Document:

Unassociated Document

    Form
      of Sale and Servicing Agreement

     

     

    
      

      

    

     

     

    THORNBURG
      MORTGAGE SECURITIES TRUST [     ],

    Issuer

    

    THORNBURG
      MORTGAGE HOME LOANS, INC.,

    Initial
      Seller and Sponsor

    

    THORNBURG
      MORTGAGE FUNDING, INC.,

    Seller
      

    

    THORNBURG
      MORTGAGE SECURITIES CORPORATION,

    Depositor

    

    [     ],

    Master
      Servicer and

    Securities
      Administrator

    

    and

    

    [     ],

    Indenture
      Trustee and Custodian

    

     

    SALE
      AND
      SERVICING AGREEMENT

     

    Dated
      as
      of [     ]

     

    __________________________________

     

    Thornburg
      Mortgage Securities Trust [     ]

    Mortgage-Backed
      Notes, Series [     ]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Table
      of Contents

    Page

     

    
      	
              ARTICLE
                I DEFINITIONS

            	
              3

            
	 	 
	
              SECTION
                1.01. Defined Terms.

            	
              3

            
	
              SECTION
                1.02. Accounting.

            	
              43

            
	 	 
	
              ARTICLE
                II CONVEYANCE OF MORTGAGE LOANS;

            	
              43

            
	 	 
	
              SECTION
                2.01. Conveyance of Mortgage Loans.

            	
              43

            
	
              SECTION
                2.02. Acceptance of the Trust Estate; Review of
                Documentation.

            	
              48

            
	
              SECTION
                2.03. Grant Clause

            	
              49

            
	
              SECTION
                2.04. Repurchase or Substitution of Mortgage Loans by the
                Seller.

            	
              51

            
	
              SECTION
                2.05. Representations and Warranties of the Sellers with Respect
                to the
                Mortgage Loans.

            	
              54

            
	
              SECTION
                2.06. Representations and Warranties of the Depositor.

            	
              55

            
	
              SECTION
                2.07. Representations and Warranties of the Depositor with Respect
                to
                Security Interest in the Mortgage Loans

            	
              56

            
	
              SECTION
                2.08. Representations and Warranties of the Sellers.

            	
              57

            
	
              SECTION
                2.09. Covenants of the Sellers.

            	
              60

            
	 	 
	
              ARTICLE
                III ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS

            	
              60

            
	 	 
	
              SECTION
                3.01. Master Servicer to Service and Administer the Mortgage
                Loans.

            	
              61

            
	
              SECTION
                3.02. [Reserved].

            	
              62

            
	
              SECTION
                3.03. Monitoring of Servicers.

            	
              62

            
	
              SECTION
                3.04. Fidelity Bond.

            	
              64

            
	
              SECTION
                3.05. Power to Act; Procedures.

            	
              64

            
	
              SECTION
                3.06. Due-on-Sale Clauses; Assumption Agreements.

            	
              65

            
	
              SECTION
                3.07. Release of Mortgage Files.

            	
              65

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

            	
              66

            
	
              SECTION
                3.09. Standard Hazard Insurance and Flood Insurance
                Policies.

            	
              67

            
	
              SECTION
                3.10. Presentment of Claims and Collection of Proceeds.

            	
              67

            
	
              SECTION
                3.11. Maintenance of the Primary Insurance Policies.

            	
              67

            
	
              SECTION
                3.12. Indenture Trustee to Retain Possession of Certain Insurance
                Policies
                and Documents.

            	
              68

            
	
              SECTION
                3.13. Realization Upon Defaulted Mortgage Loans.

            	
              68

            
	
              SECTION
                3.14. Additional Compensation to the Master Servicer.

            	
              69

            
	
              SECTION
                3.15. REO Property.

            	
              69

            
	
              SECTION
                3.16. Assessments of Compliance and Attestation Reports.

            	
              70

            
	
              SECTION
                3.17. Annual Compliance Statement.

            	
              72

            
	
              SECTION
                3.18. Sarbanes-Oxley Certification.

            	
              73

            
	
              SECTION
                3.19. Reports Filed with Securities and Exchange
                Commission.

            	
              73

            
	
              SECTION
                3.20. Additional Information.

            	
              79

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                3.21. Intention of the Parties and Interpretation.

            	
              79

            
	
              SECTION
                3.22. Indemnification.

            	
              80

            
	
              SECTION
                3.23. Amendments to Master Servicing Guide and Correspondent Sellers
                Guide.

            	
              81

            
	
              SECTION
                3.24. Uniform Commercial Code.

            	
              81

            
	
              SECTION
                3.25. Optional and Required Purchases of Certain Mortgage
                Loans.

            	
              81

            
	
              SECTION
                3.26. Realization upon Troubled Mortgage Loans.

            	
              82

            
	
              SECTION
                3.27. Closing Certificate and Opinion.

            	
              82

            
	
              SECTION
                3.28. Liabilities of the Master Servicer.

            	
              83

            
	
              SECTION
                3.29. Merger or Consolidation of the Master Servicer.

            	
              83

            
	
              SECTION
                3.30. Indemnification of the Initial Seller, the Seller, the Indenture
                Trustee, the Owner Trustee, the Master Servicer and the Securities
                Administrator.

            	
              83

            
	
              SECTION
                3.31. Limitations on Liability of the Master Servicer and Others;
                Indemnification of Indenture Trustee and Others.

            	
              84

            
	
              SECTION
                3.32. Master Servicer Not to Resign.

            	
              85

            
	
              SECTION
                3.33. Successor Master Servicer.

            	
              85

            
	
              SECTION
                3.34. Sale and Assignment of Master Servicing.

            	
              86

            
	 	 
	
              ARTICLE
                IV ACCOUNTS

            	
              87

            
	 	 
	
              SECTION
                4.01. Servicing Accounts.

            	
              87

            
	
              SECTION
                4.02. Collection Account.

            	
              88

            
	
              SECTION
                4.03. Permitted Withdrawals and Transfers from the Collection
                Account.

            	
              90

            
	
              SECTION
                4.04. The Note Payment Account.

            	
              92

            
	
              SECTION
                4.05. The Certificate Distribution Account

            	
              93

            
	
              SECTION
                4.06. The Reserve Fund; The Group [   ] Final Maturity
                Reserve Account

            	
              93

            
	
              SECTION
                4.07. The Collateral Account

            	
              95

            
	
              SECTION
                4.08. Control of the Trust Accounts

            	
              95

            
	 	 
	
              ARTICLE
                V FLOW OF FUNDS

            	
              98

            
	 	 
	
              SECTION
                5.01. Payments.

            	
              98

            
	
              SECTION
                5.02. [Reserved].

            	
              102

            
	
              SECTION
                5.03. Allocation of Realized Losses.

            	
              102

            
	
              SECTION
                5.04. Statements.

            	
              103

            
	
              SECTION
                5.05. Remittance Reports; Advances.

            	
              106

            
	
              SECTION
                5.06. Compensating Interest Payments.

            	
              107

            
	
              SECTION
                5.07. [Reserved].

            	
              107

            
	
              SECTION
                5.08. [Reserved].

            	
              107

            
	
              SECTION
                5.09. Yield Maintenance Amounts.

            	
              107

            
	
              SECTION
                5.10. Subsequent Recoveries.

            	
              108

            
	 	 
	
              ARTICLE
                VI [Reserved]

            	
              108

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              ARTICLE
                VII DEFAULT

            	
              108

            
	 	 
	
              SECTION
                7.01. Event of Default.

            	
              108

            
	
              SECTION
                7.02. Indenture Trustee to Act.

            	
              111

            
	
              SECTION
                7.03. Waiver of Event of Default.

            	
              112

            
	
              SECTION
                7.04. Notification to Securityholders.

            	
              112

            
	
              SECTION
                7.05. Action Upon Master Servicer Event of Default.

            	
              113

            
	
              SECTION
                7.06. Additional Remedies of Indenture Trustee Upon Event of
                Default.

            	
              113

            
	 	 
	
              ARTICLE
                VIII THE INDENTURE TRUSTEE AND THE SECURITIES
                ADMINISTRATOR

            	
              113

            
	 	 
	
              SECTION
                8.01. Duties of Indenture Trustee and Securities
                Administrator.

            	
              113

            
	
              SECTION
                8.02. Certain Matters Affecting the Indenture Trustee and the Securities
                Administrator.

            	
              115

            
	
              SECTION
                8.03. Indenture Trustee and the Securities Administrator Not Liable
                for
                Securities, Mortgage Loans or Additional Collateral.

            	
              116

            
	
              SECTION
                8.04. Owner Trustee, Master Servicer and Securities Administrator
                May Own
                Notes.

            	
              118

            
	
              SECTION
                8.05. Indenture Trustee’s, Custodian’s, Owner Trustee’s and Securities
                Administrator’s Fees and Expenses.

            	
              118

            
	
              SECTION
                8.06. Eligibility Requirements for Indenture Trustee and Securities
                Administrator.

            	
              118

            
	
              SECTION
                8.07. Resignation or Removal of the Indenture Trustee or the Securities
                Administrator.

            	
              119

            
	
              SECTION
                8.08. Successor Securities Administrator.

            	
              120

            
	
              SECTION
                8.09. Merger or Consolidation of Indenture Trustee or Securities
                Administrator.

            	
              121

            
	
              SECTION
                8.10. [Reserved].

            	
              121

            
	
              SECTION
                8.11. [Reserved].

            	
              121

            
	
              SECTION
                8.12. Trustee May Enforce Claims Without Possession of
                Notes.

            	
              121

            
	
              SECTION
                8.13. Suits for Enforcement.

            	
              122

            
	
              SECTION
                8.14. Waiver of Bond Requirements.

            	
              122

            
	
              SECTION
                8.15. Waiver of Inventory, Accounting and Appraisal
                Requirement.

            	
              122

            
	
              SECTION
                8.16. Appointment of Custodian.

            	
              122

            
	
              SECTION
                8.17. Auction Administration Agreement; Auction Swap
                Agreement.

            	
              123

            
	
              SECTION
                8.18. Yield Maintenance Counterparty Tax Form.

            	
              123

            
	 	 
	
              ARTICLE
                IX [Reserved]

            	
              124

            
	 	 
	
              ARTICLE
                X TERMINATION

            	
              124

            
	 	 
	
              SECTION
                10.01. Termination; Clean-Up Call.

            	
              124

            
	
              SECTION
                10.02. [Reserved].

            	
              125

            
	
              SECTION
                10.03. Optional Purchase of Notes.

            	
              125

            
	 	 
	
              ARTICLE
                XI [Reserved]

            	
              126

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    
      	
              ARTICLE
                XII MISCELLANEOUS PROVISIONS

            	
              126

            
	 	 
	
              SECTION
                12.01. Amendment.

            	
              126

            
	
              SECTION
                12.02. Recordation of Agreement; Counterparts.

            	
              128

            
	
              SECTION
                12.03. [Reserved].

            	
              129

            
	
              SECTION
                12.04. Governing Law; Jurisdiction.

            	
              129

            
	
              SECTION
                12.05. Notices.

            	
              129

            
	
              SECTION
                12.06. Severability of Provisions.

            	
              130

            
	
              SECTION
                12.07. Article and Section References.

            	
              130

            
	
              SECTION
                12.08. Notice to the Rating Agencies.

            	
              130

            
	
              SECTION
                12.09. Further Assurances.

            	
              131

            
	
              SECTION
                12.10. Benefits of Agreement.

            	
              131

            
	
              SECTION
                12.11. [Reserved].

            	
              131

            
	
              SECTION
                12.12. Successors and Assigns.

            	
              131

            
	
              SECTION
                12.13. [Reserved].

            	
              131

            
	
              SECTION
                12.14. Execution by the Issuer.

            	
              131

            
	 	 
	
              Aggregate
                Scheduled Principal Balance of Group [   ] Forty-Year
                Mortgage Loans

            	
              1

            

    

    

    EXHIBITS
      AND SCHEDULES:

     

    
      	
              Exhibit
                A

            	
              [Reserved]

            	
              A-1

            
	
              Exhibit
                B

            	
              [Reserved]

            	
              B-2

            
	
              Exhibit
                C

            	
              [Reserved]

            	
              C-1

            
	
              Exhibit
                D

            	
              [Reserved]

            	
              D-1

            
	
              Exhibit
                E

            	
              [Reserved]

            	
              E-1

            
	
              Exhibit
                F

            	
              Request
                for Release

            	
              F-1

            
	
              Exhibit
                G-1

            	
              Form
                of Receipt of Mortgage Note

            	
              G-1-1

            
	
              Exhibit
                G-2

            	
              Form
                of Interim Certificate of Indenture Trustee

            	
              G-2-1

            
	
              Exhibit
                G-3

            	
              Form
                of Final Certification of Indenture Trustee

            	
              G-3-1

            
	
              Exhibit
                H

            	
              Form
                of Lost Note Affidavit

            	
              H-1

            
	
              Exhibit
                I

            	
              [Reserved]

            	
              I-1

            
	
              Exhibit
                J-1

            	
              [Reserved]

            	
              J-1-1

            
	
              Exhibit
                J-2

            	
              [Reserved]

            	
              J-2-1

            
	
              Exhibit
                K

            	
              [Reserved]

            	
              K-1

            
	
              Exhibit
                L

            	
              [Reserved]

            	
              L-1

            
	
              Exhibit
                M

            	
              Form
                of Certificate of Trust

            	
              M-1

            
	
              Exhibit
                N

            	
              List
                of Servicers and Servicing Agreements

            	
              N-1

            
	
              Exhibit
                O

            	
              Notice
                of Exercise of Optional Notes Purchase Right

            	
              O-1

            
	
              Exhibit
                P

            	
              [Reserved]

            	
              P-1

            
	
              Exhibit
                Q

            	
              Servicing
                Criteria

            	
              Q-1

            
	
              Exhibit
                R

            	
              Additional
                Form 10-D Disclosure

            	
              R-1

            
	
              Exhibit
                S

            	
              Additional
                Form 10-K Disclosure

            	
              S-1

            
	
              Exhibit
                T

            	
              Form
                8-K Disclosure Information

            	
              T-1

            
	
              Exhibit
                U

            	
              Form
                of Additional Disclosure Notification

            	
              U-1

            

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    
      	
              Schedule
                I

            	
              Mortgage
                Loan Schedule

            

    

    
      	
              Schedule
                II

            	
              Aggregate
                Scheduled Principal Balance of Group [   ] Forty-Year Mortgage
                Loans

            

    

    

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

    This
      SALE
      AND SERVICING AGREEMENT, dated as of [     ] (the
“Agreement”),
      is by
      and among THORNBURG MORTGAGE SECURITIES TRUST [     ],
      a Delaware statutory trust, as issuer (the “Issuer”),
      THORNBURG MORTGAGE HOME LOANS, INC., a Delaware corporation, as initial seller
      (the “Initial
      Seller”)
      and
      sponsor (the “Sponsor”),
      [THORNBURG MORTGAGE FUNDING, INC., a Delaware corporation], as seller (“TMFI” or
      the “Seller”),
      THORNBURG
      MORTGAGE SECURITIES CORPORATION,
      a
      Delaware corporation, as depositor (the “Depositor”),
      [     ], a national banking association, as master
      servicer (in such capacity, the “Master
      Servicer”)
      and as
      securities administrator (in such capacity, the “Securities
      Administrator”)
      and
      [     ], a national banking association, as indenture
      trustee (the “Indenture Trustee”)
      and
      custodian (“Custodian”).

     

    PRELIMINARY
      STATEMENT:

     

    WHEREAS,
      on or prior to the Closing Date the Seller has acquired all of the rights,
      title
      and interest of the Initial Seller in and to certain residential mortgage loans
      identified in Schedule I hereto, the related mortgages and other related assets
      (the “Mortgage
      Loans”),
      together with certain contractual rights under agreements set forth in Exhibit
      N
      hereto relating to the servicing of the Mortgage Loans (collectively, the
“Contractual
      Rights”)
      and
      rights with respect to the enforcement of certain representations and warranties
      made by the Initial Seller in the [TMFI] Mortgage Loan Purchase Agreement
      relating to the Mortgage Loans (the “[TMFI]
      Contractual Rights”),
      and
      on or prior to the Closing Date is the owner of the Mortgage Loans, the
      Contractual Rights and the [TMFI] Contractual Rights;

     

    WHEREAS,
      the Depositor has acquired all of the rights, title and interest of the Seller
      in and to the Mortgage Loans, the Contractual Rights and the [TMFI] Contractual
      Rights pursuant to the [TSC]
      Mortgage
      Loan Purchase Agreement, and, at the Closing Date is the owner of the Mortgage
      Loans, the Contractual Rights and the [TMFI] Contractual Rights being conveyed
      by the Depositor to the Issuer for inclusion in the Trust Estate;

     

    WHEREAS,
      the Depositor has duly authorized the execution and delivery of this Agreement
      to provide for the conveyance to the Issuer of the Mortgage Loans, the
      Contractual Rights, the [TMFI] Contractual Rights and certain other property
      constituting the Trust Estate, and to provide for master servicing of the
      Mortgage Loans by the Master Servicer;

     

    WHEREAS,
      on the Closing Date, the Depositor will acquire the Notes and the Ownership
      Certificates from the Issuer as consideration for its transfer to the Issuer
      of
      the Mortgage Loans, the Contractual Rights, the [TMFI] Contractual Rights and
      certain other property constituting the Trust Estate; 

     

    WHEREAS,
      pursuant to the Indenture, the Issuer will pledge the Mortgage Loans, the
      Contractual Rights, the [TMFI] Contractual Rights, the Yield Maintenance
      Agreements and certain other property constituting the Trust Estate to the
      Indenture Trustee as security for the Notes;

     

    WHEREAS,
      the Master Servicer shall be obligated under this Agreement, among other things,
      to monitor the servicing of the Mortgage Loans by the Servicers on behalf of
      the
      Issuer as provided herein;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    WHEREAS,
      the Issuer desires to have the Securities Administrator perform certain duties
      consistent with the terms of this Agreement; and

     

    WHEREAS,
      the Securities Administrator has the capacity to provide the services required
      hereby and is willing to perform such services on the terms set forth
      herein.

     

    NOW,
      THEREFORE, in consideration of the mutual agreements herein contained, the
      parties hereto agree as follows:

     

    The
      following table sets forth (or describes) the Group designation, the Class
      designation, Note Interest Rate, Initial Class Principal Amount (or Class
      Notional Amount) and the minimum denomination for each Class of Notes issued
      pursuant to the Indenture:

     

    
      	
              Group

            	
              Class

              Designation

            	
              Note
                Interest Rate

            	
              Initial

              Class
                Principal Amount or Class Notional Amount

            	
              Minimum

              Denominations

            
	
              [     ]

            	
              [     ]

            	
              (1)

            	
              $   [     ]

            	
              $   [     ]

            
	
              [     ]

            	
              [     ]

            	
              (2)

            	
              $   [     ]

            	
              $   [     ]

            
	
              [     ]

            	
              [     ]

            	
              (3)

            	
              $   [     ]

            	
              $   [     ]

            
	
              [     ]

            	
              [     ]

            	
              (4)

            	
              $   [     ]

            	
              $   [     ]

            

    

    _______________

     

    
      	
              (1)

            	
              On
                or before the Group [     ] Auction Payment Date,
                the Note Interest Rates with respect to any Payment Date (and related
                Accrual Period) with respect to the Group [   ] Notes will
                be an annual rate equal to the sum of One-Month LIBOR plus
                [     ]% (in the case of the Class
                [     ] Notes) and One-Month LIBOR plus
                [     ]% (in the case of the Class
                [     ] Notes). After the Group
                [   ] Auction Payment Date, the Note Interest Rate with
                respect to any Payment Date (and related Accrual Period) with respect
                to
                the Group [   ] Notes will be an annual rate equal to the
                least of (i) One-Month LIBOR plus (a) [     ]%
                (in the case of the Class [     ] Notes) and (b)
                [     ]% (in the case of the Class
                [     ] Notes), (ii)
                [     ]% and (iii) the related Class
                [     ] Available Funds Cap Rate.
                

            

    

     

    
      	
              (2)

            	
              On
                or before the General Auction Payment Date, the Note Interest Rates
                with
                respect to any Payment Date (and related Accrual Period) with respect
                to
                the Group [   ] Notes will be an annual rate equal to the
                sum of One-Month LIBOR plus [     ]% (in the case
                of the Class [     ] Notes) and One-Month LIBOR
                plus [     ]% (in the case of the Class
                [     ] Notes). After the General Auction Payment
                Date, the Note Interest Rate with respect to any Payment Date (and
                related
                Accrual Period) with respect to the Group [   ] Notes will
                be an annual rate equal to the least of (i) One-Year LIBOR plus
                [     ]%, (ii) [     ]%
                and (iii) the related Class [     ] Available
                Funds Cap Rate. 

            

    

     

    
      	
              (3)

            	
              On
                or before the General Auction Payment Date, the Note Interest Rates
                with
                respect to any Payment Date (and related Accrual Period) for the
                Group
                [   ] Notes will be an annual rate equal to the sum of
                One-Month LIBOR plus [     ]% (in the case of the
                Class [     ] Notes) and One-Month LIBOR plus
                [     ]% (in the case of the Class
                [     ] Notes). After the General Auction Payment
                Date up to and including the Payment Date in
                [     ], the Note Interest Rate with respect to
                any Payment Date (and related Accrual Period) for the Group
                [   ] Notes will be an annual rate equal to the lesser of
                (i) [     ]% and (ii) the related Class
                [     ] Available Funds Cap Rate. After the
                Payment Date in [     ], the Note Interest Rate
                with respect to any Payment Date (and related Accrual Period) for
                the
                Group [   ] Notes will be an annual rate equal to the least
                of (i) One-Year LIBOR plus [     ]%, (ii)
                [     ]% and (iii) the related Class
                [     ] Available Funds Cap
                Rate.

            

    

     

    
      	
              (4)

            	
              [The
                Class [     ] Notes are interest-only Notes which
                accrue interest at the applicable Note Interest Rate (as described
                in
                footnote (5) of this table) based on a Class Notional Amount for
                any
                Payment Date equal to the aggregate Class Principal Amount of the
                Offered
                Notes. The initial Class Notional Amount of the Class
                [     ] Notes as of the Closing Date is $
                [     ].]

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

      [Will
        vary in accordance with each specific transaction.]

       

      ARTICLE
        I

       

      DEFINITIONS

       

       

      SECTION
        1.01. Defined
        Terms.

       

      Whenever
        used in this Agreement or in the Preliminary Statement, the following words
        and
        phrases, unless the context otherwise requires, shall have the meanings
        specified in this Article. 

       

      “10%
        Clean-Up Call Date”:
        As
        defined in Section 10.01(a).

       

      “10%
        Clean-Up Call Right”:
        The
        option of Thornburg or its assignee to call the Notes on the 10% Clean-Up
        Call
        Date.

       

      “10-K
        Filing Deadline”:
        As
        defined in Section 3.19(b).

       

      [“1-Month
        LIBOR”:
        With
        respect to the Mortgage Loans, the average of interbank offered rates for
        one
        month U.S. dollar deposits in the London market based on quotations of major
        banks.

       

      “1-Month
        LIBOR Indexed”:
        Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on
        the
        basis of 1-Month LIBOR.

       

      “1-Year
        CMT”:
        With
        respect to the Mortgage Loans, the weekly average yield on United States
        Treasury securities adjusted to a constant maturity of one year as published
        by
        the Federal Reserve Board in Statistical Release H.15(519).

       

      “1-Year
        CMT Indexed”:
        Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on
        the
        basis of 1-Year CMT. 

       

      “1-Year
        LIBOR”:
        With
        respect to the Mortgage Loans, the average of interbank offered rates for
        one-year U.S. dollar deposits in the London market based on quotations of
        major
        banks.

       

      “1-Year
        LIBOR Indexed”:
        Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on
        the
        basis of 1-Year LIBOR.

       

      “3-Year
        CMT”:
        With
        respect to the Mortgage Loans, the weekly average yield on United States
        Treasury Securities adjusted to a constant maturity of three years as published
        by the Federal Reserve Board.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      “3-Year
        CMT Indexed”:
        Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on
        the
        basis of 3-Year CMT.

