration
      Procedures

     

    In
      connection with the Company's registration obligations hereunder, the Company
      shall:

     

    (a)  Not
      less
      than three Trading Days prior to the filing of a Registration Statement or
      any
      related Prospectus or any amendment or supplement thereto, the Company shall
      furnish to the Holders copies of the “Selling Stockholders” section of such
      document, the “Plan of Distribution” and any risk factor contained in such
      document that addresses specifically this transaction or the Selling
      Stockholders, as proposed to be filed which documents will be subject to the
      review of such Holders. The Company shall not file a Registration Statement
      or
      any such Prospectus or any amendments or supplements thereto that does not
      contain the disclosure regarding such Holder as a “Selling Stockholder” as
      provided to the Company by such Holder in connection therewith.

     

    (b)  
      (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to the Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep the Registration Statement continuously
      effective as to the applicable Registrable Securities for the Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement, and as so supplemented
      or
      amended to be filed pursuant to Rule 424; (iii) respond as promptly as
      reasonably possible to any comments received from the Commission with respect
      to
      the Registration Statement or any amendment thereto and, as promptly as
      reasonably possible, upon request, provide the Holders true and complete copies
      of all correspondence from and to the Commission relating to the Registration
      Statement; and (iv) comply in all material respects with the provisions of
      the
      Securities Act and the Exchange Act with respect to the disposition of all
      Registrable Securities covered by the Registration Statement (to the extent
      such
      provisions are applicable to the Company). Notwithstanding anything else
      contained herein to the contrary, the Company shall not provide any material,
      nonpublic information to the Holders. 

     

    (c)  Notify
      the Holders of Registrable Securities as promptly as reasonably possible (and,
      in the case of (i)(A) below, not less than two Trading Days prior to such
      filing) and (if requested by any such Person) confirm such notice in writing
      promptly following the day (i)(A) when a Prospectus or any Prospectus supplement
      or post-effective amendment to the Registration Statement is proposed to be
      filed; (B) when the Commission notifies the Company whether there will be a
      “review” of the Registration Statement and whenever the Commission comments in
      writing on the Registration Statement (the Company shall provide copies thereof
      and all written responses thereto to each of the Holders to the extent such
      materials address the Selling Stockholder or Plan of Distribution sections
      of
      such Registration Statement, and to the extent they address risk factors or
      other disclosure in such Registration Statement particular to the Holder or
      the
      transactions contemplated hereby); and (C) with respect to the Registration
      Statement or any post-effective amendment, when the same has become effective;
      (ii) of any request by the Commission or any other Federal or state governmental
      authority during the period of effectiveness of the Registration Statement
      for
      amendments or supplements to the Registration Statement or Prospectus or for
      additional information; (iii) of the issuance by the Commission or any other
      federal or state governmental authority of any stop order suspending the
      effectiveness of the Registration Statement covering any or all of the
      Registrable Securities or the initiation of any Proceedings for that purpose;
      (iv) of the receipt by the Company of any notification with respect to the
      suspension of the qualification or exemption from qualification of any of the
      Registrable Securities for sale in any jurisdiction, or the initiation or
      threatening of any Proceeding for such purpose; and (v) of the occurrence of
      any
      event or passage of time that makes the financial statements included in the
      Registration Statement ineligible for inclusion therein or any statement made
      in
      the Registration Statement or Prospectus or any document incorporated or deemed
      to be incorporated therein by reference untrue in any material respect or that
      requires any revisions to the Registration Statement, Prospectus or other
      documents so that, in the case of the Registration Statement or the Prospectus,
      as the case may be, it will not contain any untrue statement of a material
      fact
      or omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading.

     

    (d)  Use
      reasonable best efforts to avoid the issuance of, or, if issued, obtain the
      withdrawal of (i) any order suspending the effectiveness of the Registration
      Statement, or (ii) any suspension of the qualification (or exemption from
      qualification) of any of the Registrable Securities for sale in any
      jurisdiction, at the earliest practicable moment.

     

    (e)  Deliver
      to each Holder, by 9:00 a.m. (New York City time) on the date following the
      Effective Date, without charge, as many copies of the Prospectus or Prospectuses
      (including each form of prospectus) and each amendment or supplement thereto
      as
      such Persons may reasonably request in connection with resales by the Holder
      of
      Registrable Securities. Subject to the terms of this Agreement, the Company
      hereby consents to the use of such Prospectus and each amendment or supplement
      thereto by each of the selling Holders in connection with the offering and
      sale
      of the Registrable Securities covered by such Prospectus and any amendment
      or
      supplement thereto, subject to notices pursuant to Section 3(c).

     

    (f)  Prior
      to
      any resale of Registrable Securities by a Holder, use its commercially
      reasonable efforts to register or qualify or cooperate with the selling Holders
      in connection with the registration or qualification (or exemption from the
      Registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing, to keep the
      Registration or qualification (or exemption therefrom) effective during the
      Effectiveness Period and to do any and all other acts or things reasonably
      necessary to enable the disposition in such jurisdictions of the Registrable
      Securities covered by the Registration Statement; provided,
      that
      the Company shall not be required to qualify generally to do business or file
      a
      general consent to service of process in any jurisdiction where it is not then
      so qualified.

     

    (g)  If
      requested by the Holders, cooperate with each Holder to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to the Registration Statement, which
      certificates shall be free, to the extent permitted by the Purchase Agreement,
      of all restrictive legends, and to enable such Registrable Securities to be
      in
      such denominations and registered in such names as any such Holders may
      request.

     

    (h)  Upon
      the
      occurrence of any event contemplated by this Section 3, as promptly as
      commercially reasonably possible under the circumstances taking into account
      the
      Company’s good faith assessment of any adverse consequences to the Company and
      its stockholders of the premature disclosure of such events, prepare a
      supplement or amendment, including a post-effective amendment, to the
      Registration Statement or a supplement to the related Prospectus or any document
      incorporated or deemed to be incorporated therein by reference, and file any
      other required document so that, as thereafter delivered, neither the
      Registration Statement nor such Prospectus will contain an untrue statement
      of a
      material fact or omit to state a material fact required to be stated therein
      or
      necessary to make the statements therein, in light of the circumstances under
      which they were made, not misleading. If
      the
      Company notifies the Holders in accordance with clauses (ii) through (v) of
      Section 3(c) above to suspend the use of any Prospectus until the requisite
      changes to such Prospectus have been made, then the Holders shall suspend use
      of
      such Prospectus. The Company will use its best efforts to ensure that the use
      of
      the Prospectus may be resumed as promptly as is commercially practicable. The
      Company shall be entitled to exercise its right under this Section 3(h) to
      suspend the availability of a Registration Statement and Prospectus, subject
      to
      the payment of liquidated damages pursuant to Section 2(c), for a period not
      to
      exceed 60 days (which need not be consecutive days) in any 12 month
      period.

     

    (i)  Comply
      with all applicable rules and regulations of the Commission.

     

    (j)  Each
      Holder agrees to furnish to the Company a completed Questionnaire in the form
      attached to this Agreement as Annex
      B
      (a
“Selling
      Holder Questionnaire”).
      The
      Company shall not be required to include the Registrable Securities of a Holder
      in a Registration Statement and shall not be required to pay any liquidated
      or
      other damages under Section 2(c) to such Holder who fails to furnish to the
      Company a fully completed Selling Holder Questionnaire at least one Trading
      Day
      prior to the Filing Date (subject to the requirements set forth in Section
      3(a)).

     

    (k) Upon
      notification by the Commission that a Registration Statement will not be
      reviewed or is no longer subject to further review and comments, the Company
      shall request acceleration of such Registration Statement such that it becomes
      effective at 5:00 p.m. (New York City time) on the Effective Date. 

    

    4.  Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to the Registration Statement. The
      fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings required to be made with the
      Principal Market on which the Common Stock is then listed for trading, and
      (B)
      in compliance with applicable state securities or Blue Sky laws), (ii) printing
      expenses (including, without limitation, expenses of printing certificates
      for
      Registrable Securities and of printing prospectuses if the printing of
      prospectuses is reasonably requested by the holders of a majority of the
      Registrable Securities included in the Registration Statement), (iii) messenger,
      telephone and delivery expenses, (iv) fees and disbursements of counsel for
      the
      Company, (v) Securities Act liability insurance, if the Company so desires
      such
      insurance, and (vi) fees and expenses of all other Persons retained by the
      Company in connection with the consummation of the transactions contemplated
      by
      this Agreement. In addition, the Company shall be responsible for all of its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without limitation,
      all
      salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit and the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange or market as required hereunder. In no event shall the
      Company be responsible for any broker or similar commissions of the
      Holders.

     

    5.  Indemnification

     

    (a)  Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, agents and employees of
      each
      of them, each Person who controls any such Holder (within the meaning of Section
      15 of the Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, agents and employees of each such controlling Person, to the fullest
      extent permitted by applicable law, from and against any and all losses, claims,
      damages, liabilities, costs (including, without limitation, reasonable
      attorneys' fees) and expenses (collectively, “Losses”),
      as
      incurred, arising out of or relating to any untrue or alleged untrue statement
      of a material fact contained in the Registration Statement, any Prospectus
      or
      any form of prospectus or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein (in the case of any Prospectus or form of prospectus
      or
      supplement thereto, in light of the circumstances under which they were made)
      not misleading, except to the extent, but only to the extent, that (i) such
      untrue statements or omissions are based solely upon information regarding
      such
      Holder furnished in writing to the Company by such Holder expressly for use
      therein, or to the extent that such information relates to such Holder or such
      Holder's proposed method of distribution of Registrable Securities and was
      reviewed and expressly approved in writing by such Holder expressly for use
      in
      the Registration Statement, such Prospectus or such form of Prospectus or in
      any
      amendment or supplement thereto (it being understood that the Holder has
      approved Annex A hereto for this purpose), (ii) in the case of an occurrence
      of
      an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder
      of an outdated or defective Prospectus after the Company has notified such
      Holder in writing that the Prospectus is outdated or defective and prior to
      the
      receipt by such Holder of the Advice or an amended or supplemented Prospectus,
      but only if and to the extent that following the receipt of the Advice or the
      amended or supplemented Prospectus the misstatement or omission giving rise
      to
      such Loss would have been corrected or (iii) such Holder fails to comply with
      any applicable prospectus delivery requirements of the Securities Act applicable
      to it in connection with sales of Registrable Securities pursuant to a
      Registration Statement. The Company shall notify the Holders promptly of the
      institution, threat or assertion of any Proceeding of which the Company is
      aware
      in connection with the transactions contemplated by this Agreement.

     

    (b)  Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, arising solely out of or based solely
      upon: (x) such Holder's failure to comply with the prospectus delivery
      requirements of the Securities Act to the extent that delivery of such
      Prospectus would have avoided such Loss or (y) any untrue or alleged untrue
      statement of a material fact contained in any Registration Statement, any
      Prospectus, or any form of prospectus, or in any amendment or supplement thereto
      or in any preliminary prospectus, or arising solely out of or based solely
      upon
      any omission or alleged omission of a material fact required to be stated
      therein or necessary to make the statements therein not misleading to the
      extent, but only to the extent, that such untrue statements or omissions are
      based solely upon information regarding such Holder furnished in writing to
      the
      Company by such Holder expressly for use therein. In no event shall the
      liability of any selling Holder hereunder be greater in amount than the dollar
      amount of the net proceeds received by such Holder upon the sale of the
      Registrable Securities giving rise to such indemnification
      obligation.

     

    (c)  Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an “Indemnified
      Party”),
      such
      Indemnified Party shall promptly notify the Person from whom indemnity is sought
      (the “Indemnifying
      Party”)
      in
      writing, and the Indemnifying Party shall have the right to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, that the failure of any Indemnified
      Party to give such notice shall not relieve the Indemnifying Party of its
      obligations or liabilities pursuant to this Agreement, except (and only) to
      the
      extent that it shall be finally determined by a court of competent jurisdiction
      (which determination is not subject to appeal or further review) that such
      failure shall have proximately and materially prejudiced the Indemnifying
      Party.

     

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; (2) the Indemnifying Party shall have failed promptly to assume the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such Indemnified Party shall have been advised
      by counsel that a material conflict of interest is likely to exist if the same
      counsel were to represent such Indemnified Party and the Indemnifying Party
      (in
      which case, if such Indemnified Party notifies the Indemnifying Party in writing
      that it elects to employ separate counsel at the expense of the Indemnifying
      Party, the Indemnifying Party shall not have the right to assume the defense
      thereof and the reasonable fees and expenses of up to an aggregate of three
      separate counsel shall be at the expense of the Indemnifying Party). The
      Indemnifying Party shall not be liable for any settlement of any such Proceeding
      effected without its written consent. No Indemnifying Party shall, without
      the
      prior written consent of the Indemnified Party, effect any settlement of any
      pending Proceeding in respect of which any Indemnified Party is a party, unless
      such settlement includes an unconditional release of such Indemnified Party
      from
      all liability on claims that are the subject matter of such
      Proceeding.

     

    Subject
      to the terms of this Agreement, all reasonable fees and expenses of the
      Indemnified Party (including reasonable fees and expenses to the extent incurred
      in connection with investigating or preparing to defend such Proceeding in
      a
      manner not inconsistent with this Section) shall be paid to the Indemnified
      Party, as incurred, within ten Trading Days of written notice thereof to the
      Indemnifying Party; provided,
      that
      the Indemnified Party shall promptly reimburse the Indemnifying Party for that
      portion of such fees and expenses applicable to such actions for which such
      Indemnified Party is not entitled to indemnification hereunder, determined
      based
      upon the relative faults of the parties.

     

    (d)  Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party (by reason of public policy or otherwise), then each
      Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
      contribute to the amount paid or payable by such Indemnified Party as a result
      of such Losses, in such proportion as is appropriate to reflect the relative
      fault of the Indemnifying Party and Indemnified Party in connection with the
      actions, statements or omissions that resulted in such Losses as well as any
      other relevant equitable considerations. The relative fault of such Indemnifying
      Party and Indemnified Party shall be determined by reference to, among other
      things, whether any action in question, including any untrue or alleged untrue
      statement of a material fact or omission or alleged omission of a material
      fact,
      has been taken or made by, or relates to information supplied by, such
      Indemnifying Party or Indemnified Party, and the parties' relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission. The amount paid or payable by a party as a result
      of any Losses shall be deemed to include, subject to the limitations set forth
      in this Section 5, any reasonable attorneys’ or other reasonable fees or
      expenses incurred by such party in connection with any Proceeding to the extent
      such party would have been indemnified for such fees or expenses if the
      indemnification provided for in this Section was available to such party in
      accordance with its terms.

     

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 5(d), no Holder shall be required
      to contribute, in the aggregate, any amount in excess of the amount by which
      the
      proceeds actually received by such Holder from the sale of the Registrable
      Securities subject to the Proceeding exceeds the amount of any damages that
      such
      Holder has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission or other act in question.
      No
      party
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of
      the Securities Act) shall be entitled to contribution from any party that was
      not guilty of such fraudulent misrepresentation.

     

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

     

    6.  Miscellaneous

     

    (a)  Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their obligations
      under this Agreement, each Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement. The Company and each Holder
      agree that monetary damages would not provide adequate compensation for any
      losses incurred by reason of a breach by it of any of the provisions of this
      Agreement and hereby further agrees that, in the event of any action for
      specific performance in respect of such breach, it shall waive the defense
      that
      a remedy at law would be adequate.

     

    (b)  Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to the Registration Statement.

     

    (c)  Discontinued
      Disposition.
      Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(c), such Holder will forthwith discontinue disposition
      of
      such Registrable Securities under the Registration Statement until such Holder's
      receipt of the copies of the supplemented Prospectus and/or amended Registration
      Statement or until it is advised in writing (the “Advice”)
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement. The Company will use its best efforts to ensure that
      the
      use of the Prospectus may be resumed as promptly as is commercially practicable.
      The
      Company agrees and acknowledges that any periods during which the Holder is
      required to discontinue the disposition of the Registrable Securities hereunder
      shall be subject to the provisions of Section 2(c).

     

    (d)  Piggy-Back
      Registrations.
      If at
      any time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than on Form S-4 or Form
      S-8 (each as promulgated under the Securities Act) or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with the stock option or other employee benefit plans, then the
      Company shall send to each Holder a written notice of such determination and,
      if
      within fifteen days after the date of such notice, any such Holder shall so
      request in writing, the Company shall include in such registration statement
      all
      or any part of such Registrable Securities such Holder requests to be
      registered, subject to customary underwriter cutbacks applicable to all holders
      of registration rights.

     

    (e)  No
      Piggyback on Registration Statement.
      Except
      as set forth in Schedule
      6(e),
      neither
      the Company nor any of its security holders (other than the Holders in such
      capacity pursuant hereto) may include securities of the Company in a
      Registration Statement other than the Registrable Securities, and the Company
      shall not after the date hereof enter into any agreement providing any such
      right to any of its security holders. 

     

    (f)  Amendments
      and Waivers.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed by the Company and the Investors holding a majority of the
      Registrable Securities. No waiver of any default with respect to any provision,
      condition or requirement of this Agreement shall be deemed to be a continuing
      waiver in the future or a waiver of any subsequent default or a waiver of any
      other provision, condition or requirement hereof, nor shall any delay or
      omission of either party to exercise any right hereunder in any manner impair
      the exercise of any such right.

     

    (g)  Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be made in accordance with the provisions of the
      Purchase Agreement.

     

    (h)  Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. Each Holder may assign their respective rights hereunder in the manner
      and to the Persons as permitted under the Purchase Agreement. The Company may
      not assign its rights or obligations hereunder. 

     

    (i)  Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

     

    (j)  Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be determined with the provisions of the Purchase
      Agreement.

     

    (k)  Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

     

    (l)  Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their reasonable best efforts
      to find and employ an alternative means to achieve the same or substantially
      the
      same result as that contemplated by such term, provision, covenant or
      restriction. It is hereby stipulated and declared to be the intention of the
      parties that they would have executed the remaining terms, provisions, covenants
      and restrictions without including any of such that may be hereafter declared
      invalid, illegal, void or unenforceable.

     

    (m)  Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    (n)  Independent
      Nature of Holders' Obligations and Rights.
      The
      obligations of each Holder hereunder are several and not joint with the
      obligations of any other Holder hereunder, and no Holder shall be responsible
      in
      any way for the performance of the obligations of any other Holder hereunder.
      Nothing contained herein or in any other agreement or document delivered at
      any
      closing, and no action taken by any Holder pursuant hereto or thereto, shall
      be
      deemed to constitute the Holders as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Holders
      are in any way acting in concert with respect to such obligations or the
      transactions contemplated by this Agreement. Each Holder acknowledges that
      no
      other Holder has acted as agent for such Holder in connection with executing
      this Agreement and that no Holder will be acting as agent of such Holder in
      connection with monitoring the registration of the Registrable Securities or
      enforcing its rights under this Agreement. Each Holder shall be entitled to
      protect and enforce its rights, including without limitation the rights arising
      out of this Agreement, and it shall not be necessary for any other Holder to
      be
      joined as an additional party in any Proceeding for such purpose. The Company
      acknowledges that each of the Investors has been provided with the same
      Transaction Documents and will likely have their respective Registrable
      Securities included on the same Registration Statement, for the purpose of
      closing a transaction with multiple Investors and not because it was required
      or
      requested to do so by any Investor.

     

    *************************

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    DOR
      BIOPHARMA, INC.

     

    By:
      /s/
      Christopher J. Schaber   

    Name:
      Christopher J. Schaber  

    Title:
      Chief Executive Officer

    

     

    

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    [INVESTOR
      SIGNATURE PAGE TO DOR RRA]

    

    Name
      of
      Investing Entity: __________________________

    Signature
      of Authorized Signatory of Investing entity:
      __________________________

    Name
      of
      Authorized Signatory: _________________________

    Title
      of
      Authorized Signatory: __________________________

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      

[INVESTOR]

    

    By:_/s/Robert
      Butts__________

    Name: Robert
      Butts 

    
      	 	
              Title:

            	
              Managing
                Member

            

    

    Southpoint
      Master Fund

    

     

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      

[INVESTOR]

    

    

    By:_/s/Christopher
      J. Schaber and Cathleen Schaber

    
      	 	
              Name:

            	
              Christopher
                J. Schaber and Cathleen Schaber 

            

    

    
      	 	
              Title:

            	 

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      

[INVESTOR]

    

    

    By:_/s/Evan
      Myrianthopoulos and Konstantina Myrianthopoulos JTWROS

    
      	 	
              Name:

            	
              Evan
                Myrianthopoulos and Konstantina Myrianthopoulos
                JTWROS

            

    

    

    
      	 	
              Title:

            	 

    

    

     

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      

[INVESTOR]

    

    

    By:_/s/Vasili
      Myrianthopoulos and Elizabeth Myrianthopoulos 

    
      	 	
              Name:

            	
              Vasili
                Myrianthopoulos and Elizabeth Myrianthopoulos

            

    

    

    
      	 	
              Title:

            	 

    

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      

[INVESTOR]

    

    

    By:_/s/James
      Clavijo 

    
      	 	
              Name:

            	
              James
                Clavijo

            

    

    

    
      	 	
              Title:

            	 

    

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      

[INVESTOR]

    

    

    By:_/s/Steve
      H. Kanzer 

    
      	 	
              Name:

            	
              Steve
                H. Kanzer

            

    

    

    
      	 	
              Title:

            	 

    

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      

[INVESTOR]

    

    

    By:_/s/Harvey
      Sawikin 

    
      	 	
              Name:

            	
              Harvey
                Sawikin

            

    

    Director

    Firebird
      Global Master Fund 

    

    
      	 	
              Title:

            	 

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      

[INVESTOR]

    

    

    By:_/s/Cyrille
      F. Buhrman 

    
      	 	
              Name:

            	
              Cyrille
                F. Buhrman

            

    

    

    
      	 	
              Title:

            	 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      

[INVESTOR]

    

    

    By:_/s/Victor
      P. Thompson 

    
      	 	
              Name:

            	
              Victor
                P. Thompson

            

    

    

    
      	 	
              Title:

            	 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      

[INVESTOR]

    

    

    By:_/s/David
      Gentile 

    
      	 	
              Name:

            	
              David
                Gentile

            

    

    

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      

[INVESTOR]

    

    

    By:_/s/Bernard
      Pismeny 

    
      	 	
              Name:

            	
              Bernard
                Pismeny

            

    

    

    
      	 	
              Title:

            	 

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      

[INVESTOR]

    

    

    By:_/s/Kyle
      Brengel 

    
      	 	
              Name:

            	
              Kyle
                Brengel

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     
      

[INVESTOR]

    

    

    By:_/s/Anthony
      G. Bianchi 

    
      	 	
              Name:

            	
              Anthony
                G. Bianchi

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
      6(e)

    

    As
      per
      issued warrants:

    

    
      	
              Bristol
                Investment Partners LPI

            	
              62,500

            
	
              Arthur
                B. Whitcomb

            	
              37,500

            
	
              Crystal
                Research

            	
              150,000

            
	
              Keith
                Lippert

            	
              85,000

            
	
              John
                Heilshorn

            	
              85,000

            
	
              Jeffrey
                Kraws

            	
              40,000

            
	
              Karen
                Goldfarb

            	
              40,000

            
	
              TOTAL

            	
              500,000

            

    

    

    As
      per
      issued unregistered shares:

    

    
      	
              Sigma
                Tau                  
                

            	
              4,065,041

            
	
              Alpha
                Capital AG                  
                

            	
              134,781

            
	
              Platinum
                Partners

            	
              272,861

            
	
              Cyrille
                Buhrman

            	
              227,384

            
	
              Iroquois
                Master Fund LTD

            	
              204,545

            
	
              Little
                Gem Life Sciences Fund, LLC

            	
              45,477

            
	
              Ed
                Burke

            	
              45,477

            
	
              Steven
                Mark

            	
              11,369

            
	
              Evan
                Myrianthopoulos

            	
              11,369

            
	
              Vasili
                Myrianthopoulos

            	
              9,095

            
	
              David
                Gentile

            	
              7,580

            
	
              Kyle
                Brengel

            	
              7,580

            
	
              Bernard
                Pismeny

            	
              7,580

            
	
              Michael
                Sember 

            	
              6,301

            
	
              Ken
                Alberstadt

            	
              4,548

            
	
              Voisin
                Consulting

            	
              312,500

            
	
              Adam
                Rumage

            	
              60,000

            
	
              BMC
                Communications Group

            	
              142,857

            
	
              TOTAL

            	
              5,576,345

            

    

    

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEX
      A

     

    

     

    Plan
      of
      Distribution

     

    The
      selling stockholders and any of their pledgees, donees, transferees, assignees
      and successors-in-interest may, from time to time, sell any or all of their
      shares of common stock on any stock exchange, market or trading facility on
      which the shares are traded or in private transactions. These sales may be
      at
      fixed or negotiated prices. The selling stockholders may use any one or more
      of
      the following methods when selling shares:

     

    	·  	
            ordinary
              brokerage transactions and transactions in which the broker-dealer
              solicits investors;

          

     

    	·  	
            block
              trades in which the broker-dealer will attempt to sell the shares as
              agent
              but may position and resell a portion of the block as principal to
              facilitate the transaction;

          

     

    	·  	
            purchases
              by a broker-dealer as principal and resale by the broker-dealer for
              its
              account;

          

     

    	·  	
            an
              exchange distribution in accordance with the rules of the applicable
              exchange;

          

     

    	·  	
            privately
              negotiated transactions;

          

     

    	·  	
            to
              cover short sales and other hedging transactions made after the date
              that
              the registration statement of which this prospectus is a part is declared
              effective by the Securities and Exchange
              Commission;

          

     

    	·  	
            broker-dealers
              may agree with the selling stockholders to sell a specified number
              of such
              shares at a stipulated price per share;

          

     

    	·  	
            a
              combination of any such methods of sale;
              and

          

     

    	·  	
            any
              other method permitted pursuant to applicable
              law.

          

     

    The
      selling stockholders may also sell shares under Rule 144 under the Securities
      Act, if available, rather than under this prospectus.

     

    Broker-dealers
      engaged by the selling stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the selling stockholders (or, if any broker-dealer acts as agent for the
      investor of shares, from the purchaser) in amounts to be negotiated. The selling
      stockholders do not expect these commissions and discounts to exceed what is
      customary in the types of transactions involved.

     

    The
      selling stockholders may from time to time pledge or grant a security interest
      in some or all of the Shares owned by them and, if they default in the
      performance of their secured obligations, the pledgees or secured parties may
      offer and sell shares of common stock from time to time under this prospectus,
      or under an amendment to this prospectus under Rule 424(b)(3) or other
      applicable provision of the Securities Act of 1933 amending the list of selling
      stockholders to include the pledgee, transferee or other successors in interest
      as selling stockholders under this prospectus.

     

      Upon
        our
        being notified in writing by a selling stockholder that any material arrangement
        has been entered into with a broker-dealer for the sale of common stock through
        a block trade, special offering, exchange distribution or secondary distribution
        or a purchase by a broker or dealer, a supplement to this prospectus will
        be
        filed, if required, pursuant to Rule 424(b) under the Securities Act, disclosing
        (i) the name of each such selling stockholder and of the participating
        broker-dealer(s), (ii) the number of shares involved, (iii) the price at
        which
        such shares of common stock were sold, (iv) the commissions paid or discounts
        or
        concessions allowed to such broker-dealer(s), where applicable, (v) that
        such
        broker-dealer(s) did not conduct any investigation to verify the information
        set
        out or incorporated by reference in this prospectus, and (vi) other facts
        material to the transaction. In addition, upon our being notified in writing
        by
        a selling stockholder that a donee or pledge intends to sell more than 500
        shares of common stock, a supplement to this prospectus will be filed if
        then
        required in accordance with applicable securities law.

     

    The
      selling stockholders also may transfer the shares of common stock in other
      circumstances, in which case the transferees, pledgees or other successors
      in
      interest will be the selling beneficial owners for purposes of this
      prospectus.

     

    The
      selling stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be "underwriters" within the meaning of
      the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Discounts, concessions, commissions and
      similar selling expenses, if any, that can be attributed to the sale of
      securities will be paid by the selling stockholders and/or the purchasers of
      the
      securities. 

     

    Each
      selling stockholder that is affiliated with a registered broker-dealer has
      confirmed to us that, at the time it acquired the securities subject to the
      registration statement of which this prospectus is a part, it did not have
      any
      agreement or understanding, directly or indirectly, with any person to
      distribute any of such securities. The Company has advised each selling
      stockholder that it may not use shares registered on the registration statement
      of which this prospectus is a part to cover short sales of our common stock
      made
      prior to the date on which such registration statement was declared effective
      by
      the SEC.

     

    We
      are
      required to pay certain fees and expenses incident to the registration of the
      shares. We have agreed to indemnify the selling stockholders against certain
      losses, claims, damages and liabilities, including liabilities under the
      Securities Act. We agreed to keep this prospectus effective until the earlier
      of
      (i) the date on which the shares may be resold by the selling stockholders
      without registration and without regard to any volume limitations by reason
      of
      Rule 144(e) under the Securities Act or any other rule of similar effect and
      (ii) such time as all of the shares have been publicly sold.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Annex
      B

     

    DOR
      BIOPHARMA, INC.

     

    Selling
      Securityholder Questionnaire

     

    The
      undersigned beneficial owner of shares of Common Stock (the “Registrable
      Securities”)
      of DOR
      BioPharma, Inc. (the “Company”)
      understands that the Company has filed or intends to file with the Securities
      and Exchange Commission a registration statement (the “Registration
      Statement”)
      for the
      registration and resale under the Securities Act of 1933, as amended (the
“Securities
      Act”),
      of the
      Registrable Securities. This Questionnaire is delivered pursuant to the terms
      of
      the Registration Rights Agreement, dated as of February ____, 2007 (the
“Registration
      Rights Agreement”),
      among
      the Company and the Investors named therein. A copy of the Registration Rights
      Agreement is available from the Company upon request at the address set forth
      below. All capitalized terms not otherwise defined herein shall have the
      meanings ascribed thereto in the Registration Rights Agreement.

     

    Certain
      legal consequences arise from being named as a selling securityholder in the
      Registration Statement and the related prospectus. Accordingly, holders and
      beneficial owners of Registrable Securities are advised to consult their own
      securities law counsel regarding the consequences of being named or not being
      named as a selling securityholder in the Registration Statement and the related
      prospectus.

     

    The
      undersigned beneficial owner (the “Selling
      Securityholder”)
      of
      Registrable Securities hereby elects to include the Registrable Securities
      owned
      by it and listed below in Item 3 (unless otherwise specified under such Item
      3)
      in the Registration Statement.

     

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

     

    1. Name.

     

    
      	 	
              (a)

            	
              Full
                Legal Name of Selling
                Securityholder

            

    

     

    
      	 
	 

    

    

    
      	 	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities Listed in Item 3 below are
                held:

            

    

     

    
      	 
	 

    

    

    
      	 	
              (c)

            	
              Full
                Legal Name of each Control Person (which means a natural person that
                directly or indirectly has power to vote or dispose of the securities
                covered by this Questionnaire):

            

    

     

    
      	 
	 

    

    

     

    2.
      Address for Notices to Selling Securityholder:

     

    
      	 
	 
	 
	
              Telephone: 

            
	
              Fax: 

            
	
              Contact
                Person: 

            

    

    

    3.
      Beneficial Ownership of Registrable Securities:

     

    
      	 	
              (a)

            	
              Type
                and Principal Amount of Registrable Securities beneficially
                owned:

            

    

     

    
      	 
	 
	 
	 

    

    

     

    4.
      Broker-Dealer Status:

     

    
      	 	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes
       No
      

     

    
      	 	
              Note:

            	
              If
                yes, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    
      	 	
              (b)

            	
              Are
                you an affiliate of a
                broker-dealer?

            

    

     

    Yes
       No
      

     

    
      	 	
              (c)

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                bought
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable
                Securities?

            

    

     

    Yes
       No
      

     

    
      	 	
              Note:

            	
              If
                no, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    5.
      Beneficial Ownership of Other Securities of the Company Owned by the Selling
      Securityholder.

     

    Except
      as set forth below in this Item 5, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the Registrable
      Securities listed above in Item 3.

     

    
      	 	
              (a)

            	
              Type
                and Amount of Other Securities beneficially owned by the Selling
                Securityholder:

            

    

     

    
      	 
	 
	 

    

    

    6.
      Relationships with the Company:

     

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

     

    State
      any
      exceptions here:

     

    
      	 
	 
	 

    

    

     

    7. Claims
      against the Company:

     

    Except
      as set forth below, to the actual knowledge of the officers and directors or
      persons performing similar functions for the undersigned, neither the
      undersigned nor any of its Affiliates, officers, directors or principal equity
      holders (owners of 5% or more of the equity securities of the undersigned)
      has
      any claims against the Company, its directors, officers, agents and employees,
      and each Person who controls the Company (within the meaning of Section 15
      of
      the Securities Act and Section 20 of the Exchange Act) relating to the Company’s
      sale of Registrable Securities to the undersigned.

     

    State
      any
      exceptions here:

     

    ________________________________________________________________________________________________________________________________________________________________________________________________________________________

     

    

     

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein (other than changes in beneficial ownership
      of Common Stock after the effectiveness of the Registration Statement) that
      may
      occur subsequent to the date hereof at any time prior to the effectiveness
      of
      the Registration Statement or while the Registration Statement remains
      effective.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers hereto and the inclusion of such information
      in
      the Registration Statement and the related prospectus and any amendments or
      supplements thereto. The undersigned understands that such information will
      be
      relied upon by the Company in connection with the preparation or amendment
      of
      the Registration Statement and the related prospectus.

     

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this
      Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

     

    Dated:
        Beneficial
      Owner:  

    
      

    

    By:  

    Name:

    Title:

    

    

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED QUESTIONNAIRE, AND RETURN THE ORIGINAL
      BY OVERNIGHT MAIL, TO:  

    

    Leslie
      J. Croland

    Edwards
      Angell Palmer & Dodge, LLP

    350
      E. Las Olas Boulevard

    Suite
      1150

    Fort
      Lauderdale, FL 33301-4215

    Fax
      No. (954) 727-2601Unassociated Document

     

    

     

    MORGAN
      STANLEY ABS CAPITAL I INC.,

     

    Depositor,

     

    COUNTRYWIDE
      HOME LOANS SERVICING LP,

     

    Servicer,

     

    SAXON
      MORTGAGE SERVICES, INC.,

     

    Servicer,

     

    NC
      CAPITAL CORPORATION,

     

    Responsible
      Party,

     

    and

     

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY,

     

    Trustee

     

    
      
        

      

    

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of January 1, 2007

    
      
        

      

    

     

    MORGAN
      STANLEY ABS CAPITAL I INC. TRUST 2007-NC1

     

    MORTGAGE
      PASS-THROUGH CERTIFICATES,

     

    SERIES 2007-NC1

     

    

     

    

    
      
        
          [

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF
      CONTENTS

     

    

      
        	
                ARTICLE
                  I

              
	 
	
                DEFINITIONS

              
	 
	 
	
                ARTICLE
                  II

              
	 	 

      

      
        	
                CONVEYANCE
                  OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES

              
	 
	
                Section
                  2.01

              	
                Conveyance
                  of Mortgage Loans

              
	
                Section
                  2.02

              	
                Acceptance
                  by the Trustee of the Mortgage Loans

              
	
                Section
                  2.03

              	
                Representations
                  and Warranties; Remedies for Breaches of Representations and Warranties
                  with Respect to the Mortgage Loans

              
	
                Section
                  2.04

              	
                Execution
                  and Delivery of Certificates

              
	
                Section
                  2.05

              	
                REMIC
                  Matters

              
	
                Section
                  2.06

              	
                Representations
                  and Warranties of the Depositor

              
	
                Section
                  2.07

              	
                Enforcement
                  of Obligations for Breach of Mortgage Loan
                  Representations.

              

      

       

      
        	
                ARTICLE
                  III

              
	 
	
                ADMINISTRATION
                  AND SERVICING OF MORTGAGE LOANS

              
	 
	
                Section
                  3.01

              	
                Servicers
                  to Service Mortgage Loans.

              
	
                Section
                  3.02

              	
                Subservicing
                  Agreements between a Servicer and Subservicers

              
	
                Section
                  3.03

              	
                Successor
                  Subservicers

              
	
                Section
                  3.04

              	
                Liability
                  of the Servicers

              
	
                Section
                  3.05

              	
                No
                  Contractual Relationship between Subservicers and the
                  Trustee

              
	
                Section
                  3.06

              	
                Assumption
                  or Termination of Subservicing Agreements by Trustee

              
	
                Section
                  3.07

              	
                Collection
                  of Certain Mortgage Loan Payments

              
	
                Section
                  3.08

              	
                Subservicing
                  Accounts

              
	
                Section
                  3.09

              	
                Collection
                  of Taxes, Assessments and Similar Items; Escrow
                  Accounts

              
	
                Section
                  3.10

              	
                Collection
                  Accounts

              
	
                Section
                  3.11

              	
                Withdrawals
                  from the Collection Accounts

              
	
                Section
                  3.12

              	
                Investment
                  of Funds in the related Collection Account and the Distribution
                  Account

              
	
                Section
                  3.13

              	
                Maintenance
                  of Hazard Insurance and Errors and Omissions and Fidelity
                  Coverage

              
	
                Section
                  3.14

              	
                Enforcement
                  of “Due-on-Sale” Clauses; Assumption Agreements

              
	
                Section
                  3.15

              	
                Realization
                  upon Defaulted Mortgage Loans

              
	
                Section
                  3.16

              	
                Release
                  of Mortgage Files

              
	
                Section
                  3.17

              	
                Title,
                  Conservation and Disposition of REO Property

              
	
                Section
                  3.18

              	
                Notification
                  of Adjustments

              
	
                Section
                  3.19

              	
                Access
                  to Certain Documentation and Information Regarding the Mortgage
                  Loans

              
	
                Section
                  3.20

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

              
	
                Section
                  3.21

              	
                Servicing
                  Compensation

              
	
                Section
                  3.22

              	
                Annual
                  Statement as to Compliance

              
	
                Section
                  3.23

              	
                Annual
                  Reports on Assessment of Compliance with Servicing Criteria; Annual
                  Independent Public Accountants’ Attestation Report

              
	
                Section
                  3.24

              	
                Trustee
                  to Act as Servicer

              
	
                Section
                  3.25

              	
                Compensating
                  Interest

              
	
                Section
                  3.26

              	
                Credit
                  Reporting; Gramm-Leach-Bliley Act

              
	
                Section
                  3.27

              	
                Optional
                  Purchase of Delinquent Mortgage
                  Loans

              

      

       

      
        	
                ARTICLE
                  IV

              
	 
	
                DISTRIBUTIONS
                  AND ADVANCES BY THE SERVICER

              
	 
	
                Section
                  4.01

              	
                Advances

              
	
                Section
                  4.02

              	
                Priorities
                  of Distribution

              
	
                Section
                  4.03

              	
                Monthly
                  Statements to Certificateholders

              
	
                Section
                  4.04

              	
                Certain
                  Matters Relating to the Determination of LIBOR

              
	
                Section
                  4.05

              	
                Allocation
                  of Applied Realized Loss Amounts

              
	
                Section
                  4.06

              	
                Swap
                  Account

              

      

       

      
        	
                ARTICLE
                  V

              
	 	 
	
                THE
                  CERTIFICATES

              
	 	 
	
                Section
                  5.01

              	
                The
                  Certificates

              
	
                Section
                  5.02

              	
                Certificate
                  Register; Registration of Transfer and Exchange of
                  Certificates

              
	
                Section
                  5.03

              	
                Mutilated,
                  Destroyed, Lost or Stolen Certificates

              
	
                Section
                  5.04

              	
                Persons
                  Deemed Owners

              
	
                Section
                  5.05

              	
                Access
                  to List of Certificateholders’ Names and Addresses

              
	
                Section
                  5.06

              	
                Maintenance
                  of Office or Agency

              

      

       

      
        	
                ARTICLE
                  VI

              
	 	 
	
                THE
                  DEPOSITOR AND THE SERVICERS

              
	 	 
	
                Section
                  6.01

              	
                Respective
                  Liabilities of the Depositor and the Servicer

              
	
                Section
                  6.02

              	
                Merger
                  or Consolidation of the Depositor or the Servicers

              
	
                Section
                  6.03

              	
                Limitation
                  on Liability of the Depositor, the Servicers and Others

              
	
                Section
                  6.04

              	
                Limitation
                  on Resignation of a Servicer

              
	
                Section
                  6.05

              	
                Additional
                  Indemnification by the Servicers; Third Party
                  Claims

              

      

       

      
        	
                ARTICLE
                  VII

              
	 	 
	
                DEFAULT

              
	 	 
	
                Section
                  7.01

              	
                Events
                  of Default

              
	
                Section
                  7.02

              	
                Trustee
                  to Act; Appointment of Successor

              
	
                Section
                  7.03

              	
                Notification
                  to Certificateholders

              

      

       

      
        	
                ARTICLE
                  VIII

              
	 	 
	
                CONCERNING
                  THE TRUSTEE

              
	 	 
	
                Section
                  8.01

              	
                Duties
                  of the Trustee

              
	
                Section
                  8.02

              	
                Certain
                  Matters Affecting the Trustee

              
	
                Section
                  8.03

              	
                Trustee
                  Not Liable for Certificates or Mortgage Loans

              
	
                Section
                  8.04

              	
                Trustee
                  May Own Certificates

              
	
                Section
                  8.05

              	
                Trustee’s
                  Fees and Expenses

              
	
                Section
                  8.06

              	
                Eligibility
                  Requirements for the Trustee

              
	
                Section
                  8.07

              	
                Resignation
                  and Removal of the Trustee

              
	
                Section
                  8.08

              	
                Successor
                  Trustee

              
	
                Section
                  8.09

              	
                Merger
                  or Consolidation of the Trustee

              
	
                Section
                  8.10

              	
                Appointment
                  of Co-Trustee or Separate Trustee

              
	
                Section
                  8.11

              	
                Tax
                  Matters

              
	
                Section
                  8.12

              	
                Periodic
                  Filings

              
	
                Section
                  8.13

              	
                Tax
                  Treatment of Swap Payments and Swap Termination
                  Payments

              
	
                Section
                  8.14

              	
                Distributions
                  on the REMIC Regular Interests

              
	
                Section
                  8.15

              	
                Certain
                  Interest Shortfalls on the REMIC Regular Interests.

              
	
                Section
                  8.16

              	
                Allocation
                  of Realized Losses to the REMIC Regular
                  Interests.

              

      

       

      
        	
                ARTICLE
                  IX

              
	 	 
	
                TERMINATION

              
	 	 
	
                Section
                  9.01

              	
                Termination
                  upon Liquidation or Purchase of the Mortgage Loans

              
	
                Section
                  9.02

              	
                Final
                  Distribution on the Certificates

              
	
                Section
                  9.03

              	
                Additional
                  Termination Requirements

              

      

       

      
        	
                ARTICLE
                  X

              
	 	 
	
                MISCELLANEOUS
                  PROVISIONS

              
	 	 
	
                Section
                  10.01

              	
                Amendment

              
	
                Section
                  10.02

              	
                Recordation
                  of Agreement; Counterparts

              
	
                Section
                  10.03

              	
                Governing
                  Law

              
	
                Section
                  10.04

              	
                Intention
                  of Parties

              
	
                Section
                  10.05

              	
                Notices

              
	
                Section
                  10.06

              	
                Severability
                  of Provisions

              
	
                Section
                  10.07

              	
                Assignment;
                  Sales; Advance Facilities

              
	
                Section
                  10.08

              	
                Limitation
                  on Rights of Certificateholders

              
	
                Section
                  10.09

              	
                Inspection
                  and Audit Rights

              
	
                Section
                  10.10

              	
                Certificates
                  Nonassessable and Fully Paid

              
	
                Section
                  10.11

              	
                Rule
                  of Construction

              
	
                Section
                  10.12

              	
                Waiver
                  of Jury Trial

              
	
                Section
                  10.13

              	
                Rights
                  of the Swap Provider

              
	
                Section
                  10.14

              	
                Regulation
                  AB Compliance; Intent of the Parties; Reasonableness. The parties
                  hereto
                  acknowledge that interpretations of the requirements of Regulation
                  AB may
                  change over time, whether due to interpretive guidance provided
                  by the
                  Commission or its staff, consensus among participants in the asset-backed
                  securities markets, advice of counsel, or otherwise, and agree
                  to comply
                  with all reasonable requests made by the Depositor in good faith
                  for
                  delivery of information under these provisions on the basis of
                  evolving
                  interpretations of Regulation
                  AB

              

      

    

     

    SCHEDULES

    

    
      	
              Schedule I

            	
              Mortgage
                Loan Schedule

            
	
              Schedule II

            	
              Representations
                and Warranties of Countrywide Servicing, as Servicer

            
	
              Schedule III

            	
              Representations
                and Warranties of the Responsible Party as to the Mortgage
                Loans

            
	
              Schedule IV

            	
              Representations
                and Warranties of the Responsible Party as to the Responsible
                Party

            
	
              Schedule V

            	
              Representations
                and Warranties of Morgan Stanley ABS Capital I Inc. as to the
                Mortgage Loans

            
	
              Schedule VI

            	
              Representations
                and Warranties of Saxon, as
                Servicer

            

    

     

     

    EXHIBITS

    

    
      	
              Exhibit A

            	
              Form
                of Class A, Class M and Class B
                Certificate

            
	
              Exhibit B

            	
              Form
                of Class P Certificate

            
	
              Exhibit C

            	
              Form
                of Residual Certificates

            
	
              Exhibit D

            	
              Form
                of Class X Certificate

            
	
              Exhibit E

            	
              Form
                of Initial Certification of Trustee

            
	
              Exhibit F

            	
              Form
                of Document Certification and Exception Report of
                Trustee

            
	
              Exhibit G

            	
              Form
                of Residual Transfer Affidavit

            
	
              Exhibit H

            	
              Form
                of Transferor Certificate

            
	
              Exhibit I

            	
              Form
                of Rule 144A Letter

            
	
              Exhibit J

            	
              Form
                of Request for Release

            
	
              Exhibit K

            	
              Form
                of Contents for Each Mortgage File

            
	
              Exhibit L

            	
              Form
                of Certification to be provided with Form 10-K

            
	
              Exhibit M

            	
              Form
                of Certification to be provided by the Trustee to be provided to
                Depositor

            
	
              Exhibit N

            	
              Form
                of Certification to be provided by Saxon to the
                Depositor

            
	
              Exhibit O

            	
              Form
                of Servicer Power of Attorney

            
	
              Exhibit P

            	
              Servicing
                Criteria

            
	
              Exhibit
                Q

            	
              Additional
                Form 10-D Disclosure

            
	
              Exhibit
                R

            	
              Additional
                Form 10-K Disclosure

            
	
              Exhibit
                S

            	
              Form
                8-K Disclosure Information

            
	
              Exhibit
                T

            	
              Interest
                Rate Swap Agreement

            
	
              Exhibit U

            	
              Purchase
                Agreement

            
	
              Exhibit V

            	
              Form
                of Additional Disclosure Notification

            
	
              Exhibit
                W-1

            	
              Form
                of Saxon Servicer Reports

            
	
              Exhibit
                W-2

            	
              Form
                of Countrywide Servicing Servicer Reports

            
	
              Exhibit
                X

            	
              Form
                of Countrywide Amendment to Regulation AB

            
	
              Exhibit
                Y

            	
              Representations
                and Warranties Agreement

            
	
              Exhibit
                Z

            	
              Interest
                Rate Cap Agreement

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    

    THIS
      POOLING AND SERVICING AGREEMENT, dated as of January 1, 2007, among MORGAN
      STANLEY ABS CAPITAL I INC., a Delaware corporation, as depositor (the
“Depositor”),
      COUNTRYWIDE HOME LOANS SERVICING LP, a Texas limited partnership, as a servicer
      (“Countrywide
      Servicing”),
      SAXON
      MORTGAGE SERVICES, INC., a Texas corporation, as a servicer (“Saxon”
and
      together with Countrywide Servicing, the “Servicers”),
      NC
      CAPITAL CORPORATION, a California corporation, as responsible party (the
“Responsible
      Party”),
      and
      DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking association, as trustee
      (the “Trustee”).

     

    W
      I T
      N E S S E T H:

     

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

     

    PRELIMINARY
      STATEMENT

     

    The
      Depositor is the owner of the Trust Fund that is hereby conveyed to the Trustee
      in return for the Certificates.

     

    REMIC
      I

     

    As
      provided herein, the Trustee will make an election to treat the segregated
      pool
      of assets consisting of the Trust Fund (exclusive of the Excess Reserve Fund
      Account and, for the avoidance of doubt, the Supplemental Interest Trust and
      the
      Swap Agreement) as a REMIC for federal income tax purposes, and such segregated
      pool of assets will be designated as “REMIC I”. The Class R-I Interest will
      represent the sole class of “residual interests” in REMIC I for purposes of the
      REMIC Provisions.

     

    The
      following table irrevocably sets forth the designation, the Uncertificated
      REMIC
      I Pass-Through Rate, the initial Uncertificated Principal Balance, and for
      purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the
      “latest possible maturity date” for each of the REMIC I Regular Interests. None
      of the REMIC I Regular Interests will be certificated.

     

    

      
        	
                Designation

              	 	
                Uncertificated
                  REMIC I

                Pass-Through
                  Rate

              	 	
                Initial
                  Uncertificated

                Principal
                  Balance

              	 	
                Latest
                  Possible

                Maturity
                  Date(1)

              
	
                I

              	 	
                (2)

              	 	
                $

              	
                158,280,212.97
                  

              	 	
                November
                  2036

              
	
                I-1-A

              	 	
                (2)

              	 	
                $

              	
                5,376,801.32
                  

              	 	
                November
                  2036

              
	
                I-1-B

              	 	
                (2)

              	 	
                $

              	
                5,376,801.32
                  

              	 	
                November
                  2036

              
	
                I-2-A

              	 	
                (2)

              	 	
                $

              	
                5,150,793.94
                  

              	 	
                November
                  2036

              
	
                I-2-B

              	 	
                (2)

              	 	
                $

              	
                5,150,793.94
                  

              	 	
                November
                  2036

              
	
                I-3-A

              	 	
                (2)

              	 	
                $

              	
                4,932,030.80
                  

              	 	
                November
                  2036

              
	
                I-3-B

              	 	
                (2)

              	 	
                $

              	
                4,932,030.80
                  

              	 	
                November
                  2036

              
	
                I-4-A

              	 	
                (2)

              	 	
                $

              	
                4,722,629.87
                  

              	 	
                November
                  2036

              
	
                I-4-B

              	 	
                (2)

              	 	
                $

              	
                4,722,629.87
                  

              	 	
                November
                  2036

              
	
                I-5-A

              	 	
                (2)

              	 	
                $

              	
                4,522,187.83
                  

              	 	
                November
                  2036

              
	
                I-5-B

              	 	
                (2)

              	 	
                $

              	
                4,522,187.83
                  

              	 	
                November
                  2036

              
	
                I-6-A

              	 	
                (2)

              	 	
                $

              	
                4,330,318.79
                  

              	 	
                November
                  2036

              
	
                I-6-B

              	 	
                (2)

              	 	
                $

              	
                4,330,318.79
                  

              	 	
                November
                  2036

              
	
                I-7-A

              	 	
                (2)

              	 	
                $

              	
                4,146,653.56
                  

              	 	
                November
                  2036

              
	
                I-7-B

              	 	
                (2)

              	 	
                $

              	
                4,146,653.56
                  

              	 	
                November
                  2036

              
	
                I-8-A

              	 	
                (2)

              	 	
                $

              	
                3,986,430.23
                  

              	 	
                November
                  2036

              
	
                I-8-B

              	 	
                (2)

              	 	
                $

              	
                3,986,430.23
                  

              	 	
                November
                  2036

              
	
                I-9-A

              	 	
                (2)

              	 	
                $

              	
                19,054,858.27
                  

              	 	
                November
                  2036

              
	
                I-9-B

              	 	
                (2)

              	 	
                $

              	
                19,054,858.27
                  

              	 	
                November
                  2036

              
	
                I-10-A

              	 	
                (2)

              	 	
                $

              	
                4,294,053.80
                  

              	 	
                November
                  2036

              
	
                I-10-B

              	 	
                (2)

              	 	
                $

              	
                4,294,053.80
                  

              	 	
                November
                  2036

              
	
                I-11-A

              	 	
                (2)

              	 	
                $

              	
                2,771,450.53
                  

              	 	
                November
                  2036

              
	
                I-11-B

              	 	
                (2)

              	 	
                $

              	
                2,771,450.53
                  

              	 	
                November
                  2036

              
	
                I-12-A

              	 	
                (2)

              	 	
                $

              	
                2,655,924.48
                  

              	 	
                November
                  2036

              
	
                I-12-B

              	 	
                (2)

              	 	
                $

              	
                2,655,924.48
                  

              	 	
                November
                  2036

              
	
                I-13-A

              	 	
                (2)

              	 	
                $

              	
                2,545,260.32
                  

              	 	
                November
                  2036

              
	
                I-13-B

              	 	
                (2)

              	 	
                $

              	
                2,545,260.32
                  

              	 	
                November
                  2036

              
	
                I-14-A

              	 	
                (2)

              	 	
                $

              	
                2,455,064.89
                  

              	 	
                November
                  2036

              
	
                I-14-B

              	 	
                (2)

              	 	
                $

              	
                2,455,064.89
                  

              	 	
                November
                  2036

              
	
                I-15-A

              	 	
                (2)

              	 	
                $

              	
                17,805,984.83
                  

              	 	
                November
                  2036

              
	
                I-15-B

              	 	
                (2)

              	 	
                $

              	
                17,805,984.83
                  

              	 	
                November
                  2036

              
	
                I-16-A

              	 	
                (2)

              	 	
                $

              	
                2,909,240.29
                  

              	 	
                November
                  2036

              
	
                I-16-B

              	 	
                (2)

              	 	
                $

              	
                2,909,240.29
                  

              	 	
                November
                  2036

              
	
                I-17-A

              	 	
                (2)

              	 	
                $

              	
                1,426,451.27
                  

              	 	
                November
                  2036

              
	
                I-17-B

              	 	
                (2)

              	 	
                $

              	
                1,426,451.27
                  

              	 	
                November
                  2036

              
	
                I-18-A

              	 	
                (2)

              	 	
                $

              	
                1,369,301.64
                  

              	 	
                November
                  2036

              
	
                I-18-B

              	 	
                (2)

              	 	
                $

              	
                1,369,301.64
                  

              	 	
                November
                  2036

              
	
                I-19-A

              	 	
                (2)

              	 	
                $

              	
                1,322,715.81
                  

              	 	
                November
                  2036

              
	
                I-19-B

              	 	
                (2)

              	 	
                $

              	
                1,322,715.81
                  

              	 	
                November
                  2036

              
	
                I-20-A

              	 	
                (2)

              	 	
                $

              	
                1,556,295.96
                  

              	 	
                November
                  2036

              
	
                I-20-B

              	 	
                (2)

              	 	
                $

              	
                1,556,295.96
                  

              	 	
                November
                  2036

              
	
                I-21-A

              	 	
                (2)

              	 	
                $

              	
                11,037,242.00
                  

              	 	
                November
                  2036

              
	
                I-21-B

              	 	
                (2)

              	 	
                $

              	
                11,037,242.00
                  

              	 	
                November
                  2036

              
	
                I-22-A

              	 	
                (2)

              	 	
                $

              	
                1,609,253.25
                  

              	 	
                November
                  2036

              
	
                I-22-B

              	 	
                (2)

              	 	
                $

              	
                1,609,253.25
                  

              	 	
                November
                  2036

              
	
                I-23-A

              	 	
                (2)

              	 	
                $

              	
                644,558.62
                  

              	 	
                November
                  2036

              
	
                I-23-B

              	 	
                (2)

              	 	
                $

              	
                644,558.62
                  

              	 	
                November
                  2036

              
	
                I-24-A

              	 	
                (2)

              	 	
                $

              	
                621,002.05
                  

              	 	
                November
                  2036

              
	
                I-24-B

              	 	
                (2)

              	 	
                $

              	
                621,002.05
                  

              	 	
                November
                  2036

              
	
                I-25-A

              	 	
                (2)

              	 	
                $

              	
                606,652.51
                  

              	 	
                November
                  2036

              
	
                I-25-B

              	 	
                (2)

              	 	
                $

              	
                606,652.51
                  

              	 	
                November
                  2036

              
	
                I-26-A

              	 	
                (2)

              	 	
                $

              	
                865,764.57
                  

              	 	
                November
                  2036

              
	
                I-26-B

              	 	
                (2)

              	 	
                $

              	
                865,764.57
                  

              	 	
                November
                  2036

              
	
                I-27-A

              	 	
                (2)

              	 	
                $

              	
                1,568,957.77
                  

              	 	
                November
                  2036

              
	
                I-27-B

              	 	
                (2)

              	 	
                $

              	
                1,568,957.77
                  

              	 	
                November
                  2036

              
	
                I-28-A

              	 	
                (2)

              	 	
                $

              	
                601,028.99
                  

              	 	
                November
                  2036

              
	
                I-28-B

              	 	
                (2)

              	 	
                $

              	
                601,028.99
                  

              	 	
                November
                  2036

              
	
                I-29-A

              	 	
                (2)

              	 	
                $

              	
                454,018.97
                  

              	 	
                November
                  2036

              
	
                I-29-B

              	 	
                (2)

              	 	
                $

              	
                454,018.97
                  

              	 	
                November
                  2036

              
	
                I-30-A

              	 	
                (2)

              	 	
                $

              	
                437,946.76
                  

              	 	
                November
                  2036

              
	
                I-30-B

              	 	
                (2)

              	 	
                $

              	
                437,946.76
                  

              	 	
                November
                  2036

              
	
                I-31-A

              	 	
                (2)

              	 	
                $

              	
                427,192.20
                  

              	 	
                November
                  2036

              
	
                I-31-B

              	 	
                (2)

              	 	
                $

              	
                427,192.20
                  

              	 	
                November
                  2036

              
	
                I-32-A

              	 	
                (2)

              	 	
                $

              	
                572,499.33
                  

              	 	
                November
                  2036

              
	
                I-32-B

              	 	
                (2)

              	 	
                $

              	
                572,499.33
                  

              	 	
                November
                  2036

              
	
                I-33-A

              	 	
                (2)

              	 	
                $

              	
                971,170.61
                  

              	 	
                November
                  2036

              
	
                I-33-B

              	 	
                (2)

              	 	
                $

              	
                971,170.61
                  

              	 	
                November
                  2036

              
	
                I-34-A

              	 	
                (2)

              	 	
                $

              	
                416,124.46
                  

              	 	
                November
                  2036

              
	
                I-34-B

              	 	
                (2)

              	 	
                $

              	
                416,124.46
                  

              	 	
                November
                  2036

              
	
                I-35-A

              	 	
                (2)

              	 	
                $

              	
                330,696.25
                  

              	 	
                November
                  2036

              
	
                I-35-B

              	 	
                (2)

              	 	
                $

              	
                330,696.25
                  

              	 	
                November
                  2036

              
	
                I-36-A

              	 	
                (2)

              	 	
                $

              	
                319,304.67
                  

              	 	
                November
                  2036

              
	
                I-36-B

              	 	
                (2)

              	 	
                $

              	
                319,304.67
                  

              	 	
                November
                  2036

              
	
                I-37-A

              	 	
                (2)

              	 	
                $

              	
                308,301.32
                  

              	 	
                November
                  2036

              
	
                I-37-B

              	 	
                (2)

              	 	
                $

              	
                308,301.32
                  

              	 	
                November
                  2036

              
	
                I-38-A

              	 	
                (2)

              	 	
                $

              	
                297,673.10
                  

              	 	
                November
                  2036

              
	
                I-38-B

              	 	
                (2)

              	 	
                $

              	
                297,673.10
                  

              	 	
                November
                  2036

              
	
                I-39-A

              	 	
                (2)

              	 	
                $

              	
                287,407.38
                  

              	 	
                November
                  2036

              
	
                I-39-B

              	 	
                (2)

              	 	
                $

              	
                287,407.38
                  

              	 	
                November
                  2036

              
	
                I-40-A

              	 	
                (2)

              	 	
                $

              	
                277,491.99
                  

              	 	
                November
                  2036

              
	
                I-40-B

              	 	
                (2)

              	 	
                $

              	
                277,491.99
                  

              	 	
                November
                  2036

              
	
                I-41-A

              	 	
                (2)

              	 	
                $

              	
                267,915.05
                  

              	 	
                November
                  2036

              
	
                I-41-B

              	 	
                (2)

              	 	
                $

              	
                267,915.05
                  

              	 	
                November
                  2036

              
	
                I-42-A

              	 	
                (2)

              	 	
                $

              	
                258,665.22
                  

              	 	
                November
                  2036

              
	
                I-42-B

              	 	
                (2)

              	 	
                $

              	
                258,665.22
                  

              	 	
                November
                  2036

              
	
                I-43-A

              	 	
                (2)

              	 	
                $

              	
                251,155.05
                  

              	 	
                November
                  2036

              
	
                I-43-B

              	 	
                (2)

              	 	
                $

              	
                251,155.05
                  

              	 	
                November
                  2036

              
	
                I-44-A

              	 	
                (2)

              	 	
                $

              	
                254,661.57
                  

              	 	
                November
                  2036

              
	
                I-44-B

              	 	
                (2)

              	 	
                $

              	
                254,661.57
                  

              	 	
                November
                  2036

              
	
                I-45-A

              	 	
                (2)

              	 	
                $

              	
                250,534.88
                  

              	 	
                November
                  2036

              
	
                I-45-B

              	 	
                (2)

              	 	
                $

              	
                250,534.88
                  

              	 	
                November
                  2036

              
	
                I-46-A

              	 	
                (2)

              	 	
                $

              	
                225,187.83
                  

              	 	
                November
                  2036

              
	
                I-46-B

              	 	
                (2)

              	 	
                $

              	
                225,187.83
                  

              	 	
                November
                  2036

              
	
                I-47-A

              	 	
                (2)

              	 	
                $

              	
                215,769.27
                  

              	 	
                November
                  2036

              
	
                I-47-B

              	 	
                (2)

              	 	
                $

              	
                215,769.27
                  

              	 	
                November
                  2036

              
	
                I-48-A

              	 	
                (2)

              	 	
                $

              	
                208,310.44
                  

              	 	
                November
                  2036

              
	
                I-48-B

              	 	
                (2)

              	 	
                $

              	
                208,310.44
                  

              	 	
                November
                  2036

              
	
                I-49-A

              	 	
                (2)

              	 	
                $

              	
                202,547.05
                  

              	 	
                November
                  2036

              
	
                I-49-B

              	 	
                (2)

              	 	
                $

              	
                202,547.05
                  

              	 	
                November
                  2036

              
	
                I-50-A

              	 	
                (2)

              	 	
                $

              	
                207,912.09
                  

              	 	
                November
                  2036

              
	
                I-50-B

              	 	
                (2)

              	 	
                $

              	
                207,912.09
                  

              	 	
                November
                  2036

              
	
                I-51-A

              	 	
                (2)

              	 	
                $

              	
                205,044.70
                  

              	 	
                November
                  2036

              
	
                I-51-B

              	 	
                (2)

              	 	
                $

              	
                205,044.70
                  

              	 	
                November
                  2036

              
	
                I-52-A

              	 	
                (2)

              	 	
                $

              	
                181,105.55
                  

              	 	
                November
                  2036

              
	
                I-52-B

              	 	
                (2)

              	 	
                $

              	
                181,105.55
                  

              	 	
                November
                  2036

              
	
                I-53-A

              	 	
                (2)

              	 	
                $

              	
                173,201.03
                  

              	 	
                November
                  2036

              
	
                I-53-B

              	 	
                (2)

              	 	
                $

              	
                173,201.03
                  

              	 	
                November
                  2036

              
	
                I-54-A

              	 	
                (2)

              	 	
                $

              	
                167,214.18
                  

              	 	
                November
                  2036

              
	
                I-54-B

              	 	
                (2)

              	 	
                $

              	
                167,214.18
                  

              	 	
                November
                  2036

              
	
                I-55-A

              	 	
                (2)

              	 	
                $

              	
                162,252.22
                  

              	 	
                November
                  2036

              
	
                I-55-B

              	 	
                (2)

              	 	
                $

              	
                162,252.22
                  

              	 	
                November
                  2036

              
	
                I-56-A

              	 	
                (2)

              	 	
                $

              	
                163,708.60
                  

              	 	
                November
                  2036

              
	
                I-56-B

              	 	
                (2)

              	 	
                $

              	
                163,708.60
                  

              	 	
                November
                  2036

              
	
                I-57-A

              	 	
                (2)

              	 	
                $

              	
                160,498.10
                  

              	 	
                November
                  2036

              
	
                I-57-B

              	 	
                (2)

              	 	
                $

              	
                160,498.10
                  

              	 	
                November
                  2036

              
	
                I-58-A

              	 	
                (2)

              	 	
                $

              	
                145,336.06
                  

              	 	
                November
                  2036

              
	
                I-58-B

              	 	
                (2)

              	 	
                $

              	
                145,336.06
                  

              	 	
                November
                  2036

              
	
                I-59-A

              	 	
                (2)

              	 	
                $

              	
                139,374.38
                  

              	 	
                November
                  2036

              
	
                I-59-B

              	 	
                (2)

              	 	
                $

              	
                139,374.38
                  

              	 	
                November
                  2036

              
	
                I-60-A

              	 	
                (2)

              	 	
                $

              	
                134,553.08
                  

              	 	
                November
                  2036

              
	
                I-60-B

              	 	
                (2)

              	 	
                $

              	
                134,553.08
                  

              	 	
                November
                  2036

              
	
                I-61-A

              	 	
                (2)

              	 	
                $

              	
                3,708,492.69
                  

              	 	
                November
                  2036

              
	
                I-61-B

              	 	
                (2)

              	 	
                $

              	
                3,708,492.69
                  

              	 	
                November
                  2036

              
	
                II

              	 	
                (2)

              	 	
                $

              	
                320,055,893.20
                  

              	 	
                November
                  2036

              
	
                II-1-A

              	 	
                (2)

              	 	
                $

              	
                10,872,337.28
                  

              	 	
                November
                  2036

              
	
                II-1-B

              	 	
                (2)

              	 	
                $

              	
                10,872,337.28
                  

              	 	
                November
                  2036

              
	
                II-2-A

              	 	
                (2)

              	 	
                $

              	
                10,415,331.66
                  

              	 	
                November
                  2036

              
	
                II-2-B

              	 	
                (2)

              	 	
                $

              	
                10,415,331.66
                  

              	 	
                November
                  2036

              
	
                II-3-A

              	 	
                (2)

              	 	
                $

              	
                9,972,974.50
                  

              	 	
                November
                  2036

              
	
                II-3-B

              	 	
                (2)

              	 	
                $

              	
                9,972,974.50
                  

              	 	
                November
                  2036

              
	
                II-4-A

              	 	
                (2)

              	 	
                $

              	
                9,549,548.48
                  

              	 	
                November
                  2036

              
	
                II-4-B

              	 	
                (2)

              	 	
                $

              	
                9,549,548.48
                  

              	 	
                November
                  2036

              
	
                II-5-A

              	 	
                (2)

              	 	
                $

              	
                9,144,238.07
                  

              	 	
                November
                  2036

              
	
                II-5-B

              	 	
                (2)

              	 	
                $

              	
                9,144,238.07
                  

              	 	
                November
                  2036

              
	
                II-6-A

              	 	
                (2)

              	 	
                $

              	
                8,756,263.01
                  

              	 	
                November
                  2036

              
	
                II-6-B

              	 	
                (2)

              	 	
                $

              	
                8,756,263.01
                  

              	 	
                November
                  2036

              
	
                II-7-A

              	 	
                (2)

              	 	
                $

              	
                8,384,876.69
                  

              	 	
                November
                  2036

              
	
                II-7-B

              	 	
                (2)

              	 	
                $

              	
                8,384,876.69
                  

              	 	
                November
                  2036

              
	
                II-8-A

              	 	
                (2)

              	 	
                $

              	
                8,060,891.87
                  

              	 	
                November
                  2036

              
	
                II-8-B

              	 	
                (2)

              	 	
                $

              	
                8,060,891.87
                  

              	 	
                November
                  2036

              
	
                II-9-A

              	 	
                (2)

              	 	
                $

              	
                38,530,500.53
                  

              	 	
                November
                  2036

              
	
                II-9-B

              	 	
                (2)

              	 	
                $

              	
                38,530,500.53
                  

              	 	
                November
                  2036

              
	
                II-10-A

              	 	
                (2)

              	 	
                $

              	
                8,682,932.20
                  

              	 	
                November
                  2036

              
	
                II-10-B

              	 	
                (2)

              	 	
                $

              	
                8,682,932.20
                  

              	 	
                November
                  2036

              
	
                II-11-A

              	 	
                (2)

              	 	
                $

              	
                5,604,102.37
                  

              	 	
                November
                  2036

              
	
                II-11-B

              	 	
                (2)

              	 	
                $

              	
                5,604,102.37
                  

              	 	
                November
                  2036

              
	
                II-12-A

              	 	
                (2)

              	 	
                $

              	
                5,370,499.12
                  

              	 	
                November
                  2036

              
	
                II-12-B

              	 	
                (2)

              	 	
                $

              	
                5,370,499.12
                  

              	 	
                November
                  2036

              
	
                II-13-A

              	 	
                (2)

              	 	
                $

              	
                5,146,727.03
                  

              	 	
                November
                  2036

              
	
                II-13-B

              	 	
                (2)

              	 	
                $

              	
                5,146,727.03
                  

              	 	
                November
                  2036

              
	
                II-14-A

              	 	
                (2)

              	 	
                $

              	
                4,964,344.41
                  

              	 	
                November
                  2036

              
	
                II-14-B

              	 	
                (2)

              	 	
                $

              	
                4,964,344.41
                  

              	 	
                November
                  2036

              
	
                II-15-A

              	 	
                (2)

              	 	
                $

              	
                36,005,175.07
                  

              	 	
                November
                  2036

              
	
                II-15-B

              	 	
                (2)

              	 	
                $

              	
                36,005,175.07
                  

              	 	
                November
                  2036

              
	
                II-16-A

              	 	
                (2)

              	 	
                $

              	
                5,882,724.66
                  

              	 	
                November
                  2036

              
	
                II-16-B

              	 	
                (2)

              	 	
                $

              	
                5,882,724.66
                  

              	 	
                November
                  2036

              
	
                II-17-A

              	 	
                (2)

              	 	
                $

              	
                2,884,402.53
                  

              	 	
                November
                  2036

              
	
                II-17-B

              	 	
                (2)

              	 	
                $

              	
                2,884,402.53
                  

              	 	
                November
                  2036

              
	
                II-18-A

              	 	
                (2)

              	 	
                $

              	
                2,768,841.26
                  

              	 	
                November
                  2036

              
	
                II-18-B

              	 	
                (2)

              	 	
                $

              	
                2,768,841.26
                  

              	 	
                November
                  2036

              
	
                II-19-A

              	 	
                (2)

              	 	
                $

              	
                2,674,640.84
                  

              	 	
                November
                  2036

              
	
                II-19-B

              	 	
                (2)

              	 	
                $

              	
                2,674,640.84
                  

              	 	
                November
                  2036

              
	
                II-20-A

              	 	
                (2)

              	 	
                $

              	
                3,146,959.24
                  

              	 	
                November
                  2036

              
	
                II-20-B

              	 	
                (2)

              	 	
                $

              	
                3,146,959.24
                  

              	 	
                November
                  2036

              
	
                II-21-A

              	 	
                (2)

              	 	
                $

              	
                22,318,216.85
                  

              	 	
                November
                  2036

              
	
                II-21-B

              	 	
                (2)

              	 	
                $

              	
                22,318,216.85
                  

              	 	
                November
                  2036

              
	
                II-22-A

              	 	
                (2)

              	 	
                $

              	
                3,254,043.25
                  

              	 	
                November
                  2036

              
	
                II-22-B

              	 	
                (2)

              	 	
                $

              	
                3,254,043.25
                  

              	 	
                November
                  2036

              
	
                II-23-A

              	 	
                (2)

              	 	
                $

              	
                1,303,350.88
                  

              	 	
                November
                  2036

              
	
                II-23-B

              	 	
                (2)

              	 	
                $

              	
                1,303,350.88
                  

              	 	
                November
                  2036

              
	
                II-24-A

              	 	
                (2)

              	 	
                $

              	
                1,255,717.55
                  

              	 	
                November
                  2036

              
	
                II-24-B

              	 	
                (2)

              	 	
                $

              	
                1,255,717.55
                  

              	 	
                November
                  2036

              
	
                II-25-A

              	 	
                (2)

              	 	
                $

              	
                1,226,701.59
                  

              	 	
                November
                  2036

              
	
                II-25-B

              	 	
                (2)

              	 	
                $

              	
                1,226,701.59
                  

              	 	
                November
                  2036

              
	
                II-26-A

              	 	
                (2)

              	 	
                $

              	
                1,750,647.63
                  

              	 	
                November
                  2036

              
	
                II-26-B

              	 	
                (2)

              	 	
                $

              	
                1,750,647.63
                  

              	 	
                November
                  2036

              
	
                II-27-A

              	 	
                (2)

              	 	
                $

              	
                3,172,562.48
                  

              	 	
                November
                  2036

              
	
                II-27-B

              	 	
                (2)

              	 	
                $

              	
                3,172,562.48
                  

              	 	
                November
                  2036

              
	
                II-28-A

              	 	
                (2)

              	 	
                $

              	
                1,215,330.36
                  

              	 	
                November
                  2036

              
	
                II-28-B

              	 	
                (2)

              	 	
                $

              	
                1,215,330.36
                  

              	 	
                November
                  2036

              
	
                II-29-A

              	 	
                (2)

              	 	
                $

              	
                918,063.93
                  

              	 	
                November
                  2036

              
	
                II-29-B

              	 	
                (2)

              	 	
                $

              	
                918,063.93
                  

              	 	
                November
                  2036

              
	
                II-30-A

              	 	
                (2)

              	 	
                $

              	
                885,564.59
                  

              	 	
                November
                  2036

              
	
                II-30-B

              	 	
                (2)

              	 	
                $

              	
                885,564.59
                  

              	 	
                November
                  2036

              
	
                II-31-A

              	 	
                (2)

              	 	
                $

              	
                863,818.00
                  

              	 	
                November
                  2036

              
	
                II-31-B

              	 	
                (2)

              	 	
                $

              	
                863,818.00
                  

              	 	
                November
                  2036

              
	
                II-32-A

              	 	
                (2)

              	 	
                $

              	
                1,157,641.02
                  

              	 	
                November
                  2036

              
	
                II-32-B

              	 	
                (2)

              	 	
                $

              	
                1,157,641.02
                  

              	 	
                November
                  2036

              
	
                II-33-A

              	 	
                (2)

              	 	
                $

              	
                1,963,787.34
                  

              	 	
                November
                  2036

              
	
                II-33-B

              	 	
                (2)

              	 	
                $

              	
                1,963,787.34
                  

              	 	
                November
                  2036

              
	
                II-34-A

              	 	
                (2)

              	 	
                $

              	
                841,438.09
                  

              	 	
                November
                  2036

              
	
                II-34-B

              	 	
                (2)

              	 	
                $

              	
                841,438.09
                  

              	 	
                November
                  2036

              
	
                II-35-A

              	 	
                (2)

              	 	
                $

              	
                668,695.20
                  

              	 	
                November
                  2036

              
	
                II-35-B

              	 	
                (2)

              	 	
                $

              	
                668,695.20
                  

              	 	
                November
                  2036

              
	
                II-36-A

              	 	
                (2)

              	 	
                $

              	
                645,660.48
                  

              	 	
                November
                  2036

              
	
                II-36-B

              	 	
                (2)

              	 	
                $

              	
                645,660.48
                  

              	 	
                November
                  2036

              
	
                II-37-A

              	 	
                (2)

              	 	
                $

              	
                623,410.78
                  

              	 	
                November
                  2036

              
	
                II-37-B

              	 	
                (2)

              	 	
                $

              	
                623,410.78
                  

              	 	
                November
                  2036

              
	
                II-38-A

              	 	
                (2)

              	 	
                $

              	
                601,919.65
                  

              	 	
                November
                  2036

              
	
                II-38-B

              	 	
                (2)

              	 	
                $

              	
                601,919.65
                  

              	 	
                November
                  2036

              
	
                II-39-A

              	 	
                (2)

              	 	
                $

              	
                581,161.52
                  

              	 	
                November
                  2036

              
	
                II-39-B

              	 	
                (2)

              	 	
                $

              	
                581,161.52
                  

              	 	
                November
                  2036

              
	
                II-40-A

              	 	
                (2)

              	 	
                $

              	
                561,111.76
                  

              	 	
                November
                  2036

              
	
                II-40-B

              	 	
                (2)

              	 	
                $

              	
                561,111.76
                  

              	 	
                November
                  2036

              
	
                II-41-A

              	 	
                (2)

              	 	
                $

              	
                541,746.40
                  

              	 	
                November
                  2036

              
	
                II-41-B

              	 	
                (2)

              	 	
                $

              	
                541,746.40
                  

              	 	
                November
                  2036

              
	
                II-42-A

              	 	
                (2)

              	 	
                $

              	
                523,042.48
                  

              	 	
                November
                  2036

              
	
                II-42-B

              	 	
                (2)

              	 	
                $

              	
                523,042.48
                  

              	 	
                November
                  2036

              
	
                II-43-A

              	 	
                (2)

              	 	
                $

              	
                507,856.30
                  

              	 	
                November
                  2036

              
	
                II-43-B

              	 	
                (2)

              	 	
                $

              	
                507,856.30
                  

              	 	
                November
                  2036

              
	
                II-44-A

              	 	
                (2)

              	 	
                $

              	
                514,946.78
                  

              	 	
                November
                  2036

              
	
                II-44-B

              	 	
                (2)

              	 	
                $

              	
                514,946.78
                  

              	 	
                November
                  2036

              
	
                II-45-A

              	 	
                (2)

              	 	
                $

              	
                506,602.27
                  

              	 	
                November
                  2036

              
	
                II-45-B

              	 	
                (2)

              	 	
                $

              	
                506,602.27
                  

              	 	
                November
                  2036

              
	
                II-46-A

              	 	
                (2)

              	 	
                $

              	
                455,348.42
                  

              	 	
                November
                  2036

              
	
                II-46-B

              	 	
                (2)

              	 	
                $

              	
                455,348.42
                  

              	 	
                November
                  2036

              
	
                II-47-A

              	 	
                (2)

              	 	
                $

              	
                436,303.33
                  

              	 	
                November
                  2036

              
	
                II-47-B

              	 	
                (2)

              	 	
                $

              	
                436,303.33
                  

              	 	
                November
                  2036

              
	
                II-48-A

              	 	
                (2)

              	 	
                $

              	
                421,220.96
                  

              	 	
                November
                  2036

              
	
                II-48-B

              	 	
                (2)

              	 	
                $

              	
                421,220.96
                  

              	 	
                November
                  2036

              
	
                II-49-A

              	 	
                (2)

              	 	
                $

              	
                409,566.90
                  

              	 	
                November
                  2036

              
	
                II-49-B

              	 	
                (2)

              	 	
                $

              	
                409,566.90
                  

              	 	
                November
                  2036

              
	
                II-50-A

              	 	
                (2)

              	 	
                $

              	
                420,415.46
                  

              	 	
                November
                  2036

              
	
                II-50-B

              	 	
                (2)

              	 	
                $

              	
                420,415.46
                  

              	 	
                November
                  2036

              
	
                II-51-A

              	 	
                (2)

              	 	
                $

              	
                414,617.35
                  

              	 	
                November
                  2036

              
	
                II-51-B

              	 	
                (2)

              	 	
                $

              	
                414,617.35
                  

              	 	
                November
                  2036

              
	
                II-52-A

              	 	
                (2)

              	 	
                $

              	
                366,210.40
                  

              	 	
                November
                  2036

              
	
                II-52-B

              	 	
                (2)

              	 	
                $

              	
                366,210.40
                  

              	 	
                November
                  2036

              
	
                II-53-A

              	 	
                (2)

              	 	
                $

              	
                350,226.82
                  

              	 	
                November
                  2036

              
	
                II-53-B

              	 	
                (2)

              	 	
                $

              	
                350,226.82
                  

              	 	
                November
                  2036

              
	
                II-54-A

              	 	
                (2)

              	 	
                $

              	
                338,120.92
                  

              	 	
                November
                  2036

              
	
                II-54-B

              	 	
                (2)

              	 	
                $

              	
                338,120.92
                  

              	 	
                November
                  2036

              
	
                II-55-A

              	 	
                (2)

              	 	
                $

              	
                328,087.43
                  

              	 	
                November
                  2036

              
	
                II-55-B

              	 	
                (2)

              	 	
                $

              	
                328,087.43
                  

              	 	
                November
                  2036

              
	
                II-56-A

              	 	
                (2)

              	 	
                $

              	
                331,032.35
                  

              	 	
                November
                  2036

              
	
                II-56-B

              	 	
                (2)

              	 	
                $

              	
                331,032.35
                  

              	 	
                November
                  2036

              
	
                II-57-A

              	 	
                (2)

              	 	
                $

              	
                324,540.45
                  

              	 	
                November
                  2036

              
	
                II-57-B

              	 	
                (2)

              	 	
                $

              	
                324,540.45
                  

              	 	
                November
                  2036

              
	
                II-58-A

              	 	
                (2)

              	 	
                $

              	
                293,881.54
                  

              	 	
                November
                  2036

              
	
                II-58-B

              	 	
                (2)

              	 	
                $

              	
                293,881.54
                  

              	 	
                November
                  2036

              
	
                II-59-A

              	 	
                (2)

              	 	
                $

              	
                281,826.52
                  

              	 	
                November
                  2036

              
	
                II-59-B

              	 	
                (2)

              	 	
                $

              	
                281,826.52
                  

              	 	
                November
                  2036

              
	
                II-60-A

              	 	
                (2)

              	 	
                $

              	
                272,077.47
                  

              	 	
                November
                  2036

              
	
                II-60-B

              	 	
                (2)

              	 	
                $

              	
                272,077.47
                  

              	 	
                November
                  2036

              
	
                II-61-A

              	 	
                (2)

              	 	
                $

              	
                7,498,879.16
                  

              	 	
                November
                  2036

              
	
                II-61-B

              	 	
                (2)

              	 	
                $

              	
                7,498,879.16
                  

              	 	
                November
                  2036

              
	
                P

              	 	
                (3)

              	 	
                $

              	
                100.00
                  

              	 	
                November
                  2036

              

      

    

    ___________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
                regulations.

            
	
              (2)

            	
              Calculated
                in accordance with the definition of “Uncertificated REMIC I Pass-Through
                Rate” herein.

            
	
              (3)

            	
              The
                REMIC I Regular Interest LT-P will not be entitled to distributions
                of
                interest.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REMIC
      II

     

    As
      provided herein, the Trustee will make an election to treat the segregated
      pool
      of assets consisting of the REMIC I Regular Interests) for federal income tax
      purposes, and such segregated pool of assets will be designated as “REMIC II.”
The R-II Interest will represent the sole class of “residual interests” in REMIC
      II for purposes of the REMIC Provisions. The following table irrevocably sets
      forth the designation, the Uncertificated REMIC II Pass-Through Rate, the
      Initial Uncertificated Principal Balance, and for purposes of satisfying
      Treasury regulation Section 1.860G-1(a)(4)(iii), the “latest possible
      maturity date” for each of the REMIC II Regular Interests. None of the REMIC II
      Regular Interests will be certificated.

    

      

        
          	
                  Designation

                	
                  Uncertificated

                  REMIC
                    II

                  Pass-Through
                    Rate

                	 	
                  Initial
                    Uncertificated

                  Principal
                    Balance

                	
                  Latest
                    Possible

                  Maturity
                    Date(1)

                
	
                  LT-AA

                	
                  (2)

                	 	
                  $

                	
                  612,503,852.22
                    

                	
                  November
                    2036

                
	
                  LT-A1

                	
                  (2)

                	 	
                  $

                	
                  1,602,795.00
                    

                	
                  November
                    2036

                
	
                  LT-A2a

                	
                  (2)

                	 	
                  $

                	
                  1,634,700.00
                    

                	
                  November
                    2036

                
	
                  LT-A2b

                	
                  (2)

                	 	
                  $

                	
                  508,450.00
                    

                	
                  November
                    2036

                
	
                  LT-A2c

                	
                  (2)

                	 	
                  $

                	
                  675,900.00
                    

                	
                  November
                    2036

                
	
                  LT-A2d

                	
                  (2)

                	 	
                  $

                	
                  421,925.00
                    

                	
                  November
                    2036

                
	
                  LT-M1

                	
                  (2)

                	 	
                  $

                	
                  250,000.00
                    

                	
                  November
                    2036

                
	
                  LT-M2

                	
                  (2)

                	 	
                  $

                	
                  290,625.00
                    

                	
                  November
                    2036

                
	
                  LT-M3

                	
                  (2)

                	 	
                  $

                	
                  96,875.00
                    

                	
                  November
                    2036

                
	
                  LT-M4

                	
                  (2)

                	 	
                  $

                	
                  125,000.00
                    

                	
                  November
                    2036

                
	
                  LT-M5

                	
                  (2)

                	 	
                  $

                	
                  118,750.00
                    

                	
                  November
                    2036

                
	
                  LT-M6

                	
                  (2)

                	 	
                  $

                	
                  68,750.00
                    

                	
                  November
                    2036

                
	
                  LT-B1

                	
                  (2)

                	 	
                  $

                	
                  100,000.00
                    

                	
                  November
                    2036

                
	
                  LT-B2

                	
                  (2)

                	 	
                  $

                	
                  46,875.00
                    

                	
                  November
                    2036

                
	
                  LT-B3

                	
                  (2)

                	 	
                  $

                	
                  78,125.00
                    

                	
                  November
                    2036

                
	
                  LT-B4

                	
                  (2)

                	 	
                  $

                	
                  53,125.00
                    

                	
                  November
                    2036

                
	
                  LT-ZZ

                	
                  (2)

                	 	
                  $

                	
                  6,428,183.62
                    

                	
                  November
                    2036

                
	
                  LT-IO

                	
                  (2)

                	 	 	
                  (3)

                	
                  November
                    2036

                
	
                  LT-P

                	
                  (4)

                	 	
                  $

                	
                  100.00
                    

                	
                  November
                    2036

                
	
                  LT-1SUB

                	
                  (2)

                	 	
                  $

                	
                  9,306.56
                    

                	
                  November
                    2036

                
	
                  LT-1GRP

                	
                  (2)

                	 	
                  $

                	
                  41,362.21
                    

                	
                  November
                    2036

                
	
                  LT-2SUB

                	
                  (2)

                	 	
                  $

                	
                  18,818.83
                    

                	
                  November
                    2036

                
	
                  LT-2GRP

                	
                  (2)

                	 	
                  $

                	
                  83,638.22
                    

                	
                  November
                    2036

                
	
                  LT-XX

                	
                  (2)

                	 	
                  $

                	
                  624,850,805.02
                    

                	
                  November
                    2036

                

        

      

    

    ___________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
                regulations.

            
	
              (2)

            	
              Calculated
                in accordance with the definition of “Uncertificated REMIC II Pass-Through
                Rate” herein.

            
	
              (3)

            	
              REMIC
                II Regular Interest LT-IO will not have an Uncertificated Principal
                Balance, but will accrue interest on its Uncertificated Notional
                Amount,
                as defined herein.

            
	
              (4)

            	
              The
                REMIC II Regular Interest LT-P will not be entitled to distributions
                of
                interest.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REMIC
      III

     

    As
      provided herein, the Trustee will make an election to treat the segregated
      pool
      of assets consisting of the REMIC II Regular Interests as a REMIC for federal
      income tax purposes, and such segregated pool of assets will be designated
      as
“REMIC III”. The R-III Interest will represent the sole class of “residual
      interests” in REMIC III for purposes of the REMIC Provisions. The following
      table irrevocably sets forth the Class designation, Pass-Through Rate and
      Initial Certificate Principal Balance for each Class of Certificates or REMIC
      III Regular Interests that represents one or more of the “regular interests” in
      REMIC III created hereunder:

     

    

      
        	
                Class
                  Designation

              	
                Initial
                  Certificate

                Principal
                  Balance

              	
                Pass-Through
                  Rate

              	
                Latest
                  Possible

                Maturity
                  Date(1)

              
	
                Class
                  A-1

              	
                $

              	
                320,559,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  A-2a

              	
                $

              	
                326,940,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  A-2b

              	
                $

              	
                101,690,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  A-2c

              	
                $

              	
                135,180,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  A-2d

              	
                $

              	
                84,385,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  M-1

              	
                $

              	
                50,000,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  M-2

              	
                $

              	
                58,125,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  M-3

              	
                $

              	
                19,375,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  M-4

              	
                $

              	
                25,000,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  M-5

              	
                $

              	
                23,750,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  M-6

              	
                $

              	
                13,750,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  B-1

              	
                $

              	
                20,000,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  B-2

              	
                $

              	
                9,375,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  B-3

              	
                $

              	
                15,625,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  B-4

              	
                $

              	
                10,625,000.00

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  X Interest(3)

              	
                $

              	
                35,628,861.67

              	
                (2)

              	
                November
                  2036

              
	
                Class
                  P Interest

              	
                $

              	
                100.00

              	
                N/A(4)

              	
                November
                  2036

              
	
                Class
                  IO Interest

              	 	
                (5)

              	
                (6)

              	
                November
                  2036

              

      

    

     

    ___________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
                regulations.

            
	
              (2)

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

            
	
              (3)

            	
              The
                Class X Interest will not accrue interest on its Certificate Principal
                Balance, but will accrue interest at the Class X Pass-Through Rate
                on the
                Notional Amount of the Class X Interest outstanding from time to
                time
                which shall equal the aggregate Uncertificated Principal Balance
                of the
                REMIC II Regular Interests (other than REMIC II Regular Interest
                LT-P and
                REMIC II Regular Interest LT-IO). 

            
	
              (4)

            	
              The
                Class P Interest will not be entitled to distributions of
                interest.

            
	
              (5)

            	
              For
                federal income tax purposes, the Class IO Interest will not have
                an
                Uncertificated Principal Balance, but will have a notional amount
                equal to
                the Uncertificated Notional Amount of REMIC II Regular Interest
                LT-IO.

            
	
              (6)

            	
              For
                federal income tax purposes, the Class IO Interest will not have
                a
                Pass-Through Rate, but will be entitled to 100% of the amounts distributed
                on REMIC II Regular Interest LT-IO.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REMIC
      IV

     

    As
      provided herein, the Trustee will make an election to treat the segregated
      pool
      of assets consisting of the Class X Interest as a REMIC for federal income
      tax
      purposes, and such segregated pool of assets will be designated as “REMIC IV”.
      The R-IV Interest will represent the sole class of “residual interests” in REMIC
      IV for purposes of the REMIC Provisions. The following table irrevocably sets
      forth the Class designation, Pass-Through Rate and Initial Certificate Principal
      Balance for the Class X Certificates:

     

    
      	
              Class
                Designation

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Pass-Through
                Rate

            	
              Latest
                Possible

              Maturity
                Date(1)

            
	
              Class
                X

            	
              $   35,628,861.67

            	
              (2)

            	
              November
                2036

            

    

    

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
                regulations.

            
	
              (2)

            	
              The
                Class X Certificates will not have a Pass-Through Rate, but will
                be
                entitled to 100% of amounts distributed on the Class X
                Interest.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REMIC
      V

     

    As
      provided herein, the Trustee will make an election to treat the segregated
      pool
      of assets consisting of the Class P Interest as a REMIC for federal income
      tax
      purposes, and such segregated pool of assets will be designated as “REMIC V”.
      The R-V Interest will represent the sole class of “residual interests” in REMIC
      V for purposes of the REMIC Provisions. The following table irrevocably sets
      forth the Class designation, Pass-Through Rate and Initial Certificate Principal
      Balance for the Class P Certificates:

     

    
      	
              Class
                Designation

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Pass-Through
                Rate

            	
              Latest
                Possible

              Maturity
                Date(1)

            
	
              Class
                P

            	
              $100.00

            	
              (2)

            	
              November
                2036

            

    

    ___________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
                regulations.

            
	
              (2)

            	
              The
                Class P Certificates will not have a Pass-Through Rate, but will
                be
                entitled to 100% of amounts distributed on the Class P
                Interest.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REMIC
      VI

     

    As
      provided herein, the Trustee will make an election to treat the segregated
      pool
      of assets consisting of the Class IO Interest as a REMIC for federal income
      tax
      purposes, and such segregated pool of assets will be designated as “REMIC VI”.
      The R-VI Interest will represent the sole class of “residual interests” in REMIC
      VI for purposes of the REMIC Provisions. The following table irrevocably sets
      forth the Class designation, Pass-Through Rate and Initial Certificate Principal
      Balance for REMIC VI Regular Interest Swap-IO:

     

    
      	
              Class
                Designation

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Pass-Through
                Rate

            	
              Latest
                Possible

              Maturity
                Date(1)

            
	
              Swap-IO

            	
              N/A

            	
              (2)

            	
              November
                2036

            

    

    ___________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
                regulations.

            
	
              (2)

            	
              REMIC
                VI Regular Interest Swap-IO will not have a Pass-Through Rate, but
                will be
                entitled to 100% of amounts distributed on the Class IO
                Interest.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      minimum denomination for each Class of Certificates, other than the
      Class P, Class R, Class R-X and Class X Certificates, will be
      $25,000 with integral multiples of $1 in excess thereof. The minimum
      denomination for the Class P and the Class X Certificates will each be
      a 1% Percentage Interest in such Class. The Class R and Class R-X
      Certificates will represent a 100% Percentage Interest in such
      Class.

     

    It
      is
      expected that each Class of Certificates will receive its final distribution
      of
      principal and interest on or prior to the Final Scheduled Distribution
      Date.

     

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

     

     

    
      	
              Book-Entry
                Certificates

            	 	
              All
                Classes of Certificates other than the Physical
                Certificates.

            

    

     

    
      	
              Class A
                Certificates

            	 	
              Class
                A-1, Class A-2a, Class A-2b, Class A-2c and Class
                A-2d.

            

    

     

    
      	
              Delay
                Certificates

            	 	
              None.

            

    

     

    ERISA-Restricted

    
      	
              Certificates

            	 	
              Residual
                Certificates, Class P Certificates and Class X Certificates; any
                certificate with a rating below the lowest applicable permitted rating
                under the Underwriters’ Exemption.

            

    

     

    
      	
              Non-Delay
                Certificates

            	 	
              Class A,
                Class X and Subordinated
                Certificates.

            

    

     

    
      	
              Offered
                Certificates

            	 	
              All
                Classes of Certificates other than the Private
                Certificates.

            

    

     

    
      	
              Physical
                Certificates

            	 	
              Class P,
                Class X and Residual
                Certificates.

            

    

     

    
      	
              Private
                Certificates

            	 	
              Class P,
                Class X and Residual
                Certificates.

            

    

     

    
      	
              Rating
                Agencies

            	 	
              Moody’s
                and Standard & Poor’s.

            

    

     

    
      	
              Regular
                Certificates

            	 	
              All
                Classes of Certificates other than the Residual
                Certificates.

            

    

     

    
      	
              Residual
                Certificates

            	 	
              Class R
                and Class R-X Certificates.

            

    

     

    
      	
              Subordinated
                Certificates

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

            

    

     

    
 

    ARTICLE
      I

     

    DEFINITIONS

     

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

     

    “Accepted
      Servicing Practices”:
      With
      respect to any Mortgage Loan, those mortgage servicing practices set forth
      in
      Section 3.01(a) of this Agreement.

     

    “Account”:
      Any of the related Collection Accounts, the Distribution Account, any Escrow
      Account, the Excess Reserve Fund Account or the Swap Account. Each Account
      shall
      be an Eligible Account.

     

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

     

    “Adjustable
      Rate Mortgage Loan”: An adjustable rate Mortgage Loan.

     

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

     

    “Adjustment
      Date”: As to any Adjustable Rate Mortgage Loan, the first Due Date on which the
      related Mortgage Rate adjusts as set forth in the related Mortgage Note and
      each
      Due Date thereafter on which the Mortgage Rate adjusts as set forth in the
      related Mortgage Note.

     

    “Advance”:
      Any P&I Advance or Servicing Advance.

     

    “Advance
      Facility”: A financing or other facility as described in
      Section 10.07.

     

    “Advancing
      Person”: The Person to whom any Servicer’s rights under this Agreement to be
      reimbursed for any P&I Advances or Servicing Advances have been assigned
      pursuant to Section 10.07.

     

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

     

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

     

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

     

    “Analytics
      Company”:
      Intex
      Solutions, Inc., or any other bond analytics service provider identified to
      the
      Trustee by the Depositor.

     

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

     

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

     

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

     

    “Available
      Funds”: With respect to any Distribution Date and the Mortgage Loans to the
      extent received by the Trustee (x) the sum of (i) all scheduled installments
      of
      interest (net of the related Expense Fees) and principal due on the Due Date
      on
      such Mortgage Loans in the related Due Period and received by the related
      Servicer on or prior to the related Determination Date, together with any
      P&I Advances in respect thereof; (ii) all Condemnation Proceeds, Insurance
      Proceeds and Liquidation Proceeds received by the related Servicer during the
      related Prepayment Period (in each case, net of unreimbursed expenses incurred
      in connection with a liquidation or foreclosure and unreimbursed Advances,
      if
      any); (iii) all partial or full prepayments on the Mortgage Loans received
      by
      the related Servicer during the related Prepayment Period together with all
      Compensating Interest, if applicable, thereon (excluding any Prepayment
      Charges); (iv) all Substitution Adjustment Amounts with respect to the
      substitutions of Mortgage Loans that occur with respect to such Distribution
      Date; (v) amounts received with respect to such Distribution Date as the
      Repurchase Price in respect of a Mortgage Loan repurchased with respect to
      such
      Distribution Date; (vi) the proceeds received with respect to the termination
      of
      the Trust Fund pursuant to clause (a) of Section 9.01; and (vii) the Closing
      Date Deposit Amount; reduced by (y) amounts in reimbursement for Advances
      previously made with respect to the Mortgage Loans and other amounts as to
      which
      the Servicers, the Depositor or the Trustee are entitled to be paid or
      reimbursed pursuant to this Agreement.

     

    “Balloon
      Loan”: Any Mortgage Loan that requires only payments of interest until the
      stated maturity date of the Mortgage Loan or Scheduled Payments of principal
      which (not including the payment due on its stated maturity date) are based
      on
      an amortization schedule that would be insufficient to fully amortize the
      principal thereof by the stated maturity date of the Mortgage Loan.

     

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

     

    “Basis
      Risk CarryForward Amount”: With respect to each Class of Offered Certificates,
      as of any Distribution Date, the sum of (A) if on such Distribution Date the
      Pass-Through Rate for any Class of Offered Certificates is based upon a Loan
      Group Cap or the WAC Cap, the excess of (i) the Accrued Certificate Interest
      Distribution Amount such Class of Certificates would otherwise be entitled
      to
      receive on such Distribution Date had such Pass-Through Rate not been subject
      to
      any Loan Group Cap or WAC Cap (that is, had such rate been calculated as the
      sum
      of LIBOR and the applicable Pass-Through Margin on such Class of Certificates
      for such Distribution Date and the resulting amount being reduced by allocated
      Net Prepayment Interest Shortfalls and Relief Act Interest Shortfalls) over
      (ii)
      the Accrued Certificate Interest Distribution Amount received on such
      Distribution Date on such Class of Certificates at, with respect to each Class
      of Group I Class A Certificates, the lesser of the Group I Loan Cap or the
      WAC
      Cap, with respect to each Class of Group II Class A Certificates, the lesser
      of
      the Group II Loan Cap or the WAC Cap, and with respect to each other Class
      of
      Offered Certificates, the WAC Cap, as applicable, for such Distribution Date
      and
      (B) the Basis Risk CarryForward Amount for such Class of Certificates for all
      previous Distribution Dates not previously paid, together with interest thereon
      at a rate equal to the sum of LIBOR and the applicable Pass-Through Margin
      for
      such Class of Certificates for such Distribution Date.

     

    “Basis
      Risk Payment”: For any Distribution Date, an amount equal to the lesser of
      (i) the aggregate of the Basis Risk CarryForward Amounts for such
      Distribution Date and (ii) the Class X Distributable Amount (prior to
      any reduction for amounts paid from the Excess Reserve Fund Account to pay
      any
      Basis Risk CarryForward Amount or any Swap Termination Payment) plus any Net
      Swap Payments and Interest Rate Cap Payments used to pay Basis Risk CarryForward
      Amounts.

     

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

     

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

     

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

     

    “Cap
      Provider”: Morgan Stanley Capital Services Inc., a Delaware corporation, and its
      successors in interest.

     

    “Certificate”:
      Any one of the Certificates executed by the Trustee in substantially the forms
      attached hereto as exhibits.

     

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

     

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

     

    “Certificate
      Register”: The register maintained pursuant to Section 5.02.

     

    “Certificateholder”
      or “Holder”: The person in whose name a Certificate is registered in the
      Certificate Register, except that, solely for the purpose of giving any consent
      pursuant to this Agreement, any Certificate registered in the name of the
      Depositor or any Affiliate of the Depositor shall be deemed not to be
      Outstanding and the Percentage Interest evidenced thereby shall not be taken
      into account in determining whether the requisite amount of Percentage Interests
      necessary to effect such consent has been obtained; provided, however, that
      if
      any such Person (including the Depositor) owns 100% of the Percentage Interests
      evidenced by a Class of Certificates, such Certificates shall be deemed to
      be
      Outstanding for purposes of any provision hereof that requires the consent
      of
      the Holders of Certificates of a particular Class as a condition to the taking
      of any action hereunder. The Trustee is entitled to rely conclusively on a
      certification of the Depositor or any Affiliate of the Depositor in determining
      which Certificates are registered in the name of an Affiliate of the
      Depositor.

     

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

     

    “Class
      A
      Certificate Group”: The Group I Class A Certificates or the Group II Class A
      Certificates, as applicable.

     

    “Class A
      Certificates”:
      As
      specified in the Preliminary Statement.

     

    “Class
      A
      Principal Allocation Percentage”: With respect to any Distribution Date, the
      percentage equivalent of a fraction, determined as follows: (A) with respect
      to
      the Group I Class A Certificates, a fraction, the numerator of which is (x)
      the
      portion of the Principal Remittance Amount for such Distribution Date that
      is
      attributable to the principal received or advanced on the Group I Mortgage
      Loans
      and the denominator of which is (y) the Principal Remittance Amount for such
      Distribution Date and (B) with respect to the Group II Class A Certificates,
      a
      fraction, the numerator of which is (x) the portion of the Principal Remittance
      Amount for such Distribution Date that is attributable to the principal received
      or advanced on the Group II Mortgage Loans and the denominator of which is
      (y)
      the Principal Remittance Amount for such Distribution Date.

     

    “Class A
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess of (i) the aggregate Class Certificate Balances of the Class A
      Certificates immediately prior to such Distribution Date over (ii) the
      lesser of (A) 55.00% of the aggregate Stated Principal Balance of the
      Mortgage Loans for such Distribution Date and (B) the excess, if any, of
      the aggregate Stated Principal Balance of the Mortgage Loans for such
      Distribution Date over $6,250,039.81.

     

    “Class A-1
      Certificates”: All Certificates bearing the class designation of
“Class A-1,” and evidencing (i) a REMIC Regular Interest in REMIC III, (ii)
      the right to receive the related Basis Risk CarryForward Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class A-2a
      Certificates”: All Certificates bearing the class designation of
“Class A-2a,” and evidencing (i) a REMIC Regular Interest in REMIC III,
      (ii) the right to receive the related Basis Risk CarryForward Amount and (iii)
      the obligation to pay any Class IO Distribution Amount.

     

    “Class A-2b
      Certificates”: All Certificates bearing the class designation of
“Class A-2b,” and evidencing (i) a REMIC Regular Interest in REMIC III,
      (ii) the right to receive the related Basis Risk CarryForward Amount and (iii)
      the obligation to pay any Class IO Distribution Amount.

     

    “Class A-2c
      Certificates”: All Certificates bearing the class designation of
“Class A-2c,” and evidencing (i) a REMIC Regular Interest in REMIC III,
      (ii) the right to receive the related Basis Risk CarryForward Amount and (iii)
      the obligation to pay any Class IO Distribution Amount.

     

    “Class A-2d
      Certificates”: All Certificates bearing the class designation of
“Class A-2d,” and evidencing (i) a REMIC Regular Interest in REMIC III,
      (ii) the right to receive the related Basis Risk CarryForward Amount and (iii)
      the obligation to pay any Class IO Distribution Amount.

     

    “Class B
      Certificates”: The Class B-1, Class B-2, Class B-3 and Class B-4
      Certificates.

     

    “Class B-1
      Certificates”: All Certificates bearing the class designation of
“Class B-1,” and evidencing (i) a REMIC Regular Interest in REMIC III, (ii)
      the right to receive the related Basis Risk CarryForward Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class B-1
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess of (i) the sum of (A) the aggregate Class Certificate Balances
      of the Class A Certificates (after taking into account the distribution of
      the Class A Principal Distribution Amount for such Distribution Date),
      (B) the Class Certificate Balance of the Class M-1 Certificates (after
      taking into account the distribution of the Class M-1 Principal
      Distribution Amount for such Distribution Date), (C) the Class Certificate
      Balance of the Class M-2 Certificates (after taking into account the
      distribution of the Class M-2 Principal Distribution Amount for such
      Distribution Date), (D) the Class Certificate Balance of the Class M-3
      Certificates (after taking into account the distribution of the Class M-3
      Principal Distribution Amount for such Distribution Date), (E) the Class
      Certificate Balance of the Class M-4 Certificates (after taking into
      account the distribution of the Class M-4 Principal Distribution Amount for
      such Distribution Date), (F) the Class Certificate Balance of the
      Class M-5 Certificates (after taking into account the distribution of the
      Class M-5 Principal Distribution Amount for such Distribution Date),
      (G) the Class Certificate Balance of the Class M-6 Certificates (after
      taking into account the distribution of the Class M-6 Principal
      Distribution Amount for such Distribution Date) and (H) the Class
      Certificate Balance of the Class B-1 Certificates immediately prior to such
      Distribution Date over (ii) the lesser of (A) 88.60% of the aggregate
      Stated Principal Balance of the Mortgage Loans for such Distribution Date and
      (B) the excess, if any, of the aggregate Stated Principal Balance of the
      Mortgage Loans for such Distribution Date over $6,250,039.81.

     

    “Class B-2
      Certificates”: All Certificates bearing the class designation of
“Class B-2,” and evidencing (i) a REMIC Regular Interest in REMIC III, (ii)
      the right to receive the related Basis Risk CarryForward Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class B-2
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess of (i) the sum of (A) the aggregate Class Certificate Balances
      of the Class A Certificates (after taking into account the distribution of
      the Class A Principal Distribution Amount for such Distribution Date),
      (B) the Class Certificate Balance of the Class M-1 Certificates (after
      taking into account the distribution of the Class M-1 Principal
      Distribution Amount for such Distribution Date), (C) the Class Certificate
      Balance of the Class M-2 Certificates (after taking into account the
      distribution of the Class M-2 Principal Distribution Amount for such
      Distribution Date), (D) the Class Certificate Balance of the Class M-3
      Certificates (after taking into account the distribution of the Class M-3
      Principal Distribution Amount for such Distribution Date), (E) the Class
      Certificate Balance of the Class M-4 Certificates (after taking into
      account the distribution of the Class M-4 Principal Distribution Amount for
      such Distribution Date), (F) the Class Certificate Balance of the
      Class M-5 Certificates (after taking into account the distribution of the
      Class M-5 Principal Distribution Amount for such Distribution Date),
      (G) the Class Certificate Balance of the Class M-6 Certificates (after
      taking into account the distribution of the Class M-6 Principal
      Distribution Amount for such Distribution Date), (H) the Class Certificate
      Balance of the Class B-1 Certificates (after taking into account the
      distribution of the Class B-1 Principal Distribution Amount for such
      Distribution Date) and (I) the Class Certificate Balance of the
      Class B-2 Certificates immediately prior to such Distribution Date over
      (ii) the lesser of (A) 90.10% of the aggregate Stated Principal
      Balance of the Mortgage Loans for such Distribution Date and (B) the
      excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans
      for such Distribution Date over $6,250,039.81.

     

    “Class B-3
      Certificates”: All Certificates bearing the class designation of
“Class B-3,” and evidencing (i) a REMIC Regular Interest in REMIC III, (ii)
      the right to receive the related Basis Risk CarryForward Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class B-3
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess of (i) the sum of (A) the aggregate Class Certificate Balances
      of the Class A Certificates (after taking into account the distribution of
      the Class A Principal Distribution Amount for such Distribution Date),
      (B) the Class Certificate Balance of the Class M-1 Certificates (after
      taking into account the distribution of the Class M-1 Principal
      Distribution Amount for such Distribution Date), (C) the Class Certificate
      Balance of the Class M-2 Certificates (after taking into account the
      distribution of the Class M-2 Principal Distribution Amount for such
      Distribution Date), (D) the Class Certificate Balance of the Class M-3
      Certificates (after taking into account the distribution of the Class M-3
      Principal Distribution Amount for such Distribution Date), (E) the Class
      Certificate Balance of the Class M-4 Certificates (after taking into
      account the distribution of the Class M-4 Principal Distribution Amount for
      such Distribution Date), (F) the Class Certificate Balance of the
      Class M-5 Certificates (after taking into account the distribution of the
      Class M-5 Principal Distribution Amount for such Distribution Date),
      (G) the Class Certificate Balance of the Class M-6 Certificates (after
      taking into account the distribution of the Class M-6 Principal
      Distribution Amount for such Distribution Date), (H) the Class Certificate
      Balance of the Class B-1 Certificates (after taking into account the
      distribution of the Class B-1 Principal Distribution Amount for such
      Distribution Date), (I) the Class Certificate Balance of the Class B-2
      Certificates (after taking into account the distribution of the Class B-2
      Principal Distribution Amount for such Distribution Date) and (J) the Class
      Certificate Balance of the Class B-3 Certificates immediately prior to such
      Distribution Date over (ii) the lesser of (A) 92.60% of the aggregate
      Stated Principal Balance of the Mortgage Loans for such Distribution Date and
      (B) the excess, if any, of the aggregate Stated Principal Balance of the
      Mortgage Loans for such Distribution Date over $6,250,039.81.

     

    “Class B-4
      Certificates”: All Certificates bearing the class designation of
“Class B-4,” and evidencing (i) a REMIC Regular Interest in REMIC III, (ii)
      the right to receive the related Basis Risk CarryForward Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class B-4
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess of (i) the sum of (A) the aggregate Class Certificate Balances
      of the Class A Certificates (after taking into account the distribution of
      the Class A Principal Distribution Amount for such Distribution Date),
      (B) the Class Certificate Balance of the Class M-1 Certificates (after
      taking into account the distribution of the Class M-1 Principal
      Distribution Amount for such Distribution Date), (C) the Class Certificate
      Balance of the Class M-2 Certificates (after taking into account the
      distribution of the Class M-2 Principal Distribution Amount for such
      Distribution Date), (D) the Class Certificate Balance of the Class M-3
      Certificates (after taking into account the distribution of the Class M-3
      Principal Distribution Amount for such Distribution Date), (E) the Class
      Certificate Balance of the Class M-4 Certificates (after taking into
      account the distribution of the Class M-4 Principal Distribution Amount for
      such Distribution Date), (F) the Class Certificate Balance of the
      Class M-5 Certificates (after taking into account the distribution of the
      Class M-5 Principal Distribution Amount for such Distribution Date),
      (G) the Class Certificate Balance of the Class M-6 Certificates (after
      taking into account the distribution of the Class M-6 Principal
      Distribution Amount for such Distribution Date), (H) the Class Certificate
      Balance of the Class B-1 Certificates (after taking into account the
      distribution of the Class B-1 Principal Distribution Amount for such
      Distribution Date), (I) the Class Certificate Balance of the Class B-2
      Certificates (after taking into account the distribution of the Class B-2
      Principal Distribution Amount for such Distribution Date), (J) the Class
      Certificate Balance of the Class B-3 Certificates (after taking into
      account the distribution of the Class B-3 Principal Distribution Amount for
      such Distribution Date) and (K) the Class Certificate Balance of the
      Class B-4 Certificates immediately prior to such Distribution Date over
      (ii) the lesser of (A) 94.30% of the aggregate Stated Principal
      Balance of the Mortgage Loans for such Distribution Date and (B) the
      excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans
      for such Distribution Date over $6,250,039.81.

     

    “Class
      Certificate Balance”: With respect to any Class and as to any date of
      determination, the aggregate of the Certificate Balances of all Certificates
      of
      such Class as of such date.

     

    “Class
      IO
      Distribution Amount”: For
      purposes of clarity, the Class IO Distribution Amount for any Distribution
      Date
      shall equal the amount payable to the Swap Account on such Distribution Date
      in
      excess of the amount payable on the Class IO Interest on such Distribution
      Date.

     

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

     

    “Class IO
      Shortfalls”: As defined in Section 8.13. For the avoidance of doubt, the
      Class IO Shortfall for any Distribution Date shall equal the amount payable
      to the Class X Certificates in respect of amounts due to the Swap Provider
      on such Distribution Date (other than Defaulted Swap Termination Payments)
      in
      excess of the amount payable on the Class X Interest (prior to any
      reduction for Basis Risk Payments or Swap Termination Payments) on such
      Distribution Date, all as further provided in Section 8.13.

     

    “Class M
      Certificates”: The Class M-1, Class M-2, Class M-3,
      Class M-4, Class M-5 and Class M-6 Certificates.

     

    “Class M-1
      Enhancement Percentage”:
      With
      respect to any Distribution Date, the percentage obtained by dividing
      (x) the sum of (i) the aggregate Class Certificate Balances of the
      Class M and Class B Certificates (other than the Class M-1
      Certificates) and (ii) the Subordinated Amount, in each case after taking
      into account the distributions of the related Principal Distribution Amount
      and
      any principal payments on those Classes of Certificates from the Swap Account
      on
      that Distribution Date, by (y) the aggregate Stated Principal Balance of
      the Mortgage Loans for that Distribution Date.

     

    “Class M-1
      Certificates”: All Certificates bearing the class designation of
“Class M-1,” and evidencing (i) a REMIC Regular Interest in REMIC III, (ii)
      the right to receive the related Basis Risk CarryForward Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class M-1
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess of (i) the sum of (A) the aggregate Class Certificate Balances
      of the Class A Certificates (after taking into account the distribution of
      the Class A Principal Distribution Amount for such Distribution Date), and
      (B) the Class Certificate Balance of the Class M-1 Certificates
      immediately prior to such Distribution Date over (ii) the lesser of
      (A) 63.00% of the aggregate Stated Principal Balance of the Mortgage Loans
      for such Distribution Date and (B) the excess, if any, of the aggregate
      Stated Principal Balance of the Mortgage Loans for such Distribution
      Date over
      $6,250,039.81.

     

    “Class M-2
      Certificates”: All Certificates bearing the class designation of
“Class M-2,” and evidencing (i) a REMIC Regular Interest in REMIC III, (ii)
      the right to receive the related Basis Risk CarryForward Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class M-2
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess of (i) the sum of (A) the aggregate Class Certificate Balances
      of the Class A Certificates (after taking into account the distribution of
      the Class A Principal Distribution Amount for such Distribution Date),
      (B) the Class Certificate Balance of the Class M-1 Certificates (after
      taking into account the distribution of the Class M-1 Principal
      Distribution Amount for such Distribution Date) and (C) the Class
      Certificate Balance of the Class M-2 Certificates immediately prior to such
      Distribution Date over (ii) the lesser of (A) 72.30% of the aggregate
      Stated Principal Balance of the Mortgage Loans for such Distribution Date and
      (B) the excess, if any, of the aggregate Stated Principal Balance of the
      Mortgage Loans for such Distribution Date over
      $6,250,039.81.

     

    “Class M-3
      Certificates”: All Certificates bearing the class designation of
“Class M-3,” and evidencing (i) a REMIC Regular Interest in REMIC III, (ii)
      the right to receive the related Basis Risk CarryForward Amount and (iii) the
      obligation to pay any Class IO Distribution Amount.

     

    “Class M-3
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess of (i) the sum of (A) the aggregate Class Certificate Balances
      of the Class A Certificates (after taking into account the distribution of
      the Class A Principal Distribution Amount for such Distribution Date),
      (B) the Class Certificate Balance of the Class M-1 Certificates (after
      taking into account the distribution of the Class M-1 Principal
      Distribution Amount for such Distribution Date), (C) the Class Certificate
      Balance of the Class M-2 Certificates (after taking into account the
      distribution of the Class M-2 Principal Distribution Amount for such
      Distribution Date) and (D) the Class Certificate Balance of the
      Class M-3 Certificates immediately prior to such Distribution Date over
      (ii) the lesser of (A) 75.40% of the aggregate Stated Principal
      Balance of the Mortgage Loans for such Distribution Date and (B) the
      excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans
      for such Distribution Date over
      $6,250,039.81.

     

    “Class M-4
      Certificates”:
      All
      Certificates bearing the class designation of “Class M-4,” and evidencing
      (i) a REMIC Regular Interest in REMIC III, (ii) the right to receive the related
      Basis Risk CarryForward Amount and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    “Class M-4
      Principal Distribution Amount” With respect to any Distribution Date, the excess
      of (i) the sum of (A) the aggregate Class Certificate Balances of the
      Class A Certificates (after taking into account the distribution of the
      Class A Principal Distribution Amount for such Distribution Date),
      (B) the Class Certificate Balance of the Class M-1 Certificates (after
      taking into account the distribution of the Class M-1 Principal
      Distribution Amount for such Distribution Date), (C) the Class Certificate
      Balance of the Class M-2 Certificates (after taking into account the
      distribution of the Class M-2 Principal Distribution Amount for such
      Distribution Date), (D) the Class Certificate Balance of the Class M-3
      Certificates (after taking into account the distribution of the Class M-3
      Principal Distribution Amount for such Distribution Date) and (E) the Class
      Certificate Balance of the Class M-4 Certificates immediately prior to such
      Distribution Date over (ii) the lesser of (A) 79.40% of the aggregate
      Stated Principal Balance of the Mortgage Loans for such Distribution Date and
      (B) the excess, if any, of the aggregate Stated Principal Balance of the
      Mortgage Loans for such Distribution Date over
      $6,250,039.81.

     

    “Class M-5
      Certificates”:
      All
      Certificates bearing the class designation of “Class M-5,” and evidencing
      (i) a REMIC Regular Interest in REMIC III, (ii) the right to receive the related
      Basis Risk CarryForward Amount and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    “Class M-5
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess of (i) the sum of (A) the aggregate Class Certificate Balances
      of the Class A Certificates (after taking into account the distribution of
      the Class A Principal Distribution Amount for such Distribution Date),
      (B) the Class Certificate Balance of the Class M-1 Certificates (after
      taking into account the distribution of the Class M-1 Principal
      Distribution Amount for such Distribution Date), (C) the Class Certificate
      Balance of the Class M-2 Certificates (after taking into account the
      distribution of the Class M-2 Principal Distribution Amount for such
      Distribution Date), (D) the Class Certificate Balance of the Class M-3
      Certificates (after taking into account the distribution of the Class M-3
      Principal Distribution Amount for such Distribution Date), (E) the Class
      Certificate Balance of the Class M-4 Certificates (after taking into
      account the distribution of the Class M-4 Principal Distribution Amount for
      such Distribution Date) and (F) the Class Certificate Balance of the
      Class M-5 Certificates immediately prior to such Distribution Date over
      (ii) the lesser of (A) 83.20% of the aggregate Stated Principal
      Balance of the Mortgage Loans for such Distribution Date and (B) the
      excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans
      for such Distribution Date over
      $6,250,039.81.

     

    “Class M-6
      Certificates”:
      All
      Certificates bearing the class designation of “Class M-6,” and evidencing
      (i) a REMIC Regular Interest in REMIC III, (ii) the right to receive the related
      Basis Risk CarryForward Amount and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    “Class M-6
      Principal Distribution Amount”: With respect to any Distribution Date, the
      excess of (i) the sum of (A) the aggregate Class Certificate
      Balances of the Class A Certificates (after taking into account the
      distribution of the Class A Principal Distribution Amount for such
      Distribution Date), (B) the Class Certificate Balance of the
      Class M-1 Certificates (after taking into account the distribution of the
      Class M-1 Principal Distribution Amount for such Distribution Date),
      (C) the Class Certificate Balance of the Class M-2 Certificates
      (after taking into account the distribution of the Class M-2 Principal
      Distribution Amount for such Distribution Date), (D) the
      Class Certificate Balance of the Class M-3 Certificates (after taking
      into account the distribution of the Class M-3 Principal Distribution
      Amount for such Distribution Date), (E) the Class Certificate Balance
      of the Class M-4 Certificates (after taking into account the distribution
      of the Class M-4 Principal Distribution Amount for such Distribution Date),
      (F) the Class Certificate Balance of the Class M-5 Certificates
      (after taking into account the distribution of the Class M-5 Principal
      Distribution Amount for such Distribution Date) and (G) the
      Class Certificate Balance of the Class M-6 Certificates immediately
      prior to such Distribution Date over (ii) the lesser of (A) 85.40% of
      the aggregate Stated Principal Balance of the Mortgage Loans for such
      Distribution Date and (B) the excess, if any, of the aggregate Stated
      Principal Balance of the Mortgage Loans for such Distribution Date over
      $6,250,039.81.

     

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

     

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

     

    “Class
      R
      Certificates”: All Certificates bearing the class designation of “Class R,” and
      evidencing ownership of the Class R-I Interest, the Class R-II Interest and
      the
      Class R-III Interest.

     

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

     

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

     

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

     

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

     

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

     

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

     

    “Class
      R-X Certificates”: All Certificates bearing the class designation of “Class
      R-X,” and evidencing ownership of the Class R-IV Interest, the Class R-V
      Interest and the Class R-VI Interest.

     

    “Class
      X
      Certificates”: All Certificates bearing the class designation “Class X” and
      evidencing (i) a REMIC Regular Interest in REMIC III, (ii) the obligation to
      pay
      Basis Risk Shortfall and (iii) the obligation to pay any Class IO Distribution
      Amount. 

     

    “Class
      X
      Distributable Amount”: On any Distribution Date, the sum of (i) as a
      distribution in respect of interest, the amount of interest that has accrued
      on
      the Class X Interest and not applied as an Extra Principal Distribution Amount
      on such Distribution Date, plus any such accrued interest remaining
      undistributed from prior Distribution Dates, plus, without duplication (ii)
      as a
      distribution in respect of principal, any portion of the principal balance
      of
      the Class X Certificates which is distributable as a Subordination Reduction
      Amount, minus (iii) any amounts paid from the Excess Reserve Fund Account to
      pay
      any Basis Risk CarryForward Amount or any Swap Termination Payment (that is
      not
      a Senior Defaulted Swap Termination Payment) payable to the Swap
      Provider.

     

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

     

    “Closing
      Date”: January 26, 2007.

     

    “Closing
      Date Deposit Amount”: $3,696.89 deposited by the Depositor into the Distribution
      Account on the Closing Date. $17.17 of the Closing Date Deposit Amount shall
      be
      attributable to interest in respect of the Group I Mortgage Loans and $2,599.49
      of the Closing Date Deposit Amount shall be attributable to principal in respect
      of the Group I Mortgage Loans. $6.98 of the Closing Date Deposit amount shall
      be
      attributable to interest in respect of the Group II Mortgage Loans and $1,073.25
      of the Closing Date Deposit Amount shall be attributable to principal in respect
      of the Group II Mortgage Loans.

     

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

     

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

     

    “Combined
      Loan to Value Ratio” or “CLTV”: As of any date and as to any Second Lien
      Mortgage Loan, the ratio, expressed as a percentage, of the (a) sum of
      (i) the outstanding principal balance of the Second Lien Mortgage Loan and
      (ii) the outstanding principal balance as of such date of any mortgage loan
      or mortgage loans that are senior or equal in priority to the Second Lien
      Mortgage Loan and which are secured by the same Mortgaged Property to
      (b) the Appraised Value as determined pursuant to the Underwriting
      Guidelines of the related Mortgaged Property as of the origination of the Second
      Lien Mortgage Loan.

     

    “Commission”:
      The
      United States Securities and Exchange Commission.

     

    “Compensating
      Interest”: For any Distribution Date, the lesser of (a) the amount by which such
      Prepayment Interest Shortfall exceeds all Prepayment Interest Excess for such
      Distribution Date on the Mortgage Loans serviced by the applicable Servicer
      and
      (b) the amount of the aggregate Servicing Fee paid to or retained by the
      applicable Servicer for such Distribution Date.

     

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

     

    “Convertible
      Mortgage Loan”: Any individual Adjustable Rate Mortgage Loan which contains a
      provision whereby the Mortgagor is permitted to convert the Adjustable Rate
      Mortgage Loan to a Fixed Rate Mortgage Loan in accordance with the terms of
      the
      related Mortgage Note.

     

    “Corporate
      Trust Office”: The designated office of the Trustee in the State of California
      at which at any particular time its corporate trust business with respect to
      this Agreement is administered, which office at the date of the execution of
      this Agreement is located at 1761 East St. Andrew Place, Santa Ana, California
      92705, Attn: Trust Administration-MS07C1, facsimile no. (714) 656-2626, and
      which is the address to which notices to and correspondence with the Trustee
      should be directed.

     

    “Corresponding
      Certificate”: With respect to:

     

    
      	 	
              (i)

            	
              REMIC
                II Regular Interest LT-A1, the Class A-1 Certificates;

            
	 	
              (ii)

            	
              REMIC
                II Regular Interest LT-A2a, the Class A-2a
                Certificates;

            
	 	
              (iii)

            	
              REMIC
                II Regular Interest LT-A2b, the Class A-2b
                Certificates;

            
	 	
              (iv)

            	
              REMIC
                II Regular Interest LT-A2c, the Class A-2c
                Certificates;

            
	 	
              (v)

            	
              REMIC
                II Regular Interest LT-A2d, the Class A-2d
                Certificates;

            
	 	
              (vi)

            	
              REMIC
                II Regular Interest LT-M1, the Class M-1 Certificates;

            
	 	
              (vii)

            	
              REMIC
                II Regular Interest LT-M2, the Class M-2 Certificates;

            
	 	
              (viii)

            	
              REMIC
                II Regular Interest LT-M3, the Class M-3 Certificates;

            
	 	
              (ix)

            	
              REMIC
                II Regular Interest LT-M4, the Class M-4 Certificates; 

            
	 	
              (x)

            	
              REMIC
                II Regular Interest LT-M5, the Class M-5 Certificates;

            
	 	
              (xi)

            	
              REMIC
                II Regular Interest LT-M6, the Class M-6 Certificates;

            
	 	
              (xii)

            	
              REMIC
                II Regular Interest LT-B1, the Class B-1 Certificates;

            
	 	
              (xiii)

            	
              REMIC
                II Regular Interest LT-B2, the Class B-2 Certificates;

            
	 	
              (xiv)

            	
              REMIC
                II Regular Interest LT-B3, the Class B-3 Certificates;

            
	 	
              (xv)

            	
              REMIC
                II Regular Interest LT-B4, the Class B-4 Certificates;

            
	 	
              (xvi)

            	
              REMIC
                II Regular Interest LT-P, the Class P
                Certificates.

            

    

    

    “Countrywide
      Amendment Regulation AB”: The Amendment Regulation AB, dated as of January 26,
      2006, by and among Countrywide Servicing, Countrywide Home Loans, Inc. and
      the
      Sponsor.

     

    “Countrywide
      Servicing”: Countrywide Home Loans Servicing LP, a Texas limited partnership,
      and its successors in interest.

     

    “Cumulative
      Loss Percentage”: With respect to any Distribution Date, the percentage
      equivalent of a fraction, the numerator of which is the aggregate amount of
      Realized Losses incurred from the Cut-off Date through the last day of the
      related Prepayment Period and the denominator of which is the Cut-off Date
      Pool
      Principal Balance of the Mortgage Loans.

     

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

     

    
      	
              Distribution
                Date Occurring In

            	
              Cumulative
                Loss Percentage

            
	
              February
                2009 through January 2010

            	
              1.400%
                for the first month, plus an additional 1/12th of 1.700% for each
                month
                thereafter (e.g., 2.250% in August 2009)

            
	
              February
                2010 through January 2011

            	
              3.100%
                for the first month, plus an additional 1/12th of 1.700% for each
                month
                thereafter (e.g., 3.950% in August 2010)

            
	
              February
                2011 through January 2012

            	
              4.800%
                for the first month, plus an additional 1/12th of 1.400% for each
                month
                thereafter (e.g., 5.500% in August 2011)

            
	
              February
                2012 through January 2013

            	
              6.200%
                for the first month, plus an additional 1/12th of 0.750% for each
                month
                thereafter (e.g., 6.575% in August 2012)

            
	
              February
                2013 through January 2014

            	
              6.950%
                for the first month, plus an additional 1/12th of 0.050% for each
                month
                thereafter (e.g., 6.975% in August 2013)

            
	
              February
                2014 and thereafter

            	
              7.000%

            

    

    

    “Custodial
      File”: With respect to each Mortgage Loan, the file retained by the Trustee
      consisting of items (i)-(viii) as listed on Exhibit K
      hereto.

     

    “Cut-off
      Date”: January 1, 2007.

     

    “Cut-off
      Date Pool Principal Balance”: The aggregate Stated Principal Balance of all
      Mortgage Loans as of the Cut-off Date plus the portion of the Closing Date
      Deposit Amount allocable to principal.

     

    “Cut-off
      Date Principal Balance”: As to any Mortgage Loan, the Stated Principal Balance
      thereof as of the close of business on the Cut-off Date (after giving effect
      to
      payments of principal due on that date, whether or not received).

     

    “Data
      Tape Information”: The information provided by the Responsible Party as of the
      Cut-off Date to the Trustee and the Depositor or the Sponsor setting forth
      the
      following information with respect to each Mortgage Loan: (1) the
      Mortgagor’s name; (2) as to each Mortgage Loan, the Scheduled Principal
      Balance as of the Cut-off Date; (3) the Mortgage Rate Cap; (4) the
      Index; (5) a code indicating whether the Mortgaged Property is
      owner-occupied; (6) the type of Mortgaged Property; (7) the first date
      on which the Scheduled Payment was due on the Mortgage Loan and, if such date
      is
      not consistent with the Due Date currently in effect, such Due Date;
      (8) the “paid through date” based on payments received from the related
      Mortgagor; (9) the original principal amount of the Mortgage Loan;
      (10) with respect to Adjustable Rate Mortgage Loans, the Maximum Mortgage
      Rate; (11) the type of Mortgage Loan (i.e., Fixed Rate or Adjustable Rate
      Mortgage Loan, First Lien Mortgage Loan or Second Lien Mortgage Loan);
      (12) a code indicating the purpose of the loan (i.e., purchase, rate and
      term refinance, equity take-out refinance); (13) a code indicating the
      documentation style (i.e., full, asset verification, income verification and
      no
      documentation); (14) the credit risk score (FICO score); (15) the loan
      credit grade classification (as described in the underwriting guidelines);
      (16) with respect to each Adjustable Rate Mortgage Loan, the Minimum
      Mortgage Rate; (17) the Mortgage Rate at origination; (18) with
      respect to each Adjustable Rate Mortgage Loan, the first Adjustment Date
      immediately following the Cut-off Date; (19) the value of the Mortgaged
      Property; (20) a code indicating the type of Prepayment Charges applicable
      to such Mortgage Loan (including any prepayment penalty term), if any;
      (21) with respect to each Adjustable Rate Mortgage Loan, the Periodic
      Mortgage Rate Cap; (22) with respect to each First Lien Mortgage Loan, the
      LTV
      at origination and with respect to each Second Lien Mortgage Loan, the CLTV
      at
      origination; (23)  if such Mortgage Loan is covered by a primary mortgage
      insurance policy or a lender-paid primary mortgage insurance policy, the primary
      mortgage insurance rate; (24) Points and Fees (as defined in the Purchase
      Agreement). With respect to the Mortgage Loans in the aggregate, the Data Tape
      Information shall set forth the following information, as of the Cut-off Date:
      (1) the number of Mortgage Loans; (2) the current aggregate
      outstanding 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.

     

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

     

    “Defaulted
      Swap Termination Payment”:
      Any
      Swap Termination Payment required to be paid by the Supplemental Interest Trust
      to the Swap Provider pursuant to the Interest Rate Swap Agreement as a result
      of
      an Event of Default (as defined in the Interest Rate Swap Agreement) with
      respect to which the Swap Provider is the defaulting party or a Termination
      Event (as defined in the Interest Rate Swap Agreement) (other than Illegality
      or
      a Tax Event that is not a Tax Event Upon Merger (each as defined in the Interest
      Rate Swap Agreement )) with respect to which the Swap Provider is the sole
      Affected Party (as defined in the Interest Rate Swap Agreement).

     

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

     

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

     

    “Delay
      Certificates”: As specified in the Preliminary Statement.

     

    “Deleted
      Mortgage Loan”: As defined in Section 2.03.

     

    “Delinquency
      Trigger Event”: With respect to any Distribution Date, a Delinquency Trigger
      Event exists if the quotient (expressed as a percentage) of (x) the rolling
      three month average of the aggregate Stated Principal Balance of 60+ Day
      Delinquent Mortgage Loans (including Mortgage Loans in foreclosure and Mortgage
      Loans related to REO Property) and (y) (1) until the aggregate Class
      Certificate Balance of the Class A Certificates have been reduced to zero,
      the aggregate Stated Principal Balance of the Mortgage Loans for such
      Distribution Date equals or exceeds 35.55% of the prior period’s Senior
      Enhancement Percentage and (2) after the aggregate Class Certificate
      Balance of the Class A Certificates have been reduced to zero, the
      aggregate Stated Principal Balance of the Mortgage Loans for such Distribution
      Date equals or exceeds 43.24% of the prior period’s Class M-1 Enhancement
      Percentage.