       

      “1-Year
        MTA”:
        With
        respect to the Mortgage Loans, the twelve-month moving average of the monthly
        yield on United States Treasury Securities adjusted to a constant maturity
        of
        one year which is calculated by averaging the previous twelve-month values
        of
        the 1-Year CMT Index.

       

      “1-Year
        MTA Indexed”:
        Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on
        the
        basis of 1-Year MTA Index.

       

      “6-Month
        LIBOR”:
        With
        respect to the Mortgage Loans, the average of interbank offered rates for
        six-month U.S. dollar deposits in the London market based on quotations of
        major
        banks.

       

      “6-Month
        LIBOR Indexed”:
        Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on
        the
        basis of 6-Month LIBOR.]

       

      “Accepted
        Master Servicing Practices”:
        With
        respect to any Mortgage Loan, as applicable, either (x) those customary mortgage
        servicing practices of prudent mortgage servicing institutions that master
        service mortgage loans of the same type and quality as such Mortgage Loan
        in the
        jurisdiction where the related Mortgaged Property is located, to the extent
        applicable to the Indenture Trustee (as successor Master Servicer) or the
        Master
        Servicer (except in its capacity as a Servicer or as a successor to another
        Servicer), or (y) as provided in the applicable Servicing Agreement, to the
        extent applicable to any Servicer, but in no event below the standard set
        forth
        in clause (x).

       

      “Accrual
        Period”:
        With
        respect to each Payment Date and each Class of Offered Notes, the period
        beginning on the prior Payment Date (or the Closing Date, in the case of
        the
        first Payment Date) and ending on the day immediately preceding such Payment
        Date. Interest for such Classes will be calculated based upon a 360-day year
        and
        the actual number of days in each Accrual Period. With respect to each Payment
        Date and any Class [     ] Notes and each Class of
        Subordinate Notes, the calendar month prior to the month of such Payment
        Date.
        Interest for such Classes will be calculated based upon a 360-day year
        consisting of twelve 30-day months.

       

      “Additional
        Collateral”:
        With
        respect to any Additional Collateral Mortgage Loan, the marketable securities
        or
        other assets subject to a security interest pursuant to the related pledge
        agreement.

       

      “Additional
        Collateral Mortgage Loan”:
        Each
        Mortgage Loan identified as such in the Mortgage Loan Schedule and as to
        which
        Additional Collateral is then required to be provided as security
        therefor.

       

      “Additional
        Disclosure Notification”:
        As
        defined in Section 3.19(a).

       

      “Additional
        Form 10-D Disclosure”:
        As
        defined in Section 3.19(a).

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      “Additional
        Form 10-K Disclosure”:
        As
        defined in Section 3.19(b).

       

      “Adjustment
        Date”:
        With
        respect to each Mortgage Loan, each adjustment date on which the related
        Loan
        Rate changes pursuant to the related Mortgage Note. The first Adjustment
        Date
        following the Cut-Off Date as to each Mortgage Loan is set forth in the Mortgage
        Loan Schedule.

       

      “Administration
        Agreement”.
        The
        Administration Agreement dated as of [     ] among the
        Issuer, the Owner Trustee and the Securities Administrator.

       

      “Advance”:
        As to
        any Mortgage Loan or REO Property, any advance made by the Master Servicer
        (including the Indenture Trustee in its capacity as successor Master Servicer)
        in respect of any Payment Date pursuant to Section 5.05.

       

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

       

      “Aggregate
        Subordinate Percentage”:
        As to
        any Payment Date, the percentage equivalent of a fraction, the numerator
        of
        which is the aggregate of the Class Principal Amounts of the Classes of
        Subordinate Notes and the denominator of which is the sum of (i) the Pool
        Balance for such Payment Date and (ii) amounts, if any, on deposit in the
        Reserve Fund for such Payment Date.

       

      “Agreement”:
        This
        Sale and Servicing Agreement, dated as of [     ], as
        amended, supplemented and otherwise modified from time to time.

       

      “Applicable
        Credit Support Percentage”:
        As
        defined in Section 5.01(e).

       

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

       

      “Auction
        Administrator”:
        As
        defined in Section 8.17. 

       

      “Auction
        Administration Agreement”:
        The
        Auction Administration Agreement dated as of [     ]
        between the Auction Swap Counterparty and the Auction
        Administrator.

       

      “Auction
        Notes”:
        The
        Offered Notes.

       

      “Auction
        Payment Date”:
        Either
        the Group [     ] Auction Payment Date (in the case of
        the Group [     ] Notes) or the General Auction Payment
        Date (in the case of the Group [     ]
        Notes).

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      “Auction
        Proceeds Account”:
        The
        account maintained by the Auction Administrator pursuant to the Auction
        Administration Agreement.

       

      “Auction
        Swap Agreement”:
        The
        swap agreement by and between the Auction Swap Counterparty and the Auction
        Administrator, including the ISDA Master Agreement, the schedule thereto
        and the
        related confirmation (Reference No. [     ]), each
        dated as of [     ].

       

      “Auction
        Swap Counterparty”:
        [     ], or its successor or assigns.

       

      “Available
        Funds”:
        With
        respect to any Payment Date and any Mortgage Loan Group, the sum of the Interest
        Distribution Amount for such Payment Date and the Principal Distribution
        Amount
        for such Payment Date.

       

      “Available
        Funds Cap Rate”:
        With
        respect to any Payment Date and any Mortgage Loan Group, the per annum rate
        equal to the product of (1) the fraction, expressed as a percentage, the
        numerator of which is the Interest Distribution Amount for that Mortgage
        Loan
        Group for the related Due Period and the denominator of which is the sum
        of the
        Class Principal Amounts of the Offered Notes related to such Mortgage Loan
        Group
        and the Subordinate Component related to such Mortgage Loan Group immediately
        prior to such Payment Date, and (2) 12.

       

      “Back-Up
        Certification”:
        As
        defined in Section 3.18.

       

      “Base
        Value”:
        With
        respect to any Mortgage Loan for which Additional Collateral has been pledged,
        the value of the Additional Collateral as determined with respect to that
        Mortgage Loan in accordance with the applicable underwriting
        guidelines.

       

      “Book-Entry
        Notes”:
        As
        defined in the Indenture.

       

      “Business
        Day”:
        Any
        day other than a Saturday, a Sunday or a day on which banking or savings
        institutions in the State of [     ], the State of
        [     ], the State of [     ],
        the State of [     ] or in the city in which the
        Corporate Trust Office of the Indenture Trustee is located are authorized
        or
        obligated by law or executive order to be closed.

       

      “Certificateholder”:
        The
        holder of Ownership Certificates.

       

      “Certificate
        Distribution Account”:
        The
        account maintained by or on behalf of the Securities Administrator pursuant
        to
        Section 4.05 for the benefit of the Issuer and the
        Certificateholders.

       

      “Certificate
        of Trust”:
        The
        certificate of trust filed with the Delaware Secretary of State on
        [     ] in respect of the Issuer pursuant to Section
        3810 of the Delaware Trust Statute.

       

      “Certificate
        Register”:
        As
        defined in the Trust Agreement.

       

      “Certifying
        Person”:
        As
        defined in Section 3.18.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

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

       

      “Class
        [     ]
        Margin”:
        [     ]%

       

      “Class
        [     ]
        Note”:
        Any of
        the Class [     ] Notes as designated on the face
        thereof, executed by the Issuer and authenticated and delivered by the
        Securities Administrator, substantially in the form annexed as Exhibit A-1
        of
        the Indenture.

       

      [“Class
        [     ] Available Funds Cap Rate”:
        With
        respect to any Payment Date and any Class of Offered Notes, a per annum rate
        equal to the product of (1) the Available Funds Cap Rate of the related Mortgage
        Loan Group (minus, in the case of the Group [     ]
        Mortgage Loans, on and after the Payment Date in
        [     ], the Group [     ]
        Final Maturity Reserve Rate) and (2) 30 divided by the actual number of days
        in
        the related Accrual Period.

       

      “Class
        [     ] Available Funds Cap
        Shortfalls”:
        With
        respect to any Payment Date and any Class of Offered Notes, an amount, if
        any,
        equal to the sum of (i) the excess of the amount of interest that would have
        accrued on that Class of Offered Notes for the related Accrual Period had
        the
        applicable Note Interest Rate been determined without regard to the applicable
        Class [     ] Available Funds Cap Rate over the amount
        of interest actually accrued on such Class of Offered Notes for such Accrual
        Period, (ii) any amounts described in clause (i) above for prior Payment
        Dates
        that remain unpaid, and (iii) interest on the amount described in clause
        (ii) at
        the applicable Note Interest Rate determined without regard to the applicable
        Class [     ] Available Funds Cap Rate.]

       

      “Class
        [     ] Deferred Amount”:
        For
        each Payment Date and for each Class of Offered Notes, the amount by which
        (x)
        the aggregate of any Realized Losses previously applied in reduction of the
        Class Principal Amount thereof exceeds (y) the sum of (1) the aggregate of
        amounts previously distributed in reimbursement thereof and (2) the amount
        by
        which the Class Principal Amount of such Class has been increased due to
        any
        Subsequent Recovery.

       

      “Class
        [     ] Note”:
        Any of
        the Class [     ] Notes as designated on the face
        thereof, executed by the Issuer and authenticated and delivered by the
        Securities Administrator, substantially in the form annexed as Exhibit A-2
        of
        the Indenture.

       

      [“Class
        Notional Amount”:
        With
        respect to the Class [     ] Notes and any Payment
        Date, the sum of the Class Principal Amounts of the Offered Notes immediately
        before such Payment Date. The initial Class Notional Amount of the Class
        [     ] Notes as of the Closing Date is
        $ [     ].

       

      “Class
        Principal Amount”:
        As to
        any Payment Date, with respect to any Class of Notes (other than any Interest
        Only Notes), the initial Class Principal Amount as set forth in the table
        in the
        Preliminary Statement hereto as reduced by the sum of (x) all amounts actually
        distributed in respect of principal of that Class on all prior Payment Dates,
        (y) all Realized Losses, if any, actually allocated to that Class on all
        prior
        Payment Dates and (z) any applicable Writedown Amount; provided,
        however,
        that
        pursuant to Section 5.10, the Class Principal Amount of a Class of Notes
        may be
        increased up to the amount of Realized Losses previously allocated to such
        Class
        in the event that there is a Subsequent Recovery on a Mortgage Loan, and
        the
        Note Principal Amount of any individual Note of such Class will be increased
        by
        its pro
        rata
        share of
        the increase to such Class.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      “Class
        Subordination Percentage”:
        With
        respect to each Class of Subordinate Notes and any Payment Date, the percentage
        equivalent of a fraction the numerator of which is the Class Principal Amount
        of
        such Class immediately before such Payment Date and the denominator of which
        is
        the aggregate of the Class Principal Amounts of all Classes of Notes immediately
        before such Payment Date.

       

      “Clean-Up
        Call Date”:
        As
        defined in Section 10.01(a).

       

      “Clean-Up
        Call Purchase Price”:
        As
        defined in Section 10.01(a).

       

      “Clean-Up
        Call Right”:
        Either
        the 10% Clean-Up Call Right or the Master Servicer Clean-Up Call Right, as
        applicable.

       

      “Close
        of Business”:
        As
        used herein, with respect to any Business Day and location, 5:00 p.m. at
        such
        location.

       

      “Closing
        Date”:
        [     ].

       

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

       

      “Collateral
        Account”:
        The
        trust account created and maintained by the Securities Administrator pursuant
        to
        Section 4.07 hereof.

       

      “Collection
        Account”:
        The
        trust account or accounts created and maintained by the Securities Administrator
        pursuant to Section 4.02 hereof which shall be entitled “Collection Account,
        [     ], as Securities Intermediary for
        [     ], as Indenture Trustee, in trust for the
        registered Noteholders of Thornburg Mortgage Securities Trust
        [     ], Mortgage-Backed Notes, Series
        [     ]” and which must be an Eligible
        Account.

       

      “Commission”:
        U.S.
        Securities and Exchange Commission.

       

      “Compensating
        Interest Payment”:
        With
        respect to any Payment Date, an
        amount equal to the amount, if any, by which (x) the aggregate
        amount of any Interest Shortfalls (excluding for such purpose all shortfalls
        as
        a result of Relief Act Reductions) required to be paid by the Servicers pursuant
        to the related Servicing Agreement with respect to such Payment Date, exceeds
        (y) the aggregate amount actually paid by the Servicers in respect of such
        shortfalls; provided,
        that
        such amount, to the extent payable by the Master Servicer, shall not exceed
        the
        aggregate Master Servicing Fee that would be payable to the Master Servicer
        in
        respect of such Payment Date without giving effect to any Compensating Interest
        Payment.
        

       

      “Contractual
        Rights”:
        As
        defined in the Preliminary Statement.

       

      “Control”:
        The
        meaning specified in Section 8-106 of the New York UCC.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      “Converted
        Mortgage Loan”:
        Any
        Mortgage Loan as to which the Mortgagor thereunder has exercised its right
        under
        the related Mortgage Note to convert the adjustable Loan Rate thereon to
        a fixed
        Loan Rate.

       

      “Converted
        Mortgage Loan Schedule”:
        With respect to each Payment Date, a schedule prepared by the Master Servicer
        pursuant to Section 3.25(c) listing each Convertible Mortgage Loan that has
        become a Converted Mortgage Loan during the immediately preceding Due Period,
        and the Purchase Price for each such Converted Mortgage Loan.

       

      “Convertible
        Mortgage Loan”:
        Any Mortgage Loan which, at the option of the Mortgagor and in accordance
        with
        the terms of the related Mortgage Note, may have the related Mortgage Rate
        converted from an adjustable rate to a fixed rate.

       

      “Cooperative
        Corporation”:
        The
        entity that holds title (fee or an acceptable leasehold estate) to the real
        property and improvements constituting the Cooperative Property and which
        governs the Cooperative Property, which Cooperative Corporation must qualify
        as
        a Cooperative Housing Corporation under Section 216 of the Code.

       

      “Cooperative
        Loan”:
        Any
        Mortgage Loan secured by Cooperative Shares and a Proprietary
        Lease.

       

      “Cooperative
        Loan Documents”:
        As to
        any Cooperative Loan, (i) the Cooperative Shares, together with a stock power
        in
        blank; (ii) the original or a copy of the executed Security Agreement and
        the
        assignment of the Security Agreement in blank; (iii) the original or a copy
        of
        the executed Proprietary Lease and the original assignment of the Proprietary
        Lease endorsed in blank; (iv) the original, if available, or a copy of the
        executed Recognition Agreement and, if available, the original assignment
        of the
        Recognition Agreement (or a blanket assignment of all Recognition Agreements)
        endorsed in blank; (v) UCC-1 financing statement with evidence of recording
        thereon, which has been filed in all places required to perfect the security
        interest in the Cooperative Shares and the Proprietary Lease; and (vi) UCC
        Amendments (or copies thereof) or other appropriate UCC financing statements
        required by state law, evidencing a complete and unbroken line from the
        mortgagee to the Indenture Trustee with evidence of recording thereon (or
        in a
        form suitable for recordation).

       

      “Cooperative
        Property”:
        The
        real property and improvements owned by the Cooperative Corporation, that
        includes the allocation of individual dwelling units to the holders of the
        Cooperative Shares of the Cooperative Corporation.

       

      “Cooperative
        Shares”:
        Shares
        issued by a Cooperative Corporation.

       

      “Cooperative
        Unit”:
        A
        single family dwelling located in a Cooperative Property.

       

      “Corporate
        Trust Office”:
        With
        respect to the Indenture Trustee, the principal corporate trust office of
        the
        Indenture Trustee at which at any particular time its corporate trust business
        in connection with this Agreement shall be administered, which office at
        the
        date of the execution of this instrument is located at
        [     ], Attention: [     ],
        or at such other address as the Indenture Trustee may designate from time
        to
        time by notice to the Noteholders, the Depositor and the Seller. With respect
        to
        the Securities Administrator and the Note Registrar and (i) presentment of
        Notes
        for registration of transfer, exchange or final payment,
        [     ], Attention: Corporate Trust, Thornburg Mortgage
        Securities Trust [     ], and (ii) for all other
        purposes, [     ] (or for overnight deliveries,
        [     ]), Attention:
        [     ].

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      “Correspondent
        Sellers Guide”:
        The
        Initial Seller’s Correspondent Sellers Guide, revised June 5, 2006, as amended
        by Regulation AB Amendment dated December 1, 2005, and as revised and/or
        amended
        from time to time.

       

      [“Credit
        Support Annex”:
        Any of
        the credit support annexes entered into between the Yield Maintenance
        Counterparty and the Securities Administrator on behalf of the Trust, in
        connection with the Yield Maintenance Agreements.]

       

      “Current
        Interest”:
        On
        each Payment Date, the amount of interest which each Class of Notes is entitled
        to receive (to the extent of funds available) for the related Accrual Period,
        which is equal to (a) interest at the applicable Note Interest Rate on the
        Class
        Principal Amount or Class Notional Amount, as applicable, immediately prior
        to
        such Payment Date, of that Class plus (b) unpaid interest amounts consisting
        of
        the excess of all amounts calculated in accordance with clause (a) above
        on all
        prior Payment Dates over the amount actually distributed as interest on the
        prior Payment Dates.

       

      “Custodian”:
        [     ] and its successors acting as custodian of the
        Mortgage Files.

       

      “Cut-Off
        Date”:
        With
        respect to any Mortgage Loan, other than a Qualified Substitute Mortgage
        Loan,
        the Close of Business in New York City on [     ]. With
        respect to any Qualified Substitute Mortgage Loan, the date designated as
        such
        on the Mortgage Loan Schedule (as amended).

       

      “Cut-Off
        Date Aggregate Principal Balance”:
        The
        aggregate of the Cut-Off Date Principal Balances of the Mortgage Loans which
        is
        $ [     ]. 

       

      “Cut-Off
        Date Principal Balance”:
        With
        respect to any Mortgage Loan, the principal balance thereof remaining to
        be
        paid, after application of all scheduled principal payments due on or before
        the
        Cut-Off Date whether or not received as of the Cut-Off Date (or as of the
        applicable date of substitution with respect to a Qualified Substitute Mortgage
        Loan).

       

      [“Deferred
        Interest”
With
        respect to any Negative Amortization Mortgage Loan and any Due Period, the
        excess, if any, of interest accrued on the unpaid principal balance thereof
        at
        the applicable Loan Rate over the applicable Monthly Payment.]

       

      “Definitive
        Notes”:
        As
        defined in the Indenture.

       

      “Delaware
        Trust Statute”:
        Chapter 38 of Title 12 of the Delaware Code, 12 Dec. C. Section 3801
et.
        seq.
        as the
        same may be amended from time to time.

       

      “Deleted
        Mortgage Loan”:
        A
        Mortgage Loan replaced or to be replaced by one or more Qualified Substitute
        Mortgage Loans pursuant to Section 2.04.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      “Delinquent”:
        Any
        Mortgage Loan with respect to which the Monthly Payment due on a Due Date
        is not
        made by the succeeding Due Date.

       

      “Deposit
        Date”:
        The
        day in each calendar month on which the Securities Administrator is required
        to
        remit payments from the Collection Account to the Note Payment Account, which
        is
        the [     ]th
        day of
        each calendar month no later than 1:00 p.m. (New York City time) (or, if
        such
        [     ]th
        day is
        not a Business Day, the immediately preceding Business Day).

       

      “Depositor”:
        Thornburg Mortgage Securities Corporation, a Delaware corporation, or its
        successor in interest.

       

      “Determination
        Date”:
        For
        any Payment Date and each Mortgage Loan, the date each month, as set forth
        in
        the related Servicing Agreement, on which the related Servicer determines
        the
        amount of all funds required to be remitted to the Master Servicer on the
        Servicer Remittance Date with respect to the Mortgage Loans it is servicing.
        

       

      [“Document
        Transfer Event”:
        The
        day on which (i) [     ] or any successor thereto is no
        longer the servicer of any of the Mortgage Loans, (ii) the senior, unsecured
        long-term debt rating of [     ] assigned by
        [     ] is less than “BBB-“ or (iii) any Rating Agency
        requires [     ], as Servicer to deliver the Retained
        Mortgage Files to the Custodian.]

       

      “Due
        Date”:
        With
        respect to each Mortgage Loan and any Payment Date, the first day of the
        calendar month in which such Payment Date occurs on which the Monthly Payment
        for such Mortgage Loan was due, exclusive of any days of grace.

       

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

       

      [“Eight-Year
        Hybrid Mortgage Loans”:
        The
        Mortgage Loans identified as such and as set forth on Schedule I
        hereto.]

       

      “Eligible
        Account”:
        Any of

       

      (i) an
        account or accounts maintained with a federal or state chartered depository
        institution or trust company the short-term unsecured debt obligations of
        which
        (or, in the case of a depository institution or trust company that is the
        principal subsidiary of a holding company, the short-term unsecured debt
        obligations of such holding company) are rated in the highest short term
        rating
        category of each Rating Agency at the time any amounts are held on deposit
        therein;

       

      (ii) a
        trust
        account or accounts maintained with the trust department of a federal or
        state
        chartered depository institution, national banking association or trust company
        acting in its fiduciary capacity; or 

       

      (iii) an
        account otherwise acceptable to each Rating Agency without reduction or
        withdrawal of its then current ratings of the Notes as evidenced by a letter
        from such Rating Agency to the Securities Administrator and the Indenture
        Trustee. Eligible Accounts may bear interest.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      “Employee
        Loan”:
        Any
        Mortgage Loan identified as such in the Mortgage Loan Schedule and which
        was
        originated by the [Initial Seller], which provides for an increase in the
        Loan
        Rate thereof in the event of the change of employment of the Mortgagor
        thereunder.

       

      “Entitlement
        Order”:
        The
        meaning specified in Section 8-102(a)(8) of the New York UCC (i.e.,
        generally, orders directing the transfer or redemption of any Financial
        Asset).

       

      “Event
        of Default”:
        In
        respect of the Master Servicer, one or more of the events (howsoever described)
        set forth in Section 7.01 hereof as an event or events upon the occurrence
        and
        continuation of which the Master Servicer may be terminated.

       

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

       

      “Expense
        Fee”:
        With
        respect to any Mortgage Loan, the sum of (w) the Retained Interest, if any,
        (x)
        the Master Servicing Fee and (y) the related Servicing Fee with respect to
        the
        related Servicer.

       

      “Expense
        Fee Rate”:
        With
        respect to any Mortgage Loan, the per annum rate at which the Expense Fee
        accrues for such Mortgage Loan as set forth in the Mortgage Loan
        Schedule.

       

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

       

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

       

      “Final
        Recovery Determination”:
        With
        respect to any defaulted Mortgage Loan or any REO Property (other than a
        Mortgage Loan or REO Property purchased by the Initial Seller, the Seller,
        [TMI]
        or [     ], pursuant to or contemplated by Section
        2.04, 3.25 and 10.01), a determination made by the related Servicer that
        all
        Insurance Proceeds, Liquidation Proceeds and other payments or recoveries
        which
        it expects to be finally recoverable in respect thereof have been so recovered.
        

       

      “Financial
        Asset”:
        The
        meaning specified in Section 8-102(a) of the New York UCC.

       

      [“Five-Year
        Hybrid Mortgage Loans”:
        The
        Mortgage Loans identified as such and as set forth on Schedule I
        hereto.]

       

      “Form
        8-K Disclosure Information”:
        As
        defined in Section 3.19(c).

       

      “Freddie
        Mac”:
        The
        Federal Home Loan Mortgage Corporation or any successor thereto.

       

      “General
        Auction Payment Date”:
        The
        Payment Date in [     ].

       

      “Gross
        Margin”:
        With
        respect to each Mortgage Loan, the fixed percentage set forth in the related
        Mortgage Note that is added to the applicable Index on each Adjustment Date
        in
        accordance with the terms of the related Mortgage Note used to determine
        the
        Loan Rate for such Mortgage Loan.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      “Group
        [     ]
        Auction Payment Date”:
        The
        Payment Date in [     ].