     

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

     

    “Depositor:
      Morgan Stanley ABS Capital I Inc., a Delaware corporation, and its
      successors in interest.

     

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

     

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

     

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

     

    “Determination
      Date”: With respect to each Distribution Date, the 18th day (or if such day is
      not a Business Day, the immediately preceding Business Day) in the case of
      Countrywide Servicing, and the 15th day (or if such day is not a Business Day,
      the immediately preceding Business Day) in the case of Saxon, in the calendar
      month in which such Distribution Date occurs.

     

    “Distribution
      Account”: The separate Eligible Account created and maintained by the Trustee
      pursuant to Section 3.07(d) in the name of the Trustee for the benefit of
      the Certificateholders and designated “Deutsche Bank National Trust Company in
      trust for registered Holders of Morgan Stanley ABS Capital I Inc. Trust
      2007-NC1 Mortgage Pass-Through Certificates, Series 2007-NC1”. Funds in the
      Distribution Account shall be held in trust for the Certificateholders for
      the
      uses and purposes set forth in this Agreement.

     

    “Distribution
      Account Deposit Date”: As to any Distribution Date, 12:00 noon New York City
      time on the second Business Day immediately preceding such Distribution
      Date.

     

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

     

    “Document
      Certification and Exception Report”: The report attached to Exhibit F
      hereto.

     

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

     

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

     

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

     

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

     

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

     

    “ERISA-Qualifying
      Underwriting”: A best efforts or firm commitment underwriting or private
      placement that meets the requirements of Prohibited Transaction Exemption
      (“PTE”) 2002-41,
      67 Fed. Reg. 54487 (2002) (or any successor thereto), or any substantially
      similar administrative exemption granted by the U.S. Department of
      Labor.

     

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

     

    “Escrow
      Account”: The Eligible Account or Accounts established and maintained pursuant
      to Section 3.09(b).

     

    “Escrow
      Payments”: As defined in Section 3.09(b).

     

    “Event
      of
      Default”: As defined in Section 7.01.

     

    “Excess
      Reserve Fund Account”: The separate Eligible Account created and maintained by
      the Trustee pursuant to Sections 3.07(b) and 3.07(c) in the name
      of the Trustee for the benefit of the Regular Certificateholders and designated
      “Deutsche Bank National Trust Company in trust for registered Holders of Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through
      Certificates, Series 2007-NC1”. Funds in the Excess Reserve Fund Account
      shall be held in trust for the Regular Certificateholders for the uses and
      purposes set forth in this Agreement. Amounts on deposit in the Excess Reserve
      Fund Account shall not be invested.

     

    “Excess
      Subordinated Amount”: With respect to any Distribution Date, the excess, if any,
      of (a) the Subordinated Amount on such Distribution Date over (b) the
      Specified Subordinated Amount for such Distribution Date.

     

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

     

    “Expense
      Fee Rate”: As to each Mortgage Loan, a per annum rate equal to the sum of the
      Servicing Fee Rate, the Trustee Fee Rate and any lender-paid primary mortgage
      insurance fee rate, if applicable. 

     

    “Expense
      Fees”: As to each Mortgage Loan, the sum of the Servicing Fee, the Trustee Fee
      and any lender-paid primary mortgage insurance fee, if applicable.

     

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

     

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

     

    “Fannie
      Mae Guides”: The Fannie Mae Sellers’ Guide and the Fannie Mae Servicer’s Guide
      and all amendments or additions 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
      Responsible Party or the Depositor, as applicable, as contemplated by this
      Agreement), a determination made by the applicable Servicer that all Insurance
      Proceeds, Condemnation Proceeds, Liquidation Proceeds and other payments or
      recoveries which the applicable Servicer, in its reasonable good faith judgment,
      expects to be finally recoverable in respect thereof have been so recovered.
      Each Servicer shall maintain records, prepared by a Servicing Officer, of each
      Final Recovery Determination made thereby.

     

    “Final
      Scheduled Distribution Date”:
      The
      Final Scheduled Distribution Date for each Class of Certificates is the
      Distribution Date in November 2036.

     

    “First
      Lien Mortgage Loan”: A Mortgage Loan secured by a first lien Mortgage on the
      related Mortgaged Property.

     

    “Fixed
      Rate Mortgage Loan”: A fixed rate Mortgage Loan.

     

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

     

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

     

    “Group
      I
      Class A Certificates”: The Class A-1 Certificates.

     

    “Group
      I
      Loan Cap”: With respect to the Group I Mortgage Loans as of any
      Distribution Date, the weighted average of the Adjusted Net Mortgage Rates
      then
      in effect on the beginning of the related Due Period on the Group I
      Mortgage Loans minus the Swap Payment Rate, adjusted in each case to accrue
      on
      the basis of a 360-day year and the actual number of days in the related
      Interest Accrual Period. With respect to any Distribution Date and the REMIC
      III
      Regular Interests the ownership of which is represented by the Class A-1
      Certificates, a per annum rate equal to the weighted average (adjusted for
      the
      actual number of days elapsed in the related Accrual Period) of the
      Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest LT-1GRP,
      weighted on the basis of the Uncertificated Principal Balance of such REMIC
      II
      Regular Interest immediately prior to such Distribution Date.

     

    “Group
      I
      Mortgage Loans”: The Mortgage Loans identified on the Mortgage Loan Schedule as
      Group I Mortgage Loans. The aggregate Stated Principal Balance of the Group
      I
      Mortgage Loans as of the Cut-off Date is equal to $413,622,062.08.

     

    “Group
      II
      Class A Certificates”: The Class A-2a Certificates, the Class A-2b Certificates,
      the Class A-2c Certificates and the Class A-2d Certificates,
      collectively.

     

    “Group
      II
      Loan Cap”: With respect to the Group II Mortgage Loans as of any
      Distribution Date, the weighted average of the Adjusted Net Mortgage Rates
      then
      in effect on the beginning of the related Due Period on the Group II
      Mortgage Loans minus the Swap Payment Rate, adjusted in each case to accrue
      on
      the basis of a 360-day year and the actual number of days in the related
      Interest Accrual Period. With respect to any Distribution Date and the REMIC
      III
      Regular Interests the ownership of which is represented by the Group II Class
      A
      Certificates, a per annum rate equal to the weighted average (adjusted for
      the
      actual number of days elapsed in the related Accrual Period) of the
      Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest LT-2GRP,
      weighted on the basis of the Uncertificated Principal Balance of such REMIC
      II
      Regular Interest immediately prior to such Distribution Date.

     

    “Group
      II
      Mortgage Loans”: The Mortgage Loans identified on the Mortgage Loan Schedule as
      Group II Mortgage Loans. The aggregate Stated Principal Balance of the Group
      II
      Mortgage Loans as of the Cut-off Date is equal to $836,382,226.85.

     

    “Index”:
      As to each Adjustable Rate Mortgage Loan, the index from time to time in effect
      for the adjustment of the Mortgage Rate set forth as such on the related
      Mortgage Note.

     

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

     

    “Insurance
      Proceeds”: With respect to each Mortgage Loan, proceeds of insurance policies
      insuring the Mortgage Loan or the related Mortgaged Property.

     

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

     

    “Interest
      Rate Adjustment Date”: With respect to each Adjustable Rate Mortgage Loan, the
      date, specified in the related Mortgage Note and the Mortgage Loan Schedule,
      on
      which the Mortgage Rate is adjusted.

     

    “Interest
      Rate Cap Agreement”: The interest rate cap agreement, dated as of the Closing
      Date, between the Cap Provider and the Supplemental Interest Trust Trustee,
      a
      copy of which is attached hereto as Exhibit Z.

     

    “Interest
      Rate Cap Payment”: With respect to the Offered Certificates and the first 11
      Distribution Dates, the amount, if any, equal to the product, determined on
      an
“actual/360” basis, of (i) the excess, if any, of the One-Month LIBOR rate
      (determined in accordance with the Interest Rate Cap Agreement) as of the
      related reset date and over the Cap Rate (as defined in the Interest Rate Cap
      Agreement), (ii) the notional amount set forth on Schedule A to the Interest
      Rate Cap Agreement for such Distribution Date and (iii) the multiplier set
      forth
      on Schedule A to such Interest Rate Cap Agreement.

     

    “Interest
      Rate Swap Agreement”: The interest rate swap agreement, dated as of the Closing
      Date, between the Swap Provider and the Supplemental Interest Trust Trustee,
      a
      copy of which is attached hereto as Exhibit T.

     

    “Interest
      Remittance Amount”: With respect to any Distribution Date and the Mortgage Loans
      in a Loan Group, that portion of Available Funds attributable to interest
      received or advanced relating to the Mortgage Loans in that Loan Group, net
      of
      any Net Swap Payments and any Swap Termination Payments (other than Defaulted
      Swap Termination Payments) payable to the Swap Provider from Available Funds
      with respect to such Distribution Date.

     

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

     

    “Investor-Based
      Exemption”: Any of Prohibited Transaction Class Exemption (“PTCE”) 84-14 (for
      transactions by independent “qualified professional asset managers”), PTCE 90-1
      (for transactions by insurance company pooled separate accounts), PTCE 91-38
      (for transactions by bank collective investment funds), PTCE 95-60 (for
      transactions by insurance company general accounts) or PTCE 96-23 (for
      transactions effected by “in-house asset managers”), or any comparable exemption
      available under Similar Law.

     

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

     

    “LIBOR”:
      With respect to any Interest Accrual Period for the Offered Certificates, the
      rate determined by the Trustee on the related LIBOR Determination Date on the
      basis of the offered rate for one-month U.S. dollar deposits as such rate
      appears on Telerate Page 3750 as of 11:00 a.m. (London time) on such date;
      provided, that if such rate does not appear on Telerate Page 3750, the rate
      for such date will be determined on the basis of the rates at which one-month
      U.S. dollar deposits are offered by the Reference Banks at approximately 11:00
      a.m. (London time) on such date to prime banks in the London interbank market.
      In such event, the Trustee shall request the principal London office of each
      of
      the Reference Banks to provide a quotation of its rate. If at least two such
      quotations are provided, the rate for that date will be the arithmetic mean
      of
      the quotations (rounded upwards if necessary to the nearest whole multiple
      of
      1/16%). If fewer than two quotations are provided as requested, the rate for
      that date will be the arithmetic mean of the rates quoted by major banks in
      New
      York City, selected by the Trustee (after consultation with the Depositor),
      at
      approximately 11:00 a.m. (New York City time) on such date for one-month U.S.
      dollar loans to leading European banks.

     

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

     

    “Liquidated
      Mortgage Loan”: With respect to any Distribution Date, a defaulted Mortgage Loan
      (including any REO Property) which either (a) was liquidated in the calendar
      month preceding the month of such Distribution Date and as to which the
      applicable Servicer has certified to the Trustee that it has received all
      amounts it expects to receive in connection with the liquidation of such
      Mortgage Loan including the final disposition of an REO Property, or (b) is
      a
      Second Lien Mortgage Loan (1) that is delinquent 180 days or longer, (2) for
      which the related first lien mortgage loan is not a Mortgage Loan, and (3)
      as to
      which the applicable Servicer has certified to the Trustee that it does not
      believe there is a reasonable likelihood that any further net proceeds will
      be
      received or recovered with respect to such Second Lien Mortgage
      Loan.

     

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

     

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

     

    “Loan
      Group Cap”: The Group I Loan Cap or the Group II Loan Cap, as
      applicable.

     

    “Loan-to-Value
      Ratio” or “LTV”: With respect to any First Lien Mortgage Loan, the ratio
      (expressed as a percentage) of the original outstanding principal amount of
      the First Lien Mortgage Loan as of the Cut-off Date (unless otherwise
      indicated), to the lesser of (a) the Appraised Value of the Mortgaged
      Property at origination, and (b) if the First Lien Mortgage Loan was made
      to finance the acquisition of the related Mortgaged Property, the purchase
      price
      of the Mortgaged Property.

     

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

     

    “Marker
      Rate”: With respect to the Class X Interest and any Distribution Date, a per
      annum rate equal to two (2) times the weighted average of the Uncertificated
      REMIC II Pass-Through Rates for REMIC II Regular Interest LT-A1, REMIC II
      Regular Interest LT-A2a, REMIC II Regular Interest LT-A2b, REMIC II Regular
      Interest LT-A2c, REMIC II Regular Interest LT-A2d, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-B1, REMIC II Regular Interest
      LT-B2, REMIC II Regular Interest LT-B3, REMIC II Regular Interest LT-B4 and
      REMIC II Regular Interest LT-ZZ, with the per annum rate on each such REMIC
      II
      Regular Interest (other than REMIC II Regular Interest LT-ZZ) subject to a
      cap
      equal to the Pass-Through Rate on the Corresponding Certificate for the purpose
      of this calculation; and with the per annum rate on REMIC II Regular Interest
      LT-ZZ subject to a cap of zero for the purpose of this calculation; provided,
      however, that for this purpose, the calculation of the Uncertificated REMIC
      II
      Pass-Through Rate and the related cap with respect to each such REMIC II Regular
      Interest (other than REMIC II Regular Interest LT-ZZ) shall be multiplied by
      a
      fraction, the numerator of which is the actual number of days in the Interest
      Accrual Period and the denominator of which is thirty (30).

     

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

     

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

     

    “Monthly
      Statement”: The statement delivered to the Certificateholders pursuant to
      Section 4.03.

     

    “Moody’s”:
      Moody’s Investors Service, Inc, and its successors in interest. If Moody’s is
      designated as a Rating Agency in the Preliminary Statement, for purposes of
      Section 10.05(b) the address for notices to Moody’s shall be Moody’s
      Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention:
      Residential Mortgage Pass-Through Group, or such other address as Moody’s may
      hereafter furnish to the Depositor, the Trustee and the Servicers.

     

    “Morgan
      Stanley”: Morgan Stanley, a Delaware corporation.

     

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

     

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

     

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

     

    “Mortgage
      Loan Schedule”: A schedule of Mortgage Loans delivered to the Trustee and
      referred to on Schedule I, such schedule setting forth the following
      information with respect to each Mortgage Loan: (1) the Mortgage Loan
      number; (2) the city, state and zip code of the Mortgaged Property;
      (3) the number and type of residential units constituting the Mortgaged
      Property; (4) the current Mortgage Rate; (5) the current net Mortgage
      Rate; (6) the current Scheduled Payment; (7) with respect to each
      Adjustable Rate Mortgage Loan, the Gross Margin; (8) the original term to
      maturity; (9) the scheduled maturity date; (10) the principal balance
      of the Mortgage Loan as of the Cut-off Date after deduction of payments of
      principal due on or before the Cut-off Date whether or not collected;
      (11) with respect to each Adjustable Rate Mortgage Loan, the next Interest
      Rate Adjustment Date; (12) with respect to each Adjustable Rate Mortgage
      Loan, the lifetime Mortgage Interest Rate Cap; (13) whether the Mortgage
      Loan is convertible or not; (14) the Servicing Fee; (15) whether such
      Mortgage Loan is a Group I Mortgage Loan or a Group II Mortgage Loan; (16)
      the
      date such Mortgage Loan was sold by the Responsible Party to the Sponsor;
      (17) whether such Mortgage Loan provides for a Prepayment Charge as well as
      the term and amount of such Prepayment Charge, if any; (18) with respect to
      each First Lien Mortgage Loan, the LTV at origination and with respect to each
      Second Lien Mortgage Loan, the CLTV at origination; (19) the applicable
      Servicer’s name; and (20) the date on which servicing of the Mortgage Loan
      was transferred to the applicable Servicer.

     

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

     

    “Mortgage
      Rate”: The annual rate of interest borne on a Mortgage Note, which shall be
      adjusted from time to time in the case of an Adjustable Rate Mortgage
      Loan.

     

    “Mortgage
      Rate Caps”: With respect to an Adjustable Rate Mortgage Loan, the Periodic
      Mortgage Rate Cap, the Maximum Mortgage Rate, and the Minimum Mortgage Rate
      for
      such Mortgage Loan.

     

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

     

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

     

    “Net
      Monthly Excess Cash Flow”: For any Distribution Date, the portion of Available
      Funds remaining for distribution pursuant to subsection 4.02(a)(iii) (before
      giving effect to distributions pursuant to such subsection).

     

    “Net
      Prepayment Interest Shortfall”: For any Distribution Date, the amount by which
      the sum of the Prepayment Interest Shortfalls for such Distribution Date exceeds
      the sum of (i) all Prepayment Interest Excess for such Distribution Date
      and (ii) Compensating Interest payments made with respect to such
      Distribution Date.

     

    “Net
      Swap
      Payment”:
      With
      respect to any Distribution Date, any net payment (other than a Swap Termination
      Payment) payable by the Supplemental Interest Trust to the Swap Provider on
      the
      related Fixed Rate Payer Payment Date (as defined in the Interest Rate Swap
      Agreement).

     

    “Net
      Swap
      Receipt”:
      With
      respect to any Distribution Date, any net payment (other than a Swap Termination
      Payment) made by the Swap Provider to the Supplemental Interest Trust on the
      related Floating Rate Payer Payment Date (as defined in the Interest Rate Swap
      Agreement).

     

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

     

    “NIM
      Securities”:
      Any
      debt securities secured or otherwise backed by some or all of the Class X
      and Class P Certificates that are rated by one or more Rating
      Agencies.

     

    “NIM
      Trustee”:
      The
      trustee for the NIM Securities.

     

    “90+
      Day
      Delinquent Mortgage Loan”: (i) Each Mortgage Loan with respect to which any
      portion of a Scheduled Payment is, as of the last day of the prior Due Period,
      three months or more past due (without giving effect to any grace period),
      including, without limitation, such Mortgage Loans that are subject to
      bankruptcy proceedings, (ii) each Mortgage Loan in foreclosure and (iii) all
      REO
      Property.

     

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

     

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

     

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

     

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

     

    “Notice
      of Final Distribution”: The notice to be provided pursuant to Section 9.02
      to the effect that final distribution on any of the Certificates shall be made
      only upon presentation and surrender thereof.

     

    “Notional
      Amount”: Immediately prior to any Distribution Date with respect to the Class X
      Interest, the aggregate Uncertificated Principal Balance of the REMIC II Regular
      Interests (other than the REMIC II Regular Interest LT-P and REMIC II Regular
      Interest LT-IO).

     

    “Offered
      Certificates”: As specified in the Preliminary Statement.

     

    “Officer’s
      Certificate”: A certificate signed by an officer of any Servicer or a
      Subservicer with responsibility for the servicing of the Mortgage Loans required
      to be serviced by such Servicer or a Subservicer and listed on a list delivered
      to the Trustee pursuant to this Agreement.

     

    “Opinion
      of Counsel”: A written opinion of counsel, who may be in-house counsel for a
      Servicer or a Subservicer, reasonably acceptable to the Trustee (and/or such
      other Persons as may be set forth herein), provided, that any Opinion of Counsel
      relating to (a) qualification of any Trust REMIC or (b) compliance with the
      REMIC Provisions, must be (unless otherwise stated in such Opinion of Counsel)
      an opinion of counsel who (i) is in fact independent of such Servicer of the
      Mortgage Loans, (ii) does not have any material direct or indirect financial
      interest in such Servicer of the Mortgage Loans or in an Affiliate of either
      and
      (iii) is not connected with such Servicer of the Mortgage Loans as an officer,
      employee, director or person performing similar functions.

     

    “Optional
      Termination Date”: The Distribution Date on which the aggregate Stated Principal
      Balance of the Mortgage Loans, as of the last day of the related Due Period,
      is
      equal to 5% or less of the Cut-off Date Pool Principal Balance.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    “Pass-Through
      Margin”: With respect to each Class of Regular Certificates except as set forth
      in the following sentence, the following percentages: Class A-1, 0.1300%; Class
      A-2a, 0.0500%; Class A-2b, 0.1000%; Class A-2c, 0.1400%; Class A-2d, 0.2200%;
      Class M-1, 0.2600%; Class M-2, 0.2700%; Class M-3, 0.3000%; Class M-4, 0.3800%;
      Class M-5, 0.4000%; Class M-6, 0.4500%; Class B-1, 0.9500%; Class B-2, 1.5000%;
      Class B-3, 2.2500%; and Class B-4, 2.2500%. On the first Distribution Date
      after
      the Optional Termination Date, the Pass-Through Margins shall increase to:
      Class
      A-1, 0.2600%; Class A-2a, 0.1000%; Class A-2b, 0.2000%; Class A-2c, 0.2800%;
      Class A-2d, 0.4400%; Class M-1, 0.3900%; Class M-2, 0.4050%; Class M-3, 0.4500%;
      Class M-4, 0.5700%; Class M-5, 0.6000%; Class M-6, 0.6750%; Class B-1, 1.4250%;
      Class B-2, 2.2500%; Class B-3, 3.3750%; and Class B-4, 3.3750%.

     

    “Pass
      Through-Rate”: With respect to:

     

    (i)  the
      Class
      A-1 Certificates, the least of (i) one-month LIBOR plus the applicable
      Pass-Through Margin, (ii) the Group I Loan Cap, and (iii) the WAC
      Cap;

     

    (ii)  the
      Class
      A-2a Certificates, the least of (i) one-month LIBOR plus the applicable
      Pass-Through Margin, (ii) the Group II Loan Cap, and (iii) the WAC
      Cap;

     

    (iii)  the
      Class
      A-2b Certificates, the least of (i) LIBOR plus the applicable Pass-Through
      Margin, (ii) the Group II Loan Cap, and (iii) the WAC Cap;

     

    (iv)  the
      Class
      A-2c Certificates, the least of (i) LIBOR plus the applicable Pass-Through
      Margin, (ii) the Group II Loan Cap, and (iii) the WAC Cap;

     

    (v)  the
      Class
      A-2d Certificates, the least of (i) LIBOR plus the applicable Pass-Through
      Margin, (ii) the Group II Loan Cap, and (iii) the WAC Cap;

     

    (vi)  the
      Class
      M-1 Certificates, the lesser of (i) LIBOR plus the applicable Pass-Through
      Margin and (ii) the WAC Cap;

     

    (vii)  the
      Class
      M-2 Certificates, the lesser of (i) LIBOR plus the applicable Pass-Through
      Margin and (ii) the WAC Cap;

     

    (viii)  the
      Class
      M-3 Certificates, the lesser of (i) LIBOR plus the applicable Pass-Through
      Margin and (ii) the WAC Cap;

     

    (ix)  the
      Class
      M-4 Certificates, the lesser of (i) LIBOR plus the applicable Pass-Through
      Margin and (ii) the WAC Cap;

     

    (x)  the
      Class
      M-5 Certificates, the lesser of (i) LIBOR plus the applicable Pass-Through
      Margin and (ii) the WAC Cap;

     

    (xi)  the
      Class
      M-6 Certificates, the lesser of (i) LIBOR plus the applicable Pass-Through
      Margin and (ii) the WAC Cap;

     

    (xii)  the
      Class
      B-1 Certificates, the lesser of (i) LIBOR plus the applicable Pass-Through
      Margin and (ii) the WAC Cap;

     

    (xiii)  the
      Class
      B-2 Certificates, the lesser of (i) LIBOR plus the applicable Pass-Through
      Margin and (ii) the WAC Cap;

     

    (xiv)  the
      Class
      B-3 Certificates, the lesser of (i) LIBOR plus the applicable Pass-Through
      Margin and (ii) the WAC Cap; 

     

    (xv)  the
      Class
      B-4 Certificates, the lesser of (i) LIBOR plus the applicable Pass-Through
      Margin and (ii) the WAC Cap; and

     

    (xvi)  the
      Class
      X Interest, 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 (R) below, and the denominator of which is the aggregate
      Uncertificated Principal Balance of REMIC II Regular Interest LT-AA, REMIC
      II
      Regular Interest LT-A1, REMIC II Regular Interest LT-A2a, REMIC II Regular
      Interest LT-A2b, REMIC II Regular Interest LT-A2c, REMIC II Regular Interest
      LT-A2d, REMIC II Regular Interest LT-M1, REMIC II Regular Interest LT-M2, REMIC
      II Regular Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC II Regular
      Interest LT-M5, REMIC II Regular Interest LT-M6, REMIC II Regular Interest
      LT-B1, REMIC II Regular Interest LT-B2, REMIC II Regular Interest LT-B3, REMIC
      II Regular Interest LT-B4 and REMIC II Regular Interest LT-ZZ. For purposes
      of
      calculating the Pass-Through Rate for the Class X Certificates, the numerator
      is
      equal to the sum of the following components:

     

    (A)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-AA
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-AA;

     

    (B)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A1;

     

    (C)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A2a,
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A2a;

     

    (D)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A2b,
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A2b;

     

    (E)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A2c,
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A2c;

     

    (F)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A2d,
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A2d;

     

    (G)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M1;

     

    (H)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M2
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M2;

     

    (I)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M3
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M3;

     

    (J)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M4
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M4;

     

    (K)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M5
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M5;

     

    (L)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M6
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M6;

     

    (M)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-B1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-B1;

     

    (N)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-B2
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-B2;

     

    (O)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-B3
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-B3;

     

    (P)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-B4
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-B4;

     

    (Q)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-ZZ
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-ZZ; and

     

    (R)  100%
      of
      the interest on REMIC II Regular Interest LT-P.

     

    The
      Class
      X Certificates shall be entitled to 100% of amounts distributed on the Class
      X
      Interest.

     

    “PCAOB”:
      The
      Public Company Accounting Oversight Board.

     

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

     

    “Periodic
      Mortgage Rate Cap”: With respect to an Adjustable Rate Mortgage Loan, the
      periodic limit on each Mortgage Rate adjustment as set forth in the related
      Mortgage Note.

     

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

     

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

     

    (ii)  demand
      and time deposits in, certificates of deposit of, or bankers’ acceptances (which
      shall each have an original maturity of not more than 90 days and, in the case
      of bankers’ acceptances, shall in no event have an original maturity of more
      than 365 days or a remaining maturity of more than 30 days) denominated in
      United States dollars and issued by, any Depository Institution and rated “P-1”
by Moody’s, “F1+” by Fitch, and “A-1+” by Standard & Poor’s (to the extent
      they are Rating Agencies hereunder and are so rated by such Rating
      Agency);

     

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

     

    (iv)  securities
      bearing interest or sold at a discount that are issued by any corporation
      incorporated under the laws of the United States of America or any State thereof
      and that are rated by each Rating Agency that rates such securities in its
      highest long-term unsecured rating categories at the time of such investment
      or
      contractual commitment providing for such investment;

     

    (v)  commercial
      paper (including both non-interest-bearing discount obligations and
      interest-bearing obligations payable on demand or on a specified date not more
      than 30 days after the date of acquisition thereof) that is rated by each Rating
      Agency that rates such securities in its highest short-term unsecured debt
      rating available at the time of such investment;

     

    (vi)  units
      of
      money market funds, including money market funds advised by the Depositor,
      the
      Trustee or an Affiliate thereof, that have been rated “Aaa” by Moody’s, “AAAm”
by Standard & Poor’s and at least “AA” by Fitch (to the extent they are
      Rating Agencies hereunder and such funds are so rated by such Rating Agency);
      and

     

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

     

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

     

    “Permitted
      Transferee”: Any Person other than (i) the United States, any State or political
      subdivision thereof, or any agency or instrumentality of any of the foregoing,
      (ii) a foreign government, international organization or any agency or
      instrumentality of either of the foregoing, (iii) an organization (except
      certain farmers’ cooperatives described in Section 521 of the Code) which is
      exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
      by
      Section 511 of the Code on unrelated business taxable income) on any excess
      inclusions (as defined in Section 860E(c)(1) of the Code) with respect to any
      Residual Certificate, (iv) rural electric and telephone cooperatives described
      in Section 1381(a)(2)(C) of the Code, (v) a Person that is not a U.S. Person
      or
      a U.S. Person with respect to whom income from a Residual Certificate is
      attributable to a foreign permanent establishment or fixed base, within the
      meaning of an applicable income tax treaty, of such Person or any other U.S.
      Person, a U.S. Person that is a partnership for U.S. federal income tax
      purposes, any partner in which, directly or indirectly (other than through
      a
      U.S. corporation) is not a U.S. Person, (vi) an “electing large partnership”
within the meaning of Section 775 of the Code and (vii) any other Person so
      designated by the Depositor based upon an Opinion of Counsel that the Transfer
      of an Ownership Interest in a Residual Certificate to such Person may cause
      any
      Trust REMIC to fail to qualify as a REMIC at any time that the Certificates
      are
      outstanding. The terms “United States”, “State” and “international organization”
shall have the meanings set forth in Section 7701 of the Code or successor
      provisions. A corporation will not be treated as an instrumentality of the
      United States or of any State or political subdivision thereof for these
      purposes if all of its activities are subject to tax and, with the exception
      of
      Freddie Mac, a majority of its board of directors is not selected by such
      government unit.

     

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

     

    “Physical
      Certificates”: As specified in the Preliminary Statement.

     

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

     

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

     

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

     

    “Prepayment
      Interest Shortfall”:
      With
      respect to any Distribution Date, the sum of, for each Mortgage Loan that was
      during the portion of the Prepayment Period from and including the 16th day
      of
      the month preceding the month in which such Distribution Date occurs (or from
      the day following the Cut-off Date, in the case of the first Distribution Date)
      through the last day of such month, the subject of a Principal Prepayment which
      is not accompanied by an amount equal to one month of interest that would have
      been due on such Mortgage Loan on the Due Date in the following month and which
      was applied by the applicable Servicer to reduce the outstanding principal
      balance of such Mortgage Loan on a date preceding such Due Date an amount equal
      to the product of (a) the Mortgage Rate net of the Servicing Fee Rate for such
      Mortgage Loan, (b) the amount of the Principal Prepayment for such Mortgage
      Loan, (c) 1/360 and (d) the number of days commencing on the date on which
      such
      Principal Prepayment was applied and ending on the last day of the calendar
      month in which the related Prepayment Period begins.

     

    “Prepayment
      Period”:
      With
      respect to any Distribution Date, the period from and including the 16th day
      of
      the month preceding the month in which such Distribution Date occurs (or, in
      the
      case of the first Distribution Date, from and including the Cut-off Date) to
      and
      including the 15th day of the month in which such Distribution Date
      occurs.

     

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

     

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

     

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

     

    “Principal
      Remittance Amount”: With respect to any Distribution Date, the amount equal to
      the sum of the following amounts (without duplication) with respect to the
      related Due Period: (i) each scheduled payment of principal on a Mortgage Loan
      due during such Due Period and received by the Servicers on or prior to the
      related Determination Date or advanced by the applicable Servicer for the
      related Remittance Date, and all Principal Prepayments received during the
      related Prepayment Period; (ii) all Liquidation Proceeds, Condemnation Proceeds
      and Insurance Proceeds on the Mortgage Loans allocable to principal actually
      collected by the Servicers during the related Prepayment Period; (iii) the
      portion of the Repurchase Price allocable to principal with respect to each
      Mortgage Loan, repurchased with respect to such Distribution Date; (iv) all
      Substitution Adjustment Amounts allocable to principal received in connection
      with the substitutions of Mortgage Loans with respect to such Distribution
      Date;
      (v) with respect to the Distribution Date in February 2007 only, the portion
      of
      the Closing Date Deposit Amount allocable to principal; and (vi) the allocable
      portion of the proceeds received with respect to the termination of the Trust
      Fund pursuant to clause (a) of Section 9.01 (to the extent such proceeds relate
      to principal).

     

    “Private
      Certificates”: As specified in the Preliminary Statement.

     

    “Prospectus
      Supplement”: The Prospectus Supplement, dated January 19, 2007, relating to the
      Offered Certificates.

     

    “PTCE
      95-60”: As defined in Section 5.02(b).

     

    “Purchase
      Agreement”: The Sixth Amended and Restated Mortgage Loan Purchase and Warranties
      Agreement, dated as of May 1, 2006, between Morgan Stanley Capital Inc. and
      NC
      Capital Corporation.

     

    “Rating
      Agency”: Each of the Rating Agencies specified in the Preliminary Statement. If
      such organization or a successor is no longer in existence, “Rating Agency”
shall be such nationally recognized statistical rating organization, or other
      comparable Person, as is designated by the Depositor, notice of which
      designation shall be given to the Trustee. References herein to a given rating
      or rating category of a Rating Agency shall mean such rating category without
      giving effect to any modifiers. For purposes of Section 10.05(b), the
      addresses for notices to each Rating Agency shall be the address specified
      therefor in the definition corresponding to the name of such Rating Agency,
      or
      such other address as either such Rating Agency may hereafter furnish to the
      Depositor, the Trustee and the Servicers.

     

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

     

    “Record
      Date”: With respect to any Distribution Date, the close of business on the
      Business Day immediately preceding such Distribution Date; provided, however,
      that, for any Certificate issued in definitive form, the Record Date shall
      be
      the close of business on the last Business Day of the month preceding the month
      in which such applicable Distribution Date occurs.

     

    “Reference
      Bank”: As defined in Section 4.04.

     

    “Regular
      Certificates”: As specified in the Preliminary Statement.

     

    “Regulation
      AB”:
      Subpart 229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to
      such clarification and interpretation as have been provided by the Commission
      in
      the adopting release (Asset-Backed Securities, Securities Act Release No.
      33-8518, 70 Fed. Reg. 1,506, 1,531 (January 7, 2005)) or by the staff
      of the Commission, or as may be provided by the Commission or its staff from
      time to time.

     

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

     

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

     

    “REMIC
      I
      Group I Regular Interests”: REMIC I Regular Interest I and REMIC I Regular
      Interest I-1-A through REMIC I Regular Interest I-61-B as designated in the
      Preliminary Statement hereto.

     

    “REMIC
      I
      Group II Regular Interests”: REMIC I Regular Interest II and REMIC I Regular
      Interest II-1-A through REMIC I Regular Interest II-61-B as designated in the
      Preliminary Statement hereto.

     

    “REMIC
      I
      Regular Interest”: Any of the separate non-certificated beneficial ownership
      interests in REMIC I issued hereunder and designated as a “regular interest” in
      REMIC I. Each REMIC I Regular Interest shall accrue interest at the related
      Uncertificated REMIC I Pass-Through Rate in effect from time to time, and shall
      be entitled to distributions of principal, subject to the terms and conditions
      hereof, in an aggregate amount equal to its initial Uncertificated Principal
      Balance as set forth in the Preliminary Statement hereto. The designations
      for
      the respective REMIC I Regular Interests are set forth in the Preliminary
      Statement hereto. The REMIC I Regular Interests consist of the REMIC I Group
      I
      Regular Interests, REMIC I Group II Regular Interests and REMIC I Regular
      Interest P.

     

    “REMIC
      II”: The segregated pool of assets consisting of all of the REMIC I Regular
      Interests conveyed in trust to the Trustee, for the benefit of the Holders
      of
      the REMIC II Regular Interests and the Holders of the Class R (as holders of
      the
      Class R-II 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
      Interest Loss Allocation Amount”: With respect to any Distribution Date, an
      amount equal to (a) the product of (i) the aggregate Stated Principal Balance
      of
      the Mortgage Loans and REO Properties then outstanding and (ii) the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-AA
      minus the Marker Rate, divided by (b) 12.

     

    “REMIC
      II
      Marker Allocation Percentage”: 50% of any amount payable or loss attributable
      from the Mortgage Loans, which shall be allocated to REMIC II Regular Interest
      LT-AA, REMIC II Regular Interest LT-A1, REMIC II Regular Interest LT-A2a, REMIC
      II Regular Interest LT-A2b, REMIC II Regular Interest LT-A2c, REMIC II Regular
      Interest LT-A2d, REMIC II Regular Interest LT-M1, REMIC II Regular Interest
      LT-M2, REMIC II Regular Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC
      II Regular Interest LT-M5, REMIC II Regular Interest LT-M6, REMIC II Regular
      Interest LT-B1, REMIC II Regular Interest LT-B2, REMIC II Regular Interest
      LT-B3, REMIC II Regular Interest LT-B4 and REMIC II Regular Interest
      LT-ZZ.

     

    “REMIC
      II
      Overcollateralization Amount”: With respect to any date of determination, (i)
      0.50% of the aggregate Uncertificated Principal Balances of the REMIC II Regular
      Interests minus (ii) the aggregate of the Uncertificated Principal Balances
      of
      REMIC II Regular Interest LT-A1, REMIC II Regular Interest LT-A2a, REMIC II
      Regular Interest LT-A2b, REMIC II Regular Interest LT-A2c, REMIC II Regular
      Interest LT-A2d, REMIC II Regular Interest LT-M1, REMIC II Regular Interest
      LT-M2, REMIC II Regular Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC
      II Regular Interest LT-M5, REMIC II Regular Interest LT-M6, REMIC II Regular
      Interest LT-B1, REMIC II Regular Interest LT-B2, REMIC II Regular Interest
      LT-B3, REMIC II Regular Interest LT-B4 and REMIC II Regular Interest LT-P,
      in
      each case as of such date of determination.

     

    “REMIC
      II
      Principal Loss Allocation Amount”: With respect to any Distribution Date, an
      amount equal to (a) the product of (i) 50% of the aggregate Stated Principal
      Balance of the Mortgage Loans and REO Properties then outstanding and (ii)
      1
      minus a fraction, the numerator of which is two times the aggregate of the
      Uncertificated Principal Balances of REMIC II Regular Interest LT-A1, REMIC
      II
      Regular Interest LT-A2a, REMIC II Regular Interest LT-A2b, REMIC II Regular
      Interest LT-A2c, REMIC II Regular Interest LT-A2d, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-B1, REMIC II Regular Interest
      LT-B2, REMIC II Regular Interest LT-B3 and REMIC II Regular Interest LT-B4,
      and
      the denominator of which is the aggregate of the Uncertificated Principal
      Balances of REMIC II Regular Interest LT-A1, REMIC II Regular Interest LT-A2a,
      REMIC II Regular Interest LT-A2b, REMIC II Regular Interest LT-A2c, REMIC II
      Regular Interest LT-A2d, REMIC II Regular Interest LT-M1, REMIC II Regular
      Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC II Regular Interest
      LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular Interest LT-M6, REMIC
      II Regular Interest LT-B1, REMIC II Regular Interest LT-B2, REMIC II Regular
      Interest LT-B3, REMIC II Regular Interest LT-B4 and REMIC II Regular Interest
      LT-ZZ.

     

    “REMIC
      II
      Regular Interests”: Any of the separate non-certificated beneficial ownership
      interests in REMIC II issued hereunder and designated as a “regular interest” in
      REMIC II. Each REMIC II Regular Interest shall accrue interest at the related
      Uncertificated REMIC II Pass-Through Rate in effect from time to time, and
      shall
      be entitled to distributions of principal, subject to the terms and conditions
      hereof, in an aggregate amount equal to its initial Uncertificated Principal
      Balance as set forth in the Preliminary Statement hereto. The REMIC II Regular
      Interests are as follows: REMIC II Regular Interest LT-AA, REMIC II Regular
      Interest LT-A1, REMIC II Regular Interest LT-A2a, REMIC II Regular Interest
      LT-A2b, REMIC II Regular Interest LT-A2c, REMIC II Regular Interest LT-A2d,
      REMIC II Regular Interest LT-M1, REMIC II Regular Interest LT-M2, REMIC II
      Regular Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC II Regular
      Interest LT-M5, REMIC II Regular Interest LT-M6, REMIC II Regular Interest
      LT-B1, REMIC II Regular Interest LT-B2, REMIC II Regular Interest LT-B3, REMIC
      II Regular Interest LT-B4, REMIC II Regular Interest LT-ZZ, REMIC II Regular
      Interest LT-P, REMIC II Regular Interest LT-1SUB, REMIC II Regular Interest
      LT-1GRP, REMIC II Regular Interest LT-2SUB, REMIC II Regular Interest LT-2GRP
      and REMIC II Regular Interest LT-XX.

     

    “REMIC
      II
      Regular Interest LT-ZZ Maximum Interest Deferral Amount”: With respect to any
      Distribution Date, the excess of (i) accrued interest at the Uncertificated
      REMIC II Pass-Through Rate applicable to REMIC II Regular Interest LT-ZZ for
      such Distribution Date on a balance equal to the Uncertificated Principal
      Balance of REMIC II Regular Interest LT-ZZ minus the REMIC II
      Overcollateralization Amount, in each case for such Distribution Date, over
      (ii)
      the Uncertificated Accrued Interest on REMIC II Regular Interest LT-A1, REMIC
      II
      Regular Interest LT-A2a, REMIC II Regular Interest LT-A2b, REMIC II Regular
      Interest LT-A2c, REMIC II Regular Interest LT-A2d, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-B1, REMIC II Regular Interest
      LT-B2, REMIC II Regular Interest LT-B3 and REMIC II Regular Interest LT-B4
      for
      such Distribution Date, with the rate on each such REMIC II Regular Interest
      subject to a cap equal to the related Pass-Through Rate.

     

    “REMIC
      II
      Sub WAC Allocation Percentage”: 50% of any amount payable or loss attributable
      from the Mortgage Loans, which shall be allocated to REMIC II Regular Interest
      LT-1SUB, REMIC II Regular Interest LT-1GRP, REMIC II Regular Interest LT-2SUB,
      REMIC II Regular Interest LT-2GRP and REMIC II Regular Interest
      LT-XX.

     

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

     

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

     

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

     

    “REMIC
      III
      Certificate”: Any Regular Certificate (other than a Class X Certificate or a
      Class P Certificate) or Class R Certificate.

     

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

     

    “REMIC
      III Regular Interest”: The Class X Interest, Class P Interest and Class IO
      Interest.

     

    “REMIC
      IV”: The segregated pool of assets consisting of the Class X Interest conveyed
      in trust to the Trustee, for the benefit of the Class X Certificateholders
      pursuant to Article II hereunder, and all amounts deposited therein, with
      respect to which a separate REMIC election is to be made.

     

    “REMIC
      V”: The segregated pool of assets consisting of the Class P Interest conveyed
      in
      trust to the Trustee, for the benefit of the Class P Certificateholders pursuant
      to Article II hereunder, and all amounts deposited therein, with respect to
      which a separate REMIC election is to be made.

     

    “REMIC
      VI”: The segregated pool of assets consisting of the Class IO Interest conveyed
      in trust to the Trustee, for the benefit of REMIC VI Regular Interest Swap-IO
      pursuant to Article II hereunder, and all amounts deposited therein, with
      respect to which a separate REMIC election is to be made.

     

    “REMIC
      VI
      Regular Interest Swap-IO”: A Regular Interest in REMIC VI entitled to 100% of
      amounts distributed on the Class IO Interest.

     

    “REMIC
      Opinion”: Shall mean an Opinion of Counsel to the effect that the proposed
      action will not have an adverse affect on any REMIC created
      hereunder.

     

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

     

    “REMIC
      Regular Interest”: Any REMIC I Regular Interest, REMIC II Regular Interest,
      Regular Certificate, REMIC III Regular Interest or Class IO
      Interest.

     

    “Remittance
      Date”: With respect to Countrywide Servicing and any Distribution Date, the
      second Business Day immediately preceding such Distribution Date. With respect
      to Saxon and any Distribution Date, the 21st
      day (or
      if such day is a Saturday, then it shall be the first Business Day immediately
      preceding that day, or if such day is a Sunday, then it shall be the immediately
      following Business Day) of the month of each related Distribution
      Date.

     

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

     

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

     

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

     

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

     

    “Replacement
      Swap Provider Payment”:
      Any
      payments that have been received by the Supplemental Interest Trust as a result
      of entering into a replacement interest rate swap agreement.

     

    “Reportable
      Event”:
      As
      defined in Section 8.12(g).

     

    “Representations
      and Warranties Agreement”: The Representations and Warranties Agreement, dated
      the Closing Date, between the Depositor and the Sponsor, a copy of which is
      attached hereto as Exhibit Y.

     

    “Repurchase
      Price”: With respect to any Mortgage Loan repurchased by the Depositor or the
      Responsible Party, an amount equal to the sum of (i) the unpaid principal
      balance of such Mortgage Loan as of the date of repurchase, (ii) interest on
      such unpaid principal balance of such Mortgage Loan at the Mortgage Rate from
      the last date through which interest has been paid and distributed to the
      Trustee to the date of repurchase, (iii) all unreimbursed Servicing Advances,
      (iv) all costs and expenses incurred by the Trustee arising out of or based
      upon
      such breach, including without limitation, costs and expenses relating to the
      Trustee’s enforcement of the repurchase obligation of the Depositor or the
      Responsible Party hereunder, and (v) any costs and damages incurred by the
      Trust
      in connection with any violation by such Mortgage Loan of any predatory lending
      law or abusive lending law. In addition to the Repurchase Price, the Responsible
      Party is obligated to make certain payments for material breaches of
      representations and warranties as further set forth in Section 2.03(n) in this
      Agreement.

     

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

     

    “Residual
      Certificates”: As specified in the Preliminary Statement.

     

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

     

    “Responsible
      Party”: NC Capital Corporation, a California corporation, and its successors in
      interest.

     

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

     

    “Sarbanes
      Certification”:
      As
      defined in Section 8.12(c).

     

    “Saxon”:
      Saxon Mortgage Services, Inc., a Texas corporation, and its successors in
      interest.

     

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

     

    “Second
      Lien Mortgage Loan”:
      A
      Mortgage Loan secured by a second lien Mortgage on the related Mortgaged
      Property.

     

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

     

    “Senior
      Enhancement Percentage”: With respect to any Distribution Date, the percentage
      obtained by dividing (x) the sum of (i) the aggregate Class
      Certificate Balance of the Subordinated Certificates and (ii) the Class
      Certificate Balance of the Class X Certificates, in each case after taking
      into
      account the distribution of the Principal Distribution Amount and any principal
      payments on those Classes of Certificates from the Swap Account on that
      Distribution Date, by (y) the aggregate Stated Principal Balance of the
      Mortgage Loans for such Distribution Date.

     

    “Senior
      Specified Enhancement Percentage”: As of any date of determination,
      45.00%.

     

    “Servicers”:
      Saxon and Countrywide Servicing, and if a successor servicer to either is
      appointed hereunder, such successor. When the term “Servicer” is used in this
      Agreement in connection with the administration of servicing obligations with
      respect to any Mortgage Loan, Mortgaged Property, REO Property or Mortgage
      File,
“Servicer” shall mean the Person identified as the Servicer of such Mortgage
      Loan on the Mortgage Loan Schedule.

     

    “Servicer
      Remittance Report”: As defined in Section 4.03(d).

     

    “Servicing
      Advances”: The reasonable “out-of-pocket” costs and expenses (including legal
      fees) incurred by the applicable Servicer in the performance of its servicing
      obligations in connection with a default, delinquency or other unanticipated
      event, including, but not limited to, the cost of (i) the preservation,
      restoration, inspection and protection of a Mortgaged Property, (ii) any
      enforcement, administrative or judicial proceedings, including foreclosures
      and
      litigation, in respect of a particular Mortgage Loan, (iii) the management
      (including reasonable fees in connection therewith) and liquidation of any
      REO
      Property and (iv) the performance of its obligations under
      Sections 3.01, 3.09, 3.13 and 3.15. The Servicing Advances shall also
      include any reasonable “out-of-pocket” costs and expenses (including legal fees)
      incurred by the applicable Servicer in connection with executing and recording
      instruments of satisfaction, deeds of reconveyance or Assignments of Mortgage
      in
      connection with any foreclosure in respect of any Mortgage Loan to the extent
      not recovered from the Mortgagor or otherwise payable under this Agreement.
      Neither Servicer shall be required to make any Nonrecoverable Servicing
      Advances.

     

    “Servicing
      Criteria”: The “servicing criteria” set forth in Item 1122(d) of Regulation AB,
      which as of the Closing Date are listed on Exhibit P hereto, except with respect
      to Countrywide Servicing, “servicing criteria” shall have the meaning set forth
      in the Countrywide Amendment Regulation AB.

     

    “Servicing
      Fee”: With respect to each Servicer, each Mortgage Loan serviced by such
      Servicer and for any calendar month, an amount equal to one month’s interest at
      the Servicing Fee Rate on the applicable Stated Principal Balance of such
      Mortgage Loan as of the close of business on the date immediately preceding
      the
      first day of the related Due Period. Such fee shall be payable monthly, solely
      from the interest portion (including recoveries with respect to interest from
      Liquidation Proceeds, Insurance Proceeds, Condemnation Proceeds and proceeds
      received with respect to REO Properties, to the extent permitted by Section
      3.11) of such Scheduled Payment collected by such Servicer, or as otherwise
      provided under Section 3.11.

     

    “Servicing
      Fee Rate”: With respect to each Mortgage Loan, 0.50% per annum.

     

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

     

    “Servicing
      Function Participant”:
      As
      defined in Section 3.23(a).

     

    “Servicing
      Officer”: Any officer of any Servicer involved in, or responsible for, the
      administration and servicing of the Mortgage Loans whose name and facsimile
      signature appear on a list of servicing officers furnished to the Trustee by
      such Servicer on the Closing Date pursuant to this Agreement, as such list
      may
      from time to time be amended.

     

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

     

    “60+
      Day
      Delinquent Mortgage Loan”: (i) Each Mortgage Loan with respect to which any
      portion of a Scheduled Payment is, as of the last day of the prior Due Period,
      two months or more past due (without giving effect to any grace period),
      including, without limitation, such Mortgage Loans that are subject to
      bankruptcy proceedings, (ii) each Mortgage Loan in foreclosure and
      (iii) all REO Property.

     

    “Specified
      Subordinated Amount”: Prior to the Stepdown Date, an amount equal to 2.85% of
      the Cut-off Date Pool Principal Balance. On and after the Stepdown Date, an
      amount equal to 5.70% of the aggregate Stated Principal Balance of the Mortgage
      Loans for such Distribution Date, subject, until the Class Certificate Balance
      of each Class of Offered Certificates has been reduced to zero, to a minimum
      amount equal to 0.50% of the Cut-off Date Pool Principal Balance; provided,
      however, that if, on any Distribution Date, a Trigger Event exists, the
      Specified Subordinated Amount shall not be reduced to the applicable percentage
      of the then current aggregate Stated Principal Balance of the Mortgage Loans
      until the Distribution Date on which a Trigger Event no longer exists. When
      the
      Class Certificate Balance of each Class of Offered Certificates has been reduced
      to zero, the Specified Subordinated Amount will thereafter equal
      zero.

     

    “Sponsor”:
      Morgan
      Stanley Mortgage Capital Inc., a New York corporation, and its successors
      in interest, as purchaser of the Mortgage Loans under the Purchase
      Agreement.

     

    “Standard
      & Poor’s”: Standard & Poor’s Ratings Services, a division of
      The McGraw-Hill Companies, Inc., and its successors in interest. If
      Standard & Poor’s is designated as a Rating Agency in the Preliminary
      Statement, for purposes of Section 10.05(b) the address for notices to
      Standard & Poor’s shall be Standard & Poor’s, 55 Water Street, New York,
      New York 10041, Attention: Residential Mortgage Surveillance Group - Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1, or such other address as
      Standard & Poor’s may hereafter furnish to the Depositor, the Trustee and
      the Servicers.

     

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

     

    “Startup
      Day”: The Closing Date.

     

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

     

    “Stepdown
      Date”: The later to occur of (i) the earlier to occur of (a) the
      Distribution Date in February 2010 and (b) the Distribution Date following
      the Distribution Date on which the aggregate Class Certificate Balances of
      the
      Class A Certificates have been reduced to zero and (ii) the first
      Distribution Date on which the Senior Enhancement Percentage (calculated for
      this purpose only after taking into account payments of principal on the
      Mortgage Loans applied to reduce the Stated Principal Balances of the Mortgage
      Loans for the applicable Distribution Date but prior to any allocation of the
      Principal Distribution Amount and principal payments from the Swap Account
      to
      the Certificates on such Distribution Date) is greater than or equal to the
      Senior Specified Enhancement Percentage.

     

    “Subcontractor”:
      Any third-party or Affiliated vendor, subcontractor or other Person utilized
      by
      a Servicer, a Subservicer or the Trustee, as applicable, that is not responsible
      for the overall servicing (as “servicing” is commonly understood by participants
      in the mortgage-backed securities market) of Mortgage Loans but performs one
      or
      more discrete functions identified in Item 1122(d) of Regulation AB with respect
      to Mortgage Loans. With respect to Countrywide Servicing, “Subcontractor” shall
      have the meaning set forth in the Countrywide Amendment Regulation
      AB.

     

    “Subordinated
      Amount”: With respect to any Distribution Date, the excess, if any, of
      (a) the aggregate Stated Principal Balance of the Mortgage Loans for such
      Distribution Date over (b) the aggregate of the Class Certificate Balances
      of the Offered Certificates and the Class P Certificates as of such Distribution
      Date (after giving effect to the payment of the Principal Remittance Amount
      on
      such Certificates on such Distribution Date).

     

    “Subordinated
      Certificates”: As specified in the Preliminary Statement.

     

    “Subordination
      Deficiency”: With respect to any Distribution Date, the excess, if any, of
      (a) the Specified Subordinated Amount applicable to such Distribution Date
      over (b) the Subordinated Amount applicable to such Distribution
      Date.

     

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

     

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

     

    “Subservicer”:
      Any Person that services Mortgage Loans on behalf of a Servicer or any
      Subservicer and is responsible for the performance (whether directly or through
      Subservicers or Subcontractors) of a substantial portion of the material
      servicing functions required to be performed by a Servicer under this Agreement,
      with respect to some or all of the Mortgage Loans, that are identified in Item
      1122(d) of Regulation AB. With respect to Countrywide Servicing, “Subservicer”
shall have the meaning set forth in the Countrywide Amendment Regulation
      AB.

     

    “Subservicing
      Account”: As defined in Section 3.08.

     

    “Subservicing
      Agreements”: As defined in Section 3.02(a).

     

    “Substitute
      Mortgage Loan”: A Mortgage Loan (i) substituted by the Depositor or the
      Responsible Party for a Deleted Mortgage Loan that satisfies the criteria set
      forth in the definition of “Qualified Substitute Mortgage Loan” in the Purchase
      Agreement or (ii) substituted by the Depositor for a Deleted Mortgage Loan,
      which, if substituted by the Depositor, must, on the date of such substitution,
      as confirmed in a Request for Release, substantially in the form of Exhibit
      J,
      (a) have a Stated Principal Balance, after deduction of the principal portion
      of
      the Scheduled Payment due in the month of substitution, not in excess of, and
      not more than 10% less than, the Stated Principal Balance of the Deleted
      Mortgage Loan; (b) be accruing interest at a rate no lower than and not more
      than 1% per annum higher than, that of the Deleted Mortgage Loan; (c) have
      a
      Loan-to-Value Ratio or a Combined Loan-to-Value Ratio, as applicable, no higher
      than that of the Deleted Mortgage Loan; (d) have a remaining term to maturity
      no
      greater than (and not more than one year less than that of) the Deleted Mortgage
      Loan; and (e) comply with each applicable representation and warranty set forth
      in Section 2.03 and in the Representations and Warranties
      Agreement.

     

    “Substitution
      Adjustment Amount”: As defined in Section 2.03.

     

    “Supplemental
      Interest Trust”: A separate trust established hereby into which the Depositor
      shall deposit the Interest Rate Swap Agreement and the Interest Rate Cap
      Agreement.

     

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

     

    “Swap
      Account”: As defined in Section 4.06.

     

    “Swap
      Assets”:
      Collectively, the Swap Account, the Interest Rate Swap Agreement, REMIC VI
      Regular Interest Swap-IO and the right to receive Class IO Shortfalls, subject
      to the obligation to pay amounts specified in Section 4.06.

     

    “Swap
      LIBOR”: With respect to any Distribution Date (and the related Interest Accrual
      Period), the product of (i) USD-LIBOR-BBA (as used in the Interest Swap
      Agreement), (ii)  two, and (iii) the quotient of (a) the actual
      number of days in the Interest Accrual Period for the Offered Certificates
      divided by (b) 30.

     

    “Swap
      Payment Allocation”: For any Class of Certificates and any Distribution Date,
      that Class’s pro
      rata
      share of
      the Net Swap Receipts, if any, for that Distribution Date, based on the Class
      Certificate Balances of the Classes of Certificates.

     

    “Swap
      Payment Rate”: For any Distribution Date, a fraction, the numerator of which is
      any Net Swap Payment and Swap Termination Payment (other than a Defaulted Swap
      Termination Payment) owed to the Swap Provider for such Distribution Date and
      the denominator of which is the aggregate Stated Principal Balance of the
      Mortgage Loans at the beginning of the related Due Period, multiplied by
      12.

     

    “Swap
      Provider”: Morgan Stanley Capital Services Inc., a Delaware corporation, and its
      successors in interest.

     

    “Swap
      Termination Payment”:
      Any
      payment payable by the Supplemental Interest Trust or the Swap Provider upon
      termination of the Interest Rate Swap Agreement as a result of an Event of
      Default (as defined in the Interest Rate Swap Agreement) or a Termination Event
      (as defined in the Interest Rate Swap Agreement).

     

    “Tax
      Matters Person”:
      The
      Holder of the Class R Certificates designated as “tax matters person” of REMIC
      I, REMIC II and REMIC III in the manner provided under Treasury Regulations
      Section 1.860F-4(d) and Treasury Regulations Section 301.6231(a)(7)-1. The
      Holder of the Class R-X Certificates designated as “tax matters person” of REMIC
      IV, REMIC V and REMIC VI in the manner provided under Treasury Regulations
      Section 1.860F-4(d) and Treasury Regulations Section
      301.6231(a)(7)-1.

     

    “Tax
      Service Contract”: As defined in Section 3.09(a).

     

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

     

    “Total
      Monthly Excess Spread”: As to any Distribution Date, an amount equal to the
      excess if any, of (i) the interest on the Mortgage Loans received by the
      Servicers on or prior to the related Determination Date (other than Prepayment
      Interest Excess) or advanced by the Servicers for the related Remittance Date
      (net of Expense Fees) over (ii) the sum of (A) the amounts payable to
      the Certificates pursuant to Section 4.02(a)(i) on such Distribution
      Date, (B) any Net Swap Payments to the Swap Provider and (C) any Swap
      Termination Payment (other than a Defaulted Swap Termination Payment that is
      not
      a Senior Defaulted Swap Termination Payment) to the Swap Provider.

     

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

     

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

     

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

     

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

     

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

     

    “Trust
      Fund”: The corpus of the trust created hereunder consisting of (i) the Mortgage
      Loans and all principal outstanding as the close of business on the Cut-off
      Date
      (after giving effect to payments of principal due on or prior to the Cut-off
      Date, whether or not received) and interest due and accrued on the Mortgage
      Loan
      after the Cut-off Date (or, if the Due Date for any Mortgage Loan is other
      than
      on the first day of the month, after the Due Date immediately preceding the
      Cut-off Date); (ii) the Collection Accounts, the Excess Reserve Fund Account,
      the Distribution Account, and all amounts deposited therein pursuant to the
      applicable provisions of this Agreement; (iii) property that secured a Mortgage
      Loan and has been acquired by foreclosure, deed-in-lieu of foreclosure or
      otherwise; (iv) the Closing Date Deposit Amount; (v) the Interest Rate Swap
      Agreement; (vi) the Swap Assets; (vii) the Depositor’s rights under the
      Representations and Warranties Agreement; (viii) the Interest Rate Cap
      Agreement; and (ix) all proceeds of the conversion, voluntary or involuntary,
      of
      any of the foregoing.

     

    “Trust
      REMIC”: Any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC
      VI.

     

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

     

    “Trustee
      Fee”: As to any Distribution Date, an amount equal to the product of (a)
      one-twelfth of the Trustee Fee Rate and (b) (i) the aggregate Stated Principal
      Balance of the Mortgage Loans as of the close of business on the date
      immediately preceding the related Due Period and (ii) with respect to the
      Distribution Date in February 2007 only, the portion of the Closing Date Deposit
      Amount allocable to principal.

     

    “Trustee
      Fee Rate”: With respect to each Mortgage Loan, 0.0036% per annum.

     

    “Trustee
      Float Period”: With respect to the Distribution Date and the related amounts in
      the Distribution Account, the period commencing on the Business Day immediately
      preceding such Distribution Date and ending on such Distribution
      Date.

     

    “Uncertificated
      Accrued Interest”: With respect to each Uncertificated REMIC Regular Interest on
      each Distribution Date, an amount equal to one month’s interest at the related
      Uncertificated Pass-Through Rate on the Uncertificated Principal Balance of
      such
      REMIC Regular Interest. In each case, Uncertificated Accrued Interest will
      be
      reduced by any Prepayment Interest Shortfalls and shortfalls resulting from
      application of the Relief Act (allocated to such REMIC Regular Interests as
      set
      forth in Section 8.14).

     

    “Uncertificated
      Notional Amount”: With respect to REMIC II Regular Interest LT-IO and each
      Distribution Date listed below, the aggregate Uncertificated Principal Balance
      of the REMIC 1 Regular Interests ending with the designation “A” listed below:

     

    

      
        	
                Distribution
                  Date

              	
                REMIC
                  I Regular Interests

              
	
                1st
                  through 12th 

              	
                I-1-A
                  through I-61-A and II-1-A through II-61-A

              
	
                13

              	
                I-2-A
                  through I-61-A and II-2-A through II-61-A

              
	
                14

              	
                I-3-A
                  through I-61-A and II-3-A through II-61-A

              
	
                15

              	
                I-4-A
                  through I-61-A and II-4-A through II-61-A

              
	
                16

              	
                I-5-A
                  through I-61-A and II-5-A through II-61-A

              
	
                17

              	
                I-6-A
                  through I-61-A and II-6-A through II-61-A

              
	
                18

              	
                I-7-A
                  through I-61-A and II-7-A through II-61-A

              
	
                19

              	
                I-8-A
                  through I-61-A and II-8-A through II-61-A

              
	
                20

              	
                I-9-A
                  through I-61-A and II-9-A through II-61-A

              
	
                21

              	
                I-10-A
                  through I-61-A and II-10-A through II-61-A

              
	
                22

              	
                I-11-A
                  through I-61-A and II-11-A through II-61-A

              
	
                23

              	
                I-12-A
                  through I-61-A and II-12-A through II-61-A

              
	
                24

              	
                I-13-A
                  through I-61-A and II-13-A through II-61-A

              
	
                25

              	
                I-14-A
                  through I-61-A and II-14-A through II-61-A

              
	
                26

              	
                I-15-A
                  through I-61-A and II-15-A through II-61-A

              
	
                27

              	
                I-16-A
                  through I-61-A and II-16-A through II-61-A

              
	
                28

              	
                I-17-A
                  through I-61-A and II-17-A through II-61-A

              
	
                29

              	
                I-18-A
                  through I-61-A and II-18-A through II-61-A

              
	
                30

              	
                I-19-A
                  through I-61-A and II-19-A through II-61-A

              
	
                31

              	
                I-20-A
                  through I-61-A and II-20-A through II-61-A

              
	
                32

              	
                I-21-A
                  through I-61-A and II-21-A through II-61-A

              
	
                33

              	
                I-22-A
                  through I-61-A and II-22-A through II-61-A

              
	
                34

              	
                I-23-A
                  through I-61-A and II-23-A through II-61-A

              
	
                35

              	
                I-24-A
                  through I-61-A and II-24-A through II-61-A

              
	
                36

              	
                I-25-A
                  through I-61-A and II-25-A through II-61-A

              
	
                37

              	
                I-26-A
                  through I-61-A and II-26-A through II-61-A

              
	
                38

              	
                I-27-A
                  through I-61-A and II-27-A through II-61-A

              
	
                39

              	
                I-28-A
                  through I-61-A and II-28-A through II-61-A

              
	
                40

              	
                I-29-A
                  through I-61-A and II-29-A through II-61-A

              
	
                41

              	
                I-30-A
                  through I-61-A and II-30-A through II-61-A

              
	
                42

              	
                I-31-A
                  through I-61-A and II-31-A through II-61-A

              
	
                43

              	
                I-32-A
                  through I-61-A and II-32-A through II-61-A

              
	
                44

              	
                I-33-A
                  through I-61-A and II-33-A through II-61-A

              
	
                45

              	
                I-34-A
                  through I-61-A and II-34-A through II-61-A

              
	
                46

              	
                I-35-A
                  through I-61-A and II-35-A through II-61-A

              
	
                47

              	
                I-36-A
                  through I-61-A and II-36-A through II-61-A

              
	
                48

              	
                I-37-A
                  through I-61-A and II-37-A through II-61-A

              
	
                49

              	
                I-38-A
                  through I-61-A and II-38-A through II-61-A

              
	
                50

              	
                I-39-A
                  through I-61-A and II-39-A through II-61-A

              
	
                51

              	
                I-40-A
                  through I-61-A and II-40-A through II-61-A

              
	
                52

              	
                I-41-A
                  through I-61-A and II-41-A through II-61-A

              
	
                53

              	
                I-42-A
                  through I-61-A and II-42-A through II-61-A

              
	
                54

              	
                I-43-A
                  through I-61-A and II-43-A through II-61-A

              
	
                55

              	
                I-44-A
                  through I-61-A and II-44-A through II-61-A

              
	
                56

              	
                I-45-A
                  through I-61-A and II-45-A through II-61-A

              
	
                57

              	
                I-46-A
                  through I-61-A and II-46-A through II-61-A

              
	
                58

              	
                I-47-A
                  through I-61-A and II-47-A through II-61-A

              
	
                59

              	
                I-48-A
                  through I-61-A and II-48-A through II-61-A

              
	
                60

              	
                I-49-A
                  through I-61-A and II-49-A through II-61-A

              
	
                61

              	
                I-50-A
                  through I-61-A and II-50-A through II-61-A

              
	
                62

              	
                I-51-A
                  through I-61-A and II-51-A through II-61-A

              
	
                63

              	
                I-52-A
                  through I-61-A and II-52-A through II-61-A

              
	
                64

              	
                I-53-A
                  through I-61-A and II-53-A through II-61-A

              
	
                65

              	
                I-54-A
                  through I-61-A and II-54-A through II-61-A

              
	
                66

              	
                I-55-A
                  through I-61-A and II-55-A through II-61-A

              
	
                67

              	
                I-56-A
                  through I-61-A and II-56-A through II-61-A

              
	
                68

              	
                I-57-A
                  through I-61-A and II-57-A through II-61-A

              
	
                69

              	
                I-58-A
                  through I-61-A and II-58-A through II-61-A

              
	
                70

              	
                I-59-A
                  through I-61-A and II-59-A through II-61-A

              
	
                71

              	
                I-60-A
                  and I-61-A and II-60-A and II-61-A

              
	
                72

              	
                I-61-A
                  and II-61-A

              
	
                thereafter

              	
                $0.00

              

      

    

    

    With
      respect to the Class IO Interest and any Distribution Date, an amount equal
      to
      the Uncertificated Notional Amount of the REMIC II Regular Interest
      LT-IO.

     

    “Uncertificated
      Principal Balance”: With respect to each REMIC Regular Interest (other than
      REMIC II Regular Interest LT-IO), the principal amount of such REMIC Regular
      Interest outstanding as of any date of determination. As of the Closing Date,
      the Uncertificated Principal Balance of each such REMIC Regular Interest shall
      equal the amount set forth in the Preliminary Statement hereto as its initial
      Uncertificated Principal Balance. On each Distribution Date, the Uncertificated
      Principal Balance of each REMIC Regular Interest shall be reduced by all
      distributions of principal made on such REMIC Regular Interest on such
      Distribution Date pursuant to Section 8.14 and, if and to the extent necessary
      and appropriate, shall be further reduced on such Distribution Date by Realized
      Losses as provided in Section 8.14. The Uncertificated Principal Balance of
      each
      REMIC Regular Interest shall never be less than zero.

     

    “Uncertificated
      Pass-Through Rate”: The Uncertificated REMIC I Pass-Through Rate or
      Uncertificated REMIC II Pass-Through Rate.

     

    “Uncertificated
      REMIC I Pass-Through Rate”: With respect to REMIC I Regular Interest I, a per
      annum rate equal to the weighted average Adjusted Net Mortgage Rate of the
      Group
      I Mortgage Loans. With respect to each REMIC I Group I Regular Interest ending
      with the designation “A”, a per annum rate equal to the weighted average
      Adjusted Net Mortgage Rate of the Group I Mortgage Loans multiplied by 2,
      subject to a maximum rate of 10.100%. With respect to each REMIC I Regular
      Interest ending with the designation “B”, the greater of (x) a per annum rate
      equal to the excess, if any, of (i) 2 multiplied by the weighted average
      Adjusted Net Mortgage Rate of the Group I Mortgage Loans over (ii) 10.100%
      and
      (y) 0.00%. With respect to REMIC I Regular Interest II, a per annum rate equal
      to the weighted average Adjusted Net Mortgage Rate of the Group II Mortgage
      Loans. With respect to each REMIC I Group II Regular Interest ending with the
      designation “A”, a per annum rate equal to the weighted average Adjusted Net
      Mortgage Rate of the Group II Mortgage Loans multiplied by 2, subject to a
      maximum rate of 10.100%. With respect to each REMIC I Group II Regular Interest
      ending with the designation “B”, the greater of (x) a per annum rate equal to
      the excess, if any, of (i) 2 multiplied by the weighted average Adjusted Net
      Mortgage Rate of the Group II Mortgage Loans over (ii) 10.100% and (y)
      0.00%.

     

    “Uncertificated
      REMIC II Pass-Through Rate”: With respect to REMIC II Regular Interest LT-AA,
      REMIC II Regular Interest LT-A1, REMIC II Regular Interest LT-A2a, REMIC II
      Regular Interest LT-A2b, REMIC II Regular Interest LT-A2c, REMIC II Regular
      Interest LT-A2d, REMIC II Regular Interest LT-M1, REMIC II Regular Interest
      LT-M2, REMIC II Regular Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC
      II Regular Interest LT-M5, REMIC II Regular Interest LT-M6, REMIC II Regular
      Interest LT-B1, REMIC II Regular Interest LT-B2, REMIC II Regular Interest
      LT-B3, REMIC II Regular Interest LT-B4, REMIC II Regular Interest LT-ZZ, REMIC
      II Regular Interest LT-1SUB, REMIC II Regular Interest LT-2SUB, and REMIC II
      Regular Interest LT-XX, a
      per
      annum rate (but not less than zero) equal to the weighted average of (w) with
      respect to REMIC I Regular Interest I, REMIC I Regular Interest II, the
      Uncertificated REMIC I Pass-Through Rate for such REMIC I Regular Interest
      for
      each such Distribution Date, (x) with respect to REMIC I Regular Interests
      ending with the designation “B”, the weighted average of the Uncertificated
      REMIC I Pass-Through Rates for such REMIC I Regular Interests, weighted on
      the
      basis of the Uncertificated Principal Balance of such REMIC I Regular Interests
      for each such Distribution Date and (y) with respect to REMIC I Regular
      Interests ending with the designation “A”, for each Distribution Date listed
      below, the weighted average of the rates listed below for each such REMIC I
      Regular Interest listed below, weighted on the basis of the Uncertificated
      Principal Balance of each such REMIC I Regular Interest for each such
      Distribution Date: 

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            
	
              1st
                through 11th 

            	
              I-1-A
                through I-61-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-61-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              12

            	
              I-1-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	
              13

            	
              I-2-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-2-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate Uncertificated
                REMIC I
                Pass-Through Rate

            
	 	
              I-1-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              14

            	
              I-3-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-3-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                and I-2-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                and II-2-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              15

            	
              I-4-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-4-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-3-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-3-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              16

            	
              I-5-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-5-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-4-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-4-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              17

            	
              I-6-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-6-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-5-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-5-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              18

            	
              I-7-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-7-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-6-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-6-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              19

            	
              I-8-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-8-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-7-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-7-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              20

            	
              I-9-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-9-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-8-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-8-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              21

            	
              I-10-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-10-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-9-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-9-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              22

            	
              I-11-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-11-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-10-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-10-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              23

            	
              I-12-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-12-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-11-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-11-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              24

            	
              I-13-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-13-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-12-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-12-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              25

            	
              I-14-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-14-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-13-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-13-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              26

            	
              I-15-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-15-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-14-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-14-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              27

            	
              I-16-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-16-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-15-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-15-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              28

            	
              I-17-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-17-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-16-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-16-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              29

            	
              I-18-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-18-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-17-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-17-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              30

            	
              I-19-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-19-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-18-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-18-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              31

            	
              I-20-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-20-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-19-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-19-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              32

            	
              I-21-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-21-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-20-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-20-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              33

            	
              I-22-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-22-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-21-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-21-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              34

            	
              I-23-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-23-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-22-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-22-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              35

            	
              I-24-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-24-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-23-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-23-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              36

            	
              I-25-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-25-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-24-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-24-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              37

            	
              I-26-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-26-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-25-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-25-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              38

            	
              I-27-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-27-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-26-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-26-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              39

            	
              I-28-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-28-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-27-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-27-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              40

            	
              I-29-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-29-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-28-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-28-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              41

            	
              I-30-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-30-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-29-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-29-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              42

            	
              I-31-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-31-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-30-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-30-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              43

            	
              I-32-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-32-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-31-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-31-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              44

            	
              I-33-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-33-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-32-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-32-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              45

            	
              I-34-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-34-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-33-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-33-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              46

            	
              I-35-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-35-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-34-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-34-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              47

            	
              I-36-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-36-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-35-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-35-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              48

            	
              I-37-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-37-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-36-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-36-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              49

            	
              I-38-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-38-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-37-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-37-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              50

            	
              I-39-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-39-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-38-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-38-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              51

            	
              I-40-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-40-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-39-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-39-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              52

            	
              I-41-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-41-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-40-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-40-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              53

            	
              I-42-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-42-A
                through II-41-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-41-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-21-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              54

            	
              I-43-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-43-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-42-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-42-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              55

            	
              I-44-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-44-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-43-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-43-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              56

            	
              I-45-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-45-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-44-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-44-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              57

            	
              I-46-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-46-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-45-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-45-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              58

            	
              I-47-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-47-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-46-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-46-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              59

            	
              I-48-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-48-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-47-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-47-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              60

            	
              I-49-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-49-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-48-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-48-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              61

            	
              I-50-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-50-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-49-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-49-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              62

            	
              I-51-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-51-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-50-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-50-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              63

            	
              I-52-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-52-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-51-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-51-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              64

            	
              I-53-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-53-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-52-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-52-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              65

            	
              I-54-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-54-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-53-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-53-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              66

            	
              I-55-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-55-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-54-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-54-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              67

            	
              I-56-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-56-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-55-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-55-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              68

            	
              I-57-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-57-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-56-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-56-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              69

            	
              I-58-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-58-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-57-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-57-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              70

            	
              I-59-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-59-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-58-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-58-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              71

            	
              I-60-A
                and I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-60-A
                and II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-59-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-59-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              72

            	
              I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-61-A
                

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-60-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-60-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              thereafter

            	
              I-1-A
                through I-61-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-61-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            

    

    

    With
      respect to REMIC II Regular Interest LT-1GRP, a per annum rate (but not less
      than zero) equal to the weighted average of (w) with respect to REMIC I Regular
      Interest I, the Uncertificated REMIC I Pass-Through Rate for such REMIC I
      Regular Interest for each such Distribution Date, (x) with respect to REMIC
      I
      Group I Regular Interests ending with the designation “B”, the weighted average
      of the Uncertificated REMIC I Pass-Through Rates for such REMIC I Regular
      Interests, weighted on the basis of the Uncertificated Principal Balance of
      each
      such REMIC I Regular Interest for each such Distribution Date and (y) with
      respect to REMIC I Group I Regular Interests ending with the designation “A”,
      for each Distribution Date listed below, the weighted average of the rates
      listed below for such REMIC I Regular Interests listed below, weighted on the
      basis of the Uncertificated Principal Balance of each such REMIC I Regular
      Interest for each such Distribution Date: 

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            
	
              1st
                through 11th 

            	
              I-1-A
                through I-61-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              12

            	
              I-1-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              13

            	
              I-2-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              14

            	
              I-3-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                and I-2-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              15

            	
              I-4-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-3-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              16

            	
              I-5-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-4-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              17

            	
              I-6-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-5-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              18

            	
              I-7-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-6-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              19

            	
              I-8-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-7-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              20

            	
              I-9-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-8-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              21

            	
              I-10-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-9-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              22

            	
              I-11-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-10-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              23

            	
              I-12-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-11-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              24

            	
              I-13-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-12-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              25

            	
              I-14-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-13-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              26

            	
              I-15-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-14-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              27

            	
              I-16-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-15-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              28

            	
              I-17-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-16-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              29

            	
              I-18-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-17-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              30

            	
              I-19-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-18-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              31

            	
              I-20-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-19-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              32

            	
              I-21-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-20-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              33

            	
              I-22-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-21-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              34

            	
              I-23-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-22-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              35

            	
              I-24-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-23-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              36

            	
              I-25-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-24-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              37

            	
              I-26-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-25-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              38

            	
              I-27-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-26-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              39

            	
              I-28-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-27-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              40

            	
              I-29-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-28-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              41

            	
              I-30-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-29-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              42

            	
              I-31-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-30-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              43

            	
              I-32-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-31-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              44

            	
              I-33-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-32-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              45

            	
              I-34-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-33-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              46

            	
              I-35-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-34-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              47

            	
              I-36-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-35-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              48

            	
              I-37-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-36-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              49

            	
              I-38-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-37-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              50

            	
              I-39-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-38-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              51

            	
              I-40-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-39-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              52

            	
              I-41-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-40-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              53

            	
              I-42-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-41-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              54

            	
              I-43-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-42-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              55

            	
              I-44-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-43-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              56

            	
              I-45-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-44-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              57

            	
              I-46-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-45-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              58

            	
              I-47-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-46-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              59

            	
              I-48-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-47-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              60

            	
              I-49-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-48-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              61

            	
              I-50-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-49-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              62

            	
              I-51-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-50-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              63

            	
              I-52-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-51-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              64

            	
              I-53-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-52-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              65

            	
              I-54-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-53-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              66

            	
              I-55-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-54-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              67

            	
              I-56-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-55-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              68

            	
              I-57-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-56-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              69

            	
              I-58-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-57-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              70

            	
              I-59-A
                through I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-58-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              71

            	
              I-60-A
                and I-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-59-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              72

            	
              I-61-A
                

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              I-1-A
                through I-60-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              thereafter

            	
              I-1-A
                through I-61-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            

    

    

    With
      respect to REMIC II Regular Interest LT-2GRP, a per annum rate (but not less
      than zero) equal to the weighted average of (w) with respect to REMIC I Regular
      Interest II, the Uncertificated REMIC I Pass-Through Rate for such REMIC I
      Regular Interest for each such Distribution Date, (x) with respect to REMIC
      I
      Group II Regular Interests ending with the designation “B”, the weighted average
      of the Uncertificated REMIC I Pass-Through Rates for such REMIC I Regular
      Interests, weighted on the basis of the Uncertificated Principal Balance of
      each
      such REMIC I Regular Interest for each such Distribution Date and (y) with
      respect to REMIC I Group II Regular Interests ending with the designation “A”,
      for each Distribution Date listed below, the weighted average of the rates
      listed below for such REMIC I Regular Interests listed below, weighted on the
      basis of the Uncertificated Principal Balance of each such REMIC I Regular
      Interest for each such Distribution Date: 

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            
	
              1st
                through 11th 

            	
              II-1-A
                through II-61-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              12

            	
              II-1-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              13

            	
              II-2-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              14

            	
              II-3-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                and II-2-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              15

            	
              II-4-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-3-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              16

            	
              II-5-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-4-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              17

            	
              II-6-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-5-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              18

            	
              II-7-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-6-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              19

            	
              II-8-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-7-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              20

            	
              II-9-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-8-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              21

            	
              II-10-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-9-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              22

            	
              II-11-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-10-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              23

            	
              II-12-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-11-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              24

            	
              II-13-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-12-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              25

            	
              II-14-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-13-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              26

            	
              II-15-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-14-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              27

            	
              II-16-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-15-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              28

            	
              II-17-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-16-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              29

            	
              II-18-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-17-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              30

            	
              II-19-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-18-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              31

            	
              II-20-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-19-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              32

            	
              II-21-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-20-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              33

            	
              II-22-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-21-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              34

            	
              II-23-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-22-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              35

            	
              II-24-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-23-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              36

            	
              II-25-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-24-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              37

            	
              II-26-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-25-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              38

            	
              II-27-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-26-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              39

            	
              II-28-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-27-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              40

            	
              II-29-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-28-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              41

            	
              II-30-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-29-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              42

            	
              II-31-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-30-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              43

            	
              II-32-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-31-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              44

            	
              II-33-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-32-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              45

            	
              II-34-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-33-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              46

            	
              II-35-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-34-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              47

            	
              II-36-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-35-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              48

            	
              II-37-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-36-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              59

            	
              II-38-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-37-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              50

            	
              II-39-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-38-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              51

            	
              II-40-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-39-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              52

            	
              II-41-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-40-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              53

            	
              II-42-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-41-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              54

            	
              II-43-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-42-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              55

            	
              II-44-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-43-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              56

            	
              II-45-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-44-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              57

            	
              II-46-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-45-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              58

            	
              II-47-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-46-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              59

            	
              II-48-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-47-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              60

            	
              II-49-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-48-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              61

            	
              II-50-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-49-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              62

            	
              II-51-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-50-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              63

            	
              II-52-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-51-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              64

            	
              II-53-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-52-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              65

            	
              II-54-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-53-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              66

            	
              II-55-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-54-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              67

            	
              II-56-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-55-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              68

            	
              II-57-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-56-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              69

            	
              II-58-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-57-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              70

            	
              II-59-A
                through II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-58-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              71

            	
              II-60-A
                and II-61-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-59-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              72

            	
              II-61-A
                

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                REMIC I Pass-Through Rate

            
	 	
              II-1-A
                through II-60-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	 	 	 
	
              thereafter

            	
              II-1-A
                through II-61-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            

    

    

    With
      respect to REMIC II Regular Interest LT-IO, and (i) the 1st Distribution Date
      through the 11th Distribution Date, the excess of (x) the weighted average
      of
      the Uncertificated REMIC I Pass-Through Rates for REMIC I Regular Interests
      including the designation “A”, over (y) the weighted average of the
      Uncertificated REMIC I Pass-Through Rates for REMIC I Regular Interests
      including the designation “A”, (ii) the 12th Distribution Date through the 72nd
      Distribution Date, the excess of (x) the weighted average of the Uncertificated
      REMIC I Pass-Through Rates for REMIC I Regular Interests including the
      designation “A”, over (y) 2 multiplied by Swap LIBOR and (iii) thereafter,
      0.00%. 

    

    “Uncertificated
      REMIC Regular Interest”: The REMIC I Regular Interests, the REMIC II Regular
      Interests, the Class IO Interest, the Class X Interest, the Class P Interest
      and
      the REMIC VI Regular Interest Swap-IO.

     

    “Underwriters’
      Exemption”: Any exemption listed under footnote 1 of, and amended by, Prohibited
      Transaction Exemption 2002-41, 67 Fed. Reg. 54487 (2002), or any successor
      exemption.

     

    “Underwriting
      Guidelines”: The underwriting guidelines attached to the Purchase
      Agreement.

     

    “Unpaid
      Interest Amount”: As of any Distribution Date and any Class of Certificates, the
      sum of (a) the portion of the Accrued Certificate Interest Distribution
      Amount from Distribution Dates prior to the current Distribution Date remaining
      unpaid immediately prior to the current Distribution Date and (b) interest
      on the amount in clause (a) above at the applicable Pass-Through Rate
      (to the extent permitted by applicable law).

     

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

     

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

     

    “Voting
      Rights”: The portion of the voting rights of all of the Certificates which is
      allocated to any Certificate. As of any date of determination, (a) 1% of
      all Voting Rights shall be allocated to the Class X Certificates, if any
      (such Voting Rights to be allocated among the Holders of Certificates of each
      such Class in accordance with their respective Percentage Interests),
      (b) 1% of all Voting Rights shall be allocated to the Class P
      Certificates, if any, and (c) the remaining Voting Rights shall be
      allocated among Holders of the remaining Classes of Certificates in proportion
      to the Certificate Balances of their respective Certificates on such
      date.

     

    “WAC
      Cap”: With respect to the Mortgage Loans as of any Distribution Date, the
      weighted average of the Adjusted Net Mortgage Rates then in effect on the
      beginning of the related Due Period on the Mortgage Loans minus the Swap Payment
      Rate, adjusted in each case to accrue on the basis of a 360-day year and the
      actual number of days in the related Interest Accrual Period. For federal income
      tax purposes, the equivalent of the foregoing shall be expressed as a per annum
      rate equal to the weighted average (adjusted for the actual number of days
      elapsed in the related Accrual Period) of the Uncertificated REMIC II
      Pass-Through Rate on REMIC II Regular Interest LT-1SUB and REMIC II Regular
      Interest LT-2SUB, in each case as determined for such Distribution Date,
      weighted on the basis of the Uncertificated Principal Balance of each such
      REMIC
      II Regular Interest immediately prior to such Distribution Date.

     

     

     

    ARTICLE
      II  

    CONVEYANCE
      OF MORTGAGE LOANS;

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      2.01  Conveyance
      of Mortgage Loans.
      (a)  The
      Depositor, concurrently with the execution and delivery hereof, hereby sells,
      transfers, assigns, sets over and otherwise conveys to the Trustee for the
      benefit of the Certificateholders, without recourse, all the right, title and
      interest of the Depositor in and to the Trust Fund, and the Trustee, on behalf
      of the Trust, hereby accepts the Trust Fund.
      On the
      Closing Date, the Depositor shall pay, without any right of reimbursement from
      the Trust, to the Cap Provider the “Fixed Amount” (as defined in the Interest
      Rate Cap Agreement) due and payable to the Cap Provider pursuant to the terms
      of
      the Interest Rate Cap Agreement.

     

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

     

    (i)  the
      original Mortgage Note bearing all intervening endorsements showing a complete
      chain of endorsement from the originator to the last endorsee, endorsed “Pay to
      the order of _____________, without recourse” and signed (which may be by
      facsimile signature) in the name of the last endorsee by an authorized officer.
      To the extent that there is no room on the face of a Mortgage Note for
      endorsements, the endorsement may be contained on an allonge, unless the Trustee
      is advised in writing by the Responsible Party, that state law does not so
      allow;

     

    (ii)  the
      original of any guaranty executed in connection with the Mortgage
      Note;

     

    (iii)  the
      original Mortgage with evidence of recording thereon or a certified true copy
      of
      such Mortgage submitted for recording. If, in connection with any Mortgage
      Loan,
      the original Mortgage cannot be delivered with evidence of recording thereon
      on
      or prior to the Closing Date because of a delay caused by the public recording
      office where such Mortgage has been delivered for recordation or because such
      Mortgage has been lost or because such public recording office retains the
      original recorded Mortgage, the Responsible Party, shall deliver or cause to
      be
      delivered to the Trustee a photocopy of such Mortgage, together with (A) in
      the case of a delay caused by the public recording office, an officer’s
      certificate of the Responsible Party or evidence of certification on the face
      of
      such photocopy of such Mortgage or a certificate from an escrow company, a
      title
      company or closing attorney stating that such Mortgage has been dispatched
      to
      the appropriate public recording office for recordation and that the original
      recorded Mortgage or a copy of such Mortgage certified by such public recording
      office to be a true and complete copy of the original recorded Mortgage will
      be
      promptly delivered to the Trustee upon receipt thereof by the Responsible Party;
      or (B) in the case of a Mortgage where a public recording office retains
      the original recorded Mortgage or in the case where a Mortgage is lost after
      recordation in a public recording office, a copy of such Mortgage certified
      by
      such public recording office to be a true and complete copy of the original
      recorded Mortgage;

     

    (iv)  the
      originals of all assumption, modification, consolidation or extension
      agreements, with evidence of recording thereon or a certified true copy of
      such
      agreement submitted for recording;

     

    (v)  the
      original Assignment of Mortgage for each Mortgage Loan endorsed in
      blank;

     

    (vi)  the
      originals of all intervening assignments of Mortgage (if any) evidencing a
      complete chain of assignment from the applicable originator to the last endorsee
      with evidence of recording thereon or a certified true copy of such intervening
      assignments of Mortgage submitted for recording, or if any such intervening
      assignment has not been returned from the applicable recording office or has
      been lost or if such public recording office retains the original recorded
      assignments of Mortgage, the Responsible Party, shall deliver or cause to be
      delivered a photocopy of such intervening assignment, together with (A) in
      the case of a delay caused by the public recording office, an officer’s
      certificate of the Responsible Party or evidence of certification on the face
      of
      such photocopy of such intervening assignment or a certificate from an escrow
      company, a title company or a closing attorney stating that such intervening
      assignment of Mortgage has been dispatched to the appropriate public recording
      office for recordation and that such original recorded intervening assignment
      of
      Mortgage or a copy of such intervening assignment of Mortgage certified by
      the
      appropriate public recording office to be a true and complete copy of the
      original recorded intervening assignment of Mortgage will be promptly delivered
      to the Trustee upon receipt thereof by the Responsible Party; or (B) in the
      case of an intervening assignment where a public recording office retains the
      original recorded intervening assignment or in the case where an intervening
      assignment is lost after recordation in a public recording office, a copy of
      such intervening assignment certified by such public recording office to be
      a
      true and complete copy of the original recorded intervening
      assignment;

     

    (vii)  the
      original or a photocopy of mortgagee title insurance policy or a copy of the
      related policy binder or commitment for title issued by the title insurance
      company; and

     

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

     

    The
      Responsible Party shall cause to be delivered to the Trustee the applicable
      recorded document promptly upon receipt from the respective recording office
      but
      in no event later than 120 days from the Closing Date.

     

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

     

    On
      or
      prior to the Closing Date, the Responsible Party shall deliver to the Trustee,
      Assignments of Mortgage, in blank, for each Mortgage Loan. The Responsible
      Party
      shall cause the Assignments of Mortgage and complete recording information
      to be
      provided to the applicable Servicer in a reasonably acceptable manner. No later
      than thirty (30) Business Days following the later of the Closing Date and
      the
      date of receipt by the applicable Servicer of the complete recording information
      for a Mortgage, the applicable Servicer shall promptly submit or cause to be
      submitted for recording, at the expense of the Responsible Party and at no
      expense to the Trust Fund, the Trustee, the applicable Servicer, or the
      Depositor, in the appropriate public office for real property records, each
      Assignment of Mortgage referred to in Section 2.01(b)(v). Notwithstanding the
      foregoing, however, for administrative convenience and facilitation of servicing
      and to reduce closing costs, the Assignments of Mortgage shall not be required
      to be completed and submitted for recording with respect to any Mortgage Loan
      (i) if the Trustee and each Rating Agency have received an Opinion of Counsel,
      satisfactory in form and substance to the Trustee and each Rating Agency to
      the
      effect that the recordation of such Assignments of Mortgage in any specific
      jurisdiction is not necessary to protect the Trustee’s interest in the related
      Mortgage Note or (ii) the Rating Agencies have each notified the Depositor
      in
      writing that not recording any such Assignments of Mortgage would not cause
      the
      initial ratings on any Offered Certificates to be downgraded or withdrawn;
      provided, however, that no Servicer shall be held responsible or liable for
      any
      loss that occurs because an Assignment of Mortgage was not recorded, except
      to
      the extent the applicable Servicer has prior knowledge of the act or omission
      that causes such loss. Unless the Depositor gives the applicable Servicer notice
      to the contrary, the Depositor is deemed to have given such Servicer notice
      that
      the condition set forth in clause (ii) above is applicable. However, with
      respect to the Assignments of Mortgage referred to in clauses (i) and (ii)
      above, if foreclosure proceedings occur against a Mortgaged Property, the
      applicable Servicer shall record such Assignment of Mortgage at the expense
      of
      the Responsible Party (and at no expense to such Servicer) as required pursuant
      to the Purchase Agreement. If the Assignment of Mortgage is to be recorded,
      the
      Mortgage shall be assigned to “Deutsche Bank National Trust Company, as trustee
      under the Pooling and Servicing Agreement dated as of January 1, 2007, Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1”. In the event that any such
      Assignment of Mortgage is lost or returned unrecorded because of a defect
      therein, the Responsible Party shall promptly cause to be delivered a substitute
      Assignment of Mortgage to cure such defect and thereafter cause each such
      assignment to be duly recorded.

     

    In
      the
      event that such original or copy of any document submitted for recordation
      to
      the appropriate public recording office is not so delivered to the Trustee
      within 90 days following the Closing Date, and in the event that the Responsible
      Party does not cure such failure within 30 days of discovery or receipt of
      written notification of such failure from the Depositor, the related Mortgage
      Loan shall, upon the request of the Depositor, be repurchased by the Responsible
      Party at the price and in the manner specified in Section 2.03. The
      foregoing repurchase obligation shall not apply in the event that the
      Responsible Party cannot deliver such original or copy of any document submitted
      for recordation to the appropriate public recording office within the specified
      period due to a delay caused by the recording office in the applicable
      jurisdiction; provided,
      that
      the Responsible Party shall instead deliver a recording receipt of such
      recording office or, if such recording receipt is not available, an officer’s
      certificate of an officer of the Responsible Party, confirming that such
      document has been accepted for recording.

     

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

     

    (c)  The
      Depositor does hereby establish, pursuant to the further provisions of this
      Agreement and the laws of the State of New York, an express trust (the
“Trust”)
      to be
      known, for convenience, as “MORGAN STANLEY ABS CAPITAL I INC. TRUST 2007-NC1”
and Deutsche Bank National Trust Company is hereby appointed as Trustee in
      accordance with the provisions of this Agreement. The parties hereto acknowledge
      and agree that it is the policy and intention of the Trust to acquire only
      Mortgage Loans meeting the requirements set forth in this Agreement, including
      without limitation, the representation and warranty set forth in
      paragraph (aaa) of Schedule III. The Trust’s fiscal year is the
      calendar year.

     

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

     

    (e)  The
      Depositor shall use reasonable efforts to assist the Trustee in enforcing the
      obligations of the Sponsor under the Representations and Warranties
      Agreement.

     

    Section
      2.02  Acceptance
      by the Trustee of the Mortgage Loans.
      The
      Trustee shall acknowledge, on the Closing Date, receipt by the Trustee of the
      documents identified in the Initial Certification in the form annexed hereto
      as
      Exhibit E, and declares that it holds and will hold such documents and the
      other documents delivered to it pursuant to Section 2.01, and that it holds
      or will hold such other assets as are included in the Trust Fund, in trust
      for
      the exclusive use and benefit of all present and future Certificateholders.
      The
      Trustee shall maintain possession of the related Mortgage Notes in the State
      of
      California unless otherwise permitted by the Rating Agencies. Furthermore,
      the
      Trustee (solely in its capacity as Trustee hereunder), on behalf of the Trust,
      hereby assumes the obligations of the Depositor under the Representations and
      Warranties Agreement from and after the Closing Date and solely insofar as
      they
      relate to the Mortgage Loans.

     

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

     

    Within
      90
      days after the Closing Date, the Trustee shall, for the benefit of the Holders
      of the Certificates, ascertain that all documents identified in the Document
      Certification and Exception Report in the form attached hereto as Exhibit F
      are in its possession, and shall deliver to the Depositor and the Servicers
      a
      Document Certification and Exception Report, in the form annexed hereto as
      Exhibit F, to the effect that, as to each Mortgage Loan listed in the
      Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any
      Mortgage Loan specifically identified in such certification as an exception
      and
      not covered by such certification): (i) all documents identified in the
      Document Certification and Exception Report and required to be reviewed by
      it
      are in its possession; (ii) such documents have been reviewed by it and
      appear regular on their face and relate to such Mortgage Loan; (iii) based
      on its examination and only as to the foregoing documents, the information
      set
      forth in items (1), (2), (7) and (9) of the Mortgage Loan Schedule and
      items (1), (9) and (17) of the Data Tape Information respecting such
      Mortgage Loan accurately reflects the information set forth in the Custodial
      File; and (iv) each Mortgage Note has been endorsed as provided in
      Section 2.01 of this Agreement. The Trustee shall not be responsible to
      verify the validity, sufficiency or genuineness of any document in any Custodial
      File.

     

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

     

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

     

    Section
      2.03  Representations
      and Warranties; Remedies for Breaches of Representations and Warranties with
      Respect to the Mortgage Loans.
      (a)
      Countrywide Servicing hereby makes the representations and warranties set forth
      in Schedule II
      hereto
      to the Depositor and the Trustee, as of the dates set forth in such Schedule
      and
      Saxon hereby makes the representations and warranties set forth in Schedule
      VI
      hereto
      to the Depositor and the Trustee as of the dates set forth in such Schedule.
      Upon discovery by any of the parties hereto of a breach of any of the foregoing
      representations and warranties, the party discovering such breach shall give
      prompt written notice to the other.

     

    (b)  The
      Responsible Party hereby makes the representations and warranties, set forth
      in
Schedule III
      and
Schedule IV
      hereto,
      to the Depositor, the Servicers and the Trustee as of the dates set forth in
      such Schedules.

     

    (c)  The
      Depositor hereby makes the representations and warranties set forth in
Schedule
      V
      hereto
      to the Trustee as of the dates set forth in such Schedule.

     

    (d)  It
      is
      understood and agreed by the parties hereto that the representations and
      warranties set forth in this Section 2.03 shall survive the transfer of the
      Mortgage Loans by the Depositor to the Trustee, and shall inure to the benefit
      of the parties to whom the representations and warranties were made
      notwithstanding any restrictive or qualified endorsement on any Mortgage Note
      or
      Assignment of Mortgage or the examination or failure to examine any Mortgage
      File. Upon discovery by any of the parties to this Agreement of a breach of
      any
      of the foregoing representations and warranties that materially and adversely
      affect the value of any Mortgage Loan or the interest of the Trustee or the
      Certificateholders therein, the party discovering such breach shall give prompt
      written notice to the other parties.

     

    (e)  Within
      30 days of the earlier of either discovery by or notice to the Responsible
      Party that any Mortgage Loan does not conform to the requirements as determined
      in the Trustee’s review of the related Custodial File or within 60 days of the
      earlier of either discovery by or notice to the Responsible Party of any breach
      of a representation or warranty, set forth in Section 2.03(b), that
      materially and adversely affects the value of any Mortgage Loan or the interest
      of the Trustee or the Certificateholders therein, the Responsible Party shall
      use its best efforts to cause to be remedied a material defect in a document
      constituting part of a Mortgage File or promptly to cure such breach in all
      material respects and, if such defect or breach cannot be remedied, the
      Responsible Party shall, at the Depositor’s option as specified in writing and
      provided to the Responsible Party and the Trustee, (i) if such 30 or 60 day
      period, as applicable, expires prior to the second anniversary of the Closing
      Date, remove such Mortgage Loan (a “Deleted
      Mortgage Loan”)
      from
      the Trust Fund and substitute in its place a Substitute Mortgage Loan, in the
      manner and subject to the conditions set forth in this Section 2.03; or
      (ii) repurchase such Mortgage Loan at the Repurchase Price; provided,
      however,
      that
      any such substitution pursuant to clause (i) above shall not be
      effected prior to the delivery to the Trustee of a Request for Release
      substantially in the form of Exhibit J, and the delivery of the Mortgage
      File to the Trustee for any such Substitute Mortgage Loan. Notwithstanding
      the
      foregoing, a breach (i) which causes a Mortgage Loan not to constitute a
“qualified mortgage” within the meaning of Section 860G(a)(3) of the Code
      or (ii) by the Responsible Party of any of the representations and
      warranties set forth in paragraphs (g), (i), (uu), (zz), (aaa), (eee), (fff),
      (ggg), (hhh), (iii), (jjj), (lll), (mmm), (nnn), (ooo) and (ppp) of Schedule III,
      in each
      case, will be deemed automatically to materially and adversely affect the value
      of such Mortgage Loan and the interests of the Trustee and Certificateholders
      in
      such Mortgage Loan. In the event that the Trustee receives notice of a breach
      by
      the Responsible Party of any of the representations and warranties set forth
      in
      paragraphs (g), (i), (uu), (zz), (aaa), (eee), (fff), (ggg), (hhh), (iii),
      (jjj), (lll), (mmm), (nnn), (ooo) and (ppp) of Schedule III,
      the
      Trustee shall give notice of such breach to the Responsible Party and request
      the Responsible Party to repurchase the Mortgage Loan at the Repurchase Price
      within sixty (60) days of the Responsible Party receipt of such notice. The
      Responsible Party shall repurchase each such Mortgage Loan within 60 days of
      the
      earlier of discovery or receipt of notice with respect to each such Mortgage
      Loan, and in any case such repurchase shall occur or shall be deemed to occur
      on
      the last day of the applicable Prepayment Period preceding the Distribution
      Date
      on which the Repurchase Price is to be distributed. 

     

    Notwithstanding
      the foregoing, a breach by the Depositor of any of the representations and
      warranties set forth in paragraphs (b), (c), (d) and (e) of Schedule V,
      in each
      case, will be deemed automatically to materially and adversely affect the value
      of such Mortgage Loan and the interests of the Trustee and Certificateholders
      in
      such Mortgage Loan. In the event that the Trustee receives notice of a breach
      by
      the Depositor of any representations and warranties set forth in paragraphs
      (b),
      (c), (d) and (e) of Schedule
      V,
      the
      Trustee shall notify the Depositor to repurchase the Mortgage Loan at the
      Repurchase Price within sixty (60) days of the Depositor’s receipt of such
      notice. If, by the end of such sixty (60) day period, the Depositor fails to
      repurchase such Mortgage Loan, the Trustee shall pursue all legal remedies
      available to the Trustee against the Depositor under this
      Agreement.

     

    (f)  Within
      90
      days of the earlier of either discovery by or notice to the Depositor of any
      breach of a representation or warranty set forth on Schedule III hereto that
      materially and adversely affects the value of any Mortgage Loan or the interest
      of the Trustee or the Certificateholders therein, the Depositor shall use its
      best efforts to promptly cure such breach in all material respects and, if
      such
      defect or breach cannot be remedied, the Depositor shall purchase such Mortgage
      Loan at the Repurchase Price or, if permitted hereunder, substitute a Substitute
      Mortgage Loan for such Mortgage Loan.

     

    (g)  In
      the
      event any Mortgage Loan does not conform to the requirements as determined
      in
      the Trustee’s review of the related Custodial File, the Trustee shall notify the
      Responsible Party, the Servicers, the Trustee (if applicable) and the Depositor
      by delivery of the certification of Trustee required by Section 2.02 to such
      parties, which shall be a request that the Responsible Party correct or cure
      such defect as required under this Agreement, and if the Responsible Party
      fails
      or is unable to correct or cure the defect within the period set forth in this
      Agreement, the Trustee shall notify the Depositor and the Trustee of such
      failure to correct or cure. Unless otherwise directed by the Depositor within
      five (5) Business Days after such notice to the Depositor and the Trustee of
      such failure by the Responsible Party to correct or cure, the Trustee shall
      notify the Responsible Party to repurchase the Mortgage Loan at the Repurchase
      Price or, if permitted hereunder, substitute a Substitute Mortgage Loan for
      such
      Mortgage Loan, in each case, pursuant to the terms of this Agreement, as
      applicable. If, within ten (10) Business Days of receipt of such notice by
      the
      Responsible Party, the Responsible Party fails to repurchase such Mortgage
      Loan,
      the Trustee shall notify the Depositor of such failure. The Trustee shall pursue
      all legal remedies available to the Trustee against the Responsible Party under
      this Agreement, if the Trustee has received written notice from the Depositor
      directing the Trustee to pursue such remedies.

     

    (h)  Any
      substitution of a Substitute Mortgage Loan by the Responsible Party shall be
      made in accordance with the substitution procedures set forth in the Purchase
      Agreement, which provisions shall be as set forth in such agreements as if
      they
      were set forth herein. With respect to any Substitute Mortgage Loan or Loans
      substituted by the Depositor or the Responsible Party, the Sponsor, the
      Depositor or the Responsible Party, as applicable, shall deliver to the Trustee
      for the benefit of the Certificateholders the Mortgage Note, the Mortgage,
      the
      related Assignment of Mortgage, and such other documents and agreements as
      are
      required by Section 2.01, with the Mortgage Note endorsed and the Mortgage
      assigned as required by Section 2.01. Notwithstanding anything to the contrary
      set forth in this Agreement, no substitution under this Agreement is permitted
      to be made (a) in any calendar month after the Determination Date for such
      month
      or (b) if the substitution were to be made on or after the second anniversary
      of
      the Closing Date. Scheduled Payments due with respect to Substitute Mortgage
      Loans in the Due Period of substitution shall not be part of the Trust Fund
      and
      will be retained by the Depositor or the Responsible Party, as applicable,
      on
      the next succeeding Distribution Date. For the Due Period of substitution,
      distributions to Certificateholders will include the Scheduled Payment due
      on
      any Deleted Mortgage Loan for such Due Period and thereafter the Sponsor, the
      Depositor or the Responsible Party, as applicable, shall be entitled to retain
      all amounts received in respect of such Deleted Mortgage Loan.

     

    (i)  Based
      upon information provided by the Depositor or the Responsible Party, as
      applicable, the applicable Servicer, shall include information regarding the
      removal of the Deleted Mortgage Loan and the substitution of the Substitute
      Mortgage Loan or Loans in its Servicer Remittance Report delivered to the
      Trustee pursuant to Section 4.03(d) for the Determination Date immediately
      following the receipt of such information the extent such information is
      required to be included in such Servicer Remittance Report. Upon such
      substitution, the Substitute Mortgage Loan or Loans shall be subject to the
      terms of this Agreement in all respects, and, if the substitution is made by
      the
      Sponsor or the Depositor, as applicable, the Sponsor or the Depositor, as
      applicable, shall be deemed to have made with respect to such Substitute
      Mortgage Loan or Loans, as of the date of substitution, the representations
      and
      warranties made pursuant to Section 2.03(b) with respect to such Substitute
      Mortgage Loan. Upon receipt of a Request for Release in connection with any
      such
      substitution and certification by the applicable Servicer to the Trustee that
      the deposit into the related Collection Account of the amount required to be
      deposited therein in connection with such substitution as described in the
      following paragraph, the Trustee shall release the Mortgage File held for the
      benefit of the Certificateholders relating to such Deleted Mortgage Loan to
      the
      Responsible Party and the Trustee shall execute and deliver at the direction
      of
      the Depositor or the Responsible Party, as applicable, such instruments of
      transfer or assignment prepared by the Sponsor, the Depositor or the Responsible
      Party, as applicable, in each case without recourse, representation or warranty,
      as shall be necessary to vest title in the Sponsor, the Depositor or the
      Responsible Party, as applicable, of the Trustee’s interest in any Deleted
      Mortgage Loan substituted for pursuant to this Section 2.03.

     

    (j)  For
      any
      month in which the Sponsor, the Depositor or the Responsible Party substitutes
      one or more Substitute Mortgage Loans for one or more Deleted Mortgage Loans,
      the applicable Servicer will determine the amount (if any) by which the
      aggregate unpaid principal balance of all such Substitute Mortgage Loans as
      of
      the date of substitution is less than the aggregate unpaid principal balance
      of
      all such Deleted Mortgage Loans. The amount of such shortage, plus an amount
      equal to the sum of (i) any accrued and unpaid interest on the Deleted Mortgage
      Loans and (ii) all unreimbursed Servicing Advances with respect to such Deleted
      Mortgage Loans, or the amount of any similar shortage with respect to a
      Substitute Mortgage Loan substituted by the Responsible Party under this
      Agreement (collectively, the “Substitution
      Adjustment Amount”),
      shall
      be deposited into the related Collection Account by the Sponsor, the Depositor
      or the Responsible Party, as applicable, on or before the Distribution Account
      Deposit Date for the Distribution Date following the Prepayment Period during
      which the related Mortgage Loan became required to be purchased or replaced
      hereunder.

     

    (k)  In
      addition to such repurchase or substitution obligation, the Responsible Party
      shall indemnify the Depositor and its Affiliates, the Servicers, the Sponsor,
      the Trustee and the Trust and hold such parties harmless against any losses,
      damages, penalties, fines, forfeitures, reasonable and necessary legal fees
      and
      related costs, judgments and other costs and expenses resulting from any claim,
      demand, defense or assertion based on or grounded upon, or resulting from,
      a
      breach by the Responsible Party of any of its representations and warranties
      or
      obligations contained in this Agreement.

     

    (l)  In
      the
      event that any Mortgage Loan shall have been repurchased pursuant to this
      Agreement or the Representations and Warranties Agreement, the Repurchase Price
      therefor shall be deposited by the applicable Servicer in the related Collection
      Account pursuant to Section 3.10 on or before the Distribution Account Deposit
      Date for the Distribution Date following the Prepayment Period during which
      such
      Mortgage Loan was repurchased and upon such deposit of the Repurchase Price
      and
      receipt of a Request for Release in the form of Exhibit J hereto, indicating
      such deposit, the Trustee shall release the related Custodial File held for
      the
      benefit of the Certificateholders to such Person as directed by the applicable
      Servicer, and the Trustee shall execute and deliver at such Person’s direction
      such instruments of transfer or assignment prepared by such Person, in each
      case
      without recourse, representation or warranty, as shall be necessary to transfer
      title from the Trustee.

     

    (m)  Any
      Mortgage Loan repurchased pursuant to this Section 2.03 will be removed from
      the
      Trust Fund. The applicable Servicer shall include information regarding such
      repurchase in its Servicer Remittance Report delivered to the Trustee pursuant
      to Section 4.03(d) for the Determination Date immediately following receipt
      of
      information regarding such repurchase, to the extent such information is
      required to be included in such Servicer Remittance Report. For purposes of
      determining the applicable Repurchase Price, any such repurchase shall occur
      or
      shall be deemed to occur as of the last day of the applicable Prepayment
      Period.

     

    It
      is
      understood and agreed by the parties hereto that the obligation of the Depositor
      or the Responsible Party under this Agreement to cure, repurchase or substitute
      any Mortgage Loan as to which a breach of a representation and warranty has
      occurred and is continuing, together with any related indemnification
      obligations set forth herein, shall constitute the sole remedies against such
      Persons respecting such breach available to Certificateholders, the Depositor
      (if applicable), or the Trustee on their behalf.

     

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

     

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

     

    Section
      2.05  REMIC
      Matters.
      The
      Preliminary Statement sets forth the designations for federal income tax
      purposes of all interests created hereby. The “Startup
      Day”
for
      purposes of the REMIC Provisions shall be the Closing Date. The “latest
      possible maturity date”
is
      the
      Distribution Date occurring in November 2036, which is the Distribution Date
      in
      the month following the month in which the latest maturity date of any Mortgage
      Loan occurs. For federal income tax purposes, any amount distributed on the
      Offered Certificates on any Distribution Date in respect of any Basis Risk
      CarryForward Amounts shall be treated as having been paid from the Excess
      Reserve Fund Account or the Swap Account, as applicable.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (h)  Immediately
      prior to the transfer and assignment by the Depositor to the Trustee on the
      Closing Date, the Depositor had good title to, and was the sole owner of each
      Mortgage Loan, free of any interest of any other Person, and the Depositor
      has
      transferred all right, title and interest in each Mortgage Loan to the Trustee.
      The transfer of the Mortgage Note and the Mortgage as and in the manner
      contemplated by this Agreement is sufficient either (i) fully to transfer
      to the Trustee, for the benefit of the Certificateholders, all right, title,
      and
      interest of the Depositor thereto as note holder and mortgagee or (ii) to
      grant to the Trustee, for the benefit of the Certificateholders, the security
      interest referred to in Section 10.04.

     

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

     

    Section
      2.07  Enforcement
      of Obligations for Breach of Mortgage Loan Representations. 

     

    Upon
      discovery by any of the parties hereto of a breach of a representation or
      warranty made by the Sponsor pursuant to the Representations and Warranties
      Agreement, the party discovering such breach shall give prompt written notice
      thereof to the other parties to this Agreement and the Sponsor. The Trustee
      shall pursue all legal remedies available to the Trustee with respect to such
      breach under the Representations and Warranties Agreement, as may be necessary
      or appropriate to enforce the rights of the Trust with respect thereto, if
      the
      Trustee has received written notice from the Depositor directing the Trustee
      to
      pursue such remedies.

     

     

     

    ARTICLE
      III

     

    ADMINISTRATION
      AND SERVICING

    OF
      MORTGAGE LOANS

     

    Section
      3.01  Servicers
      to Service Mortgage Loans. 

     

    (a)  For
      and
      on behalf of the Certificateholders, each Servicer shall service and administer
      the Mortgage Loans for which it is acting as Servicer 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 but without regard
      to:

     

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

     

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

     

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

     

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

     

    To
      the
      extent consistent with the foregoing, each 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, each Servicer shall have full
      power and authority, acting alone or through Subservicers as provided in
      Section 3.02, to do or cause to be done any and all things in connection
      with such servicing and administration which it may deem necessary or desirable.
      Without limiting the generality of the foregoing, each Servicer in its own
      name
      or in the name of a Subservicer is hereby authorized and empowered by the
      Trustee when the applicable Servicer believes it appropriate in its best
      judgment in accordance with Accepted Servicing Practices, to execute and deliver
      any and all instruments of satisfaction or cancellation, or of partial or full
      release or discharge, and all other comparable instruments, with respect to
      the
      Mortgage Loans and the Mortgaged Properties and to institute foreclosure
      proceedings or obtain a deed in lieu of foreclosure so as to convert the
      ownership of such properties, and to hold or cause to be held title to such
      properties, on behalf of the Trustee. Each 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.
      Each Servicer covenants that its computer and other systems used in servicing
      the Mortgage Loans operate in a manner such that the applicable Servicer can
      service the Mortgage Loans in accordance with the terms of this Pooling and
      Servicing Agreement. Each 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 3.16, the Trustee shall
      execute, at the written request of a Servicer, and furnish to such Servicer
      and
      any Subservicer such documents provided to the Trustee as are necessary or
      appropriate to enable such Servicer or any Subservicer to carry out its
      servicing and administrative duties hereunder, and the Trustee hereby grants
      to
      each Servicer, and this Agreement shall constitute, a power of attorney to
      carry
      out such duties, including a power of attorney in the form of Exhibit O hereto
      to take title to Mortgaged Properties after foreclosure in the name of and
      on
      behalf of the Trustee. The Trustee shall execute a separate power of attorney
      in
      favor of each Servicer for the purposes described herein to the extent necessary
      or desirable to enable each Servicer to perform its duties hereunder. The
      Trustee shall not be liable for the actions of any Servicer or any Subservicers
      under such powers of attorney. Notwithstanding anything contained herein to
      the
      contrary, no Servicer or Subservicer shall without the Trustee’s consent: (i)
      initiate any action, suit or proceeding solely under the Trustee’s name without
      indicating such Servicer’s or Subservicer’s, as applicable, representative
      capacity, or (ii) take any action with the intent to, or which actually does
      cause, the Trustee to be registered to do business in any state.

     

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

     

    (c)  Notwithstanding
      anything in this Agreement to the contrary, a Servicer may not make any future
      advances with respect to a Mortgage Loan (except as provided in Section 4.01)
      and neither Servicer shall (i) permit any modification with respect to any
      Mortgage Loan that would change the Mortgage Rate, reduce or increase the
      principal balance (except for reductions resulting from actual payments of
      principal) or change the final maturity date on such Mortgage Loan (except
      for a
      reduction of interest payments resulting from the application of the
      Servicemembers Civil Relief Act or any similar state statutes) or (ii) permit
      any modification, waiver or amendment of any term of any Mortgage Loan that
      would both (A) effect an exchange or reissuance of such Mortgage Loan under
      Section 1001 of the Code (or final, temporary or proposed Treasury regulations
      promulgated thereunder) and (B) cause any Trust REMIC to fail to qualify as
      a
      REMIC under the Code or the imposition of any tax on “prohibited transactions”
or “contributions after the startup date” under the REMIC Provisions, or (iii)
      except as provided in Section 3.07(a), waive any Prepayment Charges.
      Notwithstanding the foregoing, in the event that any Mortgage Loan is in default
      or, in the judgment of the applicable Servicer, a default is reasonably
      foreseeable, such Servicer may accept payment from the related Mortgagor of
      an
      amount less than the Stated Principal Balance of such Mortgage Loan in final
      satisfaction thereof, if in that Servicer’s determination such action is not
      materially adverse to the interests of the Certificateholders (taking into
      account any estimated Realized Loss that might result absent such
      action).

     

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

     

    (e)  In
      the
      event that the Mortgage Loan Documents relating to any Mortgage Loan contain
      provisions requiring the related Mortgagor to submit to binding arbitration
      with
      respect to any disputes arising in connection with such Mortgage Loan, the
      applicable Servicer shall be entitled to waive any such provisions on behalf
      of
      the Trust and to send written notice of such waiver to the related Mortgagor,
      although the Mortgagor may still require arbitration of such disputes at its
      option.

     

    Notwithstanding
      anything to the contrary contained in Sections 3.02(a), 3.02(d), 3.02(e), 3.03,
      3.22, 3.23, 4.03(d), 6.02, 8.12 and 10.14, the obligations of Countrywide
      Servicing with respect to the Mortgage Loans and Regulation AB shall be solely
      as set forth in the Countrywide Amendment Regulation AB with respect to the
      servicing of the Mortgage Loans.

     

    Section
      3.02  Subservicing
      Agreements between a Servicer and Subservicers.
      (a)
      Each
      Servicer may enter into subservicing agreements with Subservicers for the
      servicing and administration of the Mortgage Loans (“Subservicing Agreements”).
      Each Servicer represents and warrants to the other parties hereto that, except
      as otherwise set forth herein, no Subservicing Agreement is in effect as of
      the
      Closing Date with respect to any Mortgage Loans required to be serviced by
      it
      hereunder. The applicable Servicer shall give notice to the Depositor and the
      Trustee of any such Subservicer and Subservicing Agreement, which notice shall
      contain all information (including without limitation a copy of such
      Subservicing Agreement) reasonably necessary to enable the Trustee, pursuant
      to
      Section 8.12(g), to accurately and timely report the event under
      Item 6.02 of Form 8-K pursuant to the Exchange Act (if such reports
      under the Exchange Act are required to be filed under the Exchange Act). No
      Subservicing Agreement shall be effective until 30 days after such written
      notice is received by both the Depositor and the Trustee. The Trustee shall
      not
      be required to review or consent to such Subservicing Agreements and shall
      have
      no liability in connection therewith.

     

    (b)  Each
      Subservicer shall be (i) authorized to transact business in the state or states
      in which the related Mortgaged Properties it is to service are situated, if
      and
      to the extent required by applicable law to enable the Subservicer to perform
      its obligations hereunder and under the Subservicing Agreement, (ii) an
      institution approved as a mortgage loan originator by the Federal Housing
      Administration or an institution that has deposit accounts insured by the FDIC
      and (iii) a Freddie Mac or Fannie Mae approved mortgage servicer. Each
      Subservicing Agreement must impose on the Subservicer requirements conforming
      to
      the provisions set forth in Section 3.08 and provide for servicing of the
      Mortgage Loans consistent with the terms of this Agreement. Each Servicer will
      examine each Subservicing Agreement to which it is a party and will be familiar
      with the terms thereof. The terms of any Subservicing Agreement will not be
      inconsistent with any of the provisions of this Agreement. Each Servicer and
      the
      respective Subservicers may enter into and make amendments to the Subservicing
      Agreements or enter into different forms of Subservicing Agreements;
provided,
      however,
      that
      any such amendments or different forms shall be consistent with and not violate
      the provisions of this Agreement, and that no such amendment or different form
      shall be made or entered into which could be reasonably expected to be
      materially adverse to the interests of the Trustee, without the consent of
      the
      Trustee. Any variation without the consent of the Trustee from the provisions
      set forth in Section 3.08 relating to insurance or priority requirements of
      Subservicing Accounts, or credits and charges to the Subservicing Accounts
      or
      the timing and amount of remittances by the Subservicers to such Servicer,
      are
      conclusively deemed to be inconsistent with this Agreement and therefore
      prohibited. Each Servicer shall deliver to the Trustee and the Depositor copies
      of all Subservicing Agreements, and any amendments or modifications thereof,
      promptly upon such Servicer’s execution and delivery of such
      instruments.

     

    (c)  As
      part
      of its servicing activities hereunder, each Servicer (except as otherwise
      provided in the last sentence of this paragraph), for the benefit of the
      Trustee, shall enforce the obligations of each Subservicer under the related
      Subservicing Agreement to which such Servicer is a party, including, without
      limitation, any obligation to make advances in respect of delinquent payments
      as
      required by a Subservicing Agreement. Such enforcement, including, without
      limitation, the legal prosecution of claims, termination of Subservicing
      Agreements, and the pursuit of other appropriate remedies, shall be in such
      form
      and carried out to such an extent and at such time as such Servicer, in its
      good
      faith business judgment, would require were it the owner of the related Mortgage
      Loans. Each Servicer shall pay the costs of such enforcement at its own expense,
      and shall be reimbursed therefor only (i) from a general recovery resulting
      from
      such enforcement, to the extent, if any, that such recovery exceeds all amounts
      due in respect of the related Mortgage Loans or (ii) from a specific recovery
      of
      costs, expenses or attorneys’ fees against the party against whom such
      enforcement is directed.

     

    (d)  Each
      Servicer shall cause any Subservicer engaged by such Servicer (or by any
      Subservicer) for the benefit of the Depositor and the Trustee to comply with
      the
      provisions of this Section 3.02 and with Sections 3.22, 3.23, 6.02 and 6.05
      of
      this Agreement to the same extent as if such Subservicer were such Servicer,
      and
      to provide the information required with respect to such Subservicer under
      Section 8.12 of this Agreement. Such Servicer shall be responsible for obtaining
      from each such Subservicer and delivering to applicable Persons any servicer
      compliance statement required to be delivered by such Subservicer under Section
      3.22 and any assessment of compliance report and related accountant’s
      attestation required to be delivered by such Subservicer under Section 3.23,
      in
      each case as and when required to be delivered.

     

    (e)  Subject
      to the conditions set forth in this Section 3.02(e), each Servicer and any
      Subservicer engaged by such Servicer is permitted to utilize one or more
      Subcontractors to perform certain of its obligations hereunder. Such Servicer
      shall promptly upon request provide to the Depositor a written description
      (in
      form and substance satisfactory to the Depositor) of the role and function
      of
      each Subcontractor utilized by such Servicer or any such Subservicer,
      specifying, not later than the date specified for delivery of the annual report
      on assessment of compliance set forth in Section 3.23(d), (i) the identity
      of
      each such Subcontractor, if any, that is “participating in the servicing
      function” within the meaning of Item 1122 of Regulation AB, and (ii) which
      elements of the Servicing Criteria will be addressed in assessments of
      compliance provided by each Subcontractor identified pursuant to clause (i)
      of
      this paragraph. As a condition to the utilization by such Servicer or any such
      Subservicer of any Subcontractor determined to be “participating in the
      servicing function” within the meaning of Item 1122 of Regulation AB, such
      Servicer shall cause any such Subcontractor used by such Servicer (or by any
      such Subservicer) for the benefit of the Depositor and the Trustee to comply
      with the provisions of Section 3.23 of this Agreement to the same extent as
      if
      such Subcontractor were such Servicer. Such Servicer shall be responsible for
      obtaining from each such Subcontractor and delivering to the applicable Persons
      any assessment of compliance report and related accountant’s attestation
      required to be delivered by such Subcontractor under Section 3.23, in each
      case
      as and when required to be delivered.

     

    Notwithstanding
      the foregoing, if a Servicer engages a Subcontractor in connection with the
      performance of any of its duties under this Agreement, such Servicer shall
      be
      responsible for determining whether such Subcontractor is a “servicer” within
      the meaning of Item 1101 of Regulation AB and whether any such affiliate or
      third-party vendor meets the criteria in Item 1108(a)(2)(i) through (iii) of
      Regulation AB. If a Servicer determines, pursuant to the preceding sentence,
      that such Subcontractor is a “servicer” within the meaning of Item 1101 of
      Regulation AB and meets the criteria in Item 1108(a)(2)(i) through (iii) of
      Regulation AB, then such Subcontractor shall be deemed to be a Subservicer
      for
      purposes of this Agreement, the engagement of such Subservicer shall not be
      effective unless and until notice is given pursuant to Section 3.02(a) and
      such
      Servicer shall comply with Section 3.02(d) with respect thereto.

     

    Section
      3.03  Successor
      Subservicers.
      Each
      Servicer shall be entitled to terminate any Subservicing Agreement to which
      such
      Servicer is a party and the rights and obligations of any Subservicer pursuant
      to any such Subservicing Agreement in accordance with the terms and conditions
      of such Subservicing Agreement; provided,
      however,
      that
      the termination, resignation or removal of a Subservicer shall be not be
      effective until 30 days after written notice is received by both the Depositor
      and the Trustee that contains all information reasonably necessary to enable
      the
      Trustee, pursuant to Section 8.12(g), to accurately and timely report the event
      under Item 6.02 of Form 8-K pursuant to the Exchange Act (if such reports under
      the Exchange Act are required to be filed under the Exchange Act). In the event
      of termination of any Subservicer, all servicing obligations of such Subservicer
      shall be assumed simultaneously by the applicable Servicer without any act
      or
      deed on the part of such Subservicer or such Servicer, and such Servicer either
      shall service directly the related Mortgage Loans or shall enter into a
      Subservicing Agreement with a successor Subservicer which qualifies under
      Section 3.02.

     

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

     

    Section
      3.04  Liability
      of the Servicers.
      Notwithstanding any Subservicing Agreement, any of the provisions of this
      Agreement relating to agreements or arrangements between a Servicer and a
      Subservicer or reference to actions taken through a Subservicer or otherwise,
      such Servicer shall remain obligated and primarily liable to the Trustee 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 Subservicing Agreements or arrangements or by virtue of
      indemnification from the Subservicer and to the same extent and under the same
      terms and conditions as if such Servicer alone were servicing and administering
      such Mortgage Loans. Each Servicer shall be entitled to enter into any agreement
      with a Subservicer for indemnification of such Servicer by such Subservicer
      and
      nothing contained in this Agreement shall be deemed to limit or modify such
      indemnification.

     

    Section
      3.05  No
      Contractual Relationship between Subservicers and the Trustee.
      Any
      Subservicing Agreement that may be entered into and any transactions or services
      relating to the Mortgage Loans involving a Subservicer in its capacity as such
      shall be deemed to be between the Subservicer and the related Servicer alone,
      and the Trustee (or any successor to such Servicer) shall not be deemed a party
      thereto and shall have no claims, rights, obligations, duties or liabilities
      with respect to the Subservicer except as set forth in Section 3.06. Each
      Servicer shall be solely liable for all fees owed by it to any Subservicer,
      irrespective of whether such Servicer’s compensation pursuant to this Agreement
      is sufficient to pay such fees.

     

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

     

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

     

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

     

    Section
      3.07  Collection
      of Certain Mortgage Loan Payments.
      (a)  Each
      Servicer shall make reasonable efforts to collect all payments called for under
      the terms and provisions of the Mortgage Loans, and shall, to the extent such
      procedures shall be consistent with this Agreement and the terms and provisions
      of any applicable Insurance Policies, follow such collection procedures as
      it
      would follow with respect to mortgage loans comparable to the Mortgage Loans
      and
      held for its own account. Consistent with the foregoing and Accepted Servicing
      Practices, each Servicer may (i) waive any late payment charge or, if
      applicable, any penalty interest, or (ii) extend the Due Dates for the Scheduled
      Payments due on a Mortgage Note for a period of not greater than 180 days;
      provided that any extension pursuant to clause (ii) above shall not affect
      the
      amortization schedule of any Mortgage Loan for purposes of any computation
      hereunder, except as provided below. In the event of any such arrangement
      pursuant to clause (ii) above, the applicable Servicer shall make timely
      advances on such Mortgage Loan during such extension pursuant to Section 4.01
      and in accordance with the amortization schedule of such Mortgage Loan without
      modification thereof by reason of such arrangements, subject to Section 4.01(d)
      pursuant to which such Servicer shall not be required to make any such advances
      that are Nonrecoverable P&I Advances. 

     

    Notwithstanding
      the foregoing, a Servicer may waive, or permit a Subservicer to waive, in whole
      or in part, a Prepayment Charge only under the following circumstances: (i)
      such
      waiver relates to a default or a reasonably foreseeable default and would,
      in
      the reasonable judgment of such Servicer, maximize recovery of total proceeds
      taking into account the value of such Prepayment Charge and the related Mortgage
      Loan; provided, however, that the applicable Servicer or Subservicer may waive
      such Prepayment Charge if the Mortgage Loan is accelerated or paid-off in
      connection with the workout of a delinquent Mortgage Loan or due to the related
      Mortgagor’s default, notwithstanding that the terms of the Mortgage Loan or
      federal or state law might permit the imposition of such Prepayment Charge,
      (ii)
      such Prepayment Charge is not permitted to be collected by applicable federal,
      state or local law or regulation or (iii) the collection of such Prepayment
      Charge would be considered “predatory” pursuant to written guidance published or
      issued by any applicable federal, state or local regulatory authority acting
      in
      its official capacity and having jurisdiction over such matters. If a Prepayment
      Charge is waived other than as permitted by the prior sentence, then the
      applicable Servicer is required to pay the amount of such waived Prepayment
      Charge, for the benefit of the Holders of the Class P Certificates, by
      depositing such amount into the related Collection Account together with and
      at
      the time that the amount prepaid on the related Mortgage Loan is required to
      be
      deposited into the Collection Account; provided, however, that the applicable
      Servicer shall not have an obligation to pay the amount of any uncollected
      Prepayment Charge if the failure to collect such amount is the direct result
      of
      inaccurate or incomplete information on the Mortgage Loan Schedule in effect
      at
      such time.

     

    (b)  (i)The
      Trustee shall establish and maintain the Excess Reserve Fund Account, on behalf
      of the Class X Certificateholders, to receive any Basis Risk Payment and any
      Interest Rate Cap Payment and to secure their limited recourse obligation to
      pay
      to the Offered Certificateholders Basis Risk CarryForward Amounts (prior to
      using any Net Swap Receipts). For the avoidance of doubt, any Basis Risk
      CarryForward Amounts shall be paid to the Offered Certificates first from the
      Excess Reserve Fund Account and then from the Swap Account.

     

    (ii)  On
      each
      Distribution Date, the Trustee shall deposit the amount of any Basis Risk
      Payment made for the benefit of the Certificateholders and any Interest Rate
      Cap
      Payment made for the benefit of the Offered Certificates for such date into
      the
      Excess Reserve Fund Account.

     

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

     

    (ii)  It
      is the
      intention of the parties hereto that, for federal and state income and state
      and
      local franchise tax purposes, the Excess Reserve Fund Account be disregarded
      as
      an entity separate from the Holder of the Class X Certificates unless and until
      the date when either (a) there is more than one Class X Certificateholder or
      (b)
      any Class of Certificates in addition to the Class X Certificates is
      recharacterized as an equity interest in the Excess Reserve Fund Account for
      federal income tax purposes, in which case it is the intention of the parties
      hereto that, for federal and state income and state and local franchise tax
      purposes, the Excess Reserve Fund Account be treated as a partnership. The
      Excess Reserve Fund Account will be an “outside reserve fund” within the meaning
      of Treasury Regulation Section 1.860G-2(h). For all federal tax purposes,
      amounts transferred by REMIC VI to the Excess Reserve Fund Account shall be
      treated as distributions by the Trustee to the Class X
      Certificateholders.

     

    (iii)  Any
      Basis
      Risk CarryForward Amounts paid by the Trustee to the Offered Certificateholders
      shall be accounted for by the Trustee as amounts paid first to the Holders
      of
      the Class X Certificates and then to the respective Class or Classes of
      Offered Certificates. In addition, the Trustee shall account for the Offered
      Certificateholders’ rights to receive payments of Basis Risk CarryForward
      Amounts (along with payments of Basis Risk CarryForward Amounts from the Swap
      Account) as rights in a limited recourse interest rate cap contract written
      by
      the Class X Certificateholders in favor of the Offered
      Certificateholders.

     

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

     

    (d)  The
      Trustee shall establish and maintain the Distribution Account on behalf of
      the
      Certificateholders. The Depositor shall cause to be deposited into the
      Distribution Account on the Closing Date the Closing Date Deposit Amount. The
      Trustee shall, promptly upon receipt, deposit in the Distribution Account and
      retain therein the following:

     

    (i)  the
      aggregate amount remitted by the Servicers to the Trustee pursuant to
      Section 3.11;

     

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

     

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

     

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

     

    (e)  The
      Trustee may invest the funds in the Distribution Account, in one or more
      Permitted Investments, in accordance with Section 3.12. Each Servicer shall
      direct the Trustee to withdraw from the Distribution Account and to remit to
      such Servicer no less than monthly, all income and gain realized from the
      investment of the portion of funds deposited in the Distribution Account by
      such
      Servicer (except during the Trustee Float Period). The Trustee may withdraw
      from
      the Distribution Account any income or gain earned from the investment of funds
      deposited therein during the Trustee Float Period for its own
      benefit.

     

    (f)  Each
      Servicer shall give notice to the Trustee, and the Trustee shall give notice
      to
      each Rating Agency and the Depositor of any proposed change of the location
      of
      the related Collection Account within a reasonable period of time prior to
      any
      change thereof.

     

    (g)  In
      order
      to comply with laws, rules and regulations applicable to banking institutions,
      including those relating to the funding of terrorist activities and money
      laundering, the Trustee is required to obtain, verify and record certain
      information relating to individuals and entities which maintain a business
      relationship with the Trustee. Accordingly, each of the parties agrees to
      provide to the Trustee upon its request from time to time such party’s complete
      name, address, tax identification number and such other identifying information
      together with copies of such party’s constituting documentation, securities
      disclosure documentation and such other identifying documentation as may be
      available for such party.