       

      [“Group
        [     ]
        Deferred Interest Adjustment Percentage”:
        With
        respect to the Group [   ] Mortgage Loans and any Payment Date
        for which Deferred Interest was recognized in the related Due Period or for
        which there is an Ownership Certificate Distribution Amount, a fraction,
        expressed as a percentage, the numerator of which equals the excess, if any,
        of
        (a) the Principal Distribution Amount for Group [   ] for such
        Payment Date over (b) the sum of the amount of Deferred Interest plus any
        Ownership Certificate Distribution Amount and the denominator of which is
        the
        Principal Distribution Amount for Group [   ] for such Payment
        Date. With respect to any Payment Date for which there is no Net Deferred
        Interest, the Group [   ] Deferred Interest Adjustment Percentage
        will equal [     ] %.]

       

      “Group
        [     ]
        Mortgage Loans”:
         A Mortgage
        Loan that is identified as such on the Mortgage Loan Schedule.

       

      “Group
        [     ]
        Notes”:
         The
        Class
        [     ] Notes and Class
        [     ] Notes.

       

      “Group
        [     ]
        Percentage”: For
        any
        Payment Date, the fraction, expressed as a percentage, the numerator of which
        is
        the aggregate Scheduled Principal Balance of the Group [   ]
        Mortgage Loans for such Payment Date and the denominator of which is the
        Pool
        Balance for such Payment Date.

       

      “Group
        [     ]
        Yield Maintenance Agreement”:
        The
        interest rate cap agreement by and between the Yield Maintenance Counterparty
        and the Securities Administrator, on behalf of the Issuer, including the
        ISDA
        Master Agreement and Schedule to the Master Agreement, the related confirmation
        (Ref No. [     ]) and credit support annex, each dated
        as of [     ], relating to the Group
        [   ] Notes.

       

      [
        “Group
        [     ]
        Final Maturity Reserve Account”: The
        Eligible Account created and maintained by the Securities Administrator pursuant
        to Section 4.06(b) of this Agreement. 

       

      “Group
        [     ]
        Final Maturity Reserve Amount”: With
        respect to the Group [     ]
        Mortgage
        Loans and each Payment Date, on and after the Payment Date in
        [     ] up to and including the earlier of the Payment
        Date in [     ]
        or the
        termination of the Trust, if the aggregate Scheduled Principal Balance of
        the
        Group [     ]
        Mortgage
        Loans with forty-year original terms to maturity is greater than the amount
        set
        forth in Schedule II of this Agreement, the lesser of (A) the product of
        (x) the
        Group [     ]
        Final
        Maturity Reserve Rate, (y) the aggregate outstanding principal balance of
        the
        Group [     ]
        Mortgage
        Loans with forty-year original terms to maturity on that Payment Date and
        (z) a
        fraction, the numerator of which is 30 and the denominator of which is 360
        and
        (B) the Group [     ]
        Final
        Maturity Reserve Shortfall for such Payment Date. For (a) each Payment Date
        prior to the Payment Date in [     ] or (b) each
        Payment Date on and after the Payment Date in [     ]
        for which the aggregate Scheduled Principal Balance of the Group [     ]
        Mortgage
        Loans with forty-year original terms to maturity does not exceed the aggregate
        Scheduled Principal Balance on Schedule II of this Agreement, zero.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      “Group
        [     ]
        Final Maturity Reserve Rate”
        : An
        annual
        rate of [     ]
        %.

       

      “Group
        [     ]
        Final Maturity Reserve Shortfall”
        : For
        each
        Payment Date, the lesser of (A) the excess of (i) the aggregate outstanding
        principal balance of the Group [     ]
        Mortgage
        Loans with [     ]-year
        original terms to maturity for that Payment Date over (ii) the amounts on
        deposit in the Group [     ]
        Final
        Maturity Reserve Account or (B) the excess of (x) the aggregate Class Principal
        Amount of the Group [     ]
        Notes
        after giving effect to payments on such Payment Date over (y) the amounts
        on
        deposit in the Group [     ]
        Final
        Maturity Reserve Account.]

       

      “Holder”
or
        “Securityholder”:
        The
        registered holder of any Note or Ownership Certificates as recorded on the
        books
        of the Note Registrar or the Certificate Registrar except that, solely for
        the
        purposes of taking any action or giving any consent pursuant to this Agreement,
        any Notes or Ownership Certificates registered in the name of the Depositor,
        the
        Master Servicer, the Securities Administrator, the Indenture Trustee or the
        Owner Trustee or any Affiliate thereof (unless any such Person owns 100%
        of such
        Class or a 100% beneficial ownership in the Ownership Certificate) shall
        be
        deemed not to be outstanding in determining whether the requisite percentage
        necessary to effect any such consent has been obtained, except that, in
        determining whether the Indenture Trustee and the Securities Administrator
        shall
        be protected in relying upon any such consent, only Notes and Ownership
        Certificates which a Responsible Officer of the Indenture Trustee or the
        Securities Administrator has actual knowledge to be so held shall be
        disregarded. The Indenture Trustee and the Securities Administrator may request
        and conclusively rely on certifications by the Depositor
        in
        determining whether any Notes or Ownership Certificates are registered to
        an
        Affiliate of the Depositor.

       

      “Indemnified
        Persons”:
        The
        Issuer, the Indenture Trustee (individually in its corporate capacity and
        in its
        capacity as Indenture Trustee), the Custodian, the Owner Trustee (individually
        in its corporate capacity and in its capacity as Owner Trustee), the Master
        Servicer, the Initial Seller, the Seller, the Depositor and the Securities
        Administrator (in all capacities hereunder) and their officers, directors,
        agents and employees and, with respect to the Indenture Trustee, any separate
        co-trustee and its officers, directors, agents and employees.

       

      “Indenture”:
        The
        Indenture dated as of [     ], among the Issuer, the
        Indenture Trustee and the Securities Administrator, as such may be amended
        or
        supplemented from time to time.

       

      “Indenture
        Trustee”:
        [     ], not in its individual capacity but solely as
        Indenture Trustee, or any successor in interest which accepts its appointment
        as
        Indenture Trustee hereunder and agrees to act in such capacity in accordance
        herewith.

       

      “Indenture
        Trustee Fee”:
        The
        annual ongoing fee of the Indenture Trustee payable by the Master Servicer
        on
        behalf of the Issuer as provided in Section 8.05 and pursuant to the terms
        of a
        separate fee letter between the Indenture Trustee and Thornburg.

       

      “Independent”:
        When
        used with respect to any accountants, a Person who is “independent” within the
        meaning of Rule 2-01 of the Securities and Exchange Commission’ Regulation S.X.
        When used with respect to any other specified Person, any such Person who
        (a) is
        in fact independent of the Depositor and its Affiliates, (b) does not have
        any
        direct financial interest in or any material indirect financial interest
        in the
        Depositor or any Affiliate thereof, (c) is not connected with the Depositor
        or
        any Affiliate thereof as an officer, employee, promoter, underwriter, trustee,
        partner, director or Person performing similar functions and (d) is not a
        member
        of the immediate family of a Person defined in clause (b) or (c)
        above.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      “Index”:
        With
        respect to each Mortgage Loan and each Adjustment Date, the index specified
        in
        the related Mortgage Note.

       

      “Initial
        Note Principal Amount”:
        With
        respect to any Notes (other than any Interest Only Notes), the amount designated
        “Original Principal Amount of this Note” on the face thereof.

       

      “Initial
        Note Notional Amount”:
        With
        respect to any Interest Only Notes, the amount designated “Original Notional
        Amount of this Note” on the face thereof.

       

      “Initial
        One-Month LIBOR Rate”:
        [     ] %

       

      “Initial
        Mortgage Loan Group [     ]
        Balance”:
        $
        [     ].

      

      “Initial
        Seller”:
        [Thornburg, in its capacity as seller under the TMFI Mortgage Loan Purchase
        Agreement.]

       

      “Insurance
        Proceeds”:
        With
        respect to any Mortgage Loan, proceeds of any title policy, hazard policy
        or
        other insurance policy covering a Mortgage Loan or related Mortgaged Property,
        to the extent such proceeds are not to be applied to the restoration of the
        related Mortgaged Property or released to the related Mortgagor in accordance
        with the related Servicing Agreement.

       

      “Interest
        Distribution Amount”:
        With
        respect to any Payment Date and any Mortgage Loan Group, an amount equal
        to the
        sum of the following for each Mortgage Loan in that Mortgage Loan Group:
        (1) all
        interest received or advanced by the Servicer of the Mortgage Loan or the
        Master
        Servicer in the related Due Period and available in the Note Payment Amount
        on
        that Payment Date, less any related Servicing Fees, Master Servicing Fees
        and
        Retained Interest; (2) all Compensating Interest Payments paid with respect
        to
        the Mortgage Loan if the Mortgage Loan was prepaid during the related Prepayment
        Period; and (3) the portion of any Purchase Price or other amount paid with
        respect to the Mortgage Loans allocable to interest, minus
        the
        Group [     ] Percentage of any fees or other amounts
        reimbursable to the Master Servicer (other than the Master Servicing Fee),
        the
        Servicer (other than Servicing Fees), the Securities Administrator, the
        Indenture Trustee (other than its Indenture Trustee Fee), the Custodian (other
        than its fees) and the Owner Trustee (other than its Owner Trustee Fee) pursuant
        to the Operative Agreements, [plus
        (4)
        solely with respect to the Group [     ] Mortgage
        Loans, the lesser of (a) any Deferred Interest recognized with respect to
        the
        Group [     ] Mortgage Loans and (b) the Principal
        Distribution Amount for Group [     ] for that
        Distribution Date.]

       

      “Interest
        Only Notes”:
        The
        Class [     ] Notes

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      “Interest
        Shortfall”:
        With
        respect to any Payment Date and each Mortgage Loan that during the related
        Prepayment Period was the subject of a Principal Prepayment or a reduction
        of
        its Monthly Payment under the Relief Act or similar state or local law, an
        amount determined as follows:

       

      (a) Principal
        Prepayments in part received during the relevant Prepayment Period: the
        difference between (i) one month’s interest at the applicable Net Loan Rate on
        the amount of such prepayment and (ii) the amount of interest for the calendar
        month of such prepayment (adjusted to the applicable Net Loan Rate) received
        at
        the time of such prepayment; and

       

      (b) Principal
        Prepayments in full received during the relevant Prepayment Period: the
        difference between (i) one month’s interest at the applicable Net Loan Rate on
        the Scheduled Principal Balance of such Mortgage Loan immediately prior to
        such
        prepayment and (ii) the amount of interest for the calendar month of such
        prepayment (adjusted to the applicable Net Loan Rate) received at the time
        of
        such prepayment; and

       

      (c) any
        Relief Act Reductions for such Payment Date.

       

      “Issuer”:
        Thornburg Mortgage Securities Trust
        [     ].

       

      “Item
        1122 Responsible Party”:
        As
        defined in Section 3.22.

       

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

       

      “LIBOR
        Determination Date”:
        The
        second LIBOR Business Day immediately preceding the commencement of each
        Accrual
        Period for each Class of Offered Notes.

       

      “Liquidated
        Mortgage Loan”:
        As to
        any Payment Date, any Mortgage Loan in respect of which the related Servicer
        or
        the Master Servicer has determined, in accordance with the servicing procedures
        specified herein, as of the end of the related Prepayment Period, that all
        Liquidation Proceeds that it expects to recover with respect to the liquidation
        of such Mortgage Loan or disposition of the related REO Property have been
        recovered.

       

      “Liquidation
        Event”:
        With
        respect to any Mortgage Loan, any of the following events: (i) such Mortgage
        Loan is paid in full; (ii) a Final Recovery Determination is made as to such
        Mortgage Loan; or (iii) such Mortgage Loan is removed from the Trust Estate
        by
        reason of its being purchased, sold or replaced pursuant to or as contemplated
        hereunder. With respect to any REO Property, either of the following events:
        (i)
        a Final Recovery Determination is made as to such REO Property; or (ii) such
        REO
        Property is removed from the Trust Estate by reason of its being sold or
        purchased pursuant to Section 10.01 hereof or the applicable provisions of
        the
        related Servicing Agreement.

       

      “Liquidation
        Expenses”:
        With
        respect to a Mortgage Loan in liquidation, unreimbursed expenses paid or
        incurred by or for the account of the Master Servicer or the related Servicers,
        such expenses including (a) property protection expenses, (b) property sales
        expenses, (c) foreclosure and sale costs, including court costs and reasonable
        attorneys’ fees, and (d) similar expenses reasonably paid or incurred in
        connection with liquidation. 

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      “Liquidation
        Proceeds”:
        With
        respect to any Mortgage Loan, the amount (other than amounts received in
        respect
        of the rental of any REO Property prior to REO Disposition) received by the
        related Servicer as proceeds from the liquidation of such Mortgage Loan,
        as
        determined in accordance with the applicable provisions of the related Servicing
        Agreement, other than Subsequent Recoveries; provided
        that (i)
        with respect to any Mortgage Loan or REO Property repurchased, substituted
        or
        sold pursuant to or as contemplated hereunder, or pursuant to the applicable
        provisions of the related Servicing Agreement, “Liquidation Proceeds” shall also
        include amounts realized in connection with such repurchase, substitution
        or
        sale and (ii) with respect to a defaulted Additional Collateral Mortgage
        Loan,
“Liquidation Proceeds” shall also include the amount realized on the related
        Additional Collateral, including any amounts paid under any Surety
        Bond.

       

      “Loan
        Rate”:
        With
        respect to each Mortgage Loan, the annual rate at which interest accrues
        on such
        Mortgage Loan from time to time in accordance with the provisions of the
        related
        Mortgage Note.

       

      “Loan-to-Collateral
        Value Ratio”:
        With
        respect to each Mortgage Loan and any date of determination, a fraction,
        expressed as a percentage, the numerator of which is the Principal Balance
        of
        the Mortgage Loan at such date of determination less the Base Value of any
        related Additional Collateral and the denominator of which is the Value of
        the
        related Mortgaged Property.

       

      “Loan-to-Value
        Ratio”:
        With
        respect to each Mortgage Loan and any date of determination, a fraction,
        expressed as a percentage, the numerator of which is the Principal Balance
        of
        the Mortgage Loan at such date of determination and the denominator of which
        is
        the Value of the related Mortgaged Property.

       

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

       

      “Majority
        Securityholders”:
        Until
        such time as the sum of the Class Principal Amounts of all Classes of Notes
        has
        been reduced to zero, the holder or holders of in excess of 50% of the aggregate
        Class Principal Amount of all Classes of Notes (accordingly, the holder of
        the
        Ownership Certificates shall be excluded from any rights or actions of the
        Majority Securityholders during such period); and thereafter, the holder
        or
        holders of in excess of 50% of the Percentage Interests of the Ownership
        Certificates.

       

      “Master
        Servicer”:
        [     ], or any successor Master Servicer appointed as
        herein provided.

       

      “Master
        Servicer Clean-Up Call Date”:
        As
        defined in Section 10.01(a).

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      “Master
        Servicer Clean-Up Call Right”:
        The
        option of [     ], so long as it is acting as Master
        Servicer, to purchase the outstanding Mortgage Loans and REO Properties on
        the
        Master Servicer Clean-Up Call Date.

       

      “Master
        Servicing Fee”:
        As to
        any Payment Date and each related Mortgage Loan, an amount equal to the product
        of the applicable Master Servicing Fee Rate and the outstanding Principal
        Balance of such Mortgage Loan as of the first day of the related Due Period.
        The
        Master Servicing Fee for any Mortgage Loan shall be payable in respect of
        any
        Payment Date solely from the interest portion of the Monthly Payment or other
        payment or recovery with respect to such Mortgage Loan.

       

      “Master
        Servicing Fee Rate”:
        [     ] % per annum.

       

      “Master
        Servicing Guide”:
        [     ]. 

       

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

       

      “MERS”:
        Mortgage Electronic Registration Systems, Inc., a corporation organized and
        existing under the laws of the State of Delaware, or any successor
        thereto.

       

      “MERS
        Mortgage Loan”:
        Any
        Mortgage Loan registered with MERS on the MERS System.

       

      “MERS® System”:
        The
        system of recording transfers of mortgages electronically maintained by
        MERS.

       

      “MIN”:
        The
        Mortgage Identification Number for any MERS Mortgage Loan.

       

      “Modifiable
        Mortgage Loan”:
        Any
        Mortgage Loan which, at the option of the Mortgagor and in accordance with
        the
        terms of the related Mortgage Note, may have the related Mortgage Rate modified
        to any adjustable rate or hybrid product offered at the time by the related
        originator.

       

      “Modified
        Mortgage Loan”:
        Any
        Modifiable Mortgage Loan as to which the related Mortgagor has exercised
        the
        right to modify the Mortgage Rate.

       

      “Modified
        Mortgage Loan Schedule”:
        With
        respect to each Payment Date, a schedule prepared by the Master Servicer
        pursuant to Section 3.25(c) listing each Modifiable Mortgage Loan that has
        become a Modified Mortgage Loan during the immediately preceding Due Period,
        and
        the Purchase Price for each such Modified Mortgage Loan.

       

      “MOM
        Loan”:
        Any
        Mortgage Loan as to which MERS is acting as mortgagee, solely as nominee
        for the
        originator of such Mortgage Loan and its successors and assigns.

       

      “Monthly
        Payment”:
        With
        respect to any Mortgage Loan, the scheduled monthly payment of principal
        and/or
        interest on such Mortgage Loan that is payable by the related Mortgagor from
        time to time under the related Mortgage Note, determined, for the purposes
        of
        this Agreement: (a) after giving effect to any reduction in the amount of
        interest collectible from the related Mortgagor pursuant to the Relief Act
        or
        similar state or local law; (b) without giving effect to any extension granted
        or agreed to by the related Servicer pursuant to the applicable provisions
        of
        the related Servicing Agreement; and (c) on the assumption that all other
        amounts, if any, due under such Mortgage Loan are paid when due.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      “Moody’s”:
        Moody’s Investors Service, Inc. or any successor thereto.

       

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

       

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

       

      “Mortgage
        Loan”:
        Each
        mortgage loan (including Cooperative Loans) transferred and assigned to the
        Indenture Trustee for the benefit of the Noteholders pursuant to Section
        2.01 or
        Section 2.04(d) hereof as from time to time held as a part of the Trust Estate,
        the Mortgage Loans so held being identified in the Mortgage Loan Schedule
        or
        Schedule I hereto.

       

      “Mortgage
        Loan Group [     ]”:
        At any time, the Group [     ] Mortgage Loans in the
        aggregate and any REO Properties acquired in respect thereof.

       

      “Mortgage Loan
        Group”:
        Any of
        Mortgage Loan Group [     ], as the context
        requires.

       

      “Mortgage
        Loan Group Balance”:
        As to
        each Mortgage Loan Group and any Payment Date, the aggregate of the Scheduled
        Principal Balances, as of the Close of Business on the first day of the month
        preceding the month in which such Payment Date occurs, of the Mortgage Loans
        in
        such Mortgage Loan Group that were Outstanding Mortgage Loans on such
        date.

       

      “Mortgage
        Loan Purchase Agreement”:
        Each
        of the [TMFI] Mortgage Loan Purchase Agreement and the [TMSC] Mortgage Loan
        Purchase Agreement. References in this Agreement to the “applicable” or
“related” Mortgage Loan Purchase Agreement means the [TMFI] Mortgage Loan
        Purchase Agreement, in the case of the Initial Seller, and the [TMSC] Mortgage
        Loan Purchase Agreement, in the case of the Seller.

       

      “Mortgage
        Loan Schedule”:
        As of
        any date, the list of Mortgage Loans included in the Trust Estate on such
        date,
        attached hereto as Schedule I. The Mortgage Loan Schedule shall be prepared
        by
        the Seller and shall set forth the following information with respect to
        each
        Mortgage Loan:

       

      
        	 	
                (i)

              	
                the
                  Mortgage Loan identifying number;

              

      

       

      
        	 	
                (ii)

              	
                the
                  Mortgagor’s name;

              

      

       

      
        	 	
                (iii)

              	
                the
                  street address of the Mortgaged Property, including the state and
                  five-digit ZIP code;

              

      

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (iv)

              	
                a
                  code indicating whether the Mortgaged Property was represented
                  by the
                  borrower, at the time of origination, as being
                  owner-occupied;

              

      

       

      
        	 	
                (v)

              	
                a
                  code indicating whether the Residential Dwelling constituting the
                  Mortgaged Property is (a) a detached single family dwelling, (b)
                  a
                  dwelling in a planned unit development, (c) a condominium unit,
                  (d) a two-
                  to four-unit residential property, (e) a townhouse, (f) a cooperative
                  or
                  (g) other type of Residential
                  Dwelling;

              

      

       

      
        	 	
                (vi)

              	
                if
                  the related Mortgage Note permits the borrower to make Monthly
                  Payments of
                  interest only for a specified period of time, (a) the original
                  number of
                  such specified Monthly Payments and (b) the remaining number of
                  such
                  Monthly Payments as of the Cut-Off
                  Date;

              

      

       

      
        	 	
                (vii)

              	
                the
                  original months to maturity;

              

      

       

      
        	 	
                (viii)

              	
                the
                  stated remaining months to maturity from the Cut-Off Date based
                  on the
                  original amortization schedule;

              

      

       

      
        	 	
                (ix)

              	
                the
                  Loan-to-Value Ratio at origination;

              

      

       

      
        	 	
                (x)

              	
                the
                  value of any Additional Collateral at
                  origination;

              

      

       

      
        	 	
                (xi)

              	
                the
                  Loan-to-Collateral Value Ratio at
                  origination;

              

      

       

      
        	 	
                (xii)

              	
                the
                  Loan Rate in effect immediately following the Cut-Off
                  Date;

              

      

       

      
        	 	
                (xiii)

              	
                the
                  date on which the first Monthly Payment is or was due on the Mortgage
                  Loan;

              

      

       

      
        	 	
                (xiv)

              	
                the
                  stated maturity date;

              

      

       

      
        	 	
                (xv)

              	
                the
                  Master Servicing Fee Rate and the Servicing Fee Rate, if
                  any;

              

      

       

      
        	 	
                (xvi)

              	
                whether
                  such loan is an Additional Collateral Mortgage Loan or an Employee
                  Loan;

              

      

       

      
        	 	
                (xvii)

              	
                the
                  last Due Date on which a Monthly Payment was actually applied to
                  the
                  unpaid Scheduled Principal Balance;

              

      

       

      
        	 	
                (xviii)

              	
                the
                  original principal balance of the Mortgage
                  Loan;

              

      

       

      
        	 	
                (xix)

              	
                the
                  Scheduled Principal Balance of the Mortgage Loan on the Cut-Off
                  Date and a
                  code indicating the purpose of the Mortgage Loan (i.e.,
                  purchase financing, rate/term refinancing, cash-out
                  refinancing);

              

      

       

      
        	 	
                (xx)

              	
                the
                  Index and Gross Margin specified in related Mortgage
                  Note;

              

      

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (xxi)

              	
                the
                  next Adjustment Date, if
                  applicable;

              

      

       

      
        	 	
                (xxii)

              	
                the
                  Maximum Loan Rate, if applicable;

              

      

       

      
        	 	
                (xxiii)

              	
                the
                  Value of the Mortgaged Property;

              

      

       

      
        	 	
                (xxiv)

              	
                the
                  sale price of the Mortgaged Property, if
                  applicable;

              

      

       

      
        	 	
                (xxv)

              	
                the
                  product code;

              

      

       

      
        	 	
                (xxvi)

              	
                the
                  Expense Fee Rate therefor;

              

      

       

      
        	 	
                (xxvii)

              	
                the
                  Servicer that is servicing such Mortgage Loan and the originator
                  of such
                  Mortgage Loan; and

              

      

       

      
        	 	
                (xxviii)

              	
                whether
                  the Mortgage Loan is an [Adjustable Rate Mortgage Loan], a
                  [[     ]-Year Hybrid Mortgage Loan], [and whether
                  the Mortgage Loan is a Negative Amortization Mortgage Loan].
                  

              

      

       

      Information
        set forth in clauses (ii) and (iii) above regarding each Mortgagor and the
        related Mortgaged Property shall be confidential and the Indenture Trustee
        (or
        the Master Servicer) shall not disclose such information except to the extent
        disclosure may be required by any law or regulatory or administrative authority;
        provided,
        however,
        that
        the Trustee may disclose on a confidential basis any such information to
        its
        agents, attorneys and any auditors in connection with the performance of
        its
        responsibilities hereunder.