     

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

     

    Section
      3.09  Collection
      of Taxes, Assessments and Similar Items; Escrow Accounts.
      (a)
      Each
      Servicer shall enforce the obligations under each paid-in-full, life-of-the-loan
      tax service contract in effect with respect to each First Lien Mortgage Loan
      (each, a “Tax
      Service Contract”)
      serviced by such Servicer. Each Tax Service Contract shall be assigned to the
      Trustee, or a successor servicer at the applicable Servicer’s expense in the
      event that a Servicer is terminated as Servicer of the related Mortgage
      Loan.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (vii)  all
      Prepayment Charges collected or paid (pursuant to Section 3.07(a)) by such
      Servicer.

     

    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, payments in the nature of late payment charges, NSF fees,
      reconveyance fees, assumption fees and other similar fees and charges need
      not
      be deposited by each Servicer in the related Collection Account and shall,
      upon
      collection, belong to the applicable Servicer as additional compensation for
      its
      servicing activities. In the event a Servicer shall deposit in the related
      Collection Account any amount not required to be deposited therein, it may
      at
      any time withdraw such amount from its Collection Account, any provision herein
      to the contrary notwithstanding.

     

    (b)  Funds
      in
      the Collection Accounts may be invested in Permitted Investments in accordance
      with the provisions set forth in Section 3.12. Each Servicer shall give notice
      to the Trustee of the location of the related Collection Account maintained
      by
      it when established and prior to any change thereof in accordance with Section
      3.07(f).

     

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

     

    (i)  on
      or
      prior to each Remittance Date, to remit to the Trustee (A) the Trustee Fee
      with
      respect to such Distribution Date and (B) all Available Funds (without reduction
      for amounts owed to the Depositor or the Trustee as provided for in the
      definition of “Available
      Funds”)
      in
      respect of the related Distribution Date together with all amounts representing
      Prepayment Charges from the Mortgage Loans received by the applicable Servicer
      during the related Prepayment Period;

     

    (ii)  to
      reimburse such Servicer for P&I Advances, but only to the extent of amounts
      received which represent Late Collections (net of the related Servicing Fees)
      of
      Scheduled Payments on Mortgage Loans with respect to which such P&I Advances
      were made in accordance with the provisions of Section 4.01 (such
      Servicer’s right for recovery or reimbursement has priority over the Trust as
      stated in the definition of “Available
      Funds”);

     

    (iii)  to
      pay
      such Servicer or any Subservicer (a) any unpaid Servicing Fees or (b) any
      unreimbursed Servicing Advances with respect to each Mortgage Loan serviced
      by
      such Servicer or Subservicer, but only to the extent of any Late Collections,
      Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds or other amounts
      as may be collected by such Servicer from a Mortgagor, or otherwise received
      with respect to such Mortgage Loan (or the related REO Property) (such
      Servicer’s right for recovery or reimbursement has priority over the Trust as
      stated in the definition of “Available
      Funds”);

     

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

     

    (v)  to
      pay to
      the Sponsor, the Depositor or the Responsible Party, as applicable, with respect
      to each Mortgage Loan that has previously been repurchased or replaced pursuant
      to this Agreement, all amounts received thereon subsequent to the date of
      purchase or substitution, as further described herein;

     

    (vi)  to
      reimburse such Servicer for (A) any P&I Advance or Servicing Advance
      previously made which such Servicer has determined to be a Nonrecoverable
      P&I Advance or Nonrecoverable Servicing Advance in accordance with the
      provisions of Section 4.01 and (B) any unpaid Servicing Fees related
      to any Second Lien Mortgage Loan to the extent not recoverable from Liquidation
      Proceeds, Insurance Proceeds or other amounts received with respect to the
      related Second Lien Mortgage Loan under Section 3.11(a)(iii) (such
      Servicer’s right for recovery or reimbursement has priority over the Trust as
      stated in the definition of “Available
      Funds”);

     

    (vii)  to
      pay,
      or to reimburse such Servicer for advances in respect of, expenses incurred
      in
      connection with any Mortgage Loan serviced by such Servicer pursuant to
      Section 3.15 (such Servicer’s right for recovery or reimbursement has
      priority over the Trust);

     

    (viii)  to
      reimburse such Servicer or the Depositor for expenses incurred by or
      reimbursable to such Servicer or the Depositor, as the case may be, pursuant
      to
      Section 6.03 (such Servicer’s right for recovery or reimbursement has
      priority over the Trust as stated in the definition of “Available
      Funds”);

     

    (ix)  to
      reimburse such Servicer or the Trustee, as the case may be, for expenses
      reasonably incurred in respect of the breach or defect giving rise to the
      repurchase obligation of the Responsible Party or the Depositor, as applicable,
      that were included in the Repurchase Price of the Mortgage Loan, including
      any
      expenses arising out of the enforcement of the repurchase obligation, to the
      extent not otherwise paid pursuant to the terms hereof (such Servicer’s right
      for recovery or reimbursement has priority over the Trust as stated in the
      definition of “Available
      Funds”);

     

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

     

    (xi)  to
      withdraw any amounts held in the related Collection Account and not required
      to
      be remitted to the Trustee on the Remittance Date occurring in the month in
      which such amounts are deposited into such Collection Account, to reimburse
      such
      Servicer for unreimbursed P&I Advances;

     

    (xii)  to
      invest
      funds in Permitted Investments in accordance with Section 3.12;

     

    (xiii)  to
      clear
      and terminate the related Collection Account upon termination of this Agreement;
      and

     

    (xiv) to
      withdraw any net Prepayment Interest Excess in accordance with Section
      3.21(b).

     

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

     

    (c)  Each
      Servicer shall be responsible for reviewing and reconciling the related
      Collection Account in accordance with Accepted Servicing Practices. Each
      Servicer shall act promptly to resolve any discrepancies.

     

    Section
      3.12  Investment
      of Funds in the Collection Accounts and the Distribution Account.
      (a)
      Each
      Servicer may invest the funds in the related Collection Account and the related
      Escrow Account (to the extent permitted by law and the related Mortgage Loan
      documents) and the Trustee may (but is not obligated to) invest funds in the
      Distribution Account during the Trustee Float Period, and, with respect to
      the
      portion of funds in the Distribution Account deposited by a Servicer, shall
      (except during the Trustee Float Period) invest such funds in the Distribution
      Account at the direction of such Servicer (for purposes of this Section 3.12,
      such Accounts are referred to as an “Investment
      Account”),
      in
      one or more Permitted Investments bearing interest or sold at a discount, and
      maturing, unless payable on demand, no later than the Business Day immediately
      preceding the date on which such funds are required to be withdrawn from such
      account pursuant to this Agreement; provided,
      however,
      that
      the Trustee shall have no obligation to invest funds deposited into the
      Distribution Account by a Servicer on the Remittance Date later than 10:00
      a.m.
      (Pacific Standard Time). If no investment instruction is given in a timely
      manner, the Trustee shall hold the funds in the Distribution Account uninvested.
      All such Permitted Investments shall be held to maturity, unless payable on
      demand. Any investment of funds in an Investment Account (other than investments
      made during the Trustee Float Period) shall be made in the name of the Trustee
      in Permitted Investments selected by the applicable Servicer. The applicable
      Servicer shall be entitled to sole possession (except with respect to investment
      direction of funds and any income and gain realized on any investment in the
      Distribution Account during the Trustee Float Period, which shall be for the
      sole benefit of the Trustee) over each such related investment, and any
      certificate or other instrument evidencing any such investment shall be
      delivered directly to the applicable Servicer, or with respect to investments
      during the Trustee Float Period, the Trustee or its agent (with a copy to the
      Trustee or its agent if related to investment of funds in the Distribution
      Account not during the Trustee Float Period), together with any document of
      transfer necessary to transfer title to such investment to the applicable
      Servicer, or with respect to investments during the Trustee Float Period, the
      Trustee or its agent. In the event amounts on deposit in an Investment Account
      are at any time invested in a Permitted Investment payable on demand, the
      applicable Servicer, or with respect to investments during the Trustee Float
      Period, the Trustee may:

     

    
      	 	
              (x)

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

            

    

     

    
      	 	
              (y)

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

            

    

     

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

     

    (c)  All
      income and gain realized from the investment of the portion of funds deposited
      in the Distribution Account by a Servicer and held by the Trustee, shall be
      for
      the benefit of such Servicer (except for any income or gain realized from the
      investment of funds on deposit in the Distribution Account during the Trustee
      Float Period, which shall be for the benefit of the Trustee) and shall be
      subject to the Trustee’s withdrawal in the manner set forth in Section 3.07(e).
      Each Servicer shall deposit in the Distribution Account (except with respect
      to
      losses incurred during the Trustee Float Period) 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
      shall take such action as may be appropriate to enforce such payment or
      performance, including the institution and prosecution of appropriate
      proceedings.

     

    (e)  The
      Trustee shall not be liable for the amount of any loss incurred with respect
      of
      any investment or lack of investment of funds held in any Investment Account
      or
      the Distribution Account (except that if any losses are incurred from the
      investment of funds deposited in the Distribution Account during the Trustee
      Float Period, the Trustee shall be responsible for reimbursing the Trust for
      such loss immediately upon realization of such loss) if made in accordance
      with
      this Section 3.12.

     

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

     

    Section
      3.13  Maintenance
      of Hazard Insurance and Errors and Omissions and Fidelity
      Coverage.
      (a)
      Each
      Servicer shall cause to be maintained for each Mortgage Loan serviced by such
      Servicer fire insurance with extended coverage on the related Mortgaged Property
      in an amount which is at least equal to the least of (i) the outstanding
      principal balance of such Mortgage Loan, (ii) the amount necessary to fully
      compensate for any damage or loss to the improvements that are a part of such
      property on a replacement cost basis and (iii) the maximum insurable value
      of
      the improvements which are a part of such Mortgaged Property, in each case
      in an
      amount not less than such amount as is necessary to avoid the application of
      any
      coinsurance clause contained in the related hazard insurance policy. Each
      Servicer shall also cause to be maintained fire insurance with extended coverage
      on each REO Property serviced by such Servicer 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. Each 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 any 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 such 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 related Collection Account, subject
      to
      withdrawal pursuant to Section 3.11. Any cost incurred by any Servicer in
      maintaining any such insurance shall not, for the purpose of calculating
      distributions to the Trustee, 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 applicable 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 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 (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 any Servicer shall obtain and maintain a blanket policy with an
      insurer either (i) acceptable to Fannie Mae or Freddie Mac or
      (ii) having a General Policy Rating of B:III or better from Best’s (or such
      other rating that is comparable to such rating) insuring against hazard losses
      on all of the Mortgage Loans, it shall conclusively be deemed to have satisfied
      its obligations as set forth in the first two sentences of this
      Section 3.13, it being understood and agreed that such policy may contain a
      deductible clause, in which case such Servicer shall, in the event that there
      shall not have been maintained on the related Mortgaged Property or REO Property
      a policy complying with the first two sentences of this Section 3.13, and
      there shall have been one or more losses which would have been covered by such
      policy, deposit to the related 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, each Servicer agrees to prepare and present, on behalf of itself
      and the Trustee claims under any such blanket policy in a timely fashion in
      accordance with the terms of such policy.

     

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

     

    Section
      3.14  Enforcement
      of “Due-on-Sale” Clauses; Assumption Agreements.
      Each
      Servicer will, to the extent it has knowledge of any conveyance or prospective
      conveyance of any Mortgaged Property by any Mortgagor (whether by absolute
      conveyance or by contract of sale, and whether or not the Mortgagor remains
      or
      is to remain liable under the Mortgage Note and/or the Mortgage), exercise
      its
      rights to accelerate the maturity of such Mortgage Loan under the “due-on-sale”
clause, if any, applicable thereto; provided, however, that no Servicer shall
      be
      required to take such action if, in its sole business judgment, such Servicer
      believes it is not in the best interests of the Trust Fund and shall not
      exercise any such rights if prohibited by law from doing so. If a 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, such 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. Each Servicer is also authorized
      to
      enter into a substitution of liability agreement with such person, pursuant
      to
      which the original Mortgagor is released from liability and such person is
      substituted as the Mortgagor and becomes liable under the Mortgage Note;
      provided, that no such substitution shall be effective unless such person
      satisfies the underwriting criteria of such Servicer and such substitution
      is in
      the best interest of the Certificateholders as determined by such Servicer.
      In
      connection with any assumption, modification or substitution, such 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. No Servicer shall take
      or
      enter into any assumption and modification agreement, however, unless (to the
      extent practicable in the circumstances) it shall have received confirmation,
      in
      writing, of the continued effectiveness of any applicable hazard insurance
      policy, or a new policy meeting the requirements of this Section is obtained.
      Any fee collected by a Servicer in respect of an assumption or substitution
      of
      liability agreement will be retained by such Servicer as additional servicing
      compensation. In connection with any such assumption, no material term of the
      Mortgage Note (including but not limited to the related Mortgage Rate and the
      amount of the Scheduled Payment) may be amended or modified, except as otherwise
      required pursuant to the terms thereof. Each Servicer shall notify the Trustee
      that any such substitution, modification or assumption agreement has been
      completed and shall forward to the Trustee the executed original of such
      substitution or assumption agreement, which document shall be added to the
      related Mortgage File and shall, for all purposes, be considered a part of
      such
      Mortgage File to the same extent as all other documents and instruments
      constituting a part thereof.

     

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

     

    Section
      3.15  Realization
      upon Defaulted Mortgage Loans.
      Each
      Servicer shall use its best efforts, consistent with Accepted Servicing
      Practices, to foreclose upon or otherwise comparably convert (which may include
      an acquisition of REO Property) the ownership of properties securing such of
      the
      Mortgage Loans as come into and continue in default and as to which no
      satisfactory arrangements can be made for collection of delinquent payments
      pursuant to Section 3.07, and which are not released from this Agreement
      pursuant to any other provision hereof. Each Servicer shall use reasonable
      efforts to realize upon such defaulted Mortgage Loans in such manner as will
      maximize the receipt of principal and interest by the Trustee, taking into
      account, among other things, the timing of foreclosure proceedings; provided,
      however, with respect to any Second Lien Mortgage Loan for which the related
      first lien mortgage loan is not included in the Trust Fund, if, after such
      Mortgage Loan becomes 180 days or more delinquent, the applicable Servicer
      determines that a significant net recovery is not possible through foreclosure,
      such Mortgage Loan may be charged off and the Mortgage Loan will be treated
      as a
      Liquidated Mortgage Loan giving rise to a Realized Loss. The foregoing is
      subject to the provisions that, in any case in which Mortgaged Property shall
      have suffered damage from an uninsured cause, a Servicer shall not be required
      to expend its own funds toward the restoration of such property unless it shall
      determine in its sole discretion (i) that such restoration will increase the
      net
      proceeds of liquidation of the related Mortgage Loan to the Trustee, after
      reimbursement to itself for such expenses, and (ii) that such expenses will
      be
      recoverable by such Servicer through Insurance Proceeds, Condemnation Proceeds
      or Liquidation Proceeds from the related Mortgaged Property, as contemplated
      in
      Section 3.11. Each Servicer shall be responsible for all other costs and
      expenses incurred by it in any such proceedings; provided, however, that it
      shall be entitled to reimbursement thereof from the related property, as
      contemplated in Section 3.11.

     

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

     

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

     

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

     

    In
      the
      event either Servicer elects to charge-off a Second Lien Mortgage Loan 180
      days
      or more delinquent pursuant to this Section 3.15, no Second Lien Mortgage Loan
      shall be characterized as a Liquidated Mortgage Loan, unless the Depositor
      consents in writing to such characterization after such Servicer has provided
      the Depositor with a combined equity analysis of such Second Lien Mortgage
      Loan
      and the related first lien mortgage loan; provided, that if the Depositor has
      failed to notify the applicable Servicer within 3 Business Days of receipt
      of
      such combined equity analysis, then the Depositor shall be deemed to have
      consented to such characterization. In the event either Servicer elects to
      charge off a Second Lien Mortgage Loan 180 days or more delinquent pursuant
      to
      this Section 3.15, such Servicer shall notify the Trustee of such election,
      which notice may be provided in a Servicer Remittance Report delivered pursuant
      to Section 4.03(d).

     

    Section
      3.16  Release
      of Mortgage Files.
      (a)  Upon
      the payment in full of any Mortgage Loan, or the receipt by a Servicer of a
      notification that payment in full shall be escrowed in a manner customary for
      such purposes, such Servicer will, on or before the last day of the month in
      which such payment in full occurs, notify the Trustee by a certification (which
      certification shall include a statement to the effect that all amounts received
      or to be received in connection with such payment which are required to be
      deposited in the related Collection Account pursuant to Section 3.10 have been
      or will be so deposited) of a Servicing Officer and shall request delivery
      to it
      of the Custodial File by submitting a Request for Release (in writing or an
      electronic format acceptable to the Trustee) to the Trustee. Upon receipt of
      such certification and Request for Release, the Trustee shall promptly release
      the related Custodial File to such Servicer within three (3) Business Days.
      No
      expenses incurred in connection with any instrument of satisfaction or deed
      of
      reconveyance shall be chargeable to the related Collection Account or to the
      Trustee.

     

    (b)  From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan, including, for this purpose, collection under any Insurance Policy
      relating to the Mortgage Loans, the Trustee shall, upon request of such Servicer
      and delivery to the Trustee of a Request for Release in written or electronic
      form, release the related Custodial File to such Servicer, and the Trustee
      shall, at the direction of such Servicer, execute such documents as shall be
      necessary to the prosecution of any such proceedings and such Servicer shall
      retain the Mortgage File in trust for the benefit of the Trustee. Such Request
      for Release shall obligate the applicable Servicer to return each and every
      document previously requested from the Custodial File to the Trustee when the
      need therefor by such Servicer no longer exists, unless the Mortgage Loan has
      been charged-off or liquidated and the Liquidation Proceeds relating to the
      Mortgage Loan have been deposited in the related Collection Account or the
      Mortgage File or such document has been delivered to an attorney, or to a public
      trustee or other public official as required by law, for purposes of initiating
      or pursuing legal action or other proceedings for the foreclosure of the
      Mortgaged Property either judicially or non- judicially, and such Servicer
      has
      delivered to the Trustee a certificate of a Servicing Officer certifying as
      to
      the name and address of the Person to which such Mortgage File or such document
      was delivered and the purpose or purposes of such delivery. Upon receipt of
      a
      certificate of a Servicing Officer stating that such Mortgage Loan was charged
      -off or liquidated and that all amounts received or to be received in connection
      with such liquidation that are required to be deposited into the related
      Collection Account have been so deposited, or that such Mortgage Loan has become
      an REO Property, a copy of the Request for Release shall be released by the
      Trustee to the applicable Servicer or its designee upon request therefor. Upon
      receipt of a Request for Release under this Section 3.16, the Trustee shall
      deliver the related Custodial File to the requesting Servicer (at such
      Servicer’s expense); provided, however, that in the event a Servicer has not
      previously received copies of the relevant Mortgage Loan Documents necessary
      to
      service the related Mortgage Loan in accordance with Accepted Servicing
      Practices, the Responsible Party shall reimburse the Trustee for any overnight
      courier charges incurred for the requested Custodial Files.

     

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

     

    Section
      3.17  Title,
      Conservation and Disposition of REO Property.
      (a)  This
      Section shall apply only to REO Properties acquired for the account of the
      Trustee and shall not apply to any REO Property relating to a Mortgage Loan
      which was purchased or repurchased from the Trustee pursuant to any provision
      hereof. In the event that title to any such REO Property is acquired, the
      applicable Servicer shall cause the deed or certificate of sale to be issued
      in
      the name of the Trustee, on behalf of the Certificateholders. Upon written
      request by the applicable Servicer, the Trustee shall provide such Servicer
      with
      a power of attorney prepared by such Servicer with respect to such REO Property
      in the form of Exhibit O.

     

    (b)  Each
      Servicer shall manage, conserve, protect and operate each related REO Property
      for the Trustee solely for the purpose of its prompt disposition and sale.
      Each
      Servicer, either itself or through an agent selected by such Servicer, shall
      manage, conserve, protect and operate the REO Property in the same manner that
      it manages, conserves, protects and operates other foreclosed property for
      its
      own account, and in the same manner that similar property in the same locality
      as the REO Property is managed. Each Servicer shall attempt to sell the same
      (and may temporarily rent the same for a period not greater than one year,
      except as otherwise provided below) on such terms and conditions as such
      Servicer deems to be in the best interest of the Trustee. The Trustee shall
      have
      no obligations with respect to any REO Dispositions.

     

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

     

    (d)  Each
      Servicer shall deposit net of reimbursement to such Servicer for any related
      outstanding Servicing Advances and unpaid Servicing Fees provided in Section
      3.11, or cause to be deposited, in no event more than two (2) Business Days
      following such Servicer’s receipt thereof in the related Collection Account all
      revenues received with respect to the related REO Property and shall withdraw
      therefrom funds necessary for the proper operation, management and maintenance
      of the REO Property.

     

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

     

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

     

    (g)  Each
      Servicer shall use its reasonable best efforts to sell, or cause its Subservicer
      to sell, in accordance with Accepted Servicing Practices, any REO Property
      serviced by such Servicer as soon as possible, but in no event later than the
      conclusion of the third calendar year beginning after the year of its
      acquisition by REMIC I unless (i) such Servicer applies for and receives an
      extension of such period from the Internal Revenue Service pursuant to the
      REMIC
      Provisions and Code Section 856(e)(3), in which event such REO Property shall
      be
      sold within the applicable extension period, or (ii) such Servicer obtains
      for
      the Trustee an Opinion of Counsel, addressed to the Depositor, the Trustee
      and
      such Servicer, to the effect that the holding by REMIC I of such REO Property
      subsequent to such period will not result in the imposition of taxes on
“prohibited transactions” as defined in Section 860F of the Code or cause any
      Trust REMIC to fail to qualify as a REMIC under the REMIC Provisions or
      comparable provisions of relevant state laws at any time. Each Servicer shall
      manage, conserve, protect and operate each REO Property serviced by such
      Servicer for the Trustee solely for the purpose of its prompt disposition and
      sale in a manner which does not cause such REO Property to fail to qualify
      as
“foreclosure property” within the meaning of Section 860G(a)(8) or result in the
      receipt by REMIC I of any “income from non-permitted assets” within the meaning
      of Section 860F(a)(2)(B) of the Code or any “net income from foreclosure
      property” which is subject to taxation under Section 860G(a)(1) of the Code.
      Pursuant to its efforts to sell such REO Property, the applicable Servicer
      shall
      either itself or through an agent selected by such Servicer protect and conserve
      such REO Property in the same manner and to such extent as is customary in
      the
      locality where such REO Property is located and may, incident to its
      conservation and protection of the interests of the Trustee on behalf of the
      Certificateholders, rent the same, or any part thereof, as such Servicer deems
      to be in the best interest of the Trustee on behalf of the Certificateholders
      for the period prior to the sale of such REO Property; provided, however, that
      any rent received or accrued with respect to such REO Property qualifies as
      “rents from real property” as defined in Section 856(d) of the
      Code.

     

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

     

    Section
      3.19  Access
      to Certain Documentation and Information Regarding the Mortgage
      Loans.
      The
      applicable Servicer shall provide, or cause any Subservicer to provide, to
      the
      Depositor and the Trustee, and at the request of the OTS or the FDIC and the
      examiners and supervisory agents thereof, access to the documentation regarding
      the Mortgage Loans in its possession required by applicable regulations of
      the
      OTS. Such access shall be afforded without charge, but only upon five (5)
      Business Days’ prior written request and during normal business hours at the
      offices of the applicable Servicer or any Subservicer. Nothing in this Section
      shall derogate from the obligation of any such party to observe any applicable
      law prohibiting disclosure of information regarding the Mortgagors and the
      failure of any such party to provide access as provided in this Section as
      a
      result of such obligation shall not constitute a breach of this
      Section.

     

    Section
      3.20  Documents,
      Records and Funds in Possession of the Servicers to Be Held for the
      Trustee.
      Each
      Servicer shall account fully to the Trustee for any funds received by such
      Servicer or which otherwise are collected by such Servicer as Liquidation
      Proceeds, Condemnation Proceeds or Insurance Proceeds in respect of any Mortgage
      Loan serviced by such Servicer. All Mortgage Files and funds collected or held
      by, or under the control of, a Servicer in respect of any Mortgage Loans,
      whether from the collection of principal and interest payments or from
      Liquidation Proceeds, including, but not limited to, any funds on deposit in
      its
      Collection Account, shall be held by such Servicer for and on behalf of the
      Trustee and shall be and remain the sole and exclusive property of the Trustee,
      subject to the applicable provisions of this Agreement. Each Servicer also
      agrees that it shall not create, incur or subject any Mortgage File or any
      funds
      that are deposited in any Collection Account, the Distribution Account or any
      Escrow Account, or any funds that otherwise are or may become due or payable
      to
      the Trustee for the benefit of the Certificateholders, to any claim, lien,
      security interest, judgment, levy, writ of attachment or other encumbrance,
      or
      assert by legal action or otherwise any claim or right of setoff against any
      Mortgage File or any funds collected on, or in connection with, a Mortgage
      Loan,
      except, however, that such Servicer shall be entitled to set off against and
      deduct from any such funds any amounts that are properly due and payable to
      such
      Servicer under this Agreement.

     

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

     

    (b)  Additional
      servicing compensation in the form of assumption or modification fees, late
      payment charges, NSF fees, reconveyance fees and other similar fees and charges
      (other than Prepayment Charges) shall be retained by a Servicer only to the
      extent such fees or charges are received by such Servicer. Each Servicer shall
      also be entitled pursuant to Section 3.11(a)(iv) to withdraw from the related
      Collection Account, and pursuant to Section 3.07(e), to direct the Trustee
      to
      withdraw from the Distribution Account and remit to the applicable Servicer
      (except for monies invested during the Trustee Float Period), as additional
      servicing compensation, interest or other income earned on the related portions
      of deposits therein. Each Servicer shall also be entitled as additional
      servicing compensation, to interest or other income earned on deposits in the
      related Escrow Account (to the extent permitted by law and the related Mortgage
      Loan documents) in accordance with Section 3.12. Each Servicer shall also be
      entitled to retain net Prepayment Interest Excess (to the extent not required
      to
      offset Prepayment Interest Shortfalls), but only to the extent such amounts
      are
      received by such Servicer.

     

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

     

    Section
      3.22  Annual
      Statement as to Compliance.
      Each
      Servicer shall deliver or cause to be delivered, and shall cause each
      Subservicer engaged by such Servicer to deliver or cause to be delivered to
      the
      Trustee (and the Trustee shall deliver or otherwise make available to the
      Depositor and the Rating Agencies) on or before March 5th of each calendar
      year
      (or March 15th in the case of Saxon) commencing in 2008, an Officer’s
      Certificate stating, as to each signatory thereof, that (i) a review of the
      activities of such Servicer or Subservicer, as applicable, during the preceding
      calendar year and of its performance under this Agreement or the applicable
      Subservicing Agreement, as the case may be, has been made under such officers’
supervision, and (ii) to the best of such officers’ knowledge, based on such
      review, such Servicer or Subservicer, as applicable, has fulfilled all of its
      obligations under this Agreement or the applicable Subservicing Agreement,
      as
      the case may be, in all material respects, throughout such year, or, if there
      has been a default in the fulfillment of any such obligation in any material
      respect, specifying each such default known to such officers and the nature
      and
      status thereof. Promptly after receipt of each such Officer’s Certificate, the
      Depositor shall review each such Officer’s Certificate and, if applicable,
      consult with such Servicer or Subservicer as to the nature of any defaults
      by
      that Servicer or any related Subservicer in the fulfillment of any of such
      Servicer’s or any related Subservicer’s obligations. The obligations of any
      Servicer and each Subservicer under this Section apply to each Servicer and
      each
      Subservicer that serviced a Mortgage Loan during the applicable period, whether
      or not such Servicer or such Subservicer is acting as a Servicer or a
      Subservicer at the time such Officer’s Certificate is required to be delivered.
      None of the Servicers or Subservicer or any Servicing Function Participant
      shall
      be required to cause the delivery of any Officer’s Certificate required by this
      Section until March 10th in any given year so long as it has received written
      confirmation from the Depositor that a Form 10-K is not required to be filed
      in
      respect of the Trust for the preceding calendar year.

     

    Section
      3.23  Annual
      Reports on Assessment of Compliance with Servicing Criteria; Annual Independent
      Public Accountants’ Attestation Report.
      (a)
      Not
      later than March 5th of each calendar year (or March 15th in the case of Saxon)
      commencing in 2008, each Servicer shall deliver, and shall cause each
      Subservicer engaged by such Servicer to deliver, and the Trustee shall deliver
      or otherwise make available, and each Servicer and the Trustee shall cause
      each
      Subcontractor utilized by such Servicer (or by any such Subservicer) or the
      Trustee and determined by such Servicer or the Trustee pursuant to Section
      3.02(e) to be “participating in the servicing function” within the meaning of
      Item 1122 of Regulation AB (in each case, a “Servicing Function Participant”),
      to deliver, each at its own expense, to the Trustee (and the Trustee shall
      make
      available to the Depositor as part of the filing package forwarded to the
      Depositor for review and verification) a report on an assessment of compliance
      with the Servicing Criteria applicable to it that contains (A) a statement
      by
      such party of its responsibility for assessing compliance with the Servicing
      Criteria applicable to it, (B) a statement that such party used the Servicing
      Criteria to assess compliance with the Servicing Criteria, (C) such party’s
      assessment of compliance with the Servicing Criteria as of and for the period
      ending the end of the fiscal year covered by the Form 10-K required to be filed
      pursuant to Section 8.12, including, if there has been any material instance
      of
      noncompliance with the Servicing Criteria, a discussion of each such failure
      and
      the nature and status thereof, and (D) a statement that a registered public
      accounting firm has issued an attestation report on such Person’s assessment of
      compliance with the Servicing Criteria as of and for such period. Each such
      assessment of compliance report shall be addressed to the Depositor and signed
      by an authorized officer of the applicable company, and shall address each
      of
      the Servicing Criteria set forth on Exhibit P hereto, or as set forth in the
      notification furnished to the Depositor and the Trustee pursuant to Section
      3.23(c). Each Servicer and the Trustee hereby acknowledge and agree that their
      respective assessments of compliance will cover the items identified on Exhibit
      P hereto as being covered by such party. The parties to this Agreement
      acknowledge that where a particular Servicing Criteria has multiple components,
      each party’s assessment of compliance (and related attestation of compliance)
      will relate only to those components that are applicable to such party. Promptly
      after receipt of each such report on assessment of compliance, (i) the Depositor
      shall review each such report and, if applicable, consult with the Servicers
      or
      the Trustee as to the nature of any material instance of noncompliance with
      the
      Servicing Criteria applicable to it (and each Subservicer or Servicing Function
      Participant engaged or utilized by the applicable Servicer, such Subservicer
      or
      the Trustee), as the case may be. None of the Servicers, the Trustee or any
      Subservicer or any Servicing Function Participant shall be required to cause
      the
      delivery of any such assessments until March 10th in any given
      year.

     

    (b)  Not
      later
      than March 5th of each calendar year (or March 15th in the case of Saxon)
      commencing in 2008, each Servicer and the Trustee shall cause, and each Servicer
      shall cause each Subservicer engaged by such Servicer and each Servicer and
      the
      Trustee shall cause each Servicing Function Participant utilized by the Trustee
      or any Servicer, as applicable (or by any Subservicer engaged by the Servicer)
      to cause, each at its own expense, a registered public accounting firm (which
      may also render other services to such party) and that is a member of the
      American Institute of Certified Public Accountants to furnish a report to the
      Trustee (and the Trustee shall make available to the Depositor as part of the
      filing package forwarded to the Depositor for review and verification, with
      a
      copy to the Rating Agencies), to the effect that (i) it has obtained a
      representation regarding certain matters from the management of such Person,
      which includes an assertion that such Person has complied with the Servicing
      Criteria applicable to it pursuant to Section 3.23(a) and (ii) on the basis
      of
      an examination conducted by such firm in accordance with standards for
      attestation engagements issued or adopted by the PCAOB, that attests to and
      reports on such Person’s assessment of compliance with the Servicing Criteria
      applicable to it. In the event that an overall opinion cannot be expressed,
      such
      registered public accounting firm shall state in such report why it was unable
      to express such an opinion. Each such related accountant’s attestation report
      shall be made in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation
      S-X
      under the Securities Act and the Exchange Act. Such report must be available
      for
      general use and not contain restricted use language. Promptly after receipt
      of
      each such accountants’ attestation report, the Depositor shall review the report
      and, if applicable, consult with the applicable Servicer or the Trustee as
      to
      the nature of any defaults by such Servicer or the Trustee (and each Subservicer
      or Servicing Function Participant engaged or utilized by such Servicer, the
      Trustee or by any Subservicer engaged by such Servicer), as the case may be,
      in
      the fulfillment of any of the Servicers’, the Trustee’s, any of the applicable
      Subservicer’s or Servicing Function Participant’s obligations hereunder or under
      any applicable sub-servicing agreement. None of the Servicers, the Trustee
      or
      any Servicing Function Participant shall be required to cause the delivery
      of
      any such attestation required by this paragraph until March 10th in any given
      year.

     

    (c)  Promptly
      upon written request from the Depositor, each Servicer shall notify the Trustee
      and the Depositor as to the name of each Subservicer engaged by such Servicer
      and each Servicing Function Participant utilized by such Servicer and by each
      Subservicer engaged by such Servicer, but only to the extent there has been
      a
      change in the information in such notification from notices previously delivered
      and the Trustee shall notify the Depositor as to the name of each Servicing
      Function Participant utilized by it, and each such notice will specify what
      specific Servicing Criteria will be addressed in the report on assessment of
      compliance prepared by such Subservicer and Servicing Function Participant
      in
      each case, to the extent of any change from the prior year’s notice, if any.
      When a Servicer or the Trustee submits its assessment pursuant to Section
      3.23(a), such Servicer and the Trustee, as applicable, will also at such time
      include the assessment (and related attestation pursuant to Section 3.23(b))
      of
      each Servicing Function Participant utilized by it and by each Subservicer
      engaged by it.

     

    (d)  The
      obligations of the Trustee, the Servicers or Subservicer under this Section
      apply to the Trustee, and the Servicers and Subservicer that serviced a Mortgage
      Loan during the applicable period, whether or not such Trustee, Servicer or
      Subservicer is acting as Trustee, Servicer or Subservicer, as applicable, at
      the
      time such assessment of compliance with Servicing Criteria and related
      accountant’s attestation is required to be delivered.

     

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

     

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

     

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

     

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

     

    Section
      3.25  Compensating
      Interest.
      Each
      Servicer shall remit to the Trustee on each Remittance Date for deposit in
      the
      Distribution Account an amount from its own funds equal to the Compensating
      Interest payable by such Servicer for the related Distribution
      Date.

     

    Section
      3.26  Credit
      Reporting; Gramm-Leach-Bliley Act.
      (a)  With
      respect to each Mortgage Loan, each Servicer agrees to fully furnish, in
      accordance with the Fair Credit Reporting Act and its implementing regulations,
      accurate and complete information (e.g., favorable and unfavorable) on its
      borrower credit files to Equifax, Experian and TransUnion Credit Information
      Company (three of the credit repositories), on a monthly basis.

     

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

     

    Section
      3.27  Optional
      Purchase of Delinquent Mortgage Loans.
      Each
      Servicer (or its assignee), in its sole discretion, shall have the option,
      but
      shall not be obligated, to purchase any 90+ Day Delinquent Mortgage Loans from
      the Trust Fund. Such Servicer shall not use any procedure in selecting Mortgage
      Loans to be repurchased which is materially adverse to the interests of the
      Certificateholders. The purchase price for any such Mortgage Loan shall be
      100%
      of the unpaid principal balance of such Mortgage Loan plus accrued and unpaid
      interest on the related Mortgage Loan at the applicable Mortgage Interest Rate,
      plus the amount of any unreimbursed Servicing Advances made by the applicable
      Servicer. Upon receipt of such purchase price, the applicable Servicer shall
      provide to the Trustee a Request for Release and the Trustee shall promptly
      release to such Servicer the Mortgage File relating to the Mortgage Loan being
      purchased. In
      addition, the applicable Servicer agrees to exercise the option set forth in
      this Section 3.27 at the request of the Holder of the Class X-IO Certificates
      (so long as such Holder is not the Depositor or an Affiliate of the
      Depositor) or, if the Class X-IO Certificates have been pledged to secure debt
      issued under an indenture, the majority equity holder in such transaction (so
      long as such equity holder is not the Depositor or an Affiliate of the
      Depositor).

     

     

     

    ARTICLE
      IV

    DISTRIBUTIONS
      AND

    ADVANCES
      BY THE SERVICERS

     

    Section
      4.01  Advances.
      (a)  The
      amount of P&I Advances to be made by each Servicer for any Remittance Date
      shall equal, subject to Section 4.01(c), the sum of (i) the aggregate amount
      of
      Scheduled Payments (with each interest portion thereof net of the related
      Servicing Fee), due during the Due Period immediately preceding such Remittance
      Date in respect of the Mortgage Loans serviced by such Servicer, which Scheduled
      Payments were not received as of the close of business on the related
      Determination Date (provided, however, that with respect to any Balloon Loan
      that is delinquent on its maturity date, the applicable Servicer will not be
      required to advance the principal portion of the related balloon payment but
      will be required to continue to make P&I Advances in accordance with this
      Section 4.01(a) with respect to such Balloon Loan in an amount equal to the
      assumed scheduled interest that would otherwise be due based on the original
      amortization schedule for such Balloon Loan (with interest at the Adjusted
      Net
      Mortgage Rate)), plus (ii) with respect to each REO Property serviced by such
      Servicer, which REO Property was acquired during or prior to the related
      Prepayment Period and as to which such REO Property an REO Disposition did
      not
      occur during the related Prepayment Period, an amount equal to the excess,
      if
      any, of the Scheduled Payments (with each interest portion thereof net of the
      related Servicing Fee) that would have been due on the related Due Date in
      respect of the related Mortgage Loans, over the net income from such REO
      Property transferred to the related Collection Account for distribution on
      such
      Remittance Date.

     

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

     

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

     

    (d)  Notwithstanding
      anything herein to the contrary, no P&I Advance or Servicing Advance shall
      be required to be made hereunder by any Servicer if such P&I Advance or
      Servicing Advance would, if made, constitute a Nonrecoverable P&I Advance or
      Nonrecoverable Servicing Advance. The determination by any Servicer that it
      has
      made a Nonrecoverable P&I Advance or a Nonrecoverable Servicing Advance or
      that any proposed P&I Advance or Servicing Advance, if made, would
      constitute a Nonrecoverable P&I Advance or a Nonrecoverable Servicing
      Advance, respectively, shall be evidenced by an Officer’s Certificate of such
      Servicer delivered to the Trustee.

     

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

     

    Section
      4.02  Priorities
      of Distribution.
      (a)  On
      each Distribution Date, the Trustee shall allocate from amounts then on deposit
      in the Distribution Account in the following order of priority and to the extent
      of the Available Funds (including for this purpose any Senior Defaulted Swap
      Termination Payment to the extent received from a replacement swap provider)
      remaining and, on such Distribution Date, shall make distributions on the
      Certificates in accordance with such allocation:

     

    (i)  to
      the
      holders of each Class of Offered Certificates and to the Swap Account in the
      following order of priority:

     

    (A)  to
      the
      Swap Account, the sum of (x) all Net Swap Payments and (y) any Swap Termination
      Payment owed to the Swap Provider (to the extent a Replacement Swap Provider
      Payment has not been previously paid to the Swap Provider by the Trust), other
      than any Defaulted Swap Termination Payments;

     

    (B)  [from
      the
      Interest Remittance Amounts for both Loan Groups, to the Class A-1, Class A-2a,
      Class A-2b, Class A-2c and Class A-2d Certificates, the related Accrued
      Certificate Interest Distribution Amounts and any related Unpaid Interest
      Amounts for such Distribution Date pursuant to the allocation set forth in
      clauses (iv) and (v) of this Section 4.02(a);]

     

    (C)  from
      any
      remaining Interest Remittance Amounts, to the Class M-1 Certificates, the
      Accrued Certificate Interest Distribution Amount for such Class on such
      Distribution Date;

     

    (D)  from
      any
      remaining Interest Remittance Amounts, to the Class M-2 Certificates, the
      Accrued Certificate Interest Distribution Amount for such Class on such
      Distribution Date;

     

    (E)  from
      any
      remaining Interest Remittance Amounts, to the Class M-3 Certificates, the
      Accrued Certificate Interest Distribution Amount for such Class on such
      Distribution Date;

     

    (F)  from
      any
      remaining Interest Remittance Amounts, to the Class M-4 Certificates, the
      Accrued Certificate Interest Distribution Amount for such Class on such
      Distribution Date;

     

    (G)  from
      any
      remaining Interest Remittance Amounts, to the Class M-5 Certificates, the
      Accrued Certificate Interest Distribution Amount for such Class on such
      Distribution Date;

     

    (H)  from
      any
      remaining Interest Remittance Amounts, to the Class M-6 Certificates, the
      Accrued Certificate Interest Distribution Amount for such Class on such
      Distribution Date;

     

    (I)  from
      any
      remaining Interest Remittance Amounts, to the Class B-1 Certificates, the
      Accrued Certificate Interest Distribution Amount for such Class on such
      Distribution Date;

     

    (J)  from
      any
      remaining Interest Remittance Amounts, to the Class B-2 Certificates, the
      Accrued Certificate Interest Distribution Amount for such Class on such
      Distribution Date; 

     

    (K)  from
      any
      remaining Interest Remittance Amounts, to the Class B-3 Certificates, the
      Accrued Certificate Interest Distribution Amount for such Class on such
      Distribution Date; and

     

    (L)  from
      any
      remaining Interest Remittance Amounts, to the Class B-4 Certificates, the
      Accrued Certificate Interest Distribution Amount for such Class on such
      Distribution Date;

     

    (ii)  (A)on
      each
      Distribution Date (1) before the Stepdown Date or (2) with respect to
      which a Trigger Event is in effect, to the holders of the related Class or
      Classes of Offered Certificates then entitled to distributions of principal
      as
      set forth below, from amounts remaining on deposit in the Distribution Account
      after making distributions pursuant to clause (i) above, an amount
      equal to the Principal Distribution Amount in the following order of
      priority:

     

     

    (1) to
      the
      Class A Certificates, allocated as described in Sections 4.02(c) and (d), until
      the respective Class Certificate Balances thereof are reduced to zero;
      and

     

    (2) sequentially
      to the Class M-1, Class M-2, Class M-3, Class M-4,
      Class M-5, Class M-6, Class B-1, Class B-2, Class B-3 and Class B-4
      Certificates, in that order, until the respective Class Certificate Balances
      are
      reduced to zero;

     

    (B)  on
      each
      Distribution Date (1) on and after the Stepdown Date and (2) as long
      as a Trigger Event is not in effect, to the holders of the related Class or
      Classes of Offered Certificates then entitled to distribution of principal,
      from
      amounts remaining on deposit in the Distribution Account after making
      distributions pursuant to clause (i) above, an amount equal to, in the
      aggregate, the Principal Distribution Amount in the following amounts and order
      of priority:

     

    (1) to
      the
      Class A Certificates, the lesser of (x) the Principal Distribution Amount and
      (y) the Class A Principal Distribution Amount, allocated as described in
      Sections 4.02(c) and (d), until the respective Class Certificate Balances
      thereof are reduced to zero;

     

    (2) to
      the
      Class M-1 Certificates, the lesser of (x) the excess of (i) the
      Principal Distribution Amount over (ii) the amount distributed to the
      Class A Certificateholders in clause (ii)(B)(a) above and
      (y) the Class M-1 Principal Distribution Amount, until the Class
      Certificate Balance thereof has been reduced to zero;

     

    (3) to
      the
      Class M-2 Certificates, the lesser of (x) the excess of (i) the
      Principal Distribution Amount over (ii) the amount distributed to the
      Class A Certificateholders in clause (ii)(B)(a) above and to the
      Class M-1 Certificates in clause (ii)(B)(b) above and
      (y) the Class M-2 Principal Distribution Amount, until the Class
      Certificate Balance thereof has been reduced to zero;

     

    (4) to
      the
      Class M-3 Certificates, the lesser of (x) the excess of (i) the
      Principal Distribution Amount over (ii) the amount distributed to the
      Class A Certificateholders in clause (ii)(B)(a) above, to the
      Class M-1 Certificates in clause (ii)(B)(b) above and to the
      Class M-2 Certificates in clause (ii)(B)(c) above and
      (y) the Class M-3 Principal Distribution Amount, until the Class
      Certificate Balance thereof has been reduced to zero;

     

    (5) to
      the
      Class M-4 Certificates, the lesser of (x) the excess of (i) the
      Principal Distribution Amount over (ii) the amount distributed to the
      Class A Certificateholders in clause (ii)(B)(a) above, to the
      Class M-1 Certificates in clause (ii)(B)(b) above, to the
      Class M-2 Certificates in clause (ii)(B)(c) above and to the
      Class M-3 Certificates in clause (ii)(B)(d) above and (y) the
      Class M-4 Principal Distribution Amount, until the Class Certificate
      Balance thereof has been reduced to zero;

     

    (6) to
      the
      Class M-5 Certificates, the lesser of (x) the excess of (i) the
      Principal Distribution Amount over (ii) the amount distributed to the
      Class A Certificateholders in clause (ii)(B)(a) above, to the
      Class M-1 Certificates in clause (ii)(B)(b) above, to the
      Class M-2 Certificates in clause (ii)(B)(c) above, to the
      Class M-3 Certificates in clause (ii)(B)(d) above and to the
      Class M-4 Certificates in clause (ii)(B)(e) above and (y) the
      Class M-5 Principal Distribution Amount, until the Class Certificate
      Balance thereof has been reduced to zero;

     

    (7) to
      the
      Class M-6 Certificates, the lesser of (x) the excess of (i) the
      Principal Distribution Amount over (ii) the amount distributed to the
      Class A Certificateholders in clause (ii)(B)(a) above, to the
      Class M-1 Certificates in clause (ii)(B)(b) above, to the
      Class M-2 Certificates in clause (ii)(B)(c) above, to the
      Class M-3 Certificates in clause (ii)(B)(d) above, to the
      Class M-4 Certificates in clause (ii)(B)(e) above and to the
      Class M-5 Certificates in clause (ii)(B)(f) above and (y) the
      Class M-6 Principal Distribution Amount, until the Class Certificate
      Balance thereof has been reduced to zero;

     

    (8) to
      the
      Class B-1 Certificates, the lesser of (x) the excess of (i) the
      Principal Distribution Amount over (ii) the amount distributed to the
      Class A Certificateholders in clause (ii)(B)(a) above, to the
      Class M-1 Certificates in clause (ii)(B)(b) above, to the
      Class M-2 Certificates in clause (ii)(B)(c) above, to the
      Class M-3 Certificates in clause (ii)(B)(d) above, to the
      Class M-4 Certificates in clause (ii)(B)(e) above, to the
      Class M-5 Certificates in clause (ii)(B)(f) above and to the
      Class M-6 Certificates in clause (ii)(B)(g) above and (y) the
      Class B-1 Principal Distribution Amount, until the Class Certificate
      Balance thereof has been reduced to zero;

     

    (9) to
      the
      Class B-2 Certificates, the lesser of (x) the excess of (i) the
      Principal Distribution Amount over (ii) the amount distributed to the
      Class A Certificateholders in clause (ii)(B)(a) above, to the
      Class M-1 Certificates in clause (ii)(B)(b) above, to the
      Class M-2 Certificates in clause (ii)(B)(c) above, to the
      Class M-3 Certificates in clause (ii)(B)(d) above, to the
      Class M-4 Certificates in clause (ii)(B)(e) above, to the
      Class M-5 Certificates in clause (ii)(B)(f) above, to the
      Class M-6 Certificates in clause (ii)(B)(g) above and to the
      Class B-1 Certificates in clause (ii)(B)(h) above and (y) the
      Class B-2 Principal Distribution Amount, until the Class Certificate
      Balance thereof has been reduced to zero; 

     

    (10) to
      the
      Class B-3 Certificates, the lesser of (x) the excess of (i) the
      Principal Distribution Amount over (ii) the amount distributed to the
      Class A Certificateholders in clause (ii)(B)(a) above, to the
      Class M-1 Certificates in clause (ii)(B)(b) above, to the
      Class M-2 Certificates in clause (ii)(B)(c) above, to the
      Class M-3 Certificates in clause (ii)(B)(d) above, to the
      Class M-4 Certificates in clause (ii)(B)(e) above, to the
      Class M-5 Certificates in clause (ii)(B)(f) above, to the
      Class M-6 Certificates in clause (ii)(B)(g) above, to the
      Class B-1 Certificates in clause (ii)(B)(h) above and to the
      Class B-2 Certificates in clause (ii)(B)(i) above and
      (y) the Class B-3 Principal Distribution Amount, until the Class
      Certificate Balance thereof has been reduced to zero; and 

     

    (11) to
      the
      Class B-4 Certificates, the lesser of (x) the excess of (i) the
      Principal Distribution Amount over (ii) the amount distributed to the
      Class A Certificateholders in clause (ii)(B)(a) above, to the
      Class M-1 Certificates in clause (ii)(B)(b) above, to the
      Class M-2 Certificates in clause (ii)(B)(c) above, to the
      Class M-3 Certificates in clause (ii)(B)(d) above, to the
      Class M-4 Certificates in clause (ii)(B)(e) above, to the
      Class M-5 Certificates in clause (ii)(B)(f) above, to the
      Class M-6 Certificates in clause (ii)(B)(g) above, to the
      Class B-1 Certificates in clause (ii)(B)(h) above, to the
      Class B-2 Certificates in clause (ii)(B)(i) above and to the
      Class B-3 Certificates in clause (ii)(B)(j) above and
      (y) the Class B-4 Principal Distribution Amount, until the Class
      Certificate Balance thereof has been reduced to zero; 

     

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

     

    (A)  to
      the
      Class M-1 Certificates, any Unpaid Interest Amount for such
      Class;

     

    (B)  to
      the
      Class M-1 Certificates, any Unpaid Realized Loss Amount for such
      Class;

     

    (C)  to
      the
      Class M-2 Certificates, any Unpaid Interest Amount for such
      Class;

     

    (D)  to
      the
      Class M-2 Certificates, any Unpaid Realized Loss Amount for such
      Class;

     

    (E)  to
      the
      Class M-3 Certificates, any Unpaid Interest Amount for such
      Class;

     

    (F)  to
      the
      Class M-3 Certificates, any Unpaid Realized Loss Amount for such
      Class;

     

    (G)  to
      the
      Class M-4 Certificates, any Unpaid Interest Amount for such
      Class;

     

    (H)  to
      the
      Class M-4 Certificates, any Unpaid Realized Loss Amount for such
      Class;

     

    (I)  to
      the
      Class M-5 Certificates, any Unpaid Interest Amount for such
      Class;

     

    (J)  to
      the
      Class M-5 Certificates, any Unpaid Realized Loss Amount for such
      Class;

     

    (K)  to
      the
      Class M-6 Certificates, any Unpaid Interest Amount for such
      Class;

     

    (L)  to
      the
      Class M-6 Certificates, any Unpaid Realized Loss Amount for such
      Class;

     

    (M)  to
      the
      Class B-1 Certificates, any Unpaid Interest Amount for such
      Class;

     

    (N)  to
      the
      Class B-1 Certificates, any Unpaid Realized Loss Amount for such
      Class;

     

    (O)  to
      the
      Class B-2 Certificates, any Unpaid Interest Amount for such
      Class;

     

    (P)  to
      the
      Class B-2 Certificates, any Unpaid Realized Loss Amount for such
      Class;

     

    (Q)  to
      the
      Class B-3 Certificates, any Unpaid Interest Amount for such
      Class;

     

    (R)  to
      the
      Class B-3 Certificates, any Unpaid Realized Loss Amount for such
      Class;

     

    (S)  to
      the
      Class B-4 Certificates, any Unpaid Interest Amount for such
      Class;

     

    (T)  to
      the
      Class B-4 Certificates, any Unpaid Realized Loss Amount for such
      Class;

     

    (U)  to
      the
      Excess Reserve Fund Account, the amount of any Basis Risk Payment (without
      regard to Net Swap Receipts) for such Distribution Date;

     

    (V)  from
      any
      Interest Rate Cap Payment on deposit in the Excess Reserve Fund Account with
      respect to such Distribution Date, an amount equal to any unpaid Basis Risk
      CarryForward Amount with respect to the Offered Certificates for that
      Distribution Date, allocated (a) first, among those classes of certificates,
pro
      rata,
      based
      upon their respective Class Certificate Balances and (b) second, any remaining
      amounts allocated among those classes of certificates, pro
      rata,
      based
      on any Basis Risk CarryForward Amounts remaining unpaid, in order to reimburse
      such amounts;

     

    (W)  from
      funds on deposit in the Excess Reserve Fund Account (not including any Interest
      Rate Cap Payment included in that account) with respect to such Distribution
      Date, an amount equal to any remaining Basis Risk CarryForward Amount with
      respect to the Offered Certificates for such Distribution Date, allocated to
      the
      Offered Certificates in the same order and priority in which the Accrued
      Certificate Interest Distribution Amount is allocated among such Classes of
      Certificates, with the allocation to the Class A Certificates being
      (a) first, among the Class A Certificates, pro
      rata,
      based
      on their respective Class Certificate Balances and (b) second, any
      remaining amounts to the Class A Certificates, pro
      rata,
      based
      on any Basis Risk CarryForward Amounts remaining unpaid, in order to reimburse
      such unpaid amounts;

     

    (X)  to
      the
      Swap Account, the amount of any remaining Defaulted Swap Termination Payment
      owed to the Swap Provider;

     

    (Y)  to
      the
      Class X Certificates, the remainder of the Class X Distributable
      Amount not distributed pursuant to Sections 4.02(a)(iii)(A)-(U);
      and

     

    (Z)  if
      such
      Distribution Date follows the Prepayment Period during which occurs the latest
      date on which a Prepayment Charge may be required to be paid in respect of
      any
      Mortgage Loan, to the Class P Certificates, in reduction of the Class
      Certificate Balance thereof; and 

     

    (AA)  to
      the
      Residual Certificates, any remaining amount in the Trust REMICs.

     

    (iv)  Solely
      for purposes of interest allocation calculations, the Interest Remittance Amount
      attributable to Group I Mortgage Loans will be allocated:

     

    (1)  first,
      to
      the Class A-1 Certificates, the Accrued Certificate Interest Distribution Amount
      and any Unpaid Interest Amount for the Class A-1 Certificates; and

     

    (2)  second,
      concurrently, to the Class A-2a, Class A-2b, Class A-2c, and Class A-2d
      Certificates, pro
      rata
      (based
      on the amounts distributable or payable under Section 4.02(a)(i)(B) to such
      Classes of Certificates), the Accrued Certificate Interest Distribution Amount
      and any Unpaid Interest Amount for the Class A-2a, Class A-2b, Class A-2c and
      Class A-2d Certificates, respectively, to the extent not otherwise previously
      paid from the Interest Remittance Amount attributable to Group II Mortgage
      Loans.

     

    (v)  Solely
      for purposes of interest allocation calculations, the Interest Remittance Amount
      attributable to Group II Mortgage Loans will be allocated:

     

    (1)  first,
      concurrently, to the Class A-2a, Class A-2b, Class A-2c and Class A-2d
      Certificates, pro
      rata
      (based
      on the amounts distributable or payable under Section 4.02(a)(i)(B) to such
      Classes of Certificates), the Accrued Certificate Interest Distribution Amount
      and any Unpaid Interest Amount for the Class A-2a, Class A-2b, Class A-2c and
      Class A-2d Certificates, respectively; and

     

    (2)  second,
      to the Class A-1 Certificates, the Accrued Certificate Interest Distribution
      Amount and any Unpaid Interest Amount for the Class A-1 Certificates, to the
      extent not otherwise previously paid from the Interest Remittance Amount
      attributable to Group I Mortgage Loans

     

    If
      on any
      Distribution Date, as a result of the foregoing allocation rules, any Class
      of
      Class A Certificates does not receive in full the related Accrued
      Certificate Interest Distribution Amount or the related Unpaid Interest Amount,
      if any, then such shortfall will be allocated to the Holders of such Class,
      with
      interest thereon, on future Distribution Dates, as an Unpaid Interest Amount,
      subject to the priorities described above.

     

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

     

    (c)  All
      principal distributions to the Holders of the Class A Certificates on any
      Distribution Date shall be allocated concurrently between the Group I Class
      A
      Certificates, on the one hand, and the Group II Class A Certificates, on the
      other hand, on a pro
      rata
      basis,
      based on the Class A Principal Allocation Percentage for the Group I Class
      A
      Certificates and the Group II Class A Certificates, as applicable, for such
      Distribution Date; provided, however, that if the Class Certificate Balances
      of
      the Class A Certificates in either Class A Certificate Group are reduced to
      zero, then the remaining amount of principal distributions distributable to
      the
      Class A Certificates on such Distribution Date, and the amount of such principal
      distributions distributable on all subsequent Distribution Dates, shall be
      distributed to the holders of the Class A Certificates in the other Class A
      Certificate Group remaining Outstanding, in accordance with the principal
      distribution allocations described in this Section 4.02(c), until their
      respective Class Certificate Balances have been reduced to zero. Any
      distributions of principal to the Group I Class A Certificates shall be made
      first from Available Funds relating to the Group I Mortgage Loans, and any
      distributions of principal to the Group II Class A Certificates shall be made
      first from Available Funds relating to the Group II Mortgage Loans.

     

    (d)  Any
      principal distributions allocated to the Group II Class A Certificates shall
      be
      allocated sequentially to the Class A-2a, Class A-2b, Class A-2c and Class
      A-2d
      Certificates, in that order`, until their respective Class Certificate Balance
      has been reduced to zero. Notwithstanding the foregoing, on and after the
      Distribution Date on which the aggregate Class Certificate Balances of the
      Subordinated Certificates and the principal balance of the Class X Certificates
      have been reduced to zero, any principal distributions allocated to the Group
      II
      Class A Certificates shall be allocated pro
      rata
      among
      the Classes of Group II Class A Certificates, based on their respective Class
      Certificate Balances, until their respective Class Certificate Balances have
      been reduced to zero.

     

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

     

    
      	 	
              (1)

            	
              first,
                to the portion of the Class X Distributable Amount allocable to interest;
                and

            

    

     

    
      	 	
              (2)

            	
              second,
                pro
                rata,
                as a reduction of the Accrued Certificate Interest Distribution Amount
                for
                the Class A, Class M and Class B Certificates, based on the
                amount of interest to which such Classes would otherwise be
                entitled.

            

    

     

    Notwithstanding
      any other provision of this Agreement, the Trustee shall comply with all federal
      withholding requirements respecting payments made or received under the Interest
      Rate Swap Agreement and the Interest Rate Cap Agreement and 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. If 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. Such amounts shall be deemed to have been distributed to
      such Certificateholders for all purposes of this Agreement.

     

    For
      purposes of this Agreement, any Net Swap Payments or Swap Termination Payments
      (other than Defaulted Swap Termination Payments) shall be allocated by the
      Trustee between Loan Groups based on the respective aggregate Stated Principal
      Balance of the Mortgage Loans in each Loan Group.

     

    Section
      4.03  Monthly
      Statements to Certificateholders.
      (a)  Not
      later than each Distribution Date, the Trustee shall make available to each
      Certificateholder, the Servicers, the Depositor and each Rating Agency a
      statement setting forth with respect to the related distribution:

     

    (i)  the
      actual Distribution Date, the related Record Date, the Interest Accrual
      Period(s) for each Class for such Distribution Date and the LIBOR Determination
      Date for such Interest Accrual Period;

     

    (ii)  the
      amount of Available Funds;

     

    (iii)  the
      amount of Available Funds allocable to principal, the Principal Remittance
      Amount (separately identifying the components thereof) and the Principal
      Distribution Amount (separately identifying the components
      thereof);

     

    (iv)  the
      amount of Available Funds allocable to interest and each Interest Remittance
      Amount;

     

    (v)  the
      amount of any Unpaid Interest Amount for each Class included in such
      distribution and any remaining Unpaid Interest Amounts after giving effect
      to
      such distribution, any Basis Risk CarryForward Amount for each Class and the
      amount of such Basis Risk CarryForward Amount covered by withdrawals from the
      Excess Reserve Fund Account on such Distribution Date;

     

    (vi)  if
      the
      distribution to the Holders of such Class of Certificates is less than the
      full
      amount that would be distributable to such Holders if there were sufficient
      funds available therefor, the amount of the shortfall and the allocation of
      the
      shortfall as between principal and interest, including any Basis Risk
      CarryForward Amount not covered by amounts in the Excess Reserve Fund
      Account;

     

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

     

    (viii)  the
      Pool
      Stated Principal Balance for the related Distribution Date;

     

    (ix)  the
      amount of the Expense Fees paid to or retained by the Servicers and the Trustee
      (stated separately and in the aggregate) with respect to such Distribution
      Date;

     

    (x)  the
      Pass-Through Rate for each such Class of Certificates with respect to such
      Distribution Date;

     

    (xi)  the
      amount of P&I Advances included in the distribution on such Distribution
      Date reported by the Servicers (and the Trustee as successor servicer and any
      other successor servicer, if applicable) as of the close of business on the
      Determination Date immediately preceding such Distribution Date;

     

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

     

    (xiii)  with
      respect to any Mortgage Loans that became REO Properties during the preceding
      calendar month, the aggregate number of such Mortgage Loans and the aggregate
      Stated Principal Balance of such Mortgage Loans as of the close of business
      on
      the last Business Day of the immediately preceding month;

     

    (xiv)  the
      total
      number and outstanding principal balance of any REO Properties (and market
      value, if available) as of the close of business on the last Business Day of
      the
      immediately preceding month;

     

    (xv)  whether
      a
      Trigger Event has occurred and is continuing (separately identifying the
      components of the calculation resulting in the existence of the Trigger Event
      and the aggregate outstanding balance of all 60+ Day Delinquent Mortgage
      Loans);

     

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

     

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

     

    (xviii)  the
      amount of any Net Monthly Excess Cash Flow on such Distribution Date and the
      allocation of it to the Certificateholders with respect to Unpaid Interest
      Amounts, Unpaid Realized Loss Amounts, and Basis Risk CarryForward
      Amounts;

     

    (xix)  the
      amount of any Net Swap Payments, Net Swap Receipts, Swap Termination Payments
      or
      Defaulted Swap Termination Payments;

     

    (xx)  the
      rates
      of LIBOR and Swap LIBOR, as calculated by or provided to the Trustee, as
      applicable;

     

    (xxi)  the
      Subordinated Amount and Specified Subordinated Amount;

     

    (xxii)  Prepayment
      Charges collected or paid (pursuant to Section 3.07(a)) by the
      Servicers;

     

    (xxiii)  the
      Cumulative Loss Percentage and the aggregate amount of Realized Losses used
      to
      calculate the Cumulative Loss Percentage;

     

    (xxiv)  the
      amount distributed on the Class X Certificates;

     

    (xxv)  the
      amount of any Subsequent Recoveries for such Distribution Date;

     

    (xxvi)  the
      number of Mortgage Loans at the beginning and end of the applicable reporting
      period, the pool factor (being the Stated Principal Balance of the Mortgage
      Loans for the related Distribution Date divided by the Cut-off Date Principal
      Balance), and the weighted average interest rate, and weighted average remaining
      term; and

     

    (xxvii)  the
      Interest Rate Cap Payment, if any, for such Distribution Date.

     

    In
      addition, each Form 10-D prepared and filed by the Trustee pursuant to
      Section 8.12 shall include the following information with respect to the
      related distribution:

     

    (i)  material
      breaches of Mortgage Loan representations and warranties under this Agreement
      of
      which the Trustee has actual knowledge or has received written notice;
      and

     

    (ii)  material
      breaches of any covenants under this Agreement of which the Trustee has actual
      knowledge or has received written notice; 

     

    provided
      that,
      if the
      Trustee receives written notice of the events described in (i) and/or (ii)
      above
      from any Servicer, such Servicer shall be responsible for providing information
      to the Trustee for inclusion in the applicable Form 10-D.

     

    (b)  The
      Trustee’s responsibility for providing the above statement to the
      Certificateholders, each Rating Agency, and the Depositor is limited, if
      applicable, to the availability, timeliness and accuracy of the information
      derived from the Swap Provider, the Servicers and the Responsible Party. The
      Trustee shall make available the above statement via the Trustee’s internet
      website. The Trustee’s website will initially be located at
      https://www.tss.db.com/invr and assistance in using the website can be obtained
      by calling the Trustee’s investor relations desk at 1-800-735-7777. Parties that
      are unable to use the website are entitled to have a paper copy mailed to them
      via first class mail by calling the investor relations desk and indicating
      such.
      The Trustee may change the way the monthly statements to Certificateholders
      are
      distributed in order to make such distribution more convenient and/or more
      accessible to the above parties and the Trustee shall provide timely and
      adequate notification to all above parties regarding any such changes. As a
      condition to access the Trustee’s internet website, the Trustee may require
      registration and the acceptance of a disclaimer. The Trustee will not be liable
      for the dissemination of information in accordance with this
      Agreement.

     

    The
      Trustee shall make available to each Analytics Company, either electronically
      or
      via the Trustee’s internet website, each statement to Certificateholders
      prepared pursuant to Section 4.03(b). The Trustee (and the applicable Servicer,
      if such discrepancy results from or arises out of any information provided
      by
      the applicable Servicer pursuant to this Agreement) shall cooperate in good
      faith with the Depositor to reconcile any discrepancies in such statements,
      and
      the Trustee shall provide any corrections to such statements to each Analytics
      Company as soon as reasonably practicable after the related Distribution
      Date.

     

    The
      Trustee will also be entitled to rely on but shall not be responsible for the
      content or accuracy of any information provided by third parties for purposes
      of
      preparing the monthly statement to Certificateholders and may affix thereto
      any
      disclaimer it deems appropriate in its reasonable discretion (without suggesting
      liability on the part of any other party hereto).

     

    (c)  Within
      a
      reasonable period of time after the end of each calendar year, the Trustee
      shall
      cause to be furnished to each Person who at any time during the calendar year
      was a Certificateholder, a statement containing the information set forth in
      clauses (a)(i) and (a)(ii) of this Section 4.03 aggregated
      for such calendar year or applicable portion thereof during which such Person
      was a Certificateholder. Such obligation of the Trustee shall be deemed to
      have
      been satisfied to the extent that substantially comparable information shall
      be
      provided by the Trustee pursuant to any requirements of the Code as from time
      to
      time in effect.

     

    (d)  On
      the
      18th
      day of
      each month, or if such date is not a Business Day, the next succeeding Business
      Day (but in no event later than the 20th
      day of
      each month), each Servicer shall furnish to the Trustee, a monthly remittance
      advice statement (the “Servicer
      Remittance Report”)
      containing the data fields set forth on Exhibit W-1 attached hereto, in the
      case
      of Saxon, or Exhibit W-2 attached hereto, in the case of Countrywide Servicing,
      in a format mutually agreed upon by such Servicer and the Trustee and such
      information as shall be reasonably requested (i) by the Depositor to enable
      the
      Depositor to disclose “static pool information”, as required by Item 1105 of
      Regulation AB, with respect to the Mortgage Loans, and (ii) by the Trustee
      to
      enable the Trustee to provide the reports required by Section 4.03(a) as to
      the
      accompanying remittance and applicable Due Period and Prepayment Period to
      which
      such remittance relates. 

     

    The
      Servicer Remittance Report shall, at a minimum, document, on such Determination
      Date, Mortgage Loan payment activity on an individual Mortgage Loan basis,
      as
      follows:

     

    (i) with
      respect to each Scheduled Payment, the amount of such remittance allocable
      to
      principal (including a separate breakdown of any Principal Prepayment, including
      the date of such prepayment, and any Prepayment Charges, received during the
      related Prepayment Period along with a detailed report of interest on principal
      prepayment amounts remitted in accordance with Section 3.25);

     

    (ii) with
      respect to each Scheduled Payment, the amount of such remittance allocable
      to
      interest;

     

    (iii) the
      amount of servicing compensation received by such Servicer during the current
      distribution period; 

     

    (iv) the
      individual and aggregate Stated Principal Balance of the Mortgage
      Loans;

     

    (v) the
      aggregate expenses reimbursed to such Servicer during the prior distribution
      period pursuant to Section 3.11; and

     

    (vi) the
      number and aggregate outstanding principal balances of Mortgage Loans (a)
      delinquent 31 to 60 days, 61 to 90 days and 91 or more days; (b) as to which
      foreclosure or bankruptcy proceedings of the related mortgagor have commenced;
      and (c) as to which REO Property has been acquired.

     

    The
      Trustee shall promptly forward the Servicer Remittance Report and the related
      supplemental statement to the Depositor.

     

    (e)  Notwithstanding
      anything in Section 4.03(d) to the contrary, each Servicer shall be deemed
      to
      have satisfied the requirement to timely deliver the Servicer Remittance Report
      if such report is received by the Trustee on or prior to the 18th calendar
      day
      of such month in which the related Determination Date occurs; provided, however,
      that if such 18th calendar day is a Sunday or a Monday which is not a Business
      Day, each Servicer shall be deemed to have satisfied the requirement to timely
      deliver the Servicer Remittance Report if the Trustee and the Depositor receive
      such report (i) on the next Business Day succeeding such 18th calendar day,
      or
      (ii) on the Business Day immediately preceding such 18th calendar day, if such
      succeeding Business Day is later than the 20th calendar day of such calendar
      month.

     

    (f)  For
      all
      purposes of this Agreement, with respect to any Mortgage Loan, delinquencies
      shall be determined by the Trustee from information provided by each Servicer
      and reported by the Trustee based on the OTS methodology for determining
      delinquencies on mortgage loans similar to the Mortgage Loans. By way of
      example, a Mortgage Loan would be delinquent with respect to a Scheduled Payment
      due on a Due Date if such Scheduled Payment is not made by the close of business
      on the Mortgage Loan's next succeeding Due Date, and a Mortgage Loan would
      be
      more than 30-days Delinquent with respect to such Scheduled Payment if such
      Scheduled Payment were not made by the close of business on the Mortgage Loan’s
      second succeeding Due Date. Each Servicer hereby represents and warrants to
      the
      Depositor that such Servicer is not subject to any delinquency recognition
      policy established by the primary safety and soundness regulator, if any, of
      such Servicer, that is more restrictive than the foregoing delinquency
      recognition policy.

     

    Section
      4.04  Certain
      Matters Relating to the Determination of LIBOR.
      LIBOR
      shall be calculated by the Trustee in accordance with the definition of “LIBOR”.
      Until all of the Offered Certificates are paid in full, the Trustee shall at
      all
      times retain at least four Reference Banks for the purpose of determining LIBOR
      with respect to each LIBOR Determination Date. The Trustee initially shall
      designate the Reference Banks (after consultation with the Depositor). Each
      “Reference
      Bank”
shall
      be a leading bank engaged in transactions in Eurodollar deposits in the
      international Eurocurrency market, shall not control, be controlled by, or
      be
      under common control with, the Trustee and shall have an established place
      of
      business in London. If any such Reference Bank should be unwilling or unable
      to
      act as such or if the Trustee should terminate its appointment as Reference
      Bank, the Trustee shall promptly appoint or cause to be appointed another
      Reference Bank (after consultation with the Depositor). The Trustee shall have
      no liability or responsibility to any Person for (i) the selection of any
      Reference Bank for purposes of determining LIBOR or (ii) any inability to
      retain at least four Reference Banks which is caused by circumstances beyond
      its
      reasonable control.

     

    The
      Pass-Through Rate for each Class of Offered Certificates for each Interest
      Accrual Period shall be determined by the Trustee on each LIBOR Determination
      Date so long as the Offered Certificates are Outstanding on the basis of LIBOR
      and the respective formulae appearing in footnotes corresponding to the Offered
      Certificates in the table relating to the Certificates in the Preliminary
      Statement. The Trustee shall not have any liability or responsibility to any
      Person for its inability, following a good-faith reasonable effort, to obtain
      quotations from the Reference Banks or to determine the arithmetic mean referred
      to in the definition of LIBOR, all as provided for in this Section 4.04 and
      the definition of LIBOR. The establishment of LIBOR and each Pass-Through Rate
      for the Offered Certificates by the Trustee shall (in the absence of manifest
      error) be final, conclusive and binding upon each Holder of a Certificate and
      the Trustee.

     

    Section
      4.05  Allocation
      of Applied Realized Loss Amounts.
      Any
      Applied Realized Loss Amounts shall be allocated by the Trustee to the most
      junior Class of Subordinated Certificates then Outstanding in reduction of
      the
      Class Certificate Balance thereof.

     

    Section
      4.06  Swap
      Account.
      On the
      Closing Date, there is hereby established the Supplemental Interest Trust,
      into
      which the Depositor shall deposit the Interest Rate Swap Agreement and the
      Interest Rate Cap Agreement. The Supplemental Interest Trust shall be maintained
      by the Supplemental Interest Trust Trustee. On the Closing Date, the
      Supplemental Interest Trust Trustee shall establish and maintain in its name,
      a
      separate non-interest bearing trust account for the benefit of the holders
      of
      the Certificates (the “Swap
      Account”)
      as a
      part of the Trust Fund. The Swap Account shall be an Eligible Account, and
      funds
      on deposit therein shall be held separate and apart from, and shall not be
      commingled with, any other moneys, including, without limitation, other moneys
      of the Trustee held pursuant to this Agreement.

     

    On
      any
      Distribution Date, Swap Termination Payments, Net Swap Payments owed to the
      Swap
      Provider and Net Swap Receipts for that Distribution Date will be deposited
      into
      the Swap Account. Funds in the Swap Account will be distributed in the following
      order of priority:

     

    (i)  to
      the
      Swap Provider, all Net Swap Payments, if any, owed to the Swap Provider for
      that
      Distribution Date;

     

    (ii)  to
      the
      Swap Provider, any Swap Termination Payment, other than a Defaulted Swap
      Termination Payment, owed to the Swap Provider for that Distribution
      Date;

     

    (iii)  to
      the
      Class A Certificates, to pay Accrued Certificate Interest Distribution
      Amounts and, if applicable, any Unpaid Interest Amounts as described in
      Section 4.02(a)(i), to the extent unpaid from Available Funds;

     

    (iv)  sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4,
      Class M-5, Class M-6, Class B-1, Class B-2, Class B-3 and Class B-4
      Certificates, in that order, to pay Accrued Certificate Interest Distribution
      Amounts and, if applicable, any Unpaid Interest Amounts as described in
      Section 4.02(a)(i) and Section 4.02(a)(iii), to the extent unpaid from
      Available Funds;

     

    (v)  to
      the
      Offered Certificates, to pay principal as described and, in the same manner
      and
      order of priority as set forth, in Section 4.02(a)(ii)(A) or
      Section 4.02(a)(ii)(B), as applicable, but only to the extent necessary to
      restore the Subordinated Amount to the Specified Subordinated Amount for prior
      or current Realized Losses not previously reimbursed, after giving effect to
      payments and distributions from Available Funds;

     

    (vi)  to
      the
      Class A Certificates, to pay Basis Risk CarryForward Amounts, pro
      rata,
      based
      on their Class Certificate Balances for such Distribution Date, up to the Swap
      Payment Allocation for each Class of Class A Certificates and to the extent
      unpaid from Available Funds (including Basis Risk Payments on deposit in the
      Excess Reserve Fund Account);

     

    (vii)  sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4,
      Class M-5, Class M-6, Class B-1, Class B-2, Class B-3 and Class B-4
      Certificates, to pay Basis Risk CarryForward Amounts, up to the Swap Payment
      Allocation for each Class of Class M and Class B Certificates and to
      the extent unpaid from Available Funds (including Basis Risk Payments on deposit
      in the Excess Reserve Fund Account);

     

    (viii)  to
      the
      Offered Certificates, any remaining unpaid Basis Risk CarryForward Amount,
      pro
      rata,
      based
      on their respective remaining unpaid Basis Risk CarryForward Amount after the
      allocation of payments as set forth in clauses (vi) and (vii)
      above;

     

    (ix)  sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4,
      Class M-5, Class M-6, Class B-1, Class B-2, Class B-3 and Class B-4
      Certificates, to pay any Unpaid Realized Loss Amount, to the extent unpaid
      from
      Available Funds;

     

    (x)  to
      the
      Swap Provider, any remaining Defaulted Swap Termination Payment owed to the
      Swap
      Provider for that Distribution Date; and

     

    (xi)  to
      the
      holders of the Class X Certificates, any remaining amounts.

     

    Notwithstanding
      the foregoing, in the event that the Supplemental Interest Trust receives a
      Swap
      Termination Payment, the Supplemental Interest Trust Trustee shall use the
      Swap
      Termination Payment to enter into a replacement interest rate swap agreement
      as
      directed by the Depositor with a successor Swap Provider (or its guarantor)
      meeting the ratings requirements set forth in the Interest Rate Swap Agreement
      being terminated on the same remaining terms as those in the Interest Rate
      Swap
      Agreement being terminated, so long as the Swap Termination Payment is
      sufficient to obtain such replacement interest rate swap agreement. In the
      event
      that the Supplemental Interest Trust receives a Swap Termination Payment and
      a
      successor Swap Provider cannot be obtained, then the Supplemental Interest
      Trust
      Trustee shall deposit the Swap Termination Payment into the reserve account
      that
      is a sub-account of the Swap Account. On each subsequent Distribution Date
      (so
      long as funds are available in the reserve account), the Supplemental Interest
      Trust Trustee shall withdraw from the reserve account and deposit into the
      Swap
      Account an amount equal to the amount of any Net Swap Receipt due the
      Supplemental Interest Trust (calculated in accordance with the terms of the
      original Interest Rate Swap Agreement) and treat such amount as a Net Swap
      Receipt for purposes of determining the distributions from the Swap Account.
      In
      no event shall the Supplemental Interest Trust Trustee be responsible for the
      selection of any successor or replacement swap provider or any shortfalls caused
      by a failure to enter into a replacement interest rate swap
      agreement.

     

    Upon
      termination of the Trust, any amounts remaining in the Swap Account shall be
      distributed pursuant to the priorities set forth in this
      Section 4.06.

     

    In
      the
      event that, upon the Supplemental Interest Trust entering into a replacement
      interest rate swap agreement and the Supplemental Interest Trust is entitled
      to
      receive a Replacement Swap Provider Payment, the Supplemental Interest Trust
      Trustee shall direct the replacement swap provider to make such payment to
      the
      Swap Account. Notwithstanding the foregoing, any Replacement Swap Provider
      Payment shall be made from the Swap Account to the Swap Provider immediately
      upon receipt of such payment, regardless of whether the date of receipt thereof
      is a Distribution Date. To the extent that any Replacement Swap Provider Payment
      is made to an account other than the Swap Account, then any Replacement Swap
      Provider Payment shall be paid to the Swap Provider immediately upon receipt
      of
      such Replacement Swap Provider Payment by the Trust, regardless of whether
      the
      date of receipt thereof is a Distribution Date and without regard to anything
      to
      the contrary contained in this Agreement. For the avoidance of doubt, the
      parties agree that the Swap Provider shall have first priority to any
      Replacement Swap Provider Payment over the payment by the Trust to
      Certificateholders, the Servicers, the Responsible Party, the Trustee or any
      other Person. However, to the extent any Replacement Swap Provider Payment
      received from a replacement swap provider and paid to the Swap Provider being
      replaced is less than the full amount of a Swap Termination Payment owed to
      the
      Swap Provider, any remaining amount of the Swap Termination Payment shall be
      paid to the Swap Provider on the subsequent Distribution Dates in accordance
      with this Section 4.06 and Section 4.02 (unless the Replacement Swap Provider
      Payment is paid to the Swap Provider on a Distribution Date, in which case
      such
      remaining amounts will be paid on such Distribution Date).

     

    The
      beneficial owners of the Swap Account are the Class X Certificateholders. For
      federal income tax purposes, Net Swap Payments and Swap Termination Payments
      payable to the Swap Provider shall be deemed to be paid to the Swap Account
      from
      REMIC VI, first, by the REMIC VI Regular Interest Swap-IO and second, other
      than
      any Defaulted Swap Termination Payment, from REMIC III by the Holders of the
      applicable Class or Classes of Offered Certificates (in respect of Class IO
      Shortfalls) as and to the extent provided in Section 8.13.

     

    Any
      Basis
      Risk CarryForward Amounts distributed by the Trustee to the Offered
      Certificateholders shall be accounted for by the Trustee, for federal income
      tax
      purposes, as amounts paid first to the Holders of the Class X Certificates,
      and then to the respective Class or Classes of Offered Certificates. In
      addition, the Trustee shall account for the rights of Holders of each Class
      of
      Offered Certificates to receive payments of Basis Risk CarryForward Amounts
      from
      the Swap Account (along with Basis Risk CarryForward Amounts payable from the
      Excess Reserve Fund Account) as rights in a separate limited recourse interest
      rate cap contract written by the Class X Certificateholders in favor of
      Holders of each such Class.

     

    It
      is the
      intention of the parties hereto that, for federal and state income and state
      and
      local franchise tax purposes, the Supplemental Interest Trust be disregarded
      as
      an entity separate from the Holder of the Class X Certificates unless and until
      the date when either (a) there is more than one Class X Certificateholder or
      (b)
      any Class of Certificates in addition to the Class X Certificates is
      recharacterized as an equity interest in the Supplemental Interest Trust for
      federal income tax purposes, in which case it is the intention of the parties
      hereto that, for federal and state income and state and local franchise tax
      purposes, the Supplemental Interest Trust be treated as a partnership. The
      Supplemental Interest Trust will be an “outside reserve fund” within the meaning
      of Treasury Regulation Section 1.860G-2(h) and not an asset of any Trust
      REMIC.

     

    With
      respect to the failure of the Swap Provider to perform any of its obligations
      under the Interest Rate Swap Agreement, the breach by the Swap Provider of
      any
      of its representations and warranties made pursuant to the Interest Rate Swap
      Agreement, or the termination of the Interest Rate Swap Agreement, the
      Supplemental Interest Trust Trustee shall send any notices and make any demands,
      on behalf of the Supplemental Interest Trust as are required under the Interest
      Rate Swap Agreement. To the extent that the Swap Provider fails to make any
      payment required under the terms of the Interest Rate Swap Agreement, the
      Supplemental Interest Trust Trustee shall immediately demand that Morgan
      Stanley, the guarantor of the Swap Provider’s obligations under the guarantee of
      Morgan Stanley relating to the Interest Rate Swap Agreement, make any and all
      payments then required to be made by Morgan Stanley pursuant to such guarantee.
      In addition, in the event a “Delivery Amount” (as defined in the Interest Rate
      Swap Agreement) was due but was not delivered by the Swap Provider as required
      by the Interest Rate Swap Agreement, the Supplemental Interest Trust Trustee
      shall deliver a notice of failure to transfer collateral on the next Business
      Day following such failure, in accordance with the terms of the Interest Rate
      Swap Agreement. The Supplemental Interest Trust Trustee shall cause any
      replacement swap provider to provide a copy of the related replacement interest
      rate swap agreement to the Supplemental Interest Trust Trustee and the
      Depositor.

     

    If
      a
      Responsible Officer of the Trustee receives written notice that the Swap
      Provider or its guarantor has been downgraded below the levels set forth in
      Part
      5(f) of the Interest Rate Swap Agreement and the posting of collateral is
      required in accordance with the terms of Part 5(f) of the Interest Rate Swap
      Agreement, the Trustee shall demand that the Swap Provider or its guarantor
      post
      collateral in accordance with the terms of Part 5(f) of the Interest Rate Swap
      Agreement.

     

     

     

    ARTICLE
      V

     

    THE
      CERTIFICATES

     

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

     

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

     

    Subject
      to Section 9.02 respecting the final distribution on the Certificates, on
      each Distribution Date the Trustee shall make distributions to each
      Certificateholder of record on the preceding Record Date either (x) by wire
      transfer in immediately available funds to the account of such Holder at a
      bank
      or other entity having appropriate facilities therefor, if such Holder has
      so
      notified the Trustee at least five Business Days prior to the related Record
      Date or (y) by check mailed by first class mail to such Certificateholder
      at the address of such Holder appearing in the Certificate
      Register.

     

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

     

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

     

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

     

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

     

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

     

    (b)  No
      transfer of a Private Certificate shall be made unless such transfer is made
      pursuant to an effective registration statement under the Securities Act and
      any
      applicable state securities laws or is exempt from the registration requirements
      under the Securities Act and such state securities laws. In determining whether
      a transfer is being made pursuant to an effective registration statement, the
      Trustee shall be entitled to rely solely upon a written notice to such effect
      from the Depositor. Except with respect to (i) the transfer of the
      Class X, Class P or Residual Certificates to the Depositor or an
      Affiliate of the Depositor or, in the case of the Class R-X Certificates, the
      initial transfer by an Affiliate of the Depositor or the first transfer by
      the
      initial transferee of an Affiliate of the Depositor, (ii) the transfer of
      the Class X or Class P Certificates to the NIM Issuer or the NIM
      Trustee, or (iii) the transfer of the Class X or Class P
      Certificates from the NIM Issuer or the NIM Trustee to the Depositor or an
      Affiliate of the Depositor, in the event that a transfer of a Private
      Certificate which is a Physical Certificate is to be made in reliance upon
      an
      exemption from the Securities Act and such laws, in order to assure compliance
      with the Securities Act and such laws, the Certificateholder desiring to effect
      such transfer shall certify to the Trustee in writing the facts surrounding
      the
      transfer in substantially the form set forth in Exhibit H (the
“Transferor
      Certificate”)
      and
      either (i) there shall be delivered to the Trustee a letter in
      substantially the form of Exhibit I (the “Rule 144A
      Letter”)
      or
      (ii) there shall be delivered to the Trustee at the expense of the
      transferor an Opinion of Counsel that such transfer may be made without
      registration under the Securities Act. In the event that a transfer of a Private
      Certificate which is a Book-Entry Certificate is to be made in reliance upon
      an
      exemption from the Securities Act and such laws, in order to assure compliance
      with the Securities Act and such laws, the Certificateholder desiring to effect
      such transfer will be deemed to have made as of the transfer date each of the
      certifications set forth in the Transferor Certificate in respect of such
      Certificate and the transferee will be deemed to have made as of the transfer
      date each of the certifications set forth in the Rule 144A Letter in
      respect of such Certificate, in each case as if such Certificate were evidenced
      by a Physical Certificate. The Depositor shall provide to any Holder of a
      Private Certificate and any prospective transferee designated by any such
      Holder, information regarding the related Certificates and the Mortgage Loans
      and such other information as shall be necessary to satisfy the condition to
      eligibility set forth in Rule 144A(d)(4) for transfer of any such
      Certificate without registration thereof under the Securities Act pursuant
      to
      the registration exemption provided by Rule 144A. The Trustee and the
      Servicers shall cooperate with the Depositor in providing the Rule 144A
      information referenced in the preceding sentence, including providing to the
      Depositor such information regarding the Certificates, the Mortgage Loans and
      other matters regarding the Trust Fund as the Depositor shall reasonably request
      to meet its obligation under the preceding sentence. Each Holder of a Private
      Certificate desiring to effect such transfer shall, and does hereby agree to,
      indemnify the Trustee, the Depositor and each Servicer against any liability
      that may result if the transfer is not so exempt or is not made in accordance
      with such federal and state laws.

     

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

     

    To
      the
      extent permitted under applicable law (including, but not limited to, ERISA),
      the Trustee shall be under no liability to any Person for any registration
      of
      transfer of any ERISA-Restricted Certificate that is in fact not permitted
      by
      this Section 5.02(b) or for making any payments due on such
      Certificate to the Holder thereof or taking any other action with respect to
      such Holder under the provisions of this Agreement so long as the transfer
      was
      registered by the Trustee in accordance with the foregoing
      requirements.

     

    Each
      beneficial owner of a Certificate (other than an ERISA-Restricted Certificate)
      or any interest therein shall be deemed to have represented, by virtue of its
      acquisition or holding of the Certificate, or interest therein, that either
      (i)
      it is not a Plan or a trustee or other Person acting on behalf of a Plan or
      using “plan assets” of a Plan to effect such acquisition (including any
      insurance company using funds in its general or separate accounts that may
      constitute “plan assets”) or (ii)(A) the beneficial owner is an accredited
      investor within the meaning of Prohibited Transaction Exemption 2002-41, as
      amended from time to time (the “Exemption”) and (B) for so long as the
      Supplemental Interest Trust is in existence, the acquisition and holding of
      such
      Certificate and the separate right to receive payments from the Supplemental
      Interest Trust are eligible for the exemptive relief available under Prohibited
      Transaction Class Exemption (“PTCE”) 84-14 (for transactions by independent
“qualified professional asset managers”), 91-38 (for transactions by bank
      collective investment funds), 90-1 (for transactions by insurance company pooled
      separate accounts), 95-60 (for transactions by insurance company general
      accounts) or 96-23 (for transactions effected by “in-house asset
      managers”).

     

    (c)  Each
      Person who has or who acquires any Ownership Interest in a Residual Certificate
      shall be deemed by the acceptance or acquisition of such Ownership Interest
      to
      have agreed to be bound by the following provisions, and the rights of each
      Person acquiring any Ownership Interest in a Residual Certificate are expressly
      subject to the following provisions:

     

    (i)  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;

     

    (ii)  No
      Ownership Interest in a Residual Certificate may be registered on the Closing
      Date or thereafter transferred, and the Trustee shall not register the Transfer
      of any Residual Certificate unless, in addition to the certificates required
      to
      be delivered to the Trustee under subparagraph (b) above, the Trustee
      shall have been furnished with an affidavit (a “Transfer
      Affidavit”)
      of the
      initial owner or the proposed transferee in the form attached hereto as
      Exhibit G;

     

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

     

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

     

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

     

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

     

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

     

    (e)  Except
      as
      provided below, the Book-Entry Certificates shall at all times remain registered
      in the name of the Depository or its nominee and at all times:
      (i) registration of the Certificates may not be transferred by the Trustee
      except to another Depository; (ii) the Depository shall maintain book-entry
      records with respect to the Certificate Owners and with respect to ownership
      and
      transfers of such Book-Entry Certificates; (iii) ownership and transfers of
      registration of the Book-Entry Certificates on the books of the Depository
      shall
      be governed by applicable rules established by the Depository; (iv) the
      Depository may collect its usual and customary fees, charges and expenses from
      its Depository Participants; (v) the Trustee shall deal with the
      Depository, Depository Participants and indirect participating firms as
      representatives of the Certificate Owners of the Book-Entry Certificates for
      purposes of exercising the rights of holders under this Agreement, and requests
      and directions for and votes of such representatives shall not be deemed to
      be
      inconsistent if they are made with respect to different Certificate Owners;
      and
      (vi) the Trustee may rely and shall be fully protected in relying upon
      information furnished by the Depository with respect to its Depository
      Participants and furnished by the Depository Participants with respect to
      indirect participating firms and persons shown on the books of such indirect
      participating firms as direct or indirect Certificate Owners.

     

    All
      transfers by Certificate Owners of Book-Entry Certificates shall be made in
      accordance with the procedures established by the Depository Participant or
      brokerage firm representing such Certificate Owner. Each Depository Participant
      shall only transfer Book-Entry Certificates of Certificate Owners it represents
      or of brokerage firms for which it acts as agent in accordance with the
      Depository’s normal procedures.

     

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

     

    (f)  No
      transfer of any Private Certificate presented or surrendered for registration
      of
      transfer or exchange shall be made unless the transfer or exchange is
      accompanied by a written instrument of transfer and accompanied by IRS Form
      W-8ECI, W-8BEN, W-8IMY (and all appropriate attachments) or W-9 in form
      satisfactory to the Trustee, duly executed by the Certificateholder or his
      attorney duly authorized in writing. Each Certificate presented or surrendered
      for registration of transfer or exchange shall be canceled and subsequently
      disposed of by the Trustee in accordance with its customary practice. No service
      charge shall be made for any registration of transfer or exchange of Private
      Certificates, but the Trustee may require payment of a sum sufficient to cover
      any tax or governmental charge that may be imposed in connection with any
      transfer or exchange of Private Certificates.

     

    No
      transfer of the Class X Certificates shall be made unless the proposed
      transferee of such Certificates provides to the Trustee the appropriate tax
      certification form (i.e., IRS Form W-9 or IRS Form W-8BEN, W-8IMY, W-8EXP or
      W-8ECI, as applicable (or any successor form thereto)), as a condition to such
      transfer and agrees to update such forms (i) upon expiration of any such form,
      (ii) as required under then applicable U.S. Treasury regulations and (iii)
      promptly upon learning that any IRS Form W-9 or IRS Form W-8BEN, W-8IMY, W-8EXP
      or W-8ECI, as applicable (or any successor form thereto), has become obsolete
      or
      incorrect. Upon receipt of any such tax certification form from a transferee
      of
      any Class X Certificate, the Trustee shall forward a copy of such tax
      certification form provided to it to the Supplemental Interest Trust Trustee.
      The Supplemental Interest Trust Trustee shall provide to the Swap Provider
      and
      the Cap Provider a copy of any such tax certification form received from the
      Trustee.

     

    Each
      Holder of a Class X Certificate and each transferee thereof shall be deemed
      to
      have consented to the Supplemental Interest Trust Trustee forwarding to the
      Swap
      Provider and the Cap Provider any such tax certification form such Holder or
      transferee has provided and updated in accordance with these transfer
      restrictions. Any purported sales or transfers of any Class X Certificate to
      a
      transferee which does not comply with these requirements shall be deemed null
      and void. The Supplemental Interest Trust Trustee and the Trustee, respectively,
      shall not be liable for the completeness, accuracy, content or truthfulness
      of
      any such tax certification provided to it. The Supplemental Interest Trust
      Trustee and the Trustee shall be required to forward any tax certification
      received by it, and upon request by the Swap Provider or the Cap Provider,
      the
      name and address and Percentage Interest held in the Class X Certificates for
      each Holder of a Class X Certificate to the Swap Provider or the Cap Provider
      at
      the last known address provided to it and shall not be liable for the receipt
      of
      such tax certification by the Swap Provider or the Cap Provider, nor any failure
      of the Swap Provider or the Cap Provider to process such certification or to
      take any action as required under the Interest Rate Swap Agreement or the
      Interest Rate Cap Agreement or under applicable law. The Supplemental Interest
      Trust Trustee and the Trustee shall have no duty to take action to correct
      any
      misstatement or omission in any tax certification provided to it and forwarded
      to the Swap Provider or the Cap Provider; provided however, if the Supplemental
      Interest Trust Trustee or Trustee has actual knowledge that a tax certificate
      or
      name and address information provided to it by a Holder of a Private Certificate
      contains a misstatement or omission (including by reason of the Swap Provider
      or
      the Cap Provider informing it of the misstatement or omission), it shall notify
      the Swap Provider and the Cap Provider of the misstatement or omission, and
      when
      it receives a corrected form or name and address information from the Holder
      of
      the Class X Certificate it shall forward the corrected form and/or name and
      address information to the Swap Provider and the Cap Provider.

     

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

     

    Section
      5.04  Persons
      Deemed Owners.
      The
      Servicers, the Trustee, the Depositor and any agent of a Servicer, the Depositor
      or the Trustee may treat the Person in whose name any Certificate is registered
      as the owner of such Certificate for the purpose of receiving distributions
      as
      provided in this Agreement and for all other purposes whatsoever, and none
      of
      the Servicers, the Trustee, the Depositor, or any agent of a Servicer, the
      Depositor or the Trustee shall be affected by any notice to the
      contrary.

     

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

     

    Section
      5.06  Maintenance
      of Office or Agency.
      The
      Trustee will maintain or cause to be maintained at its expense an office or
      offices or agency or agencies in the United States where Certificates may be
      surrendered for registration of transfer or exchange. The Trustee initially
      designates the offices of its agent located at DB Services Tennessee, 648
      Grassmere Park Road, Nashville, Tennessee 37211-3658, Attention: Transfer Unit
      for such purposes. The Trustee shall give prompt written notice to the
      Certificateholders of any change in such location of any such office or
      agency.

     

     

    ARTICLE
      VI

     

    THE
      DEPOSITOR AND THE SERVICERS

     

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

     

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

     

    (b)  Any
      Person into which the Depositor or a Servicer may be merged or consolidated,
      or
      any Person resulting from any merger or consolidation to which the Depositor
      or
      a Servicer shall be a party, or any person succeeding to the business of the
      Depositor or a Servicer (including through the acquisition of substantially
      all
      of the assets of a Servicer), shall be the successor of the Depositor or such
      Servicer, as the case may be, hereunder, without the execution or filing of
      any
      paper or any further act on the part of any of the parties hereto, anything
      herein to the contrary notwithstanding (except that any person succeeding to
      the
      business of a Servicer shall be required to assume and satisfy all of the
      requirements of this Agreement to be a successor servicer); provided, however,
      that the successor or surviving Person to such Servicer shall be qualified
      to
      service mortgage loans on behalf of, Fannie Mae or Freddie Mac. As a condition
      to any succession to a Servicer under this Agreement by any Person (i) into
      which a Servicer may be merged or consolidated or to whom succeeds to the
      business of a Servicer, or (ii) which may be appointed as a successor to a
      Servicer, such Servicer shall provide to the Depositor, at least 15 calendar
      days prior to the effective date of such succession or appointment, (x) written
      notice to the Depositor of such succession or appointment and (y) in writing
      and
      in form and substance reasonably satisfactory to the Depositor, all information
      reasonably necessary to enable the Trustee, pursuant to Section 8.12(g), to
      accurately and timely report the event under Item 6.02 of Form 8-K pursuant
      to
      the Exchange Act (if such reports under the Exchange Act are then required
      to be
      filed under the Exchange Act).

     

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

     

    Section
      6.04  Limitation
      on Resignation of a Servicer.
      Subject
      to Sections 7.01 and 10.07, no Servicer shall assign this Agreement or resign
      from the obligations and duties hereby imposed on it except by mutual consent
      of
      the Servicers, the Depositor and the Trustee or upon the determination that
      its
      duties hereunder are no longer permissible under applicable law and such
      incapacity cannot be cured by such Servicer. Any such determination permitting
      the resignation of a Servicer shall be evidenced by an Opinion of Counsel to
      such effect delivered to the Depositor and the Trustee which Opinion of Counsel
      shall be in form and substance acceptable to the Depositor and the Trustee.
      No
      such resignation shall become effective until a successor shall have assumed
      such Servicer’s responsibilities and obligations hereunder.

     

    Notwithstanding
      the provisions of Section 6.04 herein to the contrary, in the event that a
      Servicer determines that it will no longer engage in the business of servicing
      mortgage loans, such Servicer may assign its rights under this Agreement,
      provided that, (i) the Depositor in its sole discretion has consented, which
      consent shall not be unreasonably withheld, (ii) the Rating Agencies’ ratings of
      the Certificates in effect immediately prior to such action will not be
      qualified, reduced or withdrawn as a result thereof (as evidenced by a letter
      to
      such effect from the Rating Agencies) and (iii) such Servicer shall be liable
      for all costs and expenses associated with the transfer of servicing, provided,
      further, that such Servicer shall indemnify and hold each of the Trust Fund,
      the
      Trustee, the Depositor, the other Servicers hereunder, any sub-servicer, the
      successor servicer and each Certificateholder harmless against any and all
      claims, losses, penalties, fines, forfeitures, reasonable legal fees and related
      costs, judgments, and any other costs, fees and expenses that such party may
      sustain in any way related to such assignment except with respect to a successor
      servicer’s failure to comply with the terms of this Agreement. No assignment by
      such Servicer shall become effective until a successor servicer acceptable
      to
      the Depositor and the Trustee shall have assumed in writing such Servicer’s
      responsibilities, duties, liabilities (other than those liabilities arising
      prior to the appointment of such successor) and obligations under this
      Agreement. Any such assignment shall not relieve the applicable Servicer of
      responsibility for any of the obligations specified herein except to the extent
      that such responsibilities have been expressly assumed by the successor
      servicer.

     

    Section
      6.05  Additional
      Indemnification by the Servicers; Third Party Claims.
      (a)  Each
      Servicer, severally and not jointly, shall indemnify the Responsible Party,
      the
      Depositor, the Sponsor and the Trustee and any director, officer, employee
      or
      agent of the Depositor, the Sponsor or the Trustee and hold them harmless
      against any and all claims, losses, damages, penalties, fines, forfeitures,
      reasonable and necessary legal fees and related costs, judgments, and any other
      costs, fees and expenses that any of them may sustain in any way related to
      (i)
      any breach by such Servicer of any of its representations and warranties
      referred to in Section 2.03(a), (ii) any error in any tax or information return
      prepared by such Servicer or (iii) the failure of such Servicer to perform
      its
      duties and service the Mortgage Loans in compliance with the terms of this
      Agreement (including, without limitation, the failure to deliver accurate and
      complete information on a timely basis pursuant to Section 4.03(d)). The
      applicable Servicer immediately shall notify the Depositor and the Trustee
      if
      such claim is made by a third party with respect to this Agreement or the
      Mortgage Loans, assume (with the prior written consent of the Depositor and
      the
      Trustee) the defense of any such claim and pay all expenses in connection
      therewith, including reasonable counsel fees, and promptly pay, discharge and
      satisfy any judgment or decree which may be entered against it or the Depositor,
      the Sponsor, the Responsible Party or the Trustee in respect of such
      claim.

     

    (b)  Notwithstanding
      anything to the contrary contained in this Agreement, each Servicer shall
      indemnify the Depositor, the Sponsor, the Trustee and any director, officer,
      employee or agent of the Depositor, the Sponsor or the Trustee and hold them
      harmless against any and all claims, losses, damages, penalties, fines,
      forfeitures, reasonable and necessary legal fees and related costs, judgments,
      and any other costs, fees and expenses that any of them may sustain in any
      way
      related to any failure by such Servicer or any Subservicer engaged by such
      Servicer or any Subcontractor utilized by such Servicer to deliver any
      information, report, certification or accountants’ letter when and as required
      under Sections 3.22, 3.23, 6.02 or 8.12, including without limitation any
      failure by such Servicer to identify pursuant to Section 3.02(e) any
      Subcontractor “participating in the servicing function” within the meaning of
      Item 1122 of Regulation AB.

     

    (c)  If
      the
      indemnification provided for in this Section 6.05 is unavailable or
      insufficient to hold harmless any Person entitled to indemnification thereunder,
      then such Servicer shall contribute to the amount paid or payable to the Person
      entitled to indemnification as a result of the losses, claims, damages or
      liabilities of such Person in such proportion as is appropriate to reflect
      the
      relative fault of such Person on the one hand and such Servicer, on the other,
      in connection with that Servicer’s obligations pursuant to this
      Section 6.05. This Section 6.05 shall
      survive the termination of this Agreement or the earlier resignation or removal
      of each Servicer.

     

    (d)  [Reserved].
      

     

     

    ARTICLE
      VII

     

    DEFAULT

     

    Section
      7.01  Events
      of Default.
      “Event
      of Default”
      wherever used herein, means, with respect to each Servicer individually, any
      one
      of the following events:

     

    (a)  any
      failure by a Servicer to remit to the Trustee any payment required to be made
      under the terms of this Agreement which continues unremedied for a period of
      one
      Business Day after the date upon which written notice of such failure, requiring
      the same to be remedied, shall have been given to such Servicer by the Depositor
      or by the Trustee, or to such Servicer, the Depositor and the Trustee by
      Certificateholders entitled to at least 25% of the Voting Rights in the
      Certificates; or

     

    (b)  any
      failure on the part of a Servicer duly to observe or perform in any material
      respect any other of the covenants or agreements on the part of such Servicer
      set forth in this Agreement which continues unremedied for a period of sixty
      (60) days (except that (x) such number of days shall be fifteen in the case
      of a
      failure to pay any premium for any insurance policy required to be maintained
      under this Agreement and (y) such number of days shall be ten in the case of
      a
      failure of Countrywide Servicing to observe or perform any of its obligations
      under the provisions of the Countrywide Amendment Regulation AB incorporated
      by
      reference into this Agreement pursuant to Section 3.01(f) which are equivalent
      to a Servicer’s obligations under Sections 3.02 (as it relates to Sections 3.22
      and 3.23), 3.22 and 3.23 of this Agreement or zero in the case of a failure
      of
      Saxon to observe or perform any of the obligations set forth in Sections 3.02
      (as it relates to Sections 3.22 and 3.23), 3.22, 3.23, 6.02 or 8.12 and such
      number of days shall be 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 such Servicer by the Depositor or the Trustee, or to such Servicer, the
      Depositor and the Trustee by Certificateholders entitled to at least 25% of
      the
      Voting Rights in the Certificates and (ii) actual knowledge of such failure
      by a
      Servicing Officer of such Servicer; or

     

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

     

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

     

    (e)  a
      Servicer shall admit in writing its inability to pay its debts generally as
      they
      become due, file a petition to take advantage of any applicable insolvency
      or
      reorganization statute, make an assignment for the benefit of its creditors,
      or
      voluntarily suspend payment of its obligations; or

     

    (f)  a
      breach
      of any representation and warranty of a Servicer referred to in
      Section 2.03(a), which materially and adversely affects the interests of
      the Certificateholders and which continues unremedied for a period of thirty
      days after the date upon which written notice of such breach is given to such
      Servicer by the Trustee or by the Depositor, or to such Servicer, the Trustee
      and the Depositor by Certificateholders entitled to at least 25% of the Voting
      Rights in the Certificates; or

     

    (g)  with
      respect to Saxon, any withdrawal or downgrade of two or more levels of Saxon’s
      servicer rating by any Rating Agency that results in a downgrade, qualification
      or withdrawal of the rating assigned to any Class of the Certificates by any
      Rating Agency.

     

    If
      an
      Event of Default described in clauses (a) through (g) of this Section 7.01
      shall
      occur, then, and in each and every such case, so long as such Event of Default
      shall not have been remedied, the Trustee may, and at the written direction
      of a
      majority of the Voting Rights, the Trustee shall, by notice in writing to the
      applicable Servicer (with a copy to each Rating Agency), terminate all of the
      rights and obligations of such Servicer under this Agreement and in and to
      the
      Mortgage Loans serviced by such Servicer and the proceeds thereof, other than
      its rights as a Certificateholder hereunder; provided, however, that the Trustee
      shall not be required to give written notice to such Servicer of the occurrence
      of an Event of Default described in clauses (b) through (g) of this Section
      7.01
      unless and until a Responsible Officer of the Trustee has actual knowledge
      of
      the occurrence of such an event. In the event that a Responsible Officer of
      the
      Trustee has actual knowledge of the occurrence of an Event of Default described
      in clause (a) of this Section 7.01, the Trustee shall give written notice to
      the
      applicable Servicer of the occurrence of such an event within one Business
      Day
      of the first day on which such Responsible Officer obtains actual knowledge
      of
      such occurrence; provided, that if such failure is the failure to make a P&I
      Advance, the Trustee shall send such notice prior to 12:00 noon, New York time,
      on the Distribution Date and, if the Event of Default of such Servicer was
      the
      failure to make a P&I Advance, the Trustee, as successor servicer, shall
      make such P&I Advance on the Distribution Date that such notice was
      delivered. On and after the receipt by such Servicer of such written notice,
      all
      authority and power of such Servicer hereunder, whether with respect to the
      Mortgage Loans or otherwise, shall pass to and be vested in the Trustee. Subject
      to Section 7.02, the Trustee is hereby authorized and empowered to execute
      and
      deliver, on behalf of such Servicer, as attorney-in-fact or otherwise, any
      and
      all documents and other instruments, and to do or accomplish all other acts
      or
      things necessary or appropriate to effect the purposes of such notice of
      termination, whether to complete the transfer and endorsement or assignment
      of
      the Mortgage Loans and related documents, or otherwise. Unless expressly
      provided in such written notice, no such termination shall affect any obligation
      of such Servicer to pay amounts owed pursuant to Article VIII. Such Servicer
      agrees to cooperate with the Trustee in effecting the termination of such
      Servicer’s responsibilities and rights hereunder, including, without limitation,
      the transfer to the Trustee of all cash amounts which shall at the time be
      credited to the related Collection Account of such predecessor servicer, or
      thereafter be received with respect to the Mortgage Loans.

     

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

     

    Section
      7.02  Trustee
      to Act; Appointment of Successor.
      On and
      after the time a Servicer receives a notice of termination pursuant to Section
      3.24 or Section 7.01, the Trustee shall, subject to and to the extent provided
      in Section 3.05, be the successor to such servicer in its capacity as servicer
      under this Agreement and the transactions set forth or provided for herein
      and
      shall be subject to all the responsibilities, duties and liabilities relating
      thereto placed on such Servicer by the terms and provisions hereof and
      applicable law including the obligation to make P&I Advances or Servicing
      Advances pursuant to Section 3.24 or Section 7.01. As compensation therefor,
      the
      Trustee shall be entitled to all funds relating to the Mortgage Loans that
      such
      Servicer would have been entitled to charge to its Collection Account if such
      Servicer had continued to act hereunder including, if such Servicer was
      receiving the Servicing Fee, the Servicing Fee and the income on investments
      or
      gain related to its Collection Account and the Distribution Account which such
      Servicer would be entitled to receive (in addition to income on investments
      or
      gain related to the Distribution Account for the benefit of the Trustee during
      the Trustee Float Period). Notwithstanding the foregoing, if the Trustee has
      become the successor to such servicer in accordance with Section 7.01, (a)
      the
      Trustee, as successor servicer, shall have a period not to exceed 90 days to
      complete the transfer of servicing and all data and to correct or manipulate
      such servicing data as may be required by the Trustee to correct any errors
      or
      insufficiencies in the servicing data or otherwise enable the Trustee or other
      successor servicer to service the Mortgage Loans in accordance with Accepted
      Servicing Practices and (b) the Trustee may, if it shall be unwilling to so
      act,
      or shall, if it is prohibited by applicable law from making P&I Advances and
      Servicing Advances pursuant to Section 4.01, if it is otherwise unable to so
      act
      or at the written request of Certificateholders entitled to at least a majority
      of the Voting Rights, appoint, or petition a court of competent jurisdiction
      to
      appoint, any established mortgage loan servicing institution the appointment
      of
      which does not adversely affect the then current rating of the Certificates
      by
      each Rating Agency, as the successor to such servicer hereunder in the
      assumption of all or any part of the responsibilities, duties or liabilities
      of
      such servicer hereunder. Any successor to such servicer shall be an institution
      which is a Fannie Mae and Freddie Mac approved servicer in good standing, which
      has a net worth of at least $30,000,000, which is willing to service the
      Mortgage Loans and which executes and delivers to the Depositor and the Trustee
      an agreement accepting such delegation and assignment, containing an assumption
      by such Person of the rights, powers, duties, responsibilities, obligations
      and
      liabilities of such terminated servicer (other than liabilities of such
      terminated servicer under Section 6.03 incurred prior to termination of such
      Servicer under Section 7.01), with like effect as if originally named as a
      party
      to this Agreement; provided, that each Rating Agency acknowledges that its
      rating of the Certificates in effect immediately prior to such assignment and
      delegation will not be qualified or reduced, as a result of such assignment
      and
      delegation. Pending appointment of a successor to a servicer hereunder, the
      Trustee, unless the Trustee is prohibited by law from so acting, shall, subject
      to Section 3.05, act in such capacity as hereinabove provided. In connection
      with such appointment and assumption, the 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 the Servicing Fee Rate and amounts paid to the predecessor
      servicer from investments. The Trustee and such successor shall take such
      action, consistent with this Agreement, as shall be necessary to effectuate
      any
      such succession. Neither the Trustee nor any other successor servicer shall
      be
      deemed to be in default hereunder by reason of any failure to make, or any
      delay
      in making, any distribution hereunder or any portion thereof or any failure
      to
      perform, or any delay in performing, any duties or responsibilities hereunder,
      in either case caused by the failure of the predecessor servicer to deliver
      or
      provide, or any delay in delivering or providing, any cash, information,
      documents or records to it.

     

    In
      the
      event that a Servicer is terminated pursuant to Section 7.01, such
      terminated Servicer shall be responsible for the servicing transfer, provide
      notices to the Mortgagors, arrange for and transfer the Servicing Files to
      a
      successor servicer, pay all of its own out-of-pocket costs and expenses at
      its
      own expense and pay all costs and expenses of all other parties hereto relating
      to the transfer of the related Servicing Files to a successor servicer
      (excluding set-up costs and other administrative expenses of the successor
      servicer), and in all other cases the successor servicer shall pay for such
      costs and expenses but shall not be entitled to reimbursement therefor from
      the
      Trust Fund. Such amounts payable by the terminated Servicer shall be paid by
      the
      terminated Servicer promptly upon presentation of reasonable documentation
      of
      such costs. If the Trustee is the predecessor servicer (except in the case
      where
      the Trustee in its role as successor servicer is being terminated pursuant
      to
      Section 7.01 by reason of an Event of Default caused solely by the Trustee
      as the successor servicer and not by the predecessor servicer’s actions or
      omissions), such costs shall be paid by the prior terminated Servicer promptly
      upon presentation of reasonable documentation of such costs.

     

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

     

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

     

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

     

     

     

    ARTICLE
      VIII

     

    CONCERNING
      THE TRUSTEE

     

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

     

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

     

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

     

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

     

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

     

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

     

    (c)  the
      Trustee shall not be liable with respect to any action taken, suffered, or
      omitted to be taken by it in good faith in accordance with the direction of
      the
      Holders of Certificates evidencing not less than 25% of the Voting Rights of
      Certificates relating to the time, method, and place of conducting any
      proceeding for any remedy available to the Trustee, or exercising any trust
      or
      power conferred upon the Trustee under this Agreement.

     

    (d)  The
      Trustee shall be permitted to utilize one or more Subcontractors for the
      performance of certain of its obligations under this Agreement, provided that
      the Trustee complies with Section 3.02(e) as if the Trustee were a
“Servicer” pursuant to that Section. The Trustee shall indemnify the Depositor,
      the Sponsor and any director, officer, employee or agent of the Depositor or
      the
      Sponsor and hold them harmless against any and all claims, losses, damages,
      penalties, fines, forfeitures, reasonable and necessary legal fees and related
      costs, judgments, and any other costs, fees and expenses that any of them may
      sustain in any way related to the failure of the Trustee to perform any of
      its
      obligations under Section 3.22 or Section 3.23, including without
      limitation any failure by the Trustee to identify pursuant to
      Section 3.02(e) any Subcontractor that is a Servicing Function Participant.
      This indemnity shall survive the termination of this Agreement or the earlier
      resignation or removal of the Trustee.

     

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

     

    (a)  the
      Trustee may request and rely upon and shall be protected in acting or refraining
      from acting upon any resolution, Officer’s Certificate, certificate of auditors
      or any other certificate, statement, instrument, opinion, report, notice,
      request, consent, order, appraisal, bond or other paper or document believed
      by
      it to be genuine and to have been signed or presented by the proper party or
      parties and the Trustee shall have no responsibility to ascertain or confirm
      the
      genuineness of any signature of any such party or parties;

     

    (b)  the
      Trustee may consult with counsel, financial advisers or accountants and the
      advice of any such counsel, financial advisers or accountants and any Opinion
      of
      Counsel shall be full and complete authorization and protection in respect
      of
      any action taken or suffered or omitted by it hereunder in good faith and in
      accordance with such Opinion of Counsel;

     

    (c)  the
      Trustee shall not be liable for any action taken, suffered or omitted by it
      in
      good faith and believed by it to be authorized or within the discretion or
      rights or powers conferred upon it by this Agreement;

     

    (d)  the
      Trustee shall not be bound to make any investigation into the facts or matters
      stated in any resolution, certificate, statement, instrument, opinion, report,
      notice, request, consent, order, approval, bond or other paper or document,
      unless requested in writing to do so by the Holders of Certificates evidencing
      not less than 25% of the Voting Rights allocated to each Class of
      Certificates;

     

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

     

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

     

    (g)  the
      Trustee shall not be liable for any loss on any investment of funds pursuant
      to
      this Agreement (other than as issuer of the investment security and with respect
      to the investment of funds in the Distribution Account during the Trustee Float
      Period);

     

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

     

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

     

    Section
      8.03  Trustee
      Not Liable for Certificates or Mortgage Loans.
      The
      recitals contained herein and in the Certificates shall be taken as the
      statements of the Depositor and the Trustee assumes no responsibility for their
      correctness. The Trustee makes no representations as to the validity or
      sufficiency of this Agreement, the Interest Rate Swap Agreement or of the
      Certificates or of any Mortgage Loan or related document other than with respect
      to the Trustee’s execution and authentication of the Certificates. The Trustee
      shall not be accountable for the use or application by the Depositor or a
      Servicer of any funds paid to the Depositor or a Servicer in respect of the
      Mortgage Loans or deposited in or withdrawn from any Collection Account or
      the
      Distribution Account by the Depositor or a Servicer.

     

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

     

    The
      Trustee executes the Certificates not in its individual capacity but solely
      as
      Trustee of the Trust Fund created by this Agreement, in the exercise of the
      powers and authority conferred and vested in it by this Agreement. The
      Supplemental Interest Trust Trustee executes the Interest Rate Swap Agreement
      and the Interest Rate Cap Agreement not in its individual capacity but solely
      as
      Supplemental Interest Trust Trustee of the Supplemental Interest Trust created
      by this Agreement, in the exercise of the powers and authority conferred and
      vested in it by this Agreement. Each of the undertakings and agreements made
      on
      the part of the Trustee or the Supplemental
      Interest Trust Trustee on
      behalf
      of the Trust Fund or the Supplemental Interest Trust in the Certificates, the
      Interest Rate Swap Agreement and the Interest Rate Cap Agreement, respectively,
      is made and intended not as a personal undertaking or agreement by the Trustee
      or the Supplemental Interest Trust Trustee but is made and intended for the
      purpose of binding only the Trust Fund or the Supplemental Interest Trust,
      as
      applicable.

     

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

     

    Section
      8.05  Trustee’s
      Fees and Expenses.
      As
      compensation for its activities under this Agreement, the Trustee may withdraw
      from the Distribution Account on each Distribution Date the Trustee Fee for
      the
      Distribution Date and any interest or investment income earned on funds
      deposited in the Distribution Account during the Trustee Float Period. The
      Trustee and any director, officer, employee, or agent of the Trustee shall
      be
      indemnified by the Trust Fund against any loss, liability, or expense (including
      reasonable attorney’s fees) resulting from any error in any tax or information
      return prepared by any Servicer or incurred in connection with any claim or
      legal action relating to (a) this Agreement, (b) the Certificates or the
      Interest Rate Swap Agreement, or (c) the performance of any of the Trustee’s
      duties under this Agreement, the Certificates or the Interest Rate Swap
      Agreement, other than any loss, liability, or expense (i) resulting from any
      breach of any Servicer’s obligations in connection with this Agreement for which
      the related Servicer has performed its obligation to indemnify the Trustee
      pursuant to Section 6.05, (ii) resulting from any breach of any Responsible
      Party’s obligations in connection with this Agreement for which the related
      Responsible Party has performed its obligations to indemnify the Trustee
      pursuant to Section 2.03(n) or (iii) incurred because of willful misconduct,
      bad
      faith, or negligence in the performance of any of the Trustee’s duties under
      this Agreement. This indemnity shall survive the termination of this Agreement
      or the resignation or removal of the Trustee under this Agreement. Without
      limiting the foregoing, except as otherwise agreed upon in writing by the
      Depositor and the Trustee, and except for any expense, disbursement, or advance
      arising from the Trustee’s negligence, bad faith, or willful misconduct, the
      Trust Fund shall pay or reimburse the Trustee, for all reasonable expenses,
      disbursements, and advances incurred or made by the Trustee in accordance with
      this Agreement with respect to:

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    Section
      8.09  Merger
      or Consolidation of the Trustee.
      Any
      corporation into which the Trustee may be merged or converted or with which
      it
      may be consolidated or any corporation resulting from any merger, conversion
      or
      consolidation to which the Trustee shall be a party, or any corporation
      succeeding to the business of the Trustee, shall be the successor of the Trustee
      hereunder; provided,
      that
      such corporation shall be eligible under Section 8.06 without the execution
      or filing of any paper or further act on the part of any of the parties hereto,
      anything herein to the contrary notwithstanding. In connection with the
      succession to the Trustee under this Agreement by any Person (i) into which
      the Trustee may be merged or consolidated, or (ii) which may be appointed
      as a successor to the Trustee, the Trustee shall notify the Depositor of such
      succession or appointment and shall furnish to the Depositor in writing and
      in
      form and substance reasonably satisfactory to the Depositor, all information
      reasonably necessary for the Trustee to accurately and timely report, pursuant
      to Section 8.12(g), the event under Item 6.02 of Form 8-K
      pursuant to the Exchange Act (if such reports under the Exchange Act are
      required to be filed under the Exchange Act).

     

    Section
      8.10  Appointment
      of Co-Trustee or Separate Trustee.
      Notwithstanding any other provisions of this Agreement, at any time, for the
      purpose of meeting any legal requirements of any jurisdiction in which any
      part
      of the Trust Fund or property securing any Mortgage Note may at the time be
      located, the applicable Servicer and the Trustee acting jointly shall have
      the
      power and shall execute and deliver all instruments to appoint one or more
      Persons approved by the Trustee to act as co-trustee or co-trustees jointly
      with
      the Trustee, or separate trustee or separate trustees, of all or any part of
      the
      Trust Fund, and to vest in such Person or Persons, in such capacity and for
      the
      benefit of the Certificateholders, such title to the Trust Fund or any part
      thereof, whichever is applicable, and, subject to the other provisions of this
      Section 8.10, such powers, duties, obligations, rights and trusts as the
      applicable Servicer and the Trustee may consider appropriate. If any Servicer
      shall not have joined in such appointment within 15 days after the receipt
      by
      such Servicer of a request to do so, or in the case an Event of Default shall
      have occurred and be continuing, the Trustee alone shall have the power to
      make
      such appointment. No co-trustee or separate trustee hereunder shall be required
      to meet the terms of eligibility as a successor trustee under Section 8.06
      and
      no notice to Certificateholders of the appointment of any co-trustee or separate
      trustee shall be required under Section 8.08.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (b)  apply
      for
      an employer identification number from the Internal Revenue Service via Form
      SS-4 or any other acceptable method for all tax entities (i.e., the Trust REMICs
      and the grantor trust), furnish to the Depositor not later than the Closing
      Date
      in the case of the Supplemental Interest Trust (the corpus of which includes
      the
      Interest Rate Swap Agreement) and within thirty days of the Closing Date in
      the
      case of the Trust REMICs, copies of such Form SS-4 requesting the employer
      identification numbers, use its best efforts to obtain, as promptly as
      practicable, employer identification numbers for any other Trust REMICs or
      grantor trusts created pursuant to this Agreement (and provide such employer
      identification numbers to the Depositor promptly upon receipt thereof), furnish
      to the Internal Revenue Service, on Form 8811 or as otherwise may be required
      by
      the Code, the name, title, address, and telephone number of the person that
      the
      Holders of the Certificates may contact for tax information relating thereto,
      together with such additional information as may be required by such Form,
      and
      update such information at the time or times in the manner required by the
      Code;

     

    (c)  deliver
      or cause to be delivered the federal taxpayer identification number of the
      Supplemental Interest Trust on a correct, complete and duly executed IRS Form
      W-9 of the Supplemental Interest Trust to the Swap Provider and the Cap Provider
      promptly upon receipt of such number after applying for it pursuant to 8.11(b)
      above and, in any event, no later than the first Payment Date under the Interest
      Rate Swap Agreement or the Interest Rate Cap Agreement, as applicable, and,
      if
      requested by the Swap Provider or the Cap Provider, an applicable IRS Form
      W-8MY;

     

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

     

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

     

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

     

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

     

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

     

    (i)  pay,
      from
      the sources specified in the last paragraph of this Section 8.11, the
      amount of any federal or state tax, including prohibited transaction taxes
      as
      described below, imposed on any Trust REMIC created hereunder before its
      termination 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);

     

    (j)  cause
      federal, state or local income tax or information returns to be signed by the
      Trustee or such other Person as may be required to sign such returns by the
      Code
      or state or local laws, regulations or rules; and

     

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

     

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

     

    To
      enable
      the Trustee to perform its duties under this Agreement, the Depositor shall
      provide to the Trustee within ten days after the Closing Date all information
      or
      data that the Trustee requests in writing and determines to be relevant for
      tax
      purposes to the valuations and offering prices of the Certificates, including
      the price, yield, prepayment assumption, and projected cash flows of the
      Certificates and the Mortgage Loans. Moreover, the Depositor shall provide
      information to the Trustee concerning the value, if any, to each Class of
      Certificates of the right to receive Basis Risk CarryForward Amounts from the
      Excess Reserve Fund Account and Basis Risk CarryForward Amounts from the Swap
      Account. Thereafter, the Depositor shall provide to the Trustee promptly upon
      written request therefor any additional information or data that the Trustee
      may, from time to time, reasonably request to enable the Trustee to perform
      its
      duties under this Agreement; provided,
      however,
      that
      the Depositor shall not be required to provide any information regarding the
      Mortgage Loans that a Servicer is required to provide to the Trustee pursuant
      to
      this Agreement. The Depositor hereby indemnifies the Trustee for any losses,
      liabilities, damages, claims, or expenses of the Trustee arising from any errors
      or miscalculations of the Trustee that result from any failure of the Depositor
      to provide pursuant to this paragraph accurate information or data to the
      Trustee on a timely basis.

     

    Neither
      the Servicers nor the Trustee shall (i) permit the creation of any interests
      in
      any Trust REMIC other than the regular and residual interests set forth in
      the
      Preliminary Statement, (ii) receive any amount representing a fee or other
      compensation for services (except as otherwise permitted by this Agreement
      or
      the related Mortgage Loan documents) or (iii) otherwise knowingly or
      intentionally take any action, cause the Trust Fund to take any action or fail
      to take (or fail to cause to be taken) any action reasonably within its control
      and the scope of duties more specifically set forth herein, that, under the
      REMIC Provisions, if taken or not taken, as the case may be, could
      (i) endanger the status of any Trust REMIC as a REMIC or (ii) result
      in the imposition of a tax upon any Trust REMIC or the Trust Fund (including
      but
      not limited to the tax on “prohibited transactions” as defined in
      Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set
      forth in Section 860G(d) of the Code, or the tax on “net income from
      foreclosure property”) unless the Trustee receives an Opinion of Counsel (at the
      expense of the party seeking to take such action or, if such party fails to
      pay
      such expense, at the expense of the Trust Fund, but in no event at the expense
      of the Trustee) to the effect that the contemplated action will not, with
      respect to the Trust Fund, any Trust REMIC created hereunder, endanger such
      status or result in the imposition of such a tax).

     

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

     

    Section
      8.12  Periodic
      Filings.  (a)  The
      Trustee and each Servicer shall reasonably cooperate with the Depositor in
      connection with the reporting requirements of the Trust under the Exchange
      Act.
      The Trustee shall prepare for execution by the Depositor any Forms 8-K
      (other than the initial Form 8-K relating to this Agreement, which shall be
      the
      responsibility of the Depositor to prepare and file), 10-D and 10-K required
      by
      the Exchange Act and the rules and regulations of the Commission thereunder,
      in
      order to permit the timely filing thereof, pursuant to the terms of this
      Section 8.12, and the Trustee shall file (via the Commission’s Electronic
      Data Gathering and Retrieval System (“EDGAR”) such Forms executed by the
      Depositor. The Trustee shall have no duty to verify information received by
      it
      from other Persons (other than Subcontractors utilized by the Trustee) in
      connection with its duties under this Section 8.12.

     

    (b)  No
      later
      than 1:00 p.m. (Eastern Standard Time) (so long as the Trustee has received
      from
      the Depositor the executed Form 10-D no later than noon (Eastern Standard Time)
      on the preceding Business Day (or otherwise, the Trustee will utilize reasonable
      best efforts to file such Form 10 D no later than the filing deadline for such
      Form 10-D)) on any date within 15 calendar days after each Distribution
      Date (subject to permitted extensions under the Exchange Act), the Trustee
      shall
      prepare and file on behalf of the Trust any Form 10-D required by the
      Exchange Act, in form and substance as required by the Exchange Act. The Trustee
      shall file each Form 10-D with a copy of the related Monthly Statement
      attached thereto. Any disclosure in addition to the Monthly Statement that
      is
      required to be included on Form 10-D (“Additional
      Form 10-D Disclosure”)
      shall
      be prepared by the party responsible for preparing such disclosure as set forth
      on Exhibit Q hereto and provided to the Trustee in EDGAR-compatible form at
      the
      email address for the Trustee set forth in Section 10.05, using Exhibit V,
      and
      the Trustee shall compile such disclosure pursuant to the following paragraph.
      As used in this Agreement, EDGAR-compatible form means an electronic information
      storage format acceptable to the Trustee and the party providing such
      information. The Trustee will have no duty or liability for any failure
      hereunder to determine or prepare any Additional Form 10-D Disclosure,
      except as set forth in the next paragraph.

     

    As
      set
      forth on Exhibit Q hereto, within 5 calendar days after the related
      Distribution Date, certain parties to this Agreement shall be required to
      provide to the Trustee and the Depositor, to the extent known by such applicable
      parties, any Additional Form 10-D Disclosure, if applicable. The Trustee
      shall compile all such information provided to it in a Form 10-D prepared
      by it.

     

    The
      Trustee shall prepare and forward electronically a draft copy of the
      Form 10-D to the Depositor sufficiently far in advance of, but in no event
      less than two (2) Business Days prior to, when the Depositor is required to
      execute such Form 10-D to permit the Depositor to review, verify and execute
      such Form 10-D. No later than 2 Business Days prior to the 15th calendar day
      after the related Distribution Date, an officer of the Depositor shall sign
      the
      Form 10-D and return an electronic or fax copy of such signed
      Form 10-D (with an original executed hard copy to follow by overnight mail)
      to the Trustee. If a Form 10-D cannot be filed on time or if a previously
      filed Form 10-D needs to be amended, the Trustee will follow the procedures
      set forth in Section 8.12(f)(ii). The signing party at the Depositor can be
      contacted at the Depositor’s address for notices set forth in
      Section 10.5(b)(ii)(a), or such other address as to which the Depositor has
      provided prior written notice to the Trustee. The Depositor acknowledges that
      the performance by the Trustee of its duties under this Section 8.12(b)
      related to the timely preparation and filing of Form 10-D is contingent, in
      part, upon each Servicer and the Depositor and any other Person obligated to
      provide Additional Form 10-D Disclosure as set forth on Exhibit Q hereto
      observing all applicable deadlines in the performance of their duties under
      this
      Section 8.12(b). The Trustee shall have no liability for any loss, expense,
      damage, or claim arising out of or with respect to any failure to properly
      prepare and/or timely file such Form 10-D, where such failure results from
      the Trustee’s inability or failure to obtain or receive, on a timely basis, any
      information or signature from any party hereto (other than the Trustee or any
      Subcontractor utilized by the Trustee) needed to prepare, arrange for execution
      or file such Form 10-D, not resulting from its own negligence, bad faith or
      willful misconduct.

     

    (c)  No
      later
      than 1:00 p.m. (Eastern Standard Time) (so long as the Trustee has received
      from
      the Depositor the executed Form 10 K no later than noon (Eastern Standard Time)
      on the preceding Business Day (or otherwise, the Trustee shall utilize
      reasonable best efforts to file such Form 10 K no later than the filing deadline
      for such Form 10 K)) on any date within 90 days after the end of each
      fiscal year of the Trust or such earlier date as may be required by the Exchange
      Act (the “10-K
      Filing Deadline”),
      commencing in March 2008, the Trustee shall prepare and file on behalf of
      the Trust a Form 10-K, in form and substance as required by the Exchange
      Act. Each such Form 10-K shall include the following items, in each case to
      the extent they have been delivered to the Trustee within the applicable time
      frames set forth in this Agreement, (i) an annual compliance statement for
      each Servicer and each Subservicer engaged by any Servicer and the Trustee,
      as
      described under Section 3.22, (ii)(A) the annual reports on assessment of
      compliance with servicing criteria for the Trustee, the Servicers, each
      Subservicer engaged by any Servicer and each Servicing Function Participant
      utilized by the Servicer or the Trustee, as described under Section 3.23, and
      (B) if any such report on assessment of compliance with servicing criteria
      described under Section 3.23 identifies any material instance of noncompliance,
      disclosure identifying such instance of noncompliance, or such report on
      assessment of compliance with servicing criteria described under Section 3.23
      is
      not included as an exhibit to such Form 10-K, disclosure that such report is
      not
      included and an explanation why such report is not included, (iii)(A) the
      registered public accounting firm attestation report for the Trustee, each
      Servicer, each Subservicer engaged by a Servicer and each Servicing Function
      Participant utilized by a Servicer or the Trustee, as described under Section
      3.23, and (B) if any registered public accounting firm attestation report
      described under Section 3.23 identifies any material instance of noncompliance,
      disclosure identifying such instance of noncompliance, or if any such registered
      public accounting firm attestation report is not included as an exhibit to
      such
      Form 10-K, disclosure that such report is not included and an explanation why
      such report is not included, and (iv) a certification in the form attached
      hereto as Exhibit L, with such changes as may be necessary or appropriate as
      a
      result of changes promulgated by the Commission (the “Sarbanes
      Certification”),
      which
      shall be signed by the senior officer of the Depositor in charge of
      securitization. Any disclosure or information in addition to (i) through
      (iv) above that is required to be included on Form 10-K (“Additional
      Form 10-K Disclosure”)
      shall
      be prepared by the party responsible for preparing such disclosure as set forth
      on Exhibit V hereto, and provided to the Trustee in EDGAR-compatible form at
      the
      email address for the Trustee set forth in Section 10.05, using Exhibit V,
      and
      the Trustee shall compile such disclosure pursuant to the following paragraph.
      The Trustee will have no duty or liability for any failure hereunder to
      determine or prepare any Additional Form 10-K Disclosure, except as set
      forth in the next paragraph.