      

      The
        Mortgage Loan Schedule, as in effect from time to time, shall also set forth
        the
        following information with respect to the Mortgage Loans in the aggregate
        as of
        the Cut-Off Date: (1) the number of Mortgage Loans; (2) the current
        Scheduled Principal Balance of the Mortgage Loans; (3) the weighted average
        Loan Rate of the Mortgage Loans; and (4) the weighted average remaining
        months to maturity of the Mortgage Loans. The Mortgage Loan Schedule shall
        be
        amended from time to time by the Seller in accordance with the provisions
        of
        this Agreement.

       

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

       

      “Mortgaged
        Property”:
        Either
        of (x) the fee simple or leasehold interest in real property, together with
        improvements thereto including any exterior improvements to be completed
        within
        120 days of disbursement of the related Mortgage Loan proceeds, or (y) in
        the
        case of a Cooperative Loan, the related Cooperative Shares and Proprietary
        Lease, securing the indebtedness of the Mortgagor under the related Mortgage
        Loan.

       

      “Mortgagor”:
        The
        obligor on a Mortgage Note.

       

      [“Negative
        Amortization Mortgage Loan”:
        In
        case of Group [   ], a Hybrid Mortgage Loan or an Adjustable Rate
        Mortgage Loan under which, pursuant to the terms of the related Mortgage
        Note,
        the borrower may elect to make a Monthly Payment which is less than the interest
        accrued on the Mortgage Loan at the applicable Loan Rate for the related
        Due
        Period.]

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      [“Net
        Deferred Interest”:
        With
        respect to any Payment Date and the Negative Amortization Mortgage Loans,
        the
        excess, if any, of Deferred Interest recognized on such Negative Amortization
        Mortgage Loans for the related Due Period over the Principal Distribution
        Amount
        for the Group [   ] Mortgage Loans for such Payment Date.]

       

      “Net
        Liquidation Proceeds”:
        With
        respect to any Liquidated Mortgage Loan or any other disposition of related
        Mortgaged Property (including REO Property), the related Liquidation Proceeds
        net of Advances, related Servicing Advances, Master Servicing Fee, related
        Servicing Fees and any other accrued and unpaid servicing fees received and
        retained in connection with the liquidation of such Mortgage Loan or Mortgaged
        Property, and any related Retained Interest.

       

      “Net
        Loan Rate”:
        With
        respect to any Mortgage Loan (or the related REO Property), as of any date
        of
        determination, a per annum rate of interest equal to the then applicable
        Loan
        Rate for such Mortgage Loan minus the related Servicing Fee Rate, Master
        Servicing Fee Rate and Retained Rate, if any.

       

      “Nonrecoverable”:
        The
        determination by the Master Servicer or the related Servicer in respect of
        a
        delinquent Mortgage Loan that if it were to make an Advance in respect thereof,
        such amount would not be recoverable from any collections or other recoveries
        (including Liquidation Proceeds) on such Mortgage Loan.

       

      “Note”:
        Any of
        the Class [     ] Notes.

       

      “Note
        Interest Rate”:
        With respect to each Class of Notes and any Payment Date, the applicable
        per
        annum rate described in the footnotes to the table in the Preliminary Statement
        hereto:

       

      “Note
        Payment Account”:
        The
        account maintained by the Securities Administrator pursuant to Section 4.04
        hereof which shall be entitled “Note Payment Account,
        [     ], as Securities Intermediary for
        [     ], as Indenture Trustee, in trust for the
        registered Noteholders of Thornburg Mortgage Securities Trust
        [     ], Mortgage-Backed Notes, Series
        [     ]” and which must be an Eligible
        Account.

       

      “Note
        Principal Amount”:
        With respect to each Note of a given Class (other than a Notional Note) and
        any
        date of determination, the product of (i) the Class Principal Amount of such
        Class [     ] and (ii) the applicable Percentage
        Interest of such Note.

       

      “Note
        Register”
and
        “Note
        Registrar”:
        As
        defined in the Indenture.

       

      “Noteholder”
or
        “Holder”:
        As
        defined in the Indenture.

       

      “Notional
        Note”:
        Any
        Interest Only Note.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      “Offered
        Notes”:
        Any
        Class [     ] Notes.

       

      “Offering
        Documents”:
        The
        Prospectus Supplement, the Prospectus and the Private Placement
        Memorandum.

       

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

       

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

       

      (a) If
        on
        such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not
        appear on the Telerate Page 3750 as of 11:00 a.m. (London time), or if the
        Telerate Page 3750 is not available on such date, the Securities Administrator
        will obtain such rate from Reuters’ “page LIBOR 01” or Bloomberg’s page “BBAM.”
If such rate is not published for such LIBOR Determination Date,
        One-Month LIBOR
        for
        such date will be the most recently published Interest Settlement Rate. In
        the
        event that the BBA no longer sets an Interest Settlement Rate, the Securities
        Administrator will designate an alternative index that has performed, or
        that
        the Securities Administrator expects to perform, in a manner substantially
        similar to the BBA’s Interest Settlement Rate. 

       

      (b) The
        establishment of One-Month LIBOR by the Securities Administrator and the
        Securities Administrator’s subsequent calculation of the Note Interest Rates
        applicable to the Offered Notes for the relevant Accrual Period, in the absence
        of manifest error, will be final and binding.

       

      “One-Year
        LIBOR”:
        With
        respect to the Offered Notes and any Accrual Period in which the Note Interest
        Rate of a Class of Offered Notes is indexed off of One-Year LIBOR, a per
        annum
        rate determined on the LIBOR Determination Date in the following manner by
        the
        Securities Administrator on the basis of the “Interest Settlement Rate” set by
        the BBA for one-year United States dollar deposits, as such rates appear
        on the
        Telerate Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination
        Date.

       

      (a) If
        on
        such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not
        appear on the Telerate Page 3750 as of 11:00 a.m. (London time), or if the
        Telerate Page 3750 is not available on such date, the Securities Administrator
        will obtain such rate from Reuters’ “page LIBOR 01” or Bloomberg’s page “BBAM.”
If such rate is not published for such LIBOR Determination Date,
        One-Year LIBOR
        for
        such date will be the most recently published Interest Settlement Rate. In
        the
        event that the BBA no longer sets an Interest Settlement Rate, the Securities
        Administrator will designate an alternative index that has performed, or
        that
        the Securities Administrator expects to perform, in a manner substantially
        similar to the BBA’s Interest Settlement Rate. 

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      (b) The
        establishment of One-Year LIBOR by the Securities Administrator and the
        Securities Administrator’s subsequent calculation of Note Interest Rates
        applicable to the Offered Notes for the relevant Accrual Period, in the absence
        of manifest error, will be final and binding.

       

      “Operative
        Agreements”:
        The
        Trust Agreement, the Certificate of Trust, this Agreement, the Mortgage Loan
        Purchase Agreements, the Indenture, the Administration Agreement, the Yield
        Maintenance Agreements, the Auction Administration Agreement, the Auction
        Swap
        Agreement and each other document contemplated by any of the foregoing to
        which
        the Depositor, the Owner Trustee, the Securities Administrator, the Master
        Servicer, the Indenture Trustee or the Issuer is a party.

       

      “Opinion
        of Counsel”:
        A
        written opinion of counsel, who may, without limitation, be a salaried counsel
        for the Depositor, the Initial Seller, the Seller, the Master Servicer, the
        Securities Administrator or the Indenture Trustee, acceptable to the Indenture
        Trustee or the Securities Administrator, as applicable, but which must be
        Independent outside counsel concerning federal income tax matters.

       

      “Optional
        Notes Purchase Date”:
        As
        defined in the Indenture.

       

      “Optional
        Notes Purchase Right”:
        As
        defined in the Indenture.

       

      “Original
        Applicable Credit Support Percentage”:
        With
        respect to each Class of Subordinate Notes, the corresponding percentage
        set
        forth below opposite its Class designation:

       

      
        	
                Class
                  B-[     ]

              	
                [     ]
                  %

              
	
                Class
                  B-[     ]

              	
                [     ]
                  %

              

      

      

       

      “Original
        Class Notional Amount”:
        With
        respect to the Class [     ] Notes, the corresponding
        aggregate notional amount set forth opposite the Class designation of such
        Class
        in the Preliminary Statement.

       

      “Original
        Class Principal Amount”:
        With
        respect to each Class of Notes other than the Notional Notes, the corresponding
        aggregate amount set forth opposite the Class designation of such Class in
        the
        Preliminary Statement. 

       

      “Original
        Subordinated Principal Amount”:
        The
        aggregate of the Original Class Principal Amounts of the Classes of Subordinate
        Notes.

       

      “Original
        Trust Agreement”:
        The
        Trust Agreement dated as of [     ] by and between the
        Owner Trustee and the Depositor pursuant to which the Issuer was formed by
        filing of the Certificate of Trust.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

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

       

      “Overcollateralized
        Group”:
        With
        respect to any Payment Date and any Group [     ] Notes
        as to which the aggregate Class Principal Amount thereof after giving effect
        to
        payments pursuant to Section 5.01(a) on such Payment Date, is less than the
        sum
        of (i) the Scheduled Principal Balances of the related Mortgage Loan Group
        as of
        the last day of the related Due Period and (ii) amounts, if any, on deposit
        in
        the Reserve Fund with respect to such Group or Groups of Notes for such Payment
        Date.

       

      “Owner
        Trustee”:
        [     ], a Delaware banking corporation, not in its
        individual capacity, but solely as owner trustee under the Trust Agreement,
        or
        any successor in interest which accepts its appointment as Owner Trustee
        and
        agrees to act in such capacity in accordance with the Trust
        Agreement.

       

      “Owner
        Trustee Fee”:
        The
        annual on-going fee payable by the Master Servicer on behalf of the Trust
        to the
        Owner Trustee as provided in Section 8.05 and pursuant to the terms of a
        separate fee letter agreement.

       

      “Ownership
        Certificate”:
        A
        certificate representing an undivided beneficial ownership interest in the
        Trust, substantially in the form attached as Exhibit A to the Trust
        Agreement.

       

      [“Ownership
        Certificate Distribution Amount”:
        For
        any Payment Date and the Group [     ] Mortgage Loans,
        an amount equal to the lesser of (A) the excess of (i) the Principal
        Distribution Amount for such Payment Date over (ii) the Deferred Interest
        for
        the related Due Period and (B) the aggregate Net Deferred Interest for all
        prior
        Payment Dates over the aggregate of all payments made in respect of the
        Ownership Certificates on all prior Payment Dates.]

       

      “Paying
        Agent”:
        Initially, the Securities Administrator, in its capacity as paying agent
        for the
        Notes under the Indenture and paying agent for the Certificates under the
        Trust
        Agreement, or any successor to the Securities Administrator in such
        capacity.

       

      “Payment
        Date”:
        The
        [     ]th day of the month, or, if such day is not a
        Business Day, the next Business Day commencing in
        [     ].

       

      “Payment
        Date Statement”:
        As
        defined in Section 5.04(a) hereof.

       

      “PCAOB”:
        The
        Public Company Accounting Oversight Board.

       

      “Percentage
        Interest”:
        With
        respect to any Note, a fraction, expressed as a percentage, the numerator
        of
        which is the Initial Note Principal Amount or Initial Note Notional Amount,
        as
        applicable, represented by such Note and the denominator of which is the
        Original Class Principal Amount or Original Class Notional Amount, as
        applicable, of the related Class. With respect to any Ownership Certificate,
        the
        Percentage Interest noted on the face of such certificate.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      “Permitted
        Investments”:
        Any
        one or more of the following obligations or securities acquired at a purchase
        price of not greater than par, regardless of whether issued or managed by
        the
        Depositor, the Securities Administrator, the Master Servicer, the Indenture
        Trustee, the Owner Trustee or any of their respective Affiliates or for which
        an
        Affiliate of the Depositor, the Indenture Trustee, the Owner Trustee, the
        Securities Administrator or the Master Servicer serves as an
        advisor:

       

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

       

      (ii) (A)
        demand and time deposits in, certificates of deposit of, bankers’ acceptances
        issued by or federal funds sold by any depository institution or trust company
        (including the Indenture Trustee, the Owner Trustee, the Master Servicer
        or the
        Securities Administrator or their agents acting in their respective commercial
        capacities) incorporated under the laws of the United States of America or
        any
        state thereof and subject to supervision and examination by federal and/or
        state
        authorities, so long as, at the time of such investment or contractual
        commitment providing for such investment, such depository institution or
        trust
        company or its ultimate parent has a short-term uninsured debt rating in
        one of
        the two highest available rating categories of each Rating Agency and (B)
        any
        other demand or time deposit or deposit which is fully insured by the
        FDIC;

       

      (iii) repurchase
        obligations with respect to any security described in clause (i) above and
        entered into with a depository institution or trust company (acting as
        principal) rated A or higher by the Rating Agencies;

       

      (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, the District
        of
        Columbia or any State thereof and that are rated by each Rating Agency 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) that is rated by each Rating Agency in its
        highest
        short-term unsecured debt rating available at the time of such
        investment;

       

      (vi) units
        of
        money market funds (which may be 12b-1 funds, as contemplated by the Commission
        under the Investment Company Act of 1940) registered under the Investment
        Company Act of 1940 including funds managed or advised by the Indenture Trustee,
        the Owner Trustee, the Master Servicer or the Securities Administrator or
        an
        affiliate thereof having the highest applicable rating from each Rating Agency;
        and

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      (vii) if
        previously confirmed in writing to the Indenture Trustee or the Securities
        Administrator, any other demand, money market or time deposit, or any other
        obligation, security or investment, as may be acceptable to each Rating Agency
        in writing as a permitted investment of funds backing securities having ratings
        equivalent to its highest initial rating of the Offered Notes;

       

      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.

       

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

       

      “Pool
        Balance”:
        As to
        any Payment Date, the aggregate of the Scheduled Principal Balances, as of
        the
        [     ] day of the month preceding the month in which
        such Payment Date occurs, of the Mortgage Loans that were Outstanding Mortgage
        Loans on such date.

       

      “Prepayment
        Penalty Amount”:
        With
        respect to any Mortgage Loan and each Payment Date, all premiums or charges,
        if
        any, paid by Mortgagors under the related Mortgage Notes as a result of full
        or
        partial Principal Prepayments collected by the applicable Servicer during
        the
        immediately preceding Prepayment Period, but only to the extent required
        to be
        remitted to the Master Servicer on the applicable Servicer Remittance Date
        under
        the terms of the related Servicing Agreement.

       

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

       

      “Primary
        Insurance Policy”:
        Mortgage guaranty insurance, if any, on an individual Mortgage Loan, as
        evidenced by a policy or certificate.

       

      “Principal
        Balance”:
        As to
        any Mortgage Loan, other than a Liquidated Mortgage Loan, and any day, the
        related Cut-Off Date Principal Balance, minus
        all
        collections credited against the Principal Balance of such Mortgage Loan
        after
        the Cut-Off Date. For purposes of this definition, a Liquidated Mortgage
        Loan
        shall be deemed to have a Principal Balance equal to the Principal Balance
        of
        the related Mortgage Loan as of the final recovery of related Liquidation
        Proceeds and a Principal Balance of zero thereafter. As to any REO Property
        and
        any day, the Principal Balance of the related Mortgage Loan immediately prior
        to
        such Mortgage Loan becoming REO Property.

       

      “Principal
        Deficiency Amount”:
        For
        any Payment Date and for any Undercollateralized Group, the excess, if any,
        of
        the aggregate Class Principal Amount of such Undercollateralized Group for
        such
        Payment Date, after giving effect to payments pursuant to Section 5.01(a)
        on
        such date over the sum of (i) the Scheduled Principal Balances of the Mortgage
        Loans in the related Mortgage Loan Group as of the Close of Business on the
        last
        day in the related Due Period and (ii) amounts, if any, on deposit in the
        Reserve Fund with respect to the related Undercollateralized Group or Groups
        for
        such Payment Date.

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      “Principal
        Distribution Amount”:
        With
        respect to any Payment Date and any Mortgage Loan Group, an amount equal
        to the
        sum of the following for each Mortgage Loan in that Mortgage Loan Group:
        (a) each Monthly Payment of principal collected or advanced on the Mortgage
        Loans by the related Servicer or the Master Servicer in respect of the related
        Due Period, (b) that portion of the Purchase Price, representing principal
        of any repurchased or purchased Mortgage Loan, deposited to the Collection
        Account during the related Prepayment Period, (c) the principal portion of
        any Substitution Adjustments deposited in the Collection Account during the
        related Prepayment Period, (d) the principal portion of all Insurance
        Proceeds received during the related Prepayment Period with respect to Mortgage
        Loans that are not yet Liquidated Mortgage Loans, (e) the principal portion
        of all Net Liquidation Proceeds received during the related Prepayment Period
        with respect to Liquidated Mortgage Loans (other than Subsequent Recoveries),
        (f) all Principal Prepayments in part or in full on Mortgage Loans applied
        by the Servicers or the Master Servicer during the related Prepayment Period,
        (g) all Subsequent Recoveries received during the related Prepayment Period
        and
        (h) on the Payment Date on which the Trust is to be terminated pursuant to
        Section 10.01 hereof, that portion of the Clean-Up Call Purchase Price in
        respect of principal.

       

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

       

      “Privately
        Offered Notes”:
        Collectively, the Class [     ] Notes and the
        Subordinate Notes.

       

      “Private
        Placement Memorandum”:
        The
        Confidential Private Placement Memorandum dated [     ]
        relating to the Privately Offered Notes.

       

      “Pro
        Rata
        Share”:
        As to
        any Payment Date and any Class of Subordinate Notes, the portion of the
        Subordinate Principal Distribution Amount allocable to such Class, equal
        to the
        product of the (a) Subordinate Principal Distribution Amount on such date
        and
        (b) a fraction, the numerator of which is the Class Principal Amount of that
        Class [     ] and the denominator of which is the
        aggregate of the Class Principal Amounts of all Classes of Subordinate
        Notes.

       

      “Proprietary
        Lease”:
        With
        respect to any Cooperative Unit, a lease or occupancy agreement between a
        Cooperative Corporation and a holder of related Cooperative Shares.

       

      “Prospectus”:
        The
        Prospectus Supplement, together with the accompanying prospectus, dated
        [     ], relating to the Offered Notes.

       

      “Prospectus
        Supplement”:
        That
        certain Prospectus Supplement, dated [     ], relating
        to the initial sale of the Offered Notes.

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      “Purchase
        Price”:
        With
        respect to any Mortgage Loan or REO Property to be purchased pursuant to
        or as
        contemplated by Section 2.04, Section 3.25 or Section 10.01 hereof, and as
        confirmed by an Officers’ Certificate from the Initial Seller or the Seller, as
        applicable, to the Indenture Trustee, an amount equal to the sum of
        (i) 100% of the Principal Balance thereof as of the date of purchase (or
        such other price as is provided in Section 10.01), plus (ii) in the case of
        (x) a Mortgage Loan, accrued interest on such Principal Balance at the
        applicable Loan Rate from the Due Date as to which interest was last covered
        by
        a payment by the Mortgagor through the end of the calendar month in which
        the
        purchase is to be effected, and (y) an REO Property, the sum of
        (1) accrued interest on such Principal Balance at the applicable Loan Rate
        from the Due Date as to which interest was last covered by a payment by the
        Mortgagor plus (2) REO Imputed Interest for such REO Property for each calendar
        month commencing with the calendar month in which such REO Property was acquired
        and ending with the calendar month in which such purchase is to be effected,
        net
        of the total of all net rental income, Insurance Proceeds and Liquidation
        Proceeds that as of the date of purchase had been distributed as or to cover
        REO
        Imputed Interest, plus (iii) any unreimbursed Servicing Advances and any
        unpaid Expense Fees allocable to such Mortgage Loan or REO Property, plus
        (iv) in the case of a Mortgage Loan required to be purchased pursuant to
        Section 2.04 hereof, any costs and damages incurred by the Indenture Trustee
        in
        respect of a breach or defect giving rise to the purchase obligations or
        by the
        Issuer in connection with any violation by such Mortgage Loan of any predatory-
        or abusive-lending laws.

       

      “Qualified
        Substitute Mortgage Loan”:
        A
        mortgage loan substituted for a Deleted Mortgage Loan pursuant to the terms
        of
        this Agreement which must, on the date of such substitution, (i) have an
        outstanding principal balance, after application of all Monthly Payments
        of
        principal and interest due during or prior to the month of substitution,
        not in
        excess of, and not more than 5% less than, the Principal Balance of the Deleted
        Mortgage Loan as of the Due Date in the calendar month during which the
        substitution occurs, (ii) have a maximum loan rate not less than the
        Maximum Loan Rate of the Deleted Mortgage Loan, (iii)  have a gross margin
        equal to or greater than the Gross Margin of the Deleted Mortgage Loan, (iv)
        have the same Index as the Deleted Mortgage Loan, (v) have its next adjustment
        date not more than two months after the next Adjustment Date of the Deleted
        Mortgage Loan, (vi) have a remaining term to maturity not greater than (and
        not
        more than one year less than) that of the Deleted Mortgage Loan, (vii) be
        current as of the date of substitution, (viii) have a Loan-to-Value Ratio
        and a Loan-to-Collateral Value Ratio as of the date of substitution equal
        to or
        lower than the Loan-to-Value Ratio and the Loan-to-Collateral Value Ratio,
        respectively, of the Deleted Mortgage Loan as of such date, (ix) have been
        underwritten or re-underwritten in accordance with the same or substantially
        similar underwriting criteria and guidelines as the Deleted Mortgage Loan,
        (x)
        is of the same or better credit quality as the Deleted Mortgage Loan and
        (xi) conform to each representation and warranty set forth in Section 2.05
        hereof applicable to the Deleted Mortgage Loan. In the event that one or
        more
        mortgage loans are substituted for one or more Deleted Mortgage Loans, the
        amounts described in clause (i) hereof shall be determined on the basis of
        aggregate principal balances, the terms described in clause (vi) hereof
        shall be determined on the basis of weighted average remaining term to maturity,
        the Loan-to-Value Ratio and Loan-to-Collateral Value Ratio described in clause
        (viii) hereof shall be satisfied as to each such mortgage loan and, except
        to the extent otherwise provided in this sentence, the representations and
        warranties described in clause (x) hereof must be satisfied as to each
        Qualified Substitute Mortgage Loan or in the aggregate, as the case may
        be.

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      “Rating
        Agency”:
        Each
        of [   ] and [   ] and any respective successors
        thereto. If [   ] or their respective successors shall no longer
        be in existence, “Rating Agency” shall include such nationally recognized
        statistical rating agency or agencies, or other comparable Person or Persons,
        as
        shall have been designated by the Depositor, notice of which designation
        shall
        be given to the Indenture Trustee, the Securities Administrator and the Master
        Servicer.

       

      “Realized
        Loss”:
        With
        respect to any Liquidated Mortgage Loan, the amount of loss realized equal
        to
        the portion of the Principal Balance remaining unpaid after application of
        all
        Net Liquidation Proceeds in respect of such Liquidated Mortgage
        Loan.

       

      “Recognition
        Agreement”:
        With
        respect to any Cooperative Loan, an agreement between the related Cooperative
        Corporation and the originator of such Mortgage Loan to establish the rights
        of
        such originator in the related Cooperative Property.

       

      “Record
        Date”:
        With
        respect to each Payment Date and the Offered Notes, the Business Day preceding
        the applicable Payment Date so long as such Offered Notes remain Book-Entry
        Notes and otherwise the Record Date shall be same as for the Privately Offered
        Notes. For each Class of Privately Offered Notes, the last Business Day of
        the
        calendar month preceding the month in which such Payment Date occurs.

       

      “Refinancing
        Mortgage Loan”:
        Any
        Mortgage Loan originated in connection with the refinancing of an existing
        mortgage loan.

       

      “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 clarifications and interpretations 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.

       

      “Relevant
        Servicing Criteria”:
        The
        Servicing Criteria applicable to each party, as set forth on Exhibit Q attached
        hereto and any similar exhibit set forth in each Servicing Agreement in respect
        of each Servicer. Multiple parties can have responsibility for the same Relevant
        Servicing Criteria. With respect to a Servicing Function Participant engaged
        by
        the Master Servicer, the Securities Administrator, the Indenture Trustee
        (in its
        capacity as Custodian) or each Servicer, the term “Relevant Servicing Criteria”
may refer to a portion of the Relevant Servicing Criteria applicable to such
        parties.

       

      “Relief
        Act”:
        The
        Servicemembers Civil Relief Act, as amended.

       

      “Relief
        Act Reductions”:
        With
        respect to any Payment Date and any Mortgage Loan as to which there has been
        a
        reduction in the amount of interest collectible thereon for the most recently
        ended Due Period as a result of the application of the Relief Act or similar
        state or local law, the amount, if any, by which (i) interest collectible
        on
        that Mortgage Loan during such Due Period is less than (ii) one month’s interest
        on the Scheduled Principal Balance of such Mortgage Loan at the Loan Rate
        for
        such Mortgage Loan before giving effect to the application of the Relief
        Act or
        similar state or local law.

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      “Remittance
        Report”:
        The
        Master Servicer’s Remittance Report to the Securities Administrator providing
        information with respect to each Mortgage Loan which is provided no later
        than
        the second Business Day following each Determination Date and which shall
        contain such information as may be agreed upon by the Master Servicer and
        the
        Securities Administrator and which shall be sufficient to enable the Securities
        Administrator to prepare the related Payment Date Statement.

       

      “REO
        Account”:
        The
        account or accounts maintained by a Servicer in respect of an REO Property
        pursuant to the related Servicing Agreement.

       

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

       

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

       

      “REO
        Principal Amortization”:
        With
        respect to any REO Property, for any calendar month, the excess, if any,
        of (a)
        the aggregate of all amounts received in respect of such REO Property during
        such calendar month, whether in the form of rental income, sale proceeds
        (including, without limitation, that portion of the Clean-Up Call Purchase
        Price
        paid in connection with a purchase of all of the Mortgage Loans and REO
        Properties pursuant to Section 10.01 hereof that is allocable to such REO
        Property) or otherwise, net of any portion of such amounts (i) payable pursuant
        to the applicable provisions of the related Servicing Agreement in respect
        of
        the proper operation, management and maintenance of such REO Property or
        (ii)
        payable or reimbursable to the applicable Servicer pursuant to the applicable
        provisions of the related Servicing Agreement for unpaid Master Servicing
        Fees
        and Servicing Fees in respect of the related Mortgage Loan and unreimbursed
        Servicing Advances and Advances in respect of such REO Property or the related
        Mortgage Loan, over (b) the REO Imputed Interest in respect of such REO
        Property for such calendar month.

       

      “REO
        Property”:
        A
        Mortgaged Property acquired by the applicable Servicer on behalf of the Issuer
        through foreclosure or deed-in-lieu of foreclosure in accordance with the
        applicable provisions of the related Servicing Agreement.

       

      “Reportable
        Event”:
        As
        defined in Section 3.19(c).

       

      “Reporting
        Servicer”:
        As
        defined in Section 3.19(b).

       

      “Request
        for Release”:
        A
        release signed by a Servicing Officer, in the form of Exhibit F attached
        hereto.

       

      
        
          
          

        

        
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      “Reserve
        Fund”:
        The
        reserve fund created and maintained by the Securities Administrator pursuant
        to
        Section 4.06 which shall be entitled “Reserve Fund,
        [     ], as Securities Intermediary for
        [     ], as Indenture Trustee, in trust for the Holders
        of the Thornburg Mortgage Securities Trust [     ]
        Mortgage-Backed Notes Series [     ], and which must be
        an Eligible Account.

       

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

       

      “Responsible
        Officer”:
        When
        used with respect to the Indenture Trustee or the Securities Administrator,
        any
        director, any vice president, any assistant vice president, any associate
        assigned to the Corporate Trust Office (or similar group) or any other officer
        of the Indenture Trustee or Securities Administrator, as applicable, customarily
        performing functions similar to those performed by any of the above designated
        officers, in each case, having direct responsibilities for the administration
        of
        the Operative Agreements to which the Indenture Trustee or the Securities
        Administrator is a party and, with respect to a particular matter, to whom
        such
        matter is referred because of such officer’s knowledge of and familiarity with
        the particular subject.

       

      “Restricted
        Classes”:
        As
        defined in Section 5.01(e).

       

      “Retained
        Interest”:
        As to
        any Employee Loans originated by Thornburg and each Payment Date, interest
        accrued on the Principal Balance thereof at the Retained Rate.

       

      “Retained
        Interest Holder”:
        With
        respect to each Employee Loan, the Initial Seller or any successor in interest
        by assignment or otherwise.

       

      [“Retained
        Mortgage Files”:
        As to
        each [     ] Mortgage Loan, the file consisting of the
        Mortgage Loan Documents listed as items (iii), and (vi) through (viii) following
        the definition of “Mortgage File” in Section 2.01 that are to be delivered to
        the Indenture Trustee, as Custodian subsequent to a Document Transfer
        Event.]

       

      “Retained
        Rate”:
        As of
        the Cut-off Date, and for each Due Period thereafter, 0.00% per annum;
provided,
        however,
        if the
        related Mortgagor of the Employee Loan ceases to be an employee or a director
        of
        Thornburg or its Affiliates, the amount of the increase in the per annum
        rate
        set forth in the related Mortgage Note.

       

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

       

      “Sarbanes-Oxley
        Certification”:
        A
        written certification covering the activities of all Servicing Function
        Participants (excluding the Custodian) and the Servicers and signed by an
        officer of the Master Servicer that complies with (i) the Sarbanes-Oxley
        Act of
        2002, as amended from time to time, and (ii) Exchange Act Rules 13a-14(d)
        and
        15d-14(d), as in effect from time to time; provided that if, after the Closing
        Date (a) the Sarbanes-Oxley Act of 2002 is amended, (b) the Rules referred
        to in
        clause (ii) are modified or superseded by any subsequent statement, rule
        or
        regulation of the Commission or any statement of a division thereof, or (c)
        any
        future releases, rules and regulations are published by the Securities and
        Exchange Commission from time to time pursuant to the Sarbanes-Oxley Act
        of
        2002, which in any such case affects the form or substance of the required
        certification and results in the required certification being, in the reasonable
        judgment of the Master Servicer, materially more onerous than the form of
        the
        required certification as of the Closing Date, the Sarbanes-Oxley Certification
        shall be as agreed to by the Master Servicer, the Depositor and the Initial
        Seller following a negotiation in good faith to determine how to comply with
        any
        such new requirements.

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      “Scheduled Principal
        Balance”:
        With
        respect to any Mortgage Loan: (a) as of any date of determination up to and
        including the Payment Date on which the proceeds, if any, of a Liquidation
        Event
        with respect to such Mortgage Loan would be distributed, the outstanding
        principal balance of such Mortgage Loan as of the Cut-Off Date [(including
        any
        Deferred Interest added to such balance on or prior to the Cut-Off Date)],
        as
        shown in the Mortgage Loan Schedule [plus
        any
        amount of Deferred Interest added to such balance subsequent to the Cut-Off
        Date], minus,
        in the
        case of each Mortgage Loan, the sum of (i) the principal portion of each
        Monthly Payment due on a Due Date subsequent to the Cut-Off Date, whether
        or not
        received, (ii) all Principal Prepayments received after the Cut-Off Date,
        to the extent distributed pursuant to Section 5.01 before such date of
        determination and (iii) all Liquidation Proceeds and Insurance Proceeds
        applied by the applicable Servicer as recoveries of principal in accordance
        with
        the applicable provisions of the related Servicing Agreement, to the extent
        distributed pursuant to Section 5.01 before such date of determination; and
        (b) as of any date of determination subsequent to the Payment Date on which
        the proceeds, if any, of a Liquidation Event with respect to such Mortgage
        Loan
        would be distributed, zero. With respect to any REO Property: (x) as of any
        date of determination up to and including the Payment Date on which the
        proceeds, if any, of a Liquidation Event with respect to such REO Property
        would
        be distributed, an amount (not less than zero) equal to the Scheduled Principal
        Balance of the related Mortgage Loan as of the date on which such REO Property
        was acquired on behalf of the Trust, minus the aggregate amount of REO Principal
        Amortization in respect of such REO Property for all previously ended calendar
        months, to the extent distributed pursuant to Section 5.01 before such date
        of determination; and (y) as of any date of determination subsequent to the
        Payment Date on which the proceeds, if any, of a Liquidation Event with respect
        to such REO Property would be distributed, zero.

       

      “Securities”:
        Collectively, the Notes and the Ownership Certificates.

       

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

       

      “Securities
        Administrator”:
        [     ], or its successor in interest, or any successor
        securities administrator appointed as herein provided.

       

      “Securities
        Intermediary”:
        The
        Person acting as Securities Intermediary under this Agreement (which is
        [     ]), its successor in interest, and any successor
        Securities Intermediary appointed pursuant to Section 4.08.

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      “Security
        Agreement”:
        With
        respect to any Cooperative Loan, the agreement between the owner of the related
        Cooperative Shares and the originator of the related Mortgage Note that defines
        the terms of the security interest in such Cooperative Shares and the related
        Proprietary Lease.

       

      “Security
        Entitlement”:
        The
        meaning specified in Section 8-102(a)(17) of the New York UCC. 

       

      “Seller”:
        [TMFI], in its capacity as seller under the [TSC] Mortgage Loan Purchase
        Agreement and this Agreement.

       

      “Sellers”:
        The
        Initial Seller and the Seller.

       

      “Senior
        Credit Support Depletion Date”:
        The
        date on which the Class Principal Amount of each Class of Subordinate Notes
        has
        been reduced to zero.

       

      “Senior
        Percentage”:
        With
        respect to any Payment Date and a Mortgage Loan Group, the percentage equivalent
        of a fraction (which shall not be greater than 100%) the numerator of which
        is
        the aggregate of the Class Principal Amounts of the Class or Classes of Offered
        Notes relating to that Mortgage Loan Group immediately prior to such Payment
        Date and the denominator of which is the Scheduled Principal Balance of all
        Mortgage Loans in that Mortgage Loan Group for that Payment Date; provided, however,
        that on
        any Payment Date after a Senior Termination Date has occurred with respect
        to a
        Mortgage Loan Group, the Senior Percentage for such Mortgage Loan Group will
        be
        equal to 0%; and, provided,
        further,
        that on
        any Payment Date after a Senior Termination Date has occurred with respect
        to
        two Mortgage Loan Groups, the Senior Percentage of the remaining Offered
        Notes
        shall be the percentage equivalent of a fraction, the numerator of which
        is the
        aggregate of the Class Principal Amounts of the remaining Class or Classes
        of
        Offered Notes immediately prior to such date and the denominator of which
        is the
        aggregate of the Class Principal Amounts of all Classes of Notes, immediately
        prior to such date.

       

      “Senior
        Prepayment Percentage”:
        For
        each Mortgage Loan Group and any Payment Date occurring before
        [     ], [     ]%. Except as
        provided herein, the Senior Prepayment Percentage for each Mortgage Loan
        Group
        and any Payment Date occurring on or after the seventh anniversary of the
        first
        Payment Date will be as follows: (i) from [     ]
        through [     ], the related Senior Percentage plus
        [     ]% of the related Subordinate Percentage for such
        Payment Date; (ii) from [     ] through
        [     ] the related Senior Percentage plus
        [     ]% of the related Subordinate Percentage for such
        Payment Date; (iii) from [     ] through
        [     ], the related Senior Percentage plus
        [     ]% of the related Subordinate Percentage for such
        Payment Date; (iv) from [     ] through
        [     ], the related Senior Percentage plus
        [     ]% of the related Subordinate Percentage for such
        Payment Date; and (v) from and after [     ], the
        related Senior Percentage for such Payment Date; provided,
        however, that
        there shall be no reduction in the Senior Prepayment Percentage for any Mortgage
        Loan Group on a Payment Date, unless the Step Down Conditions are satisfied
        with
        respect to such Payment Date; and provided,
        further,
        that if
        on any Payment Date occurring on or after the Payment Date in
        [     ], the Senior Percentage for such Mortgage Loan
        Group exceeds the initial Senior Percentage for such Mortgage Loan Group,
        the
        Senior Prepayment Percentage for each Mortgage Loan Group for such Payment
        Date
        will again equal [     ]%.

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

      Notwithstanding
        the above, (i) if on any Payment Date prior to [     ]
        the Two Times Test is satisfied, the Senior Prepayment Percentage for each
        Mortgage Loan Group will equal the related Senior Percentage for such Payment
        Date plus [     ]% of an amount equal to the
        Subordinate Percentage for such Payment Date and (ii) if
        on any
        Payment Date in or after [     ] the Two Times Test is
        satisfied, the Senior Prepayment Percentage for each Mortgage Loan Group
        will
        equal the Senior Percentage for such Payment Date; provided,
        however,
        on any
        Payment Date after a Senior Termination Date has occurred with respect to
        a
        Mortgage Loan Group, the Senior Prepayment Percentage will equal 0% for the
        related Mortgage Loan Group.

       

      “Senior
        Principal Distribution Amount”:
        For
        each Mortgage Loan Group and any Payment Date, the sum of: 

       

      (1) the
        product of (a) the related Senior Percentage, (b) the principal portion of
        each
        Monthly Payment on each Mortgage Loan in the related Mortgage Loan Group
        due
        during the related Due Period and [(c) in the case of the Group
        [     ] Mortgage Loans, the Group
        [     ] Deferred Interest Adjustment Percentage for
        such Payment Date];

       

      (2) the
        product of (a) the related Senior Prepayment Percentage, (b) each of the
        following amounts: (i) the principal portion of each full and partial Principal
        Prepayment made by a borrower on a Mortgage Loan in the related Mortgage
        Loan
        Group during the related Prepayment Period, (ii) each other unscheduled
        collection, including any Subsequent Recovery, Insurance Proceeds and Net
        Liquidation Proceeds (other than with respect to any Mortgage Loan in the
        related Mortgage Loan Group that was finally liquidated during the related
        Prepayment Period), representing or allocable to recoveries of principal
        of
        Mortgage Loans received during the related Prepayment Period and (iii) the
        principal portion of all proceeds of the purchase (or, in the case of a
        Qualified Substitution Mortgage Loan, amounts representing a Substitution
        Adjustment) of any Mortgage Loan in the related Mortgage Loan Group actually
        received by the Securities Administrator during the related Prepayment Period
        and (c) [in the case of the Group [     ] Mortgage
        Loans, the Group [     ] Deferred Interest Adjustment
        Percentage for such Payment Date;]

       

      (3) with
        respect to unscheduled recoveries allocable to principal of any Mortgage
        Loan in
        the related Mortgage Loan Group that was finally liquidated during the related
        Prepayment Period, the lesser of (a) the related Net Liquidation Proceeds
        allocable to principal and (b) the product of (i) the related Senior Prepayment
        Percentage for that date, (ii) the remaining Scheduled Principal Balance
        of such
        Mortgage Loan at the time of liquidation and [(iii) in the case of the Group
        [     ] Mortgage Loans, the Group
        [     ] Deferred Interest Adjustment Percentage for
        such Payment Date]; and

       

      (4) any
        amounts described in clauses (1) through (3) for any previous Payment Date
        that
        remain unpaid.

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

      “Senior
        Termination Date”:
        For
        any Mortgage Loan Group, the date on which the aggregate Class Principal
        Amount
        of the related Class or Classes of Offered Notes is reduced to
        zero.

       

      “Servicer”:
        Each
        of the several primary servicers of the Mortgage Loans as set forth in Exhibit
        N
        hereto and any successors thereto or replacement therefor. 

       

      “Servicer
        Remittance Date”:
        With
        respect to each Mortgage Loan, the [   ]th day of each month, or
        the next Business Day if such [   ]th day is not a Business Day
        or if provided in the related Servicing Agreement, the preceding Business
        Day if
        such [   ]th day is not a Business Day.

       

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

       

      “Servicing
        Account”:
        Any
        account established and maintained for the benefit of the Master Servicer
        or the
        Trust by a Servicer with respect to the related Mortgage Loans and any REO
        Property, pursuant to the terms of the respective Servicing
        Agreement.

       

      “Servicing
        Advances”:
        With
        respect to any Servicer or the Master Servicer (including the Indenture Trustee
        in its capacity as successor Master Servicer), all customary, reasonable
        and
        necessary “out of pocket” costs and expenses (including reasonable attorneys’
fees and expenses) incurred by any Servicer or the Master Servicer in the
        performance of its servicing obligations hereunder, including, but not limited
        to, the cost of (i) the preservation, restoration, inspection and protection
        of
        the Mortgaged Property, (ii) any enforcement or judicial proceedings, including
        foreclosures, (iii) the management and liquidation of the REO Property and
        (iv)
        compliance with the obligations under Article III hereof or the related
        Servicing Agreements.

       

      “Servicing
        Agreement”:
        The
        servicing agreements relating to the Mortgage Loans as set forth in Exhibit
        N
        hereto, servicing arrangements for any Mortgage Loans under the Seller’s
        Correspondent Sellers Guide, and any other servicing agreement entered into
        between a successor servicer and the Seller or the Indenture Trustee on behalf
        of the Trust pursuant to the terms hereof.

       

      “Servicing
        Criteria”:
        The
        criteria set forth in paragraph (d) of Item 1122 of Regulation AB, as such
        may
        be amended from time to time.

       

      “Servicing
        Fee”:
        With
        respect to each Servicer and each Mortgage Loan serviced by such Servicer
        and
        for any calendar month, the fee payable to such Servicer determined pursuant
        to
        the related Servicing Agreement.

       

      “Servicing
        Fee Rate”:
        With
        respect to each Mortgage Loan, the per annum servicing fee rate set forth
        on the
        Mortgage Loan Schedule.

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

      “Servicing
        Function Participant”:
        Any
        Sub-Servicer or Subcontractor, other than each Servicer, the Master Servicer,
        the Trustee, the Custodian and the Securities Administrator, in each case
        that
        is participating in the servicing function within the meaning of Regulation
        AB.

       

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

       

      [“Seven-Year
        Hybrid Mortgage Loans”:
        The
        Mortgage Loans identified as such on Schedule I hereto.]

       

      “Significant
        Modification”:
        As
        defined in Section 3.25.

       

      “Significant
        Modification Loan”:
        As
        defined in Section 3.25.

       

      “S&P”:
        Standard & Poor’s Rating Services (a division of The McGraw-Hill Companies,
        Inc.).

       

      “Stated
        Maturity Date”:
        As
        defined in the Indenture.

       

      “Step
        Down Conditions”:
        As of
        any Payment Date on which any decrease in any Senior Prepayment Percentage
        may
        apply, (i) the outstanding Principal Balance of all Mortgage Loans 60 days
        or
        more Delinquent (including Mortgage Loans in REO and foreclosure), averaged
        over
        the preceding six month period, as a percentage of the aggregate of the Class
        Principal Amount of the Classes of Subordinate Notes on such Payment Date,
        does
        not equal or exceed [   ]% and (ii) cumulative Realized
        Losses with respect to all of the Mortgage Loans do not exceed:

       

      
        	 	
                ·

              	
                for
                  any Payment Date on or after the seventh anniversary until the
                  eighth
                  anniversary of the first Payment Date, [   ]% of the
                  aggregate Class Principal Amounts of the Subordinate Notes as of
                  the
                  Closing Date,

              

      

       

      
        	 	
                ·

              	
                for
                  any Payment Date on or after the eighth anniversary until the ninth
                  anniversary of the first Payment Date, [   ]% of the
                  aggregate Class Principal Amounts of the Subordinate Notes as of
                  the
                  Closing Date,

              

      

       

      
        	 	
                ·

              	
                for
                  any Payment Date on or after the ninth anniversary until the tenth
                  anniversary of the first Payment Date, [   ]% of the
                  aggregate Class Principal Amounts of the Subordinate Notes as of
                  the
                  Closing Date,

              

      

       

      
        	 	
                ·

              	
                for
                  any Payment Date on or after the tenth anniversary until the eleventh
                  anniversary of the first Payment Date, [   ]% of the
                  aggregate Class Principal Amounts of the Subordinate Notes as of
                  the
                  Closing Date, and

              

      

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

      
        	 	
                ·

              	
                for
                  any Payment Date on or after the eleventh anniversary of the first
                  Payment
                  Date, [   ]% of the aggregate Class Principal Amounts of
                  the Subordinate Notes as of the Closing
                  Date.

              

      

       

      “Strike
        Rate”:
        For
        the Yield Maintenance Agreement relating to the Group
        [     ] Notes, the excess of (i) the related Class
        [     ] Available Funds Cap Rate over (ii) the weighted
        average of the Class [     ] Margin and the Class
        [     ] Margin (weighted on the basis of the related
        Notes’ Class Principal Amounts for the immediately preceding Payment Date, after
        giving effect to distributions and allocations of Realized Losses and Subsequent
        Recoveries on such Payment Date, or as of the Closing Date for the first
        Payment
        Date).

       

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

       

      “Subordinate
        Component”:
        For
        any Payment Date and with respect to any Mortgage Loan Group, the product
        of (a)
        the excess, if any, of the aggregate Scheduled Principal Balances of the
        Mortgage Loans in the related Mortgage Loan Group, as of the first day of
        the
        related Due Period, plus
        any
        amounts on deposit in the Reserve Fund attributable to such Mortgage Loan
        Group,
        as of such Payment Date over
        the
        aggregate Class Principal Amount of the related Offered Notes immediately
        prior
        to such Payment Date [plus,
        solely
        in the case of the Group [     ] Mortgage Loans, the
        aggregate Net Deferred Interest for all prior Payment Dates in excess of
        amounts
        paid to the holder of the Ownership Certificate on a prior Payment Date];
        multiplied by (b) the quotient of (i) the aggregate Class Principal Amount
        of
        the Subordinate Notes immediately prior to such Payment Date and (ii) the
        sum of
        the amounts described in clause (a) for each Mortgage Loan Group.

       

      “Subordinate
        Note”:
        Any
        one of the Class B-[     ] Notes.

       

      “Subordinate
        Percentage”:
        For
        each Mortgage Loan Group and any Payment Date, the difference between 100%
        and
        the related Senior Percentage for such Payment Date; provided,
        however, that
        on
        any Payment Date after a Senior Termination Date has occurred with respect
        to
        two Mortgage Loan Groups, the Subordinate Percentage will represent the entire
        interest of the Subordinate Notes in the Mortgage Loans and will be equal
        to the
        difference between 100% and the related Senior Percentage for such Payment
        Date.

       

      “Subordinate
        Prepayment Percentage”:
        For
        each Mortgage Loan Group and any Payment Date, the difference between 100%
        and
        the Senior Prepayment Percentage for such Mortgage Loan Group for such Payment
        Date.

       

      “Subordinate
        Principal Distribution Amount”:
        For
        each Mortgage Loan Group and any Payment Date, an amount equal to the sum
        of:

       

      (1) the
        product of (a) the related Subordinate Percentage, (b) the principal portion
        of
        each Monthly Payment on each Mortgage Loan in the related Mortgage Loan Group
        due during the related Due Period and [(c) in the case of the Group
        [     ] Mortgage Loans, the Group
        [     ] Deferred Interest Adjustment Percentage for
        such Payment Date];

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

      (2) the
        product of (a) the related Subordinate Prepayment Percentage, (b) each of
        the
        following amounts: (i) the principal portion of each full and partial Principal
        Prepayment made by a borrower on a Mortgage Loan in the related Mortgage
        Loan
        Group during the related Prepayment Period, (ii) each other unscheduled
        collection, including any Subsequent Recovery, Insurance Proceeds and Net
        Liquidation Proceeds (other than with respect to any related Mortgage Loan
        that
        was finally liquidated during the related Prepayment Period), representing
        or
        allocable to recoveries of principal of Mortgage Loans received during the
        related Prepayment Period and (iii) the principal portion of all proceeds
        of the
        purchase (or, in the case of a Qualified Substitute Mortgage Loan, amounts
        representing a Substitution Adjustment) of any Mortgage Loan in the related
        Mortgage Loan Group actually received by the Securities Administrator with
        respect to the related Prepayment Period and [(c) in the case of the Group
        [     ] Mortgage Loans, the Group [   ]
        Deferred Interest Adjustment Percentage for such Payment Date];

       

      (3) with
        respect to unscheduled recoveries allocable to principal of any Mortgage
        Loan in
        the related Mortgage Loan Group that was finally liquidated during the related
        Prepayment Period, the related Net Liquidation Proceeds allocable to principal
        (to the extent not distributed pursuant to subsection (3) of the definition
        of
        Senior Principal Distribution Amount for the related Mortgage Loan Group);
        and

       

      (4) any
        amounts described in clauses (1) through (3) for any previous Payment Date
        that
        remain unpaid.