     

    As
      set
      forth on Exhibit R hereto, no later than March 1st of each year (or, in the
      case of the Servicers, March 5th of each year) that the Trust is subject to
      the
      Exchange Act reporting requirements commencing in 2008, certain parties to
      this
      Agreement shall be required to provide to the Trustee and the Depositor, to
      the
      extent known by such applicable parties, any Additional Form 10-K
      Disclosure, if applicable. The Trustee shall compile all such information
      provided to it in a Form 10-K prepared by it.

     

    The
      Trustee shall prepare and forward electronically a draft copy of the
      Form 10-K to the Depositor sufficiently far in advance of, but in no event
      less than five (5) Business Days prior to, when the Depositor is required to
      execute such Form 10-K to permit the Depositor to review, verify and execute
      such Form 10-K. No later than 5:00 p.m. (Eastern Standard Time) on the 3rd
      Business Day prior to the 10-K Filing Deadline, an officer of the Depositor
      shall sign the Form 10-K and return an electronic or fax copy of such
      signed Form 10-K (with an original executed hard copy to follow by
      overnight mail) to the Trustee. If a Form 10-K cannot be filed on time or
      if a previously filed Form 10-K needs to be amended, the Trustee will
      follow the procedures set forth in Section 8.12(f)(ii). The signing party
      at the Depositor can be contacted at the Depositor’s address for notices set
      forth in Section 10.5(b)(ii)(a), or such other address as to which the Depositor
      has provided prior written notice to the Trustee. The Depositor and each
      Servicer acknowledge that the performance by the Trustee of its duties under
      this Section 8.12(c) related to the timely preparation and filing of Form 10-K
      is contingent, in part, upon each Servicer (and any Subservicer or Servicing
      Function Participant engaged by a Servicer) and the Depositor and any other
      Person obligated to provide Additional Form 10-K Disclosure as set forth on
      Exhibit R hereto, observing all applicable deadlines in the performance of
      their
      duties under this Section 8.12(c), Section 8.12(d), Section 3.22 and Section
      3.23. The Trustee shall have no liability for any loss, expense, damage or
      claim
      arising out of or with respect to any failure to properly prepare and/or timely
      file such Form 10-K, where such failure results from the Trustee’s inability or
      failure to obtain or receive, on a timely basis, any information or signature
      from any party hereto (other than the Trustee or any Subcontractor utilized
      by
      the Trustee) needed to prepare, arrange for execution or file such Form 10-K,
      not resulting from its own negligence, bad faith or willful
      misconduct.

     

    (d)  In
      connection with the execution of a Sarbanes Certification, the Trustee shall
      sign a certification (in the form attached hereto as Exhibit M, with such
      changes as may be necessary or appropriate as a result of changes promulgated
      by
      the Commission) for the benefit of the Depositor and its officers, directors
      and
      Affiliates, and each Servicer shall sign a certification solely with respect
      to
      such Servicer (in the form attached hereto as Exhibit N, with such changes
      as
      may be necessary or appropriate as a result of changes promulgated by the
      Commission) for the benefit of the Depositor, the Trustee and their respective
      officers, directors and Affiliates. Each such certification shall be delivered
      to the Depositor no later than March 10th of each year (or if such day is not
      a
      Business Day, the immediately preceding Business Day) and the Depositor shall
      deliver the Sarbanes Certification no later than the time set forth for the
      delivery to the Trustee of the signed Form 10-K pursuant to Section 8.12(d)
      for
      such year. In the event that prior to the filing date of the Form 10-K in March
      of each year, the Trustee or any Servicer has actual knowledge of information
      material to the Sarbanes Certification, that party shall promptly notify the
      Depositor and each of the other parties signing the certifications. In addition,
      (i) the Trustee shall indemnify and hold harmless the Depositor and the Sponsor
      and their officers, directors, employees, agents and Affiliates from and against
      any losses, damages, penalties, fines, forfeitures, reasonable and necessary
      legal fees and related costs, judgments and other costs and expenses arising
      out
      of or based upon any breach of the Trustee’s obligations under this Section
      8.12(d) or any material misstatement or material omission contained in any
      information, report, certification, accountants’ letter or other material
      provided in written or electronic form pursuant to Sections 3.23 and 8.12 of
      this Agreement and Exhibits Q, R and S to this Agreement provided by or on
      behalf of the Trustee or any Subcontractor utilized by the Trustee (excluding
      any information, report, certification, accountants’ letter or other materials
      provided in written or electronic form by or on behalf of any Person other
      than
      the Trustee or any Subcontractor utilized by the Trustee), negligence, bad
      faith
      or willful misconduct in connection therewith, and (ii) each Servicer, severally
      and not jointly, shall indemnify and hold harmless the Depositor, the Sponsor,
      the Trustee and their respective officers, directors, employees, agents and
      Affiliates from and against any losses, damages, penalties, fines, forfeitures,
      reasonable and necessary legal fees and related costs, judgments and other
      costs
      and expenses arising out of or based upon any breach of the applicable
      Servicer’s obligations under this Section 8.12(d) or any material misstatement
      or material omission, negligence, bad faith or willful misconduct of such
      Servicer in connection therewith. If the indemnification provided for herein
      is
      unavailable or insufficient to hold harmless any indemnified party, then (i)
      the
      Trustee agrees in connection with a breach of the Trustee’s obligations under
      this Section 8.12(d) or any material misstatement or material omission contained
      in any information, report, certification, accountants’ letter or other material
      provided in written or electronic form pursuant to Sections 3.23 and 8.12 of
      this Agreement and Exhibits T, U and V to this Agreement provided by or on
      behalf of the Trustee or any Subcontractor utilized by the Trustee (excluding
      any information, report, certification, accountants’ letter or other materials
      provided in written or electronic form by or on behalf of any Person other
      than
      the Trustee or any Subcontractor utilized by the Trustee), negligence, bad
      faith
      or willful misconduct in connection therewith that it shall contribute to the
      amount paid or payable by the Depositor and the Sponsor as a result of the
      losses, claims, damages or liabilities of the Depositor and the Sponsor in
      such
      proportion as is appropriate to reflect the relative fault of the Depositor
      and
      the Sponsor on the one hand and the Trustee on the other and (ii) each Servicer
      agrees that it shall contribute to the amount paid or payable by such
      indemnified party as a result of the losses, claims, damages or liabilities
      of
      such indemnified party in such proportion as is appropriate to reflect the
      relative fault of such indemnified party, on the one hand, and such Servicer,
      on
      the other hand, in connection with a breach of the Servicers’ obligations under
      this Section 8.12(d) or any material misstatement or material omission,
      negligence, bad faith or willful misconduct of such Servicer in connection
      therewith. The obligations of the Trustee and each Servicer under this Section
      8.12(d) shall apply to the Trustee and each Servicer, whether or not such
      Trustee or Servicer is acting as Trustee or Servicer, as applicable, at the
      time
      such certification is required to be delivered. The indemnification and
      contribution obligations set forth in this Section 8.12(d) shall survive the
      termination of this Agreement or the earlier resignation or removal of the
      Trustee or a Servicer, as applicable.

     

    (e)  Upon
      any
      filing with the Commission, the Trustee shall promptly deliver to the Depositor
      a copy of each such executed report, statement or information.

     

    (f)  (i)  The
      obligations set forth in paragraphs (a) through (d) of this Section shall
      only apply with respect to periods for which reports are required to be filed
      with respect to the Trust under the Exchange Act. Prior to January 30 of
      the first year in which the Trustee is able to do so under applicable law,
      the
      Trustee shall file a Form 15 Suspension Notification with respect to the
      Trust, with a copy to the Depositor. At any time after the filing of a
      Form 15 Suspension Notification, if the number of Holders of the Offered
      Certificates of record exceeds the number set forth in Section 15(d) of the
      Exchange Act or the regulations promulgated pursuant thereto which would cause
      the Trust to again become subject to the reporting requirements of the Exchange
      Act, the Trustee shall recommence preparing and filing reports on
      Form 10-K, 10-D and 8-K as required pursuant to this Section 8.12 and
      the parties hereto shall again have the obligations set forth in this
      Section.

     

    (ii)  In
      the
      event that the Trustee is unable to timely file with the Commission all or
      any
      required portion of any Form 8-K, 10-D or 10-K required to be filed pursuant
      to
      this Agreement because required disclosure information was either not delivered
      to it or delivered to it after the delivery deadlines set forth in this
      Agreement, the Trustee will immediately notify the Depositor and the Servicers.
      In the case of Form 10-D and 10-K, the Depositor, Servicers and Trustee will
      thereupon cooperate to prepare and file a Form 12b-25 and a 10-D/A and 10-K/A
      as
      applicable, pursuant to Rule 12b-25 of the Exchange Act. In the case of Form
      8-K, the Trustee will, upon receipt of all disclosure information required
      to be
      included on Form 8-K, include such disclosure information on the next Form
      10-D.
      In the event that any previously filed Form 8-K, 10-D or 10-K needs to be
      amended, the party to this Agreement deciding that an amendment to such Form
      8-K, 10-D or 10-K is required will notify the Depositor, the Trustee and the
      Servicers and such parties will cooperate to prepare any necessary Form 8-K/A,
      10-D/A or 10-K/A. Any Form 15, Form 12b-25 or any amendment to Form 8-K, 10-D
      or
      10-K shall be signed by an officer of the Depositor. The Depositor and Servicers
      acknowledge that the performance by the Trustee of its duties under this Section
      8.12(f) related to the timely preparation and filing of Form 15, a Form 12b-25
      or any amendment to Form 8-K, 10-D or 10-K is contingent upon the Servicers
      and
      the Depositor observing all applicable deadlines (and the related grace periods
      thereto) in the performance of their duties under this Section 8.12 and Sections
      3.22 and 3.23. The Trustee shall have no liability for any loss, expense,
      damage, claim arising out of or with respect to any failure to properly prepare
      and/or timely file any such Form 15, Form 12b-25 or any amendments to Forms
      8-K,
      10-D or 10-K, where such failure results from the Trustee’s inability or failure
      to obtain or receive, on a timely basis, any information from any party hereto
      (other than the Trustee or any Subcontractor utilized by the Trustee) needed
      to
      prepare, arrange for execution or file such Form 15, Form 12b-25 or any
      amendments to Forms 8-K, 10-D or 10-K, not resulting from its own negligence,
      bad faith or willful misconduct.

     

    (g)  No
      later
      than 3:00 p.m. (Eastern Standard Time) (so long as the Trustee has received
      from
      the Depositor the executed Form 8-K no later than 5:00 p.m. (Eastern Standard
      Time) on the 3rd Business Day after the Reportable Event (as defined below)
      (or
      otherwise, the Trustee shall utilize reasonable best efforts to file such Form
      8-K no later than the filing deadline for such Form 8-K)) on any date within
      four (4) Business Days after the occurrence of an event requiring disclosure
      on
      Form 8-K (each such event, a “Reportable
      Event”),
      and
      also if requested by the Depositor, the Trustee shall prepare and file on behalf
      of the Trust any Form 8-K, as required by the Exchange Act, provided that
      the Depositor shall file the initial Form 8-K in connection with the
      issuance of the Certificates. Any disclosure or information related to a
      Reportable Event or that is otherwise required to be included on Form 8-K
      (“Form 8-K
      Disclosure Information”)
      shall
      be prepared by the party responsible for preparing such disclosure as set forth
      on Exhibit S hereto and compiled by the Trustee pursuant to the following
      paragraph. The Trustee will have no duty or liability for any failure hereunder
      to determine or prepare any Form 8-K Disclosure Information or any
      Form 8-K, except as set forth in the next paragraph.

     

    As
      set
      forth on Exhibit S hereto, for so long as the Trust is subject to the Exchange
      Act reporting requirements, no later than noon (Eastern Standard Time) on the
      2nd Business Day after the occurrence of a Reportable Event certain parties
      to
      this Agreement shall be required to provide to the Depositor and the Trustee,
      to
      the extent known by such applicable parties, any Form 8-K Disclosure
      Information, if applicable. The Trustee shall compile all such information
      provided to it in a Form 8-K prepared by it.

     

    The
      Trustee shall prepare and forward electronically a draft copy of the
      Form 8-K to the Depositor sufficiently far in advance of, but in no event
      later than noon (Eastern Standard Time) on the 3rd Business Day after a
      Reportable Event, when the Depositor is required to execute such Form 8-K to
      permit the Depositor to review, verify and execute such Form 8-K. No later
      than
      the end of the 3rd Business Day after the Reportable Event, an officer of the
      Depositor shall sign the Form 8-K and return an electronic or fax copy of
      such signed Form 8-K (with an original executed hard copy to follow by
      overnight mail) to the Trustee. If a Form 8-K cannot be filed on time or if
      a
      previously filed Form 8-K needs to be amended, the Trustee will follow the
      procedures set forth in Section 8.12(f)(ii). The signing party at the
      Depositor can be contacted at the Depositor’s address for notices set forth in
      Section 10.5(b)(ii)(a), or such other address as to which the Depositor has
      provided prior written notice to the Trustee. The Depositor acknowledges that
      the performance by the Trustee of its duties under this Section 8.12(g)
      related to the timely preparation and filing of Form 8-K is contingent, in
      part, upon each Servicer and the Depositor and any other Person obligated to
      provide Form 8-K Disclosure Information as set forth on Exhibit S hereto,
      providing such information to the Trustee in EDGAR-compatible form at the email
      address for the Trustee set forth in Section 10.05, using Exhibit V, observing
      all applicable deadlines in the performance of their duties under this
      Section 8.12(g). The Trustee shall have no liability for any loss, expense,
      damage or claim arising out of or with respect to any failure to properly
      prepare and/or timely file such Form 8-K, where such failure results from
      the Trustee’s inability or failure to obtain or receive, on a timely basis, any
      information or signature from any party hereto (other than the Trustee or any
      Subcontractor utilized by the Trustee) needed to prepare, arrange for execution
      or file such Form 8-K, not resulting from its own negligence, bad faith or
      willful misconduct.

     

    (h)  The
      Trustee shall have no liability for any loss, expense, damage or claim arising
      out of or resulting from (i) the accuracy or inaccuracy of any Additional
      Form 10-D Disclosure, Additional Form 10-K Disclosure or Form 8-K
      Disclosure Information (excluding any information therein provided by the
      Trustee or any Subcontractor utilized by the Trustee) provided to the Trustee
      in
      connection with the preparation of Forms 10-D, 10-K and 8-K pursuant to
      this Section 8.12, or (ii) the failure of the Depositor to timely
      execute and return for filing any Forms 10-D, 10-K and 8-K required to be
      filed by the Trustee pursuant to this Section 8.12, in either case, not
      resulting from the Trustee’s own negligence, bad faith or
      misconduct.

     

    Section
      8.13  Tax
      Treatment of Swap Payments and Swap Termination Payments.
      For
      federal income tax purposes, each holder of a Class A Certificate, Class M
      Certificate and Class B Certificate is deemed to own an undivided beneficial
      ownership interest in a REMIC regular interest and the right to receive payments
      from either the Excess Reserve Fund or the Swap Account in respect of any Basis
      Risk CarryForward Amounts or the obligation to make payments to the Swap
      Account. For federal income tax purposes, the Trustee will account for payments
      to each Class A Certificate, Class M Certificate and Class B Certificate as
      follows: each Class A Certificate, Class M Certificate and Class B Certificate
      will be treated as receiving their entire payment from REMIC III (regardless
      of
      any Swap Termination Payment or obligation under the Interest Rate Swap
      Agreement) and subsequently paying their portion of any Swap Termination Payment
      in respect of each such Class’ obligation under the Interest Rate Swap
      Agreement. In the event that any such Class is resecuritized in a REMIC, the
      obligation under the Interest Rate Swap Agreement to pay any such Swap
      Termination Payment (or any shortfall in Net Swap Payment), will be made by
      one
      or more of the REMIC Regular Interests issued by the resecuritization REMIC
      subsequent to such REMIC Regular Interest receiving its full payment from any
      such Class A Certificate, Class M Certificate or Class B
      Certificate.

     

    The
      REMIC
      Regular Interest corresponding to a Class A Certificate, Class M Certificate
      or
      Class B Certificate will be entitled to receive interest and principal payments
      at the times and in the amounts equal to those made on the certificate to which
      it corresponds, except that (i) the maximum interest rate of that REMIC regular
      interest will equal the Group I Loan Cap, Group II Loan Cap or WAC Cap, as
      applicable, computed for this purpose by limiting the notional amount of the
      Interest Rate Swap Agreement to the Pool Stated Principal Balance and (ii)
      any
      Swap Termination Payment will be treated as being payable solely from amounts
      otherwise payable to the Class X Certificates. As a result of the foregoing,
      the
      amount of distributions and taxable income on the REMIC Regular Interest
      corresponding to a Class A Certificate, Class M Certificate and Class B
      Certificate may exceed the actual amount of distributions on the Class A
      Certificates, Class M Certificates and Class B Certificates.

     

    Section
      8.14  Distributions
      on the REMIC Regular Interests.
      The
      Trustee shall elect that each of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC
      V
      and REMIC VI shall be treated as a REMIC under Section 860D of the Code. Any
      inconsistencies or ambiguities in this Agreement or in the administration of
      this Agreement shall be resolved in a manner that preserves the validity of
      such
      REMIC elections. The REMIC I Regular Interests shall constitute the assets
      of
      REMIC II. The REMIC II Regular Interests shall constitute the assets of REMIC
      III. The Class X Interest shall constitute the assets of REMIC IV. The Class
      P
      Interest shall constitute the assets of REMIC V. The Class IO Interest shall
      constitute the assets of REMIC VI.

     

    (a)  On
      each
      Distribution Date, the following amounts, in the following order of priority
      and
      in accordance with the Servicer Remittance Report, shall be distributed by
      REMIC
      I to REMIC II on account of the REMIC I Group I Regular Interests or withdrawn
      from the Distribution Account and distributed to the Holders of the Class R-I
      Interest, as the case may be:

     

    (i)  to
      Holders of each of REMIC I Regular Interest I and REMIC I Regular Interest
      I-1-A
      through I-61-B, on a pro
      rata basis,
      in
      an amount equal to (A) Uncertificated Accrued Interest for such REMIC I Regular
      Interests for such Distribution Date, plus (B) any amounts payable in respect
      thereof remaining unpaid from previous Distribution Dates;

     

    (ii)  to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      above, payments of principal shall be allocated as follows: to REMIC I Regular
      Interest I, then to REMIC I Regular Interests I-1-A through I-61-B starting
      with
      the lowest numerical denomination until the Uncertificated Principal Balance
      of
      each such REMIC I Regular Interest is reduced to zero, provided that, for REMIC
      I Regular Interests with the same numerical denomination, such payments of
      principal shall be allocated pro
      rata
      between
      such REMIC I Regular Interests; and

     

    (iii)  to
      the
      Holders of REMIC I Regular Interest P, (A) on each Distribution Date, 100%
      of
      the amount paid in respect of Prepayment Charges and (B) if such Distribution
      Date follows the Prepayment Period during which occurs the latest date on which
      a Prepayment Charge may be required to be paid in respect of any Mortgage Loan,
      until $100 has been distributed pursuant to this clause.

     

    (b)  On
      each
      Distribution Date, the following amounts, in the following order of priority
      and
      in accordance with the Servicer Remittance Report, shall be distributed by
      REMIC
      I to REMIC II on account of the REMIC I Group II Regular Interests or withdrawn
      from the Distribution Account and distributed to the Holders of the Class R-I
      Interest, as the case may be:

     

    (i)  to
      Holders of each of REMIC I Regular Interest II and REMIC I Regular Interest
      II-1-A through II-61-B, pro
      rata,
      in an
      amount equal to (A) Uncertificated Accrued Interest for such REMIC I Regular
      Interests for such Distribution Date, plus (B) any amounts payable in respect
      thereof remaining unpaid from previous Distribution Dates; 

     

    (ii)  to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      above, payments of principal shall be allocated as follows: to REMIC I Regular
      Interest II, then to REMIC I Regular interests II-1-A through II-61-B starting
      with the lowest numerical denomination until the Uncertificated Principal
      Balance of each such REMIC I Regular Interest is reduced to zero, provided
      that,
      for REMIC I Regular Interests with the same numerical denomination, such
      payments of principal shall be allocated on a pro
      rata
      basis
      between such REMIC I Regular Interests.

     

    (c)  On
      each
      Distribution Date, the following amounts, in the following order of priority
      and
      in accordance with the Servicer Remittance Report, shall be distributed by
      REMIC
      II to REMIC III on account of the REMIC II Regular Interests or withdrawn from
      the Distribution Account and distributed to the Holders of the Class R-II
      Interest, as the case may be:

     

    (i)  first,
      to
      the Holders of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-A1,
      REMIC II Regular Interest LT-A2a, REMIC II Regular Interest LT-A2b, REMIC II
      Regular Interest LT-A2c, REMIC II Regular Interest LT-A2d, REMIC II Regular
      Interest LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest
      LT-M3, REMIC II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC
      II Regular Interest LT-M6, REMIC II Regular Interest LT-B1, REMIC II Regular
      Interest LT-B2, REMIC II Regular Interest LT-B3, REMIC II Regular Interest
      LT-B4
      and REMIC II Regular Interest LT-ZZ, on a pro
      rata
      basis,
      in an amount equal to (A) the Uncertificated Accrued Interest for each such
      REMIC II Regular Interest for such Distribution Date, plus (B) any amounts
      in
      respect thereof remaining unpaid from previous Distribution Dates. Amounts
      payable as Uncertificated Accrued Interest in respect of REMIC II Regular
      Interest LT-ZZ shall be reduced and deferred when the REMIC II
      Overcollateralization Amount is less than the REMIC II Targeted
      Overcollateralization Amount, by the lesser of (x) the amount of such difference
      and (y) the REMIC II Regular Interest LT-ZZ Maximum Interest Deferral Amount
      and
      such amount will be payable to the REMIC II Regular Interest LT-A1, REMIC II
      Regular Interest LT-A2a, REMIC II Regular Interest LT-A2b, REMIC II Regular
      Interest LT-A2c, REMIC II Regular Interest LT-A2d, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-B1, REMIC II Regular Interest
      LT-B2, REMIC II Regular Interest LT-B3 and REMIC II Regular Interest LT-B4
      in
      the same proportion as the Subordination Deficiency is allocated to the
      Corresponding Certificates and the Uncertificated Principal Balance of REMIC
      II
      Regular Interest LT-ZZ shall be increased by such amount;

     

    (ii)  second,
      to the Holders of REMIC II Regular Interests, in an amount equal to the
      remainder of the REMIC II Marker Allocation Percentage of the Interest
      Remittance Amount and the Principal Distribution Amount for such Distribution
      Date after the distributions made pursuant to clause (i) above, allocated as
      follows:

     

    (A)  98.00%
      of
      such remainder (other than amounts payable under clause (C) below) to the
      Holders of REMIC II Regular Interest LT-AA and REMIC II Regular Interest LT-P,
      until the Uncertificated Principal Balance of such REMIC II Regular Interest
      is
      reduced to zero, provided, however, that the Uncertificated Principal Balance
      of
      REMIC II Regular Interest LT-P shall not be reduced until the Distribution
      Date
      following the month after the expiration of the last Prepayment Charge or any
      Distribution Date thereafter, at which point such amount shall be distributed
      to
      REMIC II Regular Interest LT-P, until $100 has been distributed pursuant to
      this
      clause;

     

    (B)  2.00%
      of
      such remainder, first, to the Holders REMIC II Regular Interest LT-A1, REMIC
      II
      Regular Interest LT-A2a, REMIC II Regular Interest LT-A2b, REMIC II Regular
      Interest LT-A2c, REMIC II Regular Interest LT-A2d, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-B1, REMIC II Regular Interest
      LT-B2, REMIC II Regular Interest LT-B3 and REMIC II Regular Interest LT-B4,
      1%
      in the same proportion as principal payments are allocated to the Corresponding
      Certificates, until the Uncertificated Principal Balances of such REMIC II
      Regular Interests are reduced to zero and second, to the Holders of REMIC II
      Regular Interest LT-ZZ (other than amounts payable under the proviso below),
      until the Uncertificated Principal Balance of such REMIC II Regular Interest
      is
      reduced to zero; and

     

    (C)  any
      remaining amount to the Holders of the Class R Certificates (in respect of
      the
      Class R-II Interest).

     

    provided,
      however, that (i) 98.00% and (ii) 2.00% of any principal payments that are
      attributable to an Overcollateralization Release Amount shall be allocated
      to
      Holders of (i) REMIC II Regular Interest LT-AA and REMIC II Regular Interest
      LT-P, in that order and (ii) REMIC II Regular Interest LT-ZZ, respectively;
      provided that REMIC II Regular Interest LT-P shall not be reduced until
      Distribution Date that follows the Prepayment Period during which occurs the
      latest date on which a Prepayment Charge may be required to be paid in respect
      of any Mortgage Loan, at which point such amount shall be distributed to REMIC
      II Regular Interest LT-P, until $100 has been distributed pursuant to this
      clause.

     

    (iii)  third,
      to
      the Holders of REMIC II Regular Interest LT-1SUB, REMIC II Regular Interest
      LT-1GRP, REMIC II Regular Interest LT-2SUB, REMIC II Regular Interest LT-2GRP
      and REMIC II Regular Interest LT-XX, on a pro
      rata
      basis,
      in an amount equal to (A) the Uncertificated Accrued Interest for each such
      REMIC II Regular Interest for such Distribution Date, plus (B) any amounts
      in
      respect thereof remaining unpaid from previous Distribution Dates;
      and

     

    (iv)  fourth,
      to the Holders of REMIC II Regular Interests, in an amount equal to the
      remainder of the REMIC II Sub WAC Allocation Percentage of the Interest
      Remittance Amount and the Principal Distribution Amount for such Distribution
      Date after the distributions made pursuant to clause (iii) above, such that
      distributions of principal shall be deemed to be made to the REMIC II Regular
      Interests first, so as to keep the Uncertificated Principal Balance of each
      REMIC II Regular Interest ending with the designation “GRP” equal to 0.01% of
      the aggregate Stated Principal Balance of the Mortgage Loans in the related
      loan
      group; second, to each REMIC II Regular Interest ending with the designation
      “SUB,” so that the Uncertificated Principal Balance of each such REMIC II
      Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated
      Principal Balance of the Mortgage Loans in the related loan group over (y)
      the
      current Certificate Principal Balance of the Class A Certificates in the related
      loan group (except that if any such excess is a larger number than in the
      preceding distribution period, the least amount of principal shall be
      distributed to such REMIC II Regular Interests such that the REMIC II
      Subordinated Balance Ratio is maintained); and third, any remaining principal
      to
      REMIC II Regular Interest LT-XX.

     

    Section
      8.15  Certain
      Interest Shortfalls on the REMIC Regular Interests.

     

    (a)  For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC I Group 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 first,
      to
      REMIC I Regular Interest I and to the REMIC I Group I Regular Interests ending
      with the designation “B”, on a pro
      rata
      basis
      based on, and to the extent of, one month’s interest at the then applicable
      respective Uncertificated REMIC I Pass-Through Rates on the respective
      Uncertificated Principal Balances of each such REMIC I Regular Interest, and
      then, to REMIC I Group I Regular Interests ending with the designation “A”, on a
pro
      rata
      basis
      based on, and to the extent of, one month’s interest at the then applicable
      respective Uncertificated REMIC I Pass-Through Rates on the respective
      Uncertificated Principal Balances of each such REMIC I Regular Interest. For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC I Group 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 Group II Mortgage Loans for any
      Distribution Date shall be allocated first,
      REMIC I Regular Interest II and to the REMIC I Group II Regular Interests ending
      with the designation “B”, on a pro
      rata
      basis
      based on, and to the extent of, one month’s interest at the then applicable
      respective Uncertificated REMIC I Pass-Through Rates on the respective
      Uncertificated Principal Balances of each such REMIC I Regular Interest, and
      then, to REMIC I Group II Regular Interests ending with the designation “A”, on
      a pro
      rata
      basis
      based on, and to the extent of, one month’s interest at the then applicable
      respective Uncertificated REMIC I Pass-Through Rates on the respective
      Uncertificated Principal Balances of each such REMIC I Regular
      Interest.

     

    (b)  For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC II Regular Interests for any Distribution Date: 

     

    (i) The
      REMIC
      II Marker Allocation Percentage of 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 among
      REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-A1, REMIC II
      Regular Interest LT-A2a, REMIC II Regular Interest LT-A2b, REMIC II Regular
      Interest LT-A2c, REMIC II Regular Interest LT-A2d, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-B1, REMIC II Regular Interest
      LT-B2, REMIC II Regular Interest LT-B3, REMIC II Regular Interest LT-B4 and
      REMIC I Regular Interest LT-ZZ, on a pro
      rata
      basis
      based on, and to the extent of, one month’s interest at the then applicable
      respective Uncertificated REMIC I Pass-Through Rate on the respective
      Uncertificated Principal Balance of each such REMIC I Regular Interest;
      and

     

    (ii) The
      REMIC
      II Sub WAC Allocation Percentage of 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 to
      Uncertificated Accrued Interest payable to REMIC II Regular Interest LT-1SUB,
      REMIC II Regular Interest LT-1GRP, REMIC II Regular Interest LT-2SUB, REMIC
      II
      Regular Interest LT-2GRP and REMIC II Regular Interest LT-XX, on a pro
      rata
      basis
      based on, and to the extent of, one month’s interest at the then applicable
      respective Uncertificated REMIC II Pass-Through Rate on the respective
      Uncertificated Principal Balance of each such REMIC II Regular
      Interest.

     

    Section
      8.16  Allocation
      of Realized Losses to the REMIC Regular Interests. 

     

    (a)  With
      respect to the REMIC I Regular Interests, all Realized Losses on the Group
      I
      Mortgage Loans shall be allocated shall be allocated on each Distribution Date
      first, to REMIC I Regular Interest I until the Uncertificated Principal Balance
      has been reduced to zero, and second, to REMIC I Regular Interest I-1-A through
      REMIC I Regular Interest I-61-B, starting with the lowest numerical denomination
      until such REMIC I Regular Interest has been reduced to zero, provided that,
      for
      REMIC I Regular Interests with the same numerical denomination, such Realized
      Losses shall be allocated on a pro
      rata
      basis
      between such REMIC I Regular Interests. All Realized Losses on the Group II
      Mortgage Loans shall be allocated on each Distribution Date first, to REMIC
      I
      Regular Interest II until the Uncertificated Principal Balance has been reduced
      to zero, and second, to REMIC I Regular Interest II-1-A through REMIC I Regular
      Interest II-61-B, starting with the lowest numerical denomination until such
      REMIC I Regular Interest has been reduced to zero, provided that, for REMIC
      I
      Regular Interests with the same numerical denomination, such Realized Losses
      shall be allocated on a pro
      rata
      basis
      between such REMIC I Regular Interests.

     

    (b)  The
      REMIC
      II Marker Allocation Percentage 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 Uncertificated
      Accrued Interest payable to the REMIC II Regular Interest LT-AA and REMIC II
      Regular Interest LT-ZZ 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 REMIC II Regular Interest LT-AA and REMIC II Regular
      Interest LT-ZZ 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 REMIC II Regular Interest LT-AA, REMIC II Regular Interest
      LT-B4 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until
      the Uncertificated Principal Balance of REMIC II Regular Interest LT-B4 has
      been
      reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC
      II
      Regular Interest LT-AA, REMIC II Regular Interest LT-B3 and REMIC II Regular
      Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest LT-B3 has been reduced to zero; fifth,
      to
      the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC
      II Regular Interest LT-B2 and REMIC II Regular Interest LT-ZZ, 98%, 1% and
      1%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest LT-B2 has been reduced to zero; sixth, to the Uncertificated Principal
      Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-B1
      and
      REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the
      Uncertificated Principal Balance of REMIC II Regular Interest LT-B1 has been
      reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC
      II
      Regular Interest LT-AA, REMIC II Regular Interest LT-M6 and REMIC II Regular
      Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest LT-M6 has been reduced to zero; eighth,
      to
      the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC
      II Regular Interest LT-M5 and REMIC II Regular Interest LT-ZZ, 98%, 1% and
      1%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest LT-M5 has been reduced to zero; ninth, to the Uncertificated Principal
      Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M4
      and
      REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the
      Uncertificated Principal Balance of REMIC II Regular Interest LT-M4 has been
      reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II
      Regular Interest LT-AA, REMIC II Regular Interest LT-M3 and REMIC II Regular
      Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest LT-M3 has been reduced to zero; eleventh,
      to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA,
      REMIC II Regular Interest LT-M2 and REMIC II Regular Interest LT-ZZ, 98%, 1%
      and
      1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest LT-M2 has been reduced to zero; and twelfth, to the Uncertificated
      Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest
      LT-M1 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until
      the Uncertificated Principal Balance of REMIC II Regular Interest LT-M1 has
      been
      reduced to zero.

     

    (c)  The
      REMIC
      II Sub WAC Allocation Percentage of all Realized Losses on the Mortgage Loans
      shall be applied after all distributions have been made on each Distribution
      Date first, so as to keep the Uncertificated Principal Balance of each REMIC
      II
      Regular Interest ending with the designation “GRP” equal to 0.01% of the
      aggregate Stated Principal Balance of the Mortgage Loans in the related loan
      group; second, to each REMIC II Regular Interest ending with the designation
      “SUB,” so that the Uncertificated Balance of each such REMIC II Regular Interest
      is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance
      of
      the Mortgage Loans in the related loan group over (y) the current Certificate
      Principal Balance of the Class A Certificate in the related loan group (except
      that if any such excess is a larger number than in the preceding distribution
      period, the least amount of Realized Losses shall be applied to such REMIC
      II
      Regular Interests such that the REMIC II Subordinated Balance Ratio is
      maintained); and third, any remaining Realized Losses shall be allocated to
      REMIC II Regular Interest LT-XX.

     

     

     

    ARTICLE
      IX

     

    TERMINATION

     

    Section
      9.01  Termination
      upon Liquidation or Purchase of the Mortgage Loans.
      Subject
      to Sections 9.02 and 9.03, the obligations and responsibilities of the
      Depositor, the Servicers, the Responsible Party and the Trustee created hereby
      with respect to the Trust Fund shall terminate upon the earlier of (a) the
      purchase, on or after the Optional Termination Date by the Servicers,
      individually or together, of all Mortgage Loans (and REO Properties) at the
      price equal to the sum of (i) 100% of the unpaid principal balance of each
      Mortgage Loan (other than in respect of REO Property) plus accrued and unpaid
      interest thereon at the applicable Mortgage Rate, (ii) the lesser of
      (x) the appraised value of any REO Property as determined by the higher of
      two appraisals completed by two independent appraisers selected by the
      Servicers, individually or together, at the expense of the Servicers,
      individually or together, plus accrued and unpaid interest on each Mortgage
      Loan
      at the applicable Mortgage Rate and (y) the unpaid principal balance of
      each Mortgage Loan related to any REO Property, in each case plus accrued and
      unpaid interest thereon at the applicable Mortgage Rate, and (iii) any Swap
      Termination Payment owed to the Swap Provider pursuant to the Interest Rate
      Swap
      Agreement, and (b) the later of (i) the maturity or other liquidation
      (or any Advance with respect thereto) of the last Mortgage Loan remaining in
      the
      Trust Fund and the disposition of all REO Property and (ii) the
      distribution to Certificateholders of all amounts required to be distributed
      to
      them pursuant to this Agreement. In no event shall the trusts created hereby
      continue beyond the earlier of (i) the Latest Possible Maturity Date and (ii)
      the expiration of 21 years from the death of the survivor of the descendants
      of
      Joseph P. Kennedy, the late Ambassador of the United States to the Court of
      St.
      James’s, living on the date hereof.

     

    Notwithstanding
      anything to the contrary contained herein, no such purchase shall be permitted
      unless (i) after distribution of the proceeds thereof to the
      Certificateholders (other than the Holders of the Class X, Class P and
      Residual Certificates) pursuant to Section 9.02, the distribution of the
      remaining proceeds to the Class X and Class P Certificates is
      sufficient to pay the outstanding principal amount of and accrued and unpaid
      interest on the NIM Securities, to the extent the NIM Securities are then
      outstanding, or (ii) prior to such purchase, the Servicers, individually or
      together, shall have deposited in the related Collection Account an amount
      to be
      remitted to the NIM Trustee that, together with such remaining proceeds, will
      be
      sufficient to pay the outstanding principal amount of and accrued and unpaid
      interest on the NIM Securities, to the extent the NIM Securities are then
      outstanding.

     

    Section
      9.02  Final
      Distribution on the Certificates.
      If on
      any Remittance Date, the Servicers determine that there are no Outstanding
      Mortgage Loans and no other funds or assets in the Trust Fund other than the
      funds in the related Collection Account, the Servicers shall direct the Trustee
      promptly to send a Notice of Final Distribution to each Certificateholder and
      the Swap Provider. If the Servicers elect to terminate the Trust Fund pursuant
      to clause (a) of Section 9.01, the Servicers shall notify, by the
      25th
      day of
      the month preceding the month of the final distribution, the Depositor and
      the
      Trustee of the date the Servicers intend to terminate the Trust Fund and of
      the
      applicable repurchase price of the Mortgage Loans and REO
      Properties.

     

    A
      Notice
      of Final Distribution, specifying the Distribution Date on which
      Certificateholders may surrender their Certificates for payment of the final
      distribution and cancellation, shall be given promptly by the Trustee by letter
      to Certificateholders mailed not earlier than the 10th day and not later than
      the 15th day of the month of such final distribution. Any such Notice of Final
      Distribution shall specify (a) the Distribution Date upon which final
      distribution on the Certificates will be made upon presentation and surrender
      of
      Certificates at the office therein designated, (b) the amount of such final
      distribution, (c) the location of the office or agency at which such
      presentation and surrender must be made, and (d) that the Record Date
      otherwise applicable to such Distribution Date is not applicable, distributions
      being made only upon presentation and surrender of the Certificates at the
      office therein specified. The Trustee will give such Notice of Final
      Distribution to each Rating Agency at the time such Notice of Final Distribution
      is given to Certificateholders.

     

    In
      the
      event such Notice of Final Distribution is given, the Servicers shall cause
      all
      funds in the related Collection Account to be remitted to the Trustee for
      deposit in the Distribution Account on the Business Day prior to the applicable
      Distribution Date in an amount equal to the final distribution in respect of
      the
      Certificates. Upon such final deposit with respect to the Trust Fund and the
      receipt by the Trustee of a Request for Release therefor, the Trustee shall
      promptly release to the Servicers, the Custodial Files for the Mortgage
      Loans.

     

    Upon
      presentation and surrender of the Certificates, the Trustee shall cause to
      be
      distributed to the Certificateholders of each Class (after reimbursement of
      all
      amounts due to the Servicers, the Depositor and the Trustee hereunder), in
      each
      case on the final Distribution Date and in the order set forth in
      Section 4.02, in proportion to their respective Percentage Interests, with
      respect to Certificateholders of the same Class, up to an amount equal to
      (i) as to each Class of Regular Certificates (except the Class X
      Certificates), the Certificate Balance thereof plus for each such Class and
      the
      Class X Certificates accrued interest thereon in the case of an
      interest-bearing Certificate and all other amounts to which such Classes are
      entitled pursuant to Section 4.02 and (ii) as to the Residual
      Certificates, the amount, if any, which remains on deposit in the Distribution
      Account (other than the amounts retained to meet claims) after application
      pursuant to clause (i) above.

     

    In
      the
      event that any affected Certificateholders shall not surrender Certificates
      for
      cancellation within six months after the date specified in the above mentioned
      written notice, the Trustee shall give a second written notice to the remaining
      Certificateholders to surrender their Certificates for cancellation and receive
      the final distribution with respect thereto. If within six months after the
      second notice all the applicable Certificates shall not have been surrendered
      for cancellation, the Trustee may take appropriate steps, or may appoint an
      agent to take appropriate steps, to contact the remaining Certificateholders
      concerning surrender of their Certificates, and the cost thereof shall be paid
      out of the funds and other assets which remain a part of the Trust Fund. If
      within one year after the second notice all Certificates shall not have been
      surrendered for cancellation, the Residual Certificateholders shall be entitled
      to all unclaimed funds and other assets of the Trust Fund which remain subject
      hereto.

     

    Section
      9.03  Additional
      Termination Requirements.  In
      the event the Servicers exercise their purchase option with respect to the
      Mortgage Loans as provided in Section 9.01, the Trust Fund shall be
      terminated in accordance with the following additional requirements, unless
      the
      Trustee has been supplied with an Opinion of Counsel, at the expense the
      Servicers, to the effect that the failure to comply with the requirements of
      this Section 9.03 will not (i) result in the imposition of taxes on
“prohibited transactions” on any Trust REMIC as defined in Section 860F of
      the Code, or (ii) cause any Trust REMIC to fail to qualify as a REMIC at
      any time that any Certificates are Outstanding:

     

    (a)  The
      Trustee shall sell all of the assets of the Trust Fund to the Servicers, and,
      by
      no later than the next Distribution Date after such sale, shall distribute
      to
      the Certificateholders the proceeds of such sale in complete liquidation of
      each
      Trust REMIC; and

     

    (b)  The
      Trustee shall attach a statement to the final federal income tax return for
      each
      Trust REMIC stating that pursuant to Treasury Regulations Section 1.860F-1,
      the first day of the 90-day liquidation period for each such Trust REMIC was
      the
      date on which the Trustee sold the assets of the Trust Fund to the
      Servicers.

     

     

     

    ARTICLE
      X

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      10.01  Amendment.
      This
      Agreement may be amended from time to time by the Depositor, the Servicers,
      the
      Responsible Party and the Trustee, without the consent of any of the
      Certificateholders (i) to cure any ambiguity or mistake, (ii) to
      correct any defective provision herein or to supplement any provision herein
      which may be inconsistent with any other provision herein, (iii) to add to
      the duties of the Depositor or the Servicers, (iv) to add any other
      provisions with respect to matters or questions arising hereunder or (v) to
      modify, alter, amend, add to or rescind any of the terms or provisions contained
      in this Agreement; provided
      that any
      amendment pursuant to clauses (iv) or (v) above shall not, as
      evidenced by an Opinion of Counsel (which Opinion of Counsel shall not be an
      expense of the Trustee or the Trust Fund), adversely affect in any material
      respect the interests of any Certificateholder; and provided,
      further,
      that
      any such amendment pursuant to clause (iv) or (v) above shall not
      be deemed to adversely affect in any material respect the interests of the
      Certificateholders if the Person requesting the amendment obtains a letter
      from
      each Rating Agency stating that the amendment would not result in the
      downgrading or withdrawal of the respective ratings then assigned to the
      Certificates; it being understood and agreed that any such letter in and of
      itself will not represent a determination as to the materiality of any such
      amendment and will represent a determination only as to the credit issues
      affecting any such rating. The Trustee, the Depositor, the Responsible Party
      and
      the Servicers also may at any time and from time to time amend this Agreement,
      but without the consent of the Certificateholders to modify, eliminate or add
      to
      any of its provisions to such extent as shall be necessary or helpful to
      (i) maintain the qualification of each Trust REMIC under the Code,
      (ii) avoid or minimize the risk of the imposition of any tax on any Trust
      REMIC pursuant to the Code that would be a claim at any time prior to the final
      redemption of the Certificates or (iii) comply with any other requirements
      of the Code; provided,
      that
      the Trustee has been provided an Opinion of Counsel, which opinion shall be
      an
      expense of the party requesting such opinion but in any case shall not be an
      expense of the Trustee or the Trust Fund, to the effect that such action is
      necessary or helpful to, as applicable, (i) maintain such qualification,
      (ii) avoid or minimize the risk of the imposition of such a tax or
      (iii) comply with any such requirements of the Code.

     

    This
      Agreement may also be amended from time to time by the Depositor, the Servicers,
      the Responsible Party and the Trustee with the consent of the Holders of
      Certificates evidencing Percentage Interests aggregating not less than
      662/3%
      of each
      Class of Certificates affected thereby for the purpose of adding any provisions
      to or changing in any manner or eliminating any of the provisions of this
      Agreement or of modifying in any manner the rights of the Holders of
      Certificates; provided,
      however,
      that no
      such amendment shall (i) reduce in any manner the amount of, or delay the
      timing of, payments required to be distributed on any Certificate without the
      consent of the Holder of such Certificate, (ii) adversely affect in any
      material respect the interests of the Holders of any Class of Certificates
      in a
      manner other than as described in clause (i), without the consent of the
      Holders of Certificates of such Class evidencing, as to such Class, Percentage
      Interests aggregating not less than 662/3%
      or
      (iii) reduce the aforesaid percentages of Certificates the Holders of which
      are required to consent to any such amendment, without the consent of the
      Holders of all such Certificates then Outstanding.

     

    Notwithstanding
      any contrary provision of this Agreement, the Trustee shall not consent to
      any
      amendment to this Agreement unless (i) it shall have first received an Opinion
      of Counsel, which opinion shall not be an expense of the Trustee or the Trust
      Fund, to the effect that such amendment will not cause the imposition of any
      tax
      on any Trust REMIC or the Certificateholders or cause any such Trust REMIC
      to
      fail to qualify as a REMIC at any time that any Certificates are Outstanding
      and
      (ii) the party seeking such amendment shall have provided written notice to
      the
      Rating Agencies (with a copy of such notice to the Trustee) of such amendment,
      stating the provisions of the Agreement to be amended.

     

    Notwithstanding
      the foregoing provisions of this Section 10.01, with respect to any
      amendment that significantly modifies the permitted activities of the Trustee
      or
      the Servicers, any Certificate beneficially owned by the Depositor shall be
      deemed not to be Outstanding (and shall not be considered when determining
      the
      percentage of Certificateholders consenting or when calculating the total number
      of Certificates entitled to consent) for purposes of determining if the
      requisite consents of Certificateholders under this Section 10.01 have been
      obtained.

     

    Promptly
      after the execution of any amendment to this Agreement requiring the consent
      of
      Certificateholders, the Trustee shall furnish written notification of the
      substance or a copy of such amendment to each Certificateholder and each Rating
      Agency.

     

    It
      shall
      not be necessary for the consent of Certificateholders under this
      Section 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.

     

    Nothing
      in this Agreement shall require the Trustee to enter into an amendment without
      receiving an Opinion of Counsel (which Opinion shall not be an expense of the
      Trustee or the Trust Fund), satisfactory to the Trustee that (i) such
      amendment is permitted and is not prohibited by this Agreement and that all
      requirements for amending this Agreement have been complied with (including
      the
      obtaining of any required consents); and (ii) either (A) the amendment
      does not adversely affect in any material respect the interests of any
      Certificateholder or (B) the conclusion set forth in the immediately
      preceding clause (A) is not required to be reached pursuant to this
      Section 10.01.

     

    Notwithstanding
      the foregoing, any amendment to this Agreement shall require the prior written
      consent of the Swap Provider if such amendment materially and adversely affects
      the rights or interests of the Swap Provider.

     

    Section
      10.02  Recordation
      of Agreement; Counterparts.
      This
      Agreement is subject to recordation in all appropriate public offices for real
      property records in all the counties or other comparable jurisdictions in which
      any or all of the Mortgaged Properties are situated, and in any other
      appropriate public recording office or elsewhere, such recordation to be
      effected by the Servicers at the direction and expense of the Depositor, but
      only upon receipt of an Opinion of Counsel to the effect that such recordation
      materially and beneficially affects the interests of the
      Certificateholders.

     

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts shall constitute but one and the same
      instrument.

     

    Section
      10.03  Governing
      Law.
      THIS
      AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
      HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
      LAWS.

     

    Section
      10.04  Intention
      of Parties.
      It is
      the express intent of the parties hereto that the conveyance (i) of the
      Mortgage Loans by the Depositor and (ii) of the Trust Fund by the Depositor
      to the Trustee each be, and be construed as, an absolute sale thereof. It is,
      further, not the intention of the parties that such conveyances be deemed a
      pledge thereof. However, in the event that, notwithstanding the intent of the
      parties, such assets are held to be the property of the Depositor, as the case
      may be, or if for any other reason this Agreement is held or deemed to create
      a
      security interest in either such assets, then (i) this Agreement shall be
      deemed to be a security agreement within the meaning of the Uniform Commercial
      Code of the State of New York and (ii) the conveyances provided for in this
      Agreement shall be deemed to be an assignment and a grant by the Depositor
      to
      the Trustee, for the benefit of the Certificateholders, of a security interest
      in all of the assets transferred, whether now owned or hereafter
      acquired.

     

    The
      Depositor, for the benefit of the Certificateholders, shall, to the extent
      consistent with this Agreement, take such actions as may be necessary to ensure
      that, if this Agreement were deemed to create a security interest in the Trust
      Fund, such security interest would be deemed to be a perfected security interest
      of first priority under applicable law and will be maintained as such throughout
      the term of the Agreement. The Depositor shall arrange for filing any Uniform
      Commercial Code continuation statements in connection with any security interest
      granted or assigned to the Trustee for the benefit of the
      Certificateholders.

     

    Section
      10.05  Notices.
      (a)  The
      Trustee shall promptly provide notice to each Rating Agency with respect to
      each
      of the following of which it has actual knowledge:

     

    (i)  Any
      material change or amendment to this Agreement;

     

    (ii)  The
      occurrence of any Event of Default that has not been cured;

     

    (iii)  The
      resignation or termination of a Servicer or the Trustee and the appointment
      of
      any successor;

     

    (iv)  The
      repurchase or substitution of Mortgage Loans pursuant to Section 2.03;
      and

     

    (v)  The
      final
      payment to Certificateholders.

     

    (b)  In
      addition, the Trustee shall promptly furnish to each Rating Agency copies (which
      may be provided electronically via the Trustee’s website) of the
      following:

     

    (i)  Each
      report to Certificateholders described in Section 4.03; and

     

    (ii)  Any
      notice of a purchase of a Mortgage Loan pursuant to Section 2.02, 2.03 or
      3.11.

     

    All
      directions, demands, consents and notices hereunder shall be in writing (unless
      otherwise indicated in this paragraph) and shall be deemed to have been duly
      given when delivered to: (a) in the case of the Depositor or Morgan Stanley
& Co. Incorporated (1) Steven Shapiro, Morgan Stanley - SPG Finance, 1585
      Broadway, 10th Floor, New York, New York 10036; (2) Jeff Williams, Morgan
      Stanley - Servicing Oversight, 5002 T-Rex Ave., Suite 300, Boca Raton, Florida
      33431; (3) Peter Woroniecki, Morgan Stanley - Whole Loan Operations, 750 Seventh
      Avenue, New York, NY 10019; (4) Scott Samlin, Morgan Stanley - RFPG, 1585
      Broadway, 38th Floor, New York, New York 10036; and (5) in the case of a
      direction or demand, notification to the following email addresses:
      Jeff.Williams@ morganstanley.com, EK.Kaplan@morganstanley.com,
      Scott.Samlin@morganstanley.com and John.Monaghan@morganstanley.com; or such
      other address as may be hereafter furnished to the other parties hereto by
      the
      Depositor in writing; (b) in the case of Countrywide Servicing, 400
      Countrywide Way, Simi Valley, California 93065, Attention: John Lindberg and
      Yuan Li, Fax: (800) 658-6209; with a copy to General Counsel: Countrywide Home
      Loans Inc., 4500 Park Granada, Calabasas, California 91302, or such other
      address as may be hereafter furnished to the other parties hereto and the Swap
      Provider by Countrywide Servicing in writing; (c) in the case of Saxon, 4708
      Mercantile Drive, Fort Worth, Texas 76137,or such other address as may be
      hereafter furnished to the other parties hereto and the Swap Provider by Saxon
      in writing; (d) in the case of the Trustee, to Deutsche Bank National Trust
      Company, 1761 East St. Andrew Place, Santa Ana, California 92705,
      Attention: Trust Administration MS07C1 or such other address as the Trustee
      may
      hereafter furnish to the other parties hereto and the Swap Provider in writing;
      provided,
      however,
      all
      reports, statements, certifications and information required to be provided
      to
      the Trustee pursuant to Section 8.12 for filing shall be electronically
      forwarded to DBSec.Notifications@db.com; (e) in the case of the Responsible
      Party, 18400 Von Karman, Suite 1000, Irvine, California 92612,
      Attention: Patrick Flanagan, President, or such other address as may be
      hereafter furnished to the other parties hereto and the Swap Provider by the
      Responsible Party in writing; (f) in the case of the Swap Provider to Morgan
      Stanley Capital Services Inc., Transaction Management Group, 1585 Broadway,
      New
      York, New York 10036-8293, Attention: Chief Legal Officer, Facsimile
      No. (212) 507-4622, or such other address as the Swap Provider may
      hereafter furnish to the Depositor, the Trustee and the Servicers; in the case
      of each of the Rating Agencies, the address specified therefor in the definition
      corresponding to the name of such Rating Agency. Notices to Certificateholders
      shall be deemed given when mailed, first class postage prepaid, to their
      respective addresses appearing in the Certificate Register.

     

    Section
      10.06  Severability
      of Provisions.
      If any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Certificates or the rights of the Holders thereof.

     

    Section
      10.07  Assignment;
      Sales; Advance Facilities.
      Notwithstanding anything to the contrary contained herein, except as provided
      in
      Section 6.04, this Agreement may not be assigned by any Servicer without the
      prior written consent of the Trustee and the Depositor; provided, however,
      each
      Servicer is hereby authorized to enter into an Advance Facility under which
      (l)
      such Servicer sells, assigns or pledges to an Advancing Person the Servicer’s
      rights under this Agreement to be reimbursed for any P&I Advances or
      Servicing Advances and/or (2) an Advancing Person agrees to fund some or all
      P&I Advances or Servicing Advances required to be made by such Servicer
      pursuant to this Agreement. No consent of the Trustee, Certificateholders or
      any
      other party is required before a Servicer may enter into an Advance Facility.
      Notwithstanding the existence of any Advance Facility under which an Advancing
      Person agrees to fund P&I Advances and/or Servicing Advances on a Servicer’s
      behalf, such Servicer shall remain obligated pursuant to this Agreement to
      make
      P&I Advances and Servicing Advances pursuant to and as required by this
      Agreement, and shall not be relieved of such obligations by virtue of such
      Advance Facility.

     

    Reimbursement
      amounts shall consist solely of amounts in respect of P&I Advances and/or
      Servicing Advances made with respect to the Mortgage Loans for which a Servicer
      would be permitted to reimburse itself in accordance with this Agreement,
      assuming such Servicer had made the related P&I Advance(s) and/or Servicing
      Advance(s).

     

    The
      applicable Servicer shall maintain and provide to any successor servicer a
      detailed accounting on a loan-by-loan basis as to amounts advanced by, pledged
      or assigned to, and reimbursed to any Advancing Person. The successor servicer
      shall be entitled to rely on any such information provided by the predecessor
      servicer, and the successor servicer shall not be liable for any errors in
      such
      information.

     

    An
      Advancing Person who purchases or receives an assignment or pledge of the rights
      to be reimbursed for P&I Advances and/or Servicing Advances, and/or whose
      obligations hereunder are limited to the funding of P&I Advances and/or
      Servicing Advances shall not be required to meet the criteria for qualification
      of a Subservicer set forth in this Agreement.

     

    The
      documentation establishing any Advance Facility shall require that reimbursement
      amounts distributed with respect to each Mortgage Loan be allocated to
      outstanding unreimbursed P&I Advances or Servicing Advances (as the case may
      be) made with respect to that Mortgage Loan on a “first-in, first out” (FIFO)
      basis. Such documentation shall also require the applicable Servicer to provide
      to the related Advancing Person or its designee loan-by-loan information with
      respect to each such reimbursement amount distributed to such Advancing Person
      or Advance Facility trustee on each Distribution Date, to enable the Advancing
      Person or Advance Facility trustee to make the FIFO allocation of each such
      reimbursement amount with respect to each applicable Mortgage Loan. The
      applicable Servicer shall remain entitled to be reimbursed by the Advancing
      Person or Advance Facility trustee for all P&I Advances and Servicing
      Advances funded by such Servicer to the extent the related rights to be
      reimbursed therefor have not been sold, assigned or pledged to an Advancing
      Person.

     

    Any
      amendment to this Section 10.07 or to any other provision of this Agreement
      that
      may be necessary or appropriate to effect the terms of an Advance Facility
      as
      described generally in this Section 10.07, including amendments to add
      provisions relating to a successor servicer, may be entered into by the Trustee,
      the Depositor, the Responsible Parties and the Servicers without the consent
      of
      any Certificateholder, notwithstanding anything to the contrary in this
      Agreement, upon receipt by the Trustee of an Opinion of Counsel that such
      amendment has no material adverse effect on the Certificateholders or written
      confirmation from the Rating Agencies that such amendment will not adversely
      affect the ratings on the Certificates. Prior to entering into an Advance
      Facility, the applicable Servicer shall notify the lender under such facility
      in
      writing that: (a) the Advances financed by and/or pledged to the lender are
      obligations owed to such Servicer on a non-recourse basis payable only from
      the
      cash flows and proceeds received under this Agreement for reimbursement of
      Advances only to the extent provided herein, and the Trustee and the Trust
      are
      not otherwise obligated or liable to repay any Advances financed by the lender;
      (b) such Servicer will be responsible for remitting to the lender the applicable
      amounts collected by it as reimbursement for Advances funded by the lender,
      subject to the restrictions and priorities created in this Agreement; and (c)
      the Trustee shall not have any responsibility to track or monitor the
      administration of the financing arrangement between such applicable Servicer
      and
      the lender.

     

    Section
      10.08  Limitation
      on Rights of Certificateholders.
      The
      death or incapacity of any Certificateholder shall not operate to terminate
      this
      Agreement or the Trust created hereby, nor entitle such Certificateholder’s
      legal representative or heirs to claim an accounting or to take any action
      or
      commence any proceeding in any court for a petition or winding up of the Trust
      created hereby, or otherwise affect the rights, obligations and liabilities
      of
      the parties hereto or any of them.

     

    No
      Certificateholder shall have any right to vote (except as provided herein)
      or in
      any manner otherwise control the operation and management of the Trust Fund,
      or
      the obligations of the parties hereto, nor shall anything herein set forth
      or
      contained in the terms of the Certificates be construed so as to constitute
      the
      Certificateholders from time to time as partners or members of an association;
      nor shall any Certificateholder be under any liability to any third party by
      reason of any action taken by the parties to this Agreement pursuant to any
      provision hereof.

     

    No
      Certificateholder shall have any right by virtue or by availing itself of any
      provisions of this Agreement to institute any suit, action or proceeding in
      equity or at law upon or under or with respect to this Agreement, unless such
      Holder previously shall have given to the Trustee a written notice of an Event
      of Default and of the continuance thereof, as herein provided, and unless the
      Holders of Certificates evidencing not less than 25% of the Voting Rights
      evidenced by the Certificates shall also have made written request to the
      Trustee to institute such action, suit or proceeding in its own name as Trustee
      hereunder and shall have offered to the Trustee such reasonable indemnity as
      it
      may require against the costs, expenses, and liabilities to be incurred therein
      or thereby, and the Trustee, for 60 days after its receipt of such notice,
      request and offer of indemnity shall have neglected or refused to institute
      any
      such action, suit or proceeding; it being understood and intended, and being
      expressly covenanted by each Certificateholder with every other
      Certificateholder and the Trustee, that no one or more Holders of Certificates
      shall have any right in any manner whatever by virtue or by availing itself
      or
      themselves of any provisions of this Agreement to affect, disturb or prejudice
      the rights of the Holders of any other of the Certificates, or to obtain or
      seek
      to obtain priority over or preference to any other such Holder or to enforce
      any
      right under this Agreement, except in the manner herein provided and for the
      common benefit of all Certificateholders. For the protection and enforcement
      of
      the provisions of this Section 10.08, each and every Certificateholder and
      the Trustee shall be entitled to such relief as can be given either at law
      or in
      equity.

     

    Section
      10.09  Inspection
      and Audit Rights.
      Each
      Servicer agrees that, on 5 Business Days prior notice, it will permit any
      representative of the Depositor or the Trustee during such Person’s normal
      business hours, to examine all the books of account, records, reports and other
      papers of such Person relating to the Mortgage Loans, to make copies and
      extracts therefrom, to cause such books to be audited by independent certified
      public accountants selected by the Depositor or the Trustee and to discuss
      its
      affairs, finances and accounts relating to the Mortgage Loans with its officers,
      employees and independent public accountants (and by this provision each
      Servicer hereby authorizes said accountants to discuss with such representative
      such affairs, finances and accounts), all at such reasonable times and as often
      as may be reasonably requested. Any out-of-pocket expense of a Servicer incident
      to the exercise by the Depositor or the Trustee of any right under this Section
      10.09 shall be borne by such Servicer.

     

    Section
      10.10  Certificates
      Nonassessable and Fully Paid.
      It is
      the intention of the Depositor that Certificateholders shall not be personally
      liable for obligations of the Trust Fund, that the interests in the Trust Fund
      represented by the Certificates shall be nonassessable for any reason
      whatsoever, and that the Certificates, upon due authentication thereof by the
      Trustee pursuant to this Agreement, are and shall be deemed fully
      paid.

     

    Section
      10.11  Rule
      of Construction.
      Article
      and section headings are for the convenience of the reader and shall not be
      considered in interpreting this Agreement or the intent of the parties
      hereto.

     

    Section
      10.12  Waiver
      of Jury Trial.
      EACH
      PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, WAIVES (TO THE EXTENT
      PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY
      DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH
      DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

     

    Section
      10.13  Rights
      of the Swap Provider and the Cap Provider.
      Each of
      the Swap Provider and the Cap Provider shall be deemed a third-party beneficiary
      of this Agreement to the same extent as if it were a party hereto and shall
      have
      the right to enforce its rights under this Agreement.

     

    Section
      10.14  Regulation
      AB Compliance; Intent of the Parties; Reasonableness.
      The
      parties hereto acknowledge that interpretations of the requirements of
      Regulation AB may change over time, whether due to interpretive guidance
      provided by the Commission or its staff, consensus among participants in the
      asset-backed securities markets, advice of counsel, or otherwise, and agree
      to
      comply with all reasonable requests made by the Depositor in good faith for
      delivery of information under these provisions on the basis of evolving
      interpretations of Regulation AB. In connection with the Trust, each Servicer
      and the Trustee shall cooperate fully with the Depositor to deliver to the
      Depositor (including its assignees or designees), any and all statements,
      reports, certifications, records and any other information available to such
      party and reasonably necessary in the good faith determination of the Depositor
      to permit the Depositor to comply with the provisions of Regulation AB, together
      with such disclosures relating to each Servicer and the Trustee, as applicable,
      reasonably believed by the Depositor to be necessary in order to effect such
      compliance.

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

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

    

    
      	 	
              MORGAN
                STANLEY ABS CAPITAL I INC., as Depositor

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Steven Shapiro

            
	 	
              Name:

            	
              Steven
                Shapiro

            
	 	
              Title:

            	
              Managing
                Director

            
	 	 
	 	 
	 	 
	 	
              COUNTRYWIDE
                HOME LOANS SERVICING LP, 

              as
                Servicer

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Jordan Cohen

            
	 	
              Name:

            	
              Jordan
                Cohen

            
	 	
              Title:

            	
              Vice
                President

            
	 	 	 
	 	 	 
	 	 	 
	 	
              SAXON
                MORTGAGE SERVICES, INC., 

              as
                Servicer

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Stella F. Hess

            
	 	
              Name:

            	
              Stella
                F. Hess

            
	 	
              Title:

            	
              Executive
                Vice President

            
	 	 	 
	 	 	 
	 	 	 
	 	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY, solely as Trustee and not in its individual
                capacity

            
	 	 
	 	
              By:

            	
              /s/
                Barbara Campbell

            
	 	
              Name:

            	
              Barbara
                Campbell

            
	 	
              Title:

            	
              Vice
                President

            
	 	 	 
	 	
              By:

            	
              /s/
                Jennifer Hermansader

            
	 	
              Name:

            	
              Jennifer
                Hermansader

            
	 	
              Title:

            	
              Associate

            
	 	 
	 	
              NC
                CAPITAL CORPORATION, 

              as
                Responsible Party

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Kevin Cloyd

            
	 	
              Name:

            	
              Kevin
                Cloyd

            
	 	
              Title:

            	
              President

            

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE I

     

    Mortgage
      Loan Schedule

     

    (Available
      Upon Request to Trustee)

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE II

     

    Morgan
      Stanley ABS Capital Inc.

    Mortgage
      Pass-Through Certificates,

    Series 2007-NC1

     

    Representations
      and Warranties of Countrywide Servicing, as Servicer

     

    Countrywide
      Servicing hereby makes the representations and warranties set forth in this
      Schedule II to the Depositor and the Trustee as of the Closing
      Date.

    

    (a)  Due
      Organization and Authority. The Servicer is validly existing, and in good
      standing under the laws of its jurisdiction of incorporation or formation and
      has all licenses necessary to carry on its business as now being conducted
      and
      is licensed, qualified and in good standing in the states where the Mortgaged
      Property is located if the laws of such state require licensing or qualification
      in order to conduct business of the type conducted by the Servicer. The Seller
      has the power and authority to execute and deliver this Pooling and Servicing
      Agreement and to perform its obligations hereunder; the execution, delivery
      and
      performance of this Pooling and Servicing Agreement (including all instruments
      of transfer to be delivered pursuant to this Pooling and Servicing Agreement)
      by
      the Servicer and the consummation of the transactions contemplated hereby have
      been duly and validly authorized; this Pooling and Servicing Agreement has
      been
      duly executed and delivered and constitutes the valid, legal, binding and
      enforceable obligation of the Servicer, except as enforceability may be limited
      by (i) bankruptcy, insolvency, liquidation, receivership, moratorium,
      reorganization or other similar laws affecting the enforcement of the rights
      of
      creditors and (ii) general principles of equity, whether enforcement is sought
      in a proceeding in equity or at law. All requisite action has been taken by
      the
      Servicer to make this Pooling and Servicing Agreement valid and binding upon
      the
      Servicer in accordance with its terms;

     

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

     

    (c)  Ordinary
      Course of Business. The consummation of the transactions contemplated by this
      Pooling and Servicing Agreement are in the ordinary course of business of the
      Servicer;

     

    (d)  No
      Conflicts. Neither the execution and delivery of this Pooling and Servicing
      Agreement by the Servicer, the consummation of the transactions contemplated
      hereby, nor the fulfillment of or compliance with the terms and conditions
      of
      this Pooling and Servicing Agreement, will conflict with or result in a breach
      of any of the terms, conditions or provisions of the Servicer’s partnership
      agreement or any legal restriction or any agreement or instrument to which
      the
      Servicer is now a party or by which it is bound, or constitute a default or
      result in an acceleration under any of the foregoing, or result in the violation
      of any law, rule, regulation, order, judgment or decree to which the Servicer
      or
      its property is subject, or result in the creation or imposition of any lien,
      charge or encumbrance that would have an adverse effect upon any of its
      properties pursuant to the terms of any mortgage, contract, deed of trust or
      other instrument, or impair the ability of the Trustee to realize on the
      Mortgage Loans, impair the value of the Mortgage Loans, or impair the ability
      of
      the Trustee to realize the full amount of any insurance benefits accruing
      pursuant to this Pooling and Servicing Agreement;

     

    (e)  No
      Litigation Pending. There is no action, suit, proceeding or investigation
      pending or, to best of knowledge of the Servicer, threatened against the
      Servicer, before any court, administrative agency or other tribunal asserting
      the invalidity of this Pooling and Servicing Agreement, seeking to prevent
      the
      consummation of any of the transactions contemplated by this Pooling and
      Servicing Agreement or which, either in any one instance or in the aggregate,
      may reasonably result in any material adverse change in the business,
      operations, financial condition, properties or assets of the Servicer, or in
      any
      material impairment of the right or ability of the Servicer to carry on its
      business substantially as now conducted, or in any material liability on the
      part of the Servicer, or which would draw into question the validity of this
      Pooling and Servicing Agreement or the Mortgage Loans or of any action taken
      or
      to be taken in connection with the obligations of the Servicer contemplated
      herein, or which would be likely to impair materially the ability of the
      Servicer to perform under the terms of this Pooling and Servicing
      Agreement;

     

    (f)  Ability
      to Perform; Solvency. The Servicer does not believe, nor does it have any reason
      or cause to believe, that it cannot perform each and every covenant contained
      in
      this Pooling and Servicing Agreement. The Servicer is solvent;

     

    (g)  Servicer’s
      Ability to Service. The Servicer is an approved seller/servicer for Fannie
      Mae
      and Freddie Mac in good standing and is a mortgagee approved by the Secretary
      of
      HUD. No event has occurred, including a change in insurance coverage, which
      would make the Servicer unable to comply with Fannie Mae, Freddie Mac or HUD
      eligibility requirements;

     

    (h)  Reasonable
      Servicing Fee. The Servicer acknowledges and agrees that the Servicing Fee
      represents reasonable compensation for performing such services and that the
      entire Servicing Fee shall be treated by the Servicer, for accounting and tax
      purposes, as compensation for the servicing and administration of the Mortgage
      Loans pursuant to this Pooling and Servicing Agreement; and

     

    (i)  No
      Untrue
      Information. Neither this Pooling and Servicing Agreement nor any information,
      statement, tape, diskette, report, form, or other document furnished or to
      be
      furnished pursuant to this Pooling and Servicing Agreement or any Reconstitution
      Agreement or in connection with the transactions contemplated hereby (including
      any Pass-Through Transfer or Whole Loan Transfer) contains or will contain
      any
      untrue statement of fact or omits or will omit to state a fact necessary to
      make
      the statements contained herein or therein not misleading.

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    SCHEDULE
      III

     

    Morgan
      Stanley ABS Capital Inc.

    Mortgage
      Pass-Through Certificates,

    Series 2007-NC1

    

    Representations
      and Warranties of the Responsible Party as to the Mortgage
      Loans

     

    NC
      Capital Corporation hereby makes the representations and warranties set forth
      in
      this Schedule III as to the Mortgage Loans only to the Depositor, the
      Servicer and the Trustee, as of January 26, 2007 (the “Securitization
      Closing Date”)
      (unless otherwise expressly indicated). Capitalized terms used but not otherwise
      defined in this Schedule III shall have the meanings ascribed thereto in the
      Purchase Agreement.

     

    (a)  Mortgage
      Loans as Described. NC Capital Corporation has delivered to the Sponsor, as
      of
      January 1, 2007, the Data Tape Information and that Data Tape Information and
      the information set forth on the Mortgage Loan Schedule (other than item (21)
      thereof, as to which NC Capital Corporation makes no representation or warranty)
      are true and correct, including, without limitation, the terms of the Prepayment
      Charges, if any, as of the Securitization Closing Date;

     

    (b)  Payments
      Current. All payments required to be made up to January 1, 2007 for the Mortgage
      Loan under the terms of the Mortgage Note, other than payments not yet 30 days
      delinquent, have been made and credited. No payment required under the Mortgage
      Loan is 30 days or more delinquent nor, except as otherwise disclosed to the
      Purchaser and set forth on an exhibit to the related Assignment and Conveyance
      Agreement, has any payment under the Mortgage Loan been 30 days or more
      delinquent at any time since the origination of the Mortgage Loan. The first
      Monthly Payment was or shall be made with respect to the Mortgage Loan on its
      Due Date or within the grace period, all in accordance with the terms of the
      related Mortgage Note;

     

    (c)  No
      Outstanding Charges. There are no defaults in complying with the terms of the
      Mortgage, and all taxes, governmental assessments, insurance premiums, water,
      sewer and municipal charges, leasehold payments or ground rents which previously
      became due and owing have been paid, or an escrow of funds has been established
      in an amount sufficient to pay for every such item which remains unpaid and
      which has been assessed but is not yet due and payable. The Seller has not
      advanced funds, or induced, solicited or knowingly received any advance of
      funds
      by a party other than the Mortgagor, directly or indirectly, for the payment
      of
      any amount required under the Mortgage Loan, except for interest accruing from
      the date of the Mortgage Note or date of disbursement of the Mortgage Loan
      proceeds, whichever is earlier, to the day which precedes by one month the
      related Due Date of the first installment of principal and
      interest;

     

    (d)  Original
      Terms Unmodified. The terms of the Mortgage Note and Mortgage have not been
      impaired, waived, altered or modified in any respect, from the date of
      origination except by a written instrument which has been recorded, if necessary
      to protect the interests of the Purchaser, and which has been delivered to
      the
      Custodian or to such other Person as the Purchaser shall designate in writing,
      and the terms of which are reflected in the related Mortgage Loan Schedule.
      The
      substance of any such waiver, alteration or modification has been approved
      by
      the title insurer, if any, to the extent required by the policy, and its terms
      are reflected on the related Mortgage Loan Schedule, if applicable. No Mortgagor
      has been released, in whole or in part, except in connection with an assumption
      agreement, approved by the issuer of the title insurer, to the extent required
      by the policy, and which assumption agreement is part of the Mortgage Loan
      File
      delivered to the Custodian or to such other Person as the Purchaser shall
      designate in writing and the terms of which are reflected in the related
      Mortgage Loan Schedule;

     

    (e)  No
      Defenses. The Mortgage Loan is not subject to any right of rescission, set-off,
      counterclaim or defense, including without limitation the defense of usury,
      nor
      will the operation of any of the terms of the Mortgage Note or the Mortgage,
      or
      the exercise of any right thereunder, render either the Mortgage Note or the
      Mortgage unenforceable, in whole or in part and no such right of rescission,
      set-off, counterclaim or defense has been asserted with respect thereto, and
      no
      Mortgagor was a debtor in any state or Federal bankruptcy or insolvency
      proceeding at the time the Mortgage Loan was originated;

     

    (f)  Hazard
      Insurance. Pursuant to the terms of the Mortgage, all buildings or other
      improvements upon the Mortgaged Property are insured by a generally acceptable
      insurer against loss by fire, hazards of extended coverage and such other
      hazards as are customarily insured against in the jurisdiction where the related
      Mortgaged Property is located and acceptable to the Rating Agencies, as well
      as
      all additional requirements set forth in Section 2.10 of the Servicing
      Agreement. If required by the National Flood Insurance Act of 1968, as amended,
      each Mortgage Loan is covered by a flood insurance policy meeting the
      requirements of the current guidelines of the Federal Insurance Administration
      as in effect, as well as all additional requirements set forth in Section 2.10
      of the Servicing Agreement. All individual insurance policies contain a standard
      mortgagee clause naming the Seller and its successors and assigns as mortgagee,
      and all premiums thereon have been paid. The Mortgage obligates the Mortgagor
      thereunder to maintain the hazard insurance policy at the Mortgagor’s cost and
      expense, and on the Mortgagor’s failure to do so, authorizes the holder of the
      Mortgage to obtain and maintain such insurance at such Mortgagor’s cost and
      expense, and to seek reimbursement therefor from the Mortgagor. Where required
      by state law or regulation, the Mortgagor has been given an opportunity to
      choose the carrier of the required hazard insurance, provided the policy is
      not
      a “master” or “blanket” hazard insurance policy covering a condominium, or any
      hazard insurance policy covering the common facilities of a planned unit
      development. The hazard insurance policy is the valid and binding obligation
      of
      the insurer, is in full force and effect, and will be in full force and effect
      and inure to the benefit of the Purchaser upon the consummation of the
      transactions contemplated by this Agreement. The Seller has not engaged in,
      and
      has no knowledge of the Mortgagor’s having engaged in, any act or omission which
      would impair the coverage of any such policy, the benefits of the endorsement
      provided for herein, or the validity and binding effect of either including,
      without limitation, no unlawful fee, commission, kickback or other unlawful
      compensation or value of any kind has been or will be received, retained or
      realized by any attorney, firm or other person or entity, and no such unlawful
      items have been received, retained or realized by the Seller;

     

    (g)  Compliance
      with Applicable Laws. Any and all requirements of any federal, state or local
      law including, without limitation, usury, truth-in-lending, real estate
      settlement procedures, consumer credit protection, equal credit opportunity,
      disclosure and all predatory, abusive and fair lending laws applicable to the
      Mortgage Loan, including, without limitation, any provisions relating to the
      Illinois Interest Act and prepayment penalties, have been complied with, the
      consummation of the transactions contemplated hereby will not involve the
      violation of any such laws or regulations, and the Seller shall maintain in
      its
      possession, available for the Purchaser’s inspection, and shall deliver to the
      Purchaser upon demand, evidence of compliance with all such requirements. This
      representation and warranty is a Deemed Material and Adverse
      Representation;

     

    (h)  No
      Satisfaction of Mortgage. The Mortgage has not been satisfied, canceled,
      subordinated or rescinded, in whole or in part, and the Mortgaged Property
      has
      not been released from the lien of the Mortgage, in whole or in part, nor has
      any instrument been executed that would effect any such release, cancellation,
      subordination or rescission. The Seller has not waived the performance by the
      Mortgagor of any action, if the Mortgagor’s failure to perform such action would
      cause the Mortgage Loan to be in default, nor has the Seller waived any default
      resulting from any action or inaction by the Mortgagor;

     

    (i)  Location
      and Type of Mortgaged Property. The Mortgaged Property is located in the state
      identified in the Mortgage Loan Schedule and consists of real property with
      a
      detached single family residence erected thereon, or a two- to four-family
      dwelling, or an individual condominium unit in a low-rise condominium project,
      or an individual unit in a planned unit development or a de minimis planned
      unit
      development which is in each case four stories or less, provided, however,
      that
      any mobile home (double wide only) shall conform with the applicable Fannie
      Mae
      and Freddie Mac requirements regarding such dwellings and that no Mortgage
      Loan
      is secured by a single parcel of real property with a cooperative housing
      corporation, a log home, a Manufactured Home or, except as described in Exhibit
      B to the related Assignment and Conveyance Agreement, a mobile home erected
      thereon or by a mixed-use property, a property in excess of 10 acres, or other
      unique property types. As of the date of origination, no portion of the
      Mortgaged Property was used for commercial purposes, and since the date of
      origination, no portion of the Mortgaged Property has been used for commercial
      purposes; provided, that Mortgaged Properties which contain a home office shall
      not be considered as being used for commercial purposes as long as the Mortgaged
      Property has not been altered for commercial purposes and is not storing any
      chemicals or raw materials other than those commonly used for homeowner repair,
      maintenance and/or household purposes. This representation and warranty is
      a
      Deemed Material and Adverse Representation; 

     

    (j)  Valid
      First or Second Lien. The Mortgage is a valid, subsisting, enforceable and
      perfected, first lien (with respect to a First Lien Loan) or a second lien
      (with
      respect to a Second Lien Loan) on the Mortgaged Property, including all
      buildings and improvements on the Mortgaged Property and all installations
      and
      mechanical, electrical, plumbing, heating and air conditioning systems located
      in or annexed to such buildings, and all additions, alterations and replacements
      made at any time with respect to the foregoing. The lien of the Mortgage is
      subject only to:

     

    (i)  with
      respect to a Second Lien Loan only, the lien of the first mortgage on the
      Mortgaged Property; 

     

    (ii)  the
      lien
      of current real property taxes and assessments not yet due and
      payable;

     

    (iii)  covenants,
      conditions and restrictions, rights of way, easements and other matters of
      the
      public record as of the date of recording acceptable to prudent mortgage lending
      institutions generally and specifically referred to in the lender’s title
      insurance policy delivered to the originator of the Mortgage Loan and (A)
      specifically referred to or otherwise considered in the appraisal made for
      the
      originator of the Mortgage Loan or (B) which do not adversely affect the
      Appraised Value of the Mortgaged Property set forth in such appraisal;
      and

     

    (iv)  other
      matters to which like properties are commonly subject which do not materially
      interfere with the benefits of the security intended to be provided by the
      Mortgage or the use, enjoyment, value or marketability of the related Mortgaged
      Property.

     

    Any
      security agreement, chattel mortgage or equivalent document related to and
      delivered in connection with the Mortgage Loan establishes and creates a valid,
      subsisting, enforceable and perfected first lien (with respect to a First Lien
      Loan) or second lien (with respect to a Second Lien Loan) and first priority
      (with respect to a First Lien Loan) or second priority (with respect to a Second
      Lien Loan) security interest on the property described therein and the Seller
      has full right to sell and assign the same to the Purchaser;

    

    (k)  Validity
      of Mortgage Documents. The Mortgage Note and the Mortgage and any other
      agreement executed and delivered by a Mortgagor in connection with a Mortgage
      Loan are genuine, and each is the legal, valid and binding obligation of the
      maker thereof enforceable in accordance with its terms (including, without
      limitation, any provisions therein relating to prepayment penalties). All
      parties to the Mortgage Note, the Mortgage and any other such related agreement
      had legal capacity to enter into the Mortgage Loan and to execute and deliver
      the Mortgage Note, the Mortgage and any such agreement, and the Mortgage Note,
      the Mortgage and any other such related agreement have been duly and properly
      executed by other such related parties. No fraud, error, omission,
      misrepresentation, negligence or similar occurrence with respect to a Mortgage
      Loan has taken place on the part of any Person, including without limitation,
      the Mortgagor, any appraiser, any builder or developer, or any other party
      involved in the origination of the Mortgage Loan. The Seller has reviewed all
      of
      the documents constituting the Servicing File and has made such inquiries as
      it
      deems necessary to make and confirm the accuracy of the representations set
      forth herein;

     

    (l)  Full
      Disbursement of Proceeds. The Mortgage Loan has been closed and the proceeds
      of
      the Mortgage Loan have been fully disbursed and there is no requirement for
      future advances thereunder, and any and all requirements as to completion of
      any
      on-site or off site improvement and as to disbursements of any escrow funds
      therefor have been complied with. All costs, fees and expenses incurred in
      making or closing the Mortgage Loan and the recording of the Mortgage were paid,
      and the Mortgagor is not entitled to any refund of any amounts paid or due
      under
      the Mortgage Note or Mortgage;

     

    (m)  Ownership.
      The Seller is the sole owner of record and holder of the Mortgage Loan and
      the
      indebtedness evidenced by each Mortgage Note and upon the sale of the Mortgage
      Loans to the Purchaser, the Seller will retain the Mortgage Files or any part
      thereof with respect thereto not delivered to the Custodian, the Purchaser
      or
      the Purchaser’s designee, in trust only for the purpose of servicing and
      supervising the servicing of each Mortgage Loan. The Mortgage Loan is not
      assigned or pledged, and the Seller has good, indefeasible and marketable title
      thereto, and has full right to transfer and sell the Mortgage Loan to the
      Purchaser free and clear of any encumbrance, equity, participation interest,
      lien, pledge, charge, claim or security interest, and has full right and
      authority subject to no interest or participation of, or agreement with, any
      other party, to sell and assign each Mortgage Loan pursuant to this Agreement
      and following the sale of each Mortgage Loan, the Purchaser will own such
      Mortgage Loan free and clear of any encumbrance, equity, participation interest,
      lien, pledge, charge, claim or security interest. The Seller intends to
      relinquish all rights to possess, control and monitor the Mortgage Loan. After
      the related Closing Date, the Seller will have no right to modify or alter
      the
      terms of the sale of the Mortgage Loan and the Seller will have no obligation
      or
      right to repurchase the Mortgage Loan or substitute another Mortgage Loan,
      except as provided in this Agreement;

     

    (n)  Doing
      Business. All parties which have had any interest in the Mortgage Loan, whether
      as mortgagee, assignee, pledgee or otherwise, are (or, during the period in
      which they held and disposed of such interest, were) (1) in compliance with
      any
      and all applicable licensing requirements of the laws of the state wherein
      the
      Mortgaged Property is located, and (2) either (i) organized under the laws
      of
      such state, or (ii) qualified to do business in such state, or (iii) a federal
      savings and loan association, a savings bank or a national bank having a
      principal office in such state, or (3) not doing business in such
      state;

     

    (o)  LTV.
      No
      Mortgage Loan has an LTV greater than 100%;

     

    (p)  Title
      Insurance. The Mortgage Loan is covered by an ALTA lender’s title insurance
      policy, or with respect to any Mortgage Loan for which the related Mortgaged
      Property is located in California a CLTA lender’s title insurance policy, or
      other generally acceptable form of policy or insurance acceptable to Fannie
      Mae
      or Freddie Mac and each such title insurance policy is issued by a title insurer
      acceptable to Fannie Mae or Freddie Mac and qualified to do business in the
      jurisdiction where the Mortgaged Property is located, insuring the Seller,
      its
      successors and assigns, as to the first (with respect to a First Lien Loan)
      or
      second (with respect to a Second Lien Loan) priority lien of the Mortgage in
      the
      original principal amount of the Mortgage Loan (or to the extent a Mortgage
      Note
      provides for negative amortization, the maximum amount of negative amortization
      in accordance with the Mortgage), subject only to the exceptions contained
      in
      clauses (i), (ii) and (iii) of Paragraph (j) of this Schedule VII, and in the
      case of Adjustable Rate Mortgage Loans, against any loss by reason of the
      invalidity or unenforceability of the lien resulting from the provisions of
      the
      Mortgage providing for adjustment to the Mortgage Interest Rate and Monthly
      Payment. Where required by state law or regulation, the Mortgagor has been
      given
      the opportunity to choose the carrier of the required mortgage title insurance.
      Additionally, such lender’s title insurance policy affirmatively insures ingress
      and egress, and against encroachments by or upon the Mortgaged Property or
      any
      interest therein. The Seller, its successor and assigns, are the sole insureds
      of such lender’s title insurance policy, and such lender’s title insurance
      policy is valid and remains in full force and effect and will be in force and
      effect upon the consummation of the transactions contemplated by this Agreement.
      No claims have been made under such lender’s title insurance policy, and no
      prior holder of the related Mortgage, including the Seller, has done, by act
      or
      omission, anything which would impair the coverage of such lender’s title
      insurance policy, including without limitation, no unlawful fee, commission,
      kickback or other unlawful compensation or value of any kind has been or will
      be
      received, retained or realized by any attorney, firm or other person or entity,
      and no such unlawful items have been received, retained or realized by the
      Seller;

     

    (q)  No
      Defaults. Other than payments due but not yet 30 days or more delinquent, there
      is no default, breach, violation or event which would permit acceleration
      existing under the Mortgage or the Mortgage Note and no event which, with the
      passage of time or with notice and the expiration of any grace or cure period,
      would constitute a default, breach, violation or event which would permit
      acceleration, and neither the Seller nor any of its affiliates nor any of their
      respective predecessors, have waived any default, breach, violation or event
      which would permit acceleration;

     

    (r)  No
      Mechanics’ Liens. There are no mechanics’ or similar liens or claims which have
      been filed for work, labor or material (and no rights are outstanding that
      under
      the law could give rise to such liens) affecting the related Mortgaged Property
      which are or may be liens prior to, or equal or coordinate with, the lien of
      the
      related Mortgage;

     

    (s)  Location
      of Improvements; No Encroachments. All improvements which were considered in
      determining the Appraised Value of the Mortgaged Property lay wholly within
      the
      boundaries and building restriction lines of the Mortgaged Property, and no
      improvements on adjoining properties encroach upon the Mortgaged Property.
      No
      improvement located on or being part of the Mortgaged Property is in violation
      of any applicable zoning law or regulation;

     

    (t)  Origination;
      Payment Terms. Either (a) the Mortgage Loan was originated by a mortgagee
      approved by the Secretary of Housing and Urban Development pursuant to Sections
      203 and 211 of the National Housing Act, a savings and loan association, a
      savings bank, a commercial bank, credit union, insurance company or other
      similar institution which is supervised and examined by a federal or state
      authority, or (b) the following requirements have been met with respect to
      the
      Mortgage Loan: the Seller meets the requirements set forth in clause (a), and
      (i) such Mortgage Loan was underwritten in accordance with standards established
      by the Seller, using application forms and related credit documents approved
      by
      the Seller, (ii) the Seller approved each application and the related credit
      documents before a commitment by the correspondent was issued, and no such
      commitment was issued until the Seller agreed to fund such Mortgage Loan, (iii)
      the closing documents for such Mortgage Loan were prepared on forms approved
      by
      the Seller, and (iv) such Mortgage Loan was actually funded by the Seller and
      was purchased by the Seller at closing or soon thereafter. The documents,
      instruments and agreements submitted for loan underwriting were not falsified
      and contain no untrue statement of material fact or omit to state a material
      fact required to be stated therein or necessary to make the information and
      statements therein not misleading. Principal payments on the Mortgage Loan
      commenced no more than sixty days after funds were disbursed in connection
      with
      the Mortgage Loan. The Mortgage Interest Rate as well as, with respect to
      Adjustable Rate Mortgage loans, the Lifetime Rate Cap and the Periodic Cap,
      are
      as set forth on the related Mortgage Loan Schedule. The Mortgage Note is payable
      in equal monthly installments of principal and interest, which installments
      of
      interest, with respect to Adjustable Rate Mortgage Loans, are subject to change
      due to the adjustments to the Mortgage Interest Rate on each Interest Rate
      Adjustment Date, with interest calculated and payable in arrears, sufficient
      to
      amortize the Mortgage Loan fully by the stated maturity date, over an original
      term of not more than thirty years from commencement of amortization. Unless
      otherwise specified on the related Mortgage Loan Schedule, the Mortgage Loan
      is
      payable on the first day of each month. There are no Convertible Mortgage Loans
      which contain a provision allowing the Mortgagor to convert the Mortgage Note
      from an adjustable interest rate Mortgage Note to a fixed interest rate Mortgage
      Note;

     

    (u)  Customary
      Provisions. The Mortgage contains customary and enforceable provisions such
      as
      to render the rights and remedies of the holder thereof adequate for the
      realization against the Mortgaged Property of the benefits of the security
      provided thereby, including, (i) in the case of a Mortgage designated as a
      deed
      of trust, by trustee’s sale, and (ii) otherwise by judicial foreclosure. Upon
      default by a Mortgagor on a Mortgage Loan and foreclosure on, or trustee’s sale
      of, the Mortgaged Property pursuant to the proper procedures, the holder of
      the
      Mortgage Loan will be able to deliver good and merchantable title to the
      Mortgaged Property. There is no homestead or other exemption available to a
      Mortgagor which would interfere with the right to sell the Mortgaged Property
      at
      a trustee’s sale or the right to foreclose the Mortgage, subject to applicable
      federal and state laws and judicial precedent with respect to bankruptcy and
      right of redemption or similar law;

     

    (v)  Conformance
      with Agency and Underwriting Guidelines. The Mortgage Loan was underwritten
      in
      accordance with the Underwriting Guidelines. The Mortgage Note and Mortgage
      are
      on forms acceptable to Freddie Mac or Fannie Mae and neither the Seller nor
      the
      Originator has made any representations to a Mortgagor that are inconsistent
      with the mortgage instruments used;

     

    (w)  Occupancy
      of the Mortgaged Property. As of the related Closing Date the Mortgaged Property
      is lawfully occupied under applicable law. All inspections, licenses and
      certificates required to be made or issued with respect to all occupied portions
      of the Mortgaged Property and, with respect to the use and occupancy of the
      same, including but not limited to certificates of occupancy and fire
      underwriting certificates, have been made or obtained from the appropriate
      authorities;

     

    (x)  No
      Additional Collateral. The Mortgage Note is not and has not been secured by
      any
      collateral except the lien of the corresponding Mortgage and the security
      interest of any applicable security agreement or chattel mortgage referred
      to in
      Paragraph (j) above;

     

    (y)  Deeds
      of
      Trust. In the event the Mortgage constitutes a deed of trust, a trustee,
      authorized and duly qualified under applicable law to serve as such, has been
      properly designated and currently so serves and is named in the Mortgage, and
      no
      fees or expenses are or will become payable by the Purchaser to the trustee
      under the deed of trust, except in connection with a trustee’s sale after
      default by the Mortgagor;

     

    (z)  Acceptable
      Investment. There are no circumstances or conditions with respect to the
      Mortgage, the Mortgaged Property, the Mortgagor, the Mortgage File or the
      Mortgagor’s credit standing that can reasonably be expected to cause private
      institutional investors who invest in mortgage loans similar to the Mortgage
      Loan to regard the Mortgage Loan as an unacceptable investment, cause the
      Mortgage Loan to become delinquent, or adversely affect the value or
      marketability of the Mortgage Loan, or cause the Mortgage Loans to prepay during
      any period materially faster or slower than the mortgage loans originated by
      the
      Seller generally;

     

    (aa)  Delivery
      of Mortgage Documents. The Mortgage Note, the Mortgage, the Assignment of
      Mortgage and any other documents required to be delivered under the Custodial
      Agreement for each Mortgage Loan have been delivered to the Custodian. The
      Seller is in possession of a complete, true and accurate Mortgage File in
      compliance with Exhibit A hereto, except for such documents the originals of
      which have been delivered to the Custodian;

     

    (bb)  Condominiums/Planned
      Unit Developments. If the Mortgaged Property is a condominium unit or a planned
      unit development (other than a de minimis planned unit development) such
      condominium or planned unit development project such Mortgage Loan was
      originated in accordance with, and the Mortgaged Property meets the guidelines
      set forth in the Originator’s Underwriting Guidelines;

     

    (cc)  Transfer
      of Mortgage Loans. The Assignment of Mortgage with respect to each Mortgage
      Loan
      is in recordable form and is acceptable for recording under the laws of the
      jurisdiction in which the Mortgaged Property is located. The transfer,
      assignment and conveyance of the Mortgage Notes and the Mortgages by the Seller
      are not subject to the bulk transfer or similar statutory provisions in effect
      in any applicable jurisdiction;

     

    (dd)  Due-On-Sale.
      With respect to each Fixed Rate Mortgage Loan, the Mortgage contains an
      enforceable provision for the acceleration of the payment of the unpaid
      principal balance of the Mortgage Loan in the event that the Mortgaged Property
      is sold or transferred without the prior written consent of the mortgagee
      thereunder, and such provision is enforceable;

     

    (ee)  Assumability.
      With respect to each Adjustable Rate Mortgage Loan, the Mortgage Loan Documents
      provide that after the related first Interest Rate Adjustment Date, a related
      Mortgage Loan may only be assumed if the party assuming such Mortgage Loan
      meets
      certain credit requirements stated in the Mortgage Loan Documents;

     

    (ff)  No
      Buydown Provisions; No Graduated Payments or Contingent Interests. The Mortgage
      Loan does not contain provisions pursuant to which Monthly Payments are paid
      or
      partially paid with funds deposited in any separate account established by
      the
      Seller, the Mortgagor, or anyone on behalf of the Mortgagor, or paid by any
      source other than the Mortgagor nor does it contain any other similar provisions
      which may constitute a “buydown” provision. The Mortgage Loan is not a graduated
      payment mortgage loan and the Mortgage Loan does not have a shared appreciation
      or other contingent interest feature;

     

    (gg)  Consolidation
      of Future Advances. Any future advances made to the Mortgagor prior to the
      Cut-off Date have been consolidated with the outstanding principal amount
      secured by the Mortgage, and the secured principal amount, as consolidated,
      bears a single interest rate and single repayment term. The lien of the Mortgage
      securing the consolidated principal amount is expressly insured as having first
      (with respect to a First Lien Loan) or a second (with respect to a Second Lien
      Loan) lien priority by a title insurance policy, an endorsement to the policy
      insuring the mortgagee’s consolidated interest or by other title evidence
      acceptable to Fannie Mae and Freddie Mac. The consolidated principal amount
      does
      not exceed the original principal amount of the Mortgage Loan;

     

    (hh)  Mortgaged
      Property Undamaged; No Condemnation Proceedings. There is no proceeding pending
      or threatened for the total or partial condemnation of the Mortgaged Property.
      The Mortgaged Property is undamaged by waste, fire, earthquake or earth
      movement, windstorm, flood, tornado or other casualty so as to affect adversely
      the value of the Mortgaged Property as security for the Mortgage Loan or the
      use
      for which the premises were intended and each Mortgaged Property is in good
      repair. There have not been any condemnation proceedings with respect to the
      Mortgaged Property and the Seller has no knowledge of any such proceedings
      in
      the future;

     

    (ii)  Collection
      Practices; Escrow Deposits; Interest Rate Adjustments. The origination,
      servicing and collection practices used by the Seller and the Originator with
      respect to the Mortgage Loan have been in all respects in compliance with
      Accepted Servicing Practices, applicable laws and regulations, and have been
      in
      all respects legal and proper. With respect to escrow deposits and Escrow
      Payments, all such payments are in the possession of, or under the control
      of,
      the Seller or the Originator and there exist no deficiencies in connection
      therewith for which customary arrangements for repayment thereof have not been
      made. All Escrow Payments have been collected in full compliance with state
      and
      federal law and the provisions of the related Mortgage Note and Mortgage. An
      escrow of funds is not prohibited by applicable law and has been established
      in
      an amount sufficient to pay for every item that remains unpaid and has been
      assessed but is not yet due and payable. No escrow deposits or Escrow Payments
      or other charges or payments due the Seller have been capitalized under the
      Mortgage or the Mortgage Note. All Mortgage Interest Rate adjustments have
      been
      made in strict compliance with state and federal law and the terms of the
      related Mortgage and Mortgage Note on the related Interest Rate Adjustment
      Date.
      If, pursuant to the terms of the Mortgage Note, another index was selected
      for
      determining the Mortgage Interest Rate, the same index was used with respect
      to
      each Mortgage Note which required a new index to be selected, and such selection
      did not conflict with the terms of the related Mortgage Note. The Seller or
      the
      Originator executed and delivered any and all notices required under applicable
      law and the terms of the related Mortgage Note and Mortgage regarding the
      Mortgage Interest Rate and the Monthly Payment adjustments. Any interest
      required to be paid pursuant to state, federal and local law has been properly
      paid and credited;

     

    (jj)  Conversion
      to Fixed Interest Rate. With respect to Adjustable Rate Mortgage Loans, the
      Mortgage Loan is not a Convertible Mortgage Loan;

     

    (kk)  Other
      Insurance Policies. No action, inaction or event has occurred and no state
      of
      facts exists or has existed that has resulted or will result in the exclusion
      from, denial of, or defense to coverage under any applicable, special hazard
      insurance policy, or bankruptcy bond, irrespective of the cause of such failure
      of coverage. In connection with the placement of any such insurance, no
      commission, fee, or other compensation has been or will be received by the
      Seller or by any officer, director, or employee of the Seller or any designee
      of
      the Seller or any corporation in which the Seller or any officer, director,
      or
      employee had a financial interest at the time of placement of such
      insurance;

     

    (ll)  No
      Violation of Environmental Laws. There is no pending action or proceeding
      directly involving the Mortgaged Property in which compliance with any
      environmental law, rule or regulation is an issue; there is no violation of
      any
      environmental law, rule or regulation with respect to the Mortgage Property;
      and
      nothing further remains to be done to satisfy in full all requirements of each
      such law, rule or regulation constituting a prerequisite to use and enjoyment
      of
      said property;

     

    (mm)  Servicemembers
      Civil Relief Act. The Mortgagor has not notified the Seller, and the Seller
      has
      no knowledge of any relief requested or allowed to the Mortgagor under the
      Servicemembers Relief Act or any similar state statute;

     

    (nn)  Appraisal.
      The Mortgage File contains an appraisal of the related Mortgaged Property signed
      prior to the approval of the Mortgage Loan application by a Qualified Appraiser,
      duly appointed by the Seller or the Originator, who had no interest, direct
      or
      indirect in the Mortgaged Property or in any loan made on the security thereof,
      and whose compensation is not affected by the approval or disapproval of the
      Mortgage Loan, and the appraisal and appraiser both satisfy the requirements
      of
      Fannie Mae or Freddie Mac and Title XI of the Financial Institutions Reform,
      Recovery, and Enforcement Act of 1989 and the regulations promulgated
      thereunder, all as in effect on the date the Mortgage Loan was
      originated;

     

    (oo)  Disclosure
      Materials. The Mortgagor has executed a statement to the effect that the
      Mortgagor has received all disclosure materials required by, and the Originator
      has complied with, all applicable law with respect to the making of the Mortgage
      Loans. The Seller shall cause the Originator to maintain such statement in
      the
      Mortgage File;

     

    (pp)  Construction
      or Rehabilitation of Mortgaged Property. No Mortgage Loan was made in connection
      with the construction or rehabilitation of a Mortgaged Property or facilitating
      the trade-in or exchange of a Mortgaged Property;

     

    (qq)  Value
      of
      Mortgaged Property. The Seller has no knowledge of any circumstances existing
      that could reasonably be expected to adversely affect the value or the
      marketability of any Mortgaged Property or Mortgage Loan or to cause the
      Mortgage Loans to prepay during any period materially faster or slower than
      similar mortgage loans held by the Seller generally secured by properties in
      the
      same geographic area as the related Mortgaged Property;

     

    (rr)  No
      Defense to Insurance Coverage. No action has been taken or failed to be taken,
      no event has occurred and no state of facts exists or has existed on or prior
      to
      the related Closing Date (whether or not known to the Seller on or prior to
      such
      date) which has resulted or will result in an exclusion from, denial of, or
      defense to coverage under any primary mortgage insurance (including, without
      limitation, any exclusions, denials or defenses which would limit or reduce
      the
      availability of the timely payment of the full amount of the loss otherwise
      due
      thereunder to the insured) whether arising out of actions, representations,
      errors, omissions, negligence, or fraud of the Seller, the related Mortgagor
      or
      any party involved in the application for such coverage, including the
      appraisal, plans and specifications and other exhibits or documents submitted
      therewith to the insurer under such insurance policy, or for any other reason
      under such coverage, but not including the failure of such insurer to pay by
      reason of such insurer’s breach of such insurance policy or such insurer’s
      financial inability to pay;

     

    (ss)  Escrow
      Analysis. With respect to each Mortgage, the Seller or the Originator has within
      the last twelve months (unless such Mortgage was originated within such twelve
      month period) analyzed the required Escrow Payments for each Mortgage and
      adjusted the amount of such payments so that, assuming all required payments
      are
      timely made, any deficiency will be eliminated on or before the first
      anniversary of such analysis, or any overage will be refunded to the Mortgagor,
      in accordance with RESPA and any other applicable law;

     

    (tt)  Prior
      Servicing. Each Mortgage Loan has been serviced in all material respects in
      strict compliance with Accepted Servicing Practices;

     

    (uu)  No
      Default Under First Lien. With respect to each Second Lien Loan, the related
      First Lien Loan related thereto is in full force and effect, and there is no
      default, breach, violation or event which would permit acceleration existing
      under such first Mortgage or Mortgage Note, and no event which, with the passage
      of time or with notice and the expiration of any grace or cure period, would
      constitute a default, breach, violation or event which would permit acceleration
      thereunder. This representation and warranty is a Deemed Material and Adverse
      Representation;

     

    (vv)  [Reserved];

     

    (ww)  No
      Failure to Cure Default. The Seller has not received a written notice of default
      of any senior mortgage loan related to the Mortgaged Property which has not
      been
      cured;

     

    (xx)  Credit
      Information. As to each consumer report (as defined in the Fair Credit Reporting
      Act, Public Law 91-508) or other credit information furnished by the Seller
      to
      the Purchaser, that Seller has full right and authority and is not precluded
      by
      law or contract from furnishing such information to the Purchaser and the
      Purchaser is not precluded from furnishing the same to any subsequent or
      prospective purchaser of such Mortgage. The Seller shall hold the Purchaser
      harmless from any and all damages, losses, costs and expenses (including
      attorney’s fees) arising from disclosure of credit information in connection
      with the Purchaser’s secondary marketing operations and the purchase and sale of
      mortgages or Servicing Rights thereto;

     

    (yy)  Leaseholds.
      If the Mortgage Loan is secured by a long-term residential lease, (1) the lessor
      under the lease holds a fee simple interest in the land; (2) the terms of such
      lease expressly permit the mortgaging of the leasehold estate, the assignment
      of
      the lease without the lessor’s consent and the acquisition by the holder of the
      Mortgage of the rights of the lessee upon foreclosure or assignment in lieu
      of
      foreclosure or provide the holder of the Mortgage with substantially similar
      protections; (3) the terms of such lease do not (a) allow the termination
      thereof upon the lessee’s default without the holder of the Mortgage being
      entitled to receive written notice of, and opportunity to cure, such default,
      (b) allow the termination of the lease in the event of damage or destruction
      as
      long as the Mortgage is in existence, (c) prohibit the holder of the Mortgage
      from being insured (or receiving proceeds of insurance) under the hazard
      insurance policy or policies relating to the Mortgaged Property or (d) permit
      any increase in rent other than pre-established increases set forth in the
      lease; (4) the original term of such lease is not less than 15 years; (5) the
      term of such lease does not terminate earlier than five years after the maturity
      date of the Mortgage Note; and (6) the Mortgaged Property is located in a
      jurisdiction in which the use of leasehold estates in transferring ownership
      in
      residential properties is a widely accepted practice;

     

    (zz)  Prepayment
      Penalty. Each Mortgage Loan that is subject to a prepayment penalty as provided
      in the related Mortgage Note is identified on the related Mortgage Loan
      Schedule. With respect to each Mortgage Loan that has a prepayment penalty
      feature, each such prepayment penalty is enforceable and will be enforced by
      the
      Seller for the benefit of the Purchaser, and each prepayment penalty is
      permitted pursuant to federal, state and local law. Each such prepayment penalty
      is in an amount not more than the maximum amount permitted under applicable
      law
      and no such prepayment penalty may be imposed for a term in excess of five
      (5)
      years with respect to Mortgage Loans originated prior to October, 1, 2002.
      With
      respect to Mortgage Loans originated on or after October 1, 2002, the duration
      of the prepayment penalty period shall not exceed three (3) years from the
      date
      of the Mortgage Note unless the Mortgage Loan was modified to reduce the
      prepayment penalty period to no more than three (3) years from the date of
      the
      related Mortgage Note and the Mortgagor was notified in writing of such
      reduction in prepayment penalty period. This representation and warranty is
      a
      Deemed Material and Adverse Representation;

     

    (aaa)  Predatory
      Lending Regulations. No Mortgage Loan is a High Cost Loan or Covered Loan,
      as
      applicable, and no Mortgage Loan originated on or after October 1, 2002 through
      March 6, 2003 is governed by the Georgia Fair Lending Act. No Mortgage Loan
      is
      covered by the Home Ownership and Equity Protection Act of 1994 and no Mortgage
      Loan is in violation of any comparable state or local law. This representation
      and warranty is a Deemed Material and Adverse Representation;

     

    (bbb)  [Reserved];

     

    (ccc)  Qualified
      Mortgage. The Mortgage Loan is a “qualified mortgage,” within the meaning of
      Section 860G(a)(3) of the Code, if transferred to a REMIC on its startup day
      in
      exchange for the regular or residual interests in the REMIC;

     

    (ddd)  No
      Prior
      Offer. The Mortgage Loan has not previously been offered for sale to another
      entity that constitutes a broker dealer registered with the Commission under
      Section 15 of the Exchange Act;

     

    (eee)  Fair
      Credit Reporting Act. The Seller has, in its capacity as servicer for each
      Mortgage Loan, fully furnished, in accordance with the Fair Credit Reporting
      Act
      and its implementing regulations, accurate and complete information (e.g.,
      favorable and unfavorable) on its borrower credit files to Equifax, Experian
      and
      Trans Union Credit Information Company (three of the credit repositories),
      on a
      monthly basis. This representation and warranty is a Deemed Material and Adverse
      Representation; 

     

    (fff)  Fannie
      Mae Guides Anti-Predatory Lending Eligibility. Each Mortgage Loan is in
      compliance with the anti-predatory lending eligibility for purchase requirements
      of Fannie Mae Guides. This representation and warranty is a Deemed Material
      and
      Adverse Representation;

     

    (ggg)  Mortgagor
      Selection. The Mortgagor was not encouraged or required to select a Mortgage
      Loan product offered by the Originator which is a higher cost product designed
      for less creditworthy mortgagors, unless at the time of the Mortgage Loan’s
      origination, such Mortgagor did not qualify taking into such facts as, without
      limitation, the Mortgage Loan’s requirements and the Mortgagor’s credit history,
      income, assets and liabilities and debt to income ratios for a lower cost credit
      product then offered by the Originator or any Affiliate of the Originator.
      If,
      at the time of loan application, the Mortgagor may have qualified for a lower
      cost credit product then offered by any mortgage lending Affiliate of the
      Originator, the Originator referred the related Mortgagor’s application to such
      Affiliate for underwriting consideration. For a Mortgagor who seeks financing
      through a Mortgage Loan originator’s higher-priced subprime lending channel, the
      Mortgagor was directed towards or offered the Mortgage Loan originator’s
      standard mortgage line if the Mortgagor was able to qualify for one of the
      standard products. This representation and warranty is a Deemed Material and
      Adverse Representation;

     

    (hhh)  Underwriting
      Methodology. The methodology used in underwriting the extension of credit for
      each Mortgage Loan does not rely on the extent of the related Mortgagor’s equity
      in the collateral as the principal determining factor in approving such
      extension of credit. The methodology employed objective criteria that related
      such facts as, without limitation, the Mortgagor’s credit history, income,
      assets or liabilities, to the proposed mortgage payment and, based on such
      methodology, the Mortgage Loan’s originator made a reasonable determination that
      at the time of origination the Mortgagor had the ability to make timely payments
      on the Mortgage Loan. Such underwriting methodology confirmed that at the time
      of origination (application/approval) the related Mortgagor had a reasonable
      ability to make timely payments on the Mortgage Loan. This representation and
      warranty is a Deemed Material and Adverse Representation;

     

    (iii)  Mortgage
      Loans with Prepayment Premiums. With respect to any Mortgage Loan that contains
      a provision permitting imposition of a prepayment penalty upon a prepayment
      prior to maturity: (i) the Mortgage Loan provides some benefit to the Mortgagor,
      including but not limited to a rate or fee reduction, in exchange for accepting
      such prepayment penalty, (ii) the Mortgage Loan’s originator had a written
      policy of offering the Mortgagor, or requiring third-party brokers to offer
      the
      Mortgagor, the option of obtaining a mortgage loan that did not require payment
      of such a penalty, (iii) the prepayment penalty was adequately disclosed to
      the
      Mortgagor in the mortgage loan documents pursuant to applicable state, local
      and
      federal law, and (iv) notwithstanding any state, local or federal law to the
      contrary, the Originator, as servicer, shall not impose such prepayment penalty
      in any instance when the mortgage debt is accelerated or paid off in connection
      with the workout of a delinquent Mortgage Loan or as a result of the Mortgagor’s
      default in making the Mortgage Loan payments. This representation and warranty
      is a Deemed Material and Adverse Representation;

     

    (jjj)  Purchase
      of Insurance. No Mortgagor was required to purchase any single premium credit
      insurance policy (e.g., life, mortgage, disability, property, accident,
      unemployment or health insurance product) or debt cancellation agreement as
      a
      condition of obtaining the extension of credit. No Mortgagor obtained a prepaid
      single premium credit insurance policy (e.g., life, mortgage, disability,
      property, accident, unemployment, mortgage or health insurance) in connection
      with the origination of the Mortgage Loan. No proceeds from any Mortgage Loan
      were used to purchase single premium credit insurance policies as part of the
      origination of, or as a condition to closing, such Mortgage Loan. This
      representation and warranty is a Deemed Material and Adverse
      Representation;

     

    (kkk)  [Reserved];

     

    (lll)  Disclosure
      of Fees and Charges. All fees and charges (including finance charges), whether
      or not financed, assessed, collected or to be collected in connection with
      the
      origination and servicing of each Mortgage Loan, have been disclosed in writing
      to the Mortgagor in accordance with applicable state and federal law and
      regulation. This representation and warranty is a Deemed Material and Adverse
      Representation; 

     

    (mmm)  No
      Arbitration. No Mortgage Loan originated on or after July 1, 2004 requires
      the
      related Mortgagor to submit to arbitration to resolve any dispute arising out
      of
      or relating in any way to the Mortgage Loan transaction. This representation
      and
      warranty is a Deemed Material and Adverse Representation;

     

    (nnn)  Request
      for Notice; No Consent Required. With respect to any Second Lien Loan, if
      applicable to the Seller, where required or customary in the jurisdiction in
      which the Mortgaged Property is located, the original lender has filed for
      record a request for notice of any action by the related senior lienholder,
      and
      the Seller has notified the senior lienholder in writing of the existence of
      the
      Second Lien Loan and requested notification of any action to be taken against
      the Mortgagor by the senior lienholder. Either (a) no consent for the Second
      Lien Loan is required by the holder of the related first lien or (b) such
      consent has been obtained and is contained in the Mortgage File. This
      representation and warranty is a Deemed Material and Adverse
      Representation;

     

    (ooo)  No
      Negative Amortization of Related First Lien Loan. With respect to each Second
      Lien Loan, the related First Lien Loan does not permit negative amortization.
      This representation and warranty is a Deemed Material and Adverse
      Representation; and

     

    (ppp)  Principal
      Residence. With respect to each Second Lien Loan, the related Mortgaged Property
      was the Mortgagor’s principal residence or second home at the time of the
      origination of such Second Lien Loan, as set forth on the related Mortgage
      Loan
      Schedule. This representation and warranty is a Deemed Material and Adverse
      Representation.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      IV

     

    Morgan
      Stanley ABS Capital Inc.

    Mortgage
      Pass-Through Certificates,

    Series 2007-NC1

     

    Representations
      and Warranties as to the Responsible Party

    

    NC
      Capital Corporation hereby makes the representations and warranties set forth
      in
      this Schedule IV to the Depositor, the Servicer and the Trustee, as of the
      Closing Date:

    

    (a)  Due
      Organization and Authority. The Responsible Party is a corporation duly
      organized, validly existing and in good standing under the laws of the state
      of
      California and has all licenses necessary to carry on its business as now being
      conducted and is licensed, qualified and in good standing in each state wherein
      it owns or leases any material properties or where a Mortgaged Property is
      located, if the laws of such state require licensing or qualification in order
      to conduct business of the type conducted by the Responsible Party, and in
      any
      event the Responsible Party is in compliance with the laws of any such state
      to
      the extent necessary; the Responsible Party has the full corporate power,
      authority and legal right to execute and deliver this Agreement and to perform
      its obligations hereunder; the execution, delivery and performance of this
      Agreement by the Responsible Party and the consummation of the transactions
      contemplated hereby have been duly and validly authorized; this Agreement and
      all agreements contemplated hereby have been duly executed and delivered and
      constitute the valid, legal, binding and enforceable obligations of the
      Responsible Party, regardless of whether such enforcement is sought in a
      proceeding in equity or at law; and all requisite corporate action has been
      taken by the Responsible Party to make this Agreement and all agreements
      contemplated hereby valid and binding upon the Responsible Party in accordance
      with their terms;

     

    (b)  No
      Conflicts. Neither the execution and delivery of this Agreement, the
      consummation of the transactions contemplated hereby, nor the fulfillment of
      or
      compliance with the terms and conditions of this Agreement, will conflict with
      or result in a breach of any of the terms, conditions or provisions of the
      Responsible Party’s charter or by-laws or any legal restriction or any agreement
      or instrument to which the Responsible Party is now a party or by which it
      is
      bound, or constitute a default or result in an acceleration under any of the
      foregoing, or result in the violation of any law, rule, regulation, order,
      judgment or decree to which the Responsible Party or its property is subject,
      or
      result in the creation or imposition of any lien, charge or encumbrance that
      would have an adverse effect upon any of its properties pursuant to the terms
      of
      any mortgage, contract, deed of trust or other instrument;

     

    (c)  No
      Litigation Pending. There is no action, suit, proceeding or investigation
      pending or threatened against the Responsible Party, before any court,
      administrative agency or other tribunal asserting the invalidity of this
      Agreement, seeking to prevent the consummation of any of the transactions
      contemplated by this Agreement or which, either in any one instance or in the
      aggregate, may result in any material adverse change in the business,
      operations, financial condition, properties or assets of the Responsible Party,
      or in any material impairment of the right or ability of the Responsible Party
      to carry on its business substantially as now conducted, or in any material
      liability on the part of the Responsible Party, or which would draw into
      question the validity of this Agreement or of any action taken or to be taken
      in
      connection with the obligations of the Responsible Party contemplated herein,
      or
      which would be likely to impair materially the ability of the Responsible Party
      to perform under the terms of this Agreement; and

     

    (d)  No
      Consent Required. No consent, approval, authorization or order of, or
      registration or filing with, or notice to any court or governmental agency
      or
      body including the U.S. Department of Housing and Urban Development (“HUD”), the
      Federal Housing Administration (“FHA”) or the U.S. Department of Veterans
      Affairs (“VA”) is required for the execution, delivery and performance by the
      Responsible Party of or compliance by the Responsible Party with this Agreement
      or the consummation of the transactions contemplated by this Agreement, or
      if
      required, such approval has been obtained prior to the Closing
      Date.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      V

     

    Morgan
      Stanley ABS Capital I Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2007-NC1

     

     

    Representations
      and Warranties of Morgan Stanley ABS Capital I Inc. as to the Mortgage
      Loans

     

    The
      Depositor hereby makes with respect the Mortgage Loans the following
      representations and warranties to the Trustee as of the Closing Date.
      Capitalized terms used but not otherwise defined shall have the meaning ascribed
      thereto in the Agreement to which this Schedule is attached.

     

    (a)  Immediately
      prior to the transfer of the Mortgage Loans by the Depositor to the Trust on
      the
      Closing Date, the Depositor had good title to the Mortgage Loans, free and
      clear
      of any liens, charges, claims or encumbrances whatsoever.

     

    (b)  The
      original principal balance of each Group I Mortgage Loan was within Freddie
      Mac’s and Fannie Mae’s dollar amount limits for conforming one- to four-family
      mortgage loans and the original principal balance for each Group I Mortgage
      Loan
      which is a Second Lien Mortgage Loan was within one-half of Freddie Mac’s and
      Fannie Mae’s dollar amount limits for one-unit conforming one-to four-family
      mortgage loans for first lien mortgage loans, without regard to the number
      of
      units in the related Mortgaged Property. 

     

    (c)  With
      respect to each Group I Mortgage Loan which is a Second Lien Mortgage Loan
      (A)
      such lien is on a one-to four-family residence that is the principal residence
      of the related Mortgagor, and (B) the original principal balance of the related
      first lien mortgage loan plus the original principal balance of any subordinate
      lien mortgage loans relating to the same Mortgaged Property was within Freddie
      Mac’s and Fannie Mae’s dollar amount limits for first lien mortgage loans for
      that property type. 

     

    (d)  The
      Depositor (i) currently operates or actively participates in an on-going and
      active program or business (A) to originate mortgages, and/or (B) to make
      periodic purchases of mortgage loans from originators or other sellers, and/or
      (C) to issue and/or purchase securities or bonds supported by the mortgages,
      with a portion of the proceeds generated by such program or business being
      used
      to purchase or originate mortgages made to borrowers who are (x) low-income
      families (families with incomes of 80% or less of area median income) living
      in
      low-income areas (a census tract or block numbering area in which the median
      income does not exceed 80 percent of the area median income) and/or (y) very
      low-income families (families with incomes of 60% or less of area median
      income); and (ii) agrees that Freddie Mac for a period of two (2) years
      following the date of the Agreement may contact the Depositor to confirm that
      it
      continues to operate or actively participate in the mortgage program or business
      and to obtain other nonproprietary information about the Depositor’s activities
      that may assist Freddie Mac in completing its regulatory reporting requirements.
      The Depositor will make reasonable efforts to provide such information to
      Freddie Mac.

     

    (e)  No
      Mortgagor was charged “points and fees” (whether or not financed) in an amount
      greater than (i) $1,000, or (ii) 5% of the principal amount of such Group I
      Mortgage Loan, whichever is greater. For purposes of this representation, such
      5% limitation is calculated in accordance with Fannie Mae’s anti-predatory
      lending requirements as set forth in the Fannie Mae Guides and “points and fees”
(x) include origination, underwriting, broker and finder fees and charges that
      the mortgagee imposed as a condition of making the Group I Mortgage Loan,
      whether they are paid to the mortgagee or a third party, and (y) exclude bona
      fide discount points, fees paid for actual services rendered in connection
      with
      the origination of the Group I Mortgage Loan (such as attorneys’ fees, notaries
      fees and fees paid for property appraisals, credit reports, surveys, title
      examinations and extracts, flood and tax certifications, and home inspections),
      the cost of mortgage insurance or credit-risk price adjustments, the costs
      of
      title, hazard, and flood insurance policies, state and local transfer taxes
      or
      fees, escrow deposits for the future payment of taxes and insurance premiums,
      and other miscellaneous fees and charges that, in total, do not exceed 0.25%
      of
      the principal amount of such Group I Mortgage Loan. 

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
      VI

     

    Morgan
      Stanley ABS Capital I Inc.

    Mortgage
      Pass Through Certificates,

    Series
      2007-NC1

     

     

    Representations
      and Warranties of Saxon, as Servicer

     

    Saxon
      hereby makes the representations and warranties set forth in this
      Schedule VI to the Depositor and the Trustee as of the Closing Date.
      Capitalized terms used but not otherwise defined in the Agreement to which
      this
      Schedule VI is attached shall have the meaning ascribed thereto in the
      Agreement to which this Schedule VI is attached.

     

    (a)  Saxon
      is
      duly organized as a corporation and is validly existing and in good standing
      under the laws of the state of Texas, and is licensed and qualified to transact
      any and all business contemplated by this Agreement to be conducted by Saxon
      in
      any state in which a Mortgaged Property securing a Mortgage Loan is located
      or
      is otherwise not required under applicable law to effect such qualification
      and,
      in any event, is in compliance with the doing business laws of any such State,
      to the extent necessary to ensure its ability to enforce each Mortgage Loan
      and
      to service the Mortgage Loans in accordance with the terms of this
      Agreement;

     

    (b)  Saxon
      has
      the full power and authority to service each Mortgage Loan, and to execute,
      deliver and perform, and to enter into and consummate the transactions
      contemplated by this Agreement and has duly authorized by all necessary action
      on the part of Saxon the execution, delivery and performance of this Agreement;
      and this Agreement, assuming the due authorization, execution and delivery
      thereof by the other parties to this Agreement, constitutes a legal, valid
      and
      binding obligation of Saxon, enforceable against Saxon in accordance with its
      terms; except to the extent that (a) the enforceability thereof may be
      limited by bankruptcy, insolvency, moratorium, receivership and other similar
      laws relating to creditors’ rights generally and (b) the remedy of specific
      performance and injunctive and other forms of equitable relief may be subject
      to
      the equitable defenses and to the discretion of the court before which any
      proceeding therefor may be brought;

     

    (c)  The
      execution and delivery of this Agreement by Saxon, the servicing of the Mortgage
      Loans required to be serviced by Saxon hereunder, the consummation by Saxon
      of
      any other of the transactions herein contemplated, and the fulfillment of or
      compliance with the terms hereof are in the ordinary course of business of
      Saxon
      and will not (A) result in a breach of any term or provision of the
      organizational documents of Saxon or (B) conflict with, result in a breach,
      violation or acceleration of, or result in a default under, the terms of any
      other material agreement or instrument to which Saxon is a party or by which
      it
      may be bound, or any law, statute, rule, order, regulation, judgment or decree
      applicable to Saxon or its property of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over Saxon;
      and
      Saxon is not a party to, bound by, or in breach or violation of any indenture
      or
      other agreement or instrument, or subject to or in violation of any law,
      statute, rule, order, regulation, judgment or decree of any court, regulatory
      body, administrative agency or governmental body having jurisdiction over it,
      which (w) materially and adversely affects or, to Saxon’s knowledge, would
      in the future materially and adversely affect, the ability of Saxon to perform
      its obligations under this Pooling and Servicing Agreement, (x) materially
      and adversely affects or, to Saxon’s knowledge, would in the future materially
      and adversely affect, the business, operations, financial condition, properties
      or assets of Saxon taken as a whole, (y) impair the ability of the Trust to
      realize on the Mortgage Loans, or (z) impair the value of the Mortgage
      Loans;

     

    (d)  Saxon
      has
      the facilities, procedures, and experienced personnel necessary for the sound
      servicing of mortgage loans of the same type as the Mortgage Loans;

     

    (e)  Saxon
      does not believe, nor does it have any reason or cause to believe, that it
      cannot perform each and every covenant contained in this Agreement;

     

    (f)  No
      action, suit, proceeding or investigation is pending or threatened against
      Saxon, before any court, administrative agency or other tribunal asserting
      the
      invalidity of this Agreement, seeking to prevent the consummation of any of
      the
      transactions contemplated by this Agreement or which, either in any one instance
      or in the aggregate, may result in any material adverse change in the business,
      operations, financial condition, properties or assets of Saxon, or in any
      material impairment of the right or ability of Saxon to carry on its business
      substantially as now conducted, or in any material liability on the part of
      Saxon, or which would draw into question the validity of this Agreement or
      the
      Mortgage Loans or of any action taken or to be taken in connection with the
      obligations of Saxon contemplated herein, or which would be likely to impair
      materially the ability of Saxon to perform under the terms of this
      Agreement;

     

    (g)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by Saxon of, or
      compliance by Saxon with, this Agreement or the servicing of the Mortgage Loans
      as evidenced by the consummation by Saxon of the transactions contemplated
      by
      this Agreement, except for such consents, approvals, authorizations or orders,
      if any, that have been obtained prior to the Closing Date; and

     

    (h)  With
      respect to each Mortgage Loan serviced by Saxon hereunder, to the extent Saxon
      serviced such Mortgage Loan and to the extent Saxon provided monthly reports
      to
      the three credit repositories, Saxon has fully furnished, in accordance with
      the
      Fair Credit Reporting Act and its implementing regulations, accurate and
      complete information (i.e.,
      favorable and unfavorable) on its borrower credit files to Equifax, Experian,
      and Trans Union Credit Information Company (three of the credit repositories),
      on a monthly basis.

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT A

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
      TO
      ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND
      ANY
      CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
      NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
      IS
      MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
      OR
      OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
      HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN INTEREST
      IN
      A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE
      TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
      REVENUE CODE OF 1986, AS AMENDED (THE “CODE”),
      AND
      CERTAIN OTHER ASSETS.

     

    EACH
      BENEFICIAL OWNER OF THIS CERTIFICATE, OR ANY INTEREST THEREIN, SHALL BE DEEMED
      TO HAVE REPRESENTED THAT EITHER (I) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR
      ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO SECTION 4975
      OF
      THE CODE OR A PLAN SUBJECT TO ANY FEDERAL, STATE OR LOCAL LAW (“SIMILAR
      LAW”)
      MATERIALLY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE, NOR A
      PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT NOR USING THE ASSETS
      OF
      ANY SUCH PLAN OR ARRANGEMENT OR (II) (A) IT IS AN ACCREDITED INVESTOR WITHIN
      THE
      MEANING OF PROHIBITED TRANSACTION EXEMPTION 2002-41, AS AMENDED AND (B) FOR
      SO
      LONG AS THE SUPPLEMENTAL INTEREST TRUST IS IN EXISTENCE, THE ACQUISITION AND
      HOLDING OF THIS CERTIFICATE ARE ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE
      UNDER AT LEAST ONE OF PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”)
      84-14,
      PTCE 90-1, PTCE 91-38, PTCE 95-60 OR PTCE 96-23.

     

    
      	
              Certificate
                No:

            	 	
              [___]

            
	
              Cut-off
                Date:

            	 	
              January
                1, 2007

            
	
              First
                Distribution Date:

            	 	
              February
                26, 2007

            
	
              Initial
                Certificate Balance of this Certificate (“Denomination”):

            	 	
              $[___]

            
	
              Initial
                Certificate Balances of all Certificates of this Class: 

            	 	
              $[___]

            
	
              CUSIP:

            	 	
              [___]

            
	
              ISIN:

            	 	
              [___]

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    MORGAN
      STANLEY ABS CAPITAL I INC.

     

    Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1

    Mortgage
      Pass-Through Certificates, Series 2007-NC1

    [Class A-][Class M-][Class B-]

     

    evidencing
      a percentage interest in the distributions allocable to the Certificates of
      the
      above-referenced Class.

     

    Principal
      in respect of this Certificate is distributable monthly as set forth herein.
      Accordingly, the Certificate Balance at any time may be less than the
      Certificate Balance as set forth herein. This Certificate does not evidence
      an
      obligation of, or an interest in, and is not guaranteed by the Depositor, the
      Trustee or any other party to the Agreement referred to below or any of their
      respective affiliates. Neither this Certificate nor the Mortgage Loans are
      guaranteed or insured by any governmental agency or
      instrumentality.

     

    This
      certifies that Cede & Co. is the registered owner of the Percentage Interest
      evidenced by this Certificate (obtained by dividing the denomination of this
      Certificate by the aggregate of the denominations of all Certificates of the
      Class to which this Certificate belongs) in certain monthly distributions
      pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
      specified above (the “Agreement”)
      among
      Morgan Stanley ABS Capital I Inc., as depositor (the “Depositor”),
      Saxon
      Mortgage Services, Inc., as a servicer (“Saxon”),
      Countrywide Home Loans Servicing LP, as a servicer (“Countrywide
      Servicing”;
      together with Saxon, the “Servicers”),
      NC
      Capital Corporation, as responsible party, and Deutsche Bank National Trust
      Company, as trustee (the “Trustee”).
      To
      the extent not defined herein, the capitalized terms used herein have the
      meanings assigned in the Agreement. This Certificate is issued under and is
      subject to the terms, provisions and conditions of the Agreement, to which
      Agreement the Holder of this Certificate by virtue of the acceptance hereof
      assents and by which such Holder is bound.

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually authenticated by an authorized signatory of
      the
      Trustee.

     

     

    * * *

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

     

    Dated: 

    
      	 	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              not
                in its individual capacity, but solely as Trustee

            
	 	 	 
	 	 	 
	 	
              By:

            	 

    

     

    

     

    

    
      	
              Authenticated:

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              By:

            	 	 	 
	 	
              Authorized
                Signatory of

              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              not
                in its individual capacity,

              but
                solely as Trustee

            	 	 
	 	 	 	 

    

     

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    MORGAN
      STANLEY ABS CAPITAL I INC.

    Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1

    Mortgage
      Pass-Through Certificates

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Morgan Stanley ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through
      Certificates, of the Series specified on the face hereof (herein collectively
      called the “Certificates”),
      and
      representing a beneficial ownership interest in the Trust Fund created by the
      Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the funds on deposit in the Distribution Account for payment
      hereunder and that the Trustee is not liable to the Certificateholders for
      any
      amount payable under this Certificate or the Agreement or, except as expressly
      provided in the Agreement, subject to any liability under the
      Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced thereby, and the rights, duties and immunities
      of the Trustee.

     

    Pursuant
      to the terms of the Agreement, a distribution will be made on the 25th day
      of each month or, if such day is not a Business Day, the Business Day,
      immediately following (the “Distribution
      Date”),
      commencing on the first Distribution Date specified on the face hereof, to
      the
      Person in whose name this Certificate is registered at the close of business
      on
      the applicable Record Date in an amount equal to the product of the Percentage
      Interest evidenced by this Certificate and the amount required to be distributed
      to Holders of Certificates of the Class to which this Certificate belongs on
      such Distribution Date pursuant to the Agreement. The Record Date applicable
      to
      each Distribution Date is the Business Day immediately preceding such
      Distribution Date; provided,
      however,
      that
      for any Definitive Certificates, the Record Date shall be the last Business
      Day
      of the month next preceding the month of such Distribution Date.

     

    Distributions
      on this Certificate shall be made by wire transfer of immediately available
      funds to the account of the Holder hereof at a bank or other entity having
      appropriate facilities therefor, if such Certificateholder shall have so
      notified the Trustee in writing at least five Business Days prior to the related
      Record Date and such Certificateholder shall satisfy the conditions to receive
      such form of payment set forth in the Agreement, or, if not, by check mailed
      by
      first class mail to the address of such Certificateholder appearing in the
      Certificate Register. The final distribution on each Certificate will be made
      in
      like manner, but only upon presentment and surrender of such Certificate at
      the
      offices designated by the Trustee for such purposes, or such other location
      specified in the notice to Certificateholders of such final
      distribution.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Trustee and
      the rights of the Certificateholders under the Agreement at any time by the
      parties to the Agreement with the consent of the Holders of Certificates
      affected by such amendment evidencing the requisite Percentage Interest, as
      provided in the Agreement. Any such consent by the Holder of this Certificate
      shall be conclusive and binding on such Holder and upon all future Holders
      of
      this Certificate and of any Certificate issued upon the transfer hereof or
      in
      exchange therefor or in lieu hereof whether or not notation of such consent
      is
      made upon this Certificate. The Agreement also permits the amendment thereof,
      in
      certain limited circumstances, without the consent of the Holders of any of
      the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      of
      the Trustee upon surrender of this Certificate for registration of transfer
      at
      the offices designated by the Trustee for such purposes, accompanied by a
      written instrument of transfer in form satisfactory to the Trustee duly executed
      by the holder hereof or such holder’s attorney duly authorized in writing, and
      thereupon one or more new Certificates of the same Class in authorized
      denominations and evidencing the same aggregate Percentage Interest in the
      Trust
      Fund will be issued to the designated transferee or transferees.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      denominations specified in the Agreement. As provided in the Agreement and
      subject to certain limitations therein set forth, Certificates are exchangeable
      for new Certificates of the same Class in authorized denominations and
      evidencing the same aggregate Percentage Interest, as requested by the Holder
      surrendering the same.

     

    Each
      beneficial owner of the Certificate or any interest therein shall be deemed
      to
      have represented, by virtue of its acquisition or holding of the Certificate,
      or
      interest therein, that either (i) it is not a Plan or a trustee or other Person
      acting on behalf of a Plan or using “plan assets” of a Plan to effect such
      acquisition (including any insurance company using funds in its general or
      separate accounts that may constitute “plan assets”) or (ii)(A) the beneficial
      owner is an accredited investor within the meaning of Prohibited Transaction
      Exemption 2002-41, as amended from time to time (the “Exemption”) and (B) for so
      long as the Supplemental Interest Trust is in existence, the acquisition and
      holding of such Certificate and the separate right to receive payments from
      the
      Supplemental Interest Trust are eligible for the exemptive relief available
      under Prohibited Transaction Class Exemption (“PTCE”) 84-14 (for transactions by
      independent “qualified professional asset managers”), 91-38 (for transactions by
      bank collective investment funds), 90-1 (for transactions by insurance company
      pooled separate accounts), 95-60 (for transactions by insurance company general
      accounts) or 96-23 (for transactions effected by “in-house asset
      managers”).