       

      “Sub-Servicer”:
        Any
        Person that (i) services Mortgage Loans on behalf of any Servicer, the Master
        Servicer, the Securities Administrator, the Indenture Trustee or the Custodian
        and (ii) is responsible for the performance (whether directly or through
        sub-servicers or Subcontractors) of Servicing functions required to be performed
        under this Agreement, any related Servicing Agreement or any sub-servicing
        agreement that are identified in Item 1122(d) of Regulation AB.

       

      “Subsequent Recovery”:
        With
        respect to any Payment Date and a Mortgage Loan that became a Liquidated
        Mortgage Loan in a month preceding the related Prepayment Period to such
        Payment
        Date and with respect to which the related Realized Loss was allocated to
        one or
        more Classes of Notes, an amount received in respect of such Liquidated Mortgage
        Loan during the related Prepayment Period, net of any reimbursable
        expenses.

       

      “Substitution
        Adjustment”:
        As
        defined in Section 2.04(d) hereof.

       

      [“Surety
        Bond”:
        [     ].]

       

      “Swap
        Proceeds Account”:
        The
        account maintained by the Auction Administrator pursuant to the Auction
        Administration Agreement.

       

      
        
          
          

        

        
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      “Telerate
        Page 3750”:
        The
        display currently so designated as “Page 3750” on the Dow Jones Telerate Service
        (or such other page selected by the Master Servicer as may replace Page 3750
        on
        that service for the purpose of displaying daily comparable rates on
        prices).

       

      [“Ten-Year
        Hybrid Mortgage Loans”:
        The
        Mortgage Loans identified as such on Schedule I hereto.]

       

      “Thornburg”:
        Thornburg Mortgage Home Loans, Inc., a Delaware corporation, and its successors
        and assigns.

       

      [“Three-Year
        Hybrid Mortgage Loans”:
        The
        Mortgage Loans identified as such on Schedule I hereto.]

       

      “TMFI”:
        Thornburg Mortgage Funding, Inc., a Delaware corporation, and its successors
        and
        assigns.

       

      “[TMFI]
        Contractual Rights”:
        As
        defined in the Preliminary Statement.

       

      “TMFI
        Mortgage Loan Purchase Agreement”:
        The
        mortgage loan purchase agreement between the Initial Seller and TMFI dated
        as of
        [     ], regarding the transfer of the Mortgage Loans
        by Initial Seller to TMFI including the Initial Seller’s rights and interest in
        the Servicing Agreements listed in Exhibit N hereto.

       

      “TMI”:
        Thornburg Mortgage, Inc., a Maryland corporation, and its successors and
        assigns.

       

      “Trust”:
        The
        Issuer. 

       

      “Trust Account”:
        The
        Collection Account, the Note Payment Account, each Servicing Account, the
        Swap
        Proceeds Account, the Auction Proceeds Account, the Reserve Fund, the Final
        Maturity Reserve Account and the Collateral Account, as the context
        requires.

       

      “Trust
        Account Property”:
        The
        Trust Accounts, the Certificate Distribution Account, all amounts and
        investments held from time to time in the Trust Accounts, the Certificate
        Distribution Account (whether in the form of deposit accounts, physical
        property, book-entry securities, uncertificated securities, securities
        entitlements, investment property or otherwise) and all proceeds of the
        foregoing.

       

      “Trust
        Agreement”: The
        Original Trust Agreement as amended and restated by the Amended and Restated
        Trust Agreement dated [     ] by and among the
        Depositor, the Owner Trustee and the Securities Administrator.

       

      “Trust
        Estate”:
        The
        assets subject to this Agreement and the Indenture, (including those transferred
        by the Depositor to the Issuer) and pledged by the Issuer to the Indenture
        Trustee, which assets consist of all accounts, accounts receivable, contract
        rights, general intangibles, chattel paper, instruments, documents, money,
        deposit accounts, certificates of deposit, goods, notes, drafts, letters
        of
        credit, advices of credit, investment property, uncertificated securities
        and
        rights to payment of any and every kind consisting of, arising from or relating
        to any of the following: (i) such Mortgage Loans as from time to time are
        subject to this Agreement, together with the Mortgage Files relating thereto,
        together with all collections thereon (including any Insurance Proceeds,
        Liquidation Proceeds or other recoveries) and proceeds thereof (but not
        including any Prepayment Penalty Amounts), (ii) any REO Property, together
        with
        all collections thereon (including any Insurance Proceeds, Liquidation Proceeds
        or other recoveries) and proceeds thereof, (iii) the Indenture Trustee’s rights
        with respect to the Mortgage Loans under all insurance policies required
        to be
        maintained pursuant to this Agreement and any proceeds thereof, (iv) the
        Depositor’s rights under the Mortgage Loan Purchase Agreements (including any
        security interest created thereby); (v) the Trust Accounts (subject to the
        last
        sentence of this definition), any REO Account and such assets that are deposited
        therein from time to time and any investments thereof, together with any
        and all
        income, proceeds and payments with respect thereto, (vi) all right, title and
        interest of the Issuer in and to each security or pledge agreement or guarantee
        in respect of Additional Collateral (including the Surety Bond supporting
        any
        Additional Collateral Mortgage Loan, the Issuer’s security interest in and to
        any Additional Collateral and the Issuer’s rights to require payment in any
        Additional Collateral Mortgage Loan pursuant to the related Servicing
        Agreement), (vii) all right, title and interest of the Issuer in and to
        each of the Servicing Agreements, (viii) all right, title and interest of
        the
        Issuer under the Administration Agreement and the Yield Maintenance Agreements
        and (ix) all proceeds of the foregoing. Notwithstanding the foregoing, however,
        the Trust Fund specifically excludes (1) all payments and other collections
        of
        interest and principal due on the Mortgage Loans on or before the Cut-Off
        Date
        and principal received before the Cut-Off Date (except any principal collected
        as part of a payment due after the Cut-Off Date), (2) all income and gain
        realized from Permitted Investments of funds on deposit in the Collection
        Account and the Note Payment Account, (3) any Prepayment Penalty Amounts
        and (4)
        any Retained Interest.

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

      “[TSC]
        Mortgage Loan Purchase Agreement”:
        The
        mortgage loan purchase agreement between the Seller and the Depositor, dated
        as
        of [     ] regarding the sale of the Mortgage Loans,
        the Contractual Rights and the [TMFI] Contractual Rights by the Seller to
        the
        Depositor.

       

      “Two
        Times Test”:
        As to
        any Payment Date, (i) the Aggregate Subordinate Percentage is at least two
        times
        the Aggregate Subordinate Percentage as of the Closing Date; (ii) the aggregate
        of the Principal Balances of all Mortgage Loans Delinquent 60 days or more
        (including Mortgage Loans in REO and foreclosure), averaged over the preceding
        six-month period, as a percentage of the aggregate of the Class Principal
        Amounts of the Subordinate Notes, does not equal or exceed
        [     ]%; and (iii) on or after the Payment Date in
        [     ], cumulative Realized Losses do not exceed
        [     ]% of the Original Subordinated Principal Amount,
        or prior to the Payment Date in [     ], cumulative
        Realized Losses do not exceed [     ]% of the Original
        Subordinated Principal Amount.

       

      “Undercollateralized
        Group”:
        With
        respect to any Payment Date, any Group [     ] Notes as
        to which the aggregate Class Principal Amount thereof, after giving effect
        to
        distributions pursuant to Section 5.01(a) on such Payment Date, is greater
        than
        the sum of (i) the Scheduled Principal Balances of the related Mortgage Loan
        Group as of the last day of the related Due Period and (ii) amounts, if any,
        then on deposit in the Reserve Fund with respect to such Group or Groups
        of
        Notes for such Payment Date. 

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

      “Undercollateralization
        Payment”:
        As
        defined in Section 5.01(f)(ii).

       

      “Uniform
        Commercial Code”:
        The
        Uniform Commercial Code as in effect in any applicable jurisdiction from
        time to
        time.

       

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

       

      “Value”:
        With
        respect to any Mortgage Loan and the related Mortgaged Property, the lesser
        of:

       

      (i) the
        value
        of such Mortgaged Property as determined by an appraisal, or an automated
        valuation model (AVM) in lieu of an appraisal, made for the originator of
        the
        Mortgage Loan at the time of origination of the Mortgage Loan by an appraiser
        who met the minimum requirements of Title XI of the Financial Institution
        Reform, Recovery and Enforcement Act of 1989 and the regulations promulgated
        thereunder; and 

       

      (ii) the
        purchase price paid for the related Mortgaged Property by the Mortgagor with
        the
        proceeds of the Mortgage Loan; 

       

      provided,
        however,
        that in
        the case of a Refinancing Mortgage Loan, such value of the Mortgaged Property
        is
        generally based solely upon the value determined by an appraisal made for
        the
        originator of such Refinancing Mortgage Loan at the time of origination by
        an
        appraiser who met the minimum requirements of Title XI of the Financial
        Institution Reform, Recovery and Enforcement Act of 1989 and the regulations
        promulgated thereunder.

       

      “Voting
        Rights”:
        The
        portion of the voting rights of all of the Notes which is allocated to such
        Note. [99]% of the voting rights shall be allocated among the Classes of
        Notes
        (other than any Interest Only Notes [and the Class [   ] Notes),
pro
        rata,
        based
        on a fraction, expressed as a percentage, the numerator of which is the Class
        Principal Amount of such Class [     ] and the
        denominator of which is the aggregate of the Class Principal Amounts then
        outstanding and 1% of the voting rights shall be allocated to the Holders
        of any
        Interest Only Notes. The voting rights allocated to a Class of Notes shall
        be
        allocated among all Holders of such Class, pro
        rata,
        based
        on a fraction the numerator of which is the Note Principal Amount or Note
        Notional Amount of each Note of such Class [     ] and
        the denominator of which is the Class Principal Amount or Class Notional
        Amount
        of such Class; provided,
        however,
        that
        any Note registered in the name of the Depositor, the Master Servicer, the
        Securities Administrator, the Indenture Trustee, the Owner Trustee or any
        of
        their respective affiliates shall not be included in the calculation of Voting
        Rights.

       

      “Writedown
        Amount”:
        The
        reduction described in Section 5.03(c).

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

      “Yield
        Maintenance Agreement”:
        Any of
        the Group [     ] Yield Maintenance Agreement, the
        Group [     ] Yield Maintenance Agreement, as
        applicable. 

       

      “Yield
        Maintenance Amount”:
        For
        any Payment Date, the amount, if any, to be paid by the Yield Maintenance
        Counterparty to the Securities Administrator pursuant to a Yield Maintenance
        Agreement, as calculated by the Yield Maintenance Counterparty based on
        information in the Payment Date Statement delivered to it pursuant to Section
        5.04.

       

      “Yield
        Maintenance Counterparty”:
        [     ].

       

      SECTION
        1.02. Accounting.

       

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

       

      ARTICLE
        II

       

      CONVEYANCE
        OF MORTGAGE LOANS;

       

      SECTION
        2.01. Conveyance
        of Mortgage Loans.

       

      In
        consideration of the Issuer’s delivery of the Notes and the Ownership
        Certificates to the Depositor or its designee, and concurrently with the
        execution and delivery of this Agreement, the Depositor does hereby transfer,
        assign, set over and otherwise convey to the Issuer without recourse, subject
        to
        Sections 2.02, 2.03, 2.04 and 2.05, all of the right, title and interest
        of the
        Depositor in and to the Mortgage Loans and the other assets constituting
        the
        Trust Estate. To facilitate the pledge of the Trust Estate to the Indenture
        Trustee pursuant to the Indenture, the Issuer hereby directs the Depositor
        to
        assign and deliver the Trust Estate directly to the Indenture Trustee. The
        Indenture Trustee declares that, subject to the review provided for in Section
        2.02, it has received and shall hold the Trust Estate, as Indenture Trustee,
        in
        trust, for the benefit and use of the Securityholders and for the purposes
        and
        subject to the terms and conditions set forth in this Agreement and the
        Indenture. Concurrently with such receipt, the Issuer has issued and delivered
        the Securities to or upon the order of the Depositor, in exchange for the
        Trust
        Estate.

       

      The
        foregoing sale, transfer, assignment, set-over, deposit and conveyance does
        not
        and is not intended to result in creation or assumption by the Indenture
        Trustee
        of any obligation of the Depositor, the Sellers or any other Person in
        connection with the Mortgage Loans or any other agreement or instrument relating
        thereto except as specifically set forth herein. Upon the issuance of the
        Notes
        and the Ownership Certificate, ownership in the Trust Estate shall be vested
        in
        the Issuer, subject to the lien created by the Indenture in favor of the
        Indenture Trustee, for the benefit of the Noteholders. 

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

      For
        purposes of complying with the requirements of the Asset-Backed Securities
        Facilitation Act of the State of Delaware, 6 Del. C. § 2701A, et seq. (the
“Securitization
        Act”),
        each
        of the parties hereto hereby agrees that:

       

      
        	 	
                (i)

              	
                any
                  property, assets or rights purported to be transferred, in whole
                  or in
                  part, by the Depositor pursuant to this Agreement shall be deemed
                  to no
                  longer be the property, assets or rights of the
                  Depositor;

              

      

       

      
        	 	
                (ii)

              	
                none
                  of the Depositor, its creditors or, in any insolvency proceeding
                  with
                  respect to the Depositor or the Depositor’s property, a bankruptcy
                  trustee, receiver, debtor, debtor in possession or similar person,
                  to the
                  extent the issue is governed by Delaware law, shall have any rights,
                  legal
                  or equitable, whatsoever to reacquire (except pursuant to a provision
                  of
                  this Agreement), reclaim, recover, repudiate, disaffirm, redeem
                  or
                  recharacterize as property of the Depositor any property, assets
                  or rights
                  purported to be transferred, in whole or in part, by the Depositor
                  pursuant to this Agreement (including the
                  Assignment);

              

      

       

      
        	 	
                (iii)

              	
                in
                  the event of a bankruptcy, receivership or other insolvency proceeding
                  with respect to the Depositor or the Depositor’s property, to the extent
                  the issue is governed by Delaware law, such property, assets and
                  rights
                  shall not be deemed to be part of the Depositor’s property, assets, rights
                  or estate; and

              

      

       

      
        	 	
                (iv)

              	
                the
                  transaction contemplated by this Agreement shall constitute a
                  “securitization transaction” as such term is used in the Securitization
                  Act.

              

      

       

      In
        connection with such transfer and assignment, the Initial Seller, on behalf
        of
        the Seller, the Depositor and the Issuer, does hereby deliver on the Closing
        Date, unless otherwise specified in this Section 2.01, to, and deposit with
        the
        Indenture Trustee, or the Custodian as its designated agent, the following
        documents or instruments with respect to each Mortgage Loan (a “Mortgage
        File”)
        so
        transferred and assigned:

       

      
        	 	
                (i)

              	
                the
                  original Mortgage Note, endorsed either on its face or by allonge
                  attached
                  thereto in blank or in the following form: “Pay to the order of
                  [     ], as Indenture Trustee for Thornburg
                  Mortgage Securities Trust [     ], without
                  recourse” or in blank, or with respect to any lost Mortgage Note, an
                  original Lost Note Affidavit stating that the original mortgage
                  note was
                  lost, misplaced or destroyed, together with a copy of the related
                  mortgage
                  note; provided,
                  however,
                  that such substitutions of Lost Note Affidavits for original Mortgage
                  Notes may occur only with respect to Mortgage Loans the aggregate
                  Cut-Off
                  Date Principal Balance of which is less than or equal to 2% of
                  the Cut-Off
                  Date Aggregate Principal Balance;

              

      

       

      
        	 	
                (ii)

              	
                originals
                  or copies of any guarantee, security agreement or pledge agreement
                  relating to any Additional Collateral, if applicable, and executed
                  in
                  connection with the Mortgage Note, assigned to the Indenture Trustee
                  on
                  behalf of the Issuer;

              

      

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

      
        	 	
                (iii)

              	
                except
                  as provided below, for each Mortgage Loan that is not a MERS Mortgage
                  Loan, the original Mortgage or a copy thereof certified by the
                  public
                  recording office in which such Mortgage has been recorded, and
                  in the case
                  of each MERS Mortgage Loan, the original Mortgage or a copy thereof
                  certified by the public recording office in which such Mortgage
                  has been
                  recorded, noting the presence of the MIN for that Mortgage Loan
                  and either
                  language indicating that the Mortgage Loan is a MOM Loan if the
                  Mortgage
                  Loan is a MOM Loan, or if such Mortgage Loan was not a MOM Loan
                  at
                  origination, the original Mortgage or a copy thereof certified
                  by the
                  public recording office in which such Mortgage has been recorded
                  and the
                  assignment to MERS, in each case with evidence of recording thereon,
                  and
                  the original recorded power of attorney or a copy thereof certified
                  by the
                  public recording office in which such power of attorney has been
                  recorded,
                  if the Mortgage was executed pursuant to a power of attorney, with
                  evidence of recording thereon or, if such Mortgage or power of
                  attorney
                  has been submitted for recording but has not been returned from
                  the
                  applicable public recording office, the Initial Seller shall provide
                  a
                  certified copy of such Mortgage or power of attorney, as the case
                  may be,
                  a notation that the original of such unrecorded Mortgage or power
                  of
                  attorney, as applicable, has been forwarded to the public recording
                  office, or, in the case of an unrecorded Mortgage or power of attorney,
                  as
                  applicable, that has been lost, a copy thereof (certified as provided
                  for
                  under the laws of the appropriate jurisdiction) and a written Opinion
                  of
                  Counsel (delivered at the Initial Seller’s expense) acceptable to the
                  Indenture Trustee and the Depositor that an original recorded Mortgage
                  is
                  not required to enforce the Indenture Trustee’s interest in the Mortgage
                  Loan;

              

      

       

      
        	 	
                (iv)

              	
                the
                  original or a copy of each assumption, modification or substitution
                  agreement, if any, relating to the Mortgage Loans, or, as to any
                  assumption, modification or substitution agreement which cannot
                  be
                  delivered on or prior to the Closing Date because of a delay caused
                  by the
                  public recording office where such assumption, modification or
                  substitution agreement has been delivered for recordation, a photocopy
                  of
                  such assumption, modification or substitution agreement, pending
                  delivery
                  of the original thereof, together with an Officer’s Certificate of the
                  Initial Seller certifying that the copy of such assumption, modification
                  or substitution agreement delivered to the Indenture Trustee (or
                  its
                  custodian) on behalf of the Issuer is a true copy and that the
                  original of
                  such agreement has been forwarded to the public recording
                  office;

              

      

       

      
        	 	
                (v)

              	
                in
                  the case of each Mortgage Loan that is not a MERS Mortgage Loan,
                  an
                  original Assignment of Mortgage, in form and substance acceptable
                  for
                  recording. The Mortgage shall be assigned to
                  “[     ], as Indenture Trustee for Thornburg
                  Mortgage Securities Trust [     ], without
                  recourse” or in blank;

              

      

       

      
        	 	
                (vi)

              	
                in
                  the case of each Mortgage Loan that is not a MERS Mortgage Loan,
                  a copy of
                  any intervening Assignment of Mortgage showing a complete chain
                  of
                  assignments, or, in the case of an intervening Assignment of Mortgage
                  that
                  has been lost, a written Opinion of Counsel (delivered at the Initial
                  Seller’s expense) acceptable to the Indenture Trustee that such original
                  intervening Assignment of Mortgage is not required to enforce the
                  Indenture Trustee’s interest in the Mortgage
                  Loans;

              

      

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

      
        	 	
                (vii)

              	
                the
                  original or a copy of the lender’s title insurance policy;
                  and

              

      

       

      
        	 	
                (viii)

              	
                with
                  respect to any Cooperative Loan, the Cooperative Loan
                  Documents.

              

      

       

      [Notwithstanding
        the above, with respect to the Mortgage Loans serviced by
        [     ], the Mortgage Files to be delivered and
        deposited with the Indenture Trustee, or the Custodian, as its agent, shall
        include only the documents or instruments referred to in clauses (i), (ii),
        (iv)
        and (v) above and the other documents identified above shall be retained
        and
        held by [     ], as a Servicer, as provided in the
        Reconstituted Servicing Agreement dated as of [     ],
        among the Initial Seller, the Seller, [     ] and the
        Trust, and acknowledged by the Master Servicer; provided that the Master
        Servicer shall cause [     ] to deliver to the
        Custodian, within 60 days of the occurrence of a Document Transfer Event,
        the
        documents and instruments so retained by it consisting of the documents or
        instruments referred to in clauses (iii) and (vi) through (viii)
        above.]

       

      In
        connection with the assignment of any MERS Mortgage Loan, the Initial Seller
        agrees that it will take (or shall cause the applicable Servicer to take),
        at
        the expense of the Initial Seller (with the cooperation of the Depositor,
        the
        Seller, the Issuer, the Indenture Trustee and the Master Servicer), such
        actions
        as are necessary to cause the MERS® System to indicate that such Mortgage Loans
        have been assigned to the Indenture Trustee in accordance with this Agreement
        for the benefit of the Securityholders by including (or deleting, in the
        case of
        Mortgage Loans that are repurchased in accordance with this Agreement) in
        such
        computer files the information required by the MERS® System to identify the
        series of the Notes issued in connection with the transfer of such Mortgage
        Loans to the Thornburg Mortgage Securities Trust
        [     ].

       

      With
        respect to each Cooperative Loan the Initial Seller, on behalf of the Seller
        and
        the Depositor does hereby deliver to the Indenture Trustee (or Custodian)
        the
        related Cooperative Loan Documents and the Initial Seller will take (or shall
        cause the applicable Servicer to take), at the expense of the Initial Seller
        (with the cooperation of the Depositor, the Indenture Trustee and the Master
        Servicer) such actions as are necessary under applicable law (including but
        not
        limited to the Uniform Commercial Code) in order to perfect the interest
        of the
        Indenture Trustee in the related Mortgaged Property.

       

      Assignments
        of each Mortgage with respect to each Mortgage Loan that is not a MERS Mortgage
        Loan (other than a Cooperative Loan) shall be recorded; provided,
        however,
        that
        such assignments need not be recorded if, in the Opinion of Counsel (which
        must
        be from Independent Counsel and not at the expense of the Issuer or the
        Indenture Trustee) acceptable to the Indenture Trustee, each Rating Agency
        and
        the Master Servicer, recording in such states is not required to protect
        the
        Indenture Trustee’s interest in the related Mortgage Loans; provided,
        however,
        notwithstanding the delivery of any Opinion of Counsel, each assignment of
        Mortgage shall be submitted for recording by the Initial Seller (or the Initial
        Seller will cause the applicable Servicer to submit each such assignment
        for
        recording), at the cost and expense of the Initial Seller, in the manner
        described above, at no expense to the Issuer or Indenture Trustee, upon the
        earliest to occur of (1) reasonable direction by the Majority Securityholders,
        (2) the occurrence of a bankruptcy or insolvency relating to the Initial
        Seller,
        the Seller or the Depositor, or (3) with respect to any one Assignment of
        Mortgage, the occurrence of a bankruptcy, insolvency or foreclosure relating
        to
        the Mortgagor under the related Mortgage. Subject to the preceding sentence,
        as
        soon as practicable after the Closing Date (but in no event more than three
        months thereafter except to the extent delays are caused by the applicable
        recording office), the Initial Seller shall properly record (or the Initial
        Seller will cause the applicable Servicer to properly record), at the expense
        of
        the Initial Seller (with the cooperation of the Depositor, the Indenture
        Trustee
        and the Master Servicer), in each public recording office where the related
        Mortgages are recorded, each assignment referred to in Section 2.01(v) above
        with respect to a Mortgage Loan that is not a MERS Mortgage Loan.