     

    No
      service charge will 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
      Depositor and the Trustee and any agent of the Depositor or the Trustee may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and neither the Depositor, the Trustee, nor any such
      agent shall be affected by any notice to the contrary.

     

    On
      any
      Distribution Date on which the aggregate Stated Principal Balance of the
      Mortgage Loans is less than or equal to 5% of the Cut-off Date Pool Principal
      Balance, the Servicers, individually or together, will have the option to
      repurchase, in whole, from the Trust Fund all remaining Mortgage Loans and
      all
      property acquired in respect of the Mortgage Loans at a purchase price
      determined as provided in the Agreement. The obligations and responsibilities
      created by the Agreement will terminate as provided in Section 9.01 of the
      Agreement.

     

    Any
      term
      used herein that is defined in the Agreement shall have the meaning assigned
      in
      the Agreement, and nothing herein shall be deemed inconsistent with that
      meaning.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
      unto

     

    
      	 
	 
	 
	 
	 

    

     

    (Please
      print or typewrite name and address including postal zip code of
      assignee)

     

    the
      Percentage Interest evidenced by the within Certificate and hereby authorizes
      the transfer of registration of such Percentage Interest to assignee on the
      Certificate Register of the Trust Fund.

     

    I
      (We)
      further direct the Trustee to issue a new Certificate of a like denomination
      and
      Class, to the above named assignee and deliver such Certificate to the following
      address:

     

    
      

    

     

     

     

    Dated: 

    
      	 	 
	
              Signature
                by or on behalf of assignor

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

     

    

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  funds

              
	
                to

              	 	
                ,

              
	
                for
                  the account of

              	 	
                ,

              
	
                account
                  number___________, or, if mailed by check, to

              	 	
                ,

              
	
                Applicable
                  statements should be mailed to

              	 	
                ,

              
	 	
                .

              
	 	 
	
                This
                  information is provided by

              	 	
                ,

              
	
                the
                  assignee named above, or

              	 	
                ,

              
	
                as
                  its agent.

              	 	 

      

    

     

     

    

    EXHIBIT B

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
      TRANSFEROR DELIVERS TO THE TRUSTEE A TRANSFEROR LETTER IN THE FORM OF
      EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER (I) THE
      TRUSTEE RECEIVES A RULE 144A LETTER IN THE FORM OF EXHIBIT I TO THE
      AGREEMENT REFERRED TO HEREIN OR (II) THE TRUSTEE RECEIVES AN OPINION OF
      COUNSEL, DELIVERED AT THE EXPENSE OF THE TRANSFEROR, THAT SUCH TRANSFER MAY
      BE
      MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED.

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN INTEREST
      IN
      A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE
      TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
      REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AND CERTAIN OTHER
      ASSETS.

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE DELIVERS TO THE TRUSTEE A REPRESENTATION LETTER TO THE EFFECT THAT
      SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE
      EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
      OR A
      PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO MATERIALLY
      SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR LOCAL LAW (“SIMILAR
      LAW”)
      OR A
      PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN
      THE
      EVENT THAT SUCH REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER
      TO A PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO
      SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON
      ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY
      SUCH
      PLAN OR ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID AND
      OF
      NO EFFECT.

     

    
      	
              Certificate
                No.:

            	 	
              P-1

            
	
              Cut-off
                Date:

            	 	
              January
                1, 2007

            
	
              First
                Distribution Date:

            	 	
              February
                26, 2007

            
	
              Initial
                Certificate Balance of this Certificate (“Denomination”):

            	 	
              $100.00

            
	
              Initial
                Certificate Balances of all Certificates of this Class: 

            	 	
              $100.00

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    MORGAN
      STANLEY ABS CAPITAL I INC.

    Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1

    Mortgage
      Pass-Through Certificates, Series 2007-NC1

    Class P

     

    evidencing
      a percentage interest in the distributions allocable to the Certificates of
      the
      above-referenced Class.

     

    Distributions
      in respect of this Certificate are distributable monthly as set forth herein.
      This Certificate does not evidence an obligation of, or an interest in, and
      is
      not guaranteed by the Depositor, the Trustee or any other party to the Agreement
      referred to below or any of their respective affiliates. Neither this
      Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
      agency or instrumentality.

     

    This
      certifies that _____________________, is the registered owner of the Percentage
      Interest evidenced by this Certificate (obtained by dividing the denomination
      of
      this Certificate by the aggregate of the denominations of all Certificates
      of
      the Class to which this Certificate belongs) in certain monthly distributions
      pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
      specified above (the “Agreement”)
      among
      Morgan Stanley ABS Capital I Inc., as depositor (the “Depositor”),
      Saxon
      Mortgage Services, Inc., as a servicer (“Saxon”),
      Countrywide Home Loans Servicing LP, as a servicer (“Countrywide
      Servicing”;
      together with Saxon, the “Servicers”),
      NC
      Capital Corporation, as responsible party, and Deutsche Bank National Trust
      Company, as trustee (the “Trustee”).
      To
      the extent not defined herein, the capitalized terms used herein have the
      meanings assigned in the Agreement. This Certificate is issued under and is
      subject to the terms, provisions and conditions of the Agreement, to which
      Agreement the Holder of this Certificate by virtue of the acceptance hereof
      assents and by which such Holder is bound.

     

    This
      Certificate does not have a Pass-Through Rate and will be entitled to
      distributions only to the extent set forth in the Agreement. In addition, any
      distribution of the proceeds of any remaining assets of the Trust will be made
      only upon presentment and surrender of this Certificate at the offices
      designated by the Trustee for such purposes, or such other location specified
      in
      the notice to Certificateholders.

     

    No
      transfer of a Certificate of this Class shall be made unless such disposition
      is
      exempt from the registration requirements of the Securities Act of 1933, as
      amended (the “Securities Act”),
      and
      any applicable state securities laws or is made in accordance with the
      Securities Act and such laws. In the event of any such transfer, the Trustee
      shall require the transferor to execute a transferor certificate (in
      substantially the form attached to the Pooling and Servicing Agreement) and
      deliver either (i) a Rule 144A Letter, in either case substantially in
      the form attached to the Agreement, or (ii) a written Opinion of Counsel to
      the Trustee 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 be
      an
      expense of the transferor.

     

    No
      transfer of a Certificate of this Class shall be made unless the Trustee shall
      have received a representation letter from the transferee of such Certificate,
      acceptable to and in form and substance satisfactory to the Trustee, to the
      effect that such transferee is not an employee benefit plan subject to
      Section 406 of ERISA, Section 4975 of the Code or any materially
      similar provisions of applicable federal, state or local law (“Similar
      Law”),
      or a
      person acting on behalf of or investing plan assets of any such
      plan.

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually authenticated by an authorized signatory of
      the
      Trustee.

     

     

    * * *

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

     

    Dated: 

    
      	 	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              not
                in its individual capacity, but solely as Trustee

            
	 	
              By:

            	 

    

     

    

     

    

    
      	
              Authenticated:

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              By:

            	 	 	 
	 	
              Authorized
                Signatory of

              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              not
                in its individual capacity,

              but
                solely as Trustee

            	 	 
	 	 	 	 

    

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    MORGAN
      STANLEY ABS CAPITAL I INC.

    Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1

    Mortgage
      Pass-Through Certificates

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Morgan Stanley ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through
      Certificates, of the Series specified on the face hereof (herein collectively
      called the “Certificates”),
      and
      representing a beneficial ownership interest in the Trust Fund created by the
      Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the funds on deposit in the Distribution Account for payment
      hereunder and that the Trustee is not liable to the Certificateholders for
      any
      amount payable under this Certificate or the Agreement or, except as expressly
      provided in the Agreement, subject to any liability under the
      Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced thereby, and the rights, duties and immunities
      of the Trustee.

     

    Pursuant
      to the terms of the Agreement, a distribution will be made on the 25th day
      of each month or, if such 25th day is not a Business Day, the Business Day
      immediately following (the “Distribution
      Date”),
      commencing on the first Distribution Date specified on the face hereof, to
      the
      Person in whose name this Certificate is registered at the close of business
      on
      the applicable Record Date in an amount equal to the product of the Percentage
      Interest evidenced by this Certificate and the amount required to be distributed
      to Holders of Certificates of the Class to which this Certificate belongs on
      such Distribution Date pursuant to the Agreement. The Record Date applicable
      to
      each Distribution Date is the last Business Day of the month next preceding
      the
      month of such Distribution Date.

     

    Distributions
      on this Certificate shall be made by wire transfer of immediately available
      funds to the account of the Holder hereof at a bank or other entity having
      appropriate facilities therefor, if such Certificateholder shall have so
      notified the Trustee in writing at least five Business Days prior to the related
      Record Date and such Certificateholder shall satisfy the conditions to receive
      such form of payment set forth in the Agreement, or, if not, by check mailed
      by
      first class mail to the address of such Certificateholder appearing in the
      Certificate Register. The final distribution on each Certificate will be made
      in
      like manner, but only upon presentment and surrender of such Certificate at
      the
      offices designated by the Trustee for such purposes or such other location
      specified in the notice to Certificateholders of such final
      distribution.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Trustee and
      the rights of the Certificateholders under the Agreement at any time by the
      parties to the Agreement with the consent of the Holders of Certificates
      affected by such amendment evidencing the requisite Percentage Interest, as
      provided in the Agreement. Any such consent by the Holder of this Certificate
      shall be conclusive and binding on such Holder and upon all future Holders
      of
      this Certificate and of any Certificate issued upon the transfer hereof or
      in
      exchange therefor or in lieu hereof whether or not notation of such consent
      is
      made upon this Certificate. The Agreement also permits the amendment thereof,
      in
      certain limited circumstances, without the consent of the Holders of any of
      the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      of
      the Trustee upon surrender of this Certificate for registration of transfer
      at
      the offices designated by the Trustee for such purposes, accompanied by a
      written instrument of transfer in form satisfactory to the Trustee duly executed
      by the holder hereof or such holder’s attorney duly authorized in writing, and
      thereupon one or more new Certificates of the same Class in authorized
      denominations and evidencing the same aggregate Percentage Interest in the
      Trust
      Fund will be issued to the designated transferee or transferees.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      denominations specified in the Agreement. As provided in the Agreement and
      subject to certain limitations therein set forth, Certificates are exchangeable
      for new Certificates of the same Class in authorized denominations and
      evidencing the same aggregate Percentage Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made for any such registration of transfer or exchange,
      but the Trustee may require payment of a sum sufficient to cover any tax or
      other governmental charge payable in connection therewith.

     

    The
      Depositor and the Trustee and any agent of the Depositor or the Trustee may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and neither the Depositor, the Trustee, nor any such
      agent shall be affected by any notice to the contrary.

     

    On
      any
      Distribution Date on which the aggregate Stated Principal Balance of the
      Mortgage Loans is less than or equal to 5% of the Cut-off Date Pool Principal
      Balance, the Servicers, individually or together, will have the option to
      repurchase, in whole, from the Trust Fund all remaining Mortgage Loans and
      all
      property acquired in respect of the Mortgage Loans at a purchase price
      determined as provided in the Agreement. The obligations and responsibilities
      created by the Agreement will terminate as provided in Section 9.01 of the
      Agreement.

     

    Any
      term
      used herein that is defined in the Agreement shall have the meaning assigned
      in
      the Agreement, and nothing herein shall be deemed inconsistent with that
      meaning.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    
      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
        unto

       

      
        	 
	 
	 
	 
	 

      

       

      (Please
        print or typewrite name and address including postal zip code of
        assignee)

       

      the
        Percentage Interest evidenced by the within Certificate and hereby authorizes
        the transfer of registration of such Percentage Interest to assignee on the
        Certificate Register of the Trust Fund.

       

      I
        (We)
        further direct the Trustee to issue a new Certificate of a like denomination
        and
        Class, to the above named assignee and deliver such Certificate to the following
        address:

       

        

      

       

    

     

     

    Dated: 

    
      	 	 
	 	
              Signature
                by or on behalf of assignor

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DISTRIBUTION
      INSTRUCTIONS

    The
      assignee should include the following for purposes of distribution:

     

    
      

        
          	
                  Distributions
                    shall be made, by wire transfer or otherwise, in immediately
                    available
                    funds

                
	
                  to

                	 	
                  ,

                
	
                  for
                    the account of

                	 	
                  ,

                
	
                  account
                    number___________, or, if mailed by check, to

                	 	
                  ,

                
	
                  Applicable
                    statements should be mailed to

                	 	
                  ,

                
	 	
                  .

                
	 	 
	
                  This
                    information is provided by

                	 	
                  ,

                
	
                  the
                    assignee named above, or

                	 	
                  ,

                
	
                  as
                    its agent.

                	 	 

        

      

    

     

    

    

    EXHIBIT C

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST”
IN THREE “REAL ESTATE MORTGAGE INVESTMENT CONDUITS,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
      TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE WITH
      THE
      PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED (I) TO A PERSON
      OTHER THAN A PERMITTED TRANSFEREE IN COMPLIANCE WITH
      SECTION 5.02(c) OF THE AGREEMENT OR (II) UNLESS THE TRANSFEREE
      DELIVERS TO THE TRUSTEE A REPRESENTATION LETTER TO THE EFFECT THAT SUCH
      TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE
      RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
      OR A
      PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO MATERIALLY
      SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR LOCAL LAW (“SIMILAR
      LAW”)
      OR A
      PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN
      THE
      EVENT THAT SUCH REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER
      TO A PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO
      SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON
      ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY
      SUCH
      PLAN OR ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID AND
      OF
      NO EFFECT.

     

    
      	
              Certificate
                No.

            	
              :

            	
              [R-1][R-X-1]

            
	
              Cut-off
                Date

            	
              :

            	
              January
                1, 2007 

            
	
              First
                Distribution Date

            	
              :

            	
              February
                26, 2007

            
	
              Percentage
                Interest of this Certificate (“Denomination”)

            	
              :

            	
              100%

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    MORGAN
      STANLEY ABS CAPITAL I INC.

    Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1

    Mortgage
      Pass-Through Certificates, Series 2007-NC1

    CLASS [R][R-X]

     

    evidencing
      a percentage interest in the distributions allocable to the Certificates of
      the
      above-referenced Class.

     

    Distributions
      in respect of this Certificate is distributable monthly as set forth herein.
      This Class [R][R-X] Certificate has no Certificate Balance and is not
      entitled to distributions in respect of principal or interest. This Certificate
      does not evidence an obligation of, or an interest in, and is not guaranteed
      by
      the Depositor, the Trustee or any other party to the Agreement referred to
      below
      or any of their respective affiliates. Neither this Certificate nor the Mortgage
      Loans are guaranteed or insured by any governmental agency or
      instrumentality.

     

    This
      certifies that ______________________ is the registered owner of the Percentage
      Interest specified above of any monthly distributions due to the Class [R][R-X]
      Certificates pursuant to a Pooling and Servicing Agreement dated as of the
      Cut-off Date specified above (the “Agreement”)
      among
      Morgan Stanley ABS Capital I Inc., as depositor (the “Depositor”),
      Saxon
      Mortgage Services, Inc., as a servicer (“Saxon”),
      Countrywide Home Loans Servicing LP, as a servicer (“Countrywide
      Servicing”;
      together with Saxon, the “Servicers”),
      NC
      Capital Corporation, as responsible party, and Deutsche Bank National Trust
      Company, as trustee (the “Trustee”).
      To
      the extent not defined herein, the capitalized terms used herein have the
      meanings assigned in the Agreement. This Certificate is issued under and is
      subject to the terms, provisions and conditions of the Agreement, to which
      Agreement the Holder of this Certificate by virtue of the acceptance hereof
      assents and by which such Holder is bound.

     

    Any
      distribution of the proceeds of any remaining assets of the Trust Fund will
      be
      made only upon presentment and surrender of this Class [R][R-X] Certificate
      at the offices designated by the Trustee for such purposes or such other
      location specified in the notice to Certificateholders.

     

    No
      transfer of this Class [R][R-X] Certificate shall be made unless the Trustee
      shall have received a representation letter from the transferee of such
      Certificate, acceptable to and in form and substance satisfactory to the
      Trustee, to the effect that such transferee is not an employee benefit plan
      or
      arrangement subject to Section 406 of ERISA, a plan or arrangement subject
      to
      Section 4975 of the Code or a plan subject to Similar Law, or a person acting
      on
      behalf of any such plan or arrangement nor using the assets of any such plan
      or
      arrangement to effect such transfer. In the event that such representation
      is
      violated, or any attempt is made to transfer to a plan or arrangement subject
      to
      Section 406 of ERISA or a plan subject to Section 4975 of the Code or a plan
      subject to Similar Law, or a person acting on behalf of any such plan or
      arrangement or using the assets of any such plan or arrangement, such attempted
      transfer or acquisition shall be void and of no effect.

     

    Each
      Holder of this Class [R][R-X] Certificate shall be deemed by the acceptance
      or
      acquisition an Ownership Interest in this Class [R][R-X] Certificate to have
      agreed to be bound by the following provisions, and the rights of each Person
      acquiring any Ownership Interest in this Class [R][R-X] Certificate are
      expressly subject to the following provisions: (i) each Person holding or
      acquiring any Ownership Interest in this Class [R][R-X] 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, (ii) no Ownership
      Interest in this Class [R][R-X] Certificate may be registered on the Closing
      Date or thereafter transferred, and the Trustee shall not register the Transfer
      of this Certificate unless, in addition to the certificates required to be
      delivered to the Trustee under Section 5.02(b) of the Agreement, the Trustee
      shall have been furnished with a Transfer Affidavit of the initial owner or
      the
      proposed transferee in the form attached as Exhibit G to the Agreement, (iii)
      each Person holding or acquiring any Ownership Interest in this Class [R][R-X]
      Certificate shall agree (A) to obtain a Transfer Affidavit from any other Person
      to whom such Person attempts to Transfer its Ownership Interest this Class
      [R][R-X] Certificate, (B) to obtain a Transfer Affidavit from any Person for
      whom such Person is acting as nominee, trustee or agent in connection with
      any
      Transfer of this Class [R][R-X] Certificate, (C) not to cause income with
      respect to the Class [R][R-X] Certificate to be attributable to a foreign
      permanent establishment or fixed base, within the meaning of an applicable
      income tax treaty, of such Person or any other U.S. Person and (D) not to
      Transfer the Ownership Interest in this Class [R][R-X] Certificate or to cause
      the Transfer of the Ownership Interest in this Class [R][R-X] Certificate to
      any
      other Person if it has actual knowledge that such Person is a Non-Permitted
      Transferee and (iv) any attempted or purported Transfer of the Ownership
      Interest in this Class [R][R-X] Certificate in violation of the provisions
      herein shall be absolutely null and void and shall vest no rights in the
      purported Transferee.

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually authenticated by an authorized signatory of
      the
      Trustee.

     

     

    * * *

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

     

    Dated: 

    
      	 	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              not
                in its individual capacity, but solely as Trustee

            
	 	
              By:

            	 

    

     

    

     

    

    
      	
              Authenticated:

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              By:

            	 	 	 
	 	
              Authorized
                Signatory of

              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              not
                in its individual capacity,

              but
                solely as Trustee

            	 	 
	 	 	 	 

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1

    Mortgage
      Pass-Through Certificates

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Morgan Stanley ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through
      Certificates, of the Series specified on the face hereof (herein collectively
      called the “Certificates”),
      and
      representing a beneficial ownership interest in the Trust Fund created by the
      Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the funds on deposit in the Distribution Account for payment
      hereunder and that the Trustee is not liable to the Certificateholders for
      any
      amount payable under this Certificate or the Agreement or, except as expressly
      provided in the Agreement, subject to any liability under the
      Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced thereby, and the rights, duties and immunities
      of the Trustee.

     

    Pursuant
      to the terms of the Agreement, a distribution will be made on the 25th day
      of each month or, if such day is not a Business Day, the Business Day
      immediately following (the “Distribution
      Date”),
      commencing on the first Distribution Date specified on the face hereof, to
      the
      Person in whose name this Certificate is registered at the close of business
      on
      the applicable Record Date in an amount equal to the product of the Percentage
      Interest evidenced by this Certificate and the amount required to be distributed
      to Holders of Certificates of the Class to which this Certificate belongs on
      such Distribution Date pursuant to the Agreement. The Record Date applicable
      to
      each Distribution Date is the last Business Day of the month next preceding
      the
      month of such Distribution Date.

     

    Distributions
      on this Certificate shall be made by wire transfer of immediately available
      funds to the account of the Holder hereof at a bank or other entity having
      appropriate facilities therefor, if such Certificateholder shall have so
      notified the Trustee in writing at least five Business Days prior to the related
      Record Date and such Certificateholder shall satisfy the conditions to receive
      such form of payment set forth in the Agreement, or, if not, by check mailed
      by
      first class mail to the address of such Certificateholder appearing in the
      Certificate Register. The final distribution on each Certificate will be made
      in
      like manner, but only upon presentment and surrender of such Certificate at
      the
      offices designated by the Trustee for such purposes or such other location
      specified in the notice to Certificateholders of such final
      distribution.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Trustee and
      the rights of the Certificateholders under the Agreement at any time by the
      parties to the Agreement with the consent of the Holders of Certificates
      affected by such amendment evidencing the requisite Percentage Interest, as
      provided in the Agreement. Any such consent by the Holder of this Certificate
      shall be conclusive and binding on such Holder and upon all future Holders
      of
      this Certificate and of any Certificate issued upon the transfer hereof or
      in
      exchange therefor or in lieu hereof whether or not notation of such consent
      is
      made upon this Certificate. The Agreement also permits the amendment thereof,
      in
      certain limited circumstances, without the consent of the Holders of any of
      the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      of
      the Trustee upon surrender of this Certificate for registration of transfer
      at
      the offices designated by the Trustee for such purposes, accompanied by a
      written instrument of transfer in form satisfactory to the Trustee duly executed
      by the holder hereof or such holder’s attorney duly authorized in writing, and
      thereupon one or more new Certificates of the same Class in authorized
      denominations and evidencing the same aggregate Percentage Interest in the
      Trust
      Fund will be issued to the designated transferee or transferees.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      denominations specified in the Agreement. As provided in the Agreement and
      subject to certain limitations therein set forth, Certificates are exchangeable
      for new Certificates of the same Class in authorized denominations and
      evidencing the same aggregate Percentage Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made for any such registration of transfer or exchange,
      but the Trustee may require payment of a sum sufficient to cover any tax or
      other governmental charge payable in connection therewith.

     

    The
      Depositor and the Trustee and any agent of the Depositor or the Trustee may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and neither the Depositor, the Trustee, nor any such
      agent shall be affected by any notice to the contrary.

     

    On
      any
      Distribution Date on which the aggregate Stated Principal Balance of the
      Mortgage Loans is less than or equal to 5% of the Cut-off Date Pool Principal
      Balance, the Servicers, individually or together, will have the option to
      repurchase, in whole, from the Trust Fund all remaining Mortgage Loans and
      all
      property acquired in respect of the Mortgage Loans at a purchase price
      determined as provided in the Agreement. The obligations and responsibilities
      created by the Agreement will terminate as provided in Section 9.01 of the
      Agreement.

     

    Any
      term
      used herein that is defined in the Agreement shall have the meaning assigned
      in
      the Agreement, and nothing herein shall be deemed inconsistent with that
      meaning.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    
      
        FOR
          VALUE
          RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
          unto

         

        
          	 
	 
	 
	 
	 

        

         

        (Please
          print or typewrite name and address including postal zip code of
          assignee)

         

        the
          Percentage Interest evidenced by the within Certificate and hereby authorizes
          the transfer of registration of such Percentage Interest to assignee on
          the
          Certificate Register of the Trust Fund.

         

        I
          (We)
          further direct the Trustee to issue a new Certificate of a like denomination
          and
          Class, to the above named assignee and deliver such Certificate to the
          following
          address:

         

          

        

         

      

    

     

    Dated: 

    
      	 	 
	 	
              Signature
                by or on behalf of assignor

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DISTRIBUTION
      INSTRUCTIONS

    The
      assignee should include the following for purposes of distribution:

    

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  funds

              
	
                to

              	 	
                ,

              
	
                for
                  the account of

              	 	
                ,

              
	
                account
                  number___________, or, if mailed by check, to

              	 	
                ,

              
	
                Applicable
                  statements should be mailed to

              	 	
                ,

              
	 	
                .

              
	 	 
	
                This
                  information is provided by

              	 	
                ,

              
	
                the
                  assignee named above, or

              	 	
                ,

              
	
                as
                  its agent.

              	 	 

      

    

    EXHIBIT D

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN INTEREST
      IN
      A “REGULAR INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE
      TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
      REVENUE CODE OF 1986, AS AMENDED (THE “CODE”),
      AND
      CERTAIN OTHER ASSETS.

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
      TRANSFEROR DELIVERS TO THE TRUSTEE A TRANSFEROR LETTER IN THE FORM OF
      EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER (I) THE
      TRUSTEE RECEIVES A RULE 144A LETTER IN THE FORM OF EXHIBIT I TO THE
      AGREEMENT REFERRED TO HEREIN OR (II) THE TRUSTEE RECEIVES AN OPINION OF
      COUNSEL, DELIVERED AT THE EXPENSE OF THE TRANSFEROR, THAT SUCH TRANSFER MAY
      BE
      MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED.

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
      THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF
      THE
      EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
      OR A
      PLAN SUBJECT TO SECTION 4975 OF THE CODE, OR A PLAN SUBJECT TO APPLICABLE
      FEDERAL, STATE OR LOCAL LAW (“SIMILAR
      LAW”)
      MATERIALLY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE OR A PERSON
      INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN, OR, IF THIS
      CERTFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING AND THE
      TRANSFEREE IS AN INSURANCE COMPANY, A REPRESENTATION LETTER THAT IT IS USING
      THE
      ASSETS OF ITS GENERAL ACCOUNT AND THAT THE PURCHASE AND HOLDING OF THIS
      CERTIFICATE ARE (A) ELIGIBLE FOR EXEMPTIVE RELIEF UNDER PROHIBITED TRANSACTION
      CLASS EXEMPTION (“PTCE”) 95-60 PRIOR TO THE TERMINATION OF THE SUPPLEMENTAL
      INTEREST TRUST AND (B) COVERED UNDER SECTIONS I AND III OF PROHIBITED
      TRANSACTION CLASS EXEMPTION 95-60 AFTER THE TERMINATION OF THE SUPPLEMENTAL
      INTEREST TRUST OR AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE, TO THE
      EFFECT THAT THE PURCHASE OR HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE
      OR
      RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION WITHIN THE MEANING OF ERISA,
      SECTION 4975 OF THE CODE OR ANY SIMILAR LAW AND WILL NOT SUBJECT THE TRUSTEE,
      THE DEPOSITOR OR THE SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE EXPRESSLY
      UNDERTAKEN IN THE AGREEMENT OR TO ANY LIABILITY. NOTWITHSTANDING ANYTHING ELSE
      TO THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON
      BEHALF OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF ERISA, SECTION 4975
      OF
      THE CODE OR SIMILAR LAW WITHOUT THE OPINION OF COUNSEL SATISFACTORY TO THE
      TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.

     

    
      	
              Certificate
                No.

            	
              :

            	
              X-1

            
	
              Cut-off
                Date

            	
              :

            	
              January
                1, 2007

            
	
              First
                Distribution Date

            	
              :

            	
              February
                26, 2007

            
	
              Percentage
                Interest of this Certificate (“Denomination”)

            	
              :

            	
              100.00%

            

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    MORGAN
      STANLEY ABS CAPITAL I INC.

    Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1

    Mortgage
      Pass-Through Certificates, Series 2007-NC1

    Class X

     

    evidencing
      a percentage interest in the distributions allocable to the Certificates of
      the
      above-referenced Class.

     

    Distributions
      in respect of this Certificate are distributable monthly as set forth herein.
      This Certificate does not evidence an obligation of, or an interest in, and
      is
      not guaranteed by the Depositor, the Trustee or any other party to the Agreement
      referred to below or any of their respective affiliates. Neither this
      Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
      agency or instrumentality.

     

    This
      certifies that ___________________________, is the registered owner of the
      Percentage Interest evidenced by this Certificate (obtained by dividing the
      denomination of this Certificate by the aggregate of the denominations of all
      Certificates of the Class to which this Certificate belongs) in certain monthly
      distributions pursuant to a Pooling and Servicing Agreement dated as of the
      Cut-off Date specified above (the “Agreement”)
      among
      Morgan Stanley ABS Capital I Inc., as depositor (the “Depositor”), Saxon
      Mortgage Services, Inc., as a servicer (“Saxon”),
      Countrywide Home Loans Servicing LP, as a servicer (“Countrywide
      Servicing”;
      together with Saxon, the “Servicers”),
      NC
      Capital Corporation, as responsible party, and Deutsche Bank National Trust
      Company, as trustee (the “Trustee”).
      To
      the extent not defined herein, the capitalized terms used herein have the
      meanings assigned in the Agreement. This Certificate is issued under and is
      subject to the terms, provisions and conditions of the Agreement, to which
      Agreement the Holder of this Certificate by virtue of the acceptance hereof
      assents and by which such Holder is bound.

     

    This
      Certificate does not have a Certificate Balance or Pass-Through Rate and will
      be
      entitled to distributions only to the extent set forth in the Agreement. In
      addition, any distribution of the proceeds of any remaining assets of the Trust
      will be made only upon presentment and surrender of this Certificate at the
      offices designated by the Trustee for such purposes or such other location
      specified in the notice to Certificateholders.

     

    No
      transfer of a Certificate of this Class shall be made unless such disposition
      is
      exempt from the registration requirements of the Securities Act of 1933, as
      amended (the “Securities Act”),
      and
      any applicable state securities laws or is made in accordance with the
      Securities Act and such laws. In the event of any such transfer, the Trustee
      shall require the transferor to execute a transferor certificate (in
      substantially the form attached to the Pooling and Servicing Agreement) and
      deliver either (i) a Rule 144A Letter, in either case substantially in
      the form attached to the Agreement, or (ii) a written Opinion of Counsel to
      the Trustee 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 be
      an
      expense of the transferor.

     

    No
      transfer of a Certificate of this Class shall be made unless the Trustee shall
      have received either (i) a representation letter from the transferee of
      such Certificate, acceptable to and in form and substance satisfactory to the
      Trustee, to the effect that such transferee is not an employee benefit plan
      subject to Section 406 of ERISA or Section 4975 of the Code or any
      materially similar provisions of applicable Federal, state or local law
      (“Similar
      Law”)
      or a
      person acting on behalf of or investing plan assets of any such plan, or
      (ii) if such Certificate has been the subject of an ERISA-Qualifying
      Underwriting and the transferee is an insurance company, a representation letter
      that it is purchasing such Certificates with the assets of its general account
      and that the purchase and holding of such Certificates are (A) eligible for
      exemptive relief under PTCE 95-60 prior to the termination of the Supplemental
      Interest Trust and (B) covered under Sections I and III of PTCE 95-60 after
      the termination of the Supplemental Interest Trust, or (iii) in the case of
      a Certificate presented for registration in the name of an employee benefit
      plan
      subject to ERISA, or a plan or arrangement subject to Section 4975 of the
      Code (or comparable provisions of any subsequent enactments) or a plan subject
      to Similar Law, or a trustee of any such plan or any other person acting on
      behalf of any such plan or arrangement or using such plan’s or arrangement’s
      assets, an Opinion of Counsel satisfactory to the Trustee, which Opinion of
      Counsel shall not be an expense of the Trustee, the Servicer or the Trust Fund,
      addressed to the Trustee, to the effect that the purchase or holding of such
      Certificate will not constitute or result in a non-exempt prohibited transaction
      within the meaning of ERISA, Section 4975 of the Code or any Similar Law and
      will not subject the Depositor, the Trustee or the Servicer to any obligation
      in
      addition to those expressly undertaken in the Agreement or to any
      liability.

     

    No
      transfer of a Certificate of this Class shall be made unless the proposed
      transferee of such Certificate provides to the Trustee the appropriate tax
      certification form (i.e., IRS Form W-9 or IRS Form W-8BEN, W-8IMY, W-8EXP or
      W-8ECI, as applicable (or any successor form thereto)), as a condition to such
      transfer and agrees to update such forms (i) upon expiration of any such form,
      (ii) as required under then applicable U.S. Treasury regulations and (iii)
      promptly upon learning that any IRS Form W-9 or IRS Form W-8BEN, W-8IMY, W-8EXP
      or W-8ECI, as applicable (or any successor form thereto), has become obsolete
      or
      incorrect.

     

    Upon
      receipt of any such tax certification form from a transferee of any Class X
      Certificate, the Trustee shall forward a copy of such tax certification form
      to
      the Supplemental Interest Trust Trustee who shall provide it to the Swap
      Provider. Each Holder of a Class X Certificate and each transferee thereof
      shall
      be deemed to have consented to the Supplemental Interest Trust Trustee
      forwarding to the Swap Provider any such tax certification form such Holder
      or
      transferee has provided and updated in accordance with these transfer
      restrictions. Any purported sales or transfers of any Class X Certificate to
      a
      transferee which does not comply with these requirements shall be deemed null
      and void.

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually authenticated by an authorized signatory of
      the
      Trustee.

     

     

    * * *

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

     

    Dated: 

    
      	 	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              not
                in its individual capacity, but solely as Trustee

            
	 	
              By:

            	 

    

     

    

     

    

    
      	
              Authenticated:

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              By:

            	 	 	 
	 	
              Authorized
                Signatory of

              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              not
                in its individual capacity,

              but
                solely as Trustee

            	 	 
	 	 	 	 

    

     

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    MORGAN
      STANLEY ABS CAPITAL I INC.

    Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1

    Mortgage
      Pass-Through Certificates

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Morgan Stanley ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through
      Certificates, of the Series specified on the face hereof (herein collectively
      called the “Certificates”),
      and
      representing a beneficial ownership interest in the Trust Fund created by the
      Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the funds on deposit in the Distribution Account for payment
      hereunder and that the Trustee is not liable to the Certificateholders for
      any
      amount payable under this Certificate or the Agreement or, except as expressly
      provided in the Agreement, subject to any liability under the
      Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced thereby, and the rights, duties and immunities
      of the Trustee.

     

    Pursuant
      to the terms of the Agreement, a distribution will be made on the 25th day
      of each month or, if such 25th day is not a Business Day, the Business Day
      immediately following (the “Distribution
      Date”),
      commencing on the first Distribution Date specified on the face hereof, to
      the
      Person in whose name this Certificate is registered at the close of business
      on
      the applicable Record Date in an amount equal to the product of the Percentage
      Interest evidenced by this Certificate and the amount required to be distributed
      to Holders of Certificates of the Class to which this Certificate belongs on
      such Distribution Date pursuant to the Agreement. The Record Date applicable
      to
      each Distribution Date is the last Business Day of the month next preceding
      the
      month of such Distribution Date.

     

    Distributions
      on this Certificate shall be made by wire transfer of immediately available
      funds to the account of the Holder hereof at a bank or other entity having
      appropriate facilities therefor, if such Certificateholder shall have so
      notified the Trustee in writing at least five Business Days prior to the related
      Record Date and such Certificateholder shall satisfy the conditions to receive
      such form of payment set forth in the Agreement, or, if not, by check mailed
      by
      first class mail to the address of such Certificateholder appearing in the
      Certificate Register. The final distribution on each Certificate will be made
      in
      like manner, but only upon presentment and surrender of such Certificate at
      the
      offices designated by the Trustee for such purposes or such other location
      specified in the notice to Certificateholders of such final
      distribution.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Trustee and
      the rights of the Certificateholders under the Agreement at any time by the
      parties to the Agreement with the consent of the Holders of Certificates
      affected by such amendment evidencing the requisite Percentage Interest, as
      provided in the Agreement. Any such consent by the Holder of this Certificate
      shall be conclusive and binding on such Holder and upon all future Holders
      of
      this Certificate and of any Certificate issued upon the transfer hereof or
      in
      exchange therefor or in lieu hereof whether or not notation of such consent
      is
      made upon this Certificate. The Agreement also permits the amendment thereof,
      in
      certain limited circumstances, without the consent of the Holders of any of
      the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      of
      the Trustee upon surrender of this Certificate for registration of transfer
      at
      the offices designated by the Trustee for such purposes, accompanied by a
      written instrument of transfer in form satisfactory to the Trustee duly executed
      by the holder hereof or such holder’s attorney duly authorized in writing, and
      thereupon one or more new Certificates of the same Class in authorized
      denominations and evidencing the same aggregate Percentage Interest in the
      Trust
      Fund will be issued to the designated transferee or transferees.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      denominations specified in the Agreement. As provided in the Agreement and
      subject to certain limitations therein set forth, Certificates are exchangeable
      for new Certificates of the same Class in authorized denominations and
      evidencing the same aggregate Percentage Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made for any such registration of transfer or exchange,
      but the Trustee may require payment of a sum sufficient to cover any tax or
      other governmental charge payable in connection therewith.

     

    The
      Depositor and the Trustee and any agent of the Depositor or the Trustee may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and neither the Depositor, the Trustee, nor any such
      agent shall be affected by any notice to the contrary.

     

    On
      any
      Distribution Date on which the aggregate Stated Principal Balance of the
      Mortgage Loans is less than or equal to 5% of the Cut-off Date Pool Principal
      Balance, the Servicers, individually or together, will have the option to
      repurchase, in whole, from the Trust Fund all remaining Mortgage Loans and
      all
      property acquired in respect of the Mortgage Loans at a purchase price
      determined as provided in the Agreement. The obligations and responsibilities
      created by the Agreement will terminate as provided in Section 9.01 of the
      Agreement.

     

    Any
      term
      used herein that is defined in the Agreement shall have the meaning assigned
      in
      the Agreement, and nothing herein shall be deemed inconsistent with that
      meaning.

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    
      
        
          FOR
            VALUE
            RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
            unto

           

          
            	 
	 
	 
	 
	 

          

           

          (Please
            print or typewrite name and address including postal zip code of
            assignee)

           

          the
            Percentage Interest evidenced by the within Certificate and hereby authorizes
            the transfer of registration of such Percentage Interest to assignee
            on the
            Certificate Register of the Trust Fund.

           

          I
            (We)
            further direct the Trustee to issue a new Certificate of a like denomination
            and
            Class, to the above named assignee and deliver such Certificate to the
            following
            address:

           

            

          

           

        

      

       

    

     

     

    Dated: 

    
      	 	 
	 	
              Signature
                by or on behalf of assignor

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DISTRIBUTION
      INSTRUCTIONS

     

    The
      assignee should include the following for purposes of distribution:

    

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  funds

              
	
                to

              	 	
                ,

              
	
                for
                  the account of

              	 	
                ,

              
	
                account
                  number___________, or, if mailed by check, to

              	 	
                ,

              
	
                Applicable
                  statements should be mailed to

              	 	
                ,

              
	 	
                .

              
	 	 
	
                This
                  information is provided by

              	 	
                ,

              
	
                the
                  assignee named above, or

              	 	
                ,

              
	
                as
                  its agent.

              	 	 

      

    

     

     

    
 

    EXHIBIT E

    

    FORM
      OF
      INITIAL CERTIFICATION OF TRUSTEE

    [DATE]

     

    Morgan
      Stanley ABS Capital I Inc.

    1585
      Broadway, 38th Floor

    New
      York,
      New York 10036

     

    Countrywide
      Home Loans Servicing LP

    400
      Countrywide Way

    Simi
      Valley, California 93065

     

    NC
      Capital Corporation

    18400
      Von
      Karman, Suite 1000

    Irvine,
      California 92612

     

    Saxon
      Mortgage Services, Inc.

    4708
      Mercantile Drive

    Fort
      Worth, Texas 76137

     

     

    Re:
               Pooling
      and Servicing Agreement, dated as of January 1, 2007, among Morgan Stanley
      ABS
      Capital I Inc., as depositor, Countrywide Home Loans Servicing LP, as a
      servicer, Saxon Mortgage Services, Inc., as a servicer, NC Capital Corporation,
      as responsible party, and Deutsche Bank National Trust Company, as trustee,
      relating to the Morgan Stanley ABS Capital I Inc. Trust,
      Series 2007-NC1

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.02 of the above-captioned Pooling and Servicing
      Agreement (the “Pooling
      and Servicing Agreement”),
      for
      each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
      Loan listed in the attached schedule), it has received:

     

     

    (i) the
      original Mortgage Note, endorsed as provided in the following form: “Pay to the
      order of ________, without recourse”; and

     

    (ii) an
      executed assignment of the Mortgage (which may be included in a blanket
      assignment or assignments).

     

    Based
      on
      its review and examination and only as to the foregoing documents, such
      documents appear regular on their face and related to such Mortgage
      Loan.

     

    The
      Trustee has made no independent examination of any documents contained in each
      Mortgage File beyond the review specifically required in the Pooling and
      Servicing Agreement. The Trustee makes no representations as to: (i) the
      validity, legality, sufficiency, enforceability or genuineness of any of the
      documents contained in each Mortgage File of any of the Mortgage Loans
      identified on the Mortgage Loan Schedule, or (ii) the collectibility,
      insurability, effectiveness or suitability of any such Mortgage Loan.
      Notwithstanding anything herein to the contrary, the Trustee has made no
      determination and makes no representations as to whether (i) any
      endorsement is sufficient to transfer all right, title and interest of the
      party
      so endorsing, as Noteholder or assignee thereof, in and to that Mortgage Note
      or
      (ii) any assignment is in recordable form or sufficient to effect the
      assignment of and transfer to the assignee thereof, under the Mortgage to which
      the assignment relates.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Pooling and Servicing Agreement.

     

    
      	 	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Trustee

               

            
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 

    

    

    EXHIBIT F

    

    FORM
      OF
      DOCUMENT CERTIFICATION

    AND
      EXCEPTION REPORT OF TRUSTEE

    [DATE]

     

    Morgan
      Stanley ABS Capital I Inc.

    1585
      Broadway, 38th Floor

    New
      York,
      New York 10036

     

    Countrywide
      Home Loans Servicing LP

    400
      Countrywide Way

    Simi
      Valley, California 93065

     

    NC
      Capital Corporation

    18400
      Von
      Karman, Suite 1000

    Irvine,
      California 92612

     

    Saxon
      Mortgage Services, Inc.

    4708
      Mercantile Drive

    Fort
      Worth, Texas 76137

     

     

    Re:
               Pooling
      and Servicing Agreement, dated as of January 1, 2007, among Morgan Stanley
      ABS
      Capital I Inc., as depositor, Countrywide Home Loans Servicing LP, as a
      servicer, Saxon Mortgage Services, Inc., as a servicer, NC Capital Corporation,
      as responsible party, and Deutsche Bank National Trust Company, as trustee,
      relating to the Morgan Stanley ABS Capital I Inc. Trust,
      Series 2007-NC1

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.02 of the above-captioned Pooling and Servicing
      Agreement (the “Pooling
      and Servicing Agreement”),
      the
      undersigned, as Trustee, hereby certifies that as to each Mortgage Loan listed
      in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or
      listed on the attached Document Exception Report) it has received:

     

     

    (i) The
      original Mortgage Note, endorsed in the form provided in Section 2.01 of
      the Pooling and Servicing Agreement, with all intervening endorsements showing
      a
      complete chain of endorsement from the originator to the last
      endorsee.

     

    (ii) The
      original recorded Mortgage.

     

    (iii) An
      executed assignment of the Mortgage in the form provided in Section 2.01 of
      the Pooling and Servicing Agreement; or, if the Responsible Party has certified
      or the Trustee otherwise knows that the related Mortgage has not been returned
      from the applicable recording office, a copy of the assignment of the Mortgage
      (excluding information to be provided by the recording office).

     

    (iv) The
      original or duplicate original recorded assignment or assignments of the
      Mortgage showing a complete chain of assignment from the originator to the
      last
      endorsee.

     

    (v) The
      original or duplicate original lender’s title policy and all riders thereto or,
      any one of an original title binder, an original preliminary title report or
      an
      original title commitment, or a copy thereof certified by the title
      company.

     

    Based
      on
      its review and examination and only as to the foregoing documents, (a) such
      documents appear regular on their face and related to such Mortgage Loan, and
      (b) the information set forth in items (1), (2), (7) and (9) of the
      Mortgage Loan Schedule and items (1), (9) and (17) of the Data Tape
      Information accurately reflects information set forth in the Custodial
      File.

     

    The
      Trustee has made no independent examination of any documents contained in each
      Mortgage File beyond the review of the Custodial File specifically required
      in
      the Pooling and Servicing Agreement. The Trustee makes no representations as
      to:
      (i) the validity, legality, sufficiency, enforceability or genuineness of
      any of the documents contained in each Mortgage File of any of the Mortgage
      Loans identified on the Mortgage Loan Schedule, or (ii) the collectibility,
      insurability, effectiveness or suitability of any such Mortgage Loan.
      Notwithstanding anything herein to the contrary, the Trustee has made no
      determination and makes no representations as to whether (i) any
      endorsement is sufficient to transfer all right, title and interest of the
      party
      so endorsing, as Noteholder or assignee thereof, in and to that Mortgage Note
      or
      (ii) any assignment is in recordable form or sufficient to effect the
      assignment of and transfer to the assignee thereof, under the Mortgage to which
      the assignment relates.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Pooling and Servicing Agreement.

     

    
      	 	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Trustee

               

            
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 

    

    

    

    EXHIBIT G

    

    RESIDUAL
      TRANSFER AFFIDAVIT

     

    Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1,

    Mortgage
      Pass-Through Certificates,

    Series 2007-NC1

     

    

    
      	
              STATE
                OF_____________

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    The
      undersigned, being first duly sworn, deposes and says as follows:

     

    1. The
      undersigned is an officer of ___________________, the proposed Transferee of
      an
      Ownership Interest in a Class [R][R-X] Certificate (the “Certificate”)
      issued
      pursuant to the Pooling and Servicing Agreement (the “Agreement”),
      relating to the above-referenced Series, by and among Morgan Stanley ABS
      Capital I Inc., as Depositor, Countrywide Home Loans Servicing LP, as a
      servicer, Saxon Mortgage Services, Inc., as a servicer, NC Capital Corporation,
      as Responsible Party, and Deutsche Bank National Trust Company, as Trustee
      (the “Trustee”).
      Capitalized terms used, but not defined herein, shall have the meanings ascribed
      to such terms in the Agreement. The Transferee has authorized the undersigned
      to
      make this affidavit on behalf of the Transferee for the benefit of the Depositor
      and the Trustee.

     

    2. The
      Transferee is, as of the date hereof, and will be, as of the date of the
      Transfer, a Permitted Transferee. The Transferee is acquiring its Ownership
      Interest in the Certificate for its own account. The Transferee has no knowledge
      that any such affidavit is false.

     

    3. The
      Transferee has been advised of, and understands that (i) a tax will be
      imposed on Transfers of the Certificate to Persons that are Non-Permitted
      Transferees; (ii) such tax will be imposed on the transferor, or, if such
      Transfer is through an agent (which includes a broker, nominee or middleman)
      for
      a Person that is a Non-Permitted Transferee, on the agent; and (iii) the
      Person otherwise liable for the tax shall be relieved of liability for the
      tax
      if the subsequent Transferee furnished to such Person an affidavit that such
      subsequent Transferee is a Permitted Transferee and, at the time of Transfer,
      such Person does not have actual knowledge that the affidavit is
      false.

     

    4. The
      Transferee has been advised of, and understands that a tax will be imposed
      on a
“pass-through entity” holding the Certificate if at any time during the taxable
      year of the pass-through entity a Person that is a Non-Permitted Transferee
      is
      the record holder of an interest in such entity. The Transferee understands
      that
      such tax will not be imposed for any period with respect to which the record
      holder furnishes to the pass-through entity an affidavit that such record holder
      is a Permitted Transferee and the pass-through entity does not have actual
      knowledge that such affidavit is false. (For this purpose, a “pass-through
      entity” includes a regulated investment company, a real estate investment trust
      or common trust fund, a partnership, trust or estate, and certain cooperatives
      and, except as may be provided in Treasury Regulations, persons holding
      interests in pass-through entities as a nominee for another
      Person.)

     

    5. The
      Transferee has reviewed the provisions of Section 5.02(c) of the
      Agreement and understands the legal consequences of the acquisition of an
      Ownership Interest in the Certificate including, without limitation, the
      restrictions on subsequent Transfers and the provisions regarding voiding the
      Transfer and mandatory sales. The Transferee expressly agrees to be bound by
      and
      to abide by the provisions of Section 5.02(c) of the Agreement and the
      restrictions noted on the face of the Certificate. The Transferee understands
      and agrees that any breach of any of the representations included herein shall
      render the Transfer to the Transferee contemplated hereby null and
      void.

     

    6. The
      Transferee agrees to require a Transfer Affidavit from any Person to whom the
      Transferee attempts to Transfer its Ownership Interest in the Certificate,
      and
      in connection with any Transfer by a Person for whom the Transferee is acting
      as
      nominee, trustee or agent, and the Transferee will not Transfer its Ownership
      Interest or cause any Ownership Interest to be Transferred to any Person that
      the Transferee knows is a Non-Permitted Transferee. In connection with any
      such
      Transfer by the Transferee, the Transferee agrees to deliver to the Trustee
      a
      certificate substantially in the form set forth as Exhibit H to the
      Agreement (a “Transferor
      Certificate”)
      to the
      effect that, among other things, such Transferee has no actual knowledge that
      the Person to which the Transfer is to be made is a Non-Permitted
      Transferee.

     

    7. The
      Transferee does not have the intention to impede the assessment or collection
      of
      any tax legally required to be paid with respect to the Certificate. The
      Transferee has historically paid its debts as they have come due and intends
      to
      pay its debts as they come due in the future. The Transferee intends to pay
      all
      taxes due with respect to the Certificate as they become due.

     

    8. The
      Transferee’s taxpayer identification number is __________.

     

    9. The
      Transferee is a U.S. Person as defined in Code
      Section 7701(a)(30).

     

    10. The
      Transferee is aware that the Certificate may be a “noneconomic residual
      interest” within the meaning of proposed Treasury regulations promulgated
      pursuant to the Code and that the transferor of a noneconomic residual interest
      will remain liable for any taxes due with respect to the income on such residual
      interest, unless no significant purpose of the transfer was to impede the
      assessment or collection of tax.

     

    11. The
      Transferee will not cause income from the Residual Certificate to be
      attributable to a foreign permanent establishment or fixed base, within the
      meaning of an applicable income tax treaty, of the Transferee or any other
      U.S.
      Person.

     

    12. Check
      the
      applicable paragraph:

     

    
      	 	
              (i)

            	
              The
                present value of the anticipated tax liabilities associated with
                holding
                the Certificate, as applicable, does not exceed the sum
                of:

            

    

     

    
      	 	
              (ii)

            	
              the
                present value of any consideration given to the Transferee to acquire
                such
                Certificate;

            

    

     

    
      	 	
              (iii)

            	
              the
                present value of the expected future distributions on such Certificate;
                and

            

    

     

    
      	 	
              (iv)

            	
              the
                present value of the anticipated tax savings associated with holding
                such
                Certificate as the related REMIC generates
                losses.

            

    

     

    For
      purposes of this calculation, (i) the Transferee is assumed to pay tax at
      the highest rate currently specified in Section 11(b) of the Code (but
      the tax rate in Section 55(b)(1)(B) of the Code may be used in lieu of
      the highest rate specified in Section 11(b) of the Code if the
      Transferee has been subject to the alternative minimum tax under Section 55
      of the Code in the preceding two years and will compute its taxable income
      in
      the current taxable year using the alternative minimum tax rate) and
      (ii) present values are computed using a discount rate equal to the
      short-term Federal rate prescribed by Section 1274(d) of the Code for the
      month of the transfer and the compounding period used by the
      Transferee.

     

    (i) The
      transfer of the Certificate complies with U.S. Treasury Regulations Sections
      1.860E-1(c)(5) and (6) and, accordingly,

     

    (ii) the
      Transferee is an “eligible corporation,” as defined in U.S. Treasury Regulations
      Section 1.860E-1(c)(6)(i), as to which income from the Certificate will
      only be taxed in the United States;

     

    (iii) at
      the
      time of the transfer, and at the close of the Transferee’s two fiscal years
      preceding the year of the transfer, the Transferee had gross assets for
      financial reporting purposes (excluding any obligation of a person related
      to
      the Transferee within the meaning of U.S. Treasury Regulations
      Section 1.860E-1(c)(6)(ii)) in excess of $100 million and net assets in
      excess of $10 million;

     

    (iv) the
      Transferee will transfer the Certificate only to another “eligible corporation,”
as defined in U.S. Treasury Regulations Section 1.860E-1(c)(6)(i), in a
      transaction that satisfies the requirements of Sections 1.860E-1(c)(4)(i),
      (ii) and (iii) and Section 1.860E-1(c)(5) of the U.S. Treasury
      Regulations; and

     

    (v) the
      Transferee determined the consideration paid to it to acquire the Certificate
      based on reasonable market assumptions (including, but not limited to, borrowing
      and investment rates, prepayment and loss assumptions, expense and reinvestment
      assumptions, tax rates and other factors specific to the Transferee) that it
      has
      determined in good faith.

     

    (vi) None
      of
      the above.

     

    5. The
      Transferee is not an employee benefit plan that is subject to Title I of ERISA
      or a plan that is subject to Section 4975 of the Code or a plan subject to
      any Federal, state or local law that is substantially similar to Title I of
      ERISA or Section 4975 of the Code, and the Transferee is not acting on
      behalf of or investing plan assets of such a plan.

     

     

    * * *

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Transferee has caused this instrument to be executed on
      its
      behalf, pursuant to authority of its Board of Directors, by its duly authorized
      officer and its corporate seal to be hereunto affixed, duly attested, this
          
      day of
               ,
      20__.

     

     

    

    
      	 	 
	 	
              Print
                Name of Transferee

               

            
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 

    

    

     

    [Corporate
      Seal]

     

    

     

    ATTEST:

     

    [Assistant]
      Secretary

     

    Personally
      appeared before me the above-named __________, known or proved to me to be
      the
      same person who executed the foregoing instrument and to be the ___________
      of
      the Transferee, and acknowledged that he executed the same as his free act
      and
      deed and the free act and deed of the Transferee.

     

    Subscribed
      and sworn before me this     
      day of
        
      ,
      20    .

     

    

    
      	 	 
	 	
              NOTARY
                PUBLIC

            
	 	
              My
                Commission expires the __ day

              of
                _________, 20__

            

    

    

    

    

    

    EXHIBIT H

    

    FORM
      OF
      TRANSFEROR CERTIFICATE

     

    __________,
      20__

    Morgan
      Stanley ABS Capital I Inc.

    1585
      Broadway, 38th
      Floor

    New
      York,
      New York 10036

    Attention:
      [___]

     

    Deutsche
      Bank National Trust Company,

    as
      Trustee

    1761
      East
      St. Andrew Place

    Santa
      Ana, California 92705

     

     

    Re:
               Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1 
      Mortgage
        Pass-Through Certificates, Series 2007-NC1,
        Class [     ]

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with our disposition of the above Certificates we certify that
      (a) we understand that the Certificates have not been registered under the
      Securities Act of 1933, as amended (the “Act”),
      and
      are being disposed by us in a transaction that is exempt from the registration
      requirements of the Act, (b) we have not offered or sold any Certificates
      to, or solicited offers to buy any Certificates from, any person, or otherwise
      approached or negotiated with any person with respect thereto, in a manner
      that
      would be deemed, or taken any other action which would result in, a violation
      of
      Section 5 of the Act and (c) to the extent we are disposing of a
      Residual Certificate, (i) we have no knowledge the Transferee is a
      Non-Permitted Transferee, (ii) after conducting a reasonable investigation
      of the financial condition of the Transferee, we have no knowledge and no reason
      to believe that the Transferee will not pay all taxes with respect to the
      Residual Certificates as they become due and (iii) we have no reason to
      believe that the statements made in paragraphs 7, 10 and 11 of the
      Transferee’s Residual Transfer Affidavit are false.

     

     

    

    
      	 	Very
              truly yours,
	 	 
	 	 
	 	 
	 	 
	 	
              Print
                Name of Transferor

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Authorized
                Officer

            
	 	 	 

    

    

    EXHIBIT I

    

    FORM
      OF
      RULE 144A LETTER

     

    ____________,
      20__

    Morgan
      Stanley ABS Capital I Inc.

    1585
      Broadway, 38th
      Floor

    New
      York,
      New York 10036

    Attention:
      [___]

     

    Deutsche
      Bank National Trust Company,

    as
      Trustee

    1761
      East
      St. Andrew Place

    Santa
      Ana, California 92705

     

     

    Re: 
      Morgan
      Stanley ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through
      Certificates, Series 2007-NC1, Class [___]

    

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above Certificates we certify that
      (a) we understand that the Certificates are not being registered under the
      Securities Act of 1933, as amended (the “Act”),
      or
      any state securities laws and are being transferred to us in a transaction
      that
      is exempt from the registration requirements of the Act and any such laws,
      (b) we have such knowledge and experience in financial and business matters
      that we are capable of evaluating the merits and risks of investments in the
      Certificates, (c) we have had the opportunity to ask questions of and
      receive answers from the Depositor concerning the purchase of the Certificates
      and all matters relating thereto or any additional information deemed necessary
      to our decision to purchase the Certificates, (d) we are not an employee
      benefit plan that is subject to Title I of the Employee Retirement Income
      Security Act of 1974, as amended (“ERISA”),
      or a
      plan or arrangement that is subject to Section 4975 of the Internal Revenue
      Code of 1986, as amended, or a plan subject to materially similar provisions
      of
      applicable federal, state or local law, nor are we acting on behalf of any
      such
      plan or arrangement nor using the assets of any such plan or arrangement to
      effect such acquisition or, with respect to a Class X Certificate that has
      been the subject of an ERISA-Qualifying Underwriting, the purchaser is an
      insurance company that is purchasing this certificate with funds contained
      in an
“insurance company general account” (as such term is defined in
      Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”))
      and
      that is eligible for exemptive relief under PTCE 95-60 prior to the termination
      of the Supplemental Interest Trust and the purchase and holding of such
      Certificates are covered under Sections I and III of PTCE 95-60 after the
      termination of the Supplemental Interest Trust, (e) we have not, nor has anyone
      acting on our behalf offered, transferred, pledged, sold or otherwise disposed
      of the Certificates, any interest in the Certificates or any other similar
      security to, or solicited any offer to buy or accept a transfer, pledge or
      other
      disposition of the Certificates, any interest in the Certificates or any other
      similar security from, or otherwise approached or negotiated with respect to
      the
      Certificates, any interest in the Certificates or any other similar security
      with, any person in any manner, or made any general solicitation by means of
      general advertising or in any other manner, or taken any other action, that
      would constitute a distribution of the Certificates under the Securities Act
      or
      that would render the disposition of the Certificates a violation of
      Section 5 of the Securities Act or require registration pursuant thereto,
      nor will act, nor has authorized or will authorize any person to act, in such
      manner with respect to the Certificates, and (f) we are a “qualified
      institutional buyer” as that term is defined in Rule 144A under the
      Securities Act and have completed either of the forms of certification to that
      effect attached hereto as Annex 1 or Annex 2. We are aware that the
      sale to us is being made in reliance on Rule 144A. We are acquiring the
      Certificates for our own account or for resale pursuant to Rule 144A and
      further, understand that such Certificates may be resold, pledged or transferred
      only (i) to a person reasonably believed to be a qualified institutional
      buyer that purchases for its own account or for the account of a qualified
      institutional buyer to whom notice is given that the resale, pledge or transfer
      is being made in reliance on Rule 144A, or (ii) pursuant to another
      exemption from registration under the Securities Act.

     

    In
      connection with our purchase of the Certificates, we acknowledge and agree
      that
      (i) none of you nor any of your affiliates is acting as a fiduciary or
      financial or investment adviser for us; (ii) we are not relying (for
      purposes of making any investment decision or otherwise) upon any advice,
      counsel or representations (whether written or oral) of any of you or your
      affiliates with respect to the Certificates; (iii) none of you nor any of
      your affiliates has given to us (directly or indirectly through any other
      person) any assurance, guarantee or representation whatsoever as to the expected
      or projected success, profitability, return, performance, result, effect,
      consequence, or benefit (including legal, regulatory, tax, financial, accounting
      or otherwise) of our purchase of the Certificates; (iv) we have performed
      our own diligence to the extent we have deemed necessary and we have consulted
      with our own legal, regulatory, tax, business, investment, financial and
      accounting advisers to the extent that we have deemed necessary, and we have
      made our own investment decisions based upon our own judgment and upon any
      advice from such advisers as we have deemed necessary and appropriate and not
      upon any view expressed by any of you or your affiliates with respect to the
      Certificates; (v) none of you nor any of your affiliates will be obligated
      to make payments on the Certificates in the event that the assets of the trust
      is insufficient to provide for such payments; (vi) you and your affiliates
      may have positions and may effect transactions in any of the Series 2007-NC1
      securities; and (vii) we are familiar with the Certificates and have
      reviewed and understand the related pooling and servicing agreement, the
      prospectus supplement and prospectus relating to Series 2007-NC1 and the other
      material transaction documents related thereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX 1
      TO EXHIBIT I

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees Other Than Registered Investment Companies]

    The
      undersigned (the “Buyer”)
      hereby
      certifies as follows to the parties listed in the Rule 144A Transferee
      Certificate to which this certification relates with respect to the Certificates
      described therein:

     

    1. As
      indicated below, the undersigned is the President, Chief Financial Officer,
      Senior Vice President or other executive officer of the Buyer.

     

    2. In
      connection with purchases by the Buyer, the Buyer is a “qualified institutional
      buyer” as that term is defined in Rule 144A under the Securities Act of
      1933, as amended (“Rule 144A”),
      because (i) the Buyer owned and/or invested on a discretionary basis
      $            1 
      in
      securities (except for the excluded securities referred to below) as of the
      end
      of the Buyer’s most recent fiscal year (such amount being calculated in
      accordance with Rule 144A and (ii) the Buyer satisfies the criteria in
      the category marked below.

     

     

    
      	 	
              ____

            	
              Corporation,
                etc.
                The Buyer is a corporation (other than a bank, savings and loan
                association or similar institution), Massachusetts or similar business
                trust, partnership, or charitable organization described in
                Section 501(c)(3) of the Internal Revenue Code of 1986, as
                amended.

            

    

     

    
      	 	
              ____

            	
              Bank.
                The Buyer (a) is a national bank or banking institution organized
                under the laws of any State, territory or the District of Columbia,
                the
                business of which is substantially confined to banking and is supervised
                by the State or territorial banking commission or similar official
                or is a
                foreign bank or equivalent institution, and (b) has an audited net
                worth of at least $25,000,000 as demonstrated in its latest annual
                financial statements, a copy of which is attached
                hereto.

            

    

     

    
      	 	
              ____

            	
              Savings
                and Loan.
                The Buyer (a) is a savings and loan association, building and loan
                association, cooperative bank, homestead association or similar
                institution, which is supervised and examined by a State or Federal
                authority having supervision over any such institutions or is a foreign
                savings and loan association or equivalent institution and (b) has an
                audited net worth of at least $25,000,000 as demonstrated in its
                latest
                annual financial statements, a copy of which is attached
                hereto.

            

    

     

    
      	 	
              ____

            	
              Broker-dealer.
                The Buyer is a dealer registered pursuant to Section 15 of the
                Securities Exchange Act of 1934.

            

    

     

    
      	 	
              ____

            	
              Insurance
                Company.
                The Buyer is an insurance company whose primary and predominant business
                activity is the writing of insurance or the reinsuring of risks
                underwritten by insurance companies and which is subject to supervision
                by
                the insurance commissioner or a similar official or agency of a State,
                territory or the District of
                Columbia.

            

    

     

    
      	 	
              ____

            	
              State
                or Local Plan.
                The Buyer is a plan established and maintained by a State, its political
                subdivisions, or any agency or instrumentality of the State or its
                political subdivisions, for the benefit of its
                employees.

            

    

     

    
      	 	
              ____

            	
              ERISA
                Plan.
                The Buyer is an employee benefit plan within the meaning of Title I
                of the Employee Retirement Income Security Act of 1974, as
                amended.

            

    

     

    
      	 	
              ____

            	
              Investment
                Advisor.
                The Buyer is an investment advisor registered under the Investment
                Advisors Act of 1940.

            

    

     

    
      	 	
              ____

            	
              Small
                Business Investment Company.
                Buyer is a small business investment company licensed by the U.S.
                Small
                Business Administration under Section 301(c) or (d) of the Small
                Business Investment Act of 1958.

            

    

     

    
      	 	
              ____

            	
              Business
                Development Company.
                Buyer is a business development company as defined in
                Section 202(a)(22) of the Investment Advisors Act of
                1940.

            

    

    

    3. The
      term
“securities”
as
      used
      herein does
      not include
      (i) securities of issuers that are affiliated with the Buyer,
      (ii) securities that are part of an unsold allotment to or subscription by
      the Buyer, if the Buyer is a dealer, (iii) securities issued or guaranteed
      by the U.S. or any instrumentality thereof, (iv) bank deposit notes and
      certificates of deposit, (v) loan participations, (vi) repurchase
      agreements, (vii) securities owned but subject to a repurchase agreement
      and (viii) currency, interest rate and commodity swaps.

     

    4. For
      purposes of determining the aggregate amount of securities owned and/or invested
      on a discretionary basis by the Buyer, the Buyer used the cost of such
      securities to the Buyer and did not include any of the securities referred
      to in
      the preceding paragraph, except (i) where the Buyer reports its securities
      holdings in its financial statements on the basis of their market value, and
      (ii) no current information with respect to the cost of those securities
      has been published. If clause (ii) in the preceding sentence applies,
      the securities may be valued at market. Further, in determining such aggregate
      amount, the Buyer may have included securities owned by subsidiaries of the
      Buyer, but only if such subsidiaries are consolidated with the Buyer in its
      financial statements prepared in accordance with generally accepted accounting
      principles and if the investments of such subsidiaries are managed under the
      Buyer’s direction. However, such securities were not included if the Buyer is a
      majority-owned, consolidated subsidiary of another enterprise and the Buyer
      is
      not itself a reporting company under the Securities Exchange Act of 1934, as
      amended.

     

    5. The
      Buyer
      acknowledges that it is familiar with Rule 144A and understands that the
      seller to it and other parties related to the Certificates are relying and
      will
      continue to rely on the statements made herein because one or more sales to
      the
      Buyer may be in reliance on Rule 144A.

     

    6. Until
      the
      date of purchase of the Rule 144A Securities, the Buyer will notify each of
      the parties to which this certification is made of any changes in the
      information and conclusions herein. Until such notice is given, the Buyer’s
      purchase of the Certificates will constitute a reaffirmation of this
      certification as of the date of such purchase. In addition, if the Buyer is
      a
      bank or savings and loan is provided above, the Buyer agrees that it will
      furnish to such parties updated annual financial statements promptly after
      they
      become available.

     

    
      	 	 
	 	
              Print
                Name of Transferee

            
	 	 	 
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 
	 	 	 
	 	
              Date:

            	 

    

    

________________________

    1 Buyer
      must own and/or invest on a discretionary basis at least $100,000,000 in
      securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
      invest on a discretionary basis at least $10,000,000 in
      securities.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX 2
      TO EXHIBIT I

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees That Are Registered Investment Companies]

    The
      undersigned (the “Buyer”)
      hereby
      certifies as follows to the parties listed in the Rule 144A Transferee
      Certificate to which this certification relates with respect to the Certificates
      described therein:

     

    1. As
      indicated below, the undersigned is the President, Chief Financial Officer
      or
      Senior Vice President of the Buyer or, if the Buyer is a “qualified
      institutional buyer” as that term is defined in Rule 144A under the
      Securities Act of 1933, as amended (“Rule 144A”),
      because Buyer is part of a Family of Investment Companies (as defined below),
      is
      such an officer of the Adviser.

     

    1. In
      connection with purchases by Buyer, the Buyer is a “qualified institutional
      buyer” as defined in SEC Rule 144A because (i) the Buyer is an
      investment company registered under the Investment Company Act of 1940, as
      amended, and (ii) as marked below, the Buyer alone, or the Buyer’s Family
      of Investment Companies, owned at least $100,000,000 in securities (other than
      the excluded securities referred to below) as of the end of the Buyer’s most
      recent fiscal year. For purposes of determining the amount of securities owned
      by the Buyer or the Buyer’s Family of Investment Companies, the cost of such
      securities was used, except (i) where the Buyer or the Buyer’s Family of
      Investment Companies reports its securities holdings in its financial statements
      on the basis of their market value, and (ii) no current information with
      respect to the cost of those securities has been published. If
      clause (ii) in the preceding sentence applies, the securities may be
      valued at market.

     

    
      	 	
              ____

            	
              The
                Buyer owned $________in securities (other than the excluded securities
                referred to below) as of the end of the Buyer’s most recent fiscal year
                (such amount being calculated in accordance with
                Rule 144A).

            

    

     

    
      	 	
              ____

            	
              The
                Buyer is part of a Family of Investment Companies which owned in
                the
                aggregate $________in securities (other than the excluded securities
                referred to below) as of the end of the Buyer’s most recent fiscal year
                (such amount being calculated in accordance with
                Rule 144A).

            

    

     

    2. 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).

     

    3. The
      term
“securities”
as
      used
      herein does not include (i) securities of issuers that are affiliated with
      the Buyer or are part of the Buyer’s Family of Investment Companies,
      (ii) securities issued or guaranteed by the U.S. or any instrumentality
      thereof, (iii) bank deposit notes and certificates of deposit,
      (iv) loan participations, (v) repurchase agreements,
      (vi) securities owned but subject to a repurchase agreement and
      (vii) currency, interest rate and commodity swaps.

     

    4. The
      Buyer
      is familiar with Rule 144A and understands that the parties listed in the
      Rule 144A Transferee Certificate to which this certification relates are
      relying and will continue to rely on the statements made herein because one
      or
      more sales to the Buyer will be in reliance on Rule 144A. In addition, the
      Buyer will only purchase for the Buyer’s own account.

     

    5. Until
      the
      date of purchase of the Certificates, the undersigned will notify the parties
      listed in the Rule 144A Transferee Certificate to which this certification
      relates of any changes in the information and conclusions herein. Until such
      notice is given, the Buyer’s purchase of the Certificates will constitute a
      reaffirmation of this certification by the undersigned as of the date of such
      purchase.

     

    

    
      	 	 
	 	
              Print
                Name of Transferee

            
	 	 	 
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 
	 	 	 
	 	
              Date:

            	 
	 	 	 
	 	 	 
	 	
              IF
                AN ADVISER:

            
	 	 	 
	 	 
	 	
              Print
                Name of Buyer

            

    

    

    
 

    EXHIBIT J

    

    FORM
      OF
      REQUEST FOR RELEASE

    (for
      Trustee)

     

    To: [Trustee]

     

    Re:

    

    In
      connection with the administration of the Mortgage Loans held by you as the
      Trustee on behalf of the Certificateholders, we request the release, and
      acknowledge receipt, of the (Custodial File/[specify documents]) for the
      Mortgage Loan described below, for the reason indicated.

     

     

    Mortgagor’s
      Name, Address & Zip Code:

     

    Mortgage
      Loan Number:

     

    Send
      Custodial File to:

     

    Delivery
      Method (check one)

     

    ____1. Regular
      mail

     

    ____2. Overnight
      courier (Tracking information:
                  )

     

          
      If neither box 1 nor 2 is checked, regular mail shall be assumed.

     

    Reason
      for Requesting Documents (check one)

     

    ____1.
       Mortgage
      Loan Paid in Full. (The Servicer hereby certifies that all amounts received
      in
      connection therewith have been credited to its Collection Account as provided
      in
      the Pooling and Servicing Agreement.)

     

    ____2.
       Mortgage
      Loan Repurchase Pursuant to Subsection 2.03 of the Pooling and Servicing
      Agreement. (The Servicer hereby certifies that the repurchase price has been
      credited to Collection Account as provided in the Pooling and Servicing
      Agreement.)

     

    ____3.
       Mortgage
      Loan Liquidated By _________________. (The Servicer hereby certifies that all
      proceeds of foreclosure, insurance, condemnation or other liquidation have
      been
      finally received and credited to its Collection Account pursuant to the Pooling
      and Servicing Agreement.)

     

    ____4. Mortgage
      Loan in Foreclosure.

     

    ____5. Other
      (explain).

     

    

    If
      box 1,
      2 or 3 above is checked, and if all or part of the Custodial File was previously
      released to us, please release to us our previous request and receipt on file
      with you, as well as any additional documents in your possession relating to
      the
      specified Mortgage Loan.

     

    If
      box 4
      or 5 above is checked, upon our return of all of the above documents to you
      as
      the Trustee, please acknowledge your receipt by signing in the space indicated
      below, and returning this form if requested by us.

     

    

    
      	 	
              [SERVICER]

            
	 	 
	 	 	 
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 
	 	
              Date:

            	 
	 	 	 
	 	 	 
	 	 
	
              [ACKNOWLEDGED
                AND AGREED:

            	 	 
	 	 
	
              DEUTSCHE
                BANK NATIONAL TRUST

              COMPANY,
                as Trustee

            	 
	 	 
	 	 
	
              By:

            	 	 
	 	
              Name:

            	 
	 	
              Title:

            	 
	 	
              Date:                    ]

            	 

    

     

     

    Name:

    Title:

    Date:
                                                                ]

     

    

    EXHIBIT K

    

    CONTENTS
      OF EACH MORTGAGE FILE

     

    With
      respect to each Mortgage Loan, the Mortgage File shall include each of the
      following items, which shall be available for inspection by the Sponsor and
      which shall be retained by the Servicer or delivered to and retained by the
      Trustee, as applicable:

     

    (i) The
      original Mortgage Note bearing all intervening endorsements, showing a complete
      chain of endorsement from the originator to the last endorsee endorsed “Pay to
      the order of _________________ without recourse” and signed (which may be by
      facsimile signature) in the name of the last endorsee by an authorized officer.
      To the extent that there is no room on the face of the Mortgage Notes for
      endorsements, the endorsement may be contained on an allonge, unless the Trustee
      is advised in writing by the Responsible Party that state law does not so
      allow.

     

    (ii) The
      original of any guaranty executed in connection with the Mortgage
      Note.

     

    (iii) The
      original Mortgage, with evidence of recording thereon or a certified true copy
      of such Mortgage submitted for recording. If in connection with any Mortgage
      Loan, the Responsible Party cannot deliver or cause to be delivered the original
      Mortgage with evidence of recording thereon on or prior to the Closing Date
      because of a delay caused by the public recording office where such Mortgage
      has
      been delivered for recordation or because such Mortgage has been lost or because
      such public recording office retains the original recorded Mortgage, the
      Responsible Party shall deliver or cause to be delivered to the Trustee, a
      photocopy of such Mortgage, together with (i) in the case of a delay caused
      by the public recording office, an Officer’s Certificate of the Responsible
      Party or evidence of certification on the face of such photocopy of such
      Mortgage or a certificate from an escrow company, a title company or closing
      attorney stating that such Mortgage has been dispatched to the appropriate
      public recording office for recordation and that the original recorded Mortgage
      or a copy of such Mortgage certified by such public recording office to be
      a
      true and complete copy of the original recorded Mortgage will be promptly
      delivered to the Trustee upon receipt thereof by the Responsible Party; or
      (ii) in the case of a Mortgage where a public recording office retains the
      original recorded Mortgage or in the case where a Mortgage is lost after
      recordation in a public recording office, a copy of such Mortgage certified
      by
      such public recording office to be a true and complete copy of the original
      recorded Mortgage.

     

    (iv) The
      originals of all assumption, modification, consolidation or extension
      agreements, with evidence of recording thereon or a certified true copy of
      such
      agreement submitted for recording.

     

    (v) The
      original Assignment of Mortgage for each Mortgage Loan endorsed in
      blank.

     

    (vi) Originals
      of all intervening assignments of mortgage (if any) evidencing a complete chain
      of assignment from the applicable originator to the last endorsee with evidence
      of recording thereon or a certified true copy of such intervening assignments
      of
      mortgage submitted for recording, or if any such intervening assignment has
      not
      been returned from the applicable recording office or has been lost or if such
      public recording office retains the original recorded assignments of mortgage,
      the Responsible Party shall deliver or cause to be delivered to the Trustee,
      a
      photocopy of such intervening assignment, together with (i) in the case of
      a delay caused by the public recording office, an Officer’s Certificate of the
      Responsible Party or evidence of certification on the face of such photocopy
      of
      such intervening assignment or a certificate from an escrow company, a title
      company or a closing attorney stating that such intervening assignment of
      mortgage has been dispatched to the appropriate public recording office for
      recordation and that such original recorded intervening assignment of mortgage
      or a copy of such intervening assignment of mortgage certified by the
      appropriate public recording office to be a true and complete copy of the
      original recorded intervening assignment of mortgage will be promptly delivered
      to the Trustee upon receipt thereof by the Responsible Party; or (ii) in
      the case of an intervening assignment where a public recording office retains
      the original recorded intervening assignment or in the case where an intervening
      assignment is lost after recordation in a public recording office, a copy of
      such intervening assignment certified by such public recording office to be
      a
      true and complete copy of the original recorded intervening
      assignment.

     

    (vii) The
      original mortgagee title insurance policy or attorney’s opinion of title and
      abstract of title.

     

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

     

    (ix) Residential
      loan application.

     

    (x) Mortgage
      Loan closing statement.

     

    (xi) Verification
      of employment and income, if applicable.

     

    (xii) Verification
      of acceptable evidence of source and amount of down payment.

     

    (xiii) Credit
      report on Mortgagor.

     

    (xiv) Residential
      appraisal report.

     

    (xv) Photograph
      of the Mortgaged Property.

     

    (xvi) Survey
      of
      the Mortgaged Property.

     

    (xvii) Copy
      of
      each instrument necessary to complete identification of any exception set forth
      in the exception schedule in the title policy, i.e., map or plat, restrictions,
      easements, sewer agreements, home association declarations, etc.

     

    (xviii) All
      required disclosure statements.

     

    (xix) If
      required in an appraisal, termite report, structural engineer’s report, water
      potability and septic certification.

     

    (xx) Sales
      contract, if applicable.

     

    Evidence
      of payment of taxes and insurance, insurance claim files, correspondence,
      current and historical computerized data files (which include records of tax
      receipts and payment history from the date of origination), and all other
      processing, underwriting and closing papers and records which are customarily
      contained in a mortgage loan file and which are required to document the
      Mortgage Loan or to service the Mortgage Loan.

     

    

    EXHIBIT
      L

     

    FORM
      OF
      CERTIFICATION TO BE

    PROVIDED
      WITH FORM 10-K

     

    
      	 	
              Re:

            	
              Morgan
                Stanley ABS Capital I Inc. Trust 2007-NC1 (the “Trust”),
                Mortgage Pass-Through Certificates, Series 2007-NC1, issued pursuant
                to
                the Pooling and Servicing Agreement, dated as of January 1, 2007,
                among
                Morgan Stanley ABS Capital I Inc., as Depositor, Countrywide Home
                Loans Servicing LP, as a Servicer, Saxon Mortgage Services, Inc.,
                as a
                servicer (each a “Servicer”
                and, collectively, the “Servicers”),
                Deutsche Bank National Trust Company, as trustee (the “Trustee”),
                and NC Capital
                Corporation, as responsible party

            	 

    

    

    I,
      [identify the certifying individual], certify that:

     

    (1)  I
      have
      reviewed this annual report on Form 10-K (“Annual
      Report”),
      and
      all reports on Form 10-D (collectively with this Annual Report, the
“Reports”)
      required to be filed in respect of period covered by this Annual Report, of
      the
      Trust;

     

    (2)  Based
      on
      my knowledge, the Reports, taken as a whole, do not contain any untrue statement
      of a material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were
      made, not misleading with respect to the period covered by this Annual
      Report;

     

    (3)  Based
      on
      my knowledge, all of the distribution, servicing and other information required
      to be provided under Form 10-D for the period covered by this Annual Report
      is
      included in the Reports;

     

    (4)  Based
      on
      my knowledge and the compliance statements required in this Annual Report under
      Item 1123 of Regulation AB, and except as disclosed in the Reports, the
      Servicers have fulfilled their obligations under the Pooling and Servicing
      Agreement in all material respects; and

     

    (5)  All
      of
      the reports on assessment of compliance with servicing criteria for asset-backed
      securities and their related attestation reports on assessment of compliance
      with servicing criteria required to be included in this Annual Report in
      accordance with Item 1122 of Regulation AB and Exchange Act Rules 13a-18 and
      15d-18 have been included as an exhibit to this Annual Report, except as
      otherwise disclosed in this Annual Report. Any material instances of
      non-compliance described in such reports have been disclosed in this Annual
      Report.

     

    In
      giving
      the certifications above, I have reasonably relied on information provided
      to me
      by the following unaffiliated parties: the Trustee and the
      Servicers.

     

    
      	
              Date: __________________________

            	 
	 	 
	
              _______________________________

              [Signature]

              [Title]

            	 

    

    

    EXHIBIT
      M

     

    FORM
      OF
      CERTIFICATION

    TO
      BE
      PROVIDED BY THE TRUSTEE TO DEPOSITOR

     

    
      	 	
              Re:

            	
              Morgan
                Stanley ABS Capital I Inc. Trust 2007-NC1 (the “Trust”),
                Mortgage Pass-Through Certificates, Series 2007-NC1, issued pursuant
                to
                the Pooling and Servicing Agreement, dated as of January 1, 2007,
                among
                Morgan Stanley ABS Capital I Inc., as depositor, Countrywide Home
                Loans Servicing LP, as a servicer, Saxon Mortgage Services, Inc.,
                as a
                servicer (each a “Servicer”
                and, collectively, the “Servicers”),
                Deutsche Bank National Trust Company, as trustee (the “Trustee”),
                and NC Capital Corporation,
                as responsible party

            	 

    

    

    The
      Trustee hereby certifies to the Depositor, and its officers, directors and
      affiliates, and with the knowledge and intent that they will rely upon this
      certification, that:

     

    (1)  I
      have
      reviewed the annual report on Form 10-K for the fiscal year [___] (the
“Annual
      Report”),
      and
      all reports on Form 10-D required to be filed in respect of period covered
      by the Annual Report (collectively with the Annual Report, the “Reports”),
      of
      the Trust;

     

    (2)  To
      my
      knowledge, the Reports, taken as a whole, do not contain any untrue statement
      of
      a material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were
      made, not misleading with respect to the period covered by the Annual Report,
      it
      being understood that the Trustee is not responsible for verifying the accuracy
      or completeness of information in the Reports (a) provided by Persons other
      than the Trustee or any Subcontractor utilized by the Trustee or
      (b) relating to Persons other than the Trustee or any Subcontractor
      utilized by the Trustee as to which a Responsible Officer of the Trustee does
      not have actual knowledge;

     

    (3)  To
      my
      knowledge, the distribution or servicing information required to be provided
      to
      the Trustee by the Servicers under the Pooling and Servicing Agreement for
      inclusion in the Reports is included in the Reports; and

     

    (4)  The
      report on assessment of compliance with servicing criteria for asset-backed
      securities applicable to the Trustee and each Subcontractor utilized by the
      Trustee and their related attestation reports on assessment of compliance with
      servicing criteria applicable to it required to be included in the Annual Report
      in accordance with Item 1122 of Regulation AB and Exchange Act Rules 13a-18
      and
      15d-18 has been included as an exhibit to the Annual Report. Any material
      instances of non-compliance are described in such report and have been disclosed
      in the Annual Report.

     

    
      	
              Date: _________________________

            	 
	 	 
	
              _______________________________

              [Signature]

              [Title]

            	 

    

     

    

    

    EXHIBIT
      N

     

    FORM
      OF
      CERTIFICATION

    TO
      BE
      PROVIDED BY SAXON TO DEPOSITOR

     

     

    
      	 	
              Re:

            	
              Morgan
                Stanley ABS Capital I Inc. Trust 2007-NC1 (the “Trust”),
                Mortgage Pass-Through Certificates, Series 2007-NC1, issued pursuant
                to
                the Pooling and Servicing Agreement, dated as of January 1, 2007,
                among
                Morgan Stanley ABS Capital I Inc., as depositor, Countrywide Home
                Loans Servicing LP, as a servicer, Saxon Mortgage Services, Inc.,
                as a
                servicer, Deutsche Bank National Trust Company, as trustee (the
                “Trustee”),
                and NC Capital Corporation, as responsible party

            	 

    

    

    Saxon
      Mortgage Services, Inc. (the “Company”), certifies to the Depositor and the
      Trustee, and their officers, directors and affiliates, and with the knowledge
      and intent that they will rely upon this certification, that:

     

    (1)  The
      Company has reviewed the servicer compliance statement of the Company and the
      compliance statements of each Subservicer, if any, engaged by the Company
      provided to the Depositor and the Trustee for the Trust’s fiscal year [___] in
      accordance with Item 1123 of Regulation AB (each a “Compliance
      Statement”),
      the
      report on assessment of the Company’s compliance with the servicing criteria set
      forth in Item 1122(d) of Regulation AB (the “Servicing
      Criteria”)
      and
      reports on assessment of compliance with servicing criteria for asset-backed
      securities of the Company and of each Subservicer or Subcontractor, if any,
      engaged or utilized by the Company provided to the Depositor and the Trustee
      for
      the Trust’s fiscal year [___] in accordance with Rules 13a-18 and 15d-18 under
      Securities Exchange Act of 1934, as amended (the “Exchange
      Act”)
      and
      Item 1122 of Regulation AB (each a “Servicing
      Assessment”),
      the
      registered public accounting firm’s attestation report provided in accordance
      with Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of
      Regulation AB related to each Servicing Assessment (each an “Attestation
      Report”),
      and
      all servicing reports, officer’s certificates and other information relating to
      the servicing of the Mortgage Loans by the Company during 200[ ] that were
      delivered or caused to be delivered by the Company pursuant to the Agreement
      (collectively, the “Servicing
      Information”);

     

    (2)  Based
      on
      the Company’s knowledge, the Servicing Information, taken as a whole, does not
      contain any untrue statement of a material fact or omit to state a material
      fact
      necessary to make the statements made, in the light of the circumstances under
      which such statements were made, not misleading with respect to the period
      of
      time covered by the Servicing Information;

     

    (3)  Based
      on
      the Company’s knowledge, the servicing information required to be provided to
      the Trustee by the Company pursuant to the Pooling and Servicing Agreement
      has
      been provided to the Trustee;

     

    (4)  Based
      on
      the Company’s knowledge and the compliance review conducted in preparing
      Compliance Statement of the Company and, if applicable, reviewing each
      Compliance Statement of each Subservicer, if any, engaged by the Company, and
      except as disclosed in such Compliance Statement[(s)], the Company [(directly
      and through its Subservicers, if any)] has fulfilled its obligations under
      the
      Pooling and Servicing Agreement in all material respects.

     

    (5)  Each
      Servicing Assessment of the Company and of each Subservicer or Subcontractor,
      if
      any, engaged or utilized by the Company and its related Attestation Report
      required to be included in the Annual Report in accordance with Item 1122 of
      Regulation AB and Exchange Act Rules 13a-18 and 15d-18 has been provided to
      the
      Depositor and the Trustee. Any material instances of non-compliance are
      described in any such Servicing Assessment or Attestation Report.

     

    Date:__________________________

    By:___________________________

    Name:_________________________

    Title:__________________________

    

    EXHIBIT O

     

    FORM
      OF
      SERVICER POWER OF ATTORNEY

     

     

    When
      Recorded Mail To:

    

    [Countrywide
      Home Loans Servicing LP

    400
      Countrywide Way

    Simi
      Valley, California 93065]

    

    [Saxon
      Mortgage Services, Inc.

    4708
      Mercantile Drive

    Fort
      Worth, Texas 76137]

     

    

     

    LIMITED
      POWER OF ATTORNEY

     

    

    KNOW
      ALL
      MEN BY THESE PRESENTS, that Deutsche Bank National Trust Company, a national
      banking association organized and existing under the laws of the United States
      and having its principal place of business at 1761 East St. Andrew Place, Santa
      Ana, California, 92705, as Trustee pursuant to that Morgan Stanley ABS
      Capital I Inc. Trust 2007-NC1 Pooling and Servicing Agreement dated as of
      January 1, 2007 (the “Agreement”)
      by and
      among Morgan Stanley ABS Capital I Inc., as depositor (the “Depositor”),
      Saxon
      Mortgage Services, Inc., as a servicer (“Saxon”),
      Countrywide Home Loans Servicing LP, as a Servicer (“Countrywide
      Servicing”),
      NC
      Capital Corporation, as responsible party (“NC
      Capital”)
      and
      Deutsche Bank National Trust Company, as trustee (the “Trustee”),
      hereby constitutes and appoints [Countrywide Servicing][Saxon], by and through
      [Countrywide Servicing][Saxon]’s officers, the Trustee’s true and lawful
      Attorney-in-fact, in the Trustee’s name, place and stead and for the Trustee’s
      benefit, in connection with all mortgage loans serviced by [Countrywide
      Servicing][Saxon] pursuant to the Agreement solely for the purpose of performing
      such acts and executing such documents in the name of the Trustee necessary
      and
      appropriate to effectuate the following enumerated transactions in respect
      of
      any of the mortgages or deeds of trust (the “Mortgages”
and
      the
“Deeds
      of Trust”
      respectively) and promissory notes secured thereby (the “Mortgage
      Notes”)
      for
      which the undersigned is acting as Trustee for various certificateholders
      (whether the undersigned is named therein as mortgagee or beneficiary or has
      become mortgagee by virtue of endorsement of the Mortgage Note secured by any
      such Mortgage or Deed of Trust) and for which [Countrywide Servicing][Saxon]
      is
      acting as servicer.

     

    This
      Appointment shall apply only to the following enumerated transactions and
      nothing herein or in the Agreement shall be construed to the
      contrary:

     

     

    
      	 	
              1.

            	
              The
                modification or re-recording of a Mortgage or Deed of Trust, where
                said
                modification or re-recording is solely for the purpose of correcting
                the
                Mortgage or Deed of Trust to conform same to the original intent
                of the
                parties thereto or to correct title errors discovered after such
                title
                insurance was issued; provided
                that (i) said modification or re-recording, in either instance, does
                not adversely affect the lien of the Mortgage or Deed of Trust as
                insured
                and (ii) otherwise conforms to the provisions of the
                Agreement.

            

    

     

    
      	 	
              2.

            	
              The
                subordination of the lien of a Mortgage or Deed of Trust to an easement
                in
                favor of a public utility company of a government agency or unit
                with
                powers of eminent domain; this section shall include, without limitation,
                the execution of partial satisfactions/releases, partial reconveyances
                or
                the execution or requests to trustees to accomplish
                same.

            

    

     

    
      	 	
              3.

            	
              The
                conveyance of the properties to the mortgage insurer, or the closing
                of
                the title to the property to be acquired as real estate owned, or
                conveyance of title to real estate
                owned.

            

    

     

    
      	 	
              4.

            	
              The
                completion of loan assumption
                agreements.

            

    

     

    
      	 	
              5.

            	
              The
                full satisfaction/release of a Mortgage or Deed of Trust or full
                conveyance upon payment and discharge of all sums secured thereby,
                including, without limitation, cancellation of the related Mortgage
                Note.

            

    

     

    
      	 	
              6.

            	
              The
                assignment of any Mortgage or Deed of Trust and the related Mortgage
                Note,
                in connection with the repurchase of the mortgage loan secured and
                evidenced thereby.

            

    

     

    
      	 	
              7.

            	
              The
                full assignment of a Mortgage or Deed of Trust upon payment and discharge
                of all sums secured thereby in conjunction with the refinancing thereof,
                including, without limitation, the assignment of the related Mortgage
                Note.

            

    

     

    
      	 	
              8.

            	
              With
                respect to a Mortgage or Deed of Trust, the foreclosure, the taking
                of a
                deed in lieu of foreclosure, or the completion of judicial or non-judicial
                foreclosure or termination, cancellation or rescission of any such
                foreclosure, including, without limitation, any and all of the following
                acts:

            

    

     

    
      	 	
              a.

            	
              the
                substitution of trustee(s) serving under a Deed of Trust, in accordance
                with state law and the Deed of
                Trust;

            

    

     

    
      	 	
              b.

            	
              the
                preparation and issuance of statements of breach or
                non-performance;

            

    

     

    
      	 	
              c.

            	
              the
                preparation and filing of notices of default and/or notices of
                sale;

            

    

     

    
      	 	
              d.

            	
              the
                cancellation/rescission of notices of default and/or notices of
                sale;

            

    

     

    
      	 	
              e.

            	
              the
                taking of deed in lieu of foreclosure;
                and

            

    

     

    
      	 	
              f.

            	
              the
                preparation and execution of such other documents and performance
                of such
                other actions as may be necessary under the terms of the Mortgage,
                Deed of
                Trust or state law to expeditiously complete said transactions in
                paragraphs 8.a. through 8.e.
                above.

            

    

     

    
      	 	
              9.

            	
              With
                respect to the sale of property acquired through a foreclosure or
                deed-in
                lieu of foreclosure, including, without limitation, the execution
                of the
                following documentation:

            

    

     

    
      	 	
              a.

            	
              listing
                agreements;

            

    

     

    
      	 	
              b.

            	
              purchase
                and sale agreements;

            

    

     

    
      	 	
              c.

            	
              grant/warranty/quit
                claim deeds or any other deed causing the transfer of title of the
                property to a party contracted to purchase
                same;

            

    

     

    
      	 	
              d.

            	
              escrow
                instructions; and

            

    

     

    
      	 	
              e.

            	
              any
                and all documents necessary to effect the transfer of
                property.

            

    

     

    
      	 	
              10.

            	
              The
                modification or amendment of escrow agreements established for repairs
                to
                the mortgaged property or reserves for replacement of personal
                property.

            

    

    

    The
      undersigned gives said Attorney-in-fact full power and authority to execute
      such
      instruments and to do and perform all and every act and thing necessary and
      proper to carry into effect the power or powers granted by or under this Limited
      Power of Attorney as fully as the undersigned might or could do, and hereby
      does
      ratify and confirm to all that said Attorney-in-fact shall be effective as
      of
      January 26, 2007.

     

    This
      appointment is to be construed and interpreted as a limited power of attorney.
      The enumeration of specific items, rights, acts or powers herein is not intended
      to, nor does it give rise to, and it is not to be construed as a general power
      of attorney.

     

    Nothing
      contained herein shall (i) limit in any manner any indemnification provided
      by
      [Countrywide Servicing][Saxon] to the Trustee under the Agreement, or (ii)
      be
      construed to grant [Countrywide Servicing][Saxon] the power to initiate or
      defend any suit, litigation or proceeding in the name of Deutsche Bank National
      Trust Company except as specifically provided for herein. If [Countrywide
      Servicing][Saxon] receives any notice of suit, litigation or proceeding in
      the
      name of Deutsche Bank National Trust Company, then [Countrywide
      Servicing][Saxon] shall promptly forward a copy of same to the
      Trustee.

     

    This
      limited power of attorney is not intended to extend the powers granted to
      [Countrywide Servicing][Saxon] under the Agreement or to allow [Countrywide
      Servicing][Saxon] to take any action with respect to Mortgages, Deeds of Trust
      or Mortgage Notes not authorized by the Agreement.

     

    [Countrywide
      Servicing][Saxon] hereby agrees to indemnify and hold the Trustee and its
      directors, officers, employees and agents harmless from and against any and
      all
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      costs, expenses or disbursements of any kind or nature whatsoever incurred
      by
      reason or result of or in connection with the exercise by [Countrywide
      Servicing][Saxon] of the powers granted to it hereunder. The foregoing indemnity
      shall survive the termination of this Limited Power of Attorney and the
      Agreement or the earlier resignation or removal of the Trustee under the
      Agreement.

     

    This
      Limited Power of Attorney is entered into and shall be governed by the laws
      of
      the State of New York, without regard to conflicts of law principles of such
      state.

     

    Third
      parties without actual notice may rely upon the exercise of the power granted
      under this Limited Power of Attorney; and may be satisfied that this Limited
      Power of Attorney shall continue in full force and effect and has not been
      revoked unless an instrument of revocation has been made in writing by the
      undersigned.

     

    IN
      WITNESS WHEREOF, Deutsche Bank National Trust Company, as Trustee has caused
      its
      corporate seal to be hereto affixed and these presents to be signed and
      acknowledged in its name and behalf by a duly elected and authorized signatory
      this ___________ day of ____________.

     

    
      	 	
              Deutsche
                Bank National Trust Company, as Trustee

            
	 	
              By:______________________________________

            
	 	 
	 	
              Name::

            
	 	 
	 	
              Title

            

    

    

    
      	
              Acknowledged
                and Agreed

               

              [Countrywide
                Servicing][Saxon]

            
	 
	
              By:_____________________________

            
	
              Name:

            
	
              Title:

            

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    STATE
      OF
      CALIFORNIA

     

    COUNTY
      OF
      ____________

     

    On
      ________________, _____, before me, the undersigned, a Notary Public in and
      for
      said state, personally appeared ________________________________ of Deutsche
      Bank National Trust Company, as Trustee for Morgan Stanley ABS Capital I
      Inc. Trust 2007-NC1 personally known to me to be the person whose name is
      subscribed to the within instrument and acknowledged to me that he/she executed
      that same in his/her authorized capacity, and that by his/her signature on
      the
      instrument the entity upon behalf of which the person acted and executed the
      instrument.

     

     

    WITNESS
      my hand and official seal.

     

    (SEAL)

    
      	 	 
	 	
              Notary
                Public, State of California

            

    

    

    EXHIBIT
      P

     

    SERVICING
      CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     

    The
      assessment of compliance to be delivered by the Trustee, each Servicer, each
      Subservicer and each Subcontractor shall address, at a minimum, the criteria
      identified as below as “Applicable
      Servicing Criteria”:

     

    
      	
              SERVICING
                CRITERIA 

            	
              APPLICABLE
                SERVICING CRITERIA

            
	
              Reference

            	
              Criteria

            	
               

            
	
               

            	
              General
                Servicing Considerations

            	
               

            
	
              1122(d)(1)(i)

            	
              Policies
                and procedures are instituted to monitor any performance or other
                triggers
                and events of default in accordance with the transaction
                agreements.

            	
              Trustee/Servicer

            
	
              1122(d)(1)(ii)

            	
              If
                any material servicing activities are outsourced to third parties,
                policies and procedures are instituted to monitor the third party’s
                performance and compliance with such servicing activities.

            	
              Trustee/Servicer

            
	
              1122(d)(1)(iii)

            	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the mortgage loans are maintained.

            	
              N/A

            
	
              1122(d)(1)(iv)

            	
              A
                fidelity bond and errors and omissions policy is in effect on the
                party
                participating in the servicing function throughout the reporting
                period in
                the amount of coverage required by and otherwise in accordance with
                the
                terms of the transaction agreements.

            	
              Servicer

            
	
               

            	
              Cash
                Collection and Administration

            	 
	
              1122(d)(2)(i)

            	
              Payments
                on mortgage loans are deposited into the appropriate custodial bank
                accounts and related bank clearing accounts no more than two business
                days
                following receipt, or such other number of days specified in the
                transaction agreements.

            	
              Servicer

            
	
              1122(d)(2)(ii)

            	
              Disbursements
                made via wire transfer on behalf of an obligor or to an investor
                are made
                only by authorized personnel.

            	
              Servicer/Trustee

            
	
              1122(d)(2)(iii)

            	
              Advances
                of funds or guarantees regarding collections, cash flows or distributions,
                and any interest or other fees charged for such advances, are made,
                reviewed and approved as specified in the transaction
                agreements.

            	
              Servicer

            
	
              1122(d)(2)(iv)

            	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of overcollateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	
              Servicer/Trustee

            
	
              1122(d)(2)(v)

            	
              Each
                custodial account is maintained at a federally insured depository
                institution as set forth in the transaction agreements. For purposes
                of
                this criterion, “federally insured depository institution” with respect to
                a foreign financial institution means a foreign financial institution
                that
                meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                Act.

            	
              Servicer/Trustee

            
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	
              Servicer/Trustee

            
	
              1122(d)(2)(vii)

            	
              Reconciliations
                are prepared on a monthly basis for all asset-backed securities related
                bank accounts, including custodial accounts and related bank clearing
                accounts. These reconciliations are (A) mathematically accurate;
                (B)
                prepared within 30 calendar days after the bank statement cutoff
                date, or
                such other number of days specified in the transaction agreements;
                (C)
                reviewed and approved by someone other than the person who prepared
                the
                reconciliation; and (D) contain explanations for reconciling items.
                These
                reconciling items are resolved within 90 calendar days of their original
                identification, or such other number of days specified in the transaction
                agreements.

            	
              Servicer/Trustee
                

            
	
               

            	
              Investor
                Remittances and Reporting

            	 
	
              1122(d)(3)(i)

            	
              Reports
                to investors, including those to be filed with the Commission, are
                maintained in accordance with the transaction agreements and applicable
                Commission requirements. Specifically, such reports (A) are prepared
                in
                accordance with timeframes and other terms set forth in the transaction
                agreements; (B) provide information calculated in accordance with
                the
                terms specified in the transaction agreements; (C) are filed with
                the
                Commission as required by its rules and regulations; and (D) agree
                with
                investors’ or the trustee’s records as to the total unpaid principal
                balance and number of mortgage loans serviced by the
                Servicer.

            	
              Servicer/Trustee
                

            
	
              1122(d)(3)(ii)

            	
              Amounts
                due to investors are allocated and remitted in accordance with timeframes,
                distribution priority and other terms set forth in the transaction
                agreements.

            	
              Servicer/Trustee
                

            
	
              1122(d)(3)(iii)

            	
              Disbursements
                made to an investor are posted within two business days to the Servicer’s
                investor records, or such other number of days specified in the
                transaction agreements.

            	
              Servicer/Trustee
                

            
	
              1122(d)(3)(iv)

            	
              Amounts
                remitted to investors per the investor reports agree with cancelled
                checks, or other form of payment, or custodial bank
                statements.

            	
              Servicer/Trustee
                

            
	
               

            	
              Pool
                Asset Administration

            	 
	
              1122(d)(4)(i)

            	
              Collateral
                or security on mortgage loans is maintained as required by the transaction
                agreements or related mortgage loan documents.

            	
              Servicer/Trustee
                

            
	
              1122(d)(4)(ii)

            	
              Mortgage
                loan and related documents are safeguarded as required by the transaction
                agreements

            	
              Servicer/Trustee
                

            
	
              1122(d)(4)(iii)

            	
              Any
                additions, removals or substitutions to the asset pool are made,
                reviewed
                and approved in accordance with any conditions or requirements in
                the
                transaction agreements.

            	
              Trustee/Servicer
                

            
	
              1122(d)(4)(iv)

            	
              Payments
                on mortgage loans, including any payoffs, made in accordance with
                the
                related mortgage loan documents are posted to the Servicer’s obligor
                records maintained no more than two business days after receipt,
                or such
                other number of days specified in the transaction agreements, and
                allocated to principal, interest or other items (e.g., escrow) in
                accordance with the related mortgage loan documents.

            	
              Servicer

            
	
              1122(d)(4)(v)

            	
              The
                Servicer’s records regarding the mortgage loans agree with the Servicer’s
                records with respect to an obligor’s unpaid principal
                balance.

            	
              Servicer

            
	
              1122(d)(4)(vi)

            	
              Changes
                with respect to the terms or status of an obligor's mortgage loans
                (e.g.,
                loan modifications or re-agings) are made, reviewed and approved
                by
                authorized personnel in accordance with the transaction agreements
                and
                related pool asset documents.

            	
              Servicer

            
	
              1122(d)(4)(vii)

            	
              Loss
                mitigation or recovery actions (e.g., forbearance plans, modifications
                and
                deeds in lieu of foreclosure, foreclosures and repossessions, as
                applicable) are initiated, conducted and concluded in accordance
                with the
                timeframes or other requirements established by the transaction
                agreements.

            	
              Servicer

            
	
              1122(d)(4)(viii)

            	
              Records
                documenting collection efforts are maintained during the period a
                mortgage
                loan is delinquent in accordance with the transaction agreements.
                Such
                records are maintained on at least a monthly basis, or such other
                period
                specified in the transaction agreements, and describe the entity’s
                activities in monitoring delinquent mortgage loans including, for
                example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or
                unemployment).

            	
              Servicer

            
	
              1122(d)(4)(ix)

            	
              Adjustments
                to interest rates or rates of return for mortgage loans with variable
                rates are computed based on the related mortgage loan
                documents.

            	
              Servicer

            
	
              1122(d)(4)(x)

            	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts):
                (A) such
                funds are analyzed, in accordance with the obligor’s mortgage loan
                documents, on at least an annual basis, or such other period specified
                in
                the transaction agreements; (B) interest on such funds is paid, or
                credited, to obligors in accordance with applicable mortgage loan
                documents and state laws; and (C) such funds are returned to the
                obligor
                within 30 calendar days of full repayment of the related mortgage
                loans,
                or such other number of days specified in the transaction
                agreements.

            	
              Servicer

            
	
              1122(d)(4)(xi)

            	
              Payments
                made on behalf of an obligor (such as tax or insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the servicer at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements.

            	
              Servicer

            
	
              1122(d)(4)(xii)

            	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission.

            	
              Servicer

            
	
              1122(d)(4)(xiii)

            	
              Disbursements
                made on behalf of an obligor are posted within two business days
                to the
                obligor’s records maintained by the servicer, or such other number of days
                specified in the transaction agreements.

            	
              Servicer

            
	
              1122(d)(4)(xiv)

            	
              Delinquencies,
                charge-offs and uncollectible accounts are recognized and recorded
                in
                accordance with the transaction agreements.

            	
              Servicer

            
	
              1122(d)(4)(xv)

            	
              Any
                external enhancement or other support, identified in Item 1114(a)(1)
                through (3) or Item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements.

            	
              Trustee

            
	
               

            	
               

            	
               

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      Q

     

    ADDITIONAL
      FORM 10-D DISCLOSURE

     

    
      	
              Item
                on Form 10-D

            	
              Party
                Responsible 

            
	
              Item
                1: Distribution and Pool Performance Information

               

              Any
                information required by Item 1121 of Regulation AB which is NOT included
                on the Monthly Statement

            	
              Servicer/Trustee

            
	
              Item
                2: Legal Proceedings

               

              per
                Item 1117 of Regulation AB

            	
              (i)
                All parties to the Agreement (as to themselves), (ii) the Trustee
                and
                Servicer as to the issuing entity, (iii) the Depositor as to the
                sponsor,
                and each Originator (other than the Responsible Party) or any Regulation
                AB Item 1100(d)(1) party

            
	
              Item
                3: Sale of Securities and Use of Proceeds

            	
              Depositor

            
	
              Item
                4: Defaults Upon Senior Securities

            	
              Trustee

            
	
              Item
                5: Submission of Matters to a Vote of Security Holders

            	
              Depositor
                or the party to this Agreement submitting such matter to a vote of
                Certificateholders

            
	
              Item
                6: Significant Obligors of Pool Assets

            	
              N/A

            
	
              Item
                7: Significant Enhancement Provider Information

            	
              Depositor

            
	
              Item
                8: Other Information

            	
              Any
                party to the Agreement responsible for disclosure items on Form
                8-K

            
	
              Item
                9: Exhibits

            	
              Trustee

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      R

    

    ADDITIONAL
      FORM 10-K DISCLOSURE

    

    
      	
              Item
                on Form 10-K

            	
              Party
                Responsible 

            
	
              Item
                1B: Unresolved Staff Comments

            	
              Depositor

            
	
              Item
                9B: Other Information

            	
              Any
                party to the Agreement responsible for disclosure items on Form
                8-K

            
	
              Item
                15: Exhibits, Financial Statement Schedules

            	
              Trustee

              Depositor

            
	
              Additional
                Item:

              Disclosure
                per Item 1117 of Regulation AB

            	
              (i)
                All parties to the Agreement (as to themselves), (ii) the Trustee
                and
                Servicer as to the Trust, (iii) the Depositor as to the sponsor and
                each
                Originator (other than the Responsible Party), or any 1100(d)(1)
                party

            
	
              Additional
                Item:

              Disclosure
                per Item 1119 of Regulation AB

            	
              (i)
                All parties to the Agreement as to themselves, (ii) the Depositor
                as to
                the sponsor, or any derivative provider

            
	
              Additional
                Item:

              Disclosure
                per Item 1112(b) of Regulation AB

            	
              N/A

            
	
              Additional
                Item:

              Disclosure
                per Items 1114(b) and 1115(b) of Regulation AB

            	
              Depositor

            

    

    

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      S

     

    FORM
      8-K
      DISCLOSURE INFORMATION

     

    

    
      	
              Item
                on Form 8-K

            	
              Party
                Responsible 

            
	
              Item
                1.01- Entry into a Material Definitive Agreement

            	
              The
                party to this Agreement entering into such material definitive
                agreement

            
	
              Item
                1.02- Termination of a Material Definitive Agreement

            	
              The
                party to this Agreement requesting termination of a material definitive
                agreement

            
	
              Item
                1.03- Bankruptcy or Receivership

            	
              (i)
                All parties to the Agreement (as to themselves), (ii) the Trustee
                and
                Servicer as to the Trust, (iii) the Depositor as to the sponsor and
                each
                Originator (other than the Responsible Party), or any 1100(d)(1)
                party

            
	
              Item
                2.04- Triggering Events that Accelerate or Increase a Direct Financial
                Obligation or an Obligation under an Off-Balance Sheet
                Arrangement

            	
              Depositor/Trustee

            
	
              Item
                3.03- Material Modification to Rights of Security Holders

            	
              The
                party requesting such modification.

            
	
              Item
                5.03- Amendments of Articles of Incorporation or Bylaws; Change of
                Fiscal
                Year

            	
              Depositor

            
	
              Item
                6.01- Informational and Computational Material

            	
              Depositor

            
	
              Item
                6.02- Change of Servicer or Trustee

            	
              Servicer,
                Trustee

            
	
              Item
                6.03- Change in Credit Enhancement or External Support

            	
              Depositor/Trustee

            
	
              Item
                6.04- Failure to Make a Required Distribution

            	
              Trustee

            
	
              Item
                6.05- Securities Act Updating Disclosure

            	
              Depositor

            
	
              Item
                7.01- Regulation FD Disclosure

            	
              Depositor

            
	
              Item
                8.01

            	
              Depositor

            
	
              Item
                9.01

            	
              Depositor

            

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      T

     

    INTEREST
      RATE SWAP AGREEMENT

     

    

       

      ISDA®

       

      International
        Swap Dealers Association, Inc.

       

      MASTER
        AGREEMENT

       

      dated
        as
        of January 26, 2007

       

      
        	
                MORGAN
                  STANLEY CAPITAL SERVICES INC.

                 

                 

              	
                and

              	
                DEUTSCHE
                  BANK NATIONAL TRUST COMPANY, not individually, but solely as Trustee
                  on
                  behalf of the Supplemental Interest Trust with respect to Morgan
                  Stanley
                  ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through Certificates,
                  Series 2007-NC1

              

      

       

      have
        entered and/or anticipate entering into one or more transactions (each a
        “Transaction”) that are or will be governed by this Master Agreement, which
        includes the schedule (the “Schedule”), and the documents and other confirming
        evidence (each a “Confirmation”) exchanged between the parties confirming those
        Transactions.

       

        Accordingly,
        the parties agree as follows: —

       

      
        	1.  	
                Interpretation

              

      

       

      (a)  Definitions.
        The
        terms defined in Section 14 and in the Schedule will have the meanings therein
        specified for the purpose of this Master Agreement.

       

      (b)  Inconsistency.
        In the
        event of any inconsistency between the provisions of the Schedule and the
        other
        provisions of this Master Agreement, the Schedule will prevail. In the event
        of
        any inconsistency between the provisions of any Confirmation and this Master
        Agreement (including the Schedule), such Confirmation will prevail for the
        purpose of the relevant Transaction.

       

      (c)  Single
        Agreement.
        All
        Transactions are entered into in reliance on the fact that this Master Agreement
        and all Confirmations form a single agreement between the parties (collectively
        referred to as this “Agreement”), and the parties would not otherwise enter into
        any Transactions.

       

      
        	2.  	
                Obligations

              

      

       

      (a)  General
        Conditions.

       

      (i)  Each
        party will make each payment or delivery specified in each Confirmation to
        be
        made by it, subject to the other provisions of this Agreement.

       

      (ii)  Payments
        under this Agreement will be made on the due date for value on that date
        in the
        place of the account specified in the relevant Confirmation or otherwise
        pursuant to this Agreement, in freely transferable funds and in the manner
        customary for payments in the required currency. Where settlement is by delivery
        (that is, other than by payment), such delivery will be made for receipt
        on the
        due date in the manner customary for the relevant obligation unless otherwise
        specified in the relevant Confirmation or elsewhere in this
        Agreement.

       

      (iii)  Each
        obligation of each party under Section 2(a)(i) is subject to (1) the condition
        precedent that no Event of Default or Potential Event of Default with respect
        to
        the other party has occurred and is continuing, (2) the condition precedent
        that
        no Early Termination Date in respect of the relevant Transaction has occurred
        or
        been effectively designated and (3) each other applicable condition precedent
        specified in this Agreement.

       

      (b)  Change
        of Account.
        Either
        party may change its account for receiving a payment or delivery by giving
        notice to the other party at least five Local Business Days prior to the
        scheduled date for the payment or delivery to which such change applies unless
        such other party gives timely notice of a reasonable objection to such
        change.

       

      (c)  Netting.
        If on
        any date amounts would otherwise be payable:—

       

      (i)  in
        the
        same currency; and

       

      (ii)  in
        respect of the same Transaction,

       

      by
        each
        party to the other, then, on such date, each party’s obligation to make payment
        of any such amount will be automatically satisfied and discharged and, if
        the
        aggregate amount that would otherwise have been payable by one party exceeds
        the
        aggregate amount that would otherwise have been payable by the other party,
        replaced by an obligation upon the party by whom the larger aggregate amount
        would have been payable to pay to the other party the excess of the larger
        aggregate amount over the smaller aggregate amount.

       

      The
        parties may elect in respect of two or more Transactions that a net amount
        will
        be determined in respect of all amounts payable on the same date in the same
        currency in respect of such Transactions, regardless of whether such amounts
        are
        payable in respect of the same Transaction. The election may be made in the
        Schedule or a Confirmation by specifying that subparagraph (ii) above will
        not
        apply to the Transactions identified as being subject to the election, together
        with the starting date (in which case subparagraph (ii) above will not, or
        will
        cease to, apply to such Transactions from such date). This election may be
        made
        separately for different groups of Transactions and will apply separately
        to
        each pairing of Offices through which the parties make and receive payments
        or
        deliveries.

       

      (d)  Deduction
        or Withholding for Tax.

       

      (i)  Gross-Up.
        All
        payments under this Agreement will be made without any deduction or withholding
        for or on account of any Tax unless such deduction or withholding is required
        by
        any applicable law, as modified by the practice of any relevant governmental
        revenue authority, then in effect. If a party is so required to deduct or
        withhold, then that party (“X”) will:—

       

      (1)  promptly
        notify the other party (“Y”) of such requirement;

       

      (2)  pay
        to
        the relevant authorities the full amount required to be deducted or withheld
        (including the full amount required to be deducted or withheld from any
        additional amount paid by X to Y under this Section 2(d)) promptly upon the
        earlier of determining that such deduction or withholding is required or
        receiving notice that such amount has been assessed against Y;

       

      (3)  promptly
        forward to Y an official receipt (or a certified copy), or other documentation
        reasonably acceptable to Y, evidencing such payment to such authorities;
        and

       

      (4)  if
        such
        Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which
        Y is
        otherwise entitled under this Agreement, such additional amount as is necessary
        to ensure that the net amount actually received by Y (free and clear of
        Indemnifiable Taxes, whether assessed against X or Y) will equal the full
        amount
        Y would have received had no such deduction or withholding been required.
        However, X will not be required to pay any additional amount to Y to the
        extent
        that it would not be required to be paid but for:—

       

      (A)  the
        failure by Y to comply with or perform any agreement contained in Section
        4(a)(i), 4(a)(iii) or 4(d); or

       

      (B)  the
        failure of a representation made by Y pursuant to Section 3(f) to be accurate
        and true unless such failure would not have occurred but for (I) any action
        taken by a taxing authority, or brought in a court of competent jurisdiction,
        on
        or after the date on which a Transaction is entered into (regardless of whether
        such action is taken or brought with respect to a party to this Agreement)
        or
        (II) a Change in Tax Law.

       

      (ii)  Liability.
        If:
—

       

      (1)  X
        is
        required by any applicable law, as modified by the practice of any relevant
        governmental revenue authority, to make any deduction or withholding in respect
        of which X would not be required to pay an additional amount to Y under Section
        2(d)(i)(4);

       

      (2)  X
        does
        not so deduct or withhold; and

       

      (3)  a
        liability resulting from such Tax is assessed directly against X,

       

      then,
        except to the extent Y has satisfied or then satisfies the liability resulting
        from such Tax, Y will promptly pay to X the amount of such liability (including
        any related liability for interest, but including any related liability for
        penalties only if Y has failed to comply with or perform any agreement contained
        in Section 4(a)(i), 4(a)(iii) or 4(d)).

       

      (e)  Default
        Interest; Other Amounts.
        Prior
        to the occurrence or effective designation of an Early Termination Date in
        respect of the relevant Transaction, a party that defaults in the performance
        of
        any payment obligation will, to the extent permitted by law and subject to
        Section 6(c), be required to pay interest (before as well as after judgment)
        on
        the overdue amount to the other party on demand in the same currency as such
        overdue amount, for the period from (and including) the original due date
        for
        payment to (but excluding) the date of actual payment, at the Default Rate.
        Such
        interest will be calculated on the basis of daily compounding and the actual
        number of days elapsed. If, prior to the occurrence or effective designation
        of
        an Early Termination Date in respect o-f the relevant Transaction, a party
        defaults in the performance of any obligation required to be settled by
        delivery, it will compensate the other party on demand if and to the extent
        provided for in the relevant Confirmation or elsewhere in this
        Agreement.

       

      
        	3.  	
                Representations

              

      

       

      Each
        party represents to the other party (which representations will be deemed
        to be
        repeated by each party on each date on which a Transaction is entered into
        and,
        in the case of the representations in Section 3(f), at all times until the
        termination of this Agreement) that:—

       

      (a)  Basic
        Representations.

       

      (i)  Status.
        It is
        duly organised and validly existing under the laws of the jurisdiction of
        its
        organisation or incorporation and, if relevant under such laws, in good
        standing;

       

      (ii)  Powers.
        It has
        the power to execute this Agreement and any other documentation relating
        to this
        Agreement to which it is a party, to deliver this Agreement and any other
        documentation relating to this Agreement that it is required by this Agreement
        to deliver and to perform its obligations under this Agreement and any
        obligations it has under any Credit Support Document to which it is a party
        and
        has taken all necessary action to authorise such execution, delivery and
        performance;

       

      (iii)  No
        Violation or Conflict.
        Such
        execution, delivery and performance do not violate or conflict with any law
        applicable to it, any provision of its constitutional documents, any order
        or
        judgment of any court or other agency of government applicable to it or any
        of
        its assets or any contractual restriction binding on or affecting it or any
        of
        its assets;

       

      (iv)  Consents.
        All
        governmental and other consents that are required to have been obtained by
        it
        with respect to this Agreement or any Credit Support Document to which it
        is a
        party have been obtained and are in lull force and effect and all conditions
        of
        any such consents have been complied with; and

       

      (v)  Obligations
        Binding.
        Its
        obligations under this Agreement and any Credit Support Document to which
        it is
        a party constitute its legal, valid and binding obligations, enforceable
        in
        accordance with their respective terms (subject to applicable bankruptcy,
        reorganization, insolvency, moratorium or similar laws affecting creditors’
rights generally and subject, as to enforceability, to equitable principles
        of
        general application (regardless of whether enforcement is sought in a proceeding
        in equity or at law)).

       

      (b)  Absence
        of Certain Events.
        No
        Event of Default or Potential Event of Default or, to its knowledge, Termination
        Event with respect to it has occurred and is continuing and no such event
        or
        circumstance would occur as a result of its entering into or performing its
        obligations under this Agreement or any Credit Support Document to which
        it is a
        party.

       

      (c)  Absence
        of Litigation.
        There
        is not pending or, to its knowledge, threatened against it or any of its
        Affiliates any action, suit or proceeding at law or in equity or before any
        court, tribunal, governmental body, agency or official or any arbitrator
        that is
        likely to affect the legality, validity or enforceability against it of this
        Agreement or any Credit Support Document to which it is a party or its ability
        to perform its obligations under this Agreement or such Credit Support
        Document.

       

      (d)  Accuracy
        of Specified Information.
        All
        applicable information that is furnished in writing by or on behalf of it
        to the
        other party and is identified for the purpose of this Section 3(d) in the
        Schedule is, as of the date of the information, true, accurate and complete
        in
        every material respect.

       

      (e)  Payer
        Tax Representation.
        Each
        representation specified in the Schedule as being made by it for the purpose
        of
        this Section 3(e) is accurate and true.

       

      (f)  Payee
        Tax Representations.
        Each
        representation specified in the Schedule as being made by it for the purpose
        of
        this Section 3(f) is accurate and true.

       

      
        	4.  	
                Agreements

              

      

       

      Each
        party agrees with the other that, so long as either party has or may have
        any
        obligation under this Agreement or under any Credit Support Document to which
        it
        is a party:—

       

      (a)  Furnish
        Specified Information.
        It will
        deliver to the other party or, in certain cases under subparagraph (iii)
        below,
        to such government or taxing authority as the other party reasonably
        directs:—

       

      (i)  any
        forms, documents or certificates relating to taxation specified in the Schedule
        or any Confirmation;

       

      (ii)  any
        other
        documents specified in the Schedule or any Confirmation; and

       

      (iii)  upon
        reasonable demand by such other party, any form or document that may be required
        or reasonably requested in writing in order to allow such other party or
        its
        Credit Support Provider to make a payment under this Agreement or any applicable
        Credit Support Document without any deduction or withholding for or on account
        of any Tax or with such deduction or withholding at a reduced rate (so long
        as
        the completion, execution or submission of such form or document would not
        materially prejudice the legal or commercial position of the party in receipt
        of
        such demand), with any such form or document to be accurate and completed
        in a
        manner reasonably satisfactory to such other party and to be executed and
        to be
        delivered with any reasonably required certification,

       

      in
        each
        case by the date specified in the Schedule or such Confirmation or, if none
        is
        specified, as soon as reasonably practicable.

       

      (b)  Maintain
        Authorisations.
        It will
        use all reasonable efforts to maintain in full force and effect all consents
        of
        any governmental or other authority that are required to be obtained by it
        with
        respect to this Agreement or any Credit Support Document to which it is a
        party
        and will use all reasonable efforts to obtain any that may become necessary
        in
        the future.

       

      (c)  Comply
        with Laws.
        It will
        comply in all material respects with all applicable laws and orders to which
        it
        may be subject if failure so to comply would materially impair its ability
        to
        perform its obligations under this Agreement or an Credit Support Document
        to
        which it is a party.

       

      (d)  Tax
        Agreement.
        It will
        give notice of any failure of a representation made by it under Section 3(f)
        to
        be accurate and true promptly upon learning of such failure.

       

      (e)  Payment
        of Stamp Tax.
        Subject
        to Section 11, it will pay any Stamp Tax levied or imposed upon it or in
        respect
        of its execution or performance of this Agreement by a jurisdiction in which
        it
        is incorporated, organised, managed and controlled, or considered to have
        its
        seat, or in which a branch or office through which it is acting for the purpose
        of this Agreement is located (“Stamp Tax Jurisdiction”) and will indemnify the
        other party against any Stamp Tax levied or imposed upon the other party
        or in
        respect of the other party’s execution or performance of this Agreement by any
        such Stamp Tax Jurisdiction which is not also a Stamp Tax Jurisdiction with
        respect to the other party.

       

      
        	5.  	
                Events
                  of Default and Termination
                  Events

              

      

       

      (a)  Events
        of Default.
        The
        occurrence at any time with respect to a party or, if applicable, any Credit
        Support Provider of such party or any Specified Entity of such party of any
        of
        the following events constitutes an event of default (an “Event of Default”)
        with respect to such party:—

       

      (i)  Failure
        to Pay or Deliver.
        Failure
        by the party to make, when due, any payment under this Agreement or delivery
        under Section 2(a)(i) or 2(e) required to be made by it if such failure is
        not
        remedied on or before the third Local Business Day after notice of such failure
        is given to the party;

       

      (ii)  Breach
        of Agreement.
        Failure
        by the party to comply with or perform any agreement or obligation (other
        than
        an obligation to make any payment under this Agreement or delivery under
        Section
        2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement
        or
        obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with
        or
        performed by the party in accordance with this Agreement if such failure
        is not
        remedied on or before the thirtieth day after notice of such failure is given
        to
        the party;

       

      (iii)  Credit
        Support Default.

       

      (1)  Failure
        by the party or any Credit Support Provider of such party to comply with
        or
        perform any agreement or obligation to be complied with or performed by it
        in
        accordance with any Credit Support Document if such failure is continuing
        after
        any applicable grace period has elapsed;

       

      (2)  the
        expiration or termination of such Credit Support Document or the failing
        or
        ceasing of such Credit Support Document to be in full force and effect for
        the
        purpose of this Agreement (in either case other than in accordance with its
        terms) prior to the satisfaction of all obligations of such party under each
        Transaction to which such Credit Support Document relates without the written
        consent of the other party; or

       

      (3)  the
        party
        or such Credit Support Provider disaffirms, disclaims, repudiates or rejects,
        in
        whole or in part, or challenges the validity of such Credit Support
        Document;

       

      (iv)  Misrepresentation.
        A
        representation (other than a representation under Section 3(e) or (f)) made
        or
        repeated or deemed to have been made or repeated by the party or any Credit
        Support Provider of such party in this Agreement or any Credit Support Document
        proves to have been incorrect or misleading in any material respect when
        made or
        repeated or deemed to have been made or repeated;

       

      (v)  Default
        under Specified Transaction.
        The
        party, any Credit Support Provider of such party or any applicable Specified
        Entity of such party (1) defaults under a Specified Transaction and, after
        giving effect to any applicable notice requirement or grace period, there
        occurs
        a liquidation of, an acceleration of obligations under, or an early termination
        of, that Specified Transaction, (2) defaults, after giving effect to any
        applicable notice requirement or grace period, in making any payment or delivery
        due on the last payment, delivery or exchange date of, or any payment on
        early
        termination of, a Specified Transaction (or such default continues for at
        least
        three Local Business Days if there is no applicable notice requirement or
        grace
        period) or (3) disaffirms, disclaims, repudiates or rejects, in whole or
        in
        part, a Specified Transaction (or such action is taken by any person or entity
        appointed or empowered to operate it or act on its behalf);

       

      (vi)  Cross
        Default.
        If
“Cross Default” is specified in the Schedule as applying to the party, the
        occurrence or existence of (1) a default, event of default or other similar
        condition or event (however described) in respect of such party, any Credit
        Support Provider of such party or any applicable Specified Entity of such
        party
        under one or more agreements or instruments relating to Specified Indebtedness
        of any of them (individually or collectively) in an aggregate amount of not
        less
        than the applicable Threshold Amount (as specified in the Schedule) which
        has
        resulted in such Specified Indebtedness becoming, or becoming capable at
        such
        time of being declared, due and payable under such agreements or instruments,
        before it would otherwise have been due and payable or (2) a default by such
        party, such Credit Support Provider or such Specified Entity (individually
        or
        collectively) in making one or more payments on the due date thereof in an
        aggregate amount of not less than the applicable Threshold Amount under such
        agreements or instruments (after giving effect to any applicable notice
        requirement or grace period);

       

      (vii)  Bankruptcy.
        The
        party, any Credit Support Provider of such party or any applicable Specified
        Entity of such party:—

       

      (1)
        is
        dissolved (other than pursuant to a consolidation, amalgamation or merger);
        (2)
        becomes insolvent or is unable to pay its debts or fails or admits in writing
        its inability generally to pay its debts as they become due; (3) makes a
        general
        assignment, arrangement or composition with or for the benefit of its creditors;
        (4) institutes or has instituted against it a proceeding seeking a judgment
        of
        insolvency or bankruptcy or any other relief under any bankruptcy or insolvency
        law or other similar law affecting creditors’ rights, or a petition is presented
        for its winding-up or liquidation, and, in the case of any such proceeding
        or
        petition instituted or presented against it, such proceeding or petition
        (A)
        results in a judgment of insolvency or bankruptcy or the entry of an order
        for
        relief or the making of an order for its winding-up or liquidation or (B)
        is not
        dismissed, discharged, stayed or restrained in each case within 30 days of
        the
        institution or presentation thereof; (5) has a resolution passed for its
        winding-up, official management or liquidation (other than pursuant to a
        consolidation, amalgamation or merger); (6) seeks or becomes subject to the
        appointment of an administrator, provisional liquidator, conservator, receiver,
        trustee, custodian or other similar official for it or for all or substantially
        all its assets; (7) has a secured party take possession of all or substantially
        all its assets or has a distress, execution, attachment, sequestration or
        other
        legal process levied, enforced or sued on or against all or substantially
        all
        its assets and such secured party maintains possession, or any such process
        is
        not dismissed, discharged, stayed or restrained, in each case within 30 days
        thereafter; (8) causes or is subject to any event with respect to it which,
        under the applicable laws of any jurisdiction, has an analogous effect to
        any of
        the events specified in clauses (1) to (7) (inclusive); or (9) takes any
        action
        in furtherance of, or indicating its consent to, approval of, or acquiescence
        in, any of the foregoing acts; or

       

      (viii)  Merger
        Without Assumption.
        The
        party or any Credit Support Provider of such party consolidates or amalgamates
        with, or merges with or into, or transfers all or substantially all its assets
        to, another entity and, at the time of such consolidation, amalgamation,
        merger
        or transfer:—

       

      (1)  the
        resulting, surviving or transferee entity fails to assume all the obligations
        of
        such party or such Credit Support Provider under this Agreement or any Credit
        Support Document to which it or its predecessor was a party by operation
        of law
        or pursuant to an agreement reasonably satisfactory to the other party to
        this
        Agreement; or

       

      (2)  the
        benefits of any Credit Support Document fail to extend (without the consent
        of
        the other party) to the performance by such resulting, surviving or transferee
        entity of its obligations under this Agreement.

       

      (b)  Termination
        Events.
        The
        occurrence at any time with respect to a party or, if applicable, any Credit
        Support Provider of such party or any Specified Entity of such party of any
        event specified below constitutes an Illegality if the event is specified
        in (i)
        below, a Tax Event if the event is specified in (ii) below or a Tax Event
        Upon
        Merger if the event is specified in (iii) below, and, if specified to be
        applicable, a Credit Event Upon Merger if the event is specified pursuant
        to
        (iv) below or an Additional Termination Event if the event is specified pursuant
        to (v) below:—

       

      (i)  Illegality.
        Due to
        the adoption of, or any change in, any applicable law after the date on which
        a
        Transaction is entered into, or due to the promulgation of, or any change
        in,
        the interpretation by any court, tribunal or regulatory authority with competent
        jurisdiction of any applicable law after such date, it becomes unlawful (other
        than as a result of a breach by the party of Section 4(b)) for such party
        (which
        will be the Affected Party): —

       

      (1)  to
        perform any absolute or contingent obligation to make a payment or delivery
        or
        to receive a payment or delivery in respect of such Transaction or to comply
        with any other material provision of this Agreement relating to such
        Transaction; or

       

      (2)  to
        perform, or for any Credit Support Provider of such party to perform, any
        contingent or other obligation which the party (or such Credit Support Provider)
        has under any Credit Support Document relating to such Transaction;

       

      (ii)  Tax
        Event.
        Due to
        (x) any action taken by a taxing authority, or brought in a court of competent
        jurisdiction, on or after the date on which a Transaction is entered into
        (regardless of whether such action is taken or brought with respect to a
        party
        to this Agreement) or (y) a Change in Tax Law, the party (which will be the
        Affected Party) will, or there is a substantial likelihood that it will,
        on the
        next succeeding Scheduled Payment Date (1) be required to pay to the other
        party
        an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4)
        (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2)
        receive a payment from which an amount is required to be deducted or withheld
        for or on account of a Tax (except in respect of interest under Section 2(e),
        6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect
        of
        such Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A)
        or (B));

       

      (iii)  Tax
        Event Upon Merger.
        The
        party (the “Burdened Party”) on the next succeeding Scheduled Payment Date will
        either (1) be required to pay an additional amount in respect of an
        Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest
        under
        Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount
        has been deducted or withheld for or on account of any Indemnifiable Tax
        in
        respect of which the other party is not required to pay an additional amount
        (other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as
        a
        result of a party consolidating or amalgamating with, or merging with or
        into,
        or transferring all or substantially all its assets to, another entity (which
        will be the Affected Party) where such action does not constitute an event
        described in Section 5(a)(viii);

       

      (iv)  Credit
        Event Upon Merger.
        If
“Credit Event Upon Merger” is specified in the Schedule as applying to the
        party, such party (“X”), any Credit Support Provider of X or any applicable
        Specified Entity of X consolidates or amalgamates with, or merges with or
        into,
        or transfers all or substantially all its assets to, another entity and such
        action does not constitute an event described in Section 5(a)(viii) but the
        creditworthiness of the resulting, surviving or transferee entity is materially
        weaker than that of X, such Credit Support Provider or such Specified Entity,
        as
        the case may be, immediately prior to such action (and, in such event, X
        or its
        successor or transferee, as appropriate, will be the Affected Party);
        or

       

      (v)  Additional
        Termination Event.
        If any
“Additional Termination Event” is specified in the Schedule or any Confirmation
        as applying, the occurrence of such event (and, in such event, the Affected
        Party or Affected Parties shall be as specified for such Additional Termination
        Event in the Schedule or such Confirmation).