       

      
        
          
          

        

        
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      The
        Custodian agrees to execute and deliver to the Depositor and the Issuer on
        or
        prior to the Closing Date an acknowledgment of receipt of the original Mortgage
        Note (with any exceptions noted), substantially in the form attached as Exhibit
        G-1 hereto.

       

      If
        the
        original lender’s title insurance policy, or a copy thereof, was required to be
        but was not delivered pursuant to Section 2.01(vii) above, the Initial Seller
        shall deliver or cause to be delivered to the Indenture Trustee the original
        or
        a copy of a written commitment or interim binder or preliminary report of
        title
        issued by the title insurance or escrow company, with the original or a copy
        thereof to be delivered to the Indenture Trustee, promptly upon receipt thereof,
        but in any case within 175 days of the Closing Date. The Initial Seller shall
        deliver or cause to be delivered to the Indenture Trustee, promptly upon
        receipt
        thereof, any other documents constituting a part of a Mortgage File received
        with respect to any Mortgage Loan sold to the Depositor by the Seller and
        required to be delivered to the Indenture Trustee, including, but not limited
        to, any original documents evidencing an assumption or modification of any
        Mortgage Loan. [The Master Servicer shall cause to be delivered to the Indenture
        Trustee or the Custodian, as its agent, the Mortgage Files retained by
        [     ] within 60 days of the occurrence of a Document
        Transfer Event as described above.]

       

      For
        Mortgage Loans (if any) that have been prepaid in full after the Cut-off
        Date
        and prior to the Closing Date, the Initial Seller, in lieu of delivering
        the
        above documents, herewith delivers to the Indenture Trustee, or to the Custodian
        on behalf of the Indenture Trustee, an Officer’s Certificate which shall include
        a statement to the effect that all amounts received in connection with such
        prepayment that are required to be deposited in the Collection Account have
        been
        so deposited. All original documents that are not delivered to the Indenture
        Trustee on behalf of the Issuer shall be held by the Master Servicer or the
        applicable Servicer in trust for the Indenture Trustee, for the benefit of
        the
        Issuer and the Securityholders.

       

      Upon
        discovery or receipt of notice of any materially defective document in, or
        that
        a document is missing from, a Mortgage File, the Initial Seller shall have
        90
        days to cure such defect or deliver such missing document to the Indenture
        Trustee. If the Initial Seller does not cure such defect or deliver such
        missing
        document within such time period, the Initial Seller shall either repurchase
        or
        substitute for such Mortgage Loan in accordance with Section 2.04
        hereof.

       

      The
        Depositor herewith delivers to the Indenture Trustee executed copies of the
        Mortgage Loan Purchase Agreements.

       

      
        
          
          

        

        
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      SECTION
        2.02. Acceptance
        of the Trust Estate; Review of Documentation.

       

      Subject
        to the provisions of Section 2.01, the Owner Trustee, on behalf of the Issuer,
        acknowledges receipt of the assets transferred by the Depositor and included
        in
        the Trust Estate and has directed that the documents referred to in Section
        2.01
        and all other assets included in the definition of “Trust Estate” be delivered
        to the Indenture Trustee (or the Custodian) on its behalf.

       

      The
        Indenture Trustee hereby accepts its appointment as Custodian hereunder and
        acknowledges the receipt, subject to the provisions of Section 2.01 and subject
        to the review described below and any exceptions noted on the exception report
        described in the next paragraph below, of the documents referred to in Section
        2.01 above and all other assets included in the definition of “Trust Estate” and
        declares that, in its capacity as Custodian, it holds and will hold such
        documents and the other documents delivered to it constituting a Mortgage
        File,
        and that it holds or will hold all such assets and such other assets included
        in
        the definition of “Trust Estate” in trust for the exclusive use and benefit of
        all present and future Securityholders.

       

      The
        Indenture Trustee further agrees, for the benefit of the Securityholders,
        to
        review each Mortgage File delivered to it [(other than Mortgage Files relating
        to Mortgage Loans serviced by [     ])] and to certify
        and deliver to the Depositor, the Issuer, the Sellers and each Rating Agency
        an
        interim certification in substantially the form attached hereto as Exhibit
        G-2,
        within 90 days after the Closing Date (or, with respect to any document
        delivered after the Closing Date, within 45 days of receipt [(including,
        but not
        limited to, documents provided by [     ] as described
        in Section 2.01)] and with respect to any Qualified Substitute Mortgage,
        within
        five Business Days after the assignment thereof) that, as to each Mortgage
        Loan
        listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in
        full
        or any Mortgage Loan specifically identified in the exception report annexed
        thereto as not being covered by such certification), (i) all documents
        required to be delivered to it pursuant to Section 2.01 of this Agreement
        are in its possession, (ii) such documents have been reviewed by it and
        have not been mutilated, damaged or torn and relate to such Mortgage Loan
        and
        (iii) based on its examination and only as to the foregoing, the
        information set forth in the Mortgage Loan Schedule that corresponds to items
        (i), (ii), (iii), (xiii), (xiv) and (xviii) of the Mortgage Loan Schedule
        (to
        the extent such items are required to be delivered to it as part of the Mortgage
        Files pursuant to Section 2.01) accurately reflects information set forth
        in the
        Mortgage File. It is herein acknowledged that, in conducting such review,
        the
        Indenture Trustee is under no duty or obligation to inspect, review or examine
        any such documents, instruments, certificates or other papers to determine
        that
        they are genuine, enforceable, or appropriate for the represented purpose
        or
        that they have actually been recorded or that they are other than what they
        purport to be on their face.

       

      No
        later
        than 180 days after the Closing Date, the Indenture Trustee shall deliver
        to the
        Issuer, the Depositor and the Sellers a final certification in the form annexed
        hereto as Exhibit G-3 evidencing the completeness of the Mortgage Files,
        with
        any applicable exceptions noted thereon.

       

      If,
        in
        the process of reviewing the Mortgage Files and making or preparing, as the
        case
        may be, the certifications referred to above, the Indenture Trustee finds
        any
        document or documents constituting a part of a Mortgage File to be missing
        or
        not conforming to the requirements set forth herein, at the conclusion of
        its
        review the Indenture Trustee (or the Custodian as its designated agent) shall
        promptly notify the Sellers, the Depositor and the Master Servicer. In addition,
        upon the discovery by the Issuer, the Initial Seller, the Seller or the
        Depositor (or upon receipt by the Indenture Trustee of written notification
        of
        such breach) of a breach of any of the representations and warranties made
        by
        either the Initial Seller or the Seller in the related Mortgage Loan Purchase
        Agreement in respect of any Mortgage Loan that materially adversely affects
        such
        Mortgage Loan or the interests of the related Securityholders in such Mortgage
        Loan, the party discovering such breach shall give prompt written notice
        to the
        other parties to this Agreement.

       

      
        
          
          

        

        
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      Nothing
        in this Agreement shall be construed to constitute an assumption by the Trust
        Estate, the Indenture Trustee, any Custodian or the Securityholders of any
        unsatisfied duty, claim or other liability on any Mortgage Loan or to any
        Mortgagor.

       

      Upon
        execution of this Agreement, the Depositor hereby delivers to the Indenture
        Trustee, and the Indenture Trustee acknowledges receipt of, the Mortgage
        Loan
        Purchase Agreements and each Servicing Agreement.

       

      SECTION
        2.03. Grant
        Clause 

       

      (a) It
        is
        intended that the conveyance by the Depositor to the Issuer of the Mortgage
        Loans and other assets in the Trust Estate, as provided for in Section 2.01
        be
        construed as a sale by the Depositor to the Issuer of the Mortgage Loans
        and
        other assets in the Trust Estate for the benefit of the Securityholders.
        Further, it is not intended that any such conveyance be deemed to be a pledge
        of
        the Mortgage Loans and other assets in the Trust Estate by the Depositor
        to the
        Issuer to secure a debt or other obligation of the Depositor. However, in
        the
        event that the Mortgage Loans and other assets in the Trust Estate are held
        to
        be property of the Depositor or if for any reason this Agreement is held
        or
        deemed to create a security interest in the Mortgage Loans and other assets
        in
        the Trust Estate, then it is intended that (a) this Agreement shall also
        be
        deemed to be a security agreement within the meaning of Articles 8 and 9
        of the
        New York UCC (or the Uniform Commercial Code if not the New York UCC); (b)
        the
        conveyances provided for in Section 2.01 shall be deemed to be (1) a grant
        by
        the Depositor to the Issuer of a security interest in all of the Depositor’s
        right (including the power to convey title thereto), title and interest,
        whether
        now owned or hereafter acquired, in and to (A) the Mortgage Loans, including
        the
        Mortgage Notes, the Mortgages, any related insurance policies and all other
        documents in the related Mortgage Files, (B) all amounts payable pursuant
        to the
        Mortgage Loans in accordance with the terms thereof and (C) any and all general
        intangibles consisting of, arising from or relating to any of the foregoing,
        and
        all proceeds of the conversion, voluntary or involuntary, of the foregoing
        into
        cash, instruments, securities or other property, including without limitation
        all Liquidation Proceeds, all Insurance Proceeds, all amounts from time to
        time
        held or invested in the Trust Accounts, whether in the form of cash,
        instruments, securities or other property and (2) an assignment by the Depositor
        to the Issuer for the transfer to the Indenture Trustee of any security interest
        in any and all of the Depositor’s right (including the power to convey title
        thereto), title and interest, whether now owned or hereafter acquired, in
        and to
        the property described in the foregoing clauses (1)(A) through (C); (c) the
        possession by the Indenture Trustee or any other agent of the Issuer of Mortgage
        Notes, and such other items of property as constitute instruments, money,
        negotiable documents or chattel paper shall be deemed to be “possession by the
        secured party,” or possession by a purchaser or a person designated by such
        secured party, for purposes of perfecting the security interest pursuant
        to the
        New York UCC and any other Uniform Commercial Code (including, without
        limitation, Section 9-313, 8-313 or 8-321 thereof); and (d) notifications
        to
        persons holding such property, and acknowledgments, receipts or confirmations
        from persons holding such property, shall be deemed notifications to, or
        acknowledgments, receipts or confirmations from, financial intermediaries,
        bailees or agents (as applicable) of the Issuer for the purpose of perfecting
        such security interest under applicable law.

       

      
        
          
          

        

        
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      (b) The
        Depositor and, at the Depositor’s direction, the Sellers and the Issuer shall,
        to the extent consistent with this Agreement, take such reasonable actions
        as
        may be necessary to ensure that, if this Agreement were deemed to create
        a
        security interest in the Mortgage Loans and the other property of the Trust
        Estate, such security interest would be deemed to be a perfected security
        interest of first priority under applicable law and will be maintained as
        such
        throughout the term of this Agreement. Without limiting the generality of
        the
        foregoing, the Depositor shall prepare and deliver to the Issuer, and the
        Issuer
        shall forward for filing, or shall cause to be forwarded for filing, at the
        expense of the Depositor, all filings necessary to maintain the effectiveness
        of
        any original filings necessary under the Uniform Commercial Code to perfect
        the
        Issuer’s security interest in or lien on the Mortgage Loans as evidenced by an
        Officer’s Certificate of the Depositor, including without limitation (x)
        continuation statements, and (y) such other statements as may be occasioned
        by
        (1) any change of name of the Initial Seller, the Seller, the Depositor or
        the
        Issuer, (2) any change of location of the place of business or the chief
        executive office of the Initial Seller, the Seller or the Depositor or (3)
        any
        transfer of any interest of the Initial Seller, the Seller or the Depositor
        in
        any Mortgage Loan.

       

      (c) Neither
        the Depositor nor the Issuer shall organize under the law of any jurisdiction
        other than the State under which each is organized as of the Closing Date
        (whether changing its jurisdiction of organization or organizing under an
        additional jurisdiction) without giving 30 days prior written notice of such
        action to its immediate transferee, including the Indenture Trustee. Before
        effecting such change, each of the Depositor or the Issuer proposing to change
        its jurisdiction of organization shall prepare and file in the appropriate
        filing office any financing statements or other statements necessary to continue
        the perfection of the interests of its immediate transferees, including the
        Indenture Trustee, in the Mortgage Loans. In connection with the transactions
        contemplated by this Agreement and the Indenture, each of the Depositor and
        the
        Issuer authorizes its immediate transferee, including the Indenture Trustee
        (or
        the Securities Administrator acting on behalf of the Indenture Trustee),
        to file
        in any filing office any initial financing statements, any amendments to
        financing statements, any continuation statements, or any other statements
        or
        filings described in Section 2.03(b) and this Section 2.03(c).

       

      (d) The
        Depositor shall not take any action inconsistent with the sale by the Depositor
        of all of its right, title and interest in and to the Trust Estate and shall
        indicate or shall cause to be indicated in its records and records held on
        its
        behalf that ownership of each Mortgage Loan and the other property of the
        Issuer
        is held by the Issuer. In addition, the Depositor shall respond to any inquiries
        from third parties with respect to ownership of a Mortgage Loan or any other
        property of the Trust Estate by stating that it is not the owner of such
        Mortgage Loan and that ownership of such Mortgage Loan or other property
        of the
        Trust Estate is held by the Issuer on behalf of the Noteholders.

       

      
        
          
          

        

        
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      SECTION
        2.04. Repurchase
        or Substitution of Mortgage Loans by the Seller.

       

      (a) Upon
        discovery or receipt of written notice that a document does not comply with
        the
        requirements of Section 2.01 hereof, or that a document is missing from,
        a
        Mortgage File or of the breach by the Initial Seller or the Seller of any
        representation, warranty or covenant under its related Mortgage Loan Purchase
        Agreement or in Section 2.05 or Section 2.08 herein in respect of any
        Mortgage Loan which materially adversely affects the value of that Mortgage
        Loan
        or the interest therein of the Securityholders, (i) in the case of Mortgage
        Loan
        documentation that is not in compliance with Section 2.01 or is missing,
        the
        Indenture Trustee (or the Custodian as its designated agent) shall promptly
        notify the Initial Seller of such noncompliance or missing document and request
        that the Initial Seller deliver such missing document or cure such noncompliance
        within 90 days from the date that the Initial Seller was notified of such
        missing document or noncompliance, and if the Initial Seller does not deliver
        such missing document or cure such noncompliance in all material respects
        during
        such period, the Indenture Trustee shall enforce the Initial Seller’s obligation
        under the TMFI Mortgage Loan Purchase Agreement and cause the Initial Seller
        to
        repurchase that Mortgage Loan from the Trust Estate at the Purchase Price
        on or
        prior to the Determination Date following the expiration of such 90 day period
        or (ii) in the case of a breach of a representation, warranty or covenant
        with respect to a Mortgage Loan, the party discovering such breach shall
        notify
        the Initial Seller or the Seller, as applicable, and the Indenture Trustee
        of
        such breach (with a copy of such notice provided to the other parties hereto)
        of
        its representation, warranty or covenant made under the related Mortgage
        Loan
        Purchase Agreement, and request that the Initial Seller or the Seller, as
        applicable, cure such breach within 90 days from the date it was notified
        of the
        breach and if the Initial Seller or the Seller, as applicable, which caused
        the
        breach does not cure such breach in all material respects during such period,
        the Indenture Trustee shall enforce the obligation of the Initial Seller
        or
        Seller, as applicable, which caused the breach under its related Mortgage
        Loan
        Purchase Agreement and cause it to repurchase the Mortgage Loans from the
        Trust
        Estate at the Purchase Price on or prior to the Determination Date following
        the
        expiration of such 90 day period; provided,
        however,
        that, in
        connection with any such breach that could not reasonably have been cured
        within
        such 90 day period, if either the Initial Seller or the Seller, as applicable,
        shall have commenced to cure such breach within such 90 day period, the Initial
        Seller or the Seller, as applicable shall be permitted to proceed thereafter
        diligently and expeditiously to cure the same within the additional period
        provided under the applicable Mortgage Loan Purchase Agreement; and,
provided
        further,
        that,
        in the case of the breach of any representation, warranty or covenant made
        by
        either the Initial Seller or the Seller in Schedule III of the related Mortgage
        Loan Purchase Agreement, the Initial Seller or the Seller, as applicable,
        shall
        be obligated to cure such breach or purchase the affected Mortgage Loans
        for the
        Purchase Price or, if the Mortgage Loan or the related Mortgaged Property
        acquired with respect thereto has been sold, then the Initial Seller or the
        Seller, as applicable, shall pay, in lieu of the Purchase Price, any excess
        of
        the Purchase Price over the Net Liquidation Proceeds received upon such sale.
        The Purchase Price for the repurchased Mortgage Loan or such other amount
        due
        shall be deposited in the Collection Account on or prior to the next
        Determination Date after the obligation of the Initial Seller or Seller,
        as
        applicable, to repurchase such Mortgage Loan arises. The Indenture Trustee,
        upon
        receipt of written certification from the Securities Administrator of the
        related deposit in the Collection Account, shall cause the Custodian to release
        to the Initial Seller or the Seller, as applicable, the related Mortgage
        File
        and shall execute and deliver such instruments of transfer or assignment,
        in
        each case without recourse, as the Initial Seller or the Seller, as applicable,
        shall furnish to it and as shall be necessary to vest in the Initial Seller
        or
        the Seller, as applicable, any Mortgage Loan released pursuant hereto and
        the
        Indenture Trustee shall have no further responsibility with regard to such
        Mortgage File (it being understood that the Indenture Trustee shall have
        no
        responsibility for determining the sufficiency of such assignment for its
        intended purpose). In lieu of repurchasing any such Mortgage Loan as provided
        above, the Initial Seller or the Seller, as applicable, which caused the
        breach
        may cause such Mortgage Loan to be removed from the Trust Estate (in which
        case
        it shall become a Deleted Mortgage Loan) and substitute one or more Qualified
        Substitute Mortgage Loans in the manner and subject to the limitations set
        forth
        in Section 2.04(d) below. It is understood and agreed that the obligation
        of the
        Initial Seller or the Seller, as applicable, to cure or to repurchase (or
        to
        substitute for) any Mortgage Loan as to which a document is missing, a material
        defect in a constituent document exists or as to which such a breach has
        occurred and is continuing shall constitute the sole remedy against the Initial
        Seller or the Seller, as applicable, respecting such omission, defect or
        breach
        available to the Indenture Trustee on behalf of the
        Securityholders.

       

      
        
          
          

        

        
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      The
        Indenture Trustee on behalf of the Issuer shall enforce the obligations of
        the
        Initial Seller and the Seller under the related Mortgage Loan Purchase Agreement
        including, without limitation, any obligation of the Initial Seller to purchase
        a Mortgage Loan on account of missing or defective documentation or any such
        obligation of the Initial Seller or the Seller, as applicable, on account
        of a
        breach of a representation, warranty or covenant as described in this Section
        2.04(a).

       

      Any
        costs
        and expenses (including reasonable attorneys’ fees and expenses) incurred by the
        Indenture Trustee enforcing the obligations of the Initial Seller and the
        Seller
        under this Section 2.04(a) shall be reimbursable to the Indenture Trustee
        from
        amounts on deposit in the Collection Account.

       

      (b) If
        pursuant to the provisions of Section 2.04(a), the Initial Seller or the
        Seller
        repurchases or otherwise removes from the Trust Estate a Mortgage Loan that
        is a
        MERS Mortgage Loan, the Initial Seller or the Seller, as applicable, will
        take
        (or shall cause the applicable Servicer to take), at the expense of the Initial
        Seller or the Seller, as applicable (with the cooperation of the Depositor,
        the
        Indenture Trustee and the Master Servicer), such actions as are necessary
        to
        either (i) cause MERS to execute and deliver an Assignment of Mortgage in
        recordable form to transfer the Mortgage from MERS to the Initial Seller
        or the
        Seller, as applicable, and shall cause such Mortgage to be removed from
        registration on the MERS® System in accordance with MERS’ rules and regulations
        or (ii) cause MERS to designate on the MERS® System the Initial Seller or the
        Seller, as applicable, or its designee as the beneficial holder of such Mortgage
        Loan.

       

      (c) [Reserved].

       

      (d) As
        to any
        Deleted Mortgage Loan for which the Initial Seller or the Seller, as applicable,
        substitutes a Qualified Substitute Mortgage Loan or Mortgage Loans, such
        substitution shall be effected by the Initial Seller or the Seller, as
        applicable, delivering to the Indenture Trustee, for such Qualified Substitute
        Mortgage Loan or Mortgage Loans, the Mortgage Note, the Mortgage, the Assignment
        to the Indenture Trustee (or the Custodian on its behalf), and such other
        documents and agreements, with all necessary endorsements thereon, as are
        required by Section 2.01 hereof (subject to the exceptions provided therein),
        together with an Officers’ Certificate stating that each such Qualified
        Substitute Mortgage Loan satisfies the definition thereof and specifying
        the
        Substitution Adjustment (as described below), if any, in connection with
        such
        substitution; provided,
        however,
        that, in
        the case of any Qualified Substitute Mortgage Loan that is a MERS Mortgage
        Loan,
        the Initial Seller or the Seller, as applicable, shall provide such documents
        and take such other action with respect to such Qualified Substitute Mortgage
        Loans as are required pursuant to Section 2.01 hereof. The Indenture Trustee
        (or
        the Custodian on its behalf) shall acknowledge receipt for such Qualified
        Substitute Mortgage Loan or Loans and, within five Business Days thereafter,
        shall review such documents as specified in Section 2.02 hereof and deliver
        to
        the related Servicer, with respect to such Qualified Substitute Mortgage
        Loan or
        Loans, a certification substantially in the form attached hereto as Exhibit
        G-2,
        with any exceptions noted thereon. Within 180 days of the date of substitution,
        the Indenture Trustee (or the Custodian on its behalf) shall deliver to the
        Initial Seller or the Seller, as applicable, and the Master Servicer a
        certification substantially in the form of Exhibit G-3 hereto with respect
        to
        such Qualified Substitute Mortgage Loan or Loans, with any exceptions noted
        thereon. Monthly Payments due with respect to Qualified Substitute Mortgage
        Loans in the month of substitution are not part of the Trust Estate and will
        be
        retained by the Initial Seller or the Seller, as applicable,. For the month
        of
        substitution, payments to Securityholders will reflect the collections and
        recoveries in respect of such Deleted Mortgage Loan in the Due Period preceding
        the month of substitution and the Depositor or the Initial Seller or the
        Seller,
        as applicable, as the case may be, shall thereafter be entitled to retain
        all
        amounts subsequently received in respect of such Deleted Mortgage Loan. The
        Initial Seller or the Seller, as applicable, shall give or cause to be given
        written notice to the Securityholders that such substitution has taken place,
        shall amend the Mortgage Loan Schedule to reflect the removal of such Deleted
        Mortgage Loan from the terms of this Agreement and the substitution of the
        Qualified Substitute Mortgage Loan or Loans and shall deliver a copy of such
        amended Mortgage Loan Schedule to the Indenture Trustee. Upon such substitution,
        such Qualified Substitute Mortgage Loan or Loans shall constitute part of
        the
        Trust Estate and shall be subject in all respects to the terms of this Agreement
        and, in the case of a substitution effected by the Initial Seller or the
        Seller,
        the related Mortgage Loan Purchase Agreement, including, in the case of a
        substitution effected by the Initial Seller or the Seller, all representations
        and warranties thereof included in the related Mortgage Loan Purchase Agreement
        and all representations and warranties thereof set forth in Section 2.05
        hereof,
        in each case as of the date of substitution.