       

      (c)  Event
        of Default and Illegality.
        If an
        event or circumstance which would otherwise constitute or give rise to an
        Event
        of Default also constitutes an Illegality, it will be treated as an Illegality
        and will not constitute an Event of Default.

       

      
        	6.  	
                Early
                  Termination

              

      

       

      (a)  Right
        to Terminate Following Event of Default.
        If at
        any time an Event of Default with respect to a party (the “Defaulting Party”)
        has occurred and is then continuing, the other party (the “Non-defaulting
        Party”) may, by not more than 20 days notice to the Defaulting Party specifying
        the relevant Event of Default, designate a day not earlier than the day such
        notice is effective as an Early Termination Date in respect of all outstanding
        Transactions. If, however, “Automatic Early Termination” is specified in the
        Schedule as applying to a party, then an Early Termination Date in respect
        of
        all outstanding transactions will occur immediately upon the occurrence with
        respect to such party of an Event of Default specified in Section 5(a)(vii)(1),
        (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time
        immediately preceding the institution of the relevant proceeding or the
        presentation of the relevant petition upon the occurrence with respect to
        such
        party of an Event of Default specified in Section 5(a)(vii)(4) or, to the
        extent
        analogous thereto, (8).

       

      (b)  Right
        to Terminate Following Termination Event.

       

      (i)  Notice.
        If a
        Termination Event occurs, an Affected Party will, promptly upon becoming
        aware
        of it, notify the other party, specifying the nature of that Termination
        Event
        and each Affected Transaction and will also give such other information about
        that Termination Event as the other party may reasonably require.

       

      (ii)  Transfer
        to Avoid Termination Event.
        If
        either an Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there
        is
        only one Affected Party, or if a Tax Event Upon Merger occurs and the Burdened
        Party is the Affected Party, the Affected Party will, as a condition to its
        right to designate an Early Termination Date under Section 6(b)(iv), use
        all
        reasonable efforts (which will not require such party to incur a loss, excluding
        immaterial, incidental expenses) to transfer within 20 days after it gives
        notice under Section 6(b)(i) all its rights and obligations under this Agreement
        in respect of the Affected Transactions to another of its Offices or Affiliates
        so that such Termination Event ceases to exist.

       

      If
        the
        Affected Party is not able to make such a transfer it will give notice to
        the
        other party to that effect within such 20 day period, whereupon the other
        party
        may effect such a transfer within 30 days after the notice is given under
        Section 6(b)(i).

       

      Any
        such
        transfer by a party under this Section 6(b)(ii) will be subject to and
        conditional upon the prior written consent of the other party, which consent
        will not be withheld if such other party’s policies in effect at such time would
        permit it to enter into transactions with the transferee on the terms
        proposed.

       

      (iii)  Two
        Affected Parties.
        If an
        Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there are two
        Affected Parties, each party will use all reasonable efforts to reach agreement
        within 30 days after notice thereof is given under Section 6(b)(i) on action
        to
        avoid that Termination Event.

       

      (iv)  Right
        to Terminate.
        If:
—

       

      (1)  a
        transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii),
        as the
        case may be, has not been effected with respect to all Affected Transactions
        within 30 days after an Affected Party gives notice under Section 6(b)(i);
        or

       

      (2)  an
        Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional
        Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened
        Party is not the Affected Party,

       

      either
        party in the case of an Illegality, the Burdened Party in the case of a Tax
        Event Upon Merger, any Affected Party in the case of a Tax Event or an
        Additional Termination Event if there is more than one Affected Party, or
        the
        party which is not the Affected Party in the case of a Credit Event Upon
        Merger
        or an Additional Termination Event if there is only one Affected Party may,
        by
        not more than 20 days notice to the other party and provided that the relevant
        Termination Event is then continuing, designate a day not earlier than the
        day
        such notice is effective as an Early Termination Date in respect of all Affected
        Transactions.

       

      (c)  Effect
        of Designation.

       

      (i)  If
        notice
        designating an Early Termination Date is given under Section 6(a) or (b),
        the
        Early Termination Date will occur on the date so designated, whether or not
        the
        relevant Event of Default or Termination Event is then continuing.

       

      (ii)  Upon
        the
        occurrence or effective designation of an Early Termination Date, no further
        payments or deliveries under Section 2(a)(i) or 2(e) in respect of the
        Terminated Transactions will be required to be made, but without prejudice
        to
        the other provisions of this Agreement. The amount, if any, payable in respect
        of an Early Termination Date shall be determined pursuant to Section
        6(e).

       

      (d)  Calculations.

       

      (i)  Statement.
        On or
        as soon as reasonably practicable following the occurrence of an Early
        Termination Date, each party will make the calculations on its part, if any,
        contemplated by Section 6(e) and will provide to the other party a statement
        (1)
        showing, in reasonable detail, such calculations (including all relevant
        quotations and specifying any amount payable under Section 6(e)) and (2)
        giving
        details of the relevant account to which any amount payable to it is to be
        paid.
        In the absence of written confirmation from the source of a quotation obtained
        in determining a Market Quotation, the records of the party obtaining such
        quotation will be conclusive evidence of the existence and accuracy of such
        quotation.

       

      (ii)  Payment
        Date.
        An
        amount calculated as being due in respect of any Early Termination Date under
        Section 6(e) will be payable on the day that notice of the amount payable
        is
        effective (in the case of an Early Termination Date which is designated or
        occurs as a result of an Event of Default) and on the day which is two Local
        Business Days after the day on which notice of the amount payable is effective
        (in the case of an Early Termination Date which is designated as a result
        of a
        Termination Event). Such amount will be paid together with (to the extent
        permitted under applicable law) interest thereon (before as well as after
        judgment) in the Termination Currency, from (and including) the relevant
        Early
        Termination Date to (but excluding) the date such amount is paid, at the
        Applicable Rate. Such interest will be calculated on the basis of daily
        compounding and the actual number of days elapsed.

       

      (e)  Payments
        on Early Termination.
        If an
        Early Termination Date occurs, the following provisions shall apply based
        on the
        parties’ election in the Schedule of a payment measure, either “Market
        Quotation” or “Loss”, and a payment method, either the “First Method” or the
“Second Method”. If the parties fail to designate a payment measure or payment
        method in the Schedule, it will be deemed that “Market Quotation” or the “Second
        Method”, as the case may be, shall apply. The amount, if any, payable in respect
        of an Early Termination Date and determined pursuant to this Section will
        be
        subject to any Set-off.

       

      (i)  Events
        of Default.
        If the
        Early Termination Date results from an Event of Default: —

       

      (1)  First
        Method and Market Quotation.
        If the
        First Method and Market Quotation apply, the Defaulting Party will pay to
        the
        Non-defaulting Party the excess, if a positive number, of (A) the sum of
        the
        Settlement Amount (determined by the Non-defaulting Party) in respect of
        the
        Terminated Transactions and the Termination Currency Equivalent of the Unpaid
        Amounts owing to the Non-defaulting Party over (B) the Termination Currency
        Equivalent of the Unpaid Amounts owing to the Defaulting Party.

       

      (2)  First
        Method and Loss.
        If the
        First Method and Loss apply, the Defaulting Party will pay to the Non-defaulting
        Party, if a positive number, the Non-Defaulting Party’s Loss in respect of this
        Agreement.

       

      (3)  Second
        Method and Market Quotation.
        If the
        Second Method and Market Quotation apply, an amount will be payable equal
        to (A)
        the sum of the Settlement Amount (determined by the Non-defaulting Party)
        in
        respect of the Terminated Transactions and the Termination Currency Equivalent
        of the Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination
        Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party.
        If that
        amount is a positive number, the Defaulting Party will pay it to the
        Non-defaulting Party; if it is a negative number, the Non-defaulting Party
        will
        pay the absolute value of that amount to the Defaulting Party.

       

      (4)  Second
        Method and Loss.
        If the
        Second Method and Loss apply, an amount will be payable equal to the
        Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a
        positive number, the Defaulting Party will pay it to the Non-defaulting Party;
        if it is a negative number, the Non-defaulting Party will pay the absolute
        value
        of that amount to the Defaulting Party.

       

      (ii)  Termination
        Events.
        If the
        Early Termination Date results from a Termination Event: —

       

      (1)  One
        Affected Party.
        If
        there is one Affected Party, the amount payable will be determined in accordance
        with Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4),
        if
        Loss applies, except that, in either case, references to the Defaulting Party
        and to the Non-defaulting Party will be deemed to be references to the Affected
        Party and the party which is not the Affected Party, respectively, and, if
        Loss
        applies and fewer than all the Transactions are being terminated, Loss shall
        be
        calculated in respect of all Terminated Transactions.

       

      (2)  Two
        Affected Parties.
        If
        there are two Affected Parties: —

       

      (A)  if
        Market
        Quotation applies, each party will determine a Settlement Amount in respect
        of
        the Terminated Transactions, and an amount will be payable equal to (I) the
        sum
        of (a) one-half of the difference between the Settlement Amount of the party
        with the higher Settlement Amount (“X”) and the Settlement Amount of the party
        with the lower Settlement Amount (“Y”) and (b) the Termination Currency
        Equivalent of the Unpaid Amounts owing to X less (II) the Termination Currency
        Equivalent of the Unpaid Amounts owing to Y; and

       

      (B)  if
        Loss
        applies, each party will determine its Loss in respect of this Agreement
        (or, if
        fewer than all the Transactions are being terminated, in respect of all
        Terminated Transactions) and an amount will be payable equal to one-half
        of the
        difference between the Loss of the party with the higher Loss (“X”) and the Loss
        of the party with the lower Loss (“Y”).

       

      If
        the
        amount payable is a positive number, Y will pay it to X; if it is a negative
        number, X will pay the absolute value of that amount to Y.

       

      (iii)  Adjustment
        for Bankruptcy.
        In
        circumstances where an Early Termination Date occurs because “Automatic Early
        Termination” applies in respect of a party, the amount determined under this
        Section 6(e) will be subject to such adjustments as are appropriate and
        permitted by law to reflect any payments or deliveries made by one party
        to the
        other under this Agreement (and retained by such other party) during the
        period
        from the relevant Early Termination Date to the date for payment determined
        under Section 6(d)(ii).

       

      (iv)  Pre-Estimate.
        The
        parties agree that if Market Quotation applies an amount recoverable under
        this
        Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such
        amount
        is payable for the loss of bargain and the loss of protection against future
        risks and except as otherwise provided in this Agreement neither party will
        be
        entitled to recover any additional damages as a consequence of such
        losses.

       

      
        	7.  	
                Transfer

              

      

       

      Subject
        to Section 6(b)(ii), neither this Agreement nor any interest or obligation
        in or
        under this Agreement may be transferred (whether by way of security or
        otherwise) by either party without the prior written consent of the other
        party,
        except that: —

       

      (a)  a
        party
        may make such a transfer of this Agreement pursuant to a consolidation or
        amalgamation with, or merger with or into, or transfer of all or substantially
        all its assets to, another entity (but without prejudice to any other right
        or
        remedy under this Agreement); and

       

      (b)  a
        party
        may make such a transfer of all or any part of its interest in any amount
        payable to it from a Defaulting Party under Section 6(e).

       

      Any
        purported transfer that is not in compliance with this Section will be
        void.

       

      
        	8.  	
                Contractual
                  Currency

              

      

       

      (a)  Payment
        in the Contractual Currency.
        Each
        payment under this Agreement will be made in the relevant currency specified
        in
        this Agreement for that payment (the “Contractual Currency”). To the extent
        permitted by applicable law, any obligation to make payments under this
        Agreement in the Contractual Currency will not be discharged or satisfied
        by any
        tender in any currency other than the Contractual Currency, except to the
        extent
        such tender results in the actual receipt by the party to which payment is
        owed,
        acting in a reasonable manner and in good faith in converting the currency
        so
        tendered into the Contractual Currency, of the full amount in the Contractual
        Currency of all amounts payable in respect of this Agreement. If for any
        reason
        the amount in the Contractual Currency so received falls short of the amount
        in
        the Contractual Currency payable in respect of this Agreement, the party
        required to make the payment will, to the extent permitted by applicable
        law,
        immediately pay such additional amount in the Contractual Currency as may
        be
        necessary to compensate for the shortfall. If for any reason the amount in
        the
        Contractual Currency so received exceeds the amount in the Contractual Currency
        payable in respect of this Agreement, the party receiving the payment will
        refund promptly the amount of such excess.

       

      (b)  Judgments.
        To the
        extent permitted by applicable law, if any judgment or order expressed in
        a
        currency other than the Contractual Currency is rendered (i) for the payment
        of
        any amount owing in respect of this Agreement, (ii) for the payment of any
        amount relating to any early termination in respect of this Agreement or
        (iii)
        in respect of a judgment or order of another court for the payment of any
        amount
        described in (i) or (ii) above, the party seeking recovery, after recovery
        in
        full of the aggregate amount to which such party is entitled pursuant to
        the
        judgment or order, will be entitled to receive immediately from the other
        party
        the amount of any shortfall of the Contractual Currency received by such
        party
        as a consequence of sums paid in such other currency and will refund promptly
        to
        the other party any excess of the Contractual Currency received by such party
        as
        a consequence of sums paid in such other currency if such shortfall or such
        excess arises or results from any variation between the rate of exchange
        at
        which the Contractual Currency is converted into the currency of the judgment
        or
        order for the purposes of such judgment or order and the rate of exchange
        at
        which such party is able, acting in a reasonable manner and in good faith
        in
        converting the currency received into the Contractual Currency, to purchase
        the
        Contractual Currency with the amount of the currency of the judgment or order
        actually received by such party. The term “rate of exchange” includes, without
        limitation, any premiums and costs of exchange payable in connection with
        the
        purchase of or conversion into the Contractual Currency.

       

      (c)  Separate
        Indemnities.
        To the
        extent permitted by applicable law, these indemnities constitute separate
        and
        independent obligations from the other obligations in this Agreement, will
        be
        enforceable as separate and independent causes of action, will apply
        notwithstanding any indulgence granted by the party to which any payment
        is owed
        and will not be affected by judgment being obtained or claim or proof being
        made
        for any other sums payable in respect of this Agreement.

       

      (d)  Evidence
        of Loss.
        For the
        purpose of this Section 8, it will be sufficient for a party to demonstrate
        that
        it would have suffered a loss had an actual exchange or purchase been
        made.

       

      
        	9.  	
                Miscellaneous

              

      

       

      (a)  Entire
        Agreement.
        This
        Agreement constitutes the entire Agreement and understanding of the parties
        with
        respect to its subject matter and supersedes all oral communication and prior
        writings with respect thereto.

       

      (b)  Amendments.
        No
        amendment, modification or waiver in respect of this Agreement will be effective
        unless in writing (including a writing evidenced by a facsimile transmission)
        and executed by each of the parties or confirmed by an exchange of telexes
        or
        electronic messages on an electronic messaging system.

       

      (c)  Survival
        of Obligations.
        Without
        prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the parties
        under this Agreement will survive the termination of any
        Transaction.

       

      (d)  Remedies
        Cumulative.
        Except
        as provided in this Agreement, the rights, powers, remedies and privileges
        provided in this Agreement are cumulative and not exclusive of any rights,
        powers, remedies and privileges provided by law.

       

      (e)  Counterparts
        and Confirmations.

       

      (i)  This
        Agreement (and each amendment, modification and waiver in respect of it)
        may be
        executed and delivered in counterparts (including by facsimile transmission),
        each of which will be deemed an original.

       

      (ii)  The
        parties intend that they are legally bound by the terms of each Transaction
        from
        the moment they agree to those terms (whether orally or otherwise). A
        Confirmation shall be entered into as soon as practicable and may be executed
        and delivered in counterparts (including by facsimile transmission) or be
        created by an exchange of telexes or by an exchange of electronic messages
        on an
        electronic messaging system, which in each case will be sufficient for all
        purposes to evidence a binding supplement to this Agreement. The parties
        will
        specify therein or through another effective means that any such counterpart,
        telex or electronic message constitutes a Confirmation.

       

      (f)  No
        Waiver of Rights.
        A
        failure or delay in exercising any right, power or privilege in respect of
        this
        Agreement will not be presumed to operate as a waiver, and a single or partial
        exercise of any right, power or privilege will not be presumed to preclude
        any
        subsequent or further exercise, of that right, power or privilege or the
        exercise of any other right, power or privilege.

       

      (g)  Headings.
        The
        headings used in this Agreement are for convenience of reference only and
        are
        not to affect the construction of or to be taken into consideration in
        interpreting this Agreement.

       

      
        	10.  	
                Offices;
                  Multibranch Parties

              

      

       

      (a)  If
        Section 10(a) is specified in the Schedule as applying, each party that enters
        into a Transaction through an Office other than its head or home office
        represents to the other party that, notwithstanding the place of booking
        office
        or jurisdiction of incorporation or organisation of such party, the obligations
        of such party are the same as if it had entered into the Transaction through
        its
        head or home office. This representation will be deemed to be repeated by
        such
        party on each date on which a Transaction is entered into.

       

      (b)  Neither
        party may change the Office through which it makes and receives payments
        or
        deliveries for the purpose of a Transaction without the prior written consent
        of
        the other party.

       

      (c)  If
        a
        party is specified as a Multibranch Party in the Schedule, such Multibranch
        Party may make and receive payments or deliveries under any Transaction through
        any Office listed in the Schedule, and the Office through which it makes
        and
        receives payments or deliveries with respect to a Transaction will be specified
        in the relevant Confirmation.

       

      
        	11.  	
                Expenses

              

      

       

      A
        Defaulting Party will, on demand, indemnify and hold harmless the other party
        for and against all reasonable out-of-pocket expenses, including legal fees
        and
        Stamp Tax, incurred by such other party by reason of the enforcement and
        protection of its rights under this Agreement or any Credit Support Document
        to
        which the Defaulting Party is a party or by reason of the early termination
        of
        any Transaction, including, but not limited to, costs of
        collection.

       

      
        	12.  	
                Notices

              

      

       

      (a)  Effectiveness.
        Any
        notice or other communication in respect of this Agreement may be given in
        any
        manner set forth below (except that a notice or other communication under
        Section 5 or 6 may not be given by facsimile transmission or electronic
        messaging system) to the address or number or in accordance with the electronic
        messaging system details provided (see the Schedule) and will be deemed
        effective as indicated:—

       

      (i)  if
        in
        writing and delivered in person or by courier, on the date it is
        delivered;

       

      (ii)  if
        sent
        by telex, on the date the recipient’s answerback is received;

       

      (iii)  if
        sent
        by facsimile transmission, on the date that transmission is received by a
        responsible employee of the recipient in legible form (it being agreed that
        the
        burden of proving receipt will be on the sender and will not be met by a
        transmission report generated by the sender’s facsimile machine);

       

      (iv)  if
        sent
        by certified or registered mail (airmail, if overseas) or the equivalent
        (return
        receipt requested), on the date that mail is delivered or its delivery is
        attempted; or

       

      (v)  if
        sent
        by electronic messaging system, on the date that electronic message is
        received,

       

      unless
        the date of that delivery (or attempted delivery) or that receipt, as
        applicable, is not a Local Business Day or that communication is delivered
        (or
        attempted) or received, as applicable, after the close of business on a Local
        Business Day, in which case that communication shall be deemed given and
        effective on the first following day that is a Local Business Day.

       

      (b)  Change
        of Addresses.
        Either
        party may by notice to the other change the address, telex or facsimile number
        or electronic messaging system details at which notices or other communications
        are to be given to it.

       

      
        	13.  	
                Governing
                  Law and Jurisdiction

              

      

       

      (a)  Governing
        Law.
        This
        Agreement will be governed by and construed in accordance with the law specified
        in the Schedule.

       

      (b)  Jurisdiction.
        With
        respect to any suit, action or proceedings relating to this Agreement
        (“Proceedings”), each party irrevocably:—

       

      (i)  submits
        to the jurisdiction of the English courts, if this Agreement is expressed
        to be
        governed by English law, or to the non-exclusive jurisdiction of the courts
        of
        the State of New York and the United States District Court located in the
        Borough of Manhattan in New York City, if this Agreement is expressed to
        be
        governed by the laws of the State of New York; and

       

      (ii)  waives
        any objection which it may have at any time to the laying of venue of any
        Proceedings brought in any such court, waives any claim that such Proceedings
        have been brought in an inconvenient forum and further waives the right to
        object, with respect to such Proceedings, that such court does not have any
        jurisdiction over such party.

       

      Nothing
        in this Agreement precludes either party from bringing Proceedings in any
        other
        jurisdiction (outside, if this Agreement is expressed to be governed by English
        law, the Contracting States, as defined in Section 1(3) of the Civil
        Jurisdiction and Judgments Act 1982 or any modification, extension or
        re-enactment thereof for the time being in force) nor will the bringing of
        Proceedings in any one or more jurisdictions preclude the bringing of
        Proceedings in any other jurisdiction.

       

      (c)  Service
        of Process.
        Each
        party irrevocably appoints the Process Agent (if any) specified opposite
        its
        name in the Schedule to receive, for it and on its behalf, service of process
        in
        any Proceedings. If for any reason any party’s Process Agent is unable to act as
        such, such party will promptly notify the other party and within 30 days
        appoint
        a substitute process agent acceptable to the other party. The parties
        irrevocably consent to service of process given in the manner provided for
        notices in Section 12. Nothing in this Agreement will affect the right of
        either
        party to serve process in any other manner permitted by law.

       

      (d)  Waiver
        of Immunities.
        Each
        party irrevocably waives, to the fullest extent permitted by applicable law,
        with respect to itself and its revenues and assets (irrespective of their
        use or
        intended use), all immunity on the grounds of sovereignty or other similar
        grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief by way
        of
        injunction, order for specific performance or for recovery of property, (iv)
        attachment of its assets (whether before or after judgment) and (v) execution
        or
        enforcement of any judgment to which it or its revenues or assets might
        otherwise be entitled in any Proceedings in the courts of any jurisdiction
        and
        irrevocably agrees, to the extent permitted by applicable law, that it will
        not
        claim any such immunity in any Proceedings.

       

      
        	14.  	
                Definitions

              

      

       

      As
        used
        in this Agreement:—

       

      “Additional
        Termination Event”
has
        the
        meaning specified in Section 5(b).

       

      “Affected
        Party”
has
        the
        meaning specified in Section 5(b).

       

      “Affected
        Transactions”
means
        (a) with respect to any Termination Event consisting of an Illegality, Tax
        Event
        or Tax Event Upon Merger, all Transactions affected by the occurrence of
        such
        Termination Event and (b) with respect to any other Termination Event, all
        Transactions.

       

      “Affiliate”
means,
        subject to the Schedule, in relation to any person, any entity controlled,
        directly or indirectly, by the person, any entity that controls, directly
        or
        indirectly, the person or any entity directly or indirectly under common
        control
        with the person. For this purpose, “control” of any entity or person means
        ownership of a majority of the voting power of the entity or
        person.

       

        “Applicable
        Rate”
        means:—

       

      (a)  in
        respect of obligations payable or deliverable (or which would have been but
        for
        Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

       

      (b)  in
        respect of an obligation to pay an amount under Section 6(e) of either party
        from and after the date (determined in accordance with Section 6(d)(ii))
        on
        which that amount is payable, the Default Rate;

       

      (c)  in
        respect of all other obligations payable or deliverable (or which would have
        been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
        Rate;
        and

       

      (d)  in
        all
        other cases, the Termination Rate.

       

      “Burdened
        Party”
has
        the
        meaning specified in Section 5(b).

       

      “Change
        in Tax Law”
means
        the enactment, promulgation, execution or ratification of, or any change
        in or
        amendment to, any law (or in the application or official interpretation of
        any
        law) that occurs on or after the date on which the relevant Transaction is
        entered into.

       

      “consent”
        includes a consent, approval, action, authorisation, exemption, notice, filing,
        registration or exchange control consent.

       

      “Credit
        Event Upon Merger”
has
        the
        meaning specified in Section 5(b).

       

      “Credit
        Support Document”
means
        any agreement or instrument that is specified as such in this
        Agreement.

       

      “Credit
        Support Provider”
has
        the
        meaning specified in the Schedule.

       

      “Default
        Rate”
means
        a
        rate per annum equal to the cost (without proof or evidence of any actual
        cost)
        to the relevant payee (as certified by it) if it were to fund or of funding
        the
        relevant amount plus 1% per annum.

       

      “Defaulting
        Party”
has
        the
        meaning specified in Section 6(a).

       

      “Early
        Termination Date”
means
        the date determined in accordance with Section 6(a) or 6(b)(iv).

       

      “Event
        of Default”
has
        the
        meaning specified in Section 5(a) and, if applicable, in the
        Schedule.

       

      “Illegality”
has
        the
        meaning specified in Section 5(b).

       

      “Indemnifiable
        Tax”
means
        any Tax other than a Tax that would not be imposed in respect of a payment
        under
        this Agreement but for a present or former connection between the jurisdiction
        of the government or taxation authority imposing such Tax and the recipient
        of
        such payment or a person related to such recipient (including, without
        limitation, a connection arising from such recipient or related person being
        or
        having been a citizen or resident of such jurisdiction, or being or having
        been
        organised, present or engaged in a trade or business in such jurisdiction,
        or
        having or having had a permanent establishment or fixed place of business
        in
        such jurisdiction, but excluding a connection arising solely from such recipient
        or related person having executed, delivered, performed its obligations or
        received a payment under, or enforced, this Agreement or a Credit Support
        Document).

       

      “law”
        includes any treaty, law, rule or regulation (as modified, in the ease of
        tax
        matters, by the practice of any relevant governmental revenue authority)
        and
“lawful”
and
        “unlawful”
will
        be
        construed accordingly.

       

      “Local
        Business Day”
means,
        subject to the Schedule, a day on which commercial banks are open for business
        (including dealings in foreign exchange and foreign currency deposits) (a)
        in
        relation to any obligation under Section 2(a)(i), in the place(s) specified
        in
        the relevant Confirmation or, if not so specified, as otherwise agreed by
        the
        parties in writing or determined pursuant to provisions contained, or
        incorporated by reference, in this Agreement, (b) in relation to any other
        payment, in the place where the relevant account is located and, if different,
        in the principal financial centre, if any, of the currency of such payment,
        (c)
        in relation to any notice or other communication, including notice contemplated
        under Section 5(a)(i), in the city specified in the address for notice provided
        by the recipient and, in the case of a notice contemplated by Section 2(b),
        in
        the place where the relevant new account is to be located and (d) in relation
        to
        Section 5(a)(v)(2), in the relevant locations for performance with respect
        to
        such Specified Transaction.

       

      “Loss”
means,
        with respect to this Agreement or one or more Terminated Transactions, as
        the
        case may be, and a party, the Termination Currency Equivalent of an amount
        that
        party reasonably determines in good faith to be its total losses and costs
        (or
        gain, in which case expressed as a negative number) in connection with this
        Agreement or that Terminated Transaction or group of Terminated Transactions,
        as
        the case may be, including any loss of bargain, cost of funding or, at the
        election of such party but without duplication, loss or cost incurred as
        a
        result of its terminating, liquidating, obtaining or reestablishing any hedge
        or
        related trading position (or any gain resulting from any of them). Loss includes
        losses and costs (or gains) in respect of any payment or delivery required
        to
        have been made (assuming satisfaction of each applicable condition precedent)
        on
        or before the relevant Early Termination Date and not made, except so as
        to
        avoid duplication, if Section 6(e)(i)(l) or (3) or 6(e)(ii)(2)(A) applies.
        Loss
        does not include a party’s legal fees and out-of-pocket expenses referred to
        under Section 11. A party will determine its Loss as of the relevant Early
        Termination Date, or, if that is not reasonably practicable, as of the earliest
        date thereafter as is reasonably practicable. A party may (but need not)
        determine its Loss by reference to quotations of relevant rates or prices
        from
        one or more leading dealers in the relevant markets.

       

      “Market
        Quotation”
means,
        with respect to one or more Terminated Transactions and a party making the
        determination, an amount determined on the basis of quotations from Reference
        Market-makers. Each quotation will be for an amount, if any, that would be
        paid
        to such party (expressed as a negative number) or by such party (expressed
        as a
        positive number) in consideration of an agreement between such party (taking
        into account any existing Credit Support Document with a respect to the
        obligations of such party) and the quoting Reference Market-maker to enter
        into
        a transaction (the “Replacement Transaction”) that would have the effect of
        preserving for such party the economic equivalent of any payment or delivery
        (whether the underlying obligation was absolute or contingent and assuming
        the
        satisfaction of each applicable condition precedent) by the parties under
        Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated
        Transactions that would, but for the occurrence of the relevant Early
        Termination Date, have been required after that date. For this purpose, Unpaid
        Amounts in respect of the Terminated Transaction or group of Terminated
        Transactions are to be excluded but, without limitation, any payment or delivery
        that would, but for the relevant Early Termination Date, have been required
        (assuming satisfaction of each applicable condition precedent) after that
        Early
        Termination Date is to be included. The Replacement Transaction would be
        subject
        to such determination as such party and the Reference Market-maker may, in
        good
        faith, agree. The party making the determination (or its agent) will request
        each Reference Market-maker to provide its quotation to the extent reasonably
        practicable as of the same day and time (without regard to different time
        zones)
        on or as soon as reasonably practicable after the relevant Early Termination
        Date. The day and time as of which those quotations are to be obtained will
        be
        selected in good faith by the party obliged to make a determination under
        Section 6(e), and, if each party is so obliged, after consultation with the
        other. If more than three quotations are provided, the Market Quotation will
        be
        the arithmetic mean of the quotations, without regard to the quotations having
        the highest and lowest values. If exactly three such quotations are provided,
        the Market Quotation will be the quotation remaining after disregarding the
        highest and lowest quotations. For this purpose, if more than one quotation
        has
        the same highest value or lowest value, then one of such quotations shall
        be
        disregarded. If fewer than three quotations are provided, it will be deemed
        that
        the Market Quotation in respect of such Terminated Transaction or group of
        Terminated Transactions cannot be determined.

       

      “Non-default
        Rate”
means
        a
        rate per annum equal to the cost (without proof or evidence of any actual
        cost)
        to the Non-defaulting Party (as certified by it) if it were to fund the relevant
        amount.

       

      “Non-defaulting
        Party”
has
        the
        meaning specified in Section 6(a).

       

      “Office”
means
        a
        branch or office of a party, which may be such party’s head or home
        office.

       

      “Potential
        Event of Default”
means
        any event which, with the giving of notice or the lapse of time or both,
        would
        constitute an Event of Default.

       

      “Reference
        Market-makers”
means
        four leading dealers in the relevant market selected by the party determining
        a
        Market Quotation in good faith (a) from among dealers of the highest credit
        standing which satisfy all the criteria that such party applies generally
        at the
        time in deciding whether to offer or to make an extension of credit and (b)
        to
        the extent practicable, from among such dealers having an office in the same
        city.

       

      “Relevant
        Jurisdiction”
means,
        with respect to a party, the jurisdictions (a) in which the party is
        incorporated, organised, managed and controlled or considered to have its
        seat,
        (b) where an Office through which the party is acting for purposes of this
        Agreement is located, (c) in which the party executes this Agreement and
        (d) its
        relation to any payment, from or through which such payment is
        made.

       

      “Scheduled
        Payment Date”
means
        a
        date on which a payment or delivery is to be made under Section 2(a)(i) with
        respect to a Transaction.

       

      “Set-off”
means
        set-off, offset, combination of accounts, right of retention or withholding
        or
        similar right or requirement to which the payer of an amount under Section
        6 is
        entitled or subject (whether arising under this Agreement, another contract,
        applicable law or otherwise) that is exercised by, or imposed on, such
        payer.

       

      “Settlement
        Amount”
means,
        with respect to a party and any Early Termination Date, the sum of:
—

       

      (a)  the
        Termination Currency Equivalent of the Market Quotations (whether positive
        or
        negative) for each Terminated Transaction or group of Terminated Transactions
        for which a Market Quotation is determined; and

       

      (b)  such
        party’s Loss (whether positive or negative and without reference to any Unpaid
        Amounts) for each Terminated Transaction or group of Terminated Transactions
        for
        which a Market Quotation cannot be determined or would not (in the reasonable
        belief of the party making the determination) produce a commercially reasonable
        result.

       

      “Specified
        Entity”
has
        the
        meanings specified in the Schedule.

       

      “Specified
        Indebtedness”
means,
        subject to the Schedule, any obligation (whether present or future, contingent
        or otherwise, as principal or surety or otherwise) in respect of borrowed
        money.

       

      “Specified
        Transaction”
means,
        subject to the Schedule, (a) any transaction (including an agreement with
        respect thereto) now existing or hereafter entered into between one party
        to
        this Agreement (or any Credit Support Provider of such party or any applicable
        Specified Entity of such party) and the other party to this Agreement (or
        any
        Credit Support Provider of such other party or any applicable Specified Entity
        of such other party) which is a rate swap transaction, basis swap, forward
        rate
        transaction, commodity swap, commodity option, equity or equity index swap,
        equity or equity index option, bond option, interest rate option, foreign
        exchange transaction, cap transaction, floor transaction, collar transaction,
        currency swap transaction, cross-currency rate swap transaction, currency
        option
        or any other similar transaction (including any option with respect to any
        of
        these transactions), (b) any combination of these transactions and (c) any
        other
        transaction identified as a Specified Transaction in this Agreement or the
        relevant confirmation.

       

      “Stamp
        Tax”
means
        any stamp, registration, documentation or similar tax.

       

      “Tax”
means
        any present or future tax, levy, impost, duty, charge, assessment or fee
        of any
        nature (including interest, penalties and additions thereto) that is imposed
        by
        any government or other taxing authority in respect of any payment under
        this
        Agreement other than a stamp, registration, documentation or similar
        tax.

       

      “Tax
        Event”
has
        the
        meaning specified in Section 5(b).

       

      “Tax
        Event Upon Merger”
has
        the
        meaning specified in Section 5(b).

       

      “Terminated
        Transactions”
means
        with respect to any Early Termination Date (a) if resulting from a Termination
        Event, all Affected Transactions and (b) if resulting from an Event of Default,
        all Transactions (in either ease) in effect immediately before the effectiveness
        of the notice designating that Early Termination Date (or, if “Automatic Early
        Termination” applies, immediately before that Early Termination
        Date).

       

      “Termination
        Currency”
has
        the
        meaning specified in the Schedule.

       

      “Termination
        Currency Equivalent”
means,
        in respect of any amount denominated in the Termination Currency, such
        Termination Currency amount and, in respect of any amount denominated in
        a
        currency other than the Termination Currency (the “Other Currency”), the amount
        in the Termination Currency determined by the party making the relevant
        determination as being required to purchase such amount of such Other Currency
        as at the relevant Early Termination Date, or, if the relevant Market Quotation
        or Loss (as the case may be), is determined as of a later date, that later
        date,
        with the Termination Currency at the rate equal to the spot exchange rate
        of the
        foreign exchange agent (selected as provided below) for the purchase of such
        Other Currency with the Termination Currency at or about 11:00 a.m. (in the
        city
        in which such foreign exchange agent is located) on such date as would be
        customary for the determination of such a rate for the purchase of such Other
        Currency for value on the relevant Early Termination Date or that later date.
        The foreign exchange agent will, if only one party is obliged to make a
        determination under Section 6(e), be selected in good faith by that party
        and
        otherwise will be agreed by the parties.

       

      “Termination
        Event”
means
        an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to
        be
        applicable, a Credit Event Upon Merger or an Additional Termination
        Event.

       

      “Termination
        Rate”
means
        a
        rate per annum equal to the arithmetic mean of the cost (without proof or
        evidence of any actual cost) to each party (as certified by such party) if
        it
        were to fund or of funding such amounts.

       

      “Unpaid
        Amounts”
owing
        to any party means, with respect to an Early Termination Date, the aggregate
        of
        (a) in respect of all Terminated Transactions, the amounts that became payable
        (or that would have become payable but for Section 2(a)(iii)) to such party
        under Section 2(a)(i) on or prior to such Early Termination Date and which
        remain unpaid as at such Early Termination Date and (b) in respect of each
        Terminated Transaction, for each obligation under Section 2(a)(i) which was
        (or
        would have been but for Section 2(a)(iii)) required to be settled by delivery
        to
        such party on or prior to such Early Termination Date and which has not been
        so
        settled as at such Early Termination Date, an amount equal to the fair market
        value of that which was (or would have been) required to be delivered as
        of the
        originally scheduled date for delivery, in each ease together with (to the
        extent permitted under applicable law) interest, in the currency of such
        amounts, from (and including) the date such amounts or obligations were or
        would
        have been required to have been paid or performed to (but excluding) such
        Early
        Termination Date, at the Applicable Rate. Such amounts of interest will be
        calculated on the basis of daily compounding and the actual number of days
        elapsed. The fair market value of any obligation referred to in clause (b)
        above
        shall be reasonably determined by the party obliged to make the determination
        under Section 6(e) or, if each party is so obliged, it shall be the average
        of
        the Termination Currency Equivalents of the fair market values reasonably
        determined by both parties.

       

      IN
        WITNESS WHEREOF the parties have executed this document on the respective
        dates
        specified below with effect from the date specified on the first page of
        this
        document.

       

      

      
        	
                MORGAN
                  STANLEY CAPITAL SERVICES INC.

              	 	
                DEUTSCHE
                  BANK NATIONAL TRUST COMPANY, not individually, but solely as Trustee
                  on
                  behalf of the Supplemental Interest Trust with respect to Morgan
                  Stanley
                  ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through Certificates,
                  Series 2007-NC1

              
	 	 	 	 	 
	 	 	 	 	 
	
                By:

              	 	 	
                By:

              	 
	
                Name:

              	 	 	
                Name:

              	 
	
                Title:

              	 	 	
                Title:

              	 
	
                Date:

              	 	 	
                Date:

              	 

      

       

      
 

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
       

      EXECUTION
        COPY

       

      SCHEDULE

      TO
        THE

      1992
        ISDA MASTER AGREEMENT

      dated
        as of January 26, 2007

      between

       

      MORGAN
        STANLEY CAPITAL SERVICES INC.

      a
        Delaware corporation

      (“Party
        A”)

       

      and

       

      DEUTSCHE
        BANK NATIONAL TRUST COMPANY

      a
        national banking association, not individually, but solely as Trustee on
        behalf
        of the Supplemental Interest Trust (the “Trust”) with respect to Morgan Stanley
        ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through Certificates, Series
        2007-NC1 

      (“Party
        B”)

       

      
        	Part
                1.  	
                Termination
                  Provisions.

              

      

       

      
        	(a)  	
                “Specified
                  Entity”
                  means in relation to Party A for the purpose
                  of:

              

      

       

      Section 5(a)(v),
        None Specified

      Section 5(a)(vi),
        None Specified

      Section 5(a)(vii),
        None Specified

      Section 5(b)(iv),
        None Specified

       

      and
        in
        relation to Party B for the purpose of:

       

      Section 5(a)(v),
        None Specified

      Section 5(a)(vi),
        None Specified

      Section 5(a)(vii),
        None Specified

      Section 5(b)(iv),
        None Specified

       

      
        	(b)  	
                Events
                  of Default.
                  Notwithstanding anything in this Agreement to the contrary, the
                  following
                  Events of Default shall apply to the specified
                  party:

              

      

      
      

       

      
        	 	 	
                Party A

              	
                Party B

              
	
                (i)

              	
                Section
                  5(a)(i), Failure to Pay or Deliver

              	
                Applicable

              	
                Applicable

              
	
                (ii)

              	
                Section
                  5(a)(ii), Breach of Agreement

              	
                Applicable

              	
                Not
                  Applicable

              
	
                (iii)

              	
                Section
                  5(a)(iii), Credit Support Default

              	
                Applicable

              	
                Applicable

              
	
                (iv)

              	
                Section
                  5(a)(iv), Misrepresentation

              	
                Applicable

              	
                Not
                  Applicable

              
	
                (v)

              	
                Section
                  5(a)(v), Default Under Specified Transaction

              	
                Not
                  Applicable

              	
                Not
                  Applicable

              
	
                (vi)

              	
                Section
                  5(a)(vi), Cross Default

              	
                Applicable

              	
                Not
                  Applicable

              
	
                (vii)

              	
                Section
                  5(a)(vii), Bankruptcy

              	
                Applicable

              	
                Applicable

              
	
                (viii)

              	
                Section
                  5(a)(viii), Merger Without Assumption

              	
                Applicable

              	
                Applicable

              

      

       

      provided,
        however, that with respect to: 

       

      
        	(i)  	
                Section
                  5(a)(iii)(1) (Credit Support Default), as it applies to Party B
                  only,
                  shall be deleted in its entirety and replaced with the following:
“Failure
                  by Party B to comply with or perform any agreement or obligation
                  to be
                  complied with or performed by it in accordance with Paragraph 3(b)
                  of the
                  Credit Support Annex if such failure is continuing after any applicable
                  grace period has elapsed.”

              

      

       

      
        	(ii)  	
                Section
                  5(a)(vi) (Cross Default), “Threshold Amount” means, with respect to Party
                  A, 3% of its Credit Support Provider’s (or the applicable Relevant
                  Entity’s) shareholder’s equity (as detailed in its Credit Support
                  Provider’s or the Relevant Entity’s most recent financial
                  statements).

              

      

       

      
        	(iii)  	
                Section
                  5(a)(vii) (Bankruptcy), (i) clause (2) and (9) shall not be applicable
                  to
                  Party B; (ii) clause (4) shall not be applicable to Party B if
                  the
                  proceeding or petition is instituted or presented by Party A or
                  any of its
                  Affiliates and is in breach of Party A’s agreement set forth in Part 5(j)
                  of this Schedule; (iii) the appointment of a trustee or other secured
                  party by Party B or the Certificateholders for the purpose of holding
                  all
                  or a substantial portion of the assets of Party B for the benefit
                  of the
                  Certificateholders or Party A does not qualify as the appointment
                  of a
                  trustee, custodian or similar official under clause (6); (iv) a
                  security
                  interest granted by Party B to a trustee, collateral agent, custodian
                  or
                  other secured party, as applicable (the "Secured Party"), pursuant
                  to an
                  indenture, trust agreement, pooling and servicing agreement or
                  other
                  customary securitization transaction document (the "Security Agreement"),
                  in property of Party B (the "Securitization Collateral") supporting
                  a
                  rated securitization transaction (the "Securitization"), and the
                  rights of
                  the Secured Party in and to the Securitization Collateral for the
                  benefit
                  of the investors in the Securitization and/or Party A, is not intended
                  to
                  constitute and shall not be treated as a secured party taking possession
                  of the assets of Party B for purposes of clause (7); (v) the words
“seeks
                  or” shall be deleted from clause (6); and (vi) clause (8) shall not
                  apply
                  to Party B to the extent that clause (8) relates to clauses of
                  Section
                  5(a)(vii) that are not applicable to Party B as a result of the
                  modifications set forth herein. Notwithstanding the foregoing,
                  for the
                  avoidance of doubt, the deletion of clause (9) is not intended
                  to render
                  clauses (1) through (8) inapplicable on the basis that Party B
                  did not
                  actively contest or oppose any of the acts referred to in such
                  clauses or,
                  in the case of clause (4), if a proceeding or petition referred
                  to therein
                  is instituted or presented against Party B, on the basis that Party
                  B
                  consented to or acquiesced in a judgment of bankruptcy or insolvency
                  or
                  the entry of an order for relief or the making of an order for
                  its winding
                  up or liquidation as a result of such proceeding or
                  petition.

              

      

       

      
        	(c)  	
                Termination
                  Events.
                  Notwithstanding anything in this Agreement to the contrary, the
                  following
                  Termination Events shall apply to the specified
                  party:

              

      

      
      

       

      
        	 	 	 	
                Party A

              	 	
                Party B

              
	
                (i)

              	 	
                Section
                  5(b)(i), Illegality

              	
                Applicable

              	 	
                Applicable

              
	
                (ii)

              	 	
                Section
                  5(b)(ii), Tax Event

              	
                Applicable

              	 	
                Applicable

              
	
                (iii)

              	 	
                Section
                  5(b)(iii), Tax Event Upon Merger

              	
                Applicable
                  

              	 	
                Applicable

              
	
                (iv)

              	 	
                Section
                  5(b)(iv), Credit Event Upon Merger

              	
                Not
                  Applicable

              	 	
                Not
                  Applicable

              
	
                (v)

              	 	
                Section
                  5(b)(v), Additional Termination Event

              	
                Applicable
                  (as set forth in Part 1(g) below)

              	 	
                Applicable
                  (as set forth in Part 1(g) below)

              

      

       

      provided,
        however, that with respect to Section 5(b)(iii), Party A shall not be entitled
        to designate an Early Termination Date by reason of a Tax Event Upon Merger
        in
        respect of which it is the Affected Party.

       

      
        	(d)  	
                The “Automatic
                  Early Termination”
                  provisions of Section 6(a) will not apply to Party A and will not
                  apply to Party B. 

              

      

       

      
        	(e)  	
                The
                  “Transfer
                  to Avoid Termination Event”
                  provisions of 6(b)(ii) will apply, provided that the words “or if a Tax
                  Event Upon Merger occurs and the Burdened Party is the Affected
                  Party,”
                  shall be deleted.

              

      

       

      
        	(f)  	
                Payments
                  on Early Termination. 

              

      

       

      
        	(i)  	
                For
                  the purpose of Section 6(e), “Market
                  Quotation”
                  and “Second
                  Method”
                  will apply.

              

      

       

      
        	(ii)  	
                Where
                  an Early Termination Date is designated as a result of an Event
                  of Default
                  with respect to which Party A is the Defaulting Party or a Termination
                  Event under Section 5(b)(iii), Section 5(b)(iv) or Section 5(b)(v)
                  with
                  respect to which Party A is the sole Affected Party, paragraphs
                  (1)
                  through (8) below shall apply:

              

      

       

      
        	(1)  	
                The
                  definition of “Market Quotation” shall be deleted in its entirety and
                  replaced with the following:

              

      

       

      “‘Market
        Quotation’
        means,
        with respect to one or more Terminated Transactions, a Firm Offer which is
        (1)
        made by an Eligible Replacement, (2) for an amount, if any, that would be
        paid
        to Party B (expressed as a negative number) or by Party B (expressed as a
        positive number) in consideration of an agreement between Party B and an
        Eligible Replacement to enter into a transaction (the “Replacement
        Transaction”)
        that
        would have the effect of preserving for such party the economic equivalent
        of
        any payment or delivery (whether the underlying obligation was absolute or
        contingent and assuming the satisfaction of each applicable condition precedent)
        by the parties under Section 2(a)(i) in respect of such Terminated Transactions
        or group of Terminated Transactions that would, but for the occurrence of
        the
        relevant Early Termination Date, have been required after that date, (3)
        made on
        the basis that Unpaid Amounts in respect of the Terminated Transaction or
        group
        of Transactions are to be excluded but, without limitation, any payment or
        delivery that would, but for the relevant Early Termination Date, have been
        required (assuming satisfaction of each applicable condition precedent) after
        that Early Termination Date is to be included and (4) made in respect of
        a
        Replacement Transaction with terms substantially the same as those of this
        Agreement (save for the exclusion of provisions relating to Transactions
        that
        are not Terminated Transactions). Party A and Party B will request each Eligible
        Replacement to provide a Firm Offer to the extent reasonably practicable
        as of
        the same day and time (without regard to different time zones). If no Firm
        Offers are provided, it will be deemed that the Market Quotation in respect
        of
        such Terminated Transaction or group of Terminated Transactions cannot be
        determined.

       

      
        	(2)  	
                The
                  definition of “Settlement Amount” shall be deleted in its entirety and
                  replaced with the following:

              

      

       

      “Settlement
        Amount”
means,
        with respect to any Early Termination Date, an amount (as determined by Party
        B
        in accordance with clauses (a) and (b) below; provided, however, if Party
        B
        fails to make such determination promptly, Party A shall have the right to
        make
        such determination) equal to:

       

      (a) the
        Termination Currency Equivalent of the amount (whether positive or negative)
        for
        each Terminated Transaction or group of Terminated Transactions for which
        a
        Market Quotation is determined. If more than one Market Quotation is capable
        of
        becoming legally binding upon acceptance, Party B shall accept the Market
        Quotation that constitutes (1) the highest Market Quotation in the case of
        a
        payment by an Eligible Replacement to Party B or (2) the lowest Market Quotation
        in the case of a payment by Party B to an Eligible Replacement; provided,
        however, if Party B fails to make such determination promptly, Party A shall
        have the right to make such determination. If only one Market Quotation is
        provided, Party B shall accept the single Market Quotation. Party B shall
        be
        obligated to accept the Market Quotation immediately upon determination so
        as to
        become legally binding; or

       

      (b) Party
        B’s
        Loss (whether positive or negative and without reference to any Unpaid Amounts)
        for each Terminated Transaction or group of Terminated Transactions for which
        a
        Market Quotation cannot be determined.

       

      
        	(3)  	
                For
                  the purpose of paragraph (4) of the definition of Market Quotation,
                  Party
                  B shall make reasonable efforts to determine, acting in a commercially
                  reasonable manner, whether a Firm Offer is made in respect of a
                  Replacement Transaction with terms substantially the same as those
                  of this
                  Agreement (save for the exclusion of provisions relating to Transactions
                  that are not Terminated Transactions); provided, however, if Party
                  B fails
                  to make such determination promptly, Party A shall have the right
                  to make
                  such determination.

              

      

       

      
        	(4)  	
                Party
                  B undertakes to use its reasonable efforts to obtain at least one
                  Market
                  Quotation on or before the later of (a) the Early Termination Date
                  or (b)
                  10 Business Days following the designation of the Early Termination
                  Date
                  (the “Latest
                  Settlement Amount Determination Day”).

              

      

       

      
        	(5)  	
                Party
                  B will be deemed to have discharged its obligations under (4) above
                  if it
                  requests Party A to obtain Market Quotations, where such request
                  is made
                  in writing within two Business Days after the day on which the
                  Early
                  Termination Date is designated.

              

      

       

      
        	(6)  	
                If
                  Party B requests Party A in writing to obtain Market Quotations,
                  Party A
                  shall use its reasonable efforts to do so before the Latest Settlement
                  Amount Determination Day.

              

      

       

      
        	(7)  	
                Party
                  A shall have the right to obtain Market Quotations, without prior
                  request
                  by Party B, before the Latest Settlement Amount Determination
                  Day.

              

      

       

      
        	(8)  	
                If
                  the Settlement Amount is a negative number, Section 6(e)(i)(3)
                  of this
                  Agreement shall be deleted in its entirety and replaced with the
                  following:

              

      

       

      “Second
        Method and Market Quotation.
        If
        Second Method and Market Quotation apply, (1) Party B shall pay to Party
        A an
        amount equal to the absolute value of the Settlement Amount in respect of
        the
        Terminated Transactions, (2) Party B shall pay to Party A the Termination
        Currency Equivalent of the Unpaid Amounts owing to Party A and (3) Party
        A shall
        pay to Party B the Termination Currency Equivalent of the Unpaid Amounts
        owing
        to Party B, provided
        that,
        (i) the
        amounts payable under (2) and (3) shall be subject to netting in accordance
        with
        Section 2(c) of this Agreement and (ii) notwithstanding any other provision
        of this Agreement, any amount payable by Party A under (3) due to a failure
        by
        Party A to make, when due, any payment under this Agreement, shall not be
        netted
        against any amount payable by Party B under (1).”

       

      
        	(g)  	
                “Termination
                  Currency”
                  means U.S. Dollars.

              

      

       

      
        	(h)  	
                Additional
                  Termination Event.

              

      

       

      
        	(A)  	
                The
                  following Additional Termination Event will apply to Party A, with
                  Party A
                  as the sole Affected Party and all Transaction as Affected
                  Transactions.

              

      

       

      
        	(i)  	
                Party
                  A fails to comply with the Rating Agency Downgrade provisions as
                  set forth
                  in Part 5(f) below; or

              

      

       

      
        	(ii)  	
                A
                  Firm Offer is accepted by Party B pursuant to Part 5(f)(ii)(2)(B)
                  following a Moody’s Second Tier Downgrade
                  Event.

              

      

       

      
        	(B)  	
                The
                  following Additional Termination Events will apply to Party B,
                  with Party
                  B as the sole Affected Party and all Transaction as Affected
                  Transactions.

              

      

       

      
        	(i)  	
                Upon
                  any amendment, supplement, modification or waiver of any provision
                  of the
                  PSA (as defined below) without the consent of Party A that materially
                  and
                  adversely affects the rights or interests of Party
                  A.

              

      

       

      
        	(ii)  	
                The
                  Servicer exercises its option to purchase the Mortgage Loans pursuant
                  to
                  Section 9.01 of the PSA.

              

      

       

      
        	(iii)  	
                Upon
                  the irrevocable direction to dissolve or otherwise terminate the
                  Trust
                  following which all assets of the Trust will be liquidated and
                  the
                  proceeds of such liquidation distributed to the
                  Certificateholders.

              

      

       

      
        	Part
                2.  	
                Tax
                  Representations. 

              

      

       

      Party
        A and Party B Payer Tax Representations.

       

      (i)
        For
        the purpose of Section 3(e), each of Party A and Party B makes the following
        representation:

       

      It
        is not
        required by any applicable law, as modified by the practice of any relevant
        governmental revenue authority, of any Relevant Jurisdiction to make any
        deduction or withholding for or on account of any Tax from any payment (other
        than interest under Section 2(e), 6(d)(ii), or 6(e) of this Agreement) to
        be
        made by it to the other party under this Agreement. In making this
        representation, it may rely on (i) the accuracy of any representations made
        by
        the other party pursuant to Section 3(f) of this Agreement, (ii) the
        satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of
        this
        Agreement, and the accuracy and effectiveness of any document provided by
        the
        other party pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement, and
        (iii) the satisfaction of the agreement of the other party contained in Section
        4(d) of this Agreement, provided that it shall not be a breach of this
        representation where reliance is placed on clause (ii) and the other party
        does
        not deliver a form or document under Section 4(a)(iii) by reason of material
        prejudice to its legal or commercial position.

       

      (ii)
        For
        the purposes of Section 3(f), Party A makes the following
        representation:

       

      Party
        A
        is a U.S. corporation organized under the laws of Delaware.

       

      
        	Part
                3.  	
                Agreement
                  to Deliver Documents.

              

      

       

      For
        the
        purpose of Sections 4(a)(i) and (ii), each party agrees to deliver the following
        documents, as applicable:

       

      
        	(a)  	
                Tax
                  forms, documents or certificates to be delivered are:
                  

              

      

      
      

       

      
        	
                Party
                  required to deliver document

              	
                Form/Document/Certificate

              	
                Date
                  by which to be delivered

              
	
                Party
                  A

              	
                A
                  correct, complete and duly executed IRS Form W-9.

              	
                (i)
                  Upon entering into this Agreement, (ii) promptly upon reasonable
                  demand by
                  Party B, and (iii) promptly upon learning that any such Form previously
                  provided by Party A has become obsolete or incorrect.

              
	 	 	 
	
                Party
                  B

              	
                (i)
                  A correct, complete and duly executed IRS Form W-9 (or any successor
                  thereto) that eliminates U.S. federal withholding and backup withholding
                  tax on payments under this Agreement, (ii) if requested by Party
                  A, a
                  correct, complete and duly executed Form W-8IMY, and (iii) a complete
                  and
                  executed IRS Form W-9, W-8BEN, W-8ECI, or W-8IMY (with attachments)
                  (as
                  appropriate) from each Certificateholder that is not an “exempt recipient”
                  as that term is defined in Treasury regulations section 1.6049-4(c)(ii),
                  that eliminates U.S. federal withholding and backup withholding
                  tax on
                  payments under this Agreement.

              	
                In
                  each case (a) upon entering into this Agreement, provided however,
                  with
                  respect to (i), the Trustee shall apply for the employer identification
                  number of the Trust promptly upon entering into this Agreement
                  and deliver
                  the related correct, complete and duly executed IRS Form W-9 promptly
                  upon
                  receipt, and in any event, no later than the first Payment Date
                  of this
                  Transaction; (b) in the case of a W-8ECI, W-8IMY, and W-8BEN that
                  does not
                  include a U.S. taxpayer identification number in line 6, before
                  December
                  31 of each third succeeding calendar year, (c) promptly upon reasonable
                  demand by Party A, and (d) promptly upon actual knowledge that
                  any such
                  Form previously provided by Party B has become obsolete or
                  incorrect.

              

      

       

      
        	(b)  	
                Other
                  documents to be delivered are:-

              

      

      
      

       

      
        	
                Party
                  required to deliver document

              	
                Form/Document/Certificate

              	
                Date
                  by which to be delivered

              	
                Covered
                  by Section 3(d) Representation

              
	
                Party
                  A 

                and
                  

                Party
                  B

              	
                Either
                  (1) a signature booklet containing secretary’s certificate and
                  resolutions (“authorizing
                  resolutions”)
                  authorizing the party to enter into derivatives transactions of
                  the type
                  contemplated by the parties or (2) a secretary’s certificate,
                  authorizing resolutions and incumbency certificate, in either case,
                  for
                  such party and any Credit Support Provider of such party reasonably
                  satisfactory in form and substance to the other party. 

              	
                The
                  earlier of the fifth Business Day after the Trade Date of the first
                  Transaction or upon execution of this Agreement and as deemed necessary
                  for any further documentation.

              	
                Yes

              
	 	 	 	 
	
                Party
                  B

              	
                An
                  executed copy of the Pooling and Servicing Agreement (“PSA”),
                  dated as of January 1, 2007, among Morgan Stanley ABS Capital I
                  Inc., as
                  Depositor, Deutsche Bank National Trust Company, as Trustee, Saxon
                  Mortgage Services, Inc., as Servicer, Countrywide Home Loans Servicing
                  LP,
                  as Servicer, and NC Capital Corporation, as Responsible
                  Party.

              	
                Upon
                  execution of this Agreement.

              	
                Yes

              
	 	 	 	 
	
                Party
                  A 

                and
                  

                Party
                  B

              	
                A
                  duly executed copy of the Credit Support Document specified in
                  Part 4 of
                  this Schedule. 

              	
                As
                  soon as practicable after the execution of this Agreement.

              	
                No

              
	 	 	 	 
	
                Party
                  A and Party B

              	
                An
                  opinion of counsel reasonably satisfactory in form and substance
                  to the
                  other party.

              	
                As
                  soon as practicable after the execution of this Agreement.

              	
                No

              

      

       

      
        	Part
                4.  	
                Miscellaneous

              

      

       

      
        	(a)  	
                Addresses
                  for Notices.
                  For the purpose of
                  Section 12(a):-

              

      

       

      
        	(i)  	
                Address
                  for notices or communications to Party
                  A:-

              

      

       

      MORGAN
        STANLEY CAPITAL SERVICES INC.

      Transaction
        Management Group

      1585
        Broadway

      New
        York,
        New York 10036-8293

      Attention:       
         CHIEF
        LEGAL OFFICER

      Fax
        No:  001
        212
        507 4622

       

      
        	(ii)  	
                Address
                  for notices or communications to Party
                  B:

              

      

       

      DEUTSCHE
        BANK NATIONAL TRUST COMPANY

      1761 East
        St. Andrew Place

      Santa
        Ana, California 92705-4934

      Attention: Trust
        Administration - MS07C1

      Facsimile
        No.:        714
        656
        2626

      Telephone
        No.:     714
        247
        6000

       

      
        	(b)  	
                Notices.
                  Section 12(a) is amended by adding in the third line thereof after
                  the phrase “messaging system” and before the “)” the words, “; provided,
                  however, any such notice or other communication may be given by
                  facsimile
                  transmission if telex is unavailable, no telex number is supplied
                  to the
                  party providing notice, or if answer back confirmation is not received
                  from the party to whom the telex is
                  sent.”

              

      

       

      
        	(c)  	
                Process
                  Agent.
                  For the purpose of
                  Section 13(c):

              

      

       

      Party
        A
        appoints as its Process Agent: Not Applicable.

       

      Party
        B
        appoints as its Process Agent: Not Applicable.

       

      
        	(d)  	
                Offices.
                  The provisions of Section 10(a) will not apply to Party A and to
                  Party B.

              

      

       

      
        	(e)  	
                Multibranch
                  Party.
                  For the purpose of
                  Section 10(c):

              

      

       

      Party
        A
        is not a Multibranch Party.

       

      Party
        B
        is not a Multibranch Party.

       

      
        	(f)  	
                “Calculation
                  Agent”
                  means Party A.

              

      

       

      
        	(g)  	
                “Credit
                  Support Document”
                  means (a) with respect to Party A, (1) the Credit Support Annex
                  between
                  Party A and Party B dated as of the date hereof (the “Credit
                  Support Annex”)
                  and (2) the guarantee of Morgan Stanley and (b) with respect to
                  Party B,
                  the Credit Support Annex.

              

      

       

      
        	(h)  	
                Credit
                  Support Provider
                  means in relation to Party A: Morgan Stanley, a Delaware
                  corporation.

              

      

       

      Credit
        Support Provider
        means in
        relation to Party B: None

       

      
        	(i)  	
                Governing
                  Law; Jurisdiction.
                  This Agreement, each Credit Support Document and each Confirmation
                  will be
                  governed by and construed in accordance with the laws of the State
                  of New
                  York without regard to conflict of law provisions thereof other
                  than New
                  York General Obligations Law Sections 5-1401 and 5-1402.
                  Section 13(b) is amended by: (1) deleting “non-” from the second
                  line of clause (i); and (2) deleting the final
                  paragraph.

              

      

       

      
        	(j)  	
                Waiver
                  of Jury Trial.
                  Each party waives, to the fullest extent permitted by applicable
                  law, any
                  right it may have to a trial by jury in respect of any Proceedings
                  relating to this Agreement or any Credit Support
                  Document.

              

      

       

      
        	(k)  	
                Netting
                  of Payments.
                  Clause (ii) of Section 2(c) will apply to any amounts payable with
                  respect to Transactions from the date of this
                  Agreement.

              

      

       

      
        	(l)  	
                “Affiliate”.
                  Party A and Party B shall be deemed not to have any Affiliates
                  for
                  purposes of this Agreement, including for purposes of
                  Section 6(b)(ii). For the avoidance of doubt, with respect to Party
                  A, such definition shall be understood to exclude Morgan Stanley
                  Derivative Products Inc.

              

      

       

      
        	(m)  	
                Additional
                  Definitions.
                  All capitalized terms used but not otherwise defined in this Agreement
                  shall have the meanings given thereto in the
                  PSA.

              

      

       

      
        	Part
                5.  	
                Other
                  Provisions

              

      

       

      
        	(a)  	
                Additional
                  Representations.

              

      

       

      
        	(i)  	
                The
                  introductory clause of Section 3 of this Agreement is hereby amended
                  to read in its entirety as follows:

              

      

       

      “Each
        party represents to the other party (which representations will be deemed
        to be
        repeated by each party on each date on which a Transaction is entered into
        and,
        in the case of the representations in Section 3(f) and
        Section 3(g)(4), at all times until the termination of this Agreement)
        that:—”

       

      
        	(ii)  	
                Section 3
                  of this Agreement is hereby amended by adding at the end thereof
                  the
                  following subsection (g):

              

      

       

      “(g) Relationship
        Between Parties.

       

      (1) Nonreliance.
        It is
        not relying on any statement or representation of the other party regarding
        a
        Transaction (whether written or oral), other than the representations expressly
        made in this Agreement or the Confirmation in respect of that
        Transaction.

       

      (2) Evaluation
        and Understanding.

       

      (i) Non-Reliance.
        In the
        case of Party A, it is acting for its own account, and in the case of Party
        B,
        the Trustee is acting on behalf of the Trust. It has made its own independent
        decisions to enter into that Transaction and as to whether that Transaction
        is
        appropriate or proper for it based upon its own judgment and upon advice
        from
        such advisers as it has deemed necessary and, with respect to Party B, as
        directed under the PSA. It is not relying on any communication (written or
        oral)
        of the other party as investment advice or as a recommendation to enter into
        that Transaction; it being understood that information and explanations related
        to the terms and conditions of a Transaction shall not be considered investment
        advice or a recommendation to enter into that Transaction. No communication
        (written or oral) received from the other party shall be deemed to be an
        assurance or guarantee as to the expected results of that
        Transaction.

       

      (ii) Assessment
        and Understanding.
        It is
        capable of assessing the merits of and understanding (on its own behalf or
        through independent professional advice), and understands and accepts, the
        terms, conditions and risks of that Transaction. It is also capable of assuming,
        and assumes, the risks of that Transaction.

       

      (iii) Status
        of Parties.
        The
        other party is not acting as a fiduciary for or an adviser to it in respect
        of
        that Transaction.

       

      (3) Purpose.
        It is an
“eligible swap participant” as such term is defined in Section 35.1(b)(2)
        of the regulations (17 C.F.R 35) promulgated under, and an “eligible contract
        participant” as defined in Section 1a(12) of, the Commodity Exchange Act,
        as amended, and it is entering into the Transaction for the purposes of managing
        its borrowings or investments, hedging its underlying assets or liabilities
        or
        in connection with a line of business.

       

      (4) ERISA
        Representation.

       

      (i)
        Party
        A represents and warrants at all times hereunder that it is not a pension
        plan
        or employee benefit plan and that it is not using assets of any such plan
        or
        assets deemed to be assets of such a plan in connection with any Transaction
        under this Agreement, and

       

      (ii)
        Party B represents and warrants at all times hereunder that (x) it is not
        a
        pension plan or employee benefit plan, and (y) (1) that it is not acting
        on
        behalf of any such plan or using assets of any such plan or assets deemed
        to be
        assets of any such plan in connection with any Transaction under this Agreement
        or (2) any pension plan or employee benefits plan subject to the Employee
        Retirement Income Security Act of 1974, as amended (“ERISA”),
        or
        Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”),
        or
        any person who is acting on behalf of such a plan or using assets of such
        plan
        or assets deemed to be “plan assets” of such plan pursuant to U.S. Department of
        Labor regulation section 2510.3-101, who purchases a certificate issued by
        the
        Trust while the Trust is in existence (i) shall represent or shall be deemed
        to
        represent that the purchase and holding of such certificate is in reliance
        on at
        least one of the Prohibited Transaction Class Exemptions of 84-14, 90-1,
        91-38,
        95-60 or 96-23 or (ii) shall provide an opinion of counsel which states that
        such purchase and holding is permissible under applicable law and will not
        result in a prohibited transaction under ERISA or Section 4975 of the
        Code.”

       

      
        	(b)  	
                Set-off.
                  Subject
                  to Section 2(c), Paragraphs 8(a) and 8(b) of the Credit Support
                  Annex and
                  Part 1(f)(ii)(8) hereof, notwithstanding any other provision of
                  this
                  Agreement or any other existing or future agreement, each party
                  irrevocably waives any and all rights it may have to set off, net,
                  recoup
                  or otherwise withhold, suspend or condition payment or performance
                  of any
                  obligation between it and the other party hereunder against any
                  obligation
                  between it and the other party under any other agreements. Section
                  6(e) is
                  hereby amended by the deletion of the following sentence at the
                  end of the
                  first paragraph thereof: “The amount, if any, payable in respect of an
                  Early Termination Date and determined pursuant to this Section
                  will be
                  subject to any Set-off.”

              

      

       

      
        	(c)  	
                Confirmations.
                  Party A will deliver to Party B a Confirmation relating to each
                  Transaction.

              

      

       

      
        	(d)  	
                Form
                  of Agreement.
                  The parties hereby agree that the text of the body of this Agreement
                  is
                  intended to be the printed form of 1992 ISDA Master Agreement
                  (Multicurrency—Cross Border) as published and copyrighted by the
                  International Swaps and Derivatives Association,
                  Inc.

              

      

       

      
        	(e)  	
                Transfer,
                  Termination, Amendment and
                  Assignment.

              

      

       

      
        	(i)  	
                This
                  Agreement may not be amended unless prior written notice is given
                  to
                  Moody’s and Rating Agency Confirmation from S&P is
                  obtained.

              

      

       

      
        	(ii)  	
                Notwithstanding
                  any other provision of this Agreement, no Early Termination Date
                  shall be
                  effectively designated by Party B (other than an Early Termination
                  Date
                  designated under Part 5(f)(ii)(3)) unless Moody’s has been given prior
                  written notice of such designation.

              

      

       

      
        	(iii)  	
                Party
                  B may, with the prior written consent of Party A and subject prior
                  written
                  notice to Moody’s and Rating Agency Confirmation from S&P, assign,
                  novate or transfer its rights and obligations under the Agreement
                  to a
                  third party. Notwithstanding Section 7 of this Agreement, Party
                  A may, at
                  its own discretion and at its own expense, subject to giving reasonable
                  notice of transfer to Moody’s and subject to Rating Agency Confirmation
                  with respect to S&P, assign, novate or transfer its rights and
                  obligations under this Agreement (including any Transactions hereunder)
                  to
                  any third party including, without limitation, another of Party
                  A’s
                  offices, branches or affiliates (the “Transferee”), provided
                  that:

              

      

       

      (1) such
        third party agrees to be bound by, inter alia, the payment, transfer and
        collateral terms of this Agreement (including any Transactions hereunder)
        and
        substantially all other terms as the party which it replaces;

       

      (2) such
        third party is an Eligible Replacement;

       

      (3) a
        Termination Event or an Event of Default does not occur under this Agreement
        as
        a result of such transfer;

       

      (4) if
        the
        Transferee is domiciled in a different jurisdiction from both Party A and
        Party
        B, the rating of the Certificates assigned by S&P are not adversely
        affected;

       

      (5) as
        of the
        date of the transfer the Transferee will not, as a result of such transfer,
        be
        required to withhold or deduct on account of tax under this Agreement;
        and

       

      (6) as
        of the
        date of such transfer, neither the Transferee nor Party B will be required
        to
        withhold or deduct any increased amount on account of any Taxes under this
        Agreement as a result of such transfer, unless, as of the date of such transfer,
        (x) Party B is entitled to additional amounts under Section 2(d)(i)(4) on
        account of any such Taxes required to be deducted or withheld by the Transferee
        and (y) Party B is not required to pay Transferee additional amounts under
        Section 2(d)(i)(4) on account of any such Taxes required to be deducted or
        withheld by Party B.

       

      Following
        such transfer, all references herein to Party A shall be deemed to be
 references
        to the Transferee.

       

      
        	(f)  	
                Rating
                  Agency Downgrade. 

              

      

       

      
        	(i)  	
                Moody’s
                  First Tier Downgrade. In
                  the event the Relevant Entity is downgraded below the Moody’s First Tier
                  Required Swap Counterparty Ratings (a “Moody’s
                  First Tier Downgrade Event”)
                  then, within 30 Business Days after the occurrence of such Moody’s First
                  Tier Downgrade Event, Party A shall, at its option and at its own
                  expense,
                  either:

              

      

       

      
        	(A)  	
                cause
                  an Eligible Replacement to replace Party A as party to this Agreement;
                  provided that if such Eligible Replacement or its Credit Support
                  Provider,
                  as applicable, is rated below the Moody’s First Tier Required Swap
                  Counterparty Rating, such Eligible Replacement shall immediately
                  Transfer
                  Eligible Credit Support to Party B pursuant to the Credit Support
                  Annex;

              

      

       

      
        	(B)  	
                obtain
                  an Eligible Guarantee in respect of Party A’s obligations under this
                  Agreement that is provided by an entity with the Moody’s First Tier
                  Required Swap Counterparty Rating;
                  or

              

      

       

      
        	(C)  	
                Transfer
                  Eligible Credit Support to Party B pursuant to the Credit Support
                  Annex.

              

      

       

      
        	(ii)  	
                Moody’s
                  Second Tier Downgrade. (1)
                  In the event that no Relevant Entity has the Moody’s Second Tier Required
                  Swap Counterparty Rating (a “Moody’s Second Tier Downgrade Event”) then,
                  Party A shall, at its option and at its own expense, use commercially
                  reasonable efforts to as soon as reasonably practicable
                  either:

              

      

       

      
        	(A)  	
                cause
                  an Eligible Replacement to replace Party A as party to this Agreement;
                  or

              

      

       

      
        	(B)  	
                obtain
                  an Eligible Guarantee in respect of Party A’s obligations under this
                  Agreement that is provided by an entity with the Moody’s Second Tier
                  Required Swap Counterparty Rating.

              

      

       

      (2)
        If no
        Eligible Replacement or Eligible Guarantee has been effected in accordance
        with
        Part 5(f)(ii)(1)(A) or (B) above within 30 Business Days of such Moody’s Second
        Tier Downgrade Event then:

       

      
        	(A)  	
                Party
                  A shall Transfer Eligible Credit Support to Party B pursuant to
                  the Credit
                  Support Annex until such replacement or Eligible Guarantee takes
                  effect
                  or, if sooner, no Moody’s Second Tier Downgrade Event is occurring;
                  and

              

      

       

      
        	(B)  	
                without
                  prejudice to Party A’s right to continue to seek an Eligible Replacement
                  or an Eligible Guarantee pursuant to Part 5(f)(ii)(1)(A) and (B),
                  Party B
                  shall also have the right (but not the obligation) on any Business
                  Day
                  thereafter to obtain Firm Offers (such day a “Firm
                  Offer Solicitation Date”)
                  by giving Party A written notice of its intention to seek Firm
                  Offers no
                  later than 12:00 p.m., New York time, on the Business Day prior
                  to the
                  Firm Offer Solicitation Date. Such notice shall indicate the day
                  and time
                  as of which each Eligible Replacement will be requested to provide
                  its
                  Firm Offer; provided that Eligible Replacements shall not provide
                  Firm
                  Offers prior to 12:00 p.m. New York time, on the Firm Offer Solicitation
                  Date. Party B shall undertake to use reasonable efforts to seek
                  at least 5
                  Firm Offers and Party B shall request each entity providing a Firm
                  Offer
                  to do so to the extent reasonably practicable as of the same day
                  and time
                  (without regard to different time zones). If more than one Firm
                  Offer
                  remains capable of becoming legally binding upon acceptance, Party
                  B shall
                  accept the Firm Offer that constitutes (1) the highest Firm Offer
                  in the
                  case of a payment by an Eligible Replacement to Party B or (2)
                  the lowest
                  Firm Offer in the case of a payment by Party B to an Eligible Replacement;
                  provided, however, if Party B fails to make such determination
                  promptly,
                  Party A shall have the right to make such determination. If only
                  one Firm
                  Offer is provided, Party B shall accept the single Firm Offer.
                  Party B
                  shall be obligated to accept the Firm Offer upon determination;
                  provided
                  however, prior to accepting such Firm Offer, Party B shall (1)
                  on a day
                  that is a Business Day, provide Party A with at least 24 hours
                  prior
                  written notice of its intent to accept such Firm Offer (which acceptance,
                  in all cases, shall be on a Business Day) and (2) confirm that
                  Party A has
                  not identified an Eligible Replacement. If at anytime prior to
                  Party B’s
                  acceptance of a Firm Offer, Party A has identified an Eligible
                  Replacement
                  then, in its sole discretion, Party A may transfer its rights and
                  obligations under this Agreement to such Eligible Replacement and
                  an Early
                  Termination Date will not occur. If a Firm Offer is accepted by
                  Party B,
                  then, notwithstanding Section 6 of the ISDA Master Agreement, an
                  Early
                  Termination Date in respect of all outstanding Transactions will
                  occur
                  immediately upon such acceptance by Party B and the Settlement
                  Amount will
                  equal the Firm Offer so accepted by Party
                  B.

              

      

       

      (3)
        Notwithstanding Part 5(f)(ii)(1) and (2) above, an Additional Termination
        Event
        under this Part 5(f)(ii) shall only occur with Party A as the sole Affected
        Party if:

       

      
        	(A)  	
                a
                  Moody’s Second Tier Downgrade Event has occurred and has been continuing
                  for 30 or more Business Days; and

              

      

       

      
        	(B)  	
                at
                  least one Eligible Replacement has made a Firm Offer in accordance
                  with
                  Part 5(f)(ii)(2)(B) above which remains capable of becoming legally
                  binding upon acceptance by the
                  offeree.

              

      

       

      
        	(iii)  	
                S&P
                  First Tier Downgrade. In
                  the event the Relevant Entity is downgraded below the S&P First Tier
                  Required Swap Counterparty Rating (an “S&P
                  First Tier Downgrade Event”)
                  then, within 30 calendar days after the occurrence of such S&P First
                  Tier Downgrade Event, Party A shall, subject to Rating Agency
                  Confirmation, at its option and at its own expense,
                  either:

              

      

       

      
        	(A)  	
                cause
                  an Eligible Replacement to replace Party A as party to this Agreement;
                  provided that if such Eligible Replacement or its Credit Support
                  Provider,
                  as applicable, is rated below the S&P First Tier Required Swap
                  Counterparty Rating, such Eligible Replacement shall immediately
                  Transfer
                  Eligible Credit Support to Party B pursuant to the Credit Support
                  Annex;

              

      

       

      
        	(B)  	
                obtain
                  an Eligible Guarantee in respect of Party A’s obligations under this
                  Agreement that is provided by an entity with the S&P First Tier
                  Required Swap Counterparty Rating;

              

      

       

      
        	(C)  	
                transfer
                  Eligible Credit Support to Party B pursuant to the Credit Support
                  Annex;
                  or

              

      

       

      
        	(D)  	
                take
                  other steps, if any, to enable Party B to remedy a downgrade by
                  S&P
                  below the S&P First Tier Required Swap Counterparty
                  Rating.

              

      

       

      
        	(iv)  	
                S&P
                  Second Tier Downgrade. (1)
                  In the event that no Relevant Entity has the S&P Second Tier Required
                  Swap Counterparty Rating (an “S&P
                  Second Tier Downgrade Event”)
                  then, within 10 calendar days after such S&P Second Tier Downgrade
                  Event, Party A shall, subject to Rating Agency Confirmation, at
                  its option
                  and at its own expense, use commercially reasonable efforts to
                  as soon as
                  reasonably practicable either:

              

      

       

      
        	(A)  	
                cause
                  an Eligible Replacement to replace Party A as party to this Agreement;
                  provided that if such Eligible Replacement or its Credit Support
                  Provider,
                  as applicable, is rated below the S&P First Tier Required Swap
                  Counterparty Rating, such Eligible Replacement shall immediately
                  Transfer
                  Eligible Credit Support to Party B pursuant to the Credit Support
                  Annex;
                  or

              

      

       

      
        	(B)  	
                obtain
                  an Eligible Guarantee in respect of Party A’s obligations under this
                  Agreement that is provided by an entity with the S&P First Tier
                  Required Swap Counterparty Rating.

              

      

       

      (2)
        Pending compliance with Part 5(f)(iv)(1)(A) or (B) Party A shall Transfer
        Eligible Credit Support to Party B pursuant to the Credit Support Annex
        immediately upon the occurrence of an S&P Second Tier Downgrade
        Event.

       

      
        	(v)  	
                Failure
                  to act in accordance with this Part 5(f), including any failure
                  by Party A
                  to comply with or perform any obligation to be complied with or
                  performed
                  by Party A under the Credit Support Annex, shall constitute an
                  Additional
                  Termination Event with Party A as the sole Affected Party; provided
                  that,
                  failure by Party A to Transfer Eligible Credit Support to Party
                  B in
                  accordance with Part 5(f)(ii)(2) above shall constitute an Event
                  of
                  Default under Section 5(a)(iii)(“Credit Support Default”) if such failure
                  is not remedied on or before the third Business Day after notice
                  of such
                  failure is given to Party A.

              

      

       

      
        	(vi)  	
                For
                  purposes of this Part 5(f), but subject to Part 5(f)(ii)(3), Party
                  A shall
                  be responsible for (1) posting collateral in accordance with such
                  Credit
                  Support Annex at its own cost; and (2) any cost incurred by it
                  in
                  complying with its obligations.

              

      

       

      
        	(g)  	
                Rating
                  Agency Downgrade Definitions.

              

      

       

      
        	(i)  	
                For
                  purposes of this Agreement,

              

      

       

      “Eligible
        Guarantee”
        means an
        unconditional and irrevocable guarantee, letter of credit or other arrangement
        that is provided by a party as principal obligor rather than surety and is
        directly enforceable by Party B.

       

      “Eligible
        Replacement”
        means an
        entity (1) with the Moody’s First Tier Required Swap Counterparty Ratings and/or
        the Moody’s Second Tier Required Swap Counterparty Ratings or whose present and
        future obligations owing to Party B are supported pursuant to an Eligible
        Guarantee provided by a party with the Moody’s First Tier Required Swap
        Counterparty Ratings and/or the Moody’s Second Tier Required Swap Counterparty
        Ratings, and (2) with the S&P First Tier Required Swap Counterparty Ratings
        and/or the S&P Second Tier Required Swap Counterparty Ratings or whose
        present and future obligations owing to Party B are supported pursuant to
        an
        Eligible Guarantee provided by a party with the S&P First Tier Required Swap
        Counterparty Ratings and/or the S&P Second Tier Required Swap Counterparty
        Ratings; provided that no entity shall be an Eligible Replacement unless
        (A) a
        legal opinion confirms that none of such Eligible Replacement’s payments to
        Party B under this Agreement will be subject to deduction or withholding
        for or
        on account of any Tax or (B) notwithstanding the definition of “Indemnifiable
        Tax” in Section 14 of this Agreement, all Taxes in relation to payments by such
        Eligible Replacement shall be Indemnifiable Taxes unless such Taxes (x) are
        assessed directly against Party B and not by deduction or withholding by
        such
        Eligible Replacement or (y) arise as a result of a Change in Tax Law (in
        which
        case such Tax shall be an Indemnifiable Tax only if such Tax satisfies the
        definition of Indemnifiable Tax provided in Section 14).

       

      “Firm
        Offer”
means
        an offer which, when made, was capable of becoming legally binding upon
        acceptance.

       

      “Moody’s”
means
        Moody’s Investor Services, Inc. and any successor to its rating
        business.

       

      “Moody’s
        First Tier Required Swap Counterparty Rating”
        means
        (i) if such counterparty or entity has only Long-Term Rating by Moody’s, a
        Long-Term Rating of at least “A1” by Moody’s or (ii) if such counterparty or
        entity has both a Long-Term Rating and a Short-Term Rating by Moody’s, a
        Long-Term Rating of at least “A2” by Moody’s and a Short-Term Rating of at least
“P-1” by Moody’s.

       

      “Moody’s
        Second Tier Required Swap Counterparty Rating”
means
        (i) if such counterparty or entity has only a Long-Term Rating by Moody’s, a
        Long-Term Rating of at least “A3” by Moody’s or (ii) if such counterparty or
        entity has both a Long-Term Rating and a Short-Term Rating by Moody’s, a
        Long-Term Rating of at least “A3” by Moody’s and a Short-Term Rating of at least
“P-2” by Moody’s.

       

      “Rating
        Agencies”
means
        Moody’s and S&P.

       

      “Rating
        Agency Confirmation”
means,
        with respect to any particular proposed act or omission to act hereunder,
        that
        the party acting or failing to act must consult with S&P and receive from
        S&P a prior written confirmation that the proposed action or inaction would
        not cause a downgrade or withdrawal of the then current rating of the
        Certificates; provided that S&P is then providing a rating of the
        Certificates.

       

      “Relevant
        Entity”
        means
        Party A, Party A’s Credit Support Provider and any principal obligor under an
        Eligible Guarantee in respect of Party A’s obligations under this
        Agreement.

       

      “S&P”
means
        Standard and Poor’s Ratings Services, a division of the McGraw-Hill Companies,
        Inc. and any successor to its rating business.

       

      “S&P
        First Tier Required Swap Counterparty Rating”
        means
        (i) a Short-Term Rating of at least “A-1” by S&P or (ii) if such
        counterparty or entity does not have a Short-Term Rating by S&P, a Long-Term
        Rating of at least “A+” by S&P.

       

      “S&P
        Second Tier Required Swap Counterparty Rating”
means
        a
        Short-Term Rating of at least “A-3” by S&P and a Long-Term Rating of at
        least “BBB-” by S&P.

       

      
        	(h)  	
                Severability.
                  If
                  any term, provision, covenant, or condition of this Agreement,
                  or the
                  application thereof to any party or circumstance, shall be held
                  to be
                  invalid or unenforceable (in whole or in part) for any reason,
                  the
                  remaining terms, provisions, covenants, and conditions hereof shall
                  continue in full force and effect as if this Agreement had been
                  executed
                  with the invalid or unenforceable portion eliminated, so long as
                  this
                  Agreement as so modified continues to express, without material
                  change,
                  the original intentions of the parties as to the subject matter
                  of this
                  Agreement and the deletion of such portion of this Agreement will
                  not
                  substantially impair the respective benefits or expectations of
                  the
                  parties; provided, however, that nothing in this provision shall
                  adversely
                  affect the rights of each party under this Agreement; and provided
                  further
                  that this severability provision shall not be applicable if any
                  provision
                  of Section 1, 2, 5, 6, or 13 (or any definition or provision in
                  Section 14 to the extent it relates to, or is used in or connection
                  with any such Section) shall be so held to be invalid or unenforceable.
                  The parties shall endeavor to engage in good faith negotiations
                  to replace
                  any invalid or unenforceable term, provision, covenant or condition
                  with a
                  valid or enforceable term, provision, covenant or condition, the
                  economic
                  effect of which comes as close as possible to that of the invalid
                  or
                  unenforceable term, provision, covenant or
                  condition.

              

      

       

      
        	(i)  	
                Consent
                  to Recording.
                  Each party hereto consents to the monitoring or recording, at any
                  time and
                  from time to time, by the other party of any and all communications
                  between trading and marketing personnel of the parties, waives
                  any further
                  notice of such monitoring or recording, and agrees to notify its
                  officers
                  and employees of such monitoring or
                  recording.

              

      

       

      
        	(j)  	
                Proceedings.
                  Party A shall not institute against or cause any other person to
                  institute
                  against, or join any other person in instituting against, the Trust
                  or
                  Deutsche Bank National Trust Company, not individually, but solely
                  as
                  Trustee, any bankruptcy, reorganization, arrangement, insolvency
                  or
                  liquidation proceedings, or other proceedings under any federal
                  or state
                  bankruptcy or similar law for a period of one year and one day
                  (or, if
                  longer, the applicable preference period) following payment in
                  full of the
                  Certificates; provided, however, that this shall not restrict or
                  prohibit
                  Party A from joining in any bankruptcy, reorganization, arrangement,
                  insolvency, moratorium or liquidation proceedings or other analogous
                  proceedings under applicable laws.

              

      

       

      
        	(k)  	
                Regulation
                  AB. Upon
                  request by the Depositor, Party A may, at its option, but is not
                  required
                  to, (A) (a) provide the financial information required by Item
                  1115(b)(1)
                  or (b)(2) of Regulation AB (as specified by the Depositor to Party
                  A) with
                  respect to Party A (or any guarantor of Party A if providing the
                  financial
                  data of a guarantor is permitted under Regulation AB) and any affiliated
                  entities providing derivative instruments to Party B (the “Company
                  Financial Information”), in a form appropriate for use in the Exchange Act
                  Reports and in an EDGAR-compatible form; (b) if applicable, cause
                  its
                  accountants to issue their consent to filing or incorporation by
                  reference
                  of such financial statements in the Exchange Act Reports of Party
                  B and
                  (c) within 5 Business Days of the release of any updated financial
                  information, provide current Company Financial Information as required
                  under Item 1115(b) of Regulation AB to the Depositor in an
                  EDGAR-compatible form and, if applicable, cause its accountants
                  to issue
                  their consent to filing or incorporation by reference of such financial
                  statements in the Exchange Act Reports of Party B or (B) assign
                  this
                  Agreement at its own cost to another entity that has agreed to
                  take the
                  actions described in clause (A) of this sentence with respect to
                  itself
                  (and which has the Required Swap Counterparty Rating and the assignment
                  to
                  which would satisfy the Rating Agency Condition). For the avoidance
                  of
                  doubt, Party A is not required to take any action pursuant to this
                  paragraph and the failure of Party A to take any such action will
                  not
                  constitute an Event of Default under this
                  Agreement.

              

      

       

      As
        used
        in this Agreement the following words shall have the following
        meanings:

       

      “Commission”
        shall
        mean the Securities and Exchange Commission.

       

      “Depositor”
        shall
        mean Morgan Stanley ABS Capital I Inc.

       

      “EDGAR”
        shall
        mean the Commission’s Electronic Data Gathering, Analysis and Retrieval
        system.

       

      “Exchange
        Act”
        shall
        mean the Securities Exchange Act of 1934, as amended and the rules and
        regulations promulgated thereunder 

       

      “Exchange
        Act Reports”
        shall
        mean all Distribution Reports on Form 10-D, Current Reports on Form 8-K and
        Annual Reports on Form 10-K that are to be filed with respect to Party B
        pursuant to the Exchange Act.

       

      “Regulation
        AB”
        shall
        mean the Asset Backed Securities Regulation AB, 17 C.F.R. §§229.1100-229.1123,
        as such may be amended from time to time, and subject to such clarification
        and
        interpretation as have been provided by the Commission in the adopting release
        (Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg.
        1,506, 1,531 (Jan. 7, 2005)) or by the staff of the Commission, or as may
        be
        provided by the Commission or its staff from time to time.

       

      
        	(l)  	
                Trustee
                  Capacity. It
                  is expressly understood and agreed by the parties hereto that insofar
                  as
                  this Agreement is executed by Deutsche Bank National Trust Company
                  (i)
                  this Agreement is executed and delivered by Deutsche Bank National
                  Trust
                  Company not in its individual capacity but solely as Trustee under
                  the PSA
                  in the exercise of the powers and authority conferred and vested
                  in it as
                  trustee thereunder, (ii) each of the representations, undertakings
                  and
                  agreements herein made on behalf of Party B is made and intended
                  not as
                  personal representations of the Trustee but is made and intended
                  for the
                  purpose of binding only the Trust, and (iii) under no circumstances
                  shall
                  Deutsche Bank National Trust Company in its individual capacity
                  be
                  personally liable for the payment of any indebtedness or expenses
                  or be
                  personally liable for the breach or failure of any obligation,
                  representation, warranty or covenant made or undertaken under this
                  Agreement.

              

      

       

      
        	(m)  	
                “Indemnifiable
                  Tax”
                  Notwithstanding the definition of “Indemnifiable Tax” in Section 14 of
                  this Agreement, in relation to payments by Party A, no Tax shall
                  be an
                  Indemnifiable Tax.

              

      

       

      
        	(n)  	
                If
                  Party A consolidates or amalgamates with, merges with or into,
                  or
                  transfers all or substantially all its assets to, another entity,
                  where
                  such action does not constitute an event described in Section 5(a)(viii),
                  Party A shall either (A) provide a legal opinion that none of Party
                  A's
                  payments to Party B under this Agreement will be subject to deduction
                  or
                  withholding for or on account of any Tax or (B) notwithstanding
                  the
                  definition of “Indemnifiable Tax” in Section 14 of this Agreement, all
                  Taxes in relation to payments by Party A shall be Indemnifiable
                  Taxes
                  unless such Taxes (x) are assessed directly against Party B and
                  not by
                  deduction or withholding by such Eligible Replacement or (y) arise
                  as a
                  result of a Change in Tax Law (in which case such Tax shall be
                  an
                  Indemnifiable Tax only if such Tax satisfies the definition of
                  Indemnifiable Tax provided in Section
                  14).

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

       

      IN
        WITNESS WHEREOF,
        the
        parties have executed this Schedule by their duly authorized officers as
        of the
        date hereof:

       

      

      
        	
                MORGAN
                  STANLEY CAPITAL SERVICES INC.

              	 	
                DEUTSCHE
                  BANK NATIONAL TRUST COMPANY, not individually, but solely as Trustee
                  on
                  behalf of the Supplemental Interest Trust with respect to Morgan
                  Stanley
                  ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through Certificates,
                  Series 2007-NC1

              
	 	 	 	 	 
	 	 	 	 	 
	
                By:

              	 	 	
                By:

              	 
	
                Name:

              	 	 	
                Name:

              	 
	
                Title:

              	 	 	
                Title:

              	 
	
                Date:

              	 	 	
                Date:

              	 

      

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

       

       

      Credit
        Support Annex

    

     

    
       

      
        	(Bilateral Form)	
                 (ISDA
                  Agreements Subject to New York Law Only)
                  

              

      

       

      ISDA®

       

      International
        Swaps and Derivatives Association, Inc. 

       

      CREDIT
        SUPPORT ANNEX

       

      to
        the
        Schedule to the 

       

      ISDA
        MASTER AGREEMENT 

       

      dated
        as of January 26, 2007

       

      between

      

      
        	
                MORGAN
                  STANLEY CAPITAL SERVICES INC.

              	
                and

              	
                DEUTSCHE
                  BANK NATIONAL TRUST COMPANY, not individually, but solely as Trustee
                  on
                  behalf of the Supplemental Interest Trust with respect to Morgan
                  Stanley
                  ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through Certificates,
                  Series 2007-NC1

              
	 	 	 
	
                (“Party
                  A”)

              	 	
                (“Party
                  B”)

              

      

      

      This
        Annex supplements, forms part of, and is subject to, the above-referenced
        Agreement, is part of its Schedule and is a Credit Support Document under
        this
        Agreement with respect to each party.

      

      Accordingly,
        the parties agree as follows: —

      

      Paragraph
        1. Interpretation

       

      (a)          Definitions
        and Inconsistency.
        Capitalized terms not otherwise defined herein or elsewhere in this Agreement
        have the meaning specified pursuant to Paragraph 12, and all references in
        this
        Annex to Paragraphs are to Paragraphs of this Annex. In the event of any
        inconsistency between this Annex and the other provisions of this Schedule,
        this
        Annex will prevail, and in the event of any inconsistency between Paragraph
        13
        and the other provisions of this Annex, Paragraph 13 will prevail.

       

      (b)          Secured
        Party and Pledgor.
        All
        references in this Annex to the “Secured Party” will be to either party when
        acting in that capacity and all corresponding references to the “Pledgor” will
        be to the other party when acting in that capacity; provided,
        however,
        that if
        Other Posted Support is held by a party to this Annex, all references herein
        to
        that party as the Secured Party with respect to that Other Posted Support
        will
        be to that party as the beneficiary thereof and will not subject that support
        or
        that party as the beneficiary thereof to provisions of law generally relating
        to
        security interests and secured parties.

       

      Paragraph
        2. Security Interest

       

      Each
        party, as the Pledgor, hereby pledges to the other party, as the Secured
        Party,
        as security for its Obligations, and grants to the Secured Party a first
        priority continuing security interest in, lien on and right of Set-off against
        all Posted Collateral Transferred to or received by the Secured Party hereunder.
        Upon the Transfer by the Secured Party to the Pledgor of Posted Collateral,
        the
        security interest and lien granted hereunder on that Posted Collateral will
        be
        released immediately and, to the extent possible, without any further action
        by
        either party.

       

      Paragraph
        3. Credit Support Obligations

       

      (a)        
         Delivery
        Amount.
        Subject
        to Paragraphs 4 and 5, upon demand made by the Secured Party on or promptly
        following a Valuation Date, if the Delivery Amount for that Valuation Date
        equals or exceeds the Pledgor’s Minimum Transfer Amount, then the Pledgor will
        Transfer to the Secured Party Eligible Credit Support having a Value as of
        the
        date of Transfer at least equal to the applicable Delivery Amount (rounded
        pursuant to Paragraph 13). Unless otherwise specified in Paragraph 13, the
        “Delivery
        Amount”
        applicable to the Pledgor for any Valuation Date will equal the amount by
        which:

       

      (i) the
        Credit Support Amount

       

      exceeds

       

      (ii) the
        Value
        as of that Valuation Date of all Posted Credit Support held by the Secured
        Party.

       

      (b)          Return
        Amount.
        Subject
        to Paragraphs 4 and 5, upon a demand made by the Pledgor on or promptly
        following a Valuation Date, if the Return Amount for that Valuation Date
        equals
        or exceeds the Secured Party’s Minimum Transfer Amount, then the Secured Party
        will Transfer to the Pledgor Posted Credit Support specified by the Pledgor
        in
        that demand having a Value as of the date of Transfer as close as practicable
        to
        the applicable Return Amount (rounded pursuant to Paragraph 13). Unless
        otherwise specified in Paragraph 13, the “Return
        Amount”
        applicable to the Secured Party for any Valuation Date will equal the amount
        by
        which:

       

      (i) the
        Value
        as of that Valuation Date of all Posted Credit Support held by the Secured
        Party

       

      exceeds

       

      (ii) the
        Credit Support Amount.

       

      “Credit
        Support Amount”
        means,
        unless otherwise specified in Paragraph 13, for any Valuation Date (i) the
        Secured Party’s Exposure for that Valuation Date plus (ii) the aggregate of all
        Independent Amounts applicable to the Pledgor, if any, minus (iii) all
        Independent Amounts applicable to the Secured Party, if any, minus (iv) the
        Pledgor’s Threshold; provided,
        however,
        that
        the Credit Support Amount will be deemed to be zero whenever the calculation
        of
        Credit Support Amount yields a number less than zero.

       

      Paragraph
        4. Conditions Precedent, Transfer Timing, Calculations and
        Substitutions

       

      (a)          Conditions
        Precedent.
        Each
        Transfer obligation of the Pledgor under Paragraphs 3 and 5 and of the Secured
        Party under Paragraphs 3, 4(d)(ii), 5 and 6(d) is subject to the conditions
        precedent that:

       

      (i) no
        Event
        of Default, Potential Event of Default or Specified Condition has occurred
        and
        is continuing with respect to the other party; and

       

      (ii) no
        Early
        Termination Date for which any unsatisfied payment obligations exist has
        occurred or been designated as the result of an Event or Default or Specified
        Condition with respect to the other party.

       

      (b)          Transfer
        Timing.
        Subject
        to Paragraphs 4(a) and 5 and unless otherwise specified, if a demand for
        the
        Transfer of Eligible Credit Support or Posted Credit Support is made by the
        Notification Time, then the relevant Transfer will be made not later than
        the
        close of business on the next Local Business Day; if a demand is made after
        the
        Notification Time, then the relevant Transfer will be made not later than
        the
        close of business on the second Local Business Day thereafter.

       

      (c)          Calculations.
        All
        calculations of Value and Exposure for purposes of Paragraphs 3 and 6(d)
        will be
        made by the Valuation Agent as of the Valuation Time. The Valuation Agent
        will
        notify each party (or the other party, if the Valuation Agent is a party)
        of its
        calculations not later than Notification Time on Local Business Day following
        the applicable Valuation Date (or in the case of Paragraph 6(d), following
        the
        date of calculation).

       

      (d)          Substitutions.

       

      (i) Unless
        otherwise specified in Paragraph 13, upon notice to the Secured Party specifying
        the items of Posted Credit Support to be exchanged, the Pledgor may, on any
        Local Business Day, Transfer to the Secured Party substitute Eligible Credit
        Support (the “Substitute Credit Support”); and

       

      (ii) subject
        to Paragraph 4(a), the Secured Party will Transfer to the Pledgor the items
        of
        Posted Credit Support specified by the Pledgor in its notice not later than
        the
        Local Business Day following the date on which the Secured Party receives
        the
        Substitute Credit Support, unless otherwise specified in Paragraph 13 (the
        “Substitution Date”); provided
        that the
        Secured Party will only be obligated to Transfer Posted Credit Support with
        a
        Value as of the date of Transfer of that Posted Credit Support equal to the
        Value as of that date of the Substitute Credit Support.

       

      Paragraph
        5. Dispute Resolution

       

      If
        a
        party (a “Disputing Party”) disputes (I) the Valuation Agent’s calculation of a
        Delivery Amount or a Return Amount or (II) the Value of any Transfer of Eligible
        Credit Support or Posted Credit Support, then (1) the Disputing Party will
        notify the other party and the Valuation Agent (if the Valuation Agent is
        not
        the other party) not later than the close of business on the Local Business
        Day
        following (X) the date that the demand is made under Paragraph 3 in the case
        of
        (I) above or (Y) the date of Transfer in the case of (II) above, (2) subject
        to
        Paragraph 4(a), the appropriate party will Transfer the undisputed amount
        to the
        other party not later than the close of business on the Local Business Day
        following (X) the date that the demand is made under Paragraph 3 in the case
        of
        (I) above or (Y) the date of Transfer in the case of (II) above, (3) the
        parties
        will consult with each other in an attempt to resolve the dispute and (4)
        if
        they fail to resolve the dispute by the Resolution Time, then:

       

      (i) In
        the
        case of a dispute involving a Delivery Amount or Return Amount, unless otherwise
        specified in Paragraph 13, the Valuation Agent will recalculate the Exposure
        and
        the Value as of the Recalculation Date by:

       

      (A) utilizing
        any calculations of Exposure for the Transactions (or Swap Transactions)
        that
        the parties have agreed are not in dispute;

       

      (B) calculating
        the Exposure for the Transactions (or Swap Transactions) in dispute by seeking
        four actual quotations at mid-market from Reference Market-makers for purposes
        of calculating Market Quotation, and taking the arithmetic average of those
        obtained; provided
        that if
        four quotations are not available for a particular Transaction (or Swap
        Transaction), then fewer than four quotations may be used for that Transaction
        (or Swap Transaction); and if no quotations are available for a particular
        Transaction (or Swap Transaction), then the Valuation Agent’s original
        calculations will be used for that Transaction (or Swap Transaction);
        and

       

      (C) utilizing
        the procedures specified in Paragraph 13 for calculating the Value, if disputed,
        of Posted Credit Support.

       

      (ii) In
        the
        case of a dispute involving the Value of any Transfer of Eligible Credit
        Support
        or Posted Credit Support, the Valuation Agent will recalculate the Value
        as of
        the date of Transfer pursuant to Paragraph 13.

       

      Following
        a recalculation pursuant to this Paragraph, the Valuation Agent will notify
        each
        party (or the other party, if the Valuation Agent is a party) not later than
        the
        Notification Time on the Local Business Day following the Resolution Time.
        The
        appropriate party will, upon demand following that notice by the Valuation
        Agent
        or a resolution pursuant to (3) above and subject to Paragraphs 4(a) and
        4(b),
        make the appropriate Transfer.

       

      Paragraph
        6. Holding and Using Posted Collateral

       

      (a)          Care
        of Posted Collateral.
        Without
        limiting the Secured Party’s rights under Paragraph 6(c), the Secured Party will
        exercise reasonable care to assure the safe custody of all Posted Collateral
        to
        the extent required by applicable law, and in any event the Secured Party
        will
        be deemed to have exercised reasonable care if it exercises at least the
        same
        degree of care as it would exercise with respect to its own property. Except
        as
        specified in the preceding sentence, the Secured Party will have no duty
        with
        respect to Posted Collateral, including, without limitation, any duty to
        collect
        any Distributions, or enforce or preserve any rights pertaining
        thereto.

       

      (b)          Eligibility
        to Hold Posted Collateral; Custodians.

       

      (i)
        General.
        Subject
        to the satisfaction of any conditions specified in Paragraph 13 for holding
        Posted Collateral, the Secured Party will be entitled to hold Posted Collateral
        or to appoint an agent (a “Custodian”) to hold Posted Collateral for the Secured
        Party. Upon notice by the Secured Party to the Pledgor of the appointment
        of a
        Custodian, the Pledgor’s obligations to make any Transfer will be discharged by
        making the Transfer to that Custodian. The holding of Posted Collateral by
        a
        Custodian will be deemed to be the holding of that Posted Collateral by the
        Secured Party for which the Custodian is acting.

       

      (ii)
        Failure
        to Satisfy Conditions.
        If the
        Secured Party or its Custodian fails to satisfy any conditions for holding
        Posted Collateral, then upon demand made by the Pledgor, the Secured Party
        will,
        not later than five Local Business Days after the demand, Transfer or cause
        its
        Custodian to Transfer all Posted Collateral held by it to a Custodian that
        satisfies those conditions or to the Secured Party if it satisfies those
        conditions.

       

      (iii)
        Liability.
        The
        Secured Party will be liable for the acts or omissions of its Custodian to
        the
        same extent that the Secured Party would be liable hereunder for its own
        acts or
        omissions.

       

      (c)          Use
        of Posted Collateral.
        Unless
        otherwise specified in Paragraph 13 and without limiting the rights and
        obligations of the parties under Paragraphs 3, 4(d)(ii), 5, 6(d) and 8, if
        the
        Secured Party is not a Defaulting Party or an Affected Party with respect
        to a
        Specified Condition and no Early Termination Date has occurred or been
        designated as the result of an Event of Default or Specified Condition with
        respect to the Secured Party, then the Secured Party will, notwithstanding
        Section 9-207 of the New York Uniform Commercial Code, have the right
        to:

       

      (i)
        sell,
        pledge, rehypothecate, assign, invest, use, commingle or otherwise dispose
        of,
        or otherwise use in its business any Posted Collateral it holds, free from
        any
        claim or right of any nature whatsoever of the Pledgor, including any equity
        or
        right of redemption by the Pledgor; and

       

      (ii)
        register any Posted Collateral in the name of the Secured Party, its Custodian
        or a nominee for either.

       

      For
        purposes of the obligation to Transfer Eligible Credit Support or Posted
        Credit
        Support pursuant to Paragraphs 3 and 5 and any rights or remedies authorized
        under this Agreement, the Secured Party will be deemed to continue to hold
        all
        Posted Collateral and to receive Distributions made thereon, regardless of
        whether the Secured Party has exercised any rights with respect to any Posted
        Collateral pursuant to (i) or (ii) above.

       

      (d)          Distributions
        and Interest Amount.

       

      (i)
        Distributions.
        Subject
        to Paragraph 4(a), if the Secured Party receives or is deemed to receive
        Distributions on a Local Business Day, it will Transfer to the Pledgor not
        later
        than the following Local Business Day any Distributions it receives or is
        deemed
        to receive to the extent that a Delivery Amount would not be created or
        increased by that Transfer, as calculated by the Valuation Agent (and the
        date
        of calculation will be deemed to be a Valuation Date for this
        purpose).

       

      (ii)
        Interest
        Amount.
        Unless
        otherwise specified in Paragraph 13 and subject to Paragraph 4(a), in lieu
        of
        any interest, dividends or other amounts paid or deemed to have been paid
        with
        respect to Posted Collateral in the form of Cash (all of which may be retained
        by the Secured Party), the Secured Party will Transfer to the Pledgor at
        the
        times specified in Paragraph 13 the Interest Amount to the extent that a
        Delivery Amount would not be created or increased by that Transfer, as
        calculated by the Valuation Agent (and the date of calculation will be deemed
        to
        be a Valuation Date for this purpose). The Interest Amount or portion thereof
        not Transferred pursuant to this Paragraph will constitute Posted Collateral
        in
        the form of Cash and will be subject to the security interest granted under
        Paragraph 2.

       

      Paragraph
        7. Events of Default

       

      For
        purposes of Section 5(a)(iii)(1) of this Agreement, an Event of Default will
        exist with respect to a party if:

       

      (i)
        that
        party fails (or fails to cause its Custodian) to make, when due, any Transfer
        of
        Eligible Collateral, Posted Collateral or the Interest Amount, as applicable,
        required to be made by it and that failure continues for two Local Business
        Days
        after notice of that failure is given to that party;

       

      (ii)
        that
        party fails to comply with any restriction or prohibition specified in this
        Annex with respect to any of the rights specified in Paragraph 6(c) and that
        failure continues for five Local Business Days after notice of that failure
        is
        given to that party; or

       

      (iii)
        that party fails to comply with or perform any agreement or obligation other
        than those specified in Paragraphs 7(i) and 7(ii) and that failure continues
        for
        30 days after notice of that failure is given to that party.

       

      Paragraph
        8. Certain Rights and Remedies

       

      (a)          Secured
        Party’s Rights and Remedies.
        If at
        any time (1) an Event of Default or Specified Condition with respect to the
        Pledgor has occurred and is continuing or (2) an Early Termination Date as
        occurred or been designated as the result of an Event of Default or Specified
        Condition with respect to the Pledgor, then, unless the Pledgor has paid
        in full
        all of its Obligations that are then due, the Secured Party may exercise
        one or
        more of the following rights and remedies:

       

      (i)
        all
        rights and remedies available to a secured party under applicable law with
        respect to Posted Collateral held by the Secured Party;

       

      (ii)
        any
        other rights and remedies available to the Secured Party under the terms
        of
        Other Posted Support, if any;

       

      (iii)
        the
        right to Set-off any amounts payable by the Pledgor with respect to any
        Obligations against any Posted Collateral or the Cash equivalent of any Posted
        Collateral held by the Secured Party (or any obligation of the Secured Party
        to
        Transfer that Posted Collateral); and

       

      (iv)
        the
        right to liquidate any Posted Collateral held by the Secured Party through
        one
        or more public or private sales or other dispositions with such notice, if
        any,
        as may be required under applicable law, free from any claim or right of
        any
        nature whatsoever of the Pledgor, including any equity or right of redemption
        by
        the Pledgor (with the Secured Party having the right to purchase any or all
        of
        the Posted Collateral to be sold) and to apply the proceeds (or the Cash
        equivalent thereof) from the liquidation of the Posted Collateral to any
        amounts
        payable by the Pledgor with respect to any Obligations in that order as the
        Secured Party may elect.

       

      Each
        party acknowledges and agrees that Posted Collateral in the form of Securities
        may decline speedily in value and is of a type customarily sold on a recognized
        market, and accordingly, the Pledgor is not entitled to prior notice of any
        sale
        of that Posted Collateral by the Secured Party, except any notice that is
        required under applicable law and cannot be waived.

       

      (b)          Pledgor’s
        Rights and Remedies.
        If at
        any time an Early Termination Date has occurred or been designated as the
        result
        of an Event of Default or Specified Condition with respect to the Secured
        Party,
        then (except in the case of an Early Termination Date relating to less than
        all
        Transactions (or Swap Transactions) where the Secured Party has paid in full
        all
        of its obligations that are then due under Section 6(e) of this
        Agreement);

       

      (i)
        the
        Pledgor may exercise all rights and remedies available to a pledgor under
        applicable law with respect to Posted Collateral held by the Secured
        Party;

       

      (ii)
        the
        Pledgor may exercise any other rights and remedies available to the Pledgor
        under the terms of Other Posted Support, if any;

       

      (iii)
        the
        Secured Party will be obligated immediately to Transfer all Posted Collateral
        and the Interest Amount to the Pledgor; and

       

      (iv)
        to
        the extent that Posted Collateral or the Interest Amount is not so Transferred
        pursuant to (iii) above, the Pledgor may:

       

      (A)
        Set-off any amounts payable by the Pledgor with respect to any Obligations
        against any Posted Collateral or the Cash equivalent of any Posted Collateral
        held by the Secured Party (or any obligation of the Secured Party to Transfer
        that Posted Collateral); and

       

      (B)
        to
        the extent that the Pledgor does not Set-off under (iv)(A) above, withhold
        payment of any remaining amounts payable by the Pledgor with respect to any
        Obligations, up to the Value of any remaining Posted Collateral held by the
        Secured Party, until that Posted Collateral is Transferred to the
        Pledgor.

       

      (c)          Deficiencies
        and Excess Proceeds.
        The
        Secured Party will Transfer to the Pledgor any proceeds and Posted Credit
        Support remaining after liquidation, Set-off and/or application under Paragraphs
        8(a) and 8(b) after satisfaction in full of all amounts payable by the Pledgor
        with respect to any Obligations; the Pledgor in all events will remain liable
        for any amounts remaining unpaid after any liquidation, Set-off and/or
        application under Paragraphs 8(a) and 8(b).

       

      (d)          Final
        Returns.
        When no
        amounts are or thereafter may become payable by the Pledgor with respect
        to any
        Obligations (except for any potential liability under Section 2(d) of this
        Agreement), the Secured Party will Transfer to the Pledgor all Posted Credit
        Support and the Interest Amount, if any.

       

      Paragraph
        9. Representations

       

      Each
        party represents to the other party (which representations will be deemed
        to be
        repeated as of each date on which it, as the Pledgor, Transfers Eligible
        Collateral) that;

       

      (i)
        it
        has the power to grant a security interest in and lien on any Eligible
        Collateral it Transfers as the Pledgor and has taken all necessary actions
        to
        authorize the granting of that security interest and lien;

       

      (ii)
        it
        is the sole owner of or otherwise has the right to Transfer all Eligible
        Collateral it Transfers to the Secured Party hereunder, free and clear of
        any
        security interest, lien, encumbrance or other restrictions other than the
        security interest and lien granted under Paragraph 2;

       

      (iii)
        upon the Transfer of any Eligible Collateral to the Secured Party under the
        terms of this Annex, the Secured Party will have a valid and perfected first
        priority security interest therein (assuming that any central clearing
        corporation or any third-party financial intermediary or other entity not
        within
        the control of the Pledgor involved in the Transfer of that Eligible Collateral
        gives the notices and takes the action required of it under applicable law
        for
        perfection of that interest); and

       

      (iv)
        the
        performance by it of its obligations under this Annex will not result in
        the
        creation of any security interest, lien or other encumbrance on any Posted
        Collateral other than the security interest and lien granted under Paragraph
        2.

       

      Paragraph
        10. Expenses

       

      (a)          General.
        Except
        as otherwise provided in Paragraphs 10(b) and 10(c), each party will pay
        its own
        costs and expenses in connection with performing its obligations under this
        Annex and neither party will be liable for any costs and expenses incurred
        by
        the other party in connection herewith.

       

      (b)          Posted
        Credit Support.
        The
        Pledgor will promptly pay when due all taxes, assessments or charges of any
        nature that are imposed with resect to Posted Credit Support held by the
        Secured
        Party upon becoming aware of the same, regardless of whether any portion
        of that
        Posted Credit Support is subsequently disposed of under Paragraph 6(c), except
        for those taxes, assessments and charges that result from the exercise of
        the
        Secured Party’s rights under Paragraph 6(c).

       

      (c)          Liquidation/Application
        of Posted Credit Support.
        All
        reasonable costs and expenses incurred by or on behalf of the Secured Party
        or
        the Pledgor in connection with the liquidation and/or application of any
        Posted
        Credit Support under Paragraph 8 will be payable, on demand and pursuant
        to the
        Expenses Section of this Agreement, by the Defaulting Party or, if there
        is not
        Defaulting Party, equally by the parties.

       

      Paragraph
        11. Miscellaneous

       

      (a)          Default
        Interest.
        A
        Secured Party that fails to make, when due, any Transfer of Posted Collateral
        or
        the Interest Amount will be obligated to pay the Pledgor (to the extent
        permitted under applicable law) an amount equal to interest at the Default
        Rate
        multiplied by the Value of the items of property that were required to be
        Transferred, from (and including) the date that Posted Collateral or Interest
        Amount was required to be Transferred to (but excluding) the date of Transfer
        of
        that Posted Collateral or Interest Amount. This interest will be calculated
        on
        the basis of daily compounding and the actual number of days
        elapsed.

       

      (b)          Further
        Assurances.
        Promptly
        following a demand made by a party, the other party will execute, deliver,
        file
        and record any financing statement, specific assignment or other document
        and
        take any other action that may be necessary or desirable and reasonably
        requested by that party to create, preserve, perfect or validate any security
        interest or lien granted under Paragraph 2, to enable that party to exercise
        or
        enforce its rights under this Annex with respect to Posted Credit Support
        or an
        Interest Amount or to effect or document a release of a security interest
        on
        Posted Collateral or an Interest Amount.

       

      (c)          Further
        Protection.
        The
        Pledgor will promptly give notice to the Secured Party of, and defend against,
        any suit, action, proceeding or lien that involves Posted Credit Support
        Transferred by the Pledgor or that could adversely affect the security interest
        and lien granted by it under Paragraph 2, unless that suit, action, proceeding
        or lien results from the exercise of the Secured Party’s rights under Paragraph
        6(c).

       

      (d)          Good
        Faith and Commercially Reasonable Manner.
        Performance of all obligations under this Annex, including, but not limited
        to,
        all calculations, valuations and determinations made by either party, will
        be
        made in good faith and in a commercially reasonable manner.

       

      Demands
        and Notices.
        All
        demands and notices made by a party under this Annex will be made as specified
        in the Notices Section of this Agreement, except as otherwise provided in
        Paragraph 13.

       

      (f)          Specifications
        of Certain Matters.
        Anything
        referred to in this Annex as being specified in Paragraph 13 also may be
        specified in one or more Confirmations or other documents and this Annex
        will be
        construed accordingly.

       

      Paragraph
        12. Definitions

       

      As
        used
        in this Annex:—

       

      “Cash”
        means
        the lawful currency of the United States of America.

       

      “Credit
        Support Amount”
        has the
        meaning specified in Paragraph 3.

       

      “Custodian”
        has the
        meaning specified in Paragraphs 6(b)(i) and 13.

       

      “Delivery
        Amount”
        has the
        meaning specified in Paragraph 3(a).

       

      “Disputing
        Party”
        has the
        meaning specified in Paragraph 5.

       

      “Distributions”
        means
        with respect to Posted Collateral other than Cash, all principal, interest
        and
        other payments and distributions of cash or other property with respect thereto,
        regardless of whether the Secured Party has disposed of that Posted Collateral
        under Paragraph 6(c). Distributions will not include any item of property
        acquired by the Secured Party upon any disposition or liquidation of Posted
        Collateral or, with respect to any Posted Collateral in the form of Cash,
        any
        distributions on that collateral, unless otherwise specified
        herein.

       

      “Eligible
        Collateral”
        means,
        with respect to a party, the items, if any, specified as such for that party
        in
        Paragraph 13.

       

      “Eligible
        Credit Support”
        means
        Eligible Collateral and Other Eligible Support.

       

      “Exposure”
        means
        for any Valuation Date or other date for which Exposure is calculated and
        subject to Paragraph 5 in the case of a dispute, the amount, if any, that
        would
        be payable to a party that is the Secured Party by the other party (expressed
        as
        a positive number) or by a party that is the Secured Party to the other party
        (expressed as a negative number) pursuant to Section 6(e)(ii)(2)(A) of this
        Agreement as if all Transactions (or Swap Transactions) were being terminated
        as
        of the relevant Valuation Time; provided
        that
        Market Quotation will be determined by the Valuation Agent using its estimates
        at mid-market of the amounts that would be paid for Replacement Transactions
        (as
        that term is defined in the definition of “Market Quotation”).

       

      “Independent
        Amount”
        means
        with respect to a party, the amount specified as such for that party in
        Paragraph 13; if no amount is specified, zero.

       

      “Interest
        Amount”
        means,
        with respect to an Interest Period, the aggregate sum of the amounts of interest
        calculated for each day in that Interest Period on the principal amount of
        Posted Collateral in the form of Cash held by the Secured Party on that day,
        determined by the Secured Party for each such days as follows:

       

      (x)
        the
        amount of that Cash on that day; multiplied by

       

      (y)
        the
        Interest Rate in effect for that day; divided by

       

      (z)
        360.

       

      “Interest
        Period”
        means
        the period from (and including) the last Local Business Day on which an Interest
        Amount was Transferred (or, if no Interest Amount has yet been Transferred,
        the
        Local Business Day on which Posted Collateral in the form of Cash was
        Transferred to or received by the Secured Party) to (but excluding) the Local
        Business Day on which the current Interest Amount is to be
        Transferred.

       

      “Interest
        Rate”
        means
        the rate specified in Paragraph 13.

       

      “Local
        Business Day”,
        unless
        otherwise specified in Paragraph 13, has the meaning specified in the
        Definitions Section of this Agreement, except that references to a payment
        in
        clause (b) thereof will be deemed to include a Transfer under this
        Annex.

       

      “Minimum
        Transfer Amount”
        means,
        with respect to a party, the amount specified as such for that party in
        Paragraph 13; if no amount is specified, zero.

       

      “Notification
        Time”
        has the
        meaning specified in Paragraph 13.

       

      “Obligations”
        means,
        with a respect to a party, all present and future obligations of that party
        under this Agreement and any additional obligations specified for that party
        in
        Paragraph 13.

       

      “Other
        Eligible Support”
        means,
        with respect to a party, the items, if any, specified as such for that party
        in
        Paragraph 13.

       

      “Other
        Posted Support”
        means
        all Other Eligible Support Transferred to the Secured Party that remains
        in
        effect for the benefit of that Secured Party.

       

      “Pledgor”
        means
        either party, when that party (i) receives a demand for or is required to
        Transfer Eligible Credit Support under Paragraph 3(a) or (ii) has Transferred
        Eligible Credit Support under Paragraph 3(a).

       

      “Posted
        Collateral”
        means
        all Eligible Collateral, other property, Distributions, and all proceeds
        thereof
        that have been Transferred to or received by the Secured Party under this
        Annex
        and not Transferred to the Pledgor pursuant to Paragraph 3(b), 4(d)(ii) or
        6(d)(i) or released by the Secured Party under Paragraph 8. Any Interest
        Amount
        or portion thereof not Transferred pursuant to Paragraph 6(d)(ii) will
        constitute Posted Collateral in the form of Cash.

       

      “Posted
        Credit Support”
        means
        Posted Collateral and Other Posted Support.

       

      “Recalculation
        Date”
        means
        that Valuation Date that gives rise to the dispute under Paragraph 5;
provided,
        however,
        that if
        a subsequent Valuation Date occurs under Paragraph 3 prior to the resolution
        of
        the dispute, then the “Recalculation Date” means the most recent Valuation Date
        under Paragraph 3.

       

      “Resolution
        Time”
        has the
        meaning specified in Paragraph 13.

       

      “Return
        Amount”
        has the
        meaning specified in Paragraph 3(b).

       

      “Secured
        Party”
        means
        either party, when that party (i) makes a demand for or is entitled to receive
        Eligible Credit Support under Paragraph 3(a) or (ii) holds or is deemed to
        hold
        Posted Credit Support.

       

      “Specified
        Condition”
        means,
        with respect to a party, any event specified as such for that party in Paragraph
        13.

       

      “Substitute
        Credit Support”
        has the
        meaning specified in Paragraph 4(d)(i).

       

      “Substitution
        Date”
        has the
        meaning specified in Paragraph 4(d)(ii).

       

      “Threshold”
        means,
        with respect to a party, the amount specified as such for that party in
        Paragraph 13; if not amount is specified, zero.

       

      “Transfer”
        means,
        with respect to any Eligible Credit Support, Posted Credit Support or Interest
        Amount, and in accordance with the instructions of the Secured Party, Pledgor
        or
        Custodian, as applicable;

       

      (i)
        in
        the case of Cash, payment or delivery by wire transfer into one or more bank
        accounts specified by the recipient;

       

      (ii)
        in
        the case of certificated securities that cannot be paid or delivered by
        book-entry, payment or delivery in appropriate physical form to the recipient
        or
        its account accompanied by any duly executed instruments of transfer,
        assignments in blank, transfer tax stamps and any other documents necessary
        to
        constitute a legally valid transfer to the recipient;

       

      (iii)
        in
        the case of securities that can be paid or delivered by book-entry, the giving
        of written instructions to the relevant depository institution or other entity
        specified by the recipient, together with a written copy thereof to the
        recipient, sufficient if complied with to result in a legally effective transfer
        of the relevant interest to the recipient; and

       

      (iv)
        in
        the case of Other Eligible Support or Other Posted Support, as specified
        in
        Paragraph 13.

       

      “Valuation
        Agent”
        has the
        meaning specified in Paragraph 13.

       

      “Valuation
        Date”
        means
        each date specified in or otherwise determined pursuant to Paragraph
        13.

       

      “Valuation
        Percentage”
        means,
        for any item of Eligible Collateral, the percentage specified in Paragraph
        13.

       

      “Valuation
        Time”
        has the
        meaning specified in Paragraph 13.

       

      “Value”
        means
        for any Valuation Date or other date for which Value is calculated and subject
        to Paragraph 5 in the case of a dispute, with respect to;

       

      (i)
        Eligible Collateral or Posted Collateral that is;

       

      (A) Cash,
        the
        amount thereof; and

       

      (B) a
        security, the bid price obtained by the Valuation Agent multiplied by the
        applicable Valuation Percentage, if any;

       

      (ii)
        Posted Collateral that consists of items that are not specified as Eligible
        Collateral, zero; and

       

      (iii)
        Other Eligible Support and Other Posted Support, as specified in Paragraph
        13.

       

      
        Paragraph
          13. Elections
          and Variables

         

        
          	
                  (a)

                	
                  Security
                    Interest for “Obligations”.
                    The term “Obligations”
                    as used in this Annex includes the following additional obligations
                    with
                    respect to Party A and Party B:
                    None.

                

        

         

        
          	
                  (b)

                	
                  Credit
                    Support Obligations.

                

        

         

        
          	 	
                  (i)

                	
                  “Delivery
                    Amount”
                    and “Return
                    Amount” each
                    has the meaning specified in Paragraph 3; provided that, in the
                    event that
                    Party A elects or is required to post collateral pursuant to
                    a ratings
                    downgrade by S&P and Moody’s, (1) the Delivery Amount shall be
                    calculated by reference to the requirements set forth by the
                    rating agency
                    that would result in Party A transferring the greater amount
                    of Eligible
                    Credit Support and (2) the Return Amount shall be calculated
                    by reference
                    to the requirements set forth by the rating agency that would
                    result in
                    Party B transferring the least amount of Posted Credit Support.
                    “Credit
                    Support Amount”
                    has the meaning specified below:

                

        

         

        
          	 	
                  (A)

                	
                  in
                    the event Party A elects or is required to post collateral pursuant
                    to
                    Part 5(f)(iii) or (iv) of the Schedule due to a ratings downgrade
                    or
                    withdrawal by S&P, “Credit
                    Support Amount”
                    shall have the meaning specified in Table 1 attached hereto;
                    and

                

        

         

        
          	 	
                  (B)

                	
                  in
                    the event Party A elects to post collateral pursuant to Part
                    5(f)(i) of
                    the Schedule due to a ratings downgrade by Moody’s below the Moody’s First
                    Tier Required Swap Counterparty Rating, “Credit
                    Support Amount”
                    shall have the meaning specified in Table 2A or Table 2B, as
                    applicable,
                    attached hereto; and 

                

        

         

        
          	 	
                  (C)

                	
                  in
                    the event Party A is required to post collateral pursuant to
                    Part 5(f)(ii)
                    of the Schedule due to a ratings downgrade or withdrawal by Moody’s below
                    the Moody’s Second Tier Required Swap Counterparty Rating, “Credit
                    Support Amount”
                    shall have the meaning specified in Table 3A or 3B, as applicable,
                    attached hereto.

                

        

         

        In
          the
          event Party A or its Credit Support Provider does not have a Long-Term
          Rating of
          at least “BBB+” from S&P, the Valuation Agent shall verify its calculation
          of the Secured Party’s Exposure on a quarterly basis by seeking two quotations
          from Reference Market-makers. If two Reference Market-makers are not available
          to provide a quotation, then fewer than two Reference Market-makers may
          be used
          for such purpose. If no Reference Market-makers are available, then the
          Valuation Agent’s estimates at mid-market will be used. The Valuation Agent may
          not obtain the quotations referred to above from the same person in excess
          of
          four times during any 12 month period. Where more than one quotation is
          obtained, the quotation representing the greatest amount of Exposure shall
          be
          used by the Valuation Agent. In the event the verification procedures set
          forth
          above indicate that there is a deficiency in the amount of Eligible Collateral
          that has been Transferred to the Secured Party, the Pledgor shall Transfer
          the
          amount of Eligible Collateral necessary to cure such deficiency to the
          Secured
          Party within three Local Business Days. The Valuation Agent shall provide
          to S&P its calculations of the Secured Party’s Exposure for that Valuation
          Date. The Valuation Agent shall also provide to S&P any external marks
          received pursuant to this paragraph.

         

        
          	 	
                  (ii)

                	
                  Eligible
                    Collateral. 

                

        

         

        
          	 	
                  (A)

                	
                  In
                    the event Party A elects or is required to post collateral pursuant
                    to
                    Part 5(f) of the Schedule due to a ratings downgrade or withdrawal
                    by
                    S&P, the items specified in Table 4 attached hereto will qualify
                    as
                    “Eligible
                    Collateral” for
                    Party A.

                

        

         

        
          	 	
                  (B)

                	
                  In
                    the event Party A elects to post collateral pursuant to Part
                    5(f)(i) of
                    the Schedule due to a ratings downgrade by Moody’s below the Moody’s First
                    Tier Required Swap Counterparty Rating, the items specified in
                    Table 5
                    attached hereto will qualify as “Eligible
                    Collateral” for
                    Party A.

                

        

         

        
          	 	
                  (C)

                	
                  In
                    the event Party A is required to post collateral pursuant to
                    Part 5(f)(ii)
                    of the Schedule due to a ratings downgrade or withdrawal by Moody’s below
                    the Moody’s Second Tier Required Swap Counterparty Rating, the items
                    specified in Table 6 attached hereto will qualify as “Eligible
                    Collateral” for
                    Party A.

                

        

         

        
          	 	
                  (iii)

                	
                  Other
                    Eligible Support:
                    Not applicable.

                

        

         

        
          	 	
                  (iv)

                	
                  Thresholds.

                

        

         

        
          	 	
                  (A)

                	
                  “Independent
                    Amount”
                    means, with respect to Party A, not applicable in the event Party A
                    elects or is required to post collateral pursuant to Part 5(f)
                    of the
                    Schedule due to a ratings downgrade or withdrawal by S&P or Moody’s.
                    

                

        

         

        “Independent
          Amount”
means,
          with respect to Party B, zero.

         

        (B)       
           “Threshold”
means
          with, respect to Party A, not
          applicable in the event Party A elects or is required to post collateral
          pursuant to Part 5(f) of the Schedule due to a ratings downgrade or withdrawal
          by S&P or Moody’s.

         

        “Threshold”
means
          with respect to Party B: Infinite.

        “Minimum
          Transfer Amount”
means
          with respect to Party A: USD 50,000; and with respect to Party B: USD 50,000;
          provided, however, that if such party is a Defaulting Party at the time,
          

        “Minimum
          Transfer Amount”
          shall
          mean zero with respect to such party.

         

        
          	 	
                  (C)

                	
                  Rounding.
                    The Delivery Amount will be rounded up to the nearest multiple
                    of $1000
                    and the Return Amount will be rounded down to the nearest multiple
                    of
                    $1000.

                

        

         

        
          	 	
                  (v)

                	
                  “Exposure”
                    has the meaning specified in Paragraph 12, except that after
                    the word
                    “Agreement” in the fourth line thereof the words “(assuming, for this
                    purpose only, that Part 1(f)(ii) of the Schedule is deleted)” shall be
                    inserted.

                

        

         

        
          	
                  (c)

                	
                  Valuation
                    and Timing.

                

        

         

        
          	 	
                  (i)

                	
                  “Valuation
                    Agent”
                    means Party A.

                

        

         

        
          	 	
                  (ii)

                	
                  “Valuation
                    Date”
                    means (A) each and every Wednesday commencing on the first such date
                    following the date hereof or if any Wednesday is not a Local
                    Business Day,
                    the next succeeding Local Business Day and (B) any other Local
                    Business Day on which notice is made before 12:00 noon, New York
                    time on
                    the immediately preceding Local Business
                    Day.

                

        

         

        
          	 	
                  (iii)

                	
                  “Valuation
                    Time” means
                    the close of business in New York on the New York Banking Day
                    before the
                    Valuation Date or date of calculation, as applicable, or any
                    time on the
                    Valuation Date or date of calculation, as applicable; provided
                    that the calculations of Value and Exposure will be made as of
                    approximately the same time on the same
                    date.

                

        

         

        
          	 	
                  (iv)

                	
                  “Notification
                    Time”
                    means 1:00 p.m., New York time, on a Local Business Day.
                    

                

        

         

        
          	 	
                  (v)

                	
                  The
                    Valuation Agent’s calculations pursuant to the terms hereof shall be made
                    in accordance with standard market practice, using commonly accepted
                    third
                    party sources that comply with S&P’s criteria (e.g. Bloomberg, Bridge
                    Information Services, Reuters and
                    Telerate).

                

        

         

        
          	
                  (d)

                	
                  Conditions
                    Precedent and Secured Party’s Rights and
                    Remedies.
                    The following Termination Events will be a “Specified
                    Condition”
                    for the party specified (that party being the Affected Party
                    of the
                    Termination Event occurs with respect to that party): Not
                    Applicable.

                

        

         

        
          	
                  (e)

                	
                  Substitution.

                

        

         

        
          	 	
                  (i)

                	
                  “Substitution
                    Date” has
                    the meaning specified in Paragraph
                    4(d)(ii).

                

        

         

        
          	 	
                  (ii)

                	
                  Consent.
                    The Pledgor need not obtain the Secured Party's consent for any
                    substitution pursuant to Paragraph
                    4(d).

                

        

         

        
          	
                  (f)

                	
                  Dispute
                    Resolution.

                

        

         

        
          	 	
                  (i)

                	
                  “Resolution
                    Time” means
                    1:00 p.m., New York time, on the Local Business Day following
                    the date on
                    which the notice of the dispute is given under Paragraph
                    5.

                

        

         

        
          	 	
                  (ii)

                	
                  Value.
                    For the purpose of Paragraphs 5(i)(C) and 5(ii), the Value of
                    Posted
                    Credit Support or of any Transfer of Eligible Credit Support
                    or Posted
                    Credit Support, as the case may be, will be calculated by the
                    Valuation
                    Agent in accordance with standard market practice using third
                    party
                    sources (such as, by way of example only, Bloomberg or Reuters)
                    where
                    available.

                

        

         

        
          	 	
                  (iii)

                	
                  Alternative.
                    The provisions of Paragraph 5 will
                    apply.

                

        

         

        
          	
                  (g)

                	
                  Holding
                    and Using Posted Collateral.
                    

                

        

         

        
          	 	
                  (i)

                	
                  Eligibility
                    to Hold Posted Collateral; Custodian.
                    

                

        

         

        Party B
          and its Custodian will be entitled to hold Posted Collateral pursuant to
          Paragraph 6(b); provided
          that the
          following conditions applicable to it are satisfied:

         

        
          	 	
                  (A)

                	
                  Party B
                    is not a Defaulting Party.

                

        

         

        
          	 	
                  (B)

                	
                  Posted
                    Collateral may be held only in the following jurisdictions: the
                    United
                    States of America. 

                

        

         

        
          	 	
                  (C)

                	
                  Party
                    B’s Custodian (or its parent) shall have a Long Term Rating by
                    S&P of
                    at least “A” and a Short Term Rating by S&P of at least “A-1” by
                    S&P.

                

        

         

        Initially,
          the Custodian
          for
          Party B is the Trustee.

         

        
          	 	
                  (ii)

                	
                  Use
                    of Posted Collateral.
                    The provisions of Paragraph 6(c) will apply.

                

        

         

        
          	
                  (h)

                	
                  Distributions
                    and Interest Amount.

                

        

         

        
          	 	
                  (i)

                	
                  “Interest
                    Rate”.
                    The “Interest
                    Rate”
                    shall be the rate actually earned by Party B on Posted Collateral
                    in the
                    form of Cash.

                

        

         

        
          	 	
                  (ii)

                	
                  Transfer
                    of Interest Amount.
                    The Transfer of the Interest Amount will be made on the last
                    Local
                    Business Day of each calendar month and on any Local Business
                    Day that
                    Posted Collateral in the form of Cash is Transferred to the Pledgor
                    pursuant to Paragraph 3(b).

                

        

         

        
          	 	
                  (iii)

                	
                  Alternative
                    to Interest Amount.
                    The provisions of Paragraph 6(d)(ii) will
                    apply.

                

        

         

        
          	
                  (i)

                	
                  Additional
                    Representation(s).
                    None.

                

        

         

        
          	
                  (j)

                	
                  Other
                    Eligible Support and Other Posted Support.“Value”
                    and “Transfer” with
                    respect to Other Eligible Support and Other Posted Support each
                    means: Not
                    applicable.

                

        

         

        
          	
                  (k)

                	
                  Demands
                    and Notices.

                

        

         

        
          	 	
                  (i)

                	
                  All
                    demands, specifications and notices to Party A under this Annex will
                    be made to:

                

        

         

        Morgan
          Stanley Capital Services Inc.

        1585
          Broadway

        FID
          Controllers

        New
          York,
          NY 10036

        Attn:
          FID
          Collateral Manager

        Telephone
          No.: (212) 761-0877

        Facsimile
          No.: (212) 507-4949

        Email:
          nyfidcoll@morganstanley.com

         

        and
          all
          demands, specifications and notices to Party B under this Annex will be
          to:

         

        Deutsche
          Bank National Trust Company, as trustee of the Trust

        1761
          East
          St. Andrew Place

        Santa
          Ana, California 92705-4934

        Attention:
          Trust Administration - MS07C1

        Facsimile:
          (714) 656-2626

        Phone:
          (714) 247-6000

         

        ;
          provided
          that any
          demand, specification or notice may be made by telephone (“Telephone
          Notice”)
          between employees of each party if such Telephone Notice is confirmed by
          a
          subsequent written instruction (which may be delivered via facsimile or
          email)
          by the close of business on the same day that such Telephone Notice is
          given.

         

        
          	 	
                  (ii)

                	
                  Demand
                    for Collateral.
                    Without prejudice to any provision of this Agreement, if a Delivery
                    Amount
                    for a Valuation Date equals or exceeds the Pledgor’s Minimum Transfer
                    Amount, then the Pledgor will, without prior demand by the Secured
                    Party,
                    Transfer to the Secured Party Eligible Credit Support in accordance
                    with
                    Paragraph 3(a).

                

        

         

        
          	
                  (l)

                	
                  Addresses
                    for Transfers.

                

        

         

        

          
            	 	
                    Party A:

                  	 
	 	
                    Cash:

                  	
                    CITIBANK,
                      New York

                  
	 	
                    ABA
                      No.: 

                  	
                    021
                      000 089

                  
	 	
                    Account
                      No.:

                  	
                    4072
                      - 4601

                  
	 	 	 
	 	
                    Treasury
                      Securities

                  	 
	 	
                    and
                      Agency Notes:

                  	
                    Bank
                      of New York, New York/Morgan Stanley & Co.
                      Incorporated

                  
	 	
                    ABA
                      No.:

                  	
                    021000018

                  
	 	 
	 	
                    Other
                      Forms of Eligible Collateral: As provided by
                      Party A.

                  
	 	 
	 	
                    Party B:
                      

                  	 
	 	
                    Cash:

                  	
                    Deutsche
                      Bank

                  
	 	
                    ABA
                      No.: 

                  	
                    021001033

                  
	 	
                    Account
                      No.:

                  	
                    01419663

                  
	 	
                    Account
                      Name:

                  	
                    NYLTD
                      Funds Control - Stars West

                  
	 	
                    Ref:

                  	
                    Morgan
                      Stanley ABS Capital I Inc. Trust 2007-NC1

                  
	 	 	 
	 	DTC
                    Eligible
                    Securities: As provided by
                    Party B

          

        

         

         

        
          	
                  (m)

                	
                  Other
                    Provisions.

                

        

         

        
          	 	
                  (i)

                	
                  Notwithstanding
                    any other provision in this Agreement to the contrary, no full
                    or partial
                    failure to exercise and no delay in exercising, on the part of
                    Party A or Party B, any right, remedy, power or privilege
                    permitted hereunder shall operate in any way as a waiver thereof
                    by such
                    party, including without limitation any failure to exercise or
                    any delay
                    in exercising to any or to the full extent of such party's rights
                    with
                    respect to transfer timing pursuant to Paragraph 4(b), regardless
                    of the
                    frequency of such failure or delay.

                

        

         

        
          	 	
                  (ii)

                	
                  In
                    all cases, in order to facilitate calculation of the Delivery
                    Amount and
                    the Return Amount for a particular Valuation Date in accordance
                    with
                    Paragraph 3 of this Annex: 

                

        

         

        
          	 	
                  (A)

                	
                  Eligible
                    Collateral;

                

        

         

        
          	 	
                  (B)

                	
                  Exposure;
                    and

                

        

         

        
          	 	
                  (C)

                	
                  Posted
                    Collateral

                

        

         

        shall
          each be expressed in US Dollars. If any of these items are expressed in
          a
          currency other than US Dollars, then they shall be converted into US Dollar
          amounts at the spot exchange rate determined by the Valuation Agent on
          that
          Valuation Date.

         

        
          	 	
                  (iii)

                	
                  Form
                    of Annex.
                    The parties hereby agree that the text of the body of this Annex
                    is
                    intended to be the printed form of 1994 ISDA Credit Support Annex
                    (Bilateral Form - ISDA Agreements Subject to New York Law Only
                    version) as
                    published and copyrighted by the International Swaps and Derivatives
                    Association, Inc.

                

        

         

        
          	
                  (n)

                	
                  Agreement
                    as to Single Secured Party and Pledgor.
                    Party A and Party B agree that, notwithstanding anything to the
                    contrary in the recital to this Annex, Paragraph 1(b) or Paragraph
                    2 or
                    the definitions of Paragraph 12, (a) the term “Secured
                    Party”
                    as used in this Annex shall mean only Party B, (b) the term
                    “Pledgor”
                    as used in this Annex shall mean only Party A, (c) only
                    Party A makes the pledge and grant in Paragraph 2, the
                    acknowledgement in the final sentence of Paragraph 8(a) and the
                    representations in paragraph 9 and (d) only Party A will be
                    required to make Transfers of Eligible Credit Support
                    hereunder.

                

        

         

        
          	
                  (o)

                	
                  Events
                    of Default.
                    Paragraph 7(ii) and (iii) will not apply to Party
                    B.

                

        

         

        
          	
                  (p)

                	
                  Expenses.
                    For the avoidance of doubt, Party A shall be responsible for
                    posting
                    collateral in accordance with this Credit Support Annex at its
                    own cost
                    and any cost incurred by it in complying with its obligations
                    hereunder.

                

        

         

        
          	
                  (q)

                	
                  Additional
                    Definitions

                

        

         

        “Agency
          Notes”
means
          U.S. Dollar-denominated fixed rate, non-amortising, non-mortgage-backed,
          senior
          debt securities of fixed maturity, rated Aaa by Moody's and AAA by S&P
          issued by any of the Federal Home Loan Banks (including their consolidated
          obligations issued through the Office of Finance of the Federal Home Loan
          Bank
          System), the Federal National Mortgage Association, the Federal Home Loan
          Mortgage Corporation or the Federal Farm Credit Bank.

         

        “Commercial
          Paper” means
          U.S. Dollar-denominated, coupon-bearing, commercial paper issued by a
          corporation, finance company, partnership or limited liability
          company. 

         

        “Treasury
          Securities”
means
          U.S. Dollar-denominated, coupon-bearing, senior debt securities of the
          United
          States of America issued by the U.S. Treasury Department and backed by
          the full
          faith and credit of the United States of America.

         

        
          	
                  (r)

                	
                  Trustee
                    Capacity.
                    It is expressly understood and agreed by the parties hereto that
                    insofar
                    as this Annex is executed by Deutsche Bank National Trust Company
                    (i) this Annex is executed and delivered by Deutsche Bank National
                    Trust Company not in its individual capacity but solely as Trustee
                    under
                    the PSA in the exercise of the powers and authority conferred
                    and invested
                    in it as trustee thereunder, (ii) each of the representations,
                    undertakings and agreements herein made on behalf of the Trust
                    is made and
                    intended not as personal representations of the Trustee but is
                    made and
                    intended for the purpose of binding only the Trust, and (iii) under
                    no circumstances shall Deutsche Bank National Trust Company in
                    its
                    individual capacity be personally liable for the payment of any
                    indebtedness or expenses or be personally liable for the breach
                    or failure
                    of any obligation, representation, warranty or covenant made
                    or undertaken
                    under this Annex.

                

        

         

        
 

        
          
            
               

            

            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

         

        IN
          WITNESS WHEREOF,
          the
          parties have executed this Credit Support Annex by their duly authorized
          officers as of the date hereof.

         

         

        
          	 	 MORGAN STANLEY CAPITAL
                  SERVICES
                  INC.
	 	 
	 	 
	 	 By:__________________________________
	 	
                   Name

                
	 	
                   Title:

                
	 	
                   Date:

                
	 	 
	 	 
	 	 
	 	 
	 	 DEUTSCHE BANK NATIONAL
                  TRUST
                  COMPANY, 
	 	
                   not
                    individually, but solely as Trustee on behalf of the
                    Supplemental Interest Trust with respect to Morgan Stanley ABS
                    Capital I
                    Inc. Trust 2007-NC1, Mortgage Pass-Through Certificates, Series
                    2007-NC1

                
	 	 
	 	
                   By:
                    _____________________________________

                
	 	
                   Name:

                
	 	
                   Title:

                
	 	
                   Date:

                

        

         

         

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        TABLE
          1

        
 

        CREDIT
          SUPPORT AMOUNT 

        DOWNGRADE
          BY S&P

        

        

        In
          the
          event Party A elects or is required to post collateral pursuant to Part
          5(f) of
          the Schedule due to a ratings downgrade or withdrawal by S&P:

        

        “Credit
          Support Amount”
means,
          with respect to a Valuation Date, an amount equal to the greater of (1) the
          sum of (a) the MTM and (b) the Volatility Buffer multiplied by the
          Notional Amount * 10 and (2) zero. 

        

        “MTM”
means
          the Secured Party’s Exposure for that Valuation Date. 

        

        “Volatility
          Buffer”
means
          (a) if, on the date of determination, Party A has a short-term credit
          rating of “A-2” by S&P and the Termination Date of the Transaction will
          occur in less than 5 years, 3.25%, (b) if, on the date of determination,
          Party A has a short-term credit rating of “A-2” by S&P and the
          Termination Date of the Transaction will occur in less than 10 years but
          more
          than 5 years, 4.00%, (c) if, on the date of determination, Party A has
          a short-term credit rating of “A-3” by S&P and the Termination Date of the
          Transaction will occur in less than 5 years, 4.00%, (d) if, on the date of
          determination, Party A has a short-term credit rating of “A-3” by S&P
          and the Termination Date of the Transaction will occur in less than 10
          years but
          more than 5 years, 5.00%, (e) if, on the date of determination,
          Party A has a long-term credit rating of “BB+” or lower by S&P and the
          Termination Date of the Transaction will occur in less than 5 years, 4.50%,
          or
          (f) if, on the date of determination, Party A has a long-term credit
          rating of “BB+” or lower by S&P and the Termination Date of the Transaction
          will occur in less than 10 years but more than 5 years, 6.75%.

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        TABLE
          2A

        

        

        CREDIT
          SUPPORT AMOUNT 

        DOWNGRADE
          BY MOODY’S BELOW MOODY’S FIRST TIER REQUIRED 

        SWAP
          COUNTERPARTY RATING

        

        In
          the
          event Party A elects to post collateral pursuant to Part 5(f)(i) of the
          Schedule
          due to a ratings downgrade by Moody’s below the Moody’s First Tier Required Swap
          Counterparty Rating:

        

        “Credit
          Support Amount”
means,
          with respect to a Valuation Date, an amount equal to either:

        

        (A)
          The
          greater of (1) zero and (2) the sum of (a) the MTM and (b) the lesser of
          (x) 25
          multiplied by DV01 and (y) 4% multiplied by the Notional Amount * 10;
          or

        

        (B)
          The
          greater of (1) zero and (2) the sum of (a) the MTM and (b) the Notional
          Amount *
          10 multiplied by the amount specified in Table 2B attached hereto.

        

        Party
          A
          shall, in its sole discretion, have the option to determine the Credit
          Support
          Amount based upon either (A) or (B) above.

        

        “DV01”
means
          an estimate (as determined by the Valuation Agent in good faith and in
          a
          commercially reasonable manner) of the change in the Secured Party’s Exposure
          resulting from a one basis point change in the swap curve.

        

        “MTM”
means
          the Secured Party’s Exposure for that Valuation Date.

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        TABLE
          2B

        

        

        
          	
                  Weighted
                    Average

                  Life
                    of Hedge

                  in
                    Years

                	 
	
                  1

                	
                  0.25%

                
	
                  2

                	
                  0.50%

                
	
                  3

                	
                  0.70%

                
	
                  4

                	
                  1.00%

                
	
                  5

                	
                  1.20%

                
	
                  6

                	
                  1.40%

                
	
                  7

                	
                  1.60%

                
	
                  8

                	
                  1.80%

                
	
                  9

                	
                  2.00%

                
	
                  10

                	
                  2.20%

                
	
                  11

                	
                  2.30%

                
	
                  12

                	
                  2.50%

                
	
                  13

                	
                  2.70%

                
	
                  14

                	
                  2.80%

                
	
                  15

                	
                  3.00%

                
	
                  16

                	
                  3.20%

                
	
                  17

                	
                  3.30%

                
	
                  18

                	
                  3.50%

                
	
                  19

                	
                  3.60%

                
	
                  20

                	
                  3.70%

                
	
                  21

                	
                  3.90%

                
	
                  22

                	
                  4.00%

                
	
                  23

                	
                  4.00%

                
	
                  24

                	
                  4.00%

                
	
                  25

                	
                  4.00%

                
	
                  26

                	
                  4.00%

                
	
                  27

                	
                  4.00%

                
	
                  28

                	
                  4.00%

                
	
                  29

                	
                  4.00%

                
	
                  30

                	
                  4.00%

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        TABLE
          3A

        

        

        CREDIT
          SUPPORT AMOUNT 

        DOWNGRADE
          BY MOODY’S BELOW MOODY’S SECOND TIER REQUIRED 

        SWAP
          COUNTERPARTY RATING

        

        

        In
          the
          event Party A is required to post collateral pursuant to Part 5(f)(ii)
          of the
          Schedule due to a ratings downgrade by Moody’s below the Moody’s Second Tier
          Required Swap Counterparty Rating:

        

        “Credit
          Support Amount”
means,
          with respect to a Valuation Date, an amount equal to either:

        

        (A)
          The
          greatest of (1) zero, (2) the amount payable by Party A in respect of the
          next
          Floating Rate Payer Payment Date, and (3) the sum of (a) the MTM and (b)
          the
          lesser of (x) 60 multiplied by DV01 and (y) 9% multiplied by the Notional
          Amount
          * 10; or

        

        (B)
          The
          greatest of (1) zero, (2) the amount payable by Party A in respect of the
          next
          Floating Rate Payer Payment Date, and (3) the sum of (a) the MTM and (b)
          the
          Notional Amount * 10 multiplied by the amount specified in Table 3B attached
          hereto.

        

        Party
          A
          shall, in its sole discretion, have the option to determine the Credit
          Support
          Amount based upon either (A) or (B) above.

        

        “DV01”
means
          an estimate (as determined by the Valuation Agent in good faith and in
          a
          commercially reasonable manner) of the change in the Secured Party’s Exposure
          resulting from a one basis point change in the swap curve.

        

        “MTM”
means
          the Secured Party’s Exposure for that Valuation Date.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        TABLE
          3B

        

        
          	
                  Weighted
                    Average

                  Life
                    of Hedge

                  in
                    Years

                	 
	
                  1

                	
                  0.60%

                
	
                  2

                	
                  1.20%

                
	
                  3

                	
                  1.70%

                
	
                  4

                	
                  2.30%

                
	
                  5

                	
                  2.80%

                
	
                  6

                	
                  3.30%

                
	
                  7

                	
                  3.80%

                
	
                  8

                	
                  4.30%

                
	
                  9

                	
                  4.80%

                
	
                  10

                	
                  5.30%

                
	
                  11

                	
                  5.60%

                
	
                  12

                	
                  6.00%

                
	
                  13

                	
                  6.40%

                
	
                  14

                	
                  6.80%

                
	
                  15

                	
                  7.20%

                
	
                  16

                	
                  7.60%

                
	
                  17

                	
                  7.90%

                
	
                  18

                	
                  8.30%

                
	
                  19

                	
                  8.60%

                
	
                  20

                	
                  9.00%

                
	
                  21

                	
                  9.00%

                
	
                  22

                	
                  9.00%

                
	
                  23

                	
                  9.00%

                
	
                  24

                	
                  9.00%

                
	
                  25

                	
                  9.00%

                
	
                  26

                	
                  9.00%

                
	
                  27

                	
                  9.00%

                
	
                  28

                	
                  9.00%

                
	
                  29

                	
                  9.00%

                
	
                  30

                	
                  9.00%

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        TABLE
          4

        

        

        ELIGIBLE
          COLLATERAL 

        S&P

        

        

        

        

          
            	 	
                    Eligible
                      Collateral

                  	
                    Party A

                  	
                    Valuation
                      Percentage

                  
	
                    (A)

                  	
                    Cash

                  	
                    X

                  	
                    100.0%

                  
	
                    (B)

                  	
                    Treasury
                      Securities with a remaining maturity of 52 weeks or less

                  	
                    X

                  	
                    98.5%

                  
	
                    (C)

                  	
                    Treasury
                      Securities with a remaining maturity of more than 52 weeks
                      but no more
                      than 5 years

                  	
                    X

                  	
                    93.6%

                  
	
                    (D)

                  	
                    Treasury
                      Securities with a remaining maturity of more than 5 years but
                      no more than
                      10 years

                  	
                    X

                  	
                    89.9%

                  
	
                    (E)

                  	
                    Treasury
                      Securities with a remaining maturity of more than 10 years
                      but no more
                      than 30 years

                  	
                    X

                  	
                    83.9%

                  
	
                    (F)

                  	
                    Agency
                      Notes with a remaining maturity of no more than 15 years

                  	
                    X

                  	
                    81.3%

                  
	
                    (G)

                  	
                    Agency
                      Notes with a remaining maturity of more than 15 years but no
                      more than 30
                      years

                  	
                    X

                  	
                    74.8%

                  
	
                    (H)

                  	
                    Commercial
                      Paper rated “A-1+” by S&P and “P-1” by Moody’s, with a remaining
                      maturity of 180 days or less

                  	
                    X

                  	
                    98.0%

                  
	
                    (I)

                  	
                    Commercial
                      Paper rated “A-1” by S&P and P-1 by Moody’s, with a remaining maturity
                      of 180 days or less 

                  	
                    X

                  	
                    97.0%

                  
	
                    (J)

                  	
                    Commercial
                      Paper rated “A-1” by S&P and “P-1” by Moody’s, with a remaining
                      maturity of more than 180 days or but no more than 360
                      days

                  	
                    X

                  	
                    94.0%

                  

          

        

        

        

        Notwithstanding
          the above, Commercial Paper will qualify as Eligible Collateral for Party
          A only
          if the aggregate amount of Commercial Paper Transferred as Eligible Collateral
          under this Annex constitutes the obligations of 10 or more
          issuers.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        TABLE
          5

        

        

        ELIGIBLE
          COLLATERAL

        DOWNGRADE
          BY MOODY’S BELOW MOODY’S FIRST TIER REQUIRED

        SWAP
          COUNTERPARTY RATING

        

        
          	
                  Eligible
                    Collateral

                	
                  Valuation
                    Percentage

                
	
                  U.S.
                    Dollar Cash

                	
                  100%

                
	
                  EURO
                    Cash

                	
                  97%

                
	
                  Sterling
                    Cash

                	
                  97%

                
	
                  Fixed-Rate
                    Negotiable Treasury Debt Issued by The U.S. Treasury Department
                    with
                    Remaining Maturity

                
	
                  <
                    1 Year

                	
                  100%

                
	
                  1
                    to 2 Years

                	
                  100%

                
	
                  2
                    to 3 Years

                	
                  100%

                
	
                  3
                    to 5 Years

                	
                  100%

                
	
                  5
                    to 7 Years

                	
                  100%

                
	
                  7
                    to 10 Years

                	
                  100%

                
	
                  10
                    to 20 Years

                	
                  100%

                
	
                  >
                    20 Years

                	
                  100%

                
	
                  Floating-Rate
                    Negotiable Treasury Debt issued by The U.S. Treasury
                    Department

                
	
                  All
                    Maturities

                	
                  100%

                
	
                  Fixed-Rate
                    U.S. Agency Debentures with Remaining Maturity

                
	
                  <
                    1 Year

                	
                  100%

                
	
                  1
                    to 2 Years

                	
                  100%

                
	
                  2
                    to 3 Years

                	
                  100%

                
	
                  3
                    to 5 Years

                	
                  100%

                
	
                  5
                    to 7 Years

                	
                  100%

                
	
                  7
                    to 10 Years

                	
                  100%

                
	
                  10
                    to 20 Years

                	
                  100%

                
	
                  >
                    20 Years

                	
                  100%

                
	
                  Floating-Rate
                    U.S. Agency Debentures -

                
	
                  All
                    Maturities

                	
                  100%

                
	
                  Fixed-Rate
                    Euro-Zone Government Bonds Rated Aa3
                    or
                    Above with Remaining Maturity

                
	
                  <
                    1 Year

                	
                  97%

                
	
                  1
                    to 2 Years

                	
                  97%

                
	
                  2
                    to 3 Years

                	
                  97%

                
	
                  3
                    to 5 Years

                	
                  97%

                
	
                  5
                    to 7 Years

                	
                  97%

                
	
                  7
                    to 10 Years

                	
                  97%

                
	
                  10
                    to 20 Years

                	
                  97%

                
	
                  >
                    20 Years

                	
                  97%

                
	
                  Floating-Rate
                    Euro-Zone Government Bonds Rated Aa3
                    or
                    Above

                
	
                  All
                    Maturities

                	
                  97%

                
	
                  Fixed-Rate
                    United Kingdom Gilts with Remaining Maturity

                
	
                  <
                    1 Year

                	
                  97%

                
	
                  1
                    to 2 Years

                	
                  97%

                
	
                  2
                    to 3 Years

                	
                  97%

                
	
                  3
                    to 5 Years

                	
                  97%

                
	
                  5
                    to 7 Years

                	
                  97%

                
	
                  7
                    to 10 Years

                	
                  97%

                
	
                  10
                    to 20 Years

                	
                  97%

                
	
                  >
                    20 Years

                	
                  97%

                
	
                  Floating-Rate
                    United Kingdom Gilts

                
	
                  All
                    Maturities

                	
                  97%

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        TABLE
          6

        

        ELIGIBLE
          COLLATERAL

        DOWNGRADE
          BY MOODY’S BELOW MOODY’S SECOND TIER REQUIRED

        SWAP
          COUNTERPARTY RATING

        

        
          	
                  Eligible
                    Collateral

                	
                  Valuation
                    Percentage

                
	
                  U.S.
                    Dollar Cash

                	
                  100%

                
	
                  EURO
                    Cash

                	
                  93%

                
	
                  Sterling
                    Cash

                	
                  94%

                
	
                  Fixed-Rate
                    Negotiable Treasury Debt Issued by The U.S. Treasury Department
                    with
                    Remaining Maturity

                
	
                  <
                    1 Year

                	
                  100%

                
	
                  1
                    to 2 Years

                	
                  99%

                
	
                  2
                    to 3 Years

                	
                  98%

                
	
                  3
                    to 5 Years

                	
                  97%

                
	
                  5
                    to 7 Years

                	
                  95%

                
	
                  7
                    to 10 Years

                	
                  94%

                
	
                  10
                    to 20 Years

                	
                  89%

                
	
                  >
                    20 Years

                	
                  87%

                
	
                  Floating-Rate
                    Negotiable Treasury Debt issued by The U.S. Treasury
                    Department

                
	
                  All
                    Maturities

                	
                  99%

                
	
                  Fixed-Rate
                    U.S. Agency Debentures with Remaining Maturity

                
	
                  <
                    1 Year

                	
                  99%

                
	
                  1
                    to 2 Years

                	
                  98%

                
	
                  2
                    to 3 Years

                	
                  97%

                
	
                  3
                    to 5 Years

                	
                  96%

                
	
                  5
                    to 7 Years

                	
                  94%

                
	
                  7
                    to 10 Years

                	
                  93%

                
	
                  10
                    to 20 Years

                	
                  88%

                
	
                  >
                    20 Years

                	
                  86%

                
	
                  Floating-Rate
                    U.S. Agency Debentures -

                
	
                  All
                    Maturities

                	
                  98%

                
	
                  Fixed-Rate
                    Euro-Zone Government Bonds Rated Aa3
                    or
                    Above with Remaining Maturity

                
	
                  <
                    1 Year

                	
                  93%

                
	
                  1
                    to 2 Years

                	
                  92%

                
	
                  2
                    to 3 Years

                	
                  91%

                
	
                  3
                    to 5 Years

                	
                  89%

                
	
                  5
                    to 7 Years

                	
                  87%

                
	
                  7
                    to 10 Years

                	
                  86%

                
	
                  10
                    to 20 Years

                	
                  82%

                
	
                  >
                    20 Years

                	
                  80%

                
	
                  Floating-Rate
                    Euro-Zone Government Bonds Rated Aa3
                    or
                    Above

                
	
                  All
                    Maturities

                	
                  92%

                
	
                  Fixed-Rate
                    United Kingdom Gilts with Remaining Maturity

                
	
                  <
                    1 Year

                	
                  93%

                
	
                  1
                    to 2 Years

                	
                  92%

                
	
                  2
                    to 3 Years

                	
                  91%

                
	
                  3
                    to 5 Years

                	
                  90%

                
	
                  5
                    to 7 Years

                	
                  89%

                
	
                  7
                    to 10 Years

                	
                  88%

                
	
                  10
                    to 20 Years

                	
                  84%

                
	
                  >
                    20 Years

                	
                  82%

                
	
                  Floating-Rate
                    United Kingdom Gilts

                
	
                  All
                    Maturities

                	
                  93%

                

        

         

         

        
           

          
            	
                    

                  	
                    EXECUTION
                      COPY

                  

          

          
 

          
            
              	
                      DATE:

                    	
                      January
                        26, 2007

                    
	 	 
	
                      TO:

                    	
                      Deutsche
                        Bank National Trust Company, not individually, but solely
                        as Trustee on
                        behalf of the Supplemental Interest Trust with respect to
                        Morgan Stanley
                        ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through
                        Certificates,
                        Series 2007-NC1

                    
	 	 
	
                      ATTENTION:

                    	
                      Trust
                        Administration - MS07C1

                    
	
                      TELEPHONE:

                    	
                      (714)
                        247-6000

                    
	
                      FACSIMILE:

                    	
                      (714)
                        656-2626

                    
	 	 
	
                      FROM:

                    	
                      New
                        York Derivative Client Services Group

                    
	
                      TELEPHONE:

                    	
                      (212)
                        761-2996

                    
	
                      FACSIMILE:

                    	
                      (646)
                        202-9190

                    
	 	 
	
                      SUBJECT:

                    	
                      Fixed
                        Income Derivatives Confirmation

                    
	 	 
	
                      REFERENCE
                        NUMBER:

                    	
                      FS0HG

                    

            

          

           

          The
            purpose of this letter agreement (this “Confirmation”)
            is to
            confirm the terms and conditions of the Swap Transaction entered into
            on the
            Trade Date specified below (the “Transaction”)
            between Morgan Stanley Capital Services Inc. (“Party
            A”)
            and
            Deutsche Bank National Trust Company, not individually, but solely as
            Trustee on
            behalf of the Supplemental Interest Trust (the “Trustee”)
            under
            the Pooling and Servicing Agreement, dated and effective as of January
            1, 2007,
            among Morgan Stanley ABS Capital I Inc., as Depositor, Deutsche Bank
            National
            Trust Company, as Trustee, Saxon Mortgage Services, Inc., as Servicer,
            Countrywide Home Loans Servicing LP, as Servicer, and NC Capital Corporation,
            as
            Responsible Party (the “PSA”)
            for
            the Morgan Stanley ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through
            Certificates, Series 2007-NC1 (“Party
            B”).

           

          The
            definitions and provisions contained in the 2000 ISDA Definitions (the
            “Definitions”),
            as
            published by the International Swaps and Derivatives Association, Inc.,
            are
            incorporated into this Confirmation. In the event of any inconsistency
            between
            the Definitions and this Confirmation, this Confirmation will govern.
            Terms
            capitalized but not defined in this Confirmation (including the Definitions)
            have the meanings attributed to them in the PSA.

           

          This
            Confirmation constitutes a “Confirmation” as referred to in, and supplements,
            forms part of and is subject to, the ISDA Master Agreement dated as of
            January
            26, 2007, as amended and supplemented from time to time (the “Agreement”),
            between Party A and Party B. All provisions contained in the Agreement
            govern
            this Confirmation except as expressly modified below.

           

          
            	1.  	
                    The
                      terms of the particular Transaction to which this Confirmation
                      relates are
                      as follows:

                  

          

           

          
            	 	
                    Notional
                      Amount:

                  	 	
                    With
                      respect to any Calculation Period, the notional amount set
                      forth for such
                      Calculation Period in Schedule I attached
                      hereto.

                  

          

           

          
            	 	
                    Trade
                      Date:

                  	 	
                    January
                      19, 2007

                  

          

           

          
            	 	
                    Effective
                      Date:

                  	 	
                    December
                      25, 2007

                  

          

           

          
            	 	
                    Termination
                      Date:

                  	 	
                    January
                      25, 2013, which for the purpose of the final Fixed Rate Payer
                      Calculation
                      Period is subject to No Adjustment, and for the purpose of
                      the final
                      Floating Rate Payer Calculation Period is subject to adjustment
                      in
                      accordance with the Business Day
                      Convention.

                  

          

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          Fixed
            Amounts:

           

          
            	 	
                    Fixed
                      Rate Payer:

                  	 	
                    Party
                      B

                  

          

           

          
            	 	
                    Fixed
                      Rate Payer Payment Dates:

                  	 	
                    The
                      25th
                      calendar day of each month during the Term of this Transaction,
                      commencing
                      January 25, 2008, subject to adjustment in accordance with
                      the Business
                      Day Convention.

                  

          

           

          Fixed
            Rate Payer Period End

          
            	 	
                    Dates:

                  	 	
                    The
                      25th
                      calendar day of each month during the Term of this Transaction,
                      commencing
                      January 25, 2008, subject to No
                      Adjustment.

                  

          

           

          
            	 	
                    Fixed
                      Rate:

                  	 	
                    5.05%

                  

          

           

          
            	 	
                    Fixed
                      Amount:

                  	 	
                    To
                      be determined in accordance with the following
                      formula:

                  

          

           

          10
            *
            Fixed Rate * Notional Amount * Fixed Rate Day Count Fraction.

           

          
            	 	
                    Fixed
                      Rate Day Count Fraction:

                  	 	
                    30/360

                  

          

           

          Floating
            Amounts:

           

          
            	 	
                    Floating
                      Rate Payer:

                  	 	
                    Party
                      A

                  

          

           

          Floating
            Rate Payer Payment

          
            	 	
                    Dates:

                  	 	
                    The
                      25th
                      calendar day of each month during the Term of this Transaction,
                      commencing
                      January 25, 2008, subject to adjustment in accordance with
                      the Business
                      Day Convention.

                  

          

           

          Floating
            Rate Payer Period End

          
            	 	
                    Dates:

                  	 	
                    The
                      25th
                      calendar day of each month during the Term of this Transaction,
                      commencing
                      January 25, 2008, subject to adjustment in accordance with
                      the Business
                      Day Convention.

                  

          

           

          
            	 	
                    Floating
                      Rate Option:

                  	 	
                    USD-LIBOR-BBA

                  

          

           

          
            	 	
                    Floating
                      Amount:

                  	 	
                    To
                      be determined in accordance with the following
                      formula:

                  

          

           

          10
            *
            Floating Rate * Notional Amount * Floating Rate Day Count
            Fraction.

           

          
            	 	
                    Designated
                      Maturity:

                  	 	
                    One
                      month

                  

          

           

          
            	 	
                    Floating
                      Rate Day Count Fraction:

                  	 	
                    Actual/360

                  

          

           

          
            	 	
                    Reset
                      Dates:

                  	 	
                    The
                      first day of each Calculation
                      Period.

                  

          

           

          
            	 	
                    Compounding:

                  	 	
                    Inapplicable

                  

          

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            	 	
                    Business
                      Days:

                  	 	
                    New
                      York and Los Angeles

                  

          

           

          
            	 	
                    Business
                      Day Convention:

                  	 	
                    Following

                  

          

           

          
            	2.  	
                    Account
                      Details and Settlement Information:

                  

          

          

          Payments
            to Party A:

          

          Citibank,
            New York

          ABA
            No.:
            021 000 089

          Account
            No.: 4072-4601

          Account
            Name: Morgan Stanley Capital Services Inc.

          

          Payments
            to Party B:

          

          Deutsche
            Bank

          ABA
            No.:
            021001033

          Account
            No: 01419663

          Acct
            Name: NYLTD Funds Control - Stars West

          Ref:
            Morgan Stanley ABS Capital I Inc. Trust 2007-NC1 (swap)

           

          
            	3.  	
                    Trustee
                      Capacity. It
                      is expressly understood and agreed by the parties hereto that
                      insofar as
                      this Confirmation is executed by Deutsche Bank National Trust
                      Company (i)
                      this Confirmation is executed and delivered by Deutsche Bank
                      National
                      Trust Company not in its individual capacity but solely as
                      Trustee on
                      behalf of the Supplemental Interest Trust under the PSA in
                      the exercise of
                      the powers and authority conferred and invested in it as trustee
                      thereunder, (ii) each of the representations, undertakings
                      and agreements
                      herein made on behalf of Party B is made and intended not as
                      personal
                      representations of the Trustee but is made and intended for
                      the purpose of
                      binding only the Supplemental Interest Trust, and (iii) under
                      no
                      circumstances shall Deutsche Bank National Trust Company in
                      its individual
                      capacity be personally liable for the payment of any indebtedness
                      or
                      expenses or be personally liable for the breach or failure
                      of any
                      obligation, representation, warranty or covenant made or undertaken
                      under
                      this Confirmation.

                  

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          We
            are
            very pleased to have entered into this Transaction with you and we look
            forward
            to completing other transactions with you in the near future.

           

          
            	 	Very truly yours,
	 	 	 
	 	
                    MORGAN
                      STANLEY CAPITAL SERVICES INC.

                  
	 
 	 
 	 
 
	 	By:  	 
	 	
                    

                    Name:

                  
	 	
                    Title:

                  

          

           

           

          Party
            B,
            acting through its duly authorized signatory, hereby agrees to, accepts
            and
            confirms the terms of the foregoing as of the Trade Date.

           

          
            	 	 	 
	 	
                    DEUTSCHE
                      BANK NATIONAL TRUST 

                                   
                      COMPANY,
                      not individually, but solely as Trustee on behalf of the Supplemental
                      Interest Trust with    respect to Morgan Stanley ABS
                      Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through Certificates,
                      Series
                      2007-NC1

                  
	 
 	 
 	 
 
	 	By:  	 
	 	
                    

                    Name:

                  
	 	
                    Title:

                  

          

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          SCHEDULE
            I

          
 

          
            	
                    Line

                  	 	
                    Calculation
                      Period

                  	 	
                    Notional
                      Amount ($)

                  	 	
                    Multiplier

                  
	
                    1

                  	 	
                    Effective
                      Date

                  	 	
                    1/25/2008

                  	 	
                    77,167,175.55

                  	 	
                    10

                  
	
                    2

                  	 	
                    1/25/2008

                  	 	
                    2/25/2008

                  	 	
                    73,917,347.83

                  	 	
                    10

                  
	
                    3

                  	 	
                    2/25/2008

                  	 	
                    3/25/2008

                  	 	
                    70,804,122.71

                  	 	
                    10

                  
	
                    4

                  	 	
                    3/25/2008

                  	 	
                    4/25/2008

                  	 	
                    67,823,121.65

                  	 	
                    10

                  
	
                    5

                  	 	
                    4/25/2008

                  	 	
                    5/25/2008

                  	 	
                    64,968,685.98

                  	 	
                    10

                  
	
                    6

                  	 	
                    5/25/2008

                  	 	
                    6/25/2008

                  	 	
                    62,235,400.80

                  	 	
                    10

                  
	
                    7

                  	 	
                    6/25/2008

                  	 	
                    7/25/2008

                  	 	
                    59,618,084.44

                  	 	
                    10

                  
	
                    8

                  	 	
                    7/25/2008

                  	 	
                    8/25/2008

                  	 	
                    57,111,778.39

                  	 	
                    10

                  
	
                    9

                  	 	
                    8/25/2008

                  	 	
                    9/25/2008

                  	 	
                    54,702,313.97

                  	 	
                    10

                  
	
                    10

                  	 	
                    9/25/2008

                  	 	
                    10/25/2008

                  	 	
                    43,185,242.21

                  	 	
                    10

                  
	
                    11

                  	 	
                    10/25/2008

                  	 	
                    11/25/2008

                  	 	
                    40,589,845.01

                  	 	
                    10

                  
	
                    12

                  	 	
                    11/25/2008

                  	 	
                    12/25/2008

                  	 	
                    38,914,734.43

                  	 	
                    10

                  
	
                    13

                  	 	
                    12/25/2008

                  	 	
                    1/25/2009

                  	 	
                    37,309,449.71

                  	 	
                    10

                  
	
                    14

                  	 	
                    1/25/2009

                  	 	
                    2/25/2009

                  	 	
                    35,771,052.24

                  	 	
                    10

                  
	
                    15

                  	 	
                    2/25/2009

                  	 	
                    3/25/2009

                  	 	
                    34,287,170.38

                  	 	
                    10

                  
	
                    16

                  	 	
                    3/25/2009

                  	 	
                    4/25/2009

                  	 	
                    23,524,938.40

                  	 	
                    10

                  
	
                    17

                  	 	
                    4/25/2009

                  	 	
                    5/25/2009

                  	 	
                    21,766,545.41

                  	 	
                    10

                  
	
                    18

                  	 	
                    5/25/2009

                  	 	
                    6/25/2009

                  	 	
                    20,904,374.65

                  	 	
                    10

                  
	
                    19

                  	 	
                    6/25/2009

                  	 	
                    7/25/2009

                  	 	
                    20,076,746.07

                  	 	
                    10

                  
	
                    20

                  	 	
                    7/25/2009

                  	 	
                    8/25/2009

                  	 	
                    19,277,274.74

                  	 	
                    10

                  
	
                    21

                  	 	
                    8/25/2009

                  	 	
                    9/25/2009

                  	 	
                    18,336,623.70

                  	 	
                    10

                  
	
                    22

                  	 	
                    9/25/2009

                  	 	
                    10/25/2009

                  	 	
                    11,665,531.93

                  	 	
                    10

                  
	
                    23

                  	 	
                    10/25/2009

                  	 	
                    11/25/2009

                  	 	
                    10,692,872.63

                  	 	
                    10

                  
	
                    24

                  	 	
                    11/25/2009

                  	 	
                    12/25/2009

                  	 	
                    10,303,290.73

                  	 	
                    10

                  
	
                    25

                  	 	
                    12/25/2009

                  	 	
                    1/25/2010

                  	 	
                    9,927,946.81

                  	 	
                    10

                  
	
                    26

                  	 	
                    1/25/2010

                  	 	
                    2/25/2010

                  	 	
                    9,561,275.99

                  	 	
                    10

                  
	
                    27

                  	 	
                    2/25/2010

                  	 	
                    3/25/2010

                  	 	
                    9,037,993.55

                  	 	
                    10

                  
	
                    28

                  	 	
                    3/25/2010

                  	 	
                    4/25/2010

                  	 	
                    8,089,689.50

                  	 	
                    10

                  
	
                    29

                  	 	
                    4/25/2010

                  	 	
                    5/25/2010

                  	 	
                    7,726,417.63

                  	 	
                    10

                  
	
                    30

                  	 	
                    5/25/2010

                  	 	
                    6/25/2010

                  	 	
                    7,452,001.05

                  	 	
                    10

                  
	
                    31

                  	 	
                    6/25/2010

                  	 	
                    7/25/2010

                  	 	
                    7,187,298.78

                  	 	
                    10

                  
	
                    32

                  	 	
                    7/25/2010

                  	 	
                    8/25/2010

                  	 	
                    6,929,096.74

                  	 	
                    10

                  
	
                    33

                  	 	
                    8/25/2010

                  	 	
                    9/25/2010

                  	 	
                    6,583,068.67

                  	 	
                    10

                  
	
                    34

                  	 	
                    9/25/2010

                  	 	
                    10/25/2010

                  	 	
                    5,996,077.08

                  	 	
                    10

                  
	
                    35

                  	 	
                    10/25/2010

                  	 	
                    11/25/2010

                  	 	
                    5,744,564.57

                  	 	
                    10

                  
	
                    36

                  	 	
                    11/25/2010

                  	 	
                    12/25/2010

                  	 	
                    5,544,686.28

                  	 	
                    10

                  
	
                    37

                  	 	
                    12/25/2010

                  	 	
                    1/25/2011

                  	 	
                    5,351,693.25

                  	 	
                    10

                  
	
                    38

                  	 	
                    1/25/2011

                  	 	
                    2/25/2011

                  	 	
                    5,165,350.83

                  	 	
                    10

                  
	
                    39

                  	 	
                    2/25/2011

                  	 	
                    3/25/2011

                  	 	
                    4,985,432.28

                  	 	
                    10

                  
	
                    40

                  	 	
                    3/25/2011

                  	 	
                    4/25/2011

                  	 	
                    4,811,718.50

                  	 	
                    10

                  
	
                    41

                  	 	
                    4/25/2011

                  	 	
                    5/25/2011

                  	 	
                    4,643,997.75

                  	 	
                    10

                  
	
                    42

                  	 	
                    5/25/2011

                  	 	
                    6/25/2011

                  	 	
                    4,482,065.46

                  	 	
                    10

                  
	
                    43

                  	 	
                    6/25/2011

                  	 	
                    7/25/2011

                  	 	
                    4,325,723.92

                  	 	
                    10

                  
	
                    44

                  	 	
                    7/25/2011

                  	 	
                    8/25/2011

                  	 	
                    4,173,921.65

                  	 	
                    10

                  
	
                    45

                  	 	
                    8/25/2011

                  	 	
                    9/25/2011

                  	 	
                    4,019,999.98

                  	 	
                    10

                  
	
                    46

                  	 	
                    9/25/2011

                  	 	
                    10/25/2011

                  	 	
                    3,868,572.55

                  	 	
                    10

                  
	
                    47

                  	 	
                    10/25/2011

                  	 	
                    11/25/2011

                  	 	
                    3,732,465.30

                  	 	
                    10

                  
	
                    48

                  	 	
                    11/25/2011

                  	 	
                    12/25/2011

                  	 	
                    3,602,050.78

                  	 	
                    10

                  
	
                    49

                  	 	
                    12/25/2011

                  	 	
                    1/25/2012

                  	 	
                    3,476,144.50

                  	 	
                    10

                  
	
                    50

                  	 	
                    1/25/2012

                  	 	
                    2/25/2012

                  	 	
                    3,353,721.71

                  	 	
                    10

                  
	
                    51

                  	 	
                    2/25/2012

                  	 	
                    3/25/2012

                  	 	
                    3,228,056.20

                  	 	
                    10

                  
	
                    52

                  	 	
                    3/25/2012

                  	 	
                    4/25/2012

                  	 	
                    3,104,123.79

                  	 	
                    10

                  
	
                    53

                  	 	
                    4/25/2012

                  	 	
                    5/25/2012

                  	 	
                    2,994,660.60

                  	 	
                    10

                  
	
                    54

                  	 	
                    5/25/2012

                  	 	
                    6/25/2012

                  	 	
                    2,889,975.03

                  	 	
                    10

                  
	
                    55

                  	 	
                    6/25/2012

                  	 	
                    7/25/2012

                  	 	
                    2,788,908.01

                  	 	
                    10

                  
	
                    56

                  	 	
                    7/25/2012

                  	 	
                    8/25/2012

                  	 	
                    2,690,840.08

                  	 	
                    10

                  
	
                    57

                  	 	
                    8/25/2012

                  	 	
                    9/25/2012

                  	 	
                    2,591,891.89

                  	 	
                    10

                  
	
                    58

                  	 	
                    9/25/2012

                  	 	
                    10/25/2012

                  	 	
                    2,494,884.18

                  	 	
                    10

                  
	
                    59

                  	 	
                    10/25/2012

                  	 	
                    11/25/2012

                  	 	
                    2,407,040.66

                  	 	
                    10

                  
	
                    60

                  	 	
                    11/25/2012

                  	 	
                    12/25/2012

                  	 	
                    2,322,800.48

                  	 	
                    10

                  
	
                    61

                  	 	
                    12/25/2012

                  	 	
                    Termination
                      Date

                  	 	
                    2,241,474.37

                  	 	
                    10

                  

          

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

    

     

    EXHIBIT
      U

     

    PURCHASE
      AGREEMENT

    
      
 

      EXECUTION
        COPY

       

      
        	 

      

       

       

       

      SIXTH
        AMENDED AND RESTATED MORTGAGE LOAN PURCHASE AND 

      WARRANTIES
        AGREEMENT

       

      
        _______________

      

       

      MORGAN
        STANLEY MORTGAGE CAPITAL INC.,

      Purchaser

       

       

      NC
        CAPITAL CORPORATION,

      Seller

       

      _______________

       

      Dated
        as
        of May 1, 2006

       

       

      Conventional,

      Fixed
        and
        Adjustable Rate, B/C Residential Mortgage Loans

       

      
        
          	 

        

      

       

      TABLE
        OF
        CONTENTS

       

       

      
        	
                SECTION
                  1.

              	
                DEFINITIONS.

              	 

      

       

      
        	
                SECTION
                  2.

              	
                AGREEMENT
                  TO PURCHASE.

              	 

      

       

      
        	
                SECTION
                  3.

              	
                MORTGAGE
                  SCHEDULES.

              	 

      

       

      
        	
                SECTION
                  4.

              	
                PURCHASE
                  PRICE.

              	 

      

       

      
        	
                SECTION
                  5.

              	
                EXAMINATION
                  OF MORTGAGE FILES.

              	 

      

       

      
        	
                SECTION
                  6.

              	
                CONVEYANCE
                  FROM SELLER TO PURCHASER.

              	 

      

       

      
        	
                SECTION
                  7.

              	
                SERVICING
                  OF THE MORTGAGE LOANS.

              	 

      

       

      
        	
                SECTION
                  8.

              	
                TRANSFER
                  OF SERVICING.

              	 

      

       

      
        	
                SECTION
                  9.

              	
                REPRESENTATIONS,
                  WARRANTIES AND COVENANTS OF THE SELLER; REMEDIES FOR
                  BREACH.

              	 

      

       

      
        	
                SECTION
                  10.

              	
                CLOSING.

              	 

      

       

      
        	
                SECTION
                  11.

              	
                CLOSING
                  DOCUMENTS.

              	 

      

       

      
        	
                SECTION
                  12.

              	
                COSTS.

              	 

      

       

      
        	
                SECTION
                  13.

              	
                COOPERATION
                  OF SELLER WITH A RECONSTITUTION.

              	 

      

       

      
        	
                SECTION
                  14.

              	
                THE
                  SELLER.

              	 

      

       

      
        	
                SECTION
                  15.

              	
                FINANCIAL
                  STATEMENTS.

              	 

      

       

      
        	
                SECTION
                  16.

              	
                MANDATORY
                  DELIVERY; GRANT OF SECURITY INTEREST.

              	 

      

       

      
        	
                SECTION
                  17.

              	
                NOTICES.

              	 

      

       

      
        	
                SECTION
                  18.

              	
                SEVERABILITY
                  CLAUSE.

              	 

      

       

      
        	
                SECTION
                  19.

              	
                COUNTERPARTS.

              	 

      

       

      
        	
                SECTION
                  20.

              	
                GOVERNING
                  LAW.

              	 

      

       

      
        	
                SECTION
                  21.

              	
                INTENTION
                  OF THE PARTIES.

              	 

      

       

      
        	
                SECTION
                  22.

              	
                SUCCESSORS
                  AND ASSIGNS; ASSIGNMENT OF PURCHASE AGREEMENT.

              	 

      

       

      
        	
                SECTION
                  23.

              	
                WAIVERS.

              	 

      

       

      
        	
                SECTION
                  24.

              	
                EXHIBITS.

              	 

      

       

      
        	
                SECTION
                  25.

              	
                GENERAL
                  INTERPRETIVE PRINCIPLES.

              	 

      

       

      
        	
                SECTION
                  26.

              	
                REPRODUCTION
                  OF DOCUMENTS.

              	 

      

       

      
        	
                SECTION
                  27.

              	
                FURTHER
                  AGREEMENTS.

              	 

      

       

      
        	
                SECTION
                  28.

              	
                RECORDATION
                  OF ASSIGNMENTS OF MORTGAGE.

              	 

      

       

      
        	
                SECTION
                  29.

              	
                NO
                  SOLICITATION.

              	 

      

       

      
        	
                SECTION
                  30.

              	
                WAIVER
                  OF TRIAL BY JURY.

              	 

      

       

      
        	
                SECTION
                  31.

              	
                SUBMISSION
                  TO JURISDICTION; WAIVERS.

              	 

      

       

      
        	
                SECTION
                  32.

              	
                COMPLIANCE
                  WITH REGULATION AB.

              	 

      

       

       

      EXHIBITS

       

      
        	
                EXHIBIT
                  A

              	
                CONTENTS
                  OF EACH MORTGAGE FILE

              

      

       

      
        	
                EXHIBIT
                  B

              	
                [RESERVED]

              

      

       

      
        	
                EXHIBIT
                  C

              	
                FORM
                  OF SELLER’S OFFICER’S CERTIFICATE

              

      

       

      
        	
                EXHIBIT
                  D

              	
                FORM
                  OF OPINION OF COUNSEL TO THE SELLER AND
                  ORIGINATOR

              

      

       

      
        	
                EXHIBIT
                  E

              	
                FORM
                  OF SECURITY RELEASE CERTIFICATION

              

      

       

      
        	
                EXHIBIT
                  F

              	
                FORM
                  OF SECURITY RELEASE CERTIFICATION

              

      

       

      
        	
                EXHIBIT
                  G

              	
                UNDERWRITING
                  GUIDELINES

              

      

       

      
        	
                EXHIBIT
                  H

              	
                FORM
                  OF ASSIGNMENT AND CONVEYANCE
                  AGREEMENT

              

      

      

       

      SIXTH
        AMENDED AND RESTATED MORTGAGE LOAN

      PURCHASE
        AND WARRANTIES AGREEMENT

       

      This
        SIXTH AMENDED AND RESTATED MORTGAGE LOAN PURCHASE AND WARRANTIES AGREEMENT
        (the
“Agreement”),
        dated
        as of May 1, 2006, by and between Morgan Stanley Mortgage Capital Inc., a
        New York corporation, having an office at 1585 Broadway, 2nd
        Floor,
        New York, New York 10036 (the “Purchaser”)
        and NC
        Capital Corporation, a California corporation, having an office at 18400
        Von
        Karman, Suite 1000, Irvine, CA 92612 (the “Seller”).

       

      W I T N E S S E T H:

       

      WHEREAS,
        the Purchaser and the Seller are parties to that certain Sixth Amended and
        Restated Mortgage Loan Purchase and Warranties Agreement, dated as of March
        1,
        2006 (the “Original
        Purchase Agreement”),
        pursuant to which the Seller may sell, from time to time, to the Purchaser,
        and
        the Purchaser may purchase, from time to time, from the Seller, certain
        conventional adjustable and fixed rate B/C, residential first and second
        mortgage loans (the “Mortgage
        Loans”)
        as
        described therein, and which shall be delivered in pools of whole loans (each,
        a
“Mortgage
        Loan Package”)
        on
        various dates as provided therein (each, a “Closing
        Date”);

       

      WHEREAS,
        at the present time, the Purchaser and the Seller desire to amend and restate
        the Original Purchase Agreement to make certain modifications as set forth
        herein, and upon the execution and delivery of this Agreement by the Purchaser
        and the Seller this Agreement shall supercede the Original Purchase Agreement
        and supplant the Original Purchase Agreement;

       

      NOW,
        THEREFORE, in consideration of the premises and mutual agreements set forth
        herein, and for other good and valuable consideration, the receipt and
        sufficiency of which are hereby acknowledged, the Purchaser and the Seller
        agree
        as follows:

       

      
        	
              	SECTION
                1.	
                Definitions.

              

      

       

      For
        purposes of this Agreement the following capitalized terms shall have the
        respective meanings set forth below. 

       

      Accepted
        Servicing Practices:
        With
        respect to any Mortgage Loan, those mortgage servicing practices of prudent
        mortgage lending institutions which service mortgage loans of the same type
        as
        such Mortgage Loan in the jurisdiction where the related Mortgaged Property
        is
        located and incorporating the Delinquency Collection Policies and
        Procedures.

       

      Act:
        The
        National Housing Act, as amended from time to time.

       

      Adjustable
        Rate Mortgage Loan:
        An
        adjustable rate Mortgage Loan purchased pursuant to this Agreement.

       

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

       

      Agency
        Transfer:
        A
        Fannie Mae Transfer or a Freddie Mac Transfer.

       

      Agreement:
        This
        Sixth Amended and Restated Mortgage Loan Purchase and Warranties Agreement
        and
        all amendments hereof and supplements hereto.

       

      ALTA:
        The
        American Land Title Association or any successor thereto.

       

      Ancillary
        Income:
        All
        late charges, assumption fees, escrow account benefits, reinstatement fees,
        and
        similar types of fees arising from or in connection with any Mortgage, to
        the
        extent not otherwise payable to the Mortgagor under applicable law or pursuant
        to the terms of the related Mortgage Note.

       

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

       

      Assignment
        and Conveyance Agreement:
        As
        defined in Subsection 6.01.

       

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

       

      Balloon
        Mortgage Loan:
        Any
        Mortgage Loan which by its original terms or any modifications thereof provides
        for amortization beyond its scheduled maturity date.

       

      BIF:
        The
        Bank Insurance Fund, or any successor thereto.

       

      Business
        Day:
        Any day
        other than (i) a Saturday or Sunday, (ii) a day on which banking and
        savings and loan institutions, in the State of New York or the State in which
        the Originator’s servicing operations are located or (iii) the state in
        which the Custodian’s operations are located, are authorized or obligated by law
        or executive order to be closed.

       

      Closing
        Date:
        The
        date or dates on which the Purchaser from time to time shall purchase, and
        the
        Seller from time to time shall sell, the Mortgage Loans listed on the related
        Mortgage Loan Schedule with respect to the related Mortgage Loan
        Package.

       

      CLTV:
        As of
        any date and as to any Second Lien Loan, the ratio, expressed as a percentage,
        of the (a) sum of (i) the outstanding principal balance of the Second Lien
        Loan
        and (ii) the outstanding principal balance as of such date of any mortgage
        loan
        or mortgage loans that are senior or equal in priority to the Second Lien
        Loan
        and which are secured by the same Mortgaged Property to (b) the Appraised
        Value
        as determined pursuant to the Underwriting Guidelines of the related Mortgaged
        Property as of the origination of the Second Lien Loan.

       

      Code:
        Internal Revenue Code of 1986, as amended.

       

      Commission:
        The
        United States Securities and Exchange Commission.

       

      Condemnation
        Proceeds: All
        awards or settlements in respect of a Mortgaged Property, whether permanent
        or
        temporary, partial or entire, by exercise of the power of eminent domain
        or
        condemnation, to the extent not required to be released to a Mortgagor in
        accordance with the terms of the related Mortgage Loan Documents.

       

      Convertible
        Mortgage Loan:
        Any
        individual Adjustable Rate Mortgage Loan purchased pursuant to this Agreement
        which contains a provision whereby the Mortgagor is permitted to convert
        the
        Adjustable Rate Mortgage Loan to a Fixed Rate Mortgage Loan in accordance
        with
        the terms of the related Mortgage Note.

       

      Covered
        Loan:
        A
        Mortgage Loan categorized as Covered pursuant to Appendix E of Standard &
Poor’s Glossary.

       

      Custodial
        Account:
        The
        separate trust account created and maintained pursuant to Section 2.04 of
        the
        Servicing Agreement (with respect to each Mortgage Loan, as specified
        therein).

       

      Custodial
        Agreement:
        The
        agreement(s) governing the retention of the originals of each Mortgage Note,
        Mortgage, Assignment of Mortgage and other Mortgage Loan Documents. If more
        than
        one Custodial Agreement is in effect at any given time, all of the individual
        Custodial Agreements shall collectively be referred to as the “Custodial
        Agreement”.

       

      Custodian:
        Deutsche Bank Trust Company Americas, or the Custodian’s successor in interest
        or permitted assigns, or any successor to the Custodian under the Custodial
        Agreement as therein provided.

       

      Cut-off
        Date:
        The
        date or dates designated as such on the related Mortgage Loan Schedule with
        respect to the related Mortgage Loan Package.

       

      Deemed
        Material and Adverse Representation:
        Each
        representation and warranty identified as such in Subsection 9.02
        of this
        Agreement.

       

      Deleted
        Mortgage Loan:
        A
        Mortgage Loan that is repurchased or replaced or to be replaced with a Qualified
        Substitute Mortgage Loan by the Seller in accordance with the terms of this
        Agreement.

       

      Depositor:
        The
        depositor, as such term is defined in Regulation AB, with respect to any
        Securitization Transaction.

       

      Determination
        Date: The
        date
        specified in the Servicing Agreement (with respect to each Mortgage Loan,
        for an
        interim period, as specified therein).

       

      Due
        Date:
        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 each Remittance Date and any Mortgage Loan, the period commencing
        on
        the day immediately succeeding the Due Date for such Mortgage Loan occurring
        in
        the month preceding the month of the Remittance Date and ending on the next
        Due
        Date.

       

      Equity
        Take-Out Refinanced Mortgage Loan:
        A
        Mortgage Loan used to refinance an existing mortgage loan, the proceeds of
        which
        were in excess of the outstanding principal balance of the existing mortgage
        loan.

       

      Escrow
        Account:
        The
        separate account created and maintained pursuant to Section 2.06 of the
        Servicing Agreement (with respect to each Mortgage Loan, as specified
        therein).

       

      Escrow
        Payments:
        With
        respect to any Mortgage Loan, the amounts constituting ground rents, taxes,
        assessments, water rates, sewer rents, municipal charges, mortgage insurance
        premiums, fire and hazard insurance premiums, condominium charges, and any
        other
        payments required to be escrowed by the Mortgagor with the mortgagee pursuant
        to
        the Mortgage or any other document.

       

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

       

      Fannie
        Mae:
        Fannie
        Mae, f/k/a the Federal National Mortgage Association, or any successor
        thereto.

       

      Fannie
        Mae Guides:
        The
        Fannie Mae Sellers’ Guide and the Fannie Mae Servicers’ Guide and all amendments
        or additions thereto.

       

      Fannie
        Mae Transfer:
        As
        defined in Section
        13
        hereof.

       

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

       

      FHA:
        The
        Federal Housing Administration, an agency within the United States Department
        of
        Housing and Urban Development, or any successor thereto and including the
        Federal Housing Commissioner and the Secretary of Housing and Urban Development
        where appropriate under the FHA Regulations.

       

      FHA
        Approved Mortgagee:
        A
        corporation or institution approved as a mortgagee by the FHA under the Act,
        and
        applicable HUD regulations, and eligible to own and service mortgage loans
        such
        as the FHA mortgage loans.

       

      First
        Lien Loan:
        A
        Mortgage Loan secured by a first lien Mortgage on the related Mortgaged
        Property.

       

      Fitch:
        Fitch,
        Inc., or its successor in interest.

       

      Fixed
        Rate Mortgage Loan:
        A fixed
        rate mortgage loan purchased pursuant to this Agreement.

       

      Freddie
        Mac:
        Freddie
        Mac, f/k/a the Federal Home Loan Mortgage Corporation, or any successor
        thereto.

       

      Freddie
        Mac Transfer:
        As
        defined in Section
        13
        hereof.

       

      Gross
        Margin:
        With
        respect to each Adjustable Rate Mortgage Loan, the fixed percentage amount
        set
        forth in the related Mortgage Note which amount is added to the Index in
        accordance with the terms of the related Mortgage Note to determine on each
        Interest Rate Adjustment Date the Mortgage Interest Rate for such Mortgage
        Loan.

       

      High
        Cost Loan:
        A
        Mortgage Loan (a) covered by the Home Ownership and Equity Protection Act
        of 1994 (“HOEPA”),
        (b)
        with an “annual percentage rate” or total “points and fees” payable by the
        related Mortgagor (as each such term is calculated under HOEPA) that exceed
        the
        thresholds set forth by HOEPA and its implementing regulations, including
        12
        C.F.R. § 226.32(a)(1)(i) and (ii), (c) classified as a “high cost home,”
“threshold,” “covered,” (excluding New Jersey “Covered Home Loans” as that term
        was defined in clause (1) of the definition of that term in the New Jersey
        Home Ownership Security Act of 2002 that were originated between November
        26,
        2003 and July 7, 2004), “high risk home,” “predatory” or similar loan under any
        other applicable state, federal or local law (or a similarly classified loan
        using different terminology under a law imposing heightened regulatory scrutiny
        or additional legal liability for residential mortgage loans having high
        interest rates, points and/or fees) or (d) categorized as High Cost pursuant
        to
        Appendix E of Standard & Poor’s Glossary. For avoidance of doubt, the
        parties agree that this definition shall apply to any law regardless of whether
        such law is presently, or in the future becomes, the subject of judicial
        review
        or litigation.

       

      Home
        Loan:
        A
        Mortgage Loan categorized as Home Loan pursuant to Appendix E of Standard
&
Poor’s Glossary.

       

      HUD:
        The
        Department of Housing and Urban Development, or any federal agency or official
        thereof which may from time to time succeed to the functions thereof with
        regard
        to FHA Mortgage Insurance. The term “HUD,”
for
        purposes of this Agreement, is also deemed to include subdivisions thereof
        such
        as the FHA and Government National Mortgage Association.

       

      Index:
        The
        index indicated in the related Mortgage Note for each Adjustable Rate Mortgage
        Loan.

       

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

       

      Insured
        Depository Institution:
        Insured
        Depository Institution shall have the meaning ascribed to such term by Section
        1813(c)(2) of Title 12 of the United States Code, as amended from time to
        time.

       

      Interest
        Rate Adjustment Date:
        With
        respect to each Adjustable Rate Mortgage Loan, the date, specified in the
        related Mortgage Note and the related Mortgage Loan Schedule, on which the
        Mortgage Interest Rate is adjusted.

       

      Lifetime
        Rate Cap:
        The
        provision of each Mortgage Note related to an Adjustable Rate Mortgage Loan
        which provides for an absolute maximum Mortgage Interest Rate thereunder.
        The
        Mortgage Interest Rate during the terms of each Adjustable Rate Mortgage
        Loan
        shall not at any time exceed the Mortgage Interest Rate at the time of
        origination of such Adjustable Rate Mortgage Loan by more than the Lifetime
        Rate
        Cap set forth as an amount per annum on the related Mortgage Loan
        Schedule.

       

      Limited
        Documentation Program:
        The
        guidelines under which the Originator generally originates Mortgage Loans
        principally on the basis of the Loan-to-Value Ratio of the related Mortgage
        Loan
        and the creditworthiness of the Mortgagor.

       

      Liquidation
        Proceeds:
        Cash
        received in connection with the liquidation of a defaulted Mortgage Loan,
        whether through the sale or assignment of such Mortgage Loan, trustee’s sale,
        foreclosure sale or otherwise or the sale of the related Mortgaged Property
        if
        the Mortgaged Property is acquired in satisfaction of the Mortgage
        Loan.

       

      Loan-to-Value
        Ratio
        or
LTV:
        With
        respect to any Mortgage Loan, the ratio (expressed as a percentage) of the
        outstanding principal amount of the Mortgage Loan as of the related Cut-off
        Date
        (unless otherwise indicated), to the lesser of (a) the Appraised Value of
        the Mortgaged Property at origination and (b) if the Mortgage Loan was made
        to finance the acquisition of the related Mortgaged Property, the purchase
        price
        of the Mortgaged Property.

       

      Manufactured
        Home:
        A
        single family residential unit that is constructed in a factory in sections
        in
        accordance with the Federal Manufactured Home Construction and Safety Standards
        adopted on July 15, 1976, by the Department of Housing and Urban Development
        (“HUD
        Code”),
        as
        amended in 2000, which preempts state and local building codes. Each unit
        is
        identified by the presence of a HUD Plate/Compliance Certificate label. The
        sections are then transported to the site and joined together and affixed
        to a
        pre-built permanent foundation (which satisfies the manufacturer’s requirements
        and all state, county, and local building codes and regulations). The
        manufactured home is built on a non-removable, permanent frame chassis that
        supports the complete unit of walls, floors, and roof. The underneath part
        of
        the home may have running gear (wheels, axles, and brakes) that enable it
        to be
        transported to the permanent site. The wheels and hitch are removed prior
        to
        anchoring the unit to the permanent foundation. The manufactured home must
        be
        classified as real estate and taxed accordingly. The permanent foundation
        may be
        on land owned by the Mortgagor or may be on leased land.

       

      Monthly
        Payment:
        The
        scheduled monthly payment of principal and interest on a Mortgage
        Loan.

       

      Moody’s:
        Moody’s
        Investors Service, Inc., and any successor thereto.

       

      Mortgage:
        The
        mortgage, deed of trust or other instrument securing a Mortgage Note, which
        creates a first lien, in the case of a First Lien Loan, or a second lien,
        in the
        case of a Second Lien Loan, on an unsubordinated estate in fee simple in
        real
        property securing the Mortgage Note; except that with respect to real property
        located in jurisdictions in which the use of leasehold estates for residential
        properties is a widely-accepted practice, the mortgage, deed of trust or
        other
        instrument securing the Mortgage Note may secure and create, with respect
        to a
        First Lien Loan, a first lien, and with respect to a Second Lien Loan, a
        second
        lien, in each case, upon a leasehold estate of the Mortgagor.

       

      Mortgage
        File:
        The
        items pertaining to a particular Mortgage Loan referred to in Exhibit A
        annexed
        hereto, and any additional documents required to be added to the Mortgage
        File
        pursuant to this Agreement.

       

      Mortgage
        Interest Rate:
        The
        annual rate of interest borne on a Mortgage Note with respect to each Mortgage
        Loan.

       

      Mortgage
        Interest Rate Cap:
        With
        respect to an Adjustable Rate Mortgage Loan, the limit on each Mortgage Interest
        Rate adjustment as set forth in the related Mortgage Note.

       

      Mortgage
        Loan:
        An
        individual Mortgage Loan which is the subject of this Agreement, each Mortgage
        Loan originally sold and subject to this Agreement being identified on the
        applicable Mortgage Loan Schedule, which Mortgage Loan includes without
        limitation the Mortgage File, the Monthly Payments, Principal Prepayments,
        Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, Servicing
        Rights and all other rights, benefits, proceeds and obligations arising from
        or
        in connection with such Mortgage Loan, excluding replaced or repurchased
        mortgage loans.

       

      Mortgage
        Loan Documents:
        The
        documents required to be delivered to the Custodian pursuant to Subsection 6.03
        hereof
        with respect to any Mortgage Loan.

       

      Mortgage
        Loan Package:
        Each
        pool of Mortgage Loans, which shall be purchased by the Purchaser from the
        Seller from time to time on each Closing Date.

       

      Mortgage
        Loan Schedule:
        The
        schedule of Mortgage Loans setting forth the following information with respect
        to each Mortgage Loan in the related Mortgage Loan Package: (1) the Seller’s
        Mortgage Loan identifying number; (2) the Mortgagor’s name; (3) the street
        address of the Mortgaged Property including the city, state and zip code;
        (4) a
        code indicating whether the Mortgagor is self-employed; (5) a code indicating
        whether the Mortgaged Property is owner-occupied; (6) the number and type
        of
        residential units constituting the Mortgaged Property; (7) the original months
        to maturity or the remaining months to maturity from the related Cut-off
        Date,
        in any case based on the original amortization schedule and, if different,
        the
        maturity expressed in the same manner but based on the actual amortization
        schedule; (8) with respect to each First Lien Loan, the Loan-to-Value Ratio
        at
        origination, and with respect to each Second Lien Loan, the CLTV at origination;
        (9) the Mortgage Interest Rate as of the related Cut-off Date; (10) the date
        on
        which the Monthly Payment was due on the Mortgage Loan and, if such date
        is not
        consistent with the Due Date currently in effect, such Due Date; (11) the
        stated
        maturity date; (12) the first payment date; (13) the amount of the Monthly
        Payment as of the related Cut-off Date; (14) the last payment date on which
        a
        payment was actually applied to the outstanding principal balance; (15) the
        original principal amount of the Mortgage Loan; (16) the principal balance
        of
        the Mortgage Loan as of the close of business on the related Cut-off Date,
        after
        deduction of payments of principal due and collected on or before the related
        Cut-off Date; (17) with respect to each Second Lien Loan and First Lien Loan
        with a second lien behind it, the combined principal balance of the Mortgage
        Loan as of the close of business on the related Cut-off Date, after deduction
        of
        payments of principal due and collected on or before the related Cut-off
        Date;
        (18) a code indicating whether there is a simultaneous second; (19) delinquency
        status as of the related Cut-off Date; (20) with respect to each Adjustable
        Rate
        Mortgage Loan, the Interest Rate Adjustment Date; (21) with respect to each
        Adjustable Rate Mortgage Loan, the Gross Margin; (22) with respect to each
        Adjustable Rate Mortgage Loan , the Lifetime Rate Cap under the terms of
        the
        Mortgage Note; (23) with respect to each Adjustable Rate Mortgage Loan, a
        code
        indicating the type of Index; (24) the type of Mortgage Loan (i.e., Fixed
        Rate
        or Adjustable Rate Mortgage Loan, First or Second Lien Loan); (25) a code
        indicating the purpose of the loan (i.e., purchase, rate and term refinance,
        equity take-out refinance); (26) a code indicating the documentation style
        (i.e., full, alternative or reduced); (27) the loan credit classification
        (as
        described in the Underwriting Guidelines); (28) whether such Mortgage Loan
        provides for a prepayment penalty and, if applicable, the prepayment penalty
        period; (29) the Mortgage Interest Rate as of origination; (30) the credit
        risk
        score (FICO score); (31) the date of origination; (32) with respect to each
        Adjustable Rate Mortgage Loan, the Mortgage Interest Rate adjustment period;
        (33) with respect to each Adjustable Rate Mortgage Loan, the Mortgage Interest
        Rate adjustment percentage; (34) with respect to each Adjustable Rate Mortgage
        Loan, the Mortgage Interest Rate floor; (35) with respect to each Adjustable
        Rate Mortgage Loan, the Mortgage Interest Rate Cap as of the first Interest
        Rate
        Adjustment Date; (36) with respect to each Adjustable Rate Mortgage Loan,
        the
        Periodic Rate Cap subsequent to the first Interest Rate Adjustment Date;
        (37) a
        code indicating whether the Mortgage Loan is a High Cost Loan; (38) a code
        indicating whether the Mortgage Loan is a Balloon Mortgage Loan; (39) the
        Due
        Date for the first Monthly Payment; (40) the original Monthly Payment due;
        (41)
        with respect to the related Mortgagor, the debt-to-income ratio; (42) sales
        price; (43) Appraised Value; (44) appraisal type; (45) appraisal date; and
        (46)
        a code indicating whether the Mortgage Loan is a Home Loan. With respect
        to the
        Mortgage Loans in the aggregate, the Mortgage Loan Schedule shall set forth
        the
        following information, as of the related Cut-off Date: (1) the number of
        Mortgage Loans; (2) the current aggregate outstanding principal balance of
        the
        Mortgage Loans; (3) the weighted average Mortgage Interest Rate of the Mortgage
        Loans; (4) the weighted average maturity of the Mortgage Loans; (5) the
        applicable Cut-off Date; and (6) the applicable Closing Date.

       

      Mortgage
        Note:
        The
        note or other evidence of the indebtedness of a Mortgagor secured by a Mortgage.
        

       

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

       

      Mortgagor:
        The
        obligor on a Mortgage Note.

       

      Non-Convertible
        Mortgage Loan:
        Any
        individual Adjustable Rate Mortgage Loan purchased pursuant to this Agreement
        which does not contain a provision pursuant to which the Mortgagor may convert
        the Adjustable Rate Mortgage Loan to a Fixed Rate Mortgage Loan.

       

      Nonrecoverable
        Advance:
        Any
        advance previously made or proposed to be made in respect of a Mortgage Loan
        which, in the good faith judgment of the Originator, will not or, in the
        case of
        a proposed advance, would not, be ultimately recoverable from related Insurance
        Proceeds, Liquidation Proceeds or otherwise. The determination by the Originator
        that it has made a Nonrecoverable Advance or that any proposed advance of
        principal and interest, if made, would constitute a Nonrecoverable Advance,
        shall be evidenced by an Officers’ Certificate delivered to the
        Purchaser.

       

      OCC:
        Office
        of the Comptroller of the Currency, and any successor thereto.

       

      Officer’s
        Certificate:
        A
        certificate signed by the Chairman of the Board or the Vice Chairman of the
        Board or a President or a Vice President and by the Treasurer or the Secretary
        or one of the Assistant Treasurers or Assistant Secretaries of the Seller,
        and
        delivered to the Purchaser as required by this Agreement.

       

      Opinion
        of Counsel:
        A
        written opinion of counsel, who may be counsel for the Seller, reasonably
        acceptable to the Purchaser, provided that any Opinion of Counsel relating
        to
        (a) the qualification of any account required to be maintained pursuant to
        this Agreement as an Eligible Account, (b) qualification of the Mortgage
        Loans in a REMIC or (c) compliance with the REMIC Provisions, must be
        (unless otherwise stated in such Opinion of Counsel) an opinion of counsel
        who
        (i) is in fact independent of the Seller and any servicer of the Mortgage
        Loans, (ii) does not have any material direct or indirect financial
        interest in the Seller or any servicer of the Mortgage Loans or in an Affiliate
        of either and (iii) is not connected with the Seller or any servicer of the
        Mortgage Loans as an officer, employee, director or person performing similar
        functions.

       

      Originator:
        New
        Century Mortgage Corporation, its successors in interest and
        assigns.

       

      Periodic
        Rate Cap:
        The
        provision of each Mortgage Note related to an Adjustable Rate Mortgage Loan
        which provides for an absolute maximum amount by which the Mortgage Interest
        Rate therein may increase or decrease on an Interest Rate Adjustment Date
        above
        or below the Mortgage Interest Rate previously in effect. The Periodic Rate
        Cap
        for each Adjustable Rate Mortgage Loan is the rate set forth as such on the
        related Mortgage Loan Schedule.

       

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

       

      Preliminary
        Mortgage Schedule:
        As
        defined in Section
        3.

       

      Principal
        Prepayment:
        Any
        payment or other recovery of principal on a Mortgage Loan which is received
        in
        advance of its scheduled Due Date, including any prepayment penalty or premium
        thereon and which is not accompanied by an amount of interest representing
        scheduled interest due on any date or dates in any month or months subsequent
        to
        the month of prepayment.

       

      Purchase
        Price:
        The
        price paid on the related Closing Date by the Purchaser to the Seller in
        exchange for the Mortgage Loans purchased on such Closing Date as calculated
        in
Section
        4
        of this
        Agreement.

       

      Purchase
        Price and Terms Agreement:
        Those
        certain agreements setting forth the general terms and conditions of the
        transactions consummated herein and identifying the Mortgage Loans to be
        purchased from time to time hereunder, by and between the Seller, the Originator
        and the Purchaser.

       

      Purchaser:
        Morgan
        Stanley Mortgage Capital Inc., or its successor in interest or assigns or
        any
        successor to the Purchaser under this Agreement as herein provided.

       

      Qualified
        Appraiser:
        An
        appraiser, duly appointed by the Seller or the Originator, who had no interest,
        direct or indirect, in the Mortgaged Property or in any loan made on the
        security thereof, and whose compensation was not affected by the approval
        or
        disapproval of the Mortgage Loan, and such appraiser and the appraisal made
        by
        such appraiser both satisfied the requirements of Title XI of the Financial
        Institutions Reform, Recovery, and Enforcement Act of 1989 and the regulations
        promulgated thereunder, all as in effect on the date the Mortgage Loan was
        originated.

       

      Qualified
        Correspondent:
        Any
        Person from which the Seller purchased Mortgage Loans, provided that the
        following conditions are satisfied: (i) such Mortgage Loans were originated
        pursuant to an agreement between the Seller and such Person that contemplated
        that such Person would underwrite mortgage loans from time to time, for sale
        to
        the Seller, in accordance with underwriting guidelines designated by the
        Seller
        (“Designated
        Guidelines”)
        or
        guidelines that do not vary materially from such Designated Guidelines; (ii)
        such Mortgage Loans were in fact underwritten as described in clause (i)
        above
        and were acquired by the Seller within 180 days after origination; (iii)
        either
        (x) the Designated Guidelines were, at the time such Mortgage Loans were
        originated, used by the Seller in origination of mortgage loans of the same
        type
        as the Mortgage Loans for the Seller’s own account or (y) the Designated
        Guidelines were, at the time such Mortgage Loans were underwritten, designated
        by the Seller on a consistent basis for use by lenders in originating mortgage
        loans to be purchased by the Seller; and (iv) the Seller employed, at the
        time
        such Mortgage Loans were acquired by the Seller, pre-purchase or post-purchase
        quality assurance procedures (which may involve, among other things, review
        of a
        sample of mortgage loans purchased during a particular time period or through
        particular channels) designed to ensure that Persons from which it purchased
        mortgage loans properly applied the underwriting criteria designated by the
        Seller.

       

      Qualified
        Insurer:
        An
        insurance company duly qualified as such under the laws of the states in
        which
        the Mortgaged Properties are located, duly authorized and licensed in such
        states to transact the applicable insurance business and to write the insurance
        provided, approved as an insurer by Fannie Mae and Freddie Mac and whose
        claims
        paying ability is rated in the highest rating category by any of the Rating
        Agencies with respect to primary mortgage insurance and in the two highest
        rating categories by Best’s with respect to hazard and flood insurance (or such
        other rating as may be required by a Rating Agency in connection with a
        Securitization Transaction in order to achieve the desired ratings for the
        securities to be issued in connection with such Securitization
        Transaction).

       

      Qualified
        Substitute Mortgage Loan:
        A
        mortgage loan eligible to be substituted by the Seller for a Deleted Mortgage
        Loan which must, on the date of such substitution, (i) have an outstanding
        principal balance, after deduction of all scheduled payments due in the month
        of
        substitution (or in the case of a substitution of more than one mortgage
        loan
        for a Deleted Mortgage Loan, an aggregate principal balance), not in excess
        of
        the outstanding principal balance of the Deleted Mortgage Loan (the amount
        of
        any shortfall will be deposited in the Custodial Account by the Seller in
        the
        month of substitution); (ii) have a Mortgage Interest Rate not less than
        and not more than 1% greater than the Mortgage Interest Rate of the Deleted
        Mortgage Loan; (iii) have a remaining term to maturity not greater than and
        not more than one year less than that of the Deleted Mortgage Loan; (iv) be
        of the same type as the Deleted Mortgage Loan (i.e., fixed rate or adjustable
        rate with same Mortgage Interest Rate Caps); and (v) comply with each
        representation and warranty (respecting individual Mortgage Loans) set forth
        in
Section
        9
        hereof.

       

      Rating
        Agency:
        Any of
        Fitch, Moody’s or Standard & Poor’s, or their respective successors
        designated by the Purchaser.

       

      Reconstitution:
        A Whole
        Loan Transfer or a Securitization Transaction.

       

      Reconstitution
        Agreements:
        The
        agreement or agreements entered into by the Seller and/or the Originator
        and the
        Purchaser and/or certain third parties on the Reconstitution Date or Dates
        with
        respect to any or all of the Mortgage Loans sold hereunder, in connection
        with a
        Whole Loan Transfer, Agency Transfer or a Securitization Transaction pursuant
        to
Section 13,
        including, but not limited to, a seller’s warranties and servicing agreement
        with respect to a Whole Loan Transfer, and a pooling and servicing agreement
        and/or seller/servicer agreements and related custodial/trust agreement and
        documents with respect to a Securitization Transaction.

       

      Reconstitution
        Date:
        As
        defined in Section
        13.

       

      Regulation
        AB:
        Subpart
        229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject
        to
        such clarification and interpretation as have been provided by the Commission
        in
        the adopting release (Asset-Backed Securities, Securities Act Release No.
        33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
        Commission, or as may be provided by the Commission or its staff from time
        to
        time.

       

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

       

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

       

      Remittance
        Date:
        The
        date specified in the Servicing Agreement (with respect to each Mortgage
        Loan,
        as specified therein).

       

      Repurchase
        Price:
        As
        defined in the related Purchase Price and Terms Agreement.

       

      RESPA:
        Real
        Estate Settlement Procedures Act, as amended from time to time.

       

      Second
        Lien Loan:
        A
        Mortgage Loan secured by a second lien Mortgage on the related Mortgaged
        Property.

       

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

       

      Securitization
        Transaction:
        Any
        transaction involving either (1) a sale or other transfer of some or all
        of the
        Mortgage Loans directly or indirectly to an issuing entity in connection
        with an
        issuance of publicly offered or privately placed, rated or unrated
        mortgage-backed securities or (2) an issuance of publicly offered or privately
        placed, rated or unrated securities, the payments on which are determined
        primarily by reference to one or more portfolios of residential mortgage
        loans
        consisting, in whole or in part, of some or all of the Mortgage
        Loans.

       

      Seller:
        NC
        Capital Corporation, its successors in interest and assigns.

       

      Seller
        Information:
        As
        defined in Subsection
        32.04(a).

       

      Servicing
        Agreement:
        The
        Amended and Restated Interim Servicing Agreement, dated as of December 1,
        2005,
        between the Purchaser and the Originator, providing for the Originator to
        service the Mortgage Loans as specified in the Servicing Agreement.

       

      Servicing
        Fee:
        With
        respect to each Mortgage Loan subject to the Servicing Agreement, a fee payable
        monthly equal to one-twelfth of the product of (a) the Servicing Fee Rate
        and (b) the outstanding principal balance of such Mortgage Loan. Such fee
        shall be payable monthly and shall be pro-rated for any portion of a month
        during which the Mortgage Loan is serviced by the Originator under the Servicing
        Agreement. The obligation of the Purchaser to pay the Servicing Fee is limited
        to, and the Servicing Fee is payable solely from, the interest portion
        (including recoveries with respect to interest from Liquidation Proceeds,
        to the
        extent permitted by this Agreement) of such Monthly Payment collected by
        the
        Originator, or as otherwise provided under this Agreement.

       

      Servicing
        Fee Rate:
        An
        amount per annum as set forth in the Servicing Agreement.

       

      Servicing
        File:
        With
        respect to each Mortgage Loan, the file retained by the Originator consisting
        of
        originals of all documents in the Mortgage File which are not delivered to
        the
        Purchaser or the Custodian and copies of the Mortgage Loan Documents set
        forth
        in Section 2 of the Custodial Agreement.

       

      Servicing
        Rights:
        Any and
        all of the following: (a) any and all rights to service the Mortgage Loans;
        (b) any payments to or monies received by the Seller for servicing the
        Mortgage Loans; (c) any late fees, penalties or similar payments with
        respect to the Mortgage Loans; (d) all agreements or documents creating,
        defining or evidencing any such servicing rights to the extent they relate
        to
        such servicing rights and all rights of the Seller thereunder; (e) Escrow
        Payments or other similar payments with respect to the Mortgage Loans and
        any
        amounts actually collected by the Seller with respect thereto; (f) all
        accounts and other rights to payment related to any of the property described
        in
        this paragraph; and (g) any and all documents, files, records, servicing
        files, servicing documents, servicing records, data tapes, computer records,
        or
        other information pertaining to the Mortgage Loans or pertaining to the past,
        present or prospective servicing of the Mortgage Loans.

       

      Sponsor:
        The
        sponsor, as such term is defined in Regulation AB, with respect to any
        Securitization Transaction.

       

      Standard
        & Poor’s:
        Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies
        Inc., and any successor thereto.

       

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

       

      Stated
        Principal Balance:
        As to
        each Mortgage Loan on any date of determination, (i) the principal balance
        of such Mortgage Loan at the related Cut-off Date after giving effect to
        payments of principal due on or before such date, to the extent actually
        received, minus (ii) all amounts previously distributed to the Purchaser
        with respect to the related Mortgage Loan representing payments or recoveries
        of
        principal on such Mortgage Loan.

       

      Static
        Pool Information:
        Static
        pool information as described in Item 1105(a)(1)-(3) and 1105(c) of Regulation
        AB.

       

      Successor
        Servicer:
        Any
        servicer of one or more Mortgage Loans designated by the Purchaser as being
        entitled to the benefits of the indemnifications set forth in Sections 9.03
        and
        14.01.

       

      Third-Party
        Originator:
        Each
        Person, other than a Qualified Correspondent, that originated Mortgage Loans
        acquired by the Seller.

       

      Transfer
        Date:
        The
        date on which the Purchaser, or its designee, shall receive the transfer
        of
        servicing responsibilities and begin to perform the servicing of the Mortgage
        Loans with respect to the related Mortgage Loan Package, and the Seller shall
        cease all servicing responsibilities. Such date shall occur on the day indicated
        by the Purchaser to the Seller in accordance with the Servicing
        Agreement.

       

      Underwriting
        Guidelines:
        The
        underwriting guidelines of the Originator, a copy of which is attached hereto
        as
Exhibit G
        and a
        then-current copy of which shall be attached as an exhibit to the related
        Assignment and Conveyance.

       

      VA
        Approved Lender:
        Those
        lenders which are approved by the VA to act as a lender in connection with
        the
        origination of VA mortgage loans.

       

      Whole
        Loan Agreement:
        Any
        Reconstitution Agreement in respect of a Whole Loan Transfer.

       

      Whole
        Loan Transfer:
        Any
        sale or transfer of some or all of the Mortgage Loans, other than a
        Securitization Transaction. 

       

      
        	
              	SECTION
                2.	
                Agreement
                  to Purchase.

              

      

       

      The
        Seller agrees to sell from time to time, and the Purchaser agrees to purchase
        from time to time, Mortgage Loans having an aggregate principal balance on
        the
        related Cut-off Date in an amount as set forth in the related Purchase Price
        and
        Terms Agreement, or in such other amount as agreed by the Purchaser and the
        Seller as evidenced by the actual aggregate principal balance of the Mortgage
        Loans accepted by the Purchaser on each Closing Date.

       

      
        	
              	SECTION
                3.	
                Mortgage
                  Schedules.

              

      

       

      The
        Seller from time to time shall provide the Purchaser with certain information
        constituting a preliminary listing of the Mortgage Loans to be purchased
        on each
        Closing Date in accordance with the related Purchase Price and Terms Agreement
        and this Agreement (each, a “Preliminary
        Mortgage Schedule”).

       

      The
        Seller is obligated to deliver those Mortgage Loans owned by the Seller and
        funded by the Originator pursuant to the original terms of the Originator’s
        commitment to the mortgagor. The Seller shall deliver the related Mortgage
        Loan
        Schedule for the Mortgage Loans to be purchased on a particular Closing Date
        to
        the Purchaser at least two (2) Business Days prior to the related Closing
        Date.
        The related Mortgage Loan Schedule shall be the related Preliminary Mortgage
        Schedule with those Mortgage Loans which have not been funded prior to the
        related Closing Date deleted.

       

      
        	
              	SECTION
                4.	
                Purchase
                  Price.

              

      

       

      The
        Purchase Price for each Mortgage Loan shall be the percentage of par as stated
        in the related Purchase Price and Terms Agreement (subject to adjustment
        as
        provided therein), multiplied by the aggregate principal balance, as of the
        related Cut-off Date, of the Mortgage Loans listed on the related Mortgage
        Loan
        Schedule, after application of scheduled payments of principal due on or
        before
        the related Cut-off Date, but only to the extent such payments were actually
        received. The initial principal amount of the related Mortgage Loans shall
        be
        the aggregate principal balance of the Mortgage Loans, so computed as of
        the
        related Cut-off Date. If so provided in the related Purchase Price and Terms
        Agreement, portions of the Mortgage Loans shall be priced
        separately.

       

      In
        addition to the Purchase Price as described above, the Purchaser shall pay
        to
        the Seller, at closing, accrued interest on the current principal amount
        of the
        related Mortgage Loans as of the related Cut-off Date at the weighted average
        Mortgage Interest Rate of those Mortgage Loans. The Purchase Price plus accrued
        interest as set forth in the preceding paragraph shall be paid to the Seller
        by
        wire transfer of immediately available funds to an account designated by
        the
        Seller in writing.

       

      The
        Purchaser shall be entitled to (l) all scheduled principal due after the
        related Cut-off Date, (2) all other recoveries of principal collected on or
        after the related Cut-off Date, and (3) all payments of interest on the
        Mortgage Loans net of applicable Servicing Fees (minus that portion of any
        such
        payment which is allocable to the period prior to the related Cut-off Date).
        The
        outstanding principal balance of each Mortgage Loan as of the related Cut-off
        Date is determined after application of payments of principal due on or before
        the related Cut-off Date, to the extent actually collected, together with
        any
        unscheduled principal prepayments collected prior to such Cut-off Date;
        provided, however, that payments of scheduled principal and interest paid
        prior
        to such Cut-off Date, but to be applied on a Due Date beyond the related
        Cut-off
        Date shall not be applied to the principal balance as of the related Cut-off
        Date. Such prepaid amounts shall be the property of the Purchaser. The Seller
        shall deposit any such prepaid amounts into the Custodial Account, which
        account
        is established for the benefit of the Purchaser for subsequent remittance
        by the
        Seller to the Purchaser.

       

      
        	
              	SECTION
                5.	
                Examination
                  of Mortgage Files.

              

      

       

      At
        least
        three (3) Business Days prior to the related Closing Date, the Seller shall
        (a) deliver to the Purchaser or its designee in escrow, for examination
        with respect to each Mortgage Loan to be purchased, the related Mortgage
        File,
        including a copy of the Assignment of Mortgage, pertaining to each Mortgage
        Loan, or (b) make the related Mortgage File available to the Purchaser for
        examination at such other location as shall otherwise be acceptable to the
        Purchaser. Such examination may be made by the Purchaser or its designee
        at any
        reasonable time before or after the related Closing Date. If the Purchaser
        makes
        such examination prior to the related Closing Date and determines, in its
        sole
        discretion, that any Mortgage Loans are unacceptable to the Purchaser for
        any
        reason, such Mortgage Loans shall be deleted from the related Mortgage Loan
        Schedule, and may be replaced by a Qualified Substitute Mortgage Loan (or
        Loans)
        acceptable to the Purchaser. The Purchaser may, at its option and without
        notice
        to the Seller, purchase some or all of the Mortgage Loans without conducting
        any
        partial or complete examination. The fact that the Purchaser or its designee
        has
        conducted or has failed to conduct any partial or complete examination of
        the
        Mortgage Files shall not affect the Purchaser’s (or any of its successor’s)
        rights to demand repurchase, substitution or other relief as provided
        herein.

       

      
        	
              	SECTION
                6.	
                Conveyance
                  from Seller to Purchaser.

              

      

       

      Subsection
        6.01  Conveyance
        of Mortgage Loans; Possession of Servicing Files.

       

      The
        Seller, simultaneously with the delivery of the Mortgage Loan Schedule with
        respect to the related Mortgage Loan Package to be purchased on each Closing
        Date, shall execute and deliver an Assignment and Conveyance Agreement in
        the
        form attached hereto as Exhibit H
        (the
“Assignment
        and Conveyance Agreement”).
        The
Seller
        shall cause the Servicing File retained by the Originator pursuant to this
        Agreement to be appropriately identified in the Seller’s computer system and/or
        books and records, as appropriate, to clearly reflect the sale of the related
        Mortgage Loan to the Purchaser. The Seller shall cause the Originator to
        release
        from its custody the contents of any Servicing File retained by it only in
        accordance with this Agreement or the Servicing Agreement, except when such
        release is required in connection with a repurchase of any such Mortgage
        Loan
        pursuant to Subsection 9.03.

       

      Subsection
        6.02  Books
        and Records.

       

      Record
        title to each Mortgage as of the related Closing Date shall be in the name
        of
        the Seller, an Affiliate of the Seller, the Purchaser or one or more designees
        of the Purchaser, as the Purchaser shall select. Notwithstanding the foregoing,
        each Mortgage and related Mortgage Note shall be possessed solely by the
        Purchaser or the appropriate designee of the Purchaser, as the case may be.
        All
        rights arising out of the Mortgage Loans including, but not limited to, all
        funds received by the Seller or the Originator after the related Cut-off
        Date on
        or in connection with a Mortgage Loan shall be vested in the Purchaser or
        one or
        more designees of the Purchaser; provided, however, that all funds received
        on
        or in connection with a Mortgage Loan shall be received and held by the Seller
        or the Originator in trust for the benefit of the Purchaser or the appropriate
        designee of the Purchaser, as the case may be, as the owner of the Mortgage
        Loans pursuant to the terms of this Agreement.

       

      The
        sale
        of each Mortgage Loan shall be reflected on the Seller’s balance sheet and other
        financial statements as a sale of assets by the Seller.

       

      The
        Seller shall or shall cause the Originator to be responsible for maintaining,
        and shall maintain, a complete set of books and records for each Mortgage
        Loan
        which shall be marked clearly to reflect the ownership of each Mortgage Loan
        by
        the Purchaser. In particular, the Seller shall or shall cause the Originator
        to
        maintain in its possession, available for inspection by the Purchaser, and
        shall
        deliver to the Purchaser upon demand, evidence of compliance with all federal,
        state and local laws, rules and regulations, and requirements of Fannie Mae
        or
        Freddie Mac, including but not limited to documentation as to the method
        used in
        determining the applicability of the provisions of the National Flood Insurance
        Act of 1968, as amended, to the Mortgaged Property, documentation evidencing
        insurance coverage and periodic inspection reports, as required by the Fannie
        Mae Guides. To the extent that original documents are not required for purposes
        of realization of Liquidation Proceeds or Insurance Proceeds, documents
        maintained by the Seller or Originator may be in the form of microfilm or
        microfiche so long as the Seller or Originator complies with the requirements
        of
        the Fannie Mae Guides.

       

      Subsection
        6.03  Delivery
        of Mortgage Loan Documents.

       

      The
        Seller shall deliver and release to the Custodian no later than three (3)
        Business Days prior to the related Closing Date those Mortgage Loan Documents
        set forth on Exhibit A
        hereto
        as required by the Custodial Agreement with respect to each Mortgage Loan
        set
        forth on the related Mortgage Loan Schedule.

       

      The
        Custodian shall certify its receipt of all such Mortgage Loan Documents required
        to be delivered pursuant to the Custodial Agreement for the related Closing
        Date, as evidenced by the Initial Certification of the Custodian in the form
        annexed to the Custodial Agreement. The Seller shall comply with the terms
        of
        the Custodial Agreement and the Purchaser shall pay all fees and expenses
        of the
        Custodian.

       

      The
        Seller shall or shall cause the Originator to forward to the Custodian, or
        to
        such other Person as the Purchaser shall designate in writing, original
        documents evidencing an assumption, modification, consolidation or extension
        of
        any Mortgage Loan entered into in accordance with this Agreement within two
        weeks of their execution, provided, however, that the Seller shall provide the
        Custodian, or to such other Person as the Purchaser shall designate in writing,
        with a certified true copy of any such document submitted for recordation
        within
        two weeks of its execution, and shall promptly provide the original of any
        document submitted for recordation or a copy of such document certified by
        the
        appropriate public recording office to be a true and complete copy of the
        original within ninety days of its submission for recordation.

       

      In
        the
        event any document required to be delivered to the Custodian in the Custodial
        Agreement, including an original or copy of any document submitted for
        recordation to the appropriate public recording office, is not so delivered
        to
        the Custodian, or to such other Person as the Purchaser shall designate in
        writing, within 90 days following the related Closing Date (other than with
        respect to the Assignments of Mortgage which shall be delivered to the Custodian
        in blank and recorded subsequently by the Purchaser or its designee), and
        in the
        event that the Seller does not cure such failure within 30 days of discovery
        or
        receipt of written notification of such failure from the Purchaser, the related
        Mortgage Loan shall, upon the request of the Purchaser, be repurchased by
        the
        Seller at the price and in the manner specified in Subsection
        9.03.
        The
        foregoing repurchase obligation shall not apply in the event that the Seller
        cannot deliver an original document submitted for recordation to the appropriate
        public recording office within the specified period due to a delay caused
        by the
        recording office in the applicable jurisdiction; provided that the Seller
        shall
        instead deliver a recording receipt of such recording office or, if such
        recording receipt is not available, an officer’s certificate of a servicing
        officer of the Seller, confirming that such documents have been accepted
        for
        recording; provided that, upon request of the Purchaser and delivery by the
        Purchaser to the Seller of a schedule of the related Mortgage Loans, the
        Seller
        shall reissue and deliver to the Purchaser or its designee said officer’s
        certificate.

       

      The
        Seller shall pay all fees or costs in transferring all original documents
        to the
        Custodian or, upon written request of the Purchaser, to the Purchaser or
        the
        Purchaser’s designee. The Purchaser or the Purchaser’s designee shall be
        responsible for paying for and recording the Assignments of
        Mortgage.

       

      Subsection
        6.04  Quality
        Control Procedures.

       

      The
        Seller shall, or shall cause the Originator to, have an internal quality
        control
        program that verifies, on a regular basis, the existence and accuracy of
        the
        legal documents, credit documents, property appraisals, and underwriting
        decisions. The program shall include evaluating and monitoring the overall
        quality of the Originator’s loan production and the servicing activities of the
        Originator. The program is to ensure that the Mortgage Loans are originated
        and
        serviced in accordance with Accepted Servicing Standards and the Underwriting
        Guidelines; guard against dishonest, fraudulent, or negligent
        acts; and guard against errors and omissions by officers, employees, or other
        authorized persons.

       

      
        	
              	SECTION
                7.	
                Servicing
                  of the Mortgage Loans.

              

      

       

      The
        Mortgage Loans have been sold by the Seller to the Purchaser on a servicing
        released basis. Subject to, and upon the terms and conditions of this Agreement
        and the Servicing Agreement (with respect to each Mortgage Loan, for an interim
        period, as specified therein), the Seller hereby sells, transfers, assigns,
        conveys and delivers to the Purchaser the Servicing Rights. The Purchaser
        shall
        retain the Originator as independent contract servicer of the Mortgage Loans
        pursuant to and in accordance with the terms and conditions contained in
        the
        Servicing Agreement. Pursuant to the Servicing Agreement, the Originator
        shall
        begin servicing the Mortgage Loans on behalf of the Purchaser and shall be
        entitled to the Servicing Fee and any Ancillary Income with respect to such
        Mortgage Loans from the related Closing Date until the termination of the
        Servicing Agreement with respect to any of the Mortgage Loans as set forth
        in
        the Servicing Agreement. The Seller shall cause the Originator to service
        the
        Mortgage Loans in accordance with the terms of the Servicing
        Agreement.

       

      
        	
              	SECTION
                8.	
                Transfer
                  of Servicing.

              

      

       

      On
        the
        applicable Transfer Date, the Purchaser, or its designee, shall assume all
        servicing responsibilities related to, and the Seller shall cause the Originator
        to cease all servicing responsibilities related to the related Mortgage Loans
        subject to such Transfer Date. The Transfer Date shall be the date determined
        in
        accordance with Section 6.03 of the Servicing Agreement (with respect to
        each Mortgage Loan, for an interim period, as specified therein). 

       

      On
        or
        prior to the applicable Transfer Date, the Seller shall cause the Originator
        shall, at its sole cost and expense, take such steps as may be necessary
        or
        appropriate to effectuate and evidence the transfer of the servicing of the
        related Mortgage Loans to the Purchaser, or its designee, including but not
        limited to the following:

       

      (a)  Notice
        to Mortgagors.
        The
        Seller shall cause the Originator to mail to the Mortgagor of each related
        Mortgage Loan a letter advising such Mortgagor of the transfer of the servicing
        of the related Mortgage Loan to the Purchaser, or its designee, in accordance
        with the Cranston Gonzales National Affordable Housing Act of 1990; provided,
        however, the content and format of the letter shall have the prior approval
        of
        the Purchaser. The Seller shall cause the Originator to provide the Purchaser
        with copies of all such related notices no later than the Transfer
        Date.

       

      (b)  Notice
        to Taxing Authorities and Insurance Companies.
        The
        Seller shall cause the Originator to transmit to the applicable taxing
        authorities and insurance companies (including primary mortgage insurance
        policy
        insurers, if applicable) and/or agents, notification of the transfer of the
        servicing to the Purchaser, or its designee, and instructions to deliver
        all
        notices, tax bills and insurance statements, as the case may be, to the
        Purchaser from and after the related Transfer Date. The Seller shall cause
        the
        Originator to provide the Purchaser with copies of all such notices no later
        than such Transfer Date.

       

      (c)  Delivery
        of Servicing Records.
        The
        Seller shall cause the Originator to forward to the Purchaser, or its designee,
        all servicing records and the Servicing File in the Originator’s possession
        relating to each related Mortgage Loan including the information enumerated
        in
        the Servicing Agreement (with respect to each such Mortgage Loan, for an
        interim
        period, as specified therein).

       

      (d)  Escrow
        Payments.
        The
        Seller shall cause the Originator to provide the Purchaser, or its designee,
        with immediately available funds by wire transfer in the amount of the net
        Escrow Payments and suspense balances and all loss draft balances associated
        with the related Mortgage Loans. The Seller shall cause the Originator to
        provide the Purchaser with an accounting statement of Escrow Payments and
        suspense balances and loss draft balances sufficient to enable the Purchaser
        to
        reconcile the amount of such payment with the accounts of the Mortgage Loans.
        Additionally, the Seller shall cause the Originator to wire transfer to the
        Purchaser the amount of any agency, trustee or prepaid Mortgage Loan payments
        and all other similar amounts held by the Originator.

       

      (e)  Payoffs
        and Assumptions.
        The
        Seller shall cause the Originator to provide to the Purchaser, or its designee,
        copies of all assumption and payoff statements generated by the Originator
        on
        the related Mortgage Loans from the related Cut-off Date to the Transfer
        Date.

       

      (f)  Mortgage
        Payments Received Prior to Transfer Date.
        Prior
        to the Transfer Date all payments received by the Originator on each related
        Mortgage Loan shall be properly applied by the Originator to the account
        of the
        particular Mortgagor.

       

      (g)  Mortgage
        Payments Received After Transfer Date.
        The
        Seller shall cause the amount of any related Monthly Payments received by
        the
        Originator after the Transfer Date to be forwarded to the Purchaser by overnight
        mail on the date of receipt. The Seller shall cause the Originator to notify
        the
        Purchaser of the particulars of the payment, which notification requirement
        shall be satisfied if the Originator forwards with its payment sufficient
        information to permit appropriate processing of the payment by the Purchaser.
        The Seller shall cause the Originator to assume full responsibility for the
        necessary and appropriate legal application of such Monthly Payments received
        by
        the Originator after the Transfer Date with respect to related Mortgage Loans
        then in foreclosure or bankruptcy; provided, for purposes of this Agreement,
        necessary and appropriate legal application of such Monthly Payments shall
        include, but not be limited to, endorsement of a Monthly Payment to the
        Purchaser with the particulars of the payment such as the account number,
        dollar
        amount, date received and any special Mortgagor application instructions
        and the
        Seller shall comply with the foregoing requirements with respect to all Monthly
        Payments received by the it after the Transfer Date.

       

      (h)  Misapplied
        Payments.
        Misapplied payments shall be processed as follows:

       

      (1)  All
        parties shall cooperate in correcting misapplication errors;

       

      (2)  The
        party
        receiving notice of a misapplied payment occurring prior to the applicable
        Transfer Date and discovered after such Transfer Date shall immediately notify
        the other party;

       

      (3)  If
        a
        misapplied payment which occurred prior to the Transfer Date cannot be
        identified and said misapplied payment has resulted in a shortage in a Custodial
        Account or Escrow Account, the Seller shall or the Seller shall cause the
        Originator to be liable for the amount of such shortage. The Seller shall
        or the
        Seller shall cause the Originator to reimburse the Purchaser for the amount
        of
        such shortage within thirty (30) days after receipt of written demand
        therefor from the Purchaser;

       

      (4)  If
        a
        misapplied payment which occurred prior to the Transfer Date has created
        an
        improper Purchase Price as the result of an inaccurate outstanding principal
        balance, a check shall be issued to the party shorted by the improper payment
        application within five (5) Business Days after notice thereof by the other
        party; and

       

      (5)  Any
        check
        issued under the provisions of this Section 8(h) shall be accompanied by
        a
        statement indicating the corresponding Seller and/or the Purchaser Mortgage
        Loan
        identification number and an explanation of the allocation of any such
        payments.

       

      (i)  Books
        and Records.
        On the
        Transfer Date, the books, records and accounts of the Originator with respect
        to
        the related Mortgage Loans shall be in accordance with all applicable Purchaser
        requirements.

       

      (j)  Reconciliation.
        The
        Seller shall or shall cause the Originator to, on or before the Transfer
        Date,
        reconcile principal balances and make any monetary adjustments required by
        the
        Purchaser. Any such monetary adjustments will be transferred between the
        Seller,
        the Originator and the Purchaser as appropriate.

       

      (k)  IRS
        Forms.
        The
        Seller shall or shall cause the Originator to file all IRS forms 1099,
        1099A, 1098 or 1041 and K-1 which are required to be filed on or before the
        Transfer Date in relation to the servicing and ownership of the related Mortgage
        Loans. The Seller or Originator shall provide copies of such forms to the
        Purchaser upon request and shall reimburse the Purchaser for any costs or
        penalties incurred by the Purchaser due to the Seller’s or Originator’s failure
        to comply with this paragraph.

       

      
        	
              	SECTION
                9.	
                Representations,
                  Warranties and Covenants of the Seller; Remedies for
                  Breach.

              

      

       

      Subsection
        9.01  Representations
        and Warranties Regarding the Seller.

       

      The
        Seller represents, warrants and covenants to the Purchaser that as of the
        date
        hereof and as of each Closing Date:

       

      (a)  Due
        Organization and Authority.
        The
        Seller is a corporation duly organized, validly existing and in good standing
        under the laws of the state of California and has all licenses necessary
        to
        carry on its business as now being conducted and is licensed, qualified and
        in
        good standing in each state wherein it owns or leases any material properties
        or
        where a Mortgaged Property is located, if the laws of such state require
        licensing or qualification in order to conduct business of the type conducted
        by
        the Seller, and in any event the Seller is in compliance with the laws of
        any
        such state to the extent necessary to ensure the enforceability of the related
        Mortgage Loan and the servicing of such Mortgage Loan in accordance with
        the
        terms of this Agreement and the Servicing Agreement; the Seller has the full
        corporate power, authority and legal right to hold, transfer and convey the
        Mortgage Loans and to execute and deliver this Agreement and to perform its
        obligations hereunder and thereunder; the execution, delivery and performance
        of
        this Agreement (including all instruments of transfer to be delivered pursuant
        to this Agreement) by the Seller and the consummation of the transactions
        contemplated hereby and thereby have been duly and validly authorized; this
        Agreement and all agreements contemplated hereby have been duly executed
        and
        delivered and constitute the valid, legal, binding and enforceable obligations
        of the Seller, regardless of whether such enforcement is sought in a proceeding
        in equity or at law; and all requisite corporate action has been taken by
        the
        Seller to make this Agreement and all agreements contemplated hereby valid
        and
        binding upon the Seller in accordance with their terms;

       

      (b)  Ordinary
        Course of Business.
        The
        consummation of the transactions contemplated by this Agreement are in the
        ordinary course of business of the Seller, and the transfer, assignment and
        conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant
        to
        this Agreement are not subject to the bulk transfer or any similar statutory
        provisions in effect in any applicable jurisdiction;

       

      (c)  No
        Conflicts.
        Neither
        the execution and delivery of this Agreement, the acquisition or origination
        of
        the Mortgage Loans by the Seller, the sale of the Mortgage Loans to the
        Purchaser, the consummation of the transactions contemplated hereby and thereby,
        nor the fulfillment of or compliance with the terms and conditions of this
        Agreement, will conflict with or result in a breach of any of the terms,
        conditions or provisions of the Seller’s charter or by-laws or any legal
        restriction or any agreement or instrument to which the Seller is now a party
        or
        by which it is bound, or constitute a default or result in an acceleration
        under
        any of the foregoing, or result in the violation of any law, rule, regulation,
        order, judgment or decree to which the Seller or its property is subject, or
        result in the creation or imposition of any lien, charge or encumbrance that
        would have an adverse effect upon any of its properties pursuant to the terms
        of
        any mortgage, contract, deed of trust or other instrument, or impair the
        ability
        of the Purchaser to realize on the Mortgage Loans, impair the value of the
        Mortgage Loans, or impair the ability of the Purchaser to realize the full
        amount of any insurance benefits accruing pursuant to this
        Agreement;

       

      (d)  Ability
        to Service.
        Originator has the facilities, procedures, and experienced personnel necessary
        for the sound servicing of mortgage loans of the same type as the Mortgage
        Loans. The Originator is duly qualified, licensed, registered and otherwise
        authorized under all applicable federal, state and local laws, and regulations,
        if applicable, meets the minimum capital requirements set forth by HUD, the
        OTS,
        the OCC or the FDIC, if applicable, and is in good standing to enforce,
        originate, sell mortgage loans to, and service mortgage loans in each
        jurisdiction wherein the Mortgaged Properties are located;

       

      (e)  Reasonable
        Servicing Fee.
        The
        Originator acknowledges and agrees that the Servicing Fee, represents reasonable
        compensation for performing such services and that the entire Servicing Fee
        shall be treated by the Originator, for accounting and tax purposes, as
        compensation for the servicing and administration of the Mortgage Loans pursuant
        to this Agreement and the Servicing Agreement;

       

      (f)  Ability
        to Perform; Solvency.
        The
        Seller does not believe, nor does it have any reason or cause to believe,
        that
        it cannot perform each and every covenant contained in this Agreement. The
        Seller is solvent and the sale of the Mortgage Loans will not cause the Seller
        to become insolvent. The sale of the Mortgage Loans is not undertaken with
        the
        intent to hinder, delay or defraud any of Seller’s creditors;

       

      (g)  No
        Litigation Pending.
        There
        is no action, suit, proceeding or investigation pending or threatened against
        the Seller, before any court, administrative agency or other tribunal asserting
        the invalidity of this Agreement, seeking to prevent the consummation of
        any of
        the transactions contemplated by this Agreement or which, either in any one
        instance or in the aggregate, may result in any material adverse change in
        the
        business, operations, financial condition, properties or assets of the Seller,
        or in any material impairment of the right or ability of the Seller to carry
        on
        its business substantially as now conducted, or in any material liability
        on the
        part of the Seller, or which would draw into question the validity of this
        Agreement or the Mortgage Loans or of any action taken or to be taken in
        connection with the obligations of the Seller contemplated herein, or which
        would be likely to impair materially the ability of the Seller to perform
        under
        the terms of this Agreement;

       

      (h)  No
        Consent Required.
        No
        consent, approval, authorization or order of, or registration or filing with,
        or
        notice to any court or governmental agency or body including HUD, the FHA
        or the
        Department of Veterans Affairs is required for the execution, delivery and
        performance by the Seller of or compliance by the Seller with this Agreement
        or
        the Mortgage Loans, the delivery of a portion of the Mortgage Files to the
        Custodian or the sale of the Mortgage Loans or the consummation of the
        transactions contemplated by this Agreement, or if required, such approval
        has
        been obtained prior to the related Closing Date;

       

      (i)  Selection
        Process.
        The
        Mortgage Loans were selected from among the outstanding one- to four-family
        mortgage loans in the Seller’s portfolio at the related Closing Date as to which
        the representations and warranties set forth in Subsection
        9.02
        could be
        made and such selection was not made in a manner so as to affect adversely
        the
        interests of the Purchaser;

       

      (j)  Delivery
        to the Custodian.
        The
        Mortgage Note, the Mortgage, the Assignment of Mortgage and any other documents
        required to be delivered with respect to each Mortgage Loan pursuant to the
        Custodial Agreement, shall be delivered to the Custodian all in compliance
        with
        the specific requirements of the Custodial Agreement. With respect to each
        Mortgage Loan, the Seller will be in possession of a complete Mortgage File
        in
        compliance with Exhibit A
        hereto,
        except for such documents as will be delivered to the Custodian;

       

      (k)  Mortgage
        Loan Characteristics.
        The
        characteristics of the related Mortgage Loan Package are as set forth on
        the
        description of the pool characteristics for the applicable Mortgage Loan
        Package
        delivered pursuant to Section 11
        on the
        related Closing Date in the form attached as Exhibit B
        to each
        related Assignment and Conveyance Agreement;

       

      (l)  No
        Untrue Information.
        Neither
        this Agreement nor any information, statement, tape, diskette, report, form,
        or
        other document furnished or to be furnished pursuant to this Agreement or
        any
        Reconstitution Agreement or in connection with the transactions contemplated
        hereby (including any Securitization Transaction or Whole Loan Transfer)
        contains or will contain any untrue statement of fact or omits or will omit
        to
        state a fact necessary to make the statements contained herein or therein
        not
        misleading;

       

      (m)  Financial
        Statements.
        The
        Seller has delivered to the Purchaser financial statements as to its last
        three
        complete fiscal years and any later quarter ended more than 60 days prior
        to the
        execution of this Agreement. All such financial statements fairly present
        the
        pertinent results of operations and changes in financial position for each
        of
        such periods and the financial position at the end of each such period of
        the
        Seller and its subsidiaries and have been prepared in accordance with generally
        accepted accounting principles consistently applied throughout the periods
        involved, except as set forth in the notes thereto. In addition, the Seller
        has
        delivered information as to its loan gain and loss experience in respect
        of
        foreclosures and its loan delinquency experience for the immediately preceding
        three-year period, in each case with respect to mortgage loans owned by it
        and
        such mortgage loans serviced for others during such period, and all such
        information so delivered shall be true and correct in all material respects.
        There has been no change in the business, operations, financial condition,
        properties or assets of the Seller since the date of the Seller’s financial
        statements that would have a material adverse effect on its ability to perform
        its obligations under this Agreement. The Seller has completed any forms
        requested by the Purchaser in a timely manner and in accordance with the
        provided instructions;

       

      (n)  No
        Brokers.
        The
        Seller has not dealt with any broker, investment banker, agent or other person
        that may be entitled to any commission or compensation in connection with
        the
        sale of the Mortgage Loans;

       

      (o)  Sale
        Treatment.
        The
        Seller intends to reflect the transfer of the Mortgage Loans as a sale on
        the
        books and records of the Seller and the Seller has determined that the
        disposition of the Mortgage Loans pursuant to this Agreement will be afforded
        sale treatment for tax and accounting purposes;

       

      (p)  Owner
        of Record.
        The
        Seller is the owner of record of each Mortgage and the indebtedness evidenced
        by
        each Mortgage Note, except for the Assignments of Mortgage which have been
        sent
        for recording, and upon recordation the Seller will be the owner of record
        of
        each Mortgage and the indebtedness evidenced by each Mortgage Note, and upon
        the
        sale of the Mortgage Loans to the Purchaser, the Seller will retain the Mortgage
        Files with respect thereto in trust only for the purpose of servicing and
        supervising the servicing of each Mortgage Loan;

       

      (q)  Origination.
        The
        Originator’s decision to originate any mortgage loan or to deny any mortgage
        loan application is an independent decision based upon Originator’s Underwriting
        Guidelines, and is in no way made as a result of Purchaser’s decision to
        purchase, or not to purchase, or the price Purchaser may offer to pay for,
        any
        such mortgage loan, if originated; 

       

      (r)  Compliance
        with Anti-Money Laundering Laws.
        The
        Seller has complied with all applicable anti-money laundering laws, regulations
        and executive orders, including, without limitation, the USA Patriot Act
        of 2001
        (collectively, the “Anti-Money
        Laundering Laws”).
        Additionally, no Mortgage Loan is subject to nullification pursuant to Executive
        Order 13224 (the “Executive
        Order”)
        or the
        regulations promulgated by the Office of Foreign Assets Control of the United
        States Department of Treasury (the “OFAC
        Regulations”)
        or in
        violation of the Executive Order or the OFAC Regulations; and no Mortgagor
        is
        subject to the provisions of such Executive Order or the OFAC Regulations
        nor
        listed as a “blocked person” for purposes of the OFAC Regulations;
        and

       

      (s)  Credit
        Reporting.
        The
        Seller shall cause the Originator, as servicer, to fully furnish, in accordance
        with the Fair Credit Reporting Act and its implementing regulations, accurate
        and complete information (e.g., favorable and unfavorable) on its borrower
        credit files to Equifax, Experian and Trans Union Credit Information Company
        (three of the credit repositories), on a monthly basis. Additionally, the
        Seller
        shall cause the Originator, as servicer, to transmit full-file credit reporting
        data for each Mortgage Loan pursuant to Fannie Mae Guide Announcement 95-19
        and
        that for each Mortgage Loan, the Seller shall cause the Originator, as servicer,
        to report one of the following statuses each month as follows: new origination,
        current, delinquent (30-, 60-, 90-days, etc.), foreclosed, or
        charged-off.

       

      Subsection
        9.02  Representations
        and Warranties Regarding Individual Mortgage Loans.

       

      The
        Seller hereby represents and warrants to the Purchaser that, as to each Mortgage
        Loan, as of the related Closing Date for such Mortgage Loan:

       

      (a)  Mortgage
        Loans as Described.
        The
        information set forth in the related Mortgage Loan Schedule is complete,
        true
        and correct;

       

      (b)  Payments
        Current.
        All
        payments required to be made up to the related Closing Date for the Mortgage
        Loan under the terms of the Mortgage Note, other than payments not yet 30
        days
        delinquent, have been made and credited. No payment required under the Mortgage
        Loan is 30 days or more delinquent nor, except as otherwise disclosed to
        the
        Purchaser and set forth on an exhibit to the related Assignment and Conveyance
        Agreement, has any payment under the Mortgage Loan been 30 days or more
        delinquent at any time since the origination of the Mortgage Loan. The first
        Monthly Payment shall be made with respect to the Mortgage Loan on its related
        Due Date or within the grace period, all in accordance with the terms of
        the
        related Mortgage Note;

       

      (c)  No
        Outstanding Charges.
        There
        are no defaults in complying with the terms of the Mortgage, and all taxes,
        governmental assessments, insurance premiums, water, sewer and municipal
        charges, leasehold payments or ground rents which previously became due and
        owing have been paid, or an escrow of funds has been established in an amount
        sufficient to pay for every such item which remains unpaid and which has
        been
        assessed but is not yet due and payable. The Seller has not advanced funds,
        or
        induced, solicited or knowingly received any advance of funds by a party
        other
        than the Mortgagor, directly or indirectly, for the payment of any amount
        required under the Mortgage Loan, except for interest accruing from the date
        of
        the Mortgage Note or date of disbursement of the Mortgage Loan proceeds,
        whichever is earlier, to the day which precedes by one month the related
        Due
        Date of the first installment of principal and interest;

       

      (d)  Original
        Terms Unmodified.
        The
        terms of the Mortgage Note and Mortgage have not been impaired, waived, altered
        or modified in any respect, from the date of origination except by a written
        instrument which has been recorded, if necessary to protect the interests
        of the
        Purchaser, and which has been delivered to the Custodian or to such other
        Person
        as the Purchaser shall designate in writing, and the terms of which are
        reflected in the related Mortgage Loan Schedule. The substance of any such
        waiver, alteration or modification has been approved by the title insurer,
        if
        any, to the extent required by the policy, and its terms are reflected on
        the
        related Mortgage Loan Schedule, if applicable. No Mortgagor has been released,
        in whole or in part, except in connection with an assumption agreement, approved
        by the issuer of the title insurer, to the extent required by the policy,
        and
        which assumption agreement is part of the Mortgage Loan File delivered to
        the
        Custodian or to such other Person as the Purchaser shall designate in writing
        and the terms of which are reflected in the related Mortgage Loan
        Schedule;

       

      (e)  No
        Defenses.
        The
        Mortgage Loan is not subject to any right of rescission, set-off, counterclaim
        or defense, including without limitation the defense of usury, nor will the
        operation of any of the terms of the Mortgage Note or the Mortgage, or the
        exercise of any right thereunder, render either the Mortgage Note or the
        Mortgage unenforceable, in whole or in part and no such right of rescission,
        set-off, counterclaim or defense has been asserted with respect thereto,
        and no
        Mortgagor was a debtor in any state or Federal bankruptcy or insolvency
        proceeding at the time the Mortgage Loan was originated;

       

      (f)  Hazard
        Insurance.
        Pursuant to the terms of the Mortgage, all buildings or other improvements
        upon
        the Mortgaged Property are insured by a generally acceptable insurer against
        loss by fire, hazards of extended coverage and such other hazards as are
        customarily insured against in the jurisdiction where the related Mortgaged
        Property is located and acceptable to the Rating Agencies, as well as all
        additional requirements set forth in Section 2.10 of the Servicing Agreement.
        If
        required by the National Flood Insurance Act of 1968, as amended, each Mortgage
        Loan is covered by a flood insurance policy meeting the requirements of the
        current guidelines of the Federal Insurance Administration as in effect,
        as well
        as all additional requirements set forth in Section 2.10 of the Servicing
        Agreement. All individual insurance policies contain a standard mortgagee
        clause
        naming the Seller and its successors and assigns as mortgagee, and all premiums
        thereon have been paid. The Mortgage obligates the Mortgagor thereunder to
        maintain the hazard insurance policy at the Mortgagor’s cost and expense, and on
        the Mortgagor’s failure to do so, authorizes the holder of the Mortgage to
        obtain and maintain such insurance at such Mortgagor’s cost and expense, and to
        seek reimbursement therefor from the Mortgagor. Where required by state law
        or
        regulation, the Mortgagor has been given an opportunity to choose the carrier
        of
        the required hazard insurance, provided the policy is not a “master”
or
        “blanket”
hazard
        insurance policy covering a condominium, or any hazard insurance policy covering
        the common facilities of a planned unit development. The hazard insurance
        policy
        is the valid and binding obligation of the insurer, is in full force and
        effect,
        and will be in full force and effect and inure to the benefit of the Purchaser
        upon the consummation of the transactions contemplated by this Agreement.
        The
        Seller has not engaged in, and has no knowledge of the Mortgagor’s having
        engaged in, any act or omission which would impair the coverage of any such
        policy, the benefits of the endorsement provided for herein, or the validity
        and
        binding effect of either including, without limitation, no unlawful fee,
        commission, kickback or other unlawful compensation or value of any kind
        has
        been or will be received, retained or realized by any attorney, firm or other
        person or entity, and no such unlawful items have been received, retained
        or
        realized by the Seller;

       

      (g)  Compliance
        with Applicable Laws.
        Any and
        all requirements of any federal, state or local law including, without
        limitation, usury, truth-in-lending, real estate settlement procedures, consumer
        credit protection, equal credit opportunity, disclosure and all predatory,
        abusive and fair lending laws applicable to the Mortgage Loan, including,
        without limitation, any provisions relating to the Illinois Interest Act
        and
        prepayment penalties, have been complied with, the consummation of the
        transactions contemplated hereby will not involve the violation of any such
        laws
        or regulations, and the Seller shall maintain in its possession, available
        for
        the Purchaser’s inspection, and shall deliver to the Purchaser upon demand,
        evidence of compliance with all such requirements. This
        representation and warranty is a Deemed Material and Adverse
        Representation;

       

      (h)  No
        Satisfaction of Mortgage.
        The
        Mortgage has not been satisfied, canceled, subordinated or rescinded, in
        whole
        or in part, and the Mortgaged Property has not been released from the lien
        of
        the Mortgage, in whole or in part, nor has any instrument been executed that
        would effect any such release, cancellation, subordination or rescission.
        The
        Seller has not waived the performance by the Mortgagor of any action, if
        the
        Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
        in default, nor has the Seller waived any default resulting from any action
        or
        inaction by the Mortgagor;

       

      (i)  Location
        and Type of Mortgaged Property.
        The
        Mortgaged Property is located in the state identified in the Mortgage Loan
        Schedule and consists of real property with a detached single family residence
        erected thereon, or a two- to four-family dwelling, or an individual condominium
        unit in a low-rise condominium project, or an individual unit in a planned
        unit
        development or a de minimis planned unit development which is in each case
        four
        stories or less, provided, however, that any mobile home (double wide only)
        shall conform with the applicable Fannie Mae and Freddie Mac requirements
        regarding such dwellings and that no Mortgage Loan is secured by a single
        parcel
        of real property with a cooperative housing corporation, a log home, a
        Manufactured Home or, except as described in Exhibit B
        to the
        related Assignment and Conveyance Agreement, a mobile home erected thereon
        or by
        a mixed-use property, a property in excess of 10 acres, or other unique property
        types. As of the date of origination, no portion of the Mortgaged Property
        was
        used for commercial purposes, and since the date of origination, no portion
        of
        the Mortgaged Property has been used for commercial purposes; provided, that
        Mortgaged Properties which contain a home office shall not be considered
        as
        being used for commercial purposes as long as the Mortgaged Property has
        not
        been altered for commercial purposes and is not storing any chemicals or
        raw
        materials other than those commonly used for homeowner repair, maintenance
        and/or household purposes. This representation and warranty is a Deemed Material
        and Adverse Representation; 

       

      (j)  Valid
        First or Second Lien.
        The
        Mortgage is a valid, subsisting, enforceable and perfected, first lien (with
        respect to a First Lien Loan) or a second lien (with respect to a Second
        Lien
        Loan) on the Mortgaged Property, including all buildings and improvements
        on the
        Mortgaged Property and all installations and mechanical, electrical, plumbing,
        heating and air conditioning systems located in or annexed to such buildings,
        and all additions, alterations and replacements made at any time with respect
        to
        the foregoing. The lien of the Mortgage is subject only to:

       

      (1)  with
        respect to a Second Lien Loan only, the lien of the first mortgage on the
        Mortgaged Property; 

       

      (2)  the
        lien
        of current real property taxes and assessments not yet due and
        payable;

       

      (3)  covenants,
        conditions and restrictions, rights of way, easements and other matters of
        the
        public record as of the date of recording acceptable to prudent mortgage
        lending
        institutions generally and specifically referred to in the lender’s title
        insurance policy delivered to the originator of the Mortgage Loan and
        (A) specifically referred to or otherwise considered in the appraisal made
        for the originator of the Mortgage Loan or (B) which do not adversely
        affect the Appraised Value of the Mortgaged Property set forth in such
        appraisal; and

       

      (4)  other
        matters to which like properties are commonly subject which do not materially
        interfere with the benefits of the security intended to be provided by the
        Mortgage or the use, enjoyment, value or marketability of the related Mortgaged
        Property.

       

      Any
        security agreement, chattel mortgage or equivalent document related to and
        delivered in connection with the Mortgage Loan establishes and creates a
        valid,
        subsisting, enforceable and perfected first lien (with respect to a First
        Lien
        Loan) or second lien (with respect to a Second Lien Loan) and first priority
        (with respect to a First Lien Loan) or second priority (with respect to a
        Second
        Lien Loan) security interest on the property described therein and the Seller
        has full right to sell and assign the same to the Purchaser.;

       

      (k)  Validity
        of Mortgage Documents.
        The
        Mortgage Note and the Mortgage and any other agreement executed and delivered
        by
        a Mortgagor in connection with a Mortgage Loan are genuine, and each is the
        legal, valid and binding obligation of the maker thereof enforceable in
        accordance with its terms (including, without limitation, any provisions
        therein
        relating to prepayment penalties). All parties to the Mortgage Note, the
        Mortgage and any other such related agreement had legal capacity to enter
        into
        the Mortgage Loan and to execute and deliver the Mortgage Note, the Mortgage
        and
        any such agreement, and the Mortgage Note, the Mortgage and any other such
        related agreement have been duly and properly executed by other such related
        parties. No fraud, error, omission, misrepresentation, negligence or similar
        occurrence with respect to a Mortgage Loan has taken place on the part of
        any
        Person, including without limitation, the Mortgagor, any appraiser, any builder
        or developer, or any other party involved in the origination of the Mortgage
        Loan. The Seller has reviewed all of the documents constituting the Servicing
        File and has made such inquiries as it deems necessary to make and confirm
        the
        accuracy of the representations set forth herein;

       

      (l)  Full
        Disbursement of Proceeds.
        The
        Mortgage Loan has been closed and the proceeds of the Mortgage Loan have
        been
        fully disbursed and there is no requirement for future advances thereunder,
        and
        any and all requirements as to completion of any on-site or off-site improvement
        and as to disbursements of any escrow funds therefor have been complied with.
        All costs, fees and expenses incurred in making or closing the Mortgage Loan
        and
        the recording of the Mortgage were paid, and the Mortgagor is not entitled
        to
        any refund of any amounts paid or due under the Mortgage Note or
        Mortgage;

       

      (m)  Ownership.
        The
        Seller is the sole owner of record and holder of the Mortgage Loan and the
        indebtedness evidenced by each Mortgage Note and upon the sale of the Mortgage
        Loans to the Purchaser, the Seller will retain the Mortgage Files or any
        part
        thereof with respect thereto not delivered to the Custodian, the Purchaser
        or
        the Purchaser’s designee, in trust only for the purpose of servicing and
        supervising the servicing of each Mortgage Loan. The Mortgage Loan is not
        assigned or pledged, and the Seller has good, indefeasible and marketable
        title
        thereto, and has full right to transfer and sell the Mortgage Loan to the
        Purchaser free and clear of any encumbrance, equity, participation interest,
        lien, pledge, charge, claim or security interest, and has full right and
        authority subject to no interest or participation of, or agreement with,
        any
        other party, to sell and assign each Mortgage Loan pursuant to this Agreement
        and following the sale of each Mortgage Loan, the Purchaser will own such
        Mortgage Loan free and clear of any encumbrance, equity, participation interest,
        lien, pledge, charge, claim or security interest. The Seller intends to
        relinquish all rights to possess, control and monitor the Mortgage Loan.
        After
        the related Closing Date, the Seller will have no right to modify or alter
        the
        terms of the sale of the Mortgage Loan and the Seller will have no obligation
        or
        right to repurchase the Mortgage Loan or substitute another Mortgage Loan,
        except as provided in this Agreement;

       

      (n)  Doing
        Business.
        All
        parties which have had any interest in the Mortgage Loan, whether as mortgagee,
        assignee, pledgee or otherwise, are (or, during the period in which they
        held
        and disposed of such interest, were) (1) in compliance with any and all
        applicable licensing requirements of the laws of the state wherein the Mortgaged
        Property is located, and (2) either (i) organized under the laws of
        such state, or (ii) qualified to do business in such state, or (iii) a
        federal savings and loan association, a savings bank or a national bank having
        a
        principal office in such state, or (3) not doing business in such
        state;

       

      (o)  LTV.
        No
        Mortgage Loan has an LTV greater than 100%;

       

      (p)  Title
        Insurance.
        The
        Mortgage Loan is covered by an ALTA lender’s title insurance policy, or with
        respect to any Mortgage Loan for which the related Mortgaged Property is
        located
        in California a CLTA lender’s title insurance policy, or other generally
        acceptable form of policy or insurance acceptable to Fannie Mae or Freddie
        Mac
        and each such title insurance policy is issued by a title insurer acceptable
        to
        Fannie Mae or Freddie Mac and qualified to do business in the jurisdiction
        where
        the Mortgaged Property is located, insuring the Seller, its successors and
        assigns, as to the first (with respect to a First Lien Loan) or second (with
        respect to a Second Lien Loan) priority lien of the Mortgage in the original
        principal amount of the Mortgage Loan (or to the extent a Mortgage Note provides
        for negative amortization, the maximum amount of negative amortization in
        accordance with the Mortgage), subject only to the exceptions contained in
        clauses (1), (2) and (3) of Paragraph (j) of this Subsection 9.02,
        and in
        the case of Adjustable Rate Mortgage Loans, against any loss by reason of
        the
        invalidity or unenforceability of the lien resulting from the provisions
        of the
        Mortgage providing for adjustment to the Mortgage Interest Rate and Monthly
        Payment. Where required by state law or regulation, the Mortgagor has been
        given
        the opportunity to choose the carrier of the required mortgage title insurance.
        Additionally, such lender’s title insurance policy affirmatively insures ingress
        and egress, and against encroachments by or upon the Mortgaged Property or
        any
        interest therein. The Seller, its successor and assigns, are the sole insureds
        of such lender’s title insurance policy, and such lender’s title insurance
        policy is valid and remains in full force and effect and will be in force
        and
        effect upon the consummation of the transactions contemplated by this Agreement.
        No claims have been made under such lender’s title insurance policy, and no
        prior holder of the related Mortgage, including the Seller, has done, by
        act or
        omission, anything which would impair the coverage of such lender’s title
        insurance policy, including without limitation, no unlawful fee, commission,
        kickback or other unlawful compensation or value of any kind has been or
        will be
        received, retained or realized by any attorney, firm or other person or entity,
        and no such unlawful items have been received, retained or realized by the
        Seller;

       

      (q)  No
        Defaults.
        Other
        than payments due but not yet 30 days or more delinquent, there is no default,
        breach, violation or event which would permit acceleration existing under
        the
        Mortgage or the Mortgage Note and no event which, with the passage of time
        or
        with notice and the expiration of any grace or cure period, would constitute
        a
        default, breach, violation or event which would permit acceleration, and
        neither
        the Seller nor any of its affiliates nor any of their respective predecessors,
        have waived any default, breach, violation or event which would permit
        acceleration;

       

      (r)  No
        Mechanics’ Liens.
        There
        are no mechanics’ or similar liens or claims which have been filed for work,
        labor or material (and no rights are outstanding that under the law could
        give
        rise to such liens) affecting the related Mortgaged Property which are or
        may be
        liens prior to, or equal or coordinate with, the lien of the related
        Mortgage;

       

      (s)  Location
        of Improvements; No Encroachments.
        All
        improvements which were considered in determining the Appraised Value of
        the
        Mortgaged Property lay wholly within the boundaries and building restriction
        lines of the Mortgaged Property, and no improvements on adjoining properties
        encroach upon the Mortgaged Property. No improvement located on or being
        part of
        the Mortgaged Property is in violation of any applicable zoning law or
        regulation;

       

      (t)  Origination;
        Payment Terms.
        Either
        (a) the Mortgage Loan was originated by a mortgagee approved by the Secretary
        of
        Housing and Urban Development pursuant to Sections 203 and 211 of the
        National Housing Act, a savings and loan association, a savings bank, a
        commercial bank, credit union, insurance company or other similar institution
        which is supervised and examined by a federal or state authority, or (b)
        the
        following requirements have been met with respect to the Mortgage Loan: the
        Seller meets the requirements set forth in clause (a), and (i) such Mortgage
        Loan was underwritten in accordance with standards established by the Seller,
        using application forms and related credit documents approved by the Seller,
        (ii) the Seller approved each application and the related credit documents
        before a commitment by the correspondent was issued, and no such commitment
        was
        issued until the Seller agreed to fund such Mortgage Loan, (iii) the closing
        documents for such Mortgage Loan were prepared on forms approved by the Seller,
        and (iv) such Mortgage Loan was actually funded by the Seller and was purchased
        by the Seller at closing or soon thereafter. The documents, instruments and
        agreements submitted for loan underwriting were not falsified and contain
        no
        untrue statement of material fact or omit to state a material fact required
        to
        be stated therein or necessary to make the information and statements therein
        not misleading. Principal payments on the Mortgage Loan commenced no more
        than
        sixty days after funds were disbursed in connection with the Mortgage Loan.
        The
        Mortgage Interest Rate as well as, with respect to Adjustable Rate Mortgage
        loans, the Lifetime Rate Cap and the Periodic Cap, are as set forth on the
        related Mortgage Loan Schedule. The Mortgage Note is payable in equal monthly
        installments of principal and interest, which installments of interest, with
        respect to Adjustable Rate Mortgage Loans, are subject to change due to the
        adjustments to the Mortgage Interest Rate on each Interest Rate Adjustment
        Date,
        with interest calculated and payable in arrears, sufficient to amortize the
        Mortgage Loan fully by the stated maturity date, over an original term of
        not
        more than thirty years from commencement of amortization. Unless otherwise
        specified on the related Mortgage Loan Schedule, the Mortgage Loan is payable
        on
        the first day of each month. There are no Convertible Mortgage Loans which
        contain a provision allowing the Mortgagor to convert the Mortgage Note from
        an
        adjustable interest rate Mortgage Note to a fixed interest rate Mortgage
        Note;

       

      (u)  Customary
        Provisions.
        The
        Mortgage contains customary and enforceable provisions such as to render
        the
        rights and remedies of the holder thereof adequate for the realization against
        the Mortgaged Property of the benefits of the security provided thereby,
        including, (i) in the case of a Mortgage designated as a deed of trust, by
        trustee’s sale, and (ii) otherwise by judicial foreclosure. Upon default by
        a Mortgagor on a Mortgage Loan and foreclosure on, or trustee’s sale of, the
        Mortgaged Property pursuant to the proper procedures, the holder of the Mortgage
        Loan will be able to deliver good and merchantable title to the Mortgaged
        Property. There is no homestead or other exemption available to a Mortgagor
        which would interfere with the right to sell the Mortgaged Property at a
        trustee’s sale or the right to foreclose the Mortgage, subject to applicable
        federal and state laws and judicial precedent with respect to bankruptcy
        and
        right of redemption or similar law;

       

      (v)  Conformance
        with Agency and Underwriting Guidelines.
        The
        Mortgage Loan was underwritten in accordance with the Underwriting Guidelines.
        The Mortgage Note and Mortgage are on forms acceptable to Freddie Mac or
        Fannie
        Mae and neither the Seller nor the Originator has made any representations
        to a
        Mortgagor that are inconsistent with the mortgage instruments used;

       

      (w)  Occupancy
        of the Mortgaged Property.
        As of
        the related Closing Date the Mortgaged Property is lawfully occupied under
        applicable law. All inspections, licenses and certificates required to be
        made
        or issued with respect to all occupied portions of the Mortgaged Property
        and,
        with respect to the use and occupancy of the same, including but not limited
        to
        certificates of occupancy and fire underwriting certificates, have been made
        or
        obtained from the appropriate authorities;

       

      (x)  No
        Additional Collateral.
        The
        Mortgage Note is not and has not been secured by any collateral except the
        lien
        of the corresponding Mortgage and the security interest of any applicable
        security agreement or chattel mortgage referred to in Paragraph (j)
        above;

       

      (y)  Deeds
        of Trust.
        In the
        event the Mortgage constitutes a deed of trust, a trustee, authorized and
        duly
        qualified under applicable law to serve as such, has been properly designated
        and currently so serves and is named in the Mortgage, and no fees or expenses
        are or will become payable by the Purchaser to the trustee under the deed
        of
        trust, except in connection with a trustee’s sale after default by the
        Mortgagor;

       

      (z)  Acceptable
        Investment.
        There
        are no circumstances or conditions with respect to the Mortgage, the Mortgaged
        Property, the Mortgagor, the Mortgage File or the Mortgagor’s credit standing
        that can reasonably be expected to cause private institutional investors
        who
        invest in mortgage loans similar to the Mortgage Loan to regard the Mortgage
        Loan as an unacceptable investment, cause the Mortgage Loan to become
        delinquent, or adversely affect the value or marketability of the Mortgage
        Loan,
        or cause the Mortgage Loans to prepay during any period materially faster
        or
        slower than the mortgage loans originated by the Seller generally;

       

      (aa)  Delivery
        of Mortgage Documents.
        The
        Mortgage Note, the Mortgage, the Assignment of Mortgage and any other documents
        required to be delivered under the Custodial Agreement for each Mortgage
        Loan
        have been delivered to the Custodian. The Seller is in possession of a complete,
        true and accurate Mortgage File in compliance with Exhibit A
        hereto,
        except for such documents the originals of which have been delivered to the
        Custodian;

       

      (bb)  Condominiums/Planned
        Unit Developments.
        If the
        Mortgaged Property is a condominium unit or a planned unit development (other
        than a de minimis planned unit development) such condominium or planned unit
        development project such Mortgage Loan was originated in accordance with,
        and
        the Mortgaged Property meets the guidelines set forth in the Originator’s
        Underwriting Guidelines;

       

      (cc)  Transfer
        of Mortgage Loans.
        The
        Assignment of Mortgage with respect to each Mortgage Loan is in recordable
        form
        and is acceptable for recording under the laws of the jurisdiction in which
        the
        Mortgaged Property is located. The transfer, assignment and conveyance of
        the
        Mortgage Notes and the Mortgages by the Seller are not subject to the bulk
        transfer or similar statutory provisions in effect in any applicable
        jurisdiction;

       

      (dd)  Due-On-Sale.
        With
        respect to each Fixed Rate Mortgage Loan, the Mortgage contains an enforceable
        provision for the acceleration of the payment of the unpaid principal balance
        of
        the Mortgage Loan in the event that the Mortgaged Property is sold or
        transferred without the prior written consent of the mortgagee thereunder,
        and
        such provision is enforceable;

       

      (ee)  Assumability.
        With
        respect to each Adjustable Rate Mortgage Loan, the Mortgage Loan Documents
        provide that after the related first Interest Rate Adjustment Date, a related
        Mortgage Loan may only be assumed if the party assuming such Mortgage Loan
        meets
        certain credit requirements stated in the Mortgage Loan Documents;

       

      (ff)  No
        Buydown Provisions; No Graduated Payments or Contingent
        Interests.
        The
        Mortgage Loan does not contain provisions pursuant to which Monthly Payments
        are
        paid or partially paid with funds deposited in any separate account established
        by the Seller, the Mortgagor, or anyone on behalf of the Mortgagor, or paid
        by
        any source other than the Mortgagor nor does it contain any other similar
        provisions which may constitute a “buydown” provision. The Mortgage Loan is not
        a graduated payment mortgage loan and the Mortgage Loan does not have a shared
        appreciation or other contingent interest feature;

       

      (gg)  Consolidation
        of Future Advances.
        Any
        future advances made to the Mortgagor prior to the Cut-off Date have been
        consolidated with the outstanding principal amount secured by the Mortgage,
        and
        the secured principal amount, as consolidated, bears a single interest rate
        and
        single repayment term. The lien of the Mortgage securing the consolidated
        principal amount is expressly insured as having first (with respect to a
        First
        Lien Loan) or a second (with respect to a Second Lien Loan) lien priority
        by a
        title insurance policy, an endorsement to the policy insuring the mortgagee’s
        consolidated interest or by other title evidence acceptable to Fannie Mae
        and
        Freddie Mac. The consolidated principal amount does not exceed the original
        principal amount of the Mortgage Loan;

       

      (hh)  Mortgaged
        Property Undamaged; No Condemnation Proceedings.
        There
        is no proceeding pending or threatened for the total or partial condemnation
        of
        the Mortgaged Property. The Mortgaged Property is undamaged by waste, fire,
        earthquake or earth movement, windstorm, flood, tornado or other casualty
        so as
        to affect adversely the value of the Mortgaged Property as security for the
        Mortgage Loan or the use for which the premises were intended and each Mortgaged
        Property is in good repair. There have not been any condemnation proceedings
        with respect to the Mortgaged Property and the Seller has no knowledge of
        any
        such proceedings in the future;

       

      (ii)  Collection
        Practices; Escrow Deposits; Interest Rate Adjustments.
        The
        origination, servicing and collection practices used by the Seller and the
        Originator with respect to the Mortgage Loan have been in all respects in
        compliance with Accepted Servicing Practices, applicable laws and regulations,
        and have been in all respects legal and proper. With respect to escrow deposits
        and Escrow Payments, all such payments are in the possession of, or under
        the
        control of, the Seller or the Originator and there exist no deficiencies
        in
        connection therewith for which customary arrangements for repayment thereof
        have
        not been made. All Escrow Payments have been collected in full compliance
        with
        state and federal law and the provisions of the related Mortgage Note and
        Mortgage. An escrow of funds is not prohibited by applicable law and has
        been
        established in an amount sufficient to pay for every item that remains unpaid
        and has been assessed but is not yet due and payable. No escrow deposits
        or
        Escrow Payments or other charges or payments due the Seller have been
        capitalized under the Mortgage or the Mortgage Note. All Mortgage Interest
        Rate
        adjustments have been made in strict compliance with state and federal law
        and
        the terms of the related Mortgage and Mortgage Note on the related Interest
        Rate
        Adjustment Date. If, pursuant to the terms of the Mortgage Note, another
        index
        was selected for determining the Mortgage Interest Rate, the same index was
        used
        with respect to each Mortgage Note which required a new index to be selected,
        and such selection did not conflict with the terms of the related Mortgage
        Note.
        The Seller or the Originator executed and delivered any and all notices required
        under applicable law and the terms of the related Mortgage Note and Mortgage
        regarding the Mortgage Interest Rate and the Monthly Payment adjustments.
        Any
        interest required to be paid pursuant to state, federal and local law has
        been
        properly paid and credited;

       

      (jj)  Conversion
        to Fixed Interest Rate.
        With
        respect to Adjustable Rate Mortgage Loans, the Mortgage Loan is not a
        Convertible Mortgage Loan;

       

      (kk)  Other
        Insurance Policies.
        No
        action, inaction or event has occurred and no state of facts exists or has
        existed that has resulted or will result in the exclusion from, denial of,
        or
        defense to coverage under any applicable, special hazard insurance policy,
        or
        bankruptcy bond, irrespective of the cause of such failure of coverage. In
        connection with the placement of any such insurance, no commission, fee,
        or
        other compensation has been or will be received by the Seller or by any officer,
        director, or employee of the Seller or any designee of the Seller or any
        corporation in which the Seller or any officer, director, or employee had
        a
        financial interest at the time of placement of such insurance;

       

      (ll)  No
        Violation of Environmental Laws.
        There
        is no pending action or proceeding directly involving the Mortgaged Property
        in
        which compliance with any environmental law, rule or regulation is an issue;
        there is no violation of any environmental law, rule or regulation with respect
        to the Mortgage Property; and nothing further remains to be done to satisfy
        in
        full all requirements of each such law, rule or regulation constituting a
        prerequisite to use and enjoyment of said property;

       

      (mm)  Servicemembers
        Civil Relief Act.
        The
        Mortgagor has not notified the Seller, and the Seller has no knowledge of
        any
        relief requested or allowed to the Mortgagor under the Servicemembers Relief
        Act
        or any similar state statute;

       

      (nn)  Appraisal.
        The
        Mortgage File contains an appraisal of the related Mortgaged Property signed
        prior to the approval of the Mortgage Loan application by a Qualified Appraiser,
        duly appointed by the Seller or the Originator, who had no interest, direct
        or
        indirect in the Mortgaged Property or in any loan made on the security thereof,
        and whose compensation is not affected by the approval or disapproval of
        the
        Mortgage Loan, and the appraisal and appraiser both satisfy the requirements
        of
        Fannie Mae or Freddie Mac and Title XI of the Financial Institutions Reform,
        Recovery, and Enforcement Act of 1989 and the regulations promulgated
        thereunder, all as in effect on the date the Mortgage Loan was
        originated;

       

      (oo)  Disclosure
        Materials.
        The
        Mortgagor has executed a statement to the effect that the Mortgagor has received
        all disclosure materials required by, and the Originator has complied with,
        all
        applicable law with respect to the making of the Mortgage Loans. The Seller
        shall cause the Originator to maintain such statement in the Mortgage
        File;

       

      (pp)  Construction
        or Rehabilitation of Mortgaged Property.
        No
        Mortgage Loan was made in connection with the construction or rehabilitation
        of
        a Mortgaged Property or facilitating the trade-in or exchange of a Mortgaged
        Property;

       

      (qq)  Value
        of Mortgaged Property.
        The
        Seller has no knowledge of any circumstances existing that could reasonably
        be
        expected to adversely affect the value or the marketability of any Mortgaged
        Property or Mortgage Loan or to cause the Mortgage Loans to prepay during
        any
        period materially faster or slower than similar mortgage loans held by the
        Seller generally secured by properties in the same geographic area as the
        related Mortgaged Property;

       

      (rr)  No
        Defense to Insurance Coverage.
        No
        action has been taken or failed to be taken, no event has occurred and no
        state
        of facts exists or has existed on or prior to the related Closing Date (whether
        or not known to the Seller on or prior to such date) which has resulted or
        will
        result in an exclusion from, denial of, or defense to coverage under any
        primary
        mortgage insurance (including, without limitation, any exclusions, denials
        or
        defenses which would limit or reduce the availability of the timely payment
        of
        the full amount of the loss otherwise due thereunder to the insured) whether
        arising out of actions, representations, errors, omissions, negligence, or
        fraud
        of the Seller, the related Mortgagor or any party involved in the application
        for such coverage, including the appraisal, plans and specifications and
        other
        exhibits or documents submitted therewith to the insurer under such insurance
        policy, or for any other reason under such coverage, but not including the
        failure of such insurer to pay by reason of such insurer’s breach of such
        insurance policy or such insurer’s financial inability to pay;

       

      (ss)  Escrow
        Analysis.
        With
        respect to each Mortgage, the Seller or the Originator has within the last
        twelve months (unless such Mortgage was originated within such twelve month
        period) analyzed the required Escrow Payments for each Mortgage and adjusted
        the
        amount of such payments so that, assuming all required payments are timely
        made,
        any deficiency will be eliminated on or before the first anniversary of such
        analysis, or any overage will be refunded to the Mortgagor, in accordance
        with
        RESPA and any other applicable law;

       

      (tt)  Prior
        Servicing.
        Each
        Mortgage Loan has been serviced in all material respects in strict compliance
        with Accepted Servicing Practices;

       

      (uu)  No
        Default Under First Lien.
        With
        respect to each Second Lien Loan, the related First Lien Loan related thereto
        is
        in full force and effect, and there is no default, breach, violation or event
        which would permit acceleration existing under such first Mortgage or Mortgage
        Note, and no event which, with the passage of time or with notice and the
        expiration of any grace or cure period, would constitute a default, breach,
        violation or event which would permit acceleration thereunder. This
        representation and warranty is a Deemed Material and Adverse
        Representation;

       

      (vv)  [Reserved];

       

      (ww)  No
        Failure to Cure Default.
        The
        Seller has not received a written notice of default of any senior mortgage
        loan
        related to the Mortgaged Property which has not been cured;

       

      (xx)  Credit
        Information.
        As to
        each consumer report (as defined in the Fair Credit Reporting Act, Public
        Law
        91-508) or other credit information furnished by the Seller to the Purchaser,
        that Seller has full right and authority and is not precluded by law or contract
        from furnishing such information to the Purchaser and the Purchaser is not
        precluded from furnishing the same to any subsequent or prospective purchaser
        of
        such Mortgage. The Seller shall hold the Purchaser harmless from any and
        all
        damages, losses, costs and expenses (including attorney’s fees) arising from
        disclosure of credit information in connection with the Purchaser’s secondary
        marketing operations and the purchase and sale of mortgages or Servicing
        Rights
        thereto;

       

      (yy)  Leaseholds.
        If the
        Mortgage Loan is secured by a long-term residential lease, (1) the lessor
        under the lease holds a fee simple interest in the land; (2) the terms of
        such lease expressly permit the mortgaging of the leasehold estate, the
        assignment of the lease without the lessor’s consent and the acquisition by the
        holder of the Mortgage of the rights of the lessee upon foreclosure or
        assignment in lieu of foreclosure or provide the holder of the Mortgage with
        substantially similar protections; (3) the terms of such lease do not
        (a) allow the termination thereof upon the lessee’s default without the
        holder of the Mortgage being entitled to receive written notice of, and
        opportunity to cure, such default, (b) allow the termination of the lease
        in the event of damage or destruction as long as the Mortgage is in existence,
        (c) prohibit the holder of the Mortgage from being insured (or receiving
        proceeds of insurance) under the hazard insurance policy or policies relating
        to
        the Mortgaged Property or (d) permit any increase in rent other than
        pre-established increases set forth in the lease; (4) the original term of
        such lease is not less than 15 years; (5) the term of such lease does not
        terminate earlier than five years after the maturity date of the Mortgage
        Note;
        and (6) the Mortgaged Property is located in a jurisdiction in which the
        use of leasehold estates in transferring ownership in residential properties
        is
        a widely accepted practice;

       

      (zz)  Prepayment
        Penalty.
        Each
        Mortgage Loan that is subject to a prepayment penalty as provided in the
        related
        Mortgage Note is identified on the related Mortgage Loan Schedule. With respect
        to each Mortgage Loan that has a prepayment penalty feature, each such
        prepayment penalty is enforceable and will be enforced by the Seller for
        the
        benefit of the Purchaser, and each prepayment penalty is permitted pursuant
        to
        federal, state and local law. Each such prepayment penalty is in an amount
        not
        more than the maximum amount permitted under applicable law and no such
        prepayment penalty may be imposed for a term in excess of five (5) years
        with
        respect to Mortgage Loans originated prior to October, 1, 2002. With respect
        to
        Mortgage Loans originated on or after October 1, 2002, the duration of the
        prepayment penalty period shall not exceed three (3) years from the date
        of the
        Mortgage Note unless the Mortgage Loan was modified to reduce the prepayment
        penalty period to no more than three (3) years from the date of the related
        Mortgage Note and the Mortgagor was notified in writing of such reduction
        in
        prepayment penalty period. This representation and warranty is a Deemed Material
        and Adverse Representation;

       

      (aaa)  Predatory
        Lending Regulations.
        No
        Mortgage Loan is a High Cost Loan or Covered Loan, as applicable, and no
        Mortgage Loan originated on or after October 1, 2002 through March 6, 2003
        is
        governed by the Georgia Fair Lending Act. No Mortgage Loan is covered by
        the
        Home Ownership and Equity Protection Act of 1994 and no Mortgage Loan is
        in
        violation of any comparable state or local law. This representation and warranty
        is a Deemed Material and Adverse Representation;

       

      (bbb)  [Reserved];

       

      (ccc)  Qualified
        Mortgage.
        The
        Mortgage Loan would be a “qualified mortgage,” within the meaning of Section
        860G(a)(3) of the Code, if transferred to a REMIC on its startup day in exchange
        for the regular or residual interests in the REMIC;

       

      (ddd)  No
        Prior Offer.
        The
        Mortgage Loan has not previously been offered for sale to another entity
        that
        constitutes a broker dealer registered with the Commission under Section
        15 of
        the Exchange Act;

       

      (eee)  Fair
        Credit Reporting Act.
        The
        Seller has, in its capacity as servicer for each Mortgage Loan, fully furnished,
        in accordance with the Fair Credit Reporting Act and its implementing
        regulations, accurate and complete information (e.g.,
        favorable and unfavorable) on its borrower credit files to Equifax, Experian
        and
        Trans Union Credit Information Company (three of the credit repositories),
        on a
        monthly basis. This representation and warranty is a Deemed Material and
        Adverse
        Representation; 

       

      (fff)  Fannie
        Mae Guides Anti-Predatory Lending Eligibility.
        Each
        Mortgage Loan is in compliance with the anti-predatory lending eligibility
        for
        purchase requirements of Fannie Mae Guides. This representation and warranty
        is
        a Deemed Material and Adverse Representation;

       

      (ggg)  Mortgagor
        Selection.
        The
        Mortgagor was not encouraged or required to select a Mortgage Loan product
        offered by the Originator which is a higher cost product designed for less
        creditworthy mortgagors, unless at the time of the Mortgage Loan’s origination,
        such Mortgagor did not qualify taking into such facts as, without limitation,
        the Mortgage Loan’s requirements and the Mortgagor’s credit history, income,
        assets and liabilities and debt-to-income ratios for a lower-cost credit
        product
        then offered by the Originator or any Affiliate of the Originator. If, at
        the
        time of loan application, the Mortgagor may have qualified for a lower-cost
        credit product then offered by any mortgage lending Affiliate of the Originator,
        the Originator referred the related Mortgagor’s application to such Affiliate
        for underwriting consideration. For a Mortgagor who seeks financing through
        a
        Mortgage Loan originator’s higher-priced subprime lending channel, the Mortgagor
        was directed towards or offered the Mortgage Loan originator’s standard mortgage
        line if the Mortgagor was able to qualify for one of the standard products.
        This
        representation and warranty is a Deemed Material and Adverse
        Representation;

       

      (hhh)  Underwriting
        Methodology.
        The
        methodology used in underwriting the extension of credit for each Mortgage
        Loan
        does not rely on the extent of the related Mortgagor’s equity in the collateral
        as the principal determining factor in approving such extension of credit.
        The
        methodology employed objective criteria that related such facts as, without
        limitation, the Mortgagor’s credit history, income, assets or liabilities, to
        the proposed mortgage payment and, based on such methodology, the Mortgage
        Loan’s originator made a reasonable determination that at the time of
        origination the Mortgagor had the ability to make timely payments on the
        Mortgage Loan. Such underwriting methodology confirmed that at the time of
        origination (application/approval) the related Mortgagor had a reasonable
        ability to make timely payments on the Mortgage Loan. This representation
        and
        warranty is a Deemed Material and Adverse Representation;

       

      (iii)  Mortgage
        Loans with Prepayment Premiums.
        With
        respect to any Mortgage Loan that contains a provision permitting imposition
        of
        a prepayment penalty upon a prepayment prior to maturity: (i) the Mortgage
        Loan
        provides some benefit to the Mortgagor, including but not limited to a rate
        or
        fee reduction, in exchange for accepting such prepayment penalty, (ii) the
        Mortgage Loan’s originator had a written policy of offering the Mortgagor, or
        requiring third-party brokers to offer the Mortgagor, the option of obtaining
        a
        mortgage loan that did not require payment of such a penalty, (iii) the
        prepayment penalty was adequately disclosed to the Mortgagor in the mortgage
        loan documents pursuant to applicable state, local and federal law, and (iv)
        notwithstanding any state, local or federal law to the contrary, the Originator,
        as servicer, shall not impose such prepayment penalty in any instance when
        the
        mortgage debt is accelerated or paid off in connection with the workout of
        a
        delinquent Mortgage Loan or as a result of the Mortgagor’s default in making the
        Mortgage Loan payments. This representation and warranty is a Deemed Material
        and Adverse Representation;

       

      (jjj)  Purchase
        of Insurance.
        No
        Mortgagor was required to purchase any single premium credit insurance policy
        (e.g., life, mortgage, disability, property, accident, unemployment or health
        insurance product) or debt cancellation agreement as a condition of obtaining
        the extension of credit. No Mortgagor obtained a prepaid single premium credit
        insurance policy (e.g., life, mortgage, disability, property, accident,
        unemployment, mortgage or health insurance) in connection with the origination
        of the Mortgage Loan. No proceeds from any Mortgage Loan were used to purchase
        single premium credit insurance policies as part of the origination of, or
        as a
        condition to closing, such Mortgage Loan. This representation and warranty
        is a
        Deemed Material and Adverse Representation;

       

      (kkk)  Points
        and Fees.
        No
        Mortgagor was charged “points and fees” (whether or not financed) in an amount
        greater than (i) $1,000, or (ii) 5% of the principal amount of such Mortgage
        Loan, whichever is greater. For purposes of this representation, such 5%
        limitation is calculated in accordance with Fannie Mae’s anti-predatory lending
        requirements as set forth in the Fannie Mae Guides and “points and fees” (x)
        include origination, underwriting, broker and finder fees and charges that
        the
        mortgagee imposed as a condition of making the Mortgage Loan, whether they
        are
        paid to the mortgagee or a third party, and (y) exclude bona fide discount
        points, fees paid for actual services rendered in connection with the
        origination of the Mortgage Loan (such as attorneys’ fees, notaries fees and
        fees paid for property appraisals, credit reports, surveys, title examinations
        and extracts, flood and tax certifications, and home inspections), the cost
        of
        mortgage insurance or credit-risk price adjustments, the costs of title,
        hazard,
        and flood insurance policies, state and local transfer taxes or fees, escrow
        deposits for the future payment of taxes and insurance premiums, and other
        miscellaneous fees and charges that, in total, do not exceed 0.25% of the
        principal amount of such Mortgage Loan. This representation and warranty
        is a
        Deemed Material and Adverse Representation;

       

      (lll)  Disclosure
        of Fees and Charges.
        All
        fees and charges (including finance charges), whether or not financed, assessed,
        collected or to be collected in connection with the origination and servicing
        of
        each Mortgage Loan, have been disclosed in writing to the Mortgagor in
        accordance with applicable state and federal law and regulation. This
        representation and warranty is a Deemed Material and Adverse Representation;
        

       

      (mmm)  No
        Arbitration.
        No
        Mortgage Loan originated on or after July 1, 2004 requires the related Mortgagor
        to submit to arbitration to resolve any dispute arising out of or relating
        in
        any way to the Mortgage Loan transaction. This representation and warranty
        is a
        Deemed Material and Adverse Representation;

       

      (nnn)  Request
        for Notice; No Consent Required.
        With
        respect to any Second Lien Loan, if applicable to the Seller, where required
        or
        customary in the jurisdiction in which the Mortgaged Property is located,
        the
        original lender has filed for record a request for notice of any action by
        the
        related senior lienholder, and the Seller has notified the senior lienholder
        in
        writing of the existence of the Second Lien Loan and requested notification
        of
        any action to be taken against the Mortgagor by the senior lienholder. Either
        (a) no consent for the Second Lien Loan is required by the holder of the
        related first lien or (b) such consent has been obtained and is contained
        in the Mortgage File. This representation and warranty is a Deemed Material
        and
        Adverse Representation;

       

      (ooo)  No
        Negative Amortization of Related First Lien Loan.
        With
        respect to each Second Lien Loan, the related First Lien Loan does not permit
        negative amortization. This representation and warranty is a Deemed Material
        and
        Adverse Representation; and

       

      (ppp)  Principal
        Residence.
        With
        respect to each Second Lien Loan, the related Mortgaged Property was the
        Mortgagor’s principal residence or second home at the time of the origination of
        such Second Lien Loan, as set forth on the related Mortgage Loan Schedule.
        This
        representation and warranty is a Deemed Material and Adverse
        Representation;

       

      Subsection
        9.03  Remedies
        for Breach of Representations and Warranties.

       

      It
        is
        understood and agreed that the representations and warranties set forth in
        Subsections 9.01
        and 9.02
        shall
        survive the sale of the Mortgage Loans to the Purchaser and shall inure to
        the
        benefit of the Purchaser, notwithstanding any restrictive or qualified
        endorsement on any Mortgage Note or Assignment of Mortgage or the examination
        or
        failure to examine any Mortgage File. Upon discovery by either the Seller
        or the
        Purchaser of a breach of any of the foregoing representations and warranties,
        the party discovering such breach shall give prompt written notice to the
        other.

       

      Within
        60
        days of the earlier of either discovery by or notice to the Seller of any
        such
        breach of a representation or warranty, which materially and adversely affects
        the value of the Mortgage Loans or the interest of the Purchaser therein
        (or
        which materially and adversely affects the value of the applicable Mortgage
        Loan
        or the interest of the Purchaser therein in the case of a representation
        and
        warranty relating to a particular Mortgage Loan), the Seller shall use its
        best
        efforts promptly to cure such breach in all material respects and, if such
        breach cannot be cured, the Seller shall, at the Purchaser’s option, repurchase
        such Mortgage Loan at the Repurchase Price. Notwithstanding the above sentence,
        (i) within sixty (60) days after the earlier of either discovery by, or notice
        to, the Seller of any breach of the representation and warranty set forth
        in
        clause (ccc) of Subsection
        9.02,
        the
        Seller shall repurchase such Mortgage Loan at the Repurchase Price and (ii)
        any
        breach of a Deemed Material and Adverse Representation shall automatically
        be
        deemed to materially and adversely affect the value of the Mortgage Loans
        and
        the interest of the Purchaser therein. In the event that a breach shall involve
        any representation or warranty set forth in Subsection 9.01,
        and
        such breach cannot be cured within 60 days of the earlier of either discovery
        by
        or notice to the Seller of such breach, all of the Mortgage Loans affected
        by
        such breach shall, at the Purchaser’s option, be repurchased by the Seller at
        the Repurchase Price. However, if the breach shall involve a representation
        or
        warranty set forth in Subsection 9.02
        (other
        than the representation and warranty set forth in clause (ccc) of such Section
        or any Deemed Material Breach Representation) and the Seller discovers or
        receives notice of any such breach within 120 days of the related Closing
        Date, the Seller shall, at the Purchaser’s option and provided that the Seller
        has a Qualified Substitute Mortgage Loan, rather than repurchase the Mortgage
        Loan as provided above, remove such Mortgage Loan (a “Deleted
        Mortgage Loan”)
        and
        substitute in its place a Qualified Substitute Mortgage Loan or Loans, provided
        that any such substitution shall be effected not later than 120 days after
        the related Closing Date. If the Seller has no Qualified Substitute Mortgage
        Loan, it shall repurchase the deficient Mortgage Loan at the Repurchase Price.
        Any repurchase of a Mortgage Loan or Loans pursuant to the foregoing provisions
        of this Subsection
        9.03
        shall be
        accomplished by either (a) if the Servicing Agreement has been entered into
        and is in effect, deposit in the Custodial Account of the amount of the
        Repurchase Price for distribution to the Purchaser on the next scheduled
        Remittance Date, after deducting therefrom any amount received in respect
        of
        such repurchased Mortgage Loan or Loans and being held in the Custodial Account
        for future distribution or (b) if the Servicing Agreement has not been
        entered into or is no longer in effect, by direct remittance of the Repurchase
        Price to the Purchaser or its designee in accordance with the Purchaser’s
        instructions.

       

      At
        the
        time of repurchase or substitution, the Purchaser and the Seller shall arrange
        for the reassignment of the Deleted Mortgage Loan to the Seller and the delivery
        to the Seller of any documents held by the Custodian relating to the Deleted
        Mortgage Loan. In the event of a repurchase or substitution, the Seller shall,
        simultaneously with such reassignment, give written notice to the Purchaser
        that
        such repurchase or substitution has taken place, amend the Mortgage Loan
        Schedule to reflect the withdrawal of the Deleted Mortgage Loan from this
        Agreement, and, in the case of substitution, identify a Qualified Substitute
        Mortgage Loan and amend the related Mortgage Loan Schedule to reflect the
        addition of such Qualified Substitute Mortgage Loan to this Agreement. In
        connection with any such substitution, the Seller shall be deemed to have
        made
        as to such Qualified Substitute Mortgage Loan the representations and warranties
        set forth in this Agreement except that all such representations and warranties
        set forth in this Agreement shall be deemed made as of the date of such
        substitution. The Seller shall effect such substitution by delivering to
        the
        Custodian or to such other party as the Purchaser may designate in writing
        for
        such Qualified Substitute Mortgage Loan the documents required by Subsection 6.03
        and the
        Custodial Agreement, with the Mortgage Note endorsed as required by Subsection 6.03
        and the
        Custodial Agreement. No substitution will be made in any calendar month after
        the Determination Date for such month. The Seller shall cause the Originator
        to
        remit directly to the Purchaser, or its designee in accordance with the
        Purchaser’s instructions the Monthly Payment less the Servicing Fee due, if any,
        on such Qualified Substitute Mortgage Loan or Loans in the month following
        the
        date of such substitution. Monthly Payments due with respect to Qualified
        Substitute Mortgage Loans in the month of substitution shall be retained
        by the
        Seller. For the month of substitution, distributions to the Purchaser shall
        include the Monthly Payment due on any Deleted Mortgage Loan in the month
        of
        substitution, and the Seller shall thereafter be entitled to retain all amounts
        subsequently received by the Seller in respect of such Deleted Mortgage
        Loan.

       

      For
        any
        month in which the Seller substitutes a Qualified Substitute Mortgage Loan
        for a
        Deleted Mortgage Loan, the Seller shall determine the amount (if any) by
        which
        the aggregate principal balance of all Qualified Substitute Mortgage Loans
        as of
        the date of substitution is less than the aggregate Stated Principal Balance
        of
        all Deleted Mortgage Loans (after application of scheduled principal payments
        due in the month of substitution). The amount of such shortfall shall be
        distributed by the Seller directly to the Purchaser or its designee in
        accordance with the Purchaser’s instructions within two (2) Business Days of
        such substitution.

       

      In
        addition to such repurchase or substitution obligation, the Seller shall
        indemnify the Purchaser and the Successor Servicer and hold such parties
        harmless against any losses, damages, penalties, fines, forfeitures, reasonable
        and necessary legal fees and related costs, judgments, and other costs and
        expenses resulting from any claim, demand, defense or assertion based on
        or
        grounded upon, or resulting from, a breach of the Seller representations
        and
        warranties contained in this Agreement or any Reconstitution Agreement. It
        is
        understood and agreed that the obligations of the Seller set forth in this
        Subsection
        9.03
        to cure,
        substitute for or repurchase a defective Mortgage Loan and to indemnify the
        Purchaser and the Successor Servicer as provided in this Subsection
        9.03
        constitute the sole remedies of the Purchaser and the Successor Servicer
        respecting a breach of the foregoing representations and
        warranties.

       

      Any
        cause
        of action against the Seller relating to or arising out of the breach of
        any
        representations and warranties made in Subsections
        9.01 and 9.02
        shall
        accrue as to any Mortgage Loan upon (i) discovery of such breach by the
        Purchaser or notice thereof by the Seller to the Purchaser, (ii) failure by
        the Seller to cure such breach or repurchase such Mortgage Loan as specified
        above, and (iii) demand upon the Seller by the Purchaser for compliance
        with this Agreement.

       

      Subsection
        9.04  [RESERVED].

       

      Subsection
        9.05  Repurchase
        of Mortgage Loans With First Payment Defaults.

       

      If
        the
        related Mortgagor is delinquent with respect to the Mortgage Loan’s first
        Monthly Payment either (i) after origination of such Mortgage Loan, or
        (ii) after the related Closing Date, the Seller, at the Purchaser’s option,
        shall repurchase such Mortgage Loan from the Purchaser at a price equal to
        the
        percentage of par as stated in the related Purchase Price and Terms Agreement
        (subject to adjustment as provided therein) multiplied by the then outstanding
        principal balance of such Mortgage Loan, plus accrued and unpaid interest
        thereon from the date to which interest was last paid through the day prior
        to
        the repurchase date at the applicable Mortgage Interest Rate, plus any
        outstanding advances owed to any servicer in connection with such Mortgage
        Loan.
        For purposes of clarification, with respect to a Mortgage Loan’s first Monthly
        Payment after the related Closing Date, such payment shall not be considered
        a
“First Payment Default” for purposes of clause (ii) of the previous sentence
        until the payment has not been received by the Purchaser within sixty (60)
        days
        of the related Due Date (effectively allowing for a thirty (30) day cure
        period). The Purchaser shall have ninety (90) days following any such
        delinquency to notify the Seller of any repurchase request and the Seller
        shall
        repurchase such delinquent Mortgage Loan within thirty (30) days of the date
        of
        such request.

       

      Subsection
        9.06  Repurchase
        of Certain Mortgage Loans That Prepay in Full.

       

      With
        respect to Mortgage Loans without prepayment penalties, in the event that
        any
        such Mortgage Loan prepays in full either (i) on or before a Securitization
        Transaction or (ii) during the first three (3) months following the related
        Closing Date, the Seller shall pay the Purchaser, within three (3) Business
        Days
        of such prepayment in full, the difference between the Purchase Price for
        such
        Mortgage Loan and the outstanding principal balance of such Mortgage Loan
        as of
        the related Cut-off Date.

       

      
        	
              	SECTION
                10.	
                Closing.

              

      

       

      The
        closing for the purchase and sale of each Mortgage Loan Package shall take
        place
        on the related Closing Date. At the Purchaser’s option, each Closing shall be
        either: by telephone, confirmed by letter or wire as the parties shall agree,
        or
        conducted in person, at such place as the parties shall agree.

       

      The
        closing for the Mortgage Loans to be purchased on each Closing Date shall
        be
        subject to each of the following conditions:

       

      
        	 	
                (i)

              	
                at
                  least two Business Days prior to the related Closing Date, the
                  Seller
                  shall deliver to the Purchaser a magnetic diskette, or transmit
                  by modem,
                  a listing on a loan-level basis of the necessary information to
                  compute
                  the Purchase Price of the Mortgage Loans delivered on such Closing
                  Date
                  (including accrued interest), and prepare a Mortgage Loan
                  Schedule;

              

      

       

      
        	 	
                (ii)

              	
                all
                  of the representations and warranties of the Seller under this
                  Agreement
                  and of the Originator under the Servicing Agreement (with respect
                  to each
                  Mortgage Loan, as specified therein) shall be true and correct
                  as of the
                  related Closing Date and no event shall have occurred which, with
                  notice
                  or the passage of time, would constitute a default under this Agreement
                  or
                  an Event of Default under the Servicing
                  Agreement;

              

      

       

      
        	 	
                (iii)

              	
                the
                  Purchaser shall have received, or the Purchaser’s attorneys shall have
                  received in escrow, all closing documents as specified in Section
                  11
                  of
                  this Agreement, in such forms as are agreed upon and acceptable
                  to the
                  Purchaser, duly executed by all signatories other than the Purchaser
                  as
                  required pursuant to the terms
                  hereof;

              

      

       

      
        	 	
                (iv)

              	
                the
                  Seller shall have delivered and released to the Custodian all documents
                  required pursuant to the Custodial Agreement;
                  and

              

      

       

      
        	 	
                (v)

              	
                all
                  other terms and conditions of this Agreement and the related Purchase
                  Price and Terms Agreement shall have been complied
                  with.

              

      

       

      Subject
        to the foregoing conditions, the Purchaser shall pay to the Seller on the
        related Closing Date the Purchase Price, plus accrued interest pursuant to
        Section
        4
        of this
        Agreement, by wire transfer of immediately available funds to the account
        designated by the Seller.

       

      
        	
              	SECTION
                11.	
                Closing
                  Documents.

              

      

       

      The
        Closing Documents for the Mortgage Loans to be purchased on each Closing
        Date
        shall consist of fully executed originals of the following
        documents:

       

      
        	
              	1.	
                this
                  Agreement (to be executed and delivered only for the initial Closing
                  Date);

              

      

       

      
        	
              	2.	
                the
                  related Mortgage Loan Schedule (one copy to be attached to the
                  Custodian’s
                  counterpart of the Custodial Agreement in connection with the initial
                  Closing Date, and one copy to be attached to the related Assignment
                  and
                  Conveyance as the Mortgage Loan Schedule
                  thereto);

              

      

       

      
        	
              	3.	
                a
                  Custodian’s Certification, as required under the Custodial Agreement, in
                  the form of Exhibit 2
                  to
                  the Custodial Agreement;

              

      

       

      
        	
              	4.	
                with
                  respect to the initial Closing Date, an Officer’s Certificate, in the form
                  of Exhibit C
                  hereto with respect to each of the Seller and the Originator, including
                  all attachments thereto; with respect to subsequent Closing Dates,
                  an
                  Officer’s Certificate upon request of the
                  Purchaser;

              

      

       

      
        	
              	5.	
                with
                  respect to the initial Closing Date, an Opinion of Counsel of the
                  Seller
                  (who may be an employee of the Seller), in the form of Exhibit D
                  hereto (“Opinion
                  of Counsel of the Seller”);
                  with respect to subsequent Closing Dates, an Opinion of Counsel
                  of the
                  Seller upon request of the
                  Purchaser;

              

      

       

      
        	
              	6.	
                with
                  respect to the initial Closing Date, an Opinion of Counsel of the
                  Custodian (who may be an employee of the Custodian), in the form
                  of an
                  exhibit to the Custodial Agreement;

              

      

       

      
        	
              	7.	
                a
                  Security Release Certification, in the form of Exhibit E
                  or F, as applicable,
                  hereto executed by any person, as requested by the Purchaser, if
                  any of
                  the Mortgage Loans have at any time been subject to any security
                  interest,
                  pledge or hypothecation for the benefit of such
                  person;

              

      

       

      
        	
              	8.	
                a
                  certificate or other evidence of merger or change of name, signed
                  or
                  stamped by the applicable regulatory authority, if any of the Mortgage
                  Loans were acquired by the Seller by merger or acquired or originated
                  by
                  the Seller while conducting business under a name other than its
                  present
                  name, if applicable;

              

      

       

      
        	
              	9.	
                with
                  respect to the initial Closing Date, the Underwriting Guidelines
                  to be
                  attached hereto as Exhibit G;
                  and

              

      

       

      
        	
              	10.	
                Assignment
                  and Conveyance Agreement in the form of Exhibit H
                  hereto, and all exhibits thereto.

              

      

       

      The
        Seller shall bear the risk of loss of the closing documents until such time
        as
        they are received by the Purchaser or its attorneys.

       

      
        	
              	SECTION
                12.	
                Costs.

              

      

       

      The
        Purchaser shall pay any fees and expenses relating to due diligence review
        of
        the Mortgage Files, commissions due its salesmen, fees of the Custodian incurred
        following the related Closing Date, fees for recording each Assignment of
        Mortgage, any loan file shipping fees and the legal fees and expenses of
        its
        attorneys and custodial fees. All other costs and expenses incurred in
        connection with the transfer and delivery of the Mortgage Loans and the
        Servicing Rights including fees for title policy endorsements and continuations,
        and the Seller’s attorney’s fees, shall be paid by the Seller.

       

      
        	
              	SECTION
                13.	
                Cooperation
                  of Seller with a Reconstitution.

              

      

       

      The
        Seller and the Purchaser agree that with respect to some or all of the Mortgage
        Loans, after each Closing Date, on one or more dates (each, a “Reconstitution
        Date”)
        at the
        Purchaser’s sole option, the Purchaser may effect a sale (each a “Reconstitution”)
        of
        some or all of the Mortgage Loans then subject to this Agreement, without
        recourse, to:

       

      
        	 	
                (i)

              	
                Fannie
                  Mae under its Cash Purchase Program or MBS Program (Special Servicing
                  Option) (each, a “Fannie
                  Mae Transfer”);
                  or

              

      

       

      
        	 	
                (ii)

              	
                Freddie
                  Mac (the “Freddie
                  Mac Transfer”);
                  or

              

      

       

      
        	 	
                (iii)

              	
                one
                  or more third party purchasers in one or more Whole Loan Transfers;
                  or

              

      

       

      
        	 	
                (iv)

              	
                one
                  or more trusts or other entities to be formed as part of one or
                  more
                  Securitization Transactions.

              

      

       

      The
        Seller agrees to execute in connection with any Agency Transfer, any and
        all
        pool purchase contracts, and/or agreements reasonably acceptable to the Seller
        among the Purchaser, the Seller, Fannie Mae or Freddie Mac (as the case may
        be)
        and any servicer in connection with a Whole Loan Transfer, a seller’s warranties
        and servicing agreement or a participation and servicing agreement in form
        and
        substance reasonably acceptable to the Seller, and in connection with a
        Securitization Transaction, a pooling and servicing agreement in form and
        substance reasonably acceptable to the Seller (collectively the agreements
        referred to herein are designated, the “Reconstitution
        Agreements”).

       

      With
        respect to each Whole Loan Transfer and each Securitization Transaction entered
        into by the Purchaser, the Seller agrees (1) to cooperate fully with the
        Purchaser and any prospective purchaser with respect to all reasonable requests
        and due diligence procedures; (2) to execute, deliver and perform all
        Reconstitution Agreements required by the Purchaser; and (3) to restate the
        representations and warranties set forth in this Agreement and the Servicing
        Agreement as of the settlement or closing date in connection with such
        Reconstitution that occurs on or prior to the date which is six (6) months
        following the related Closing Date and in connection with any Reconstitution
        on
        or after the date which is six (6) months following the related Closing
        Date, to restate the representations and warranties set forth in this Agreement
        as of the Closing Date (each, a “Reconstitution
        Date”)
        or
        make the representations and warranties set forth in the related
        selling/servicing guide of the master servicer or issuer, as the case may
        be, in
        connection with such Reconstitution. The Seller shall use its reasonable
        best
        efforts to provide to such master servicer or issuer, as the case may be,
        and
        any other participants in such Reconstitution: (i) any and all information
        and appropriate verification of information which may be reasonably available
        to
        the Seller or its affiliates, whether through letters of its auditors and
        counsel or otherwise, as the Purchaser or any such other participant shall
        request; (ii) such additional representations, warranties, covenants,
        opinions of counsel, letters from auditors, and certificates of public officials
        or officers of the Seller or the Originator as are reasonably believed necessary
        by the Purchaser or any such other participant; and (iii) to execute,
        deliver and satisfy all conditions set forth in any indemnity agreement required
        by the Purchaser or any such participant. The Seller shall indemnify the
        Purchaser, each Affiliate designated by the Purchaser and each Person who
        controls the Purchaser or such Affiliate and hold each of them harmless from
        and
        against any losses, damages, penalties, fines, forfeitures, reasonable and
        necessary legal fees and related costs, judgments, and any other costs, fees
        and
        expenses that each of them may sustain in any way related to any information
        provided by or on behalf of the Seller or the Originator regarding the Seller,
        the Originator, the Seller’s or other originator’s Static Pool Information, the
        Seller’s and Originator’s servicing practices or performance, the Mortgage Loans
        or the Underwriting Guidelines set forth in any offering document prepared
        in
        connection with any Reconstitution. For purposes of the previous sentence,
        “Purchaser” shall mean the Person then acting as the Purchaser under this
        Agreement and any and all Persons who previously were “Purchasers” under this
        Agreement. Moreover, the Seller agrees to cooperate with all reasonable requests
        made by the Purchaser to effect such Reconstitution Agreements.

       

      In
        the
        event the Purchaser has elected to have the Seller or the Originator hold
        record
        title to the Mortgages, prior to the Reconstitution Date, the Seller shall
        prepare an assignment of mortgage in blank or to the prospective purchaser
        or
        trustee, as applicable, from the Seller or the Originator, as applicable,
        acceptable to the prospective purchaser or trustee, as applicable, for each
        Mortgage Loan that is part of the Reconstitution and shall pay all preparation
        and recording costs associated therewith. In connection with the Reconstitution,
        the Seller shall execute or shall cause the Originator to execute each
        assignment of mortgage, track such Assignments of Mortgage to ensure they
        have
        been recorded and deliver them as required by the prospective purchaser or
        trustee, as applicable, upon the Seller’s receipt thereof. Additionally, the
        Seller shall prepare and execute or shall cause the Originator to execute,
        at
        the direction of the Purchaser, any note endorsement in connection with any
        and
        all seller/servicer agreements.

       

      All
        Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
        remain
        subject to this Agreement and, if the Servicing Agreement shall remain in
        effect
        with respect to the related Mortgage Loan Package, shall continue to be serviced
        in accordance with the terms of this Agreement and the Servicing Agreement
        and
        with respect thereto this Agreement shall remain in full force and
        effect.

       

      
        	
              	SECTION
                14.	
                The
                  Seller.

              

      

       

      Subsection
        14.01  Additional
        Indemnification by the Seller; Third Party Claims.

       

      The
        Seller shall indemnify the Purchaser and the Successor Servicer and hold
        such
        parties harmless against any and all claims, losses, damages, penalties,
        fines,
        forfeitures, reasonable and necessary legal fees and related costs, judgments,
        and any other costs, fees and expenses that such parties may sustain in any
        way
        related to the failure of the Seller to perform its duties and the Originator
        to
        service the Mortgage Loans in strict compliance with the terms of this Agreement
        or any Reconstitution Agreement entered into pursuant to Section 13.
        The
        Seller immediately shall notify the Purchaser if a claim is made by a third
        party with respect to this Agreement or any Reconstitution Agreement or the
        Mortgage Loans, assume (with the prior written consent of the Purchaser)
        the
        defense of any such claim and pay all expenses in connection therewith,
        including counsel fees, and promptly pay, discharge and satisfy any judgment
        or
        decree which may be entered against it or the Purchaser in respect of such
        claim. The Purchaser promptly shall reimburse the Seller for all amounts
        advanced by it pursuant to the preceding sentence, except when the claim
        is in
        any way related to the Seller’s indemnification pursuant to Section 9,
        or is
        in any way related to the failure of the Originator or the Seller to service
        and
        administer the Mortgage Loans in strict compliance with the terms of this
        Agreement or any Reconstitution Agreement.

       

      Subsection
        14.02  Merger
        or Consolidation of the Seller.

       

      The
        Seller will keep in full effect its existence, rights and franchises as a
        corporation under the laws of the state of its incorporation except as permitted
        herein, and will obtain and preserve its qualification to do business as
        a
        foreign corporation in each jurisdiction in which such qualification is or
        shall
        be necessary to protect the validity and enforceability of this Agreement,
        or
        any of the Mortgage Loans and to perform its duties under this
        Agreement.

       

      Any
        Person into which the Seller may be merged or consolidated, or any corporation
        resulting from any merger, conversion or consolidation to which the Seller
        shall
        be a party, or any Person succeeding to the business of the Seller, shall
        be the
        successor of the Seller hereunder, without the execution or filing of any
        paper
        or any further act on the part of any of the parties hereto, anything herein
        to
        the contrary notwithstanding; provided, however, that the successor or surviving
        Person shall have a net worth of at least $25,000,000.

       

      
        	
              	SECTION
                15.	
                Financial
                  Statements.

              

      

       

      The
        Seller understands that in connection with the Purchaser’s marketing of the
        Mortgage Loans, the Purchaser shall make available to prospective purchasers
        audited financial statements of the Seller for the most recently completed
        three
        fiscal years respecting which such statements are available, as well as a
        Consolidated Statement of Condition of the Seller at the end of the last
        two
        fiscal years covered by such Consolidated Statement of Operations. The Seller
        shall also make available any comparable interim statements to the extent
        any
        such statements have been prepared by the Seller (and are available upon
        request
        to members or stockholders of the Seller or the public at large). The Seller,
        if
        it has not already done so, agrees to furnish promptly to the Purchaser copies
        of the statements specified above. The Seller shall also make available
        information on its servicing performance with respect to loans serviced for
        others, including delinquency ratios.

       

      The
        Seller also agrees to allow reasonable access to a knowledgeable financial
        or
        accounting officer for the purpose of answering questions asked by any
        prospective purchaser regarding recent developments affecting the Seller
        or the
        financial statements of the Seller.

       

      
        	
              	SECTION
                16.	
                Mandatory
                  Delivery; Grant of Security Interest.

              

      

       

      The
        sale
        and delivery on the related Closing Date of the Mortgage Loans described
        on the
        related Mortgage Loan Schedule is mandatory from and after the date of the
        execution of the related Purchase Price and Terms Agreement, it being
        specifically understood and agreed that each Mortgage Loan is unique and
        identifiable on the date hereof and that an award of money damages would
        be
        insufficient to compensate the Purchaser for the losses and damages incurred
        by
        the Purchaser (including damages to prospective purchasers of the Mortgage
        Loans) in the event of the Seller’s failure to deliver (i) each of the
        related Mortgage Loans or (ii) one or more Qualified Substitute Mortgage
        Loans or (iii) one or more Mortgage Loans otherwise acceptable to the
        Purchaser on or before the related Closing Date. The Seller hereby grants
        to the
        Purchaser a lien on and a continuing security interest in each Mortgage Loan
        and
        each document and instrument evidencing each such Mortgage Loan to secure
        the
        performance by the Seller of its obligations under the related Purchase Price
        and Terms Agreement, and the Seller agrees that it shall hold such Mortgage
        Loans in custody for the Purchaser subject to the Purchaser’s (a) right to
        reject any Mortgage Loan (or Qualified Substitute Mortgage Loan) under the
        terms
        of this Agreement and to require another Mortgage Loan (or Qualified Substitute
        Mortgage Loan) to be substituted therefor, and (b) obligation to pay the
        Purchase Price for the Mortgage Loans. All rights and remedies of the Purchaser
        under this Agreement are distinct from, and cumulative with, any other rights
        or
        remedies under this Agreement or afforded by law or equity and all such rights
        and remedies may be exercised concurrently, independently or
        successively.

       

      
        	
              	SECTION
                17.	
                Notices.

              

      

       

      All
        demands, notices and communications hereunder shall be in writing and shall
        be
        deemed to have been duly given if mailed, by registered or certified mail,
        return receipt requested, or, if by other means, when received by the other
        party at the address as follows:

       

      
        	 	
                (i)

              	
                if
                  to the Seller:

              

      

       

      NC
        Capital Corporation

      18400
        Van
        Karman, Suite 1000

      Irvine,
        California 92612 

      Attention:
        Mr. Kevin Cloyd

       

      
        	
              	(ii)	
                if
                  to the Purchaser:

              

      

       

      Morgan
        Stanley Mortgage Capital Inc.

      1221
        Avenue of the Americas, 27th Floor 

      New
        York,
        New York 10020

      Attention:
        Peter Woroniecki - Whole Loan Operations Manager

      Fax:
        212-507-3565

      Email:
        peter.woroniecki@morganstanley.com

       

      with
        copies to:

       

      Scott
        Samlin 

      Morgan
        Stanley - RFPG 

      1585
        Broadway, 10th
        Floor

      New
        York,
        New York 10036 

      Fax:
        212-507-6569 

      Email:
        scott.samlin@morganstanley.com

       

      or
        such
        other address as may hereafter be furnished to the other party by like notice.
        Any such demand, notice or communication hereunder shall be deemed to have
        been
        received on the date delivered to or received at the premises of the addressee
        (as evidenced, in the case of registered or certified mail, by the date noted
        on
        the return receipt).

       

      
        	
              	SECTION
                18.	
                Severability
                  Clause.

              

      

       

      Any
        part,
        provision representation or warranty of this Agreement which is prohibited
        or
        unenforceable or is held to be void or unenforceable in any jurisdiction
        shall
        be ineffective, as to such jurisdiction, to the extent of such prohibition
        or
        unenforceability without invalidating the remaining provisions hereof, and
        any
        such prohibition or unenforceability in any jurisdiction as to any Mortgage
        Loan
        shall not invalidate or render unenforceable such provision in any other
        jurisdiction. To the extent permitted by applicable law, the parties hereto
        waive any provision of law which prohibits or renders void or unenforceable
        any
        provision hereof. If the invalidity of any part, provision, representation
        or
        warranty of this Agreement shall deprive any party of the economic benefit
        intended to be conferred by this Agreement, the parties shall negotiate,
        in
        good-faith, to develop a structure the economic effect of which is nearly
        as
        possible the same as the economic effect of this Agreement without regard
        to
        such invalidity.

       

      
        	
              	SECTION
                19.	
                Counterparts.

              

      

       

      This
        Agreement may be executed simultaneously in any number of counterparts. Each
        counterpart shall be deemed to be an original, and all such counterparts
        shall
        constitute one and the same instrument.

       

      
        	
              	SECTION
                20.	
                Governing
                  Law.

              

      

       

      This
        Agreement shall be deemed in effect when a fully executed counterpart thereof
        is
        received by the Purchaser in the State of New York and shall be deemed to
        have
        been made in the State of New York. The Agreement shall be construed in
        accordance with the laws of the State of New York and the obligations, rights
        and remedies of the parties hereunder shall be determined in accordance with
        the
        substantive laws of the State of New York (without regard to conflicts of
        laws
        principles), except to the extent preempted by Federal law.

       

      
        	
              	SECTION
                21.	
                Intention
                  of the Parties.

              

      

       

      It
        is the
        intention of the parties that the Purchaser is purchasing, and the Seller
        is
        selling the Mortgage Loans and not a debt instrument of the Seller or another
        security. Accordingly, the parties hereto each intend to treat the transaction
        for Federal income tax purposes as a sale by the Seller, and a purchase by
        the
        Purchaser, of the Mortgage Loans. Moreover, the arrangement under which the
        Mortgage Loans are held shall be consistent with classification of such
        arrangement as a grantor trust in the event it is not found to represent
        direct
        ownership of the Mortgage Loans. The Purchaser shall have the right to review
        the Mortgage Loans and the related Mortgage Loan Files to determine the
        characteristics of the Mortgage Loans which shall affect the Federal income
        tax
        consequences of owning the Mortgage Loans and the Seller shall cooperate
        with
        all reasonable requests made by the Purchaser in the course of such
        review.

       

      
        	
              	SECTION
                22.	
                Successors
                  and Assigns; Assignment of Purchase Agreement.

              

      

       

      This
        Agreement shall bind and inure to the benefit of and be enforceable by the
        Seller and the Purchaser and the respective permitted successors and assigns
        of
        the Seller and the successors and assigns of the Purchaser. This Agreement
        shall
        not be assigned, pledged or hypothecated by the Seller to a third party without
        the consent of the Purchaser. This Agreement may be assigned, pledged or
        hypothecated by the Purchaser without the consent of the Seller. In the event
        the Purchaser assigns this Agreement, and the assignee assumes any of the
        Purchaser’s obligations hereunder, the Seller acknowledges and agrees to look
        solely to such assignee, and not to the Purchaser, for performance of the
        obligations so assumed and the Purchaser shall be relieved from any liability
        to
        the Seller with respect thereto.

       

      
        	
              	SECTION
                23.	
                Waivers.

              

      

       

      No
        term
        or provision of this Agreement may be waived or modified unless such waiver
        or
        modification is in writing and signed by the party against whom such waiver
        or
        modification is sought to be enforced.

       

      
        	
              	SECTION
                24.	
                Exhibits.

              

      

       

      The
        exhibits to this Agreement are hereby incorporated and made a part hereof
        and
        are an integral part of this Agreement.

       

      
        	
              	SECTION
                25.	
                General
                  Interpretive Principles.

              

      

       

      For
        purposes of this Agreement, except as otherwise expressly provided or unless
        the
        context otherwise requires:

       

      (a)  the
        terms
        defined in this Agreement have the meanings assigned to them in this Agreement
        and include the plural as well as the singular, and the use of any gender
        herein
        shall be deemed to include the other gender;

       

      (b)  accounting
        terms not otherwise defined herein have the meanings assigned to them in
        accordance with generally accepted accounting principles;

       

      (c)  references
        herein to “Articles,” “Sections,” “Subsections,” “Paragraphs,” and other
        subdivisions without reference to a document are to designated Articles,
        Sections, Subsections, Paragraphs and other subdivisions of this
        Agreement;

       

      (d)  reference
        to a Subsection without further reference to a Section is a reference to
        such
        Subsection as contained in the same Section in which the reference appears,
        and
        this rule shall also apply to Paragraphs and other subdivisions;

       

      (e)  the
        words
“herein,” “hereof,” “hereunder” and other words of similar import refer to this
        Agreement as a whole and not to any particular provision; and

       

      (f)  the
        term
“include” or “including” shall mean without limitation by reason of
        enumeration.

       

      
        	
              	SECTION
                26.	
                Reproduction
                  of Documents.

              

      

       

      This
        Agreement and all documents relating thereto, including, without limitation,
        (a) consents, waivers and modifications which may hereafter be executed,
        (b) documents received by any party at the closing, and (c) financial
        statements, certificates and other information previously or hereafter
        furnished, may be reproduced by any photographic, photostatic, microfilm,
        micro-card, miniature photographic or other similar process. The parties
        agree
        that any such reproduction shall be admissible in evidence as the original
        itself in any judicial or administrative proceeding, whether or not the original
        is in existence and whether or not such reproduction was made by a party
        in the
        regular course of business, and that any enlargement, facsimile or further
        reproduction of such reproduction shall likewise be admissible in
        evidence.

       

      
        	
              	SECTION
                27.	
                Further
                  Agreements.

              

      

       

      The
        Seller and the Purchaser each agree to execute and deliver to the other such
        reasonable and appropriate additional documents, instruments or agreements
        as
        may be necessary or appropriate to effectuate the purposes of this
        Agreement.

       

      
        	
              	SECTION
                28.	
                Recordation
                  of Assignments of Mortgage.

              

      

       

      To
        the
        extent permitted by applicable law, each of the Assignments of Mortgage is
        subject to recordation in all appropriate public offices for real property
        records in all the counties or their comparable jurisdictions in which any
        or
        all of the Mortgaged Properties are situated, and in any other appropriate
        public recording office or elsewhere, such recordation to be effected at
        the
        Seller’s expense in the event recordation is either necessary under applicable
        law or requested by the Purchaser at its sole option.

       

      
        	
              	SECTION
                29.	
                No
                  Solicitation.

              

      

       

      From
        and
        after the related Closing Date, the Seller agrees that it will not take any
        action or permit or cause any action to be taken by any of its agents or
        affiliates, or by any independent contractors on the Seller’s behalf, to
        personally, by telephone or mail, solicit the borrower or obligor under any
        Mortgage Loan for any purpose whatsoever, including to refinance a Mortgage
        Loan, in whole or in part, without (i) the prior written consent of the
        Purchaser; or (ii) written notice from the related borrower or obligor
        under a Mortgage Loan of such party’s intention to refinance such Mortgage Loan.
        It is understood and agreed that all rights and benefits relating to the
        solicitation of any Mortgagors and the attendant rights, title and interest
        in
        and to the list of such Mortgagors and data relating to their Mortgages
        (including insurance renewal dates) shall be transferred to the Purchaser
        pursuant hereto on the related Closing Date and the Seller shall take no
        action
        to undermine these rights and benefits. Notwithstanding the foregoing, it
        is
        understood and agreed that promotions undertaken by the Seller or any affiliate
        of the Seller which are directed to the general public at large, including,
        without limitation, mass mailing based on commercially acquired mailing lists,
        newspaper, radio and television advertisements shall not constitute solicitation
        under this Section
        29.

       

      
        	
              	SECTION
                30.	
                Waiver
                  of Trial by Jury.

              

      

       

      THE
        SELLER AND THE PURCHASER EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES
        TO
        THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A
        TRIAL
        BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE
        TRANSACTIONS CONTEMPLATED HEREBY.

       

      
        	
              	SECTION
                31.	
                Submission
                  To Jurisdiction; Waivers.

              

      

       

      The
        Seller hereby irrevocably and unconditionally:

       

      (A) SUBMITS
        FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO
        THIS
        AGREEMENT, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT
        THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE
        OF
        NEW YORK, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN
        DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;

       

      (B) CONSENTS
        THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO
        THE
        EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
        HAVE
        TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH
        ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT
        TO
        PLEAD OR CLAIM THE SAME;

       

      (C) AGREES
        THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED
        BY
        MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY
        SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH HEREIN OR
        AT
        SUCH OTHER ADDRESS OF WHICH THE PURCHASER SHALL HAVE BEEN NOTIFIED;
        AND

       

      (D) AGREES
        THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN
        ANY
        OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER
        JURISDICTION.

       

      
        	
              	SECTION
                32.	
                Compliance
                  With Regulation AB.

              

      

       

      Subsection
        32.01  Intent
        of the Parties; Reasonableness.

       

      The
        Purchaser and the Seller acknowledge and agree that the purpose of Section 32
        of this
        Agreement is to facilitate compliance by the Purchaser and any Depositor
        with
        the provisions of Regulation AB and related rules and regulations of the
        Commission. Although Regulation AB is applicable by its terms only to offerings
        of asset-backed securities that are registered under the Securities Act,
        the
        Seller acknowledges that investors in privately offered securities may require
        that the Purchaser or any Depositor provide comparable disclosure in
        unregistered offerings. References in this Agreement to compliance with
        Regulation AB include provision of comparable disclosure in private offerings.
        

       

      Neither
        the Purchaser nor any Depositor shall exercise its right to request delivery
        of
        information or other performance under these provisions other than in good
        faith, or for purposes other than compliance with the Securities Act, the
        Exchange Act and the rules and regulations of the Commission thereunder (or
        the
        provision in a private offering of disclosure comparable to that required
        under
        the Securities Act). The Seller acknowledges that interpretations of the
        requirements of Regulation AB may change over time, whether due to interpretive
        guidance provided by the Commission or its staff, consensus among participants
        in the asset-backed securities markets, advice of counsel, or otherwise,
        and
        agrees to comply with requests made by the Purchaser or any Depositor in
        good
        faith for delivery of information under these provisions on the basis of
        evolving interpretations of Regulation AB. In connection with any Securitization
        Transaction, the Seller shall cooperate fully with the Purchaser to deliver
        to
        the Purchaser (including any of its assignees or designees) and any Depositor,
        any and all statements, reports, certifications, records and any other
        information necessary in the good faith determination of the Purchaser or
        any
        Depositor to permit the Purchaser or such Depositor to comply with the
        provisions of Regulation AB, together with such disclosures relating to the
        Seller, any Third-Party Originator and the Mortgage Loans, or the servicing
        of
        the Mortgage Loans, reasonably believed by the Purchaser or any Depositor
        to be
        necessary in order to effect such compliance.

       

      The
        Purchaser (including any of its assignees or designees) shall cooperate with
        the
        Seller by providing timely notice of requests for information under these
        provisions and by reasonably limiting such requests to information required,
        in
        the Purchaser’s reasonable judgment, to comply with Regulation AB.

       

      Subsection
        32.02  Additional
        Representations and Warranties of the Seller.

       

      (a)  The
        Seller shall be deemed to represent to the Purchaser and to any Depositor,
        as of
        the date on which information is first provided to the Purchaser or any
        Depositor under Subsection
        32.03
        that,
        except as disclosed in writing to the Purchaser or such Depositor prior to
        such
        date: (i) the Seller is not aware and has not received notice that any default,
        early amortization or other performance triggering event has occurred as
        to any
        other securitization due to any act or failure to act of the Seller; (ii)
        the
        Interim Servicer has not been terminated as servicer in a residential mortgage
        loan securitization, either due to a servicing default or to application
        of a
        servicing performance test or trigger; (iii) no material noncompliance with
        the
        applicable servicing criteria with respect to other securitizations of
        residential mortgage loans involving the Interim Servicer as servicer has
        been
        disclosed or reported by the Seller; (iv) no material changes to the Interim
        Servicer’s policies or procedures with respect to the servicing function it will
        perform under the Interim Servicing Agreement and any Reconstitution Agreement
        for mortgage loans of a type similar to the Mortgage Loans have occurred
        during
        the three-year period immediately preceding the related Securitization
        Transaction; (v) there are no aspects of the Interim Servicer’s financial
        condition that could have a material adverse effect on the performance by
        the
        Interim Servicer of its servicing obligations under the Interim Servicing
        Agreement or any Reconstitution Agreement; (vi) there are no material legal
        or
        governmental proceedings pending (or known to be contemplated) against the
        Seller, Interim Servicer, any Subservicer or any Third-Party Originator;
        and
        (vii) there are no affiliations, relationships or transactions relating to
        the
        Seller, Interim Servicer, any Subservicer or any Third-Party Originator with
        respect to any Securitization Transaction and any party thereto identified
        by
        the related Depositor of a type described in Item 1119 of Regulation
        AB.

       

      (b)  If
        so
        requested by the Purchaser or any Depositor on any date following the date
        on
        which information is first provided to the Purchaser or any Depositor under
        Subsection
        32.03,
        the
        Seller shall, within five Business Days following such request, confirm in
        writing the accuracy of the representations and warranties set forth in
        paragraph (a) of this Section or, if any such representation and warranty
        is not
        accurate as of the date of such request, provide reasonably adequate disclosure
        of the pertinent facts, in writing, to the requesting party.

       

      Subsection
        32.03  Information
        to Be Provided by the Seller.

       

      In
        connection with any Securitization Transaction the Seller shall (i) within
        five
        Business Days following request by the Purchaser or any Depositor, provide
        to
        the Purchaser and such Depositor (or, as applicable, cause each Third-Party
        Originator to provide), in writing and in form and substance reasonably
        satisfactory to the Purchaser and such Depositor, the information and materials
        specified in paragraphs (a) and (b) of this Section, and (ii) as promptly
        as
        practicable following notice to or discovery by the Seller, provide to the
        Purchaser and any Depositor (in writing and in form and substance reasonably
        satisfactory to the Purchaser and such Depositor) the information specified
        in
        paragraph (d) of this Section. 

       

      (a)  If
        so
        requested by the Purchaser or any Depositor, the Seller shall provide such
        information regarding (i) the Seller, as originator of the Mortgage Loans
        (including as an acquirer of Mortgage Loans from a Qualified Correspondent),
        or
        (ii) each Third-Party Originator, as is requested for the purpose of compliance
        with Items 1103(a)(1), 1105, 1110, 1117 and 1119 of Regulation AB. Such
        information shall include, at a minimum:

       

      (A)  the
        originator’s form of organization;

       

      (B)  a
        description of the originator’s origination program and how long the originator
        has been engaged in originating residential mortgage loans, which description
        shall include a discussion of the originator’s experience in originating
        mortgage loans of a similar type as the Mortgage Loans; information regarding
        the size and composition of the originator’s origination portfolio; and
        information that may be material, in the good faith judgment of the Purchaser
        or
        any Depositor, to an analysis of the performance of the Mortgage Loans,
        including the originators’ credit-granting or underwriting criteria for mortgage
        loans of similar type(s) as the Mortgage Loans and such other information
        as the
        Purchaser or any Depositor may reasonably request for the purpose of compliance
        with Item 1110(b)(2) of Regulation AB;

       

      (C)  a
        description of any material legal or governmental proceedings pending (or
        known
        to be contemplated) against the Seller and each Third-Party Originator;
        and

       

      (D)  a
        description of any affiliation or relationship between the Seller, each
        Third-Party Originator and any of the following parties to a Securitization
        Transaction, as such parties are identified to the Seller by the Purchaser
        or
        any Depositor in writing in advance of such Securitization
        Transaction:

       

      (1)  the
        sponsor;

      (2)  the
        depositor;

      (3)  the
        issuing entity;

      (4)  any
        servicer;

      (5)  any
        trustee;

      (6)  any
        originator;

      (7)  any
        significant obligor;

      (8)  any
        enhancement or support provider; and

      (9)  any
        other
        material transaction party.

       

      (b)  If
        so
        requested by the Purchaser or any Depositor, the Seller shall provide (or,
        as
        applicable, cause each Third-Party Originator to provide) Static Pool
        Information with respect to the mortgage loans (of a similar type as the
        Mortgage Loans, as reasonably identified by the Purchaser as provided below)
        originated by (i) the Seller, if the Seller is an originator of Mortgage
        Loans
        (including as an acquirer of Mortgage Loans from a Qualified Correspondent),
        and/or (ii) each Third-Party Originator. Such Static Pool Information shall
        be
        prepared in form and substance reasonably satisfactory to the Purchaser by
        the
        Seller (or Third-Party Originator) on the basis of its reasonable, good faith
        interpretation of the requirements of Item 1105(a)(1)-(3) of Regulation AB.
        To
        the extent that there is reasonably available to the Seller (or Third-Party
        Originator) Static Pool Information with respect to more than one mortgage
        loan
        type, the Purchaser or any Depositor shall be entitled to specify whether
        some
        or all of such information shall be provided pursuant to this paragraph.
        Such
        Static Pool Information for each vintage origination year or prior securitized
        pool, as applicable, shall be presented in increments no less frequently
        than
        quarterly over the life of the mortgage loans included in the vintage
        origination year or prior securitized pool. The most recent periodic increment
        must be as of a date no later than 135 days prior to the date of the prospectus
        or other offering document in which the Static Pool Information is to be
        included or incorporated by reference. The Static Pool Information shall
        be
        provided in an electronic format that provides a permanent record of the
        information provided, such as a portable document format (pdf) file, or other
        such electronic format reasonably required by the Purchaser or the Depositor,
        as
        applicable.

       

      Promptly
        following notice or discovery of a material error in Static Pool Information
        provided pursuant to the immediately preceding paragraph (including an omission
        to include therein information required to be provided pursuant to such
        paragraph), the Seller shall provide corrected Static Pool Information to
        the
        Purchaser or any Depositor, as applicable, in the same format in which Static
        Pool Information was previously provided to such party by the
        Seller.

       

      If
        so
        requested by the Purchaser or any Depositor, the Seller shall provide (or,
        as
        applicable, cause each Third-Party Originator to provide), at the expense
        of the
        requesting party (to the extent of any additional incremental expense associated
        with delivery pursuant to this Agreement), such agreed-upon procedures letters
        of certified public accountants reasonably acceptable to the Purchaser or
        Depositor, as applicable, pertaining to Static Pool Information relating
        to
        prior securitized pools for securitizations closed on or after January 1,
        2006 or, in the case of Static Pool Information with respect to the Seller’s or
        Third-Party Originator’s originations or purchases, to calendar months
        commencing January 1, 2006, as the Purchaser or such Depositor shall
        reasonably request. Such letters shall be addressed to and be for the benefit
        of
        such parties as the Purchaser or such Depositor shall designate, which may
        include, by way of example, any Sponsor, any Depositor and any broker dealer
        acting as underwriter, placement agent or initial purchaser with respect
        to a
        Securitization Transaction. Any such statement or letter may take the form
        of a
        standard, generally applicable document accompanied by a reliance letter
        authorizing reliance by the addressees designated by the Purchaser or such
        Depositor.

       

      (c)  [Reserved].
        

       

      (d)  If
        so
        requested by the Purchaser or any Depositor for the purpose of satisfying
        its
        reporting obligation under the Exchange Act with respect to any class of
        asset-backed securities, the Seller shall (or shall cause each Third-Party
        Originator to) (i) notify the Purchaser and any Depositor in writing of (A)
        any
        material litigation or governmental proceedings pending against the Seller
        or
        any Third-Party Originator and (B) any affiliations or relationships that
        develop following the closing date of a Securitization Transaction between
        the
        Seller or any Third-Party Originator and any of the parties specified in
        clause
        (D) of paragraph (a) of this Section (and any other parties identified in
        writing by the requesting party) with respect to such Securitization
        Transaction, and (ii) provide to the Purchaser and any Depositor a description
        of such proceedings, affiliations or relationships.

       

      Subsection
        32.04  Indemnification;
        Remedies.

       

      (a)  The
        Seller shall indemnify the Purchaser, each affiliate of the Purchaser, and
        each
        of the following parties participating in a Securitization Transaction: each
        sponsor and issuing entity; each Person responsible for the preparation,
        execution or filing of any report required to be filed with the Commission
        with
        respect to such Securitization Transaction, or for execution of a certification
        pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act with
        respect
        to such Securitization Transaction; each broker dealer acting as underwriter,
        placement agent or initial purchaser, each Person who controls any of such
        parties or the Depositor (within the meaning of Section 15 of the Securities
        Act
        and Section 20 of the Exchange Act); and the respective present and former
        directors, officers, employees and agents of each of the foregoing and of
        the
        Depositor, and shall hold each of them harmless from and against any losses,
        damages, penalties, fines, forfeitures, legal fees and expenses and related
        costs, judgments, and any other costs, fees and expenses that any of them
        may
        sustain arising out of or based upon:

       

      (1) (A) any
        untrue statement of a material fact contained or alleged to be contained
        in any
        information, report, certification, accountants’ letter or other material
        provided in written or electronic form under this Section 32
        by or on
        behalf of the Seller, or provided under this Section 32
        by or on
        behalf of any Third-Party Originator (collectively, the “Seller
        Information”),
        or
        (B) the omission or alleged omission to state in the Seller Information a
        material fact required to be stated in the Seller Information or necessary
        in
        order to make the statements therein, in the light of the circumstances under
        which they were made, not misleading; provided, by way of clarification,
        that
        clause (B) of this paragraph shall be construed solely by reference to the
        Seller Information and not to any other information communicated in connection
        with a sale or purchase of securities, without regard to whether the Seller
        Information or any portion thereof is presented together with or separately
        from
        such other information;

       

      (2) any
        failure by the Seller or any Third-Party Originator to deliver any information,
        report, certification, accountants’ letter or other material when and as
        required under this Section 32;
        or

       

      (3) any
        breach by the Seller of a representation or warranty set forth in Subsection
        32.02(a)
        or in a
        writing furnished pursuant to Subsection
        32.02(b)
        and made
        as of a date prior to the closing date of the related Securitization
        Transaction, to the extent that such breach is not cured by such closing
        date,
        or any breach by the Seller of a representation or warranty in a writing
        furnished pursuant to Subsection
        32.02(b)
        to the
        extent made as of a date subsequent to such closing date.

       

      In
        the
        case of any failure of performance described in clause (a)(2) of this Section,
        the Seller shall promptly reimburse the Purchaser, any Depositor, as applicable,
        and each Person responsible for the preparation, execution or filing of any
        report required to be filed with the Commission with respect to such
        Securitization Transaction, or for execution of a certification pursuant
        to Rule
        13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
        Securitization Transaction, for all costs reasonably incurred by each such
        party
        in order to obtain the information, report, certification, accountants’ letter
        or other material not delivered as required by the Seller or any Third-Party
        Originator.

       

      (b)  Any
        failure by the Seller or any Third-Party Originator to deliver any information,
        report, certification, accountants’ letter or other material when and as
        required under this Section 32,
        or any
        breach by the Seller of a representation or warranty set forth in Subsection
        32.02(a)
        or in a
        writing furnished pursuant to Subsection
        32.02(b)
        and made
        as of a date prior to the closing date of the related Securitization
        Transaction, to the extent that such breach is not cured by such closing
        date,
        or any breach by the Seller of a representation or warranty in a writing
        furnished pursuant to Subsection
        32.02(b)
        to the
        extent made as of a date subsequent to such closing date, shall immediately
        and
        automatically, without notice or grace period, constitute an Event of Default
        with respect to the Seller under this Agreement and any applicable
        Reconstitution Agreement, and shall entitle the Purchaser or Depositor, as
        applicable, in its sole discretion to terminate the rights and obligations
        of
        the Interim Servicer as servicer under the Interim Servicing Agreement and/or
        any applicable Reconstitution Agreement without payment (notwithstanding
        anything in this Agreement or any applicable Reconstitution Agreement to
        the
        contrary) of any compensation to the Interim Servicer; provided that to the
        extent that any provision of this Agreement and/or any applicable Reconstitution
        Agreement expressly provides for the survival of certain rights or obligations
        following termination of the Interim Servicer as servicer, such provision
        shall
        be given effect.

       

      [Signatures
        Commence on Following Page]

       

       

      IN
        WITNESS WHEREOF, the Seller and the Purchaser have caused their names to
        be
        signed hereto by their respective officers thereunto duly authorized as of
        the
        date first above written.

       

      
        	 	 	 
	 	
                MORGAN
                  STANLEY MORTGAGE 

                CAPITAL
                  INC.

                (Purchaser)

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Name:

                Title: 

              

      

       

      
        	 	 	 
	 	
                NC
                  CAPITAL CORPORATION

                (Seller)

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	Name:
                Title: 

              

      

       

       

      EXHIBIT
        A

      CONTENTS
        OF EACH MORTGAGE FILE

       

      With
        respect to each Mortgage Loan, the Mortgage File shall include each of the
        following items, which shall be available for inspection by the Purchaser
        and
        any prospective Purchaser, and which shall be delivered to the Custodian,
        or to
        such other Person as the Purchaser shall designate in writing, pursuant to
        Section 6 of the Sixth Amended and Restated Mortgage Loan Purchase and
        Warranties Agreement to which this Exhibit is attached (the “Agreement”):

       

      (c)  (a)
        the
        original Mortgage Note bearing all intervening endorsements, endorsed “Pay to
        the order of _________, without recourse” and signed in the name of the last
        endorsee (the “Last
        Endorsee”)
        by an
        authorized officer. To the extent that there is no room on the face of the
        Mortgage Notes for endorsements, the endorsement may be contained on an allonge,
        if state law so allows and the Custodian is so advised by the Seller that
        state
        law so allows. If the Mortgage Loan was acquired by the Seller in a merger,
        the
        endorsement must be by “[Last Endorsee], successor by merger to [name of
        predecessor]”. If the Mortgage Loan was acquired or originated by the Last
        Endorsee while doing business under another name, the endorsement must be
        by
“[Last Endorsee], formerly known as [previous name]”;

       

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

       

      (e)  the
        original Mortgage with evidence of recording thereon. If in connection with
        any
        Mortgage Loan, the Seller cannot deliver or cause to be delivered the original
        Mortgage with evidence of recording thereon on or prior to the Closing Date
        because of a delay caused by the public recording office where such Mortgage
        has
        been delivered for recordation or because such Mortgage has been lost or
        because
        such public recording office retains the original recorded Mortgage, the
        Seller
        shall deliver or cause to be delivered to the Custodian, a photocopy of such
        Mortgage, together with (i) in the case of a delay caused by the public
        recording office, an Officer’s Certificate of the Seller (or certified by the
        title company, escrow agent, or closing attorney) stating that such Mortgage
        has
        been dispatched to the appropriate public recording office for recordation
        and
        that the original recorded Mortgage or a copy of such Mortgage certified
        by such
        public recording office to be a true and complete copy of the original recorded
        Mortgage will be promptly delivered to the Custodian upon receipt thereof
        by the
        Seller; or (ii) in the case of a Mortgage where a public recording office
        retains the original recorded Mortgage or in the case where a Mortgage is
        lost
        after recordation in a public recording office, a copy of such Mortgage
        certified by such public recording office to be a true and complete copy
        of the
        original recorded Mortgage;

       

      (f)  the
        originals of all assumption, modification, consolidation or extension
        agreements, if any, with evidence of recording thereon, or certified copies
        thereof if the original has been sent for recording;

       

      (g)  the
        original Assignment of Mortgage for each Mortgage Loan, in form and substance
        acceptable for recording. The Assignment of Mortgage must be duly recorded
        only
        if recordation is either necessary under applicable law or commonly required
        by
        private institutional mortgage investors in the area where the Mortgaged
        Property is located or on direction of the Purchaser as provided in this
        Agreement. If the Assignment of Mortgage is to be recorded, the Mortgage
        shall
        be assigned to the Purchaser or its designee. If the Assignment of Mortgage
        is
        not to be recorded, the Assignment of Mortgage shall be delivered in blank.
        If
        the Mortgage Loan was acquired by the Seller in a merger, the Assignment
        of
        Mortgage must be made by “[Seller], successor by merger to [name of
        predecessor]”. If the Mortgage Loan was acquired or originated by the Seller
        while doing business under another name, the Assignment of Mortgage must
        be by
“[Seller], formerly known as [previous name]”;

       

      (h)  the
        originals of all intervening assignments of mortgage (if any) evidencing
        a
        complete chain of assignment from the Originator to the Last Endorsee with
        evidence of recording thereon, or if any such intervening assignment has
        not
        been returned from the applicable recording office or has been lost or if
        such
        public recording office retains the original recorded assignments of mortgage,
        the Seller shall deliver or cause to be delivered to the Custodian, a photocopy
        of such intervening assignment, together with (i) in the case of a delay
        caused by the public recording office, an Officers Certificate of the Seller
        (or
        certified by the title company, escrow agent, or closing attorney) stating
        that
        such intervening assignment of mortgage has been dispatched to the appropriate
        public recording office for recordation and that such original recorded
        intervening assignment of mortgage or a copy of such intervening assignment
        of
        mortgage certified by the appropriate public recording office to be a true
        and
        complete copy of the original recorded intervening assignment of mortgage
        will
        be promptly delivered to the Custodian upon receipt thereof by the Seller;
        or
        (ii) in the case of an intervening assignment where a public recording
        office retains the original recorded intervening assignment or in the case
        where
        an intervening assignment is lost after recordation in a public recording
        office, a copy of such intervening assignment certified by such public recording
        office to be a true and complete copy of the original recorded intervening
        assignment;

       

      (i)  the
        original mortgagee policy of title insurance or, in the event such original
        title policy is unavailable, a certified true copy of the related policy
        binder
        or commitment for title certified to be true and complete by the title insurance
        company;

       

      (j)  the
        original or, if unavailable, a copy of any security agreement, chattel mortgage
        or equivalent document executed in connection with the Mortgage;
        and

       

      (k)  if
        any of
        the above documents has been executed by a person holding a power of attorney,
        an original or photocopy of such power certified by the Seller to be a true
        and
        correct copy of the original.

       

      In
        the
        event an Officer’s Certificate of the Seller is delivered to the Purchaser
        because of a delay caused by the public recording office in returning any
        recorded document, the Seller shall deliver to the Purchaser, within 90 days
        of
        the Closing Date, an Officer’s Certificate which shall (i) identify the
        recorded document, (ii) state that the recorded document has not been
        delivered to the Custodian due solely to a delay caused by the public recording
        office, (iii) state the amount of time generally required by the applicable
        recording office to record and return a document submitted for recordation,
        and
        (iv) specify the date the applicable recorded document will be delivered to
        the Custodian. An extension of the date specified in clause (iv) above may
        be requested from the Purchaser, which consent shall not be unreasonably
        withheld.

      
 

      EXHIBIT
        B

       

      [RESERVED]

      

       

      EXHIBIT
        C

       

      SELLER’S
        OFFICER’S CERTIFICATE

       

      I,
        ____________________, hereby certify that I am the duly elected [Vice] President
        of ________________ [COMPANY], a [state] [federally] chartered institution
        organized under the laws of the [state of ____________] [United States] (the
        “Company”)
        and
        further as follows:

       

      1. Attached
        hereto as Exhibit
        1
        is a
        true, correct and complete copy of the charter of the Company which is in
        full
        force and effect on the date hereof and which has been in effect without
        amendment, waiver, rescission or modification since ___________.

       

      2. Attached
        hereto as Exhibit
        2
        is a
        true, correct and complete copy of the bylaws of the Company which are in
        effect
        on the date hereof and which have been in effect without amendment, waiver,
        rescission or modification since ___________.

       

      3. Attached
        hereto as Exhibit
        3
        is an
        original certificate of good standing of the Company issued within ten days
        of
        the date hereof, and no event has occurred since the date thereof which would
        impair such standing.

       

      4. Attached
        hereto as Exhibit
        4
        is a
        true, correct and complete copy of the corporate resolutions of the Board
        of
        Directors of the Company authorizing the Company to execute and deliver (a)
        the
        Sixth Amended and Restated Mortgage Loan Purchase and Warranties Agreement,
        dated as of _______ __, 200_, by and between Morgan Stanley Mortgage Capital
        Inc. (the “Purchaser”)
        and
        the Company (the “Purchase
        Agreement”)
        and
        (b) the Amended and Restated Interim Servicing Agreement, dated as of _______
        __, 200_, by and between the Purchaser and New Century Mortgage Corporation
        (the
“Servicing
        Agreement”),
        [and
        to endorse the Mortgage Notes and execute the Assignments of Mortgages by
        original [or facsimile] signature], and such resolutions are in effect on
        the
        date hereof and have been in effect without amendment, waiver, rescission
        or
        modification since ____________.

       

      5. Either
        (i) no consent, approval, authorization or order of any court or
        governmental agency or body is required for the execution, delivery and
        performance by the Company of or compliance by the Company with the Purchase
        Agreement, the Servicing Agreement, [the sale of the mortgage loans] or the
        consummation of the transactions contemplated by the agreements; or
        (ii) any required consent, approval, authorization or order has been
        obtained by the Company.

       

      6. Neither
        the consummation of the transactions contemplated by, nor the fulfillment
        of the
        terms of the Purchase Agreement or the Servicing Agreement conflicts or will
        conflict with or results or will result in a breach of or constitutes or
        will
        constitute a default under the charter or by-laws of the Company or, to the
        best
        of my knowledge, the terms of any indenture or other agreement or instrument
        to
        which the Company is a party or by which it is bound or to which it is subject,
        or any statute or order, rule, regulations, writ, injunction or decree of
        any
        court, governmental authority or regulatory body to which the Company is
        subject
        or by which it is bound.

       

      7. To
        the
        best of my knowledge, there is no action, suit, proceeding or investigation
        pending or threatened against the Company which, in my judgment, either in
        any
        one instance or in the aggregate, may result in any material adverse change
        in
        the business, operations, financial condition, properties or assets of the
        Company or in any material impairment of the right or ability of the Company
        to
        carry on its business substantially as now conducted or in any material
        liability on the part of the Company or which would draw into question the
        validity of the Purchase Agreement or the Servicing Agreement, or the mortgage
        loans or of any action taken or to be taken in connection with the transactions
        contemplated hereby, or which would be likely to impair materially the ability
        of the Company to perform under the terms of the Purchase Agreement or the
        Servicing Agreement.

       

      8. Each
        person listed on Exhibit
        5
        attached
        hereto who, as an officer or representative of the Company, signed (a) the
        Purchase Agreement, (b) the Servicing Agreement or (c) any other document
        delivered or on the date hereof in connection with any purchase described
        in the
        agreements set forth above was, at the respective times of such signing and
        delivery, and is now, a duly elected or appointed, qualified and acting officer
        or representative of the Company, who holds the office set forth opposite
        his or
        her name on Exhibit
        5,
        and the
        signatures of such persons appearing on such documents are their genuine
        signatures.

       

      9. The
        Company is duly authorized to engage in the transactions described and
        contemplated in the Purchase Agreement and the Servicing Agreement.

       

       

      IN
        WITNESS WHEREOF, I have hereunto signed my name and affixed the seal of the
        Company.

       

      
        	Dated:____________________ 	 	By:___________________________
	 	 	Name:_________________________
	[Seal]	 	Title: [Vice]
                President

      

       

      I,
        ________________________, an [Assistant] Secretary of ______________[COMPANY],
        hereby certify that ____________ is the duly elected, qualified and acting
        [Vice] President of the Company and that the signature appearing above is
        [her]
        [his] genuine signature.

       

      IN
        WITNESS WHEREOF, I have hereunto signed my name.

       

      
        	Dated:____________________ 	 	By:___________________________
	 	 	Name:_________________________
	[Seal]	 	Title: [Assistant]
                Secretary

      

       

      EXHIBIT
        5
        to

      Company’s
        Officer’s Certificate

      

      
        	
                NAME

                 

              	 	
                TITLE

                 

              	 	
                SIGNATURE

                 

              
	
                 

                 

              	 	 	 	 
	
                 

                 

              	 	 	 	 
	
                 

                 

              	 	 	 	 
	
                 

                 

              	 	 	 	 
	
                 

                 

              	 	 	 	 
	
                 

                 

              	 	 	 	 
	
                 

                 

              	 	 	 	 

      

      

       

      EXHIBIT
        D

       

      FORM
        OF OPINION OF COUNSEL TO THE SELLER AND ORIGINATOR

       

      (date)

       

      Morgan
        Stanley Mortgage Capital Inc.

      1585
        Broadway, 2nd Floor

      New
        York,
        New York 10036 

       

       

      Dear
        Sirs:

       

      You
        have
        requested [our] [my] opinion, as [Assistant] General Counsel to
        ___________________ (the “Company”),
        with
        respect to certain matters in connection with the sale by the Company of
        the
        Mortgage Loans pursuant to that certain Sixth Amended and Restated Mortgage
        Loan
        Purchase and Warranties Agreement by and between the Company and Morgan Stanley
        Mortgage Capital Inc. (the “Purchaser”),
        dated
        as of _________ __, 200_ (the “Purchase
        Agreement”)
        and
        the Amended and Restated Interim Servicing Agreement, by and between the
        Purchaser and New Century Mortgage Corporation (the “Originator”),
        dated
        as of _________ __, 200_ (the “Servicing
        Agreement”,
        and
        together with the Purchase Agreement, the “Agreements”).
        which
        sale is in the form of whole loans. Capitalized terms not otherwise defined
        herein have the meanings set forth in the Purchase Agreement and the Servicing
        Agreement.

       

      [We]
        [I]
        have examined the following documents:

       

      
        	
              	1.	
                the
                  Agreements;

              

      

       

      
        	
              	2.	
                the
                  form of Assignment of Mortgage;

              

      

       

      
        	
              	3.	
                the
                  form of endorsement of the Mortgage Notes;
                  and

              

      

       

      
        	 	
                4.

              	
                such
                  other documents, records and papers as we have deemed necessary
                  and
                  relevant as a basis for this
                  opinion.

              

      

       

      To
        the
        extent [we] [I] have deemed necessary and proper, [we] [I] have relied upon
        the
        representations and warranties of the Company and the Originator contained
        in
        the Agreements. [We] [I] have assumed the authenticity of all documents
        submitted to [us] [me] as originals, the genuineness of all signatures, the
        legal capacity of natural persons and the conformity to the originals of
        all
        documents.

       

      Based
        upon the foregoing, it is [our] [my] opinion that:

       

      
        	 	
                1.

              	
                The
                  Company and the Originator are [type of entity] duly organized,
                  validly
                  existing and in good standing under the laws of the [United States]
                  and
                  are qualified to transact business in, and is in good standing
                  under, the
                  laws of [the state of
                  incorporation].

              

      

       

      
        	 	
                2.

              	
                Each
                  of the Company and the Originator has the power to engage in the
                  transactions contemplated by the Agreements and all requisite power,
                  authority and legal right to execute and deliver the Agreements
                  and to
                  perform and observe the terms and conditions of the
                  Agreements.

              

      

       

      
        	 	
                3.

              	
                Each
                  Agreement has been duly authorized, executed and delivered by the
                  Company
                  and the Originator, as applicable, and is a legal, valid and binding
                  agreement enforceable in accordance with its terms against the
                  Company and
                  the Originator, as applicable, subject to bankruptcy laws and other
                  similar laws of general application affecting rights of creditors
                  and
                  subject to the application of the rules of equity, including those
                  respecting the availability of specific performance, none of which
                  will
                  materially interfere with the realization of the benefits provided
                  thereunder or with the Purchaser’s ownership of the Mortgage
                  Loans.

              

      

       

      
        	 	
                4.

              	
                Each
                  of the Company and the Originator has been duly authorized to allow
                  any of
                  its officers to execute any and all documents by original signature
                  in
                  order to complete the transactions contemplated by the
                  Agreements.

              

      

       

      
        	 	
                [5.

              	
                The
                  Company has been duly authorized to allow any of its officers to
                  execute
                  by original [or facsimile] signature the endorsements to the Mortgage
                  Notes and the Assignments of Mortgages, and the original [or facsimile]
                  signature of the officer at the Company executing the endorsements
                  to the
                  Mortgage Notes and the Assignments of Mortgages represents the
                  legal and
                  valid signature of said officer of the
                  Company].

              

      

       

      
        	 	
                6.

              	
                Either
                  (i) no consent, approval, authorization or order of any court or
                  governmental agency or body is required for the execution, delivery
                  and
                  performance by the Company or the Originator of or compliance by
                  the
                  Company or the Originator with the Agreements and the sale of the
                  Mortgage
                  Loans by the Company or the consummation of the transactions contemplated
                  by the Agreements or (ii) any required consent, approval,
                  authorization or order has been obtained by the Company or the
                  Originator.

              

      

       

      
        	 	
                7.

              	
                Neither
                  the consummation of the transactions contemplated by, nor the fulfillment
                  of the terms of, the Agreements conflicts or will conflict with
                  or results
                  or will result in a breach of or constitutes or will constitute
                  a default
                  under the charter or by-laws of the Company or the Originator,
                  as
                  applicable, or, to the best of my knowledge, the material terms
                  of any
                  indenture or other agreement or instrument to which the Company
                  or the
                  Originator is a party or by which it is bound or to which it is
                  subject,
                  or violates any statute or order, rule, regulations, writ, injunction
                  or
                  decree of any court, governmental authority or regulatory body
                  to which
                  the Company or the Originator is subject or by which it is
                  bound.

              

      

       

      
        	 	
                8.

              	
                There
                  is no action, suit, proceeding or investigation pending or, to
                  the best of
                  [our] [my] knowledge, threatened against the Company or the Originator
                  which, in [our] [my] judgment, either in any one instance or in
                  the
                  aggregate, may result in any material adverse change in the business,
                  operations, financial condition, properties or assets of the Company
                  or
                  the Originator or in any material impairment of the right or ability
                  of
                  the Company or the Originator to carry on its business substantially
                  as
                  now conducted or in any material liability on the part of the Company
                  or
                  the Originator or which would draw into question the validity of
                  the
                  Agreements or the Mortgage Loans or of any action taken or to be
                  taken in
                  connection with the transactions contemplated thereby, or which
                  would be
                  likely to impair materially the ability of the Company or the Originator
                  to perform under the terms of the
                  Agreements.

              

      

       

      
        	 	
                9.

              	
                The
                  sale of each Mortgage Note and Mortgage as and in the manner contemplated
                  by the Purchase Agreement, is sufficient to fully transfer to the
                  Purchaser all right, title and interest of the Company thereto
                  as
                  noteholder and mortgagee.

              

      

       

      
        	 	
                10.

              	
                The
                  endorsement of the Mortgage Notes, the delivery to the Purchaser,
                  or its
                  designee, of the Assignments of Mortgage, and the delivery of the
                  original
                  endorsed Mortgage Notes to the Purchaser, or its designee, are
                  sufficient
                  to permit the Purchaser to avail itself of all protection available
                  under
                  applicable law against the claims of any present or future creditors
                  of
                  the Company, and are sufficient to prevent any other sale, transfer,
                  assignment, pledge or hypothecation of the Mortgages and the Mortgage
                  Notes by the Company from being
                  enforceable.

              

      

       

      Except
        as
        otherwise set forth in the Agreements, I assume no obligation to revise this
        opinion or alter its conclusions to update or support this letter to reflect
        any
        facts or circumstances that may hereafter develop.

       

      This
        opinion is given to you for your sole benefit, and no other person or entity
        is
        entitled to rely hereon except that the purchaser or purchasers to which
        you
        initially and directly resell the Mortgage Loans may rely on this opinion
        as if
        it were addressed to them as of the date of this opinion. 

       

       

      
        	 	 	 
	 	
                Very
                  truly
                  yours,

              
	 
 	 
 	 
 
	 	 	 
	 	
                

              
	 	
                [Name]

                [Assistant]
                  General Counsel

              

      

       

       

      EXHIBIT
        E

       

      FORM
        OF SECURITY RELEASE CERTIFICATION

       

      

       

      

       

      

       

      ___________________,
        200__

       

      [Federal
        Home Loan Bank of

      ______
        (the “Association”)]

      ________________________

      ________________________

      ________________________

       

      
        
          
            	Attention:	
                    ___________________________

                    
                      ___________________________

                    

                  

          

        

      

       

      
        	
              	Re:	
                Notice
                  of Sale and Release of
                  Collateral

              

      

       

      Dear
        Sirs:

       

      This
        letter serves as notice that ________________________ [COMPANY] a [type of
        entity], organized pursuant to the laws of [the State of incorporation] (the
        “Company”)
        has
        committed to sell to Morgan Stanley Mortgage Capital Inc. under the Sixth
        Amended and Restated Mortgage Loan Purchase and Warranties Agreement, dated
        as
        of ______ __, 200_, certain mortgage loans originated by the Association.
        The
        Company warrants that the mortgage loans to be sold to Morgan Stanley Mortgage
        Capital Inc. are in addition to and beyond any collateral required to secure
        advances made by the Association to the Company.

       

      The
        Company acknowledges that the mortgage loans to be sold to Morgan Stanley
        Mortgage Capital Inc. shall not be used as additional or substitute collateral
        for advances made by the Association. Morgan Stanley Mortgage Capital Inc.
        understands that the balance of the Company’s mortgage loan portfolio may be
        used as collateral or additional collateral for advances made by the
        Association, and confirms that it has no interest therein.

       

      Execution
        of this letter by the Association shall constitute a full and complete release
        of any security interest, claim, or lien which the Association may have against
        the mortgage loans to be sold to Morgan Stanley Mortgage Capital
        Inc.

       

      Very
        truly yours,

       

      ____________________________

       

       

      By:__________________________

      Name:________________________

      Title:_________________________

      Date:_________________________

       

      Acknowledged
        and approved:

       

      [FEDERAL
        HOME LOAN BANK OF]

       

      __________________________

       

      By:______________________________

      Name:___________________________

      Title:____________________________

      Date:____________________________

       

       

      
        Exhibit
          F

         

      

       

       

      EXHIBIT
        F

       

      FORM
        OF SECURITY RELEASE CERTIFICATION

       

      I.  Release
        of Security Interest

       

      The
        financial institution named below hereby relinquishes any and all right,
        title,
        interest, lien or claim of any kind it may have in all mortgage loans described
        on the attached Schedule
        A
        (the
“Mortgage
        Loans”),
        to be
        purchased by Morgan Stanley Mortgage Capital Inc. from the company named
        on the
        next page (the “Company”)
        pursuant to that certain Sixth Amended and Restated Mortgage Loan Purchase
        and
        Warranties Agreement, dated as of ______ __, 200_, and certifies that all
        notes,
        mortgages, assignments and other documents in its possession relating to
        such
        Mortgage Loans have been delivered and released to the Company or its designees,
        as of the date and time of the sale of such Mortgage Loans to Morgan Stanley
        Mortgage Capital Inc. Such release shall be effective automatically without
        any
        further action by any party upon payment in one or more installments, in
        immediately available funds, of $_____________, in accordance with the wire
        instructions set forth below.

       

      Name
        and
        Address and Wire Instructions of Financial Institution

       

      ________________________________

      (Name)

       

      ________________________________

      (Address)

       

      By:_____________________________

       

      II.  Certification
        of Release

       

      The
        Company named below hereby certifies to Morgan Stanley Mortgage Capital Inc.
        that, as of the date and time of the sale of the above-mentioned Mortgage
        Loans
        to Morgan Stanley Mortgage Capital Inc. the security interests in the Mortgage
        Loans released by the above-named financial institution comprise all security
        interests relating to or affecting any and all such Mortgage Loans. The Company
        warrants that, as of such time, there are and will be no other security
        interests affecting any or all of such Mortgage Loans.

       

      _____________________________

       

      By:__________________________

      Title:_________________________

      Date:_________________________

      
 

      EXHIBIT
        G

       

      UNDERWRITING
        GUIDELINES

       

       

      EXHIBIT
        H

       

      FORM
        OF ASSIGNMENT AND CONVEYANCE AGREEMENT

       

      On
        this
        ___ day of __________, ____, ___________________ NC Capital Corporation
        (“Seller”),
        as
        the Seller under (i) that certain Purchase Price and Terms Agreement, dated
        as of ___________, _____ (the “PPTA”),
        and
        (ii) that certain Sixth Amended and Restated Mortgage Loan Purchase and
        Warranties Agreement, dated as of May 1, 2006 (the “Purchase
        Agreement”),
        does
        hereby sell, transfer, assign, set over and convey to Morgan Stanley Mortgage
        Capital Inc. (“Purchaser”)
        as the
        Purchaser under the Agreements (as defined below), without recourse, but
        subject
        to the terms of the Agreements, all right, title and interest of, in and to
        the Mortgage Loans listed on the Mortgage Loan Schedule attached hereto as
        Exhibit A
        (the
“Mortgage
        Loans”),
        together with the Servicing Rights, and the Mortgage Files and all rights
        and
        obligations arising under the documents contained therein. Each Mortgage
        Loan
        subject to the Agreements was underwritten in accordance with, and conforms
        to,
        the Underwriting Guidelines attached hereto as Exhibit
        C.
        Pursuant to Section 6 of the Purchase Agreement, the Seller has delivered
        to the Custodian the documents for each Mortgage Loan to be purchased as
        set
        forth in the Purchase Agreement. The contents of each Servicing File required
        to
        be retained by New Century Mortgage Corporation (“Servicer”),
        as
        Originator/Servicer under that certain Amended and Restated Interim Servicing
        Agreement, dated as of December 1, 2005 (the “Servicing
        Agreement”)
        to
        service the Mortgage Loans pursuant to the Servicing Agreement and thus not
        delivered to the Purchaser are and shall be held in trust by the Servicer
        for
        the benefit of the Purchaser as the owner thereof. The Servicer’s possession of
        any portion of the Servicing File is at the will of the Purchaser for the
        sole
        purpose of facilitating servicing of the related Mortgage Loan pursuant to
        the
        Servicing Agreement, and such retention and possession by the Servicer shall
        be
        in a custodial capacity only. The ownership of each Mortgage Note, Mortgage,
        the
        Servicing Rights and the contents of the Mortgage File and Servicing File
        is
        vested in the Purchaser and the ownership of all records and documents with
        respect to the related Mortgage Loan prepared by or which come into the
        possession of the Seller or the Servicer shall immediately vest in the Purchaser
        and shall be retained and maintained, in trust, by the Seller at the will
        of the
        Purchaser in such custodial capacity only. The PPTA, the Purchase Agreement
        and
        the Servicing Agreement shall collectively be referred to as the “Agreements”
herein.

       

      The
        Mortgage Loan Package characteristics of the Mortgage Loans subject hereto
        are
        set forth on Exhibit B
        hereto.

       

      In
        accordance with Section 6 of the Purchase Agreement, the Purchaser accepts
        the Mortgage Loans listed on Exhibit A
        attached
        hereto. Notwithstanding the foregoing the Purchaser does not waive any rights
        or
        remedies it may have under the Agreements.

       

      Capitalized
        terms used herein and not otherwise defined shall have the meanings set forth
        in
        the Purchase Agreement.

       

      [SIGNATURE
        PAGE FOLLOWS]

      
        	 	 	 
	 	
                [SELLER]

              
	 
 	 
 	 
 
	 	 	By:_______________________________________
	 	
              
	 	
                Name:_____________________________________

                 

                Title:______________________________________

              

      

       

      
        	 	 	 
	 	
                [SERVICER]

              
	 
 	 
 	 
 
	 	 	By:_______________________________________
	 	
              
	 	
                Name:_____________________________________

                 

                Title:______________________________________

              

      

       

       

      Accepted
        and Agreed:

       

      MORGAN
        STANLEY MORTGAGE CAPITAL INC.

      

      By:_______________________________

      

      Name:_____________________________

      

      Title:______________________________

       

      EXHIBIT
        A

      TO
        ASSIGNMENT AND CONVEYANCE AGREEMENT

       

      THE
        MORTGAGE LOANS

       

      EXHIBIT
        B

      TO
        ASSIGNMENT AND CONVEYANCE AGREEMENT

       

      REPRESENTATIONS
        AND WARRANTIES WITH RESPECT TO THE POOL 

      CHARACTERISTICS
        OF EACH MORTGAGE LOAN PACKAGE

       

      Pool
        Characteristics of the Mortgage Loan Package as delivered on the related
        Closing
        Date:

       

      No
        Mortgage Loan has: (1) an outstanding principal balance less than
        $_________; (2) an origination date earlier than __ months prior to the
        related Cut-off Date; (3) a CLTV of greater than _____%; (4) a FICO
        Score of less than ___; or (5) a debt-to-income ratio of more than __%.
        Each Mortgage Loan has a Mortgage Interest Rate of at least ___% per annum
        and
        an outstanding principal balance less than $_________. Each Adjustable Rate
        Mortgage Loan has an Index of [_______].

       

      EXHIBIT
        C

      TO
        ASSIGNMENT AND CONVEYANCE AGREEMENT

       

      UNDERWRITING
        GUIDELINES

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

     

    EXHIBIT
      V

    

    FORM
      OF ADDITIONAL DISCLOSURE NOTIFICATION

    

    **SEND
      VIA EMAIL TO DBSec.Notifications@db.com
      AND VIA OVERNIGHT MAIL TO THE ADDRESS IMMEDIATELY BELOW

    

    Deutsche
      Bank National Trust Company, as trustee

    1761
      St.
      Andrew Place

    Santa
      Ana, California 92705

    Email:
      DBSec.Notifications@db.com

    Attn.: Trust
      & Securities Services - MS07C1

    

    RE: **Additional
      Form [10-D] [10-K] [8-K] Disclosure** Required

    

    Ladies
      and Gentlemen:

    

    In
      accordance with Section 8.12 of the Pooling and Servicing Agreement (the
“Agreement”), dated as of January 1, 2007, among Morgan Stanley ABS Capital I
      Inc., as depositor, Saxon Mortgage Services, Inc., as a servicer (“Saxon”),
      Countrywide Home Loans Servicing LP, as a servicer (“Countrywide Servicing”;
      together with Saxon, the “Servicers”), NC Capital Corporation, as responsible
      party, and Deutsche Bank National Trust Company, as trustee, the undersigned,
      as
      [_________________________] hereby notifies you that certain events have come
      to
      our attention that we are required to report to you for disclosure on Form
      [10-D] [10-K] [8-K].

     

    Description
      of additional Form [10-D] [10-K] [8-K] Disclosure:

     

    List
      of
      any attachments hereto to be included in the Additional Form [10-D] [10-K]
      [8-K] Disclosure:

     

    Each
      of
      the attachments hereto is being transmitted to the Trustee in an
      EDGAR-compatible format.

     

    Any
      inquiries related to this notification should be directed to [_________________]
      phone number [___________________]; email address
      [______________________].

     

    

    
      	 	[NAME OF PARTY],
	 	As [Role]
	 	 
	 	By:_____________________________
	 	Name:
	 	 

    

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      W-1

    

    FORM
      OF
      SAXON SERVICER REPORTS

    

    (Available
      upon request)

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      W-2

    

    FORM
      OF
      COUNTRYWIDE SERVICING SERVICER REPORTS

    

    (Available
      upon request)

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      X

    

    FORM
      OF
      COUNTRYWIDE AMENDMENT TO REGULATION AB

    

    Capitalized
      terms used in this Exhibit X, but not defined in this Exhibit X shall have
      the
      meanings given to such terms in this Agreement, except the term “Mortgage Loan”
shall mean “Mortgage Loan” as defined in this Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      Y

    

    REPRESENTATIONS
      AND WARRANTIES AGREEMENT

     

    
      REPRESENTATIONS
        AND WARRANTIES
        AGREEMENT

       

      This
        REPRESENTATIONS AND WARRANTIES AGREEMENT (this “Agreement”),
        dated
        as of January 26, 2007 (the “Closing
        Date”),
        is
        between MORGAN STANLEY MORTGAGE CAPITAL INC. (the “Sponsor”)
        and
        MORGAN STANLEY ABS CAPITAL I INC. (the “Depositor”).

       

      W
        I T
        N E S S E T H:

       

      WHEREAS,
        the Sponsor acquired certain mortgage loans (the “Mortgage
        Loans”)
        set
        forth on the mortgage loan schedule attached hereto as Schedule I (the
“Mortgage
        Loan Schedule”)
        from
        various mortgage loan sellers pursuant to certain purchase
        agreements;

       

      WHEREAS,
        the Sponsor subsequently sold certain of the Mortgage Loans (the “MSSA Mortgage
        Loans”) to Morgan Stanley Securitized Assets LLC (“MSSA”);

       

      WHEREAS,
        pursuant to that certain bill of sale, dated as of the Closing Date, between
        MSSA and the Depositor, the MSSA Mortgage Loans are to be transferred by
        MSSA to
        the Depositor;

       

      WHEREAS,
        pursuant to that certain bill of sale, dated as of the Closing Date, between
        the
        Sponsor and the Depositor, the remaining Mortgage Loans are to be transferred
        by
        the Sponsor to the Depositor;

       

      WHEREAS,
        pursuant to that certain Pooling and Servicing Agreement, dated as of January
        1,
        2007 (the “Pooling
        and Servicing Agreement”),
        among
        the Depositor, Countrywide Home Loans Servicing LP, as a servicer (“Countrywide
        Servicing”),
        Saxon
        Mortgage Services, Inc., as a servicer (“Saxon”,
        together with Countrywide Servicing, the “Servicers”),
        NC
        Capital Corporation, as responsible party (the “Responsible
        Party”)
        and
        Deutsche Bank National Trust Company, as a trustee, (the “Trustee”),
        Morgan Stanley ABS Capital I Inc. Trust 2007-NC1 (the “Trust”)
        shall
        issue its Mortgage Pass-Through Certificates, Series 2007-NC1 (the “Certificates”),
        representing beneficial ownership interest in a trust, the assets of which
        include, but are not limited to, the Mortgage Loans transferred by the Depositor
        to the Trust pursuant to the Pooling and Servicing Agreement;

       

      WHEREAS,
        in connection with the sale of the Mortgage Loans by the Sponsor and MSSA
        to the
        Depositor, the Sponsor shall make various representations and warranties
        to the
        Depositor regarding the Mortgage Loans;

       

      NOW,
        THEREFORE, in consideration of the foregoing and of the mutual covenants
        herein
        contained, the receipt and sufficiency of which are hereby acknowledged,
        the
        parties hereto hereby agree as follows:

       

      Section
        1.  Defined
        Terms.

       

      Capitalized
        terms used and not defined herein shall have the meanings assigned to such
        terms
        in the Pooling and Servicing Agreement.

       

      Section
        2.  Representations
        and Warranties of the Sponsor.

       

      The
        Sponsor represents and warrants to the Depositor as of the date hereof
        that:

       

      (a)  No
        Mortgage Loan is a “High Cost Loan” or “Covered Loan”, as applicable (as such
        terms are defined in the then current Standard & Poor’s LEVELS® Glossary
        Appendix E).

       

      (b)  No
        Mortgage Loan originated on or after October 1, 2002 through March 6, 2003
        is
        governed by the Georgia Fair Lending Act.

       

      Section
        3.  Assignment
        and Assumption of EPD Provision.

       

      (a) The
        Sponsor hereby assigns, conveys, transfers and sets over to the Depositor
        all of
        the Sponsor’s right, title and interest (except as otherwise set forth in
        Section 3(b) below) in, to and under the Sponsor’s rights to require any
        Responsible Party to repurchase a Mortgage Loan as a result of a scheduled
        payment of principal and interest not being made during the period of time
        specified in the third full paragraph (the “EPD Provision”) under the heading
“Purchase Agreement” in each of the letter agreements listed on Schedule II
        attached hereto (each a “Purchase Price and Terms Agreement”) between the
        Sponsor and the applicable Responsible Party, but only to the extent such
        provision relates to any Mortgage Loans that are the subject of this Agreement.
        

       

      (b) Notwithstanding
        the foregoing set forth in Section 3(a), the Sponsor specifically reserves
        and
        does not assign to the Depositor any and all right, title and interest in,
        to
        and under the right to receive as part of the repurchase price for any such
        Mortgage Loan repurchased pursuant to any EPD Provision the excess (the
“Repurchase Premium”) of the Purchase Price Percentage (as defined in the
        applicable Purchase Price and Terms Agreement) over 100% multiplied by the
        unpaid principal balance of such Mortgage Loan. In the event any Mortgage
        Loan
        is required to be repurchased by the applicable Responsible Party pursuant
        to
        the provisions of the applicable Purchase Price and Terms Agreement specified
        in
        Section 3(a) above, the Depositor shall require the applicable Responsible
        Party
        to repurchase such Mortgage Loan at the Repurchase Price (as defined in such
        Purchase Price and Terms Agreement), and the Depositor shall cause the
        applicable Responsible Party to pay such Repurchase Premium to the Sponsor
        or
        its designee as instructed by the Sponsor. 

       

      Section
        4.  Remedies
        for Breach of Representations and Warranties of the Sponsor; the Repurchase
        Price.

       

      (a)  Within
        ninety (90) days of the earlier of either discovery by or notice to the Sponsor
        of any breach of a representation or warranty set forth in Section
        2
        of this
        Agreement that materially and adversely affects the value of any Mortgage
        Loan
        or the interest of the Trustee or the holders of the Certificates therein,
        the
        Sponsor shall use its best efforts to promptly cure such breach in all material
        respects and, if such breach cannot be remedied, the Sponsor shall repurchase
        such Mortgage Loan at a repurchase price (the “Repurchase
        Price”)
        equal
        to the sum of: (i) the unpaid principal balance of such Mortgage Loan as
        of the
        date of repurchase, (ii) interest on such unpaid principal balance of such
        Mortgage Loan at the mortgage interest rate of such Mortgage Loan from the
        last
        date through which interest has been paid and distributed to the Trustee
        to the
        date of repurchase, (iii) all unreimbursed Servicing Advances (as defined
        in the
        Pooling and Servicing Agreement), (iv) all costs and expenses incurred by
        the
        Trustee arising out of or based upon such breach, including without limitation,
        costs and expenses relating to the Trustee’s enforcement of the repurchase
        obligation of the Sponsor under this Agreement, and (v) any costs and
        damages incurred by the Trust in connection with any violation by such Mortgage
        Loan of any predatory lending law or abusive lending law. Any repurchase
        of a
        Mortgage Loan pursuant to the foregoing provisions of this Section 3
        shall be
        accomplished by direct remittance of the Repurchase Price to the Depositor
        or
        its designee in accordance with the Depositor’s instructions.

       

      (b)  At
        the
        time of repurchase, the Depositor and the Sponsor shall arrange for the
        reassignment of the repurchased Mortgage Loan to the Sponsor and the delivery
        to
        the Sponsor of any documents held by the Trustee, relating to the repurchased
        Mortgage Loan. In the event of a repurchase, the Sponsor shall, simultaneously
        with such reassignment, give written notice to the Depositor that such
        repurchase has taken place and amend the Mortgage Loan Schedule to reflect
        the
        withdrawal of the repurchased Mortgage Loan from this Agreement.

       

      (c)  Any
        cause
        of action against the Sponsor relating to or arising out of the breach of
        any
        representations and warranties made in Section
        2
        shall
        accrue as to any Mortgage Loan upon (i) discovery of such breach by the
        Depositor or notice thereof by the Sponsor to the Depositor, (ii) failure
        by the Sponsor to cure such breach, repurchase such Mortgage Loan as specified
        above, and (iii) demand upon the Sponsor by the Depositor for compliance
        with this Agreement.

       

      (d)  It
        is
        understood and agreed that the obligation of the Sponsor set forth in
Section 4(a)
        to
        repurchase for a Mortgage Loan in breach of a representation or warranty
        contained in Section
        2
        constitutes the sole remedy of the Depositor or any other person or entity
        with
        respect to such breach.

       

      (e)  The
        representations and warranties of the Sponsor set forth in Section 2
        shall
        inure to the benefit of the Depositor and its successors and assigns until
        all
        amounts payable to the holders of the Certificates under the Pooling and
        Servicing Agreement have been paid in full.

       

      Section
        5.  Execution
        in Counterparts.

       

      This
        Agreement may be executed in any number of counterparts and by different
        parties
        hereto on separate counterparts, each of which counterparts, when so executed
        and delivered, shall be deemed to be an original and all of which counterparts,
        taken together, shall constitute but one and the same Agreement.

       

      Section
        6.  GOVERNING
        LAW.

       

      THIS
        AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
        OF
        THE STATE OF NEW YORK WITHOUT REGARDS TO CONFLICTS OF LAWS
        PRINCIPLES.

       

      Section
        7.  Severability
        of Provisions.

       

      Any
        provision of this Agreement which is prohibited or unenforceable in any
        jurisdiction shall, as to such jurisdiction, be ineffective to the extent
        of
        such prohibition or unenforceability without invalidating the remaining
        provisions hereof or affecting the validity or enforceability of such provision
        in any other jurisdiction.

       

      Section
        8.  Captions.

       

      The
        captions in this Agreement are for convenience of reference only and shall
        not
        define or limit any of the terms or provisions hereof.

       

      Section
        9.  Successors
        and Assigns.

       

      This
        Agreement shall inure to the benefit of the parties hereto and their respective
        successors and assigns. Any entity into which the Sponsor or the Depositor
        may
        be merged or consolidated shall, without the requirement for any further
        writing, be deemed the Sponsor or the Depositor, respectively,
        hereunder.

      

      Section
        10.  Amendments

       

      This
        Agreement may be amended from time to time by the parties hereto.

       

      

       

       

      [Remainder
        of this Page Intentionally Left Blank.]

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
        as
        of the date and year first above written.

       

      
        	 	 	 	 	 	 	 	
                MORGAN
                  STANLEY MORTGAGE CAPITAL INC.

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	
                 

              
	 	 	 	 	 	 	 	
                Name:

              	
                 

              
	 	 	 	 	 	 	 	
                Title:

              	
                 

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                MORGAN
                  STANLEY ABS CAPITAL I INC.

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	
                 

              
	 	 	 	 	 	 	 	
                Name:

              	
                 

              
	 	 	 	 	 	 	 	
                Title:

              	
                 

              

      

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      SCHEDULE
        I

       

      Mortgage
        Loan Schedule

       

      (Delivered
        to the Trustee and not attached to the Pooling and Servicing
        Agreement)

       

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        II

       

      List
        of
        Purchase Price and Terms Agreements

       

      
        	1.  	
                Purchase
                  Price and Terms Agreement dated August 25, 2006 among Morgan Stanley
                  Mortgage Capital Inc., NC Capital Corporation and New Century Mortgage
                  Corporation.

              

      

       

      
        	2.  	
                Purchase
                  Price and Terms Agreement dated July 24, 2006 among Morgan Stanley
                  Mortgage Capital Inc., NC Capital Corporation and New Century Mortgage
                  Corporation.

              

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      Z

    

    INTEREST
      RATE CAP AGREEMENT

     

    
       

      
        
          	
                  

                	
                  EXECUTION
                    COPY

                

        

        

      

       

      

        
          	
                  DATE:

                	
                  January
                    26, 2007

                
	 	 
	
                  TO:

                	
                  Deutsche
                    Bank National Trust Company, not individually, but solely as
                    Trustee on
                    behalf of the Supplemental Interest Trust with respect to Morgan
                    Stanley
                    ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through Certificates,
                    Series 2007-NC1

                
	
                  ATTENTION:

                	
                  Trust
                    Administration - MS07C1

                
	
                  TELEPHONE:

                	
                  (714)
                    247-6000

                
	
                  FACSIMILE:

                	
                  (714)
                    656-2626

                
	 	 
	
                  FROM:

                	
                  New
                    York Derivative Client Services Group

                
	
                  TELEPHONE:

                	
                  (212)
                    761-2996

                
	
                  FACSIMILE:

                	
                  (646)
                    202-9190

                
	 	 
	
                  SUBJECT:

                	
                  Fixed
                    Income Derivatives Confirmation

                
	 	 
	
                  REFERENCE
                    NUMBER:

                	
                  HR3HY

                

        

        The
          purpose of this letter agreement (this “Confirmation”)
          is to
          confirm the terms and conditions of the Swap Transaction entered into on
          the
          Trade Date specified below (the “Transaction”)
          between Morgan Stanley Capital Services Inc. (“Party
          A”)
          and
          Deutsche Bank National Trust Company, not individually, but solely as Trustee
          (the “Trustee”)
          under
          the Pooling and Servicing Agreement, dated and effective as of January
          1, 2007,
          among Morgan Stanley ABS Capital I Inc., as Depositor, Deutsche Bank National
          Trust Company, as Trustee, Saxon Mortgage Services, Inc., as Servicer,
          Countrywide Home Loans Servicing LP, as Servicer, and NC Capital Corporation,
          as
          Responsible Party (the “PSA”)
          for
          the Morgan Stanley ABS Capital I Inc. Trust 2007-NC1, Mortgage Pass-Through
          Certificates, Series 2007-NC1 (“Party
          B”).

         

        The
          definitions and provisions contained in the 2000 ISDA Definitions (the
          “Definitions”),
          as
          published by the International Swaps and Derivatives Association, Inc.,
          are
          incorporated into this Confirmation. In the event of any inconsistency
          between
          the Definitions and this Confirmation, this Confirmation will govern. Terms
          capitalized but not defined in this Confirmation (including the Definitions)
          have the meanings attributed to them in the PSA.

         

        This
          Confirmation constitutes a “Confirmation” as referred to in, and supplements,
          forms part of and is subject to, the ISDA Master Agreement dated as of
          January
          26, 2007, as amended and supplemented from time to time (the “Agreement”),
          between Party A and Party B. All provisions contained in the Agreement
          govern
          this Confirmation except as expressly modified below.

         

        	1.  	
                The
                  terms of the particular Transaction to which this Confirmation
                  relates are
                  as follows:

              

         

        
          	 	
                  Notional
                    Amount:

                	 	
                  With
                    respect to any Calculation Period, the notional amount set forth
                    for such
                    Calculation Period in Schedule I attached
                    hereto.

                

        

         

        
          	 	
                  Trade
                    Date:

                	 	
                  January
                    24, 2007

                

        

         

        
          	 	
                  Effective
                    Date:

                	 	
                  January
                    26, 2007

                

        

         

        
          	 	
                  Termination
                    Date:

                	 	
                  December
                    25, 2007

                

        

         

        Fixed
          Amounts:

         

        
          	 	
                  Fixed
                    Rate Payer:

                	 	
                  Party
                    B

                

        

         

        
          	 	
                  Fixed
                    Rate Payer Payment Dates:

                	 	
                  January
                    26, 2007

                

        

         

        
          	 	
                  Fixed
                    Amount:

                	 	
                  None

                

        

         

        Floating
          Amounts:

         

        
          	 	
                  Floating
                    Rate Payer:

                	 	
                  Party
                    A

                

        

         

        
          	 	
                  Cap
                    Rate:

                	 	
                  7.35%

                

        

         

        Floating
          Rate Payer Payment

        
          	 	
                  Dates:

                	 	
                  Early
                    Payment—For each Calculation Period, the first Business Day prior to
                    each
                    Floating Rate Payer Period End
                    Date.

                

        

         

        Floating
          Rate Payer Period End

        
          	 	
                  Dates:

                	 	
                  The
                    25th
                    calendar day of each month during the Term of this Transaction,
                    commencing
                    February 25, 2007, subject to adjustment in accordance with the
                    Business
                    Day Convention.

                

        

         

        
          	 	
                  Floating
                    Rate Option:

                	 	
                  USD-LIBOR-BBA

                

        

         

        
          	 	
                  Floating
                    Amount:

                	 	
                  To
                    be determined in accordance with the following
                    formula:

                

        

         

        10
          *
          Floating Rate * Notional Amount * Floating Rate Day Count
          Fraction.

         

        
          	 	
                  Designated
                    Maturity:

                	 	
                  One
                    month

                

        

         

        
          	 	
                  Floating
                    Rate Day Count Fraction:

                	 	
                  Actual/360

                

        

         

        
          	 	
                  Reset
                    Dates:

                	 	
                  The
                    first day of each Calculation
                    Period.

                

        

         

        
          	 	
                  Compounding:

                	 	
                  Inapplicable

                

        

         

        
          	 	
                  Business
                    Days:

                	 	
                  New
                    York and Los Angeles

                

        

         

        
          	 	
                  Business
                    Day Convention:

                	 	
                  Following

                

        

         

        	2.  	
                Account
                  Details and Settlement Information:

              

        

        Payment
          to Party A:

        

        Citibank,
          New York

        ABA
          No.:
          021 000 089

        Account
          No.: 4072-4601

        Account
          Name: Morgan Stanley Capital Services Inc.

        

        Payments
          to Party B:

        

        Deutsche
          Bank

        ABA
          No.:
          021001033

        Account
          No: 01419663

        Acct
          Name: NYLTD Funds Control - Stars West

        Ref:
          Morgan Stanley ABS Capital I Inc. Trust 2007-NC1 (cap)

         

        	3.  	
                Trustee
                  Capacity.
                  It is expressly understood and agreed by the parties hereto that
                  insofar
                  as this Confirmation is executed by Deutsche Bank National Trust
                  Company
                  (i) this Confirmation is executed and delivered by Deutsche Bank
                  National
                  Trust Company not in its individual capacity but solely as Trustee
                  of the
                  Trust under the PSA in the exercise of the powers and authority
                  conferred
                  and invested in it as trustee thereunder, (ii) each of the
                  representations, undertakings and agreements herein made on behalf
                  of
                  Party B is made and intended not as personal representations of
                  the
                  Trustee but is made and intended for the purpose of binding only
                  the
                  Trust, and (iii) under no circumstances shall Deutsche Bank National
                  Trust
                  Company in its individual capacity be personally liable for the
                  payment of
                  any indebtedness or expenses or be personally liable for the breach
                  or
                  failure of any obligation, representation, warranty or covenant
                  made or
                  undertaken under this Confirmation.

              

         

        	4.  	
                Modifications
                  to the Agreement.
                  For purposes of this Transaction only, the Agreement is modified
                  as
                  follows: Part 1(f)(ii), Part 1(h)(A) and Part 5(f) of the Schedule
                  to the
                  ISDA Master Agreement are hereby deleted in their
                  entirety.

              

         

         

        
 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        We
          are
          very pleased to have entered into this Transaction with you and we look
          forward
          to completing other transactions with you in the near future.

         

         

        
          	 	
                  Very
                    truly yours,

                
	 	 	 
	 	
                  MORGAN
                    STANLEY CAPITAL SERVICES INC.

                
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Name:
	 	Title:

        

         

         

        Party
          B,
          acting through its duly authorized signatory, hereby agrees to, accepts
          and
          confirms the terms of the foregoing as of the Trade Date.

         

        
          	 	 	 
	 	
                  DEUTSCHE
                    BANK NATIONAL TRUST COMPANY,
                    not individually, but solely as Trustee on behalf of the Supplemental
                    Interest Trust with respect to Morgan Stanley ABS Capital I Inc.
                    Trust
                    2007-NC1, Mortgage Pass-Through Certificates, Series
                    2007-NC1

                
	 
 	 
 	 
 
	 	By:  	 
	 	
                  

                  Name:

                
	 	Title:

        

         

         

        

 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        SCHEDULE
          I

        
 

        
          	
                  Line

                	 	
                  Calculation
                    Period

                	 	
                  Notional
                    Amount ($)

                	 	
                  Multiplier

                
	
                  1

                	 	
                  Effective
                    Date

                	
                  2/25/2007

                	 	
                  120,000,764.32

                	 	
                  10

                
	
                  2

                	 	
                  2/25/2007

                	
                  3/25/2007

                	 	
                  115,491,029.43

                	 	
                  10

                
	
                  3

                	 	
                  3/25/2007

                	
                  4/25/2007

                	 	
                  111,122,782.50

                	 	
                  10

                
	
                  4

                	 	
                  4/25/2007

                	
                  5/25/2007

                	 	
                  106,888,765.93

                	 	
                  10

                
	
                  5

                	 	
                  5/25/2007

                	
                  6/25/2007

                	 	
                  102,782,321.68

                	 	
                  10

                
	
                  6

                	 	
                  6/25/2007

                	
                  7/25/2007

                	 	
                  98,797,372.59

                	 	
                  10

                
	
                  7

                	 	
                  7/25/2007

                	
                  8/25/2007

                	 	
                  94,928,406.05

                	 	
                  10

                
	
                  8

                	 	
                  8/25/2007

                	
                  9/25/2007

                	 	
                  91,170,445.47

                	 	
                  10

                
	
                  9

                	 	
                  9/25/2007

                	
                  10/25/2007

                	 	
                  87,519,034.58

                	 	
                  10

                
	
                  10

                	 	
                  10/25/2007

                	
                  11/25/2007

                	 	
                  83,970,207.54

                	 	
                  10

                
	
                  11

                	 	
                  11/25/2007

                	
                  Termination
                    Date

                	 	
                  80,520,482.29

                	 	
                  10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]