       

      
        
          
          

        

        
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      For
        any
        month in which the Initial Seller or the Seller, as applicable, substitutes
        one
        or more Qualified Substitute Mortgage Loans for one or more Deleted Mortgage
        Loans, the Initial Seller or the Seller, as applicable, shall determine,
        and
        provide written certification to the Indenture Trustee as to the amount (each,
        a
“Substitution
        Adjustment”),
        if
        any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans
        exceeds the aggregate, as to each such Qualified Substitute Mortgage Loan,
        of
        the principal balance thereof as of the date of substitution, together with
        one
        month’s interest on such principal balance at the applicable Net Loan Rate. On
        or prior to the next Determination Date after the Initial Seller’s or the
        Seller’s obligation to repurchase the related Deleted Mortgage Loan arises, the
        Initial Seller or the Seller, as applicable, will deliver or cause to be
        delivered to the Securities Administrator for deposit in the Collection Account
        an amount equal to the related Substitution Adjustment, if any, and the
        Indenture Trustee, upon receipt of the related Qualified Substitute Mortgage
        Loan or Loans and an acknowledgment from the Securities Administrator of
        its
        receipt of the deposit to the Collection Account, shall release to the Initial
        Seller or the Seller, as applicable, the related Mortgage File or Files and
        shall execute and deliver such instruments of transfer or assignment, in
        each
        case without recourse, as the Initial Seller or the Seller, as applicable,
        shall
        deliver to it and as shall be necessary to vest therein any Deleted Mortgage
        Loan released pursuant hereto.

       

      
        
          
          

        

        
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      SECTION
        2.05. Representations
        and Warranties of the Sellers with Respect to the Mortgage
        Loans.

       

      Each
        of
        the Initial Seller and the Seller hereby represents and warrants to the
        Indenture Trustee for the benefit of the Securityholders that the
        representations and warranties made by it pursuant to Schedule III to the
        related Mortgage Loan Purchase Agreement are hereby being made to the Indenture
        Trustee for the benefit of the Securityholders and are true and correct as
        of
        the Closing Date.

       

      With
        respect to the representations and warranties incorporated in this Section
        2.05
        that are made to the best of the Initial Seller’s or the Seller’s knowledge or
        as to which either the Initial Seller or the Seller has no knowledge, if
        it is
        discovered by the Depositor, the Initial Seller, the Seller, the Master Servicer
        or the Indenture Trustee that the substance of such representation and warranty
        made by the Initial Seller or the Seller, as applicable, is inaccurate and
        such
        inaccuracy materially and adversely affects the value of the related Mortgage
        Loan or the interest therein of the Securityholders then, notwithstanding
        the
        Initial Seller’s or the Seller’s, as applicable, lack of knowledge with respect
        to the substance of such representation and warranty made by it being inaccurate
        at the time the representation or warranty was made, such inaccuracy shall
        be
        deemed a breach of the applicable representation or warranty.

       

      Within
        90
        days of its discovery or its receipt of notice of any such missing or materially
        defective documentation, the Initial Seller shall promptly deliver such missing
        document or cure such defect in all material respects or, in the event such
        defect cannot be cured, the Initial Seller shall repurchase the affected
        Mortgage Loan or cause the removal of such Mortgage Loan from the Trust Estate
        and substitute for it one or more Qualified Substitute Mortgage Loans in
        accordance with Section 2.04 hereof. Within 90 days of either the Initial
        Seller’s or the Seller’s discovery of its receipt of notice of any such breach
        of a representation, warranty or covenant under the related Mortgage Loan
        Purchase Agreement, the Initial Seller or the Seller, as applicable, shall
        either cure such breach in all material respects or, in the event such breach
        can not be cured, the Initial Seller or the Seller, as applicable, shall
        repurchase the affected Mortgage Loan or cause the removal of such Mortgage
        Loan
        from the Trust Estate and substitute for it one or more Qualified Substituted
        Mortgage Loans in accordance with Section 2.04 hereof.

       

      It
        is
        understood and agreed that the representations and warranties incorporated
        in
        this Section 2.05 shall survive delivery of the Mortgage Files to the Indenture
        Trustee and shall inure to the benefit of the Securityholders notwithstanding
        any restrictive or qualified endorsement or assignment. Upon discovery by
        any of
        the Depositor, the Initial Seller, the Seller, the Master Servicer or the
        Indenture Trustee of a breach of any of the foregoing representations and
        warranties which materially and adversely affects the value of any Mortgage
        Loan
        or the interests therein of the Securityholders, the party discovering such
        breach shall give prompt written notice to the other parties, and in no event
        later than two Business Days from the date of such discovery. It is understood
        and agreed that the obligations of the Initial Seller and the Seller set
        forth
        in Section 2.04(a) hereof to cure, substitute for or repurchase a related
        Mortgage Loan pursuant to the related Mortgage Loan Purchase Agreement
        constitute the sole remedies available to the Securityholders or to the
        Indenture Trustee on their behalf respecting a breach of the representations
        and
        warranties incorporated in this Section 2.05.

       

      
        
          
          

        

        
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      SECTION
        2.06. Representations
        and Warranties of the Depositor.

       

      The
        Depositor represents and warrants to the Issuer, on behalf of the
        Certificateholders, the Indenture Trustee on behalf of the Noteholders, the
        Securities Administrator and the Master Servicer as follows:

       

      (i) this
        agreement constitutes a legal, valid and binding obligation of the Depositor,
        enforceable against the Depositor in accordance with its terms, except as
        enforceability may be limited by applicable bankruptcy, insolvency,
        reorganization, moratorium or other similar laws now or hereafter in effect
        affecting the enforcement of creditors’ rights in general an except as such
        enforceability may be limited by general principles of equity (whether
        considered in a proceeding at law or in equity);

       

      (ii) immediately
        prior to the sale and assignment by the Depositor to the Indenture Trustee
        on
        behalf of the Issuer of each Mortgage Loan, the Depositor had good and
        marketable title to each Mortgage Loan (insofar as such title was conveyed
        to it
        by the Seller) subject to no prior lien, claim, participation interest,
        mortgage, security interest, pledge, charge or other encumbrance or other
        interest of any nature;

       

      (iii) as
        of the
        Closing Date, the Depositor has transferred all right, title and interest
        in the
        Mortgage Loans to the Issuer;

       

      (iv) the
        Depositor has not transferred the Mortgage Loans to the Issuer with any intent
        to hinder, delay or defraud any of its creditors; 

       

      (v) the
        Depositor has been duly incorporated and is validly existing as a corporation
        in
        good standing under the laws of Delaware, with full corporate power and
        authority to own its assets and conduct its business as presently being
        conducted;

       

      (vi) the
        Depositor is not in violation of its certificate of incorporation or by-laws
        or
        in default in the performance or observance of any material obligation,
        agreement, covenant or condition contained in any contract, indenture, mortgage,
        loan agreement, note, lease or other instrument to which the Depositor is
        a
        party or by which it or its properties may be bound, which default might
        result
        in any material adverse changes in the financial condition, earnings, affairs
        or
        business of the Depositor or which might materially and adversely affect
        the
        properties or assets, taken as a whole, of the Depositor;

       

      
        
          
          

        

        
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      (vii) the
        execution, delivery and performance of this Agreement by the Depositor, and
        the
        consummation of the transactions contemplated hereby, do not and will not
        result
        in a material breach or violation of any of the terms or provisions of, or,
        to
        the knowledge of the Depositor, constitute a default under, any indenture,
        mortgage, deed of trust, loan agreement or other agreement or instrument
        to
        which the Depositor is a party or by which the Depositor is bound or to which
        any of the property or assets of the Depositor is subject, nor will such
        actions
        result in any violation of the provisions of the certificate of incorporation
        or
        by-laws of the Depositor or, to the best of the Depositor’s knowledge without
        independent investigation, any statute or any order, rule or regulation of
        any
        court or governmental agency or body having jurisdiction over the Depositor
        or
        any of its properties or assets (except for such conflicts, breaches, violations
        and defaults as would not have a material adverse effect on the ability of
        the
        Depositor to perform its obligations under this Agreement);

       

      (viii) to
        the
        best of the Depositor’s knowledge without any independent investigation, no
        consent, approval, authorization, order, registration or qualification of
        or
        with any court or governmental agency or body of the United States or any
        other
        jurisdiction is required for the consummation by the Depositor of the
        transactions contemplated by this Agreement, except such consents, approvals,
        authorizations, registrations or qualifications as (a) have been previously
        obtained or (b) the failure of which to obtain would not have a material
        adverse
        effect on the performance by the Depositor of its obligations under, or the
        validity or enforceability of, this Agreement; and

       

      (ix) there
        are
        no actions, proceedings or investigations pending before or, to the Depositor’s
        knowledge, threatened by any court, administrative agency or other tribunal
        to
        which the Depositor is a party or of which any of its properties is the subject:
        (a) which if determined adversely to the Depositor would have a material
        adverse
        effect on the business, results of operations or financial condition of the
        Depositor; (b) asserting the invalidity of this Agreement or the Securities;
        (c)
        seeking to prevent the issuance of the Securities or the consummation by
        the
        Depositor of any of the transactions contemplated by this Agreement, as the
        case
        may be; or (d) which might materially and adversely affect the performance
        by
        the Depositor of its obligations under, or the validity or enforceability
        of,
        this Agreement.

       

      SECTION
        2.07. Representations
        and Warranties of the Depositor with Respect to Security Interest in the
        Mortgage Loans.
        (a)
        With respect to the Mortgage Notes, the Depositor represents and warrants
        that:

       

      (i) This
        Agreement creates a valid and continuing security interest (as defined in
        the
        Uniform Commercial Code) in the Mortgage Notes in favor of the Issuer, which
        security interest is prior to all other liens, and is enforceable as such
        against creditors of and purchasers from the Issuer;

       

      (ii) The
        Mortgage Notes constitute “instruments” within the meaning of the applicable
        Uniform Commercial Code;

       

      (iii) The
        Depositor owns and has good title to the Mortgage Notes free and clear of
        any
        lien, claim or encumbrance of any Person;

       

      
        
          
          

        

        
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      (iv) The
        Depositor has received all consents and approvals required by the terms of
        the
        Mortgage Notes to the pledge of the Mortgage Notes hereunder to the
        Issuer;

       

      (v) All
        original executed copies of each Mortgage Note have been or will be delivered
        to
        the Custodian, as set forth in this Agreement;

       

      (vi) The
        Depositor has received a written acknowledgement from the Custodian that
        it is
        holding the Mortgage Notes solely on behalf and for the benefit of the Indenture
        Trustee;

       

      (vii) Other
        than the security interest granted to the Issuer pursuant to this Agreement,
        to
        cover the possibility that the transfer of the Mortgage Loans is not deemed
        to
        be a sale, the Depositor has not pledged, assigned, sold, granted a security
        interest in, or otherwise conveyed any of the Mortgage Notes. The Depositor
        has
        not authorized the filing of and is not aware of any financing statements
        against the Depositor that include a description of the collateral covering
        the
        Mortgage Notes other than a financing statement relating to the security
        interest granted to the Issuer hereunder or that has been terminated. The
        Depositor is not aware of any judgment or tax lien filings against the
        Depositor; and

       

      (viii) None
        of
        the Mortgage Notes has any marks or notations indicating that they have been
        pledged, assigned or otherwise conveyed to any Person other than the
        Issuer.

       

      (b) The
        representations and warranties set forth in this Section 2.07 shall survive
        the
        Closing Date and shall not be waived.

       

       

      SECTION
        2.08. Representations
        and Warranties of the Sellers.

       

      (a)
        The
        Initial Seller hereby represents and warrants to the Issuer on behalf of
        the
        Certificateholders and the Indenture Trustee on behalf of the Noteholders,
        the
        Securities Administrator and the Master Servicer that, as of the Closing
        Date or
        as of such date specifically provided herein:

       

      (i) the
        Initial Seller is duly organized, validly existing and in good standing as
        a
        corporation under the laws of the State of [     ] and
        is and will remain in compliance with the laws of each state in which any
        Mortgaged Property is located to the extent necessary to fulfill its obligations
        hereunder;

       

      (ii) the
        Initial Seller has the power and authority to hold each Mortgage Loan, to
        sell
        each Mortgage Loan, to execute, deliver and perform, and to enter into and
        consummate, all transactions contemplated by this Agreement. The Initial
        Seller
        has duly authorized the execution, delivery and performance of this Agreement,
        has duly executed and delivered this Agreement and this Agreement, assuming
        due
        authorization, execution and delivery by the other parties hereto, constitutes
        a
        legal, valid and binding obligation of the Initial Seller, enforceable against
        it in accordance with its terms except as the enforceability thereof may
        be
        limited by bankruptcy, insolvency or reorganization or other similar laws
        in
        relation to the rights of creditors generally;

       

      
        
          
          

        

        
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      (iii) the
        execution and delivery of this Agreement by the Initial Seller and the
        performance of and compliance with the terms of this Agreement will not violate
        the Initial Seller’s certificate of incorporation or by-laws or constitute a
        default under or result in a material breach or acceleration of, any material
        contract, agreement or other instrument to which the Initial Seller is a
        party
        or which may be applicable to the Initial Seller or its assets;

       

      (iv) the
        Initial Seller is not in violation of, and the execution and delivery of
        this
        Agreement by the Initial Seller and its performance and compliance with the
        terms of this Agreement will not constitute a violation with respect to,
        any
        order or decree of any court or any order or regulation of any federal, state,
        municipal or governmental agency having jurisdiction over the Initial Seller
        or
        its assets, which violation might have consequences that would materially
        and
        adversely affect the condition (financial or otherwise) or the operation
        of the
        Initial Seller or its assets or might have consequences that would materially
        and adversely affect the performance of its obligations and duties
        hereunder;

       

      (v) the
        Initial Seller does not believe, nor does it have any reason or cause to
        believe, that it cannot perform each and every one of its covenants contained
        in
        this Agreement;

       

      (vi) the
        Initial Seller had good, marketable and indefeasible title to the Mortgage
        Loans, free and clear of any and all liens, pledges, charges or security
        interests of any nature encumbering the Mortgage Loans and upon the payment
        of
        the purchase price under the TMFI Mortgage Loan Purchase Agreement by the
        Seller, the Seller acquired good and marketable title to the Mortgage Notes
        and
        Mortgage Loans, free and clear of all liens or encumbrances;

       

      (vii) the
        Mortgage Loans were not transferred by the Initial Seller with any intent
        to
        hinder, delay or defraud any creditors of the Initial Seller;

       

      (viii) there
        are
        no actions or proceedings against, or investigations known to it before any
        court, administrative or other tribunal (A) that might prohibit its entering
        into this Agreement, (B) seeking to prevent the sale of the Mortgage Loans
        to
        the Seller or the consummation of the transactions contemplated by this
        Agreement or (C) that might prohibit or materially and adversely affect the
        performance by the Initial Seller of its obligations under, or validity or
        enforceability of, this Agreement;

       

      (ix) no
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by the Initial
        Seller of, or compliance by the Initial Seller with, this Agreement or the
        consummation of the transactions contemplated by this Agreement, except for
        such
        consents, approvals, authorizations or orders, if any, that have been obtained;
        and

       

      (x) the
        consummation of the transactions contemplated by this Agreement are in the
        ordinary course of business of the Initial Seller, and the transfer, assignment
        and conveyance of the Mortgage Notes and the Mortgages by the Initial Seller
        to
        the Seller pursuant to the TMFI Mortgage Loan Purchase Agreement are not
        subject
        to the bulk transfer or any similar statutory provisions.

       

      
        
          
          

        

        
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      (b)
        The
        Seller hereby represents and warrants to the Issuer on behalf of the
        Certificateholders, the Indenture Trustee on behalf of the Noteholders, the
        Securities Administrator and the Master Servicer that, as of the Closing
        Date or
        as of such date specifically provided herein:

       

      (i) the
        Seller is duly organized, validly existing and in good standing as a corporation
        under the laws of the State of [     ] and is and will
        remain in compliance with the laws of each state in which any Mortgaged Property
        is located to the extent necessary to fulfill its obligations
        hereunder;

       

      (ii) the
        Seller has the power and authority to hold each Mortgage Loan, to sell each
        Mortgage Loan, to execute, deliver and perform, and to enter into and
        consummate, all transactions contemplated by this Agreement. The Seller has
        duly
        authorized the execution, delivery and performance of this Agreement, has
        duly
        executed and delivered this Agreement and this Agreement, assuming due
        authorization, execution and delivery by the other parties hereto, constitutes
        a
        legal, valid and binding obligation of the Seller, enforceable against it
        in
        accordance with its terms except as the enforceability thereof may be limited
        by
        bankruptcy, insolvency or reorganization or other similar laws in relation
        to
        the rights of creditors generally;

       

      (iii) the
        execution and delivery of this Agreement by the Seller and the performance
        of
        and compliance with the terms of this Agreement will not violate the Seller’s
        certificate of incorporation or by-laws or constitute a default under or
        result
        in a material breach or acceleration of, any material contract, agreement
        or
        other instrument to which the Seller is a party or which may be applicable
        to
        the Seller or its assets;

       

      (iv) the
        Seller is not in violation of, and the execution and delivery of this Agreement
        by the Seller and its performance and compliance with the terms of this
        Agreement will not constitute a violation with respect to, any order or decree
        of any court or any order or regulation of any federal, state, municipal
        or
        governmental agency having jurisdiction over the Seller or its assets, which
        violation might have consequences that would materially and adversely affect
        the
        condition (financial or otherwise) or the operation of the Seller or its
        assets
        or might have consequences that would materially and adversely affect the
        performance of its obligations and duties hereunder;

       

      (v) 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;

       

      (vi) the
        Seller had good, marketable and indefeasible title to the Mortgage Loans,
        free
        and clear of any and all liens, pledges, charges or security interests of
        any
        nature encumbering the Mortgage Loans and upon the payment of the purchase
        price
        under the [TSC] Mortgage Loan Purchase Agreement by the Depositor, the Depositor
        will have acquired good and marketable title to the Mortgage Notes and Mortgage
        Loans, free and clear of all liens or encumbrances;

       

      (vii) the
        Mortgage Loans were not being transferred by the Seller with any intent to
        hinder, delay or defraud any creditors of the Seller;

       

      
        
          
          

        

        
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      (viii) there
        are
        no actions or proceedings against, or investigations known to it before any
        court, administrative or other tribunal (A) that might prohibit its entering
        into this Agreement, (B) seeking to prevent the sale of the Mortgage Loans
        to
        the Depositor or the consummation of the transactions contemplated by this
        Agreement or (C) that might prohibit or materially and adversely affect the
        performance by the Seller of its obligations under, or validity or
        enforceability of, this Agreement;

       

      (ix) no
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by the Seller
        of,
        or compliance by the Seller with, this Agreement or the consummation of the
        transactions contemplated by this Agreement, except for such consents,
        approvals, authorizations or orders, if any, that have been obtained;
        and

       

      (x) 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 to the
        Depositor pursuant to the [TSC] Mortgage Loan Purchase Agreement are not
        subject
        to the bulk transfer or any similar statutory provisions.

       

      The
        representations and warranties of the Initial Seller and the Seller set forth
        in
        this Section 2.08 shall survive the Closing Date and shall not be
        waived.

       

      SECTION
        2.09. Covenants
        of the Sellers.

       

      The
        Initial Seller and the Seller each hereby covenants that, except for the
        transfer contemplated under the related Mortgage Loan Purchase Agreement
        and the
        security interest granted thereunder to the respective purchaser in the event
        that the respective transfer is not deemed to be a sale, it will not sell,
        pledge, assign or transfer to any other Person, or grant, create, incur,
        assume
        or suffer to exist any lien on any Mortgage Loan, or any interest therein;
        it
        will notify the Issuer, the Indenture Trustee and the Master Servicer of
        the
        existence of any lien on any Mortgage Loan immediately upon discovery thereof,
        and it will defend the right, title and interest of the Issuer, in, to and
        under
        the Mortgage Loans, against all claims of third parties claiming through
        or
        under it; provided,
        however,
        that
        nothing in this Section 2.09 shall prevent or be deemed to prohibit either
        the
        Initial Seller or the Seller from suffering to exist upon any of the Mortgage
        Loans any liens for municipal or other local taxes and other governmental
        charges if such taxes or governmental charges shall not at the time be due
        and
        payable or if the Initial Seller or the Seller, as applicable, shall currently
        be contesting the validity thereof in good faith by appropriate proceedings
        and
        shall have set aside on its books adequate reserves with respect
        thereto.

       

      ARTICLE
        III

       

      ADMINISTRATION
        AND SERVICING

      OF
        THE MORTGAGE LOANS

       

      
        
          
          

        

        
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      SECTION
        3.01. Master
        Servicer to Service and Administer the Mortgage Loans. 

       

      The
        Master Servicer shall supervise, monitor and oversee the obligation of the
        Servicers to service and administer their respective Mortgage Loans in
        accordance with the terms of the applicable Servicing Agreement and, where
        applicable, the Correspondent Sellers Guide and the Master Servicing Guide,
        and
        shall have full power and authority to do any and all things which it may
        deem
        necessary or desirable in connection with such master servicing and
        administration. In performing its obligations hereunder, the Master Servicer
        shall act in a manner consistent with Accepted Master Servicing Practices
        and,
        where applicable, the Master Servicing Guide. Furthermore, the Master Servicer
        shall oversee and consult with each Servicer as necessary from time-to-time
        to
        carry out the Master Servicer’s obligations hereunder, shall receive, review and
        evaluate all reports, information and other data provided to the Master Servicer
        by each Servicer and shall cause each Servicer to perform and observe the
        covenants, obligations and conditions to be performed or observed by such
        Servicer under the applicable Servicing Agreement. The Master Servicer shall
        independently and separately monitor each Servicer’s servicing activities with
        respect to each related Mortgage Loan, reconcile the results of such monitoring
        with such information provided in the previous sentence on a monthly basis
        and
        coordinate corrective adjustments to the Servicers’ and the Master Servicer’s
        records, and based on such reconciled and corrected information, provide
        information to the Securities Administrator to permit the Securities
        Administrator to prepare the statements specified in Section 5.04 and any
        other
        information and statements required hereunder. The Master Servicer shall
        reconcile the results of its Mortgage Loan monitoring with the actual
        remittances of the Servicers to the related Servicing Accounts pursuant to
        the
        applicable Servicing Agreements.

       

      The
        Indenture Trustee shall furnish the Servicers and the Master Servicer with
        any
        limited powers of attorney and other documents in form acceptable to the
        Indenture Trustee, necessary or appropriate to enable the Servicers and the
        Master Servicer to service and administer the related Mortgage Loans and
        REO
        Property, which limited powers of attorney shall provide that the Indenture
        Trustee will not be liable for the actions or omissions of the Servicers
        or
        Master Servicer in exercising such powers. 

       

      The
        Master Servicer shall not without either the Issuer’s or the Indenture
        Trustee’s, as applicable, written consent (i) initiate any action, suit or
        proceeding solely under the Issuer’s or Indenture Trustee’s name without
        indicating the Master Servicer’s representative capacity or (ii) take any action
        with the intent to cause, and which actually does cause, the Indenture Trustee
        to be registered to do business in any state. The Master Servicer shall
        indemnify the Issuer and the Indenture Trustee for any and all costs,
        liabilities and expenses incurred by them in connection with the negligent
        or
        willful misuse of such powers of attorney by the Master Servicer.

       

      The
        Indenture Trustee shall provide access to the records and documentation in
        possession of the Indenture Trustee (including in its capacity as Custodian
        hereunder) regarding the related Mortgage Loans and REO Property and the
        servicing thereof to the Securityholders, the FDIC, and the supervisory agents
        and examiners of the FDIC, such access being afforded only upon reasonable
        prior
        written request and during normal business hours at the office of the Indenture
        Trustee; provided,
        however,
        that,
        unless otherwise required by law, the Indenture Trustee shall not be required
        to
        provide access to such records and documentation if the provision thereof
        would
        violate the legal right to privacy of any Mortgagor. The Indenture Trustee
        shall
        allow representatives of the above entities to photocopy any of the records
        and
        documentation and shall provide equipment for that purpose at a charge that
        covers the Indenture Trustee’s actual costs.

       

      
        
          
          

        

        
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      The
        Indenture Trustee, upon the written request of the Master Servicer, shall
        execute and deliver to the related Servicer and the Master Servicer any court
        pleadings, requests for trustee’s sale or other documents necessary or desirable
        to (i) the foreclosure or trustee’s sale with respect to a Mortgaged Property;
        (ii) any legal action brought to obtain judgment against any Mortgagor on
        the
        Mortgage Note or Mortgage; (iii) obtain a deficiency judgment against the
        Mortgagor; or (iv) enforce any other rights or remedies provided by the Mortgage
        Note or Mortgage or otherwise available at law or equity.

       

      SECTION
        3.02. [Reserved].

       

      SECTION
        3.03. Monitoring
        of Servicers.

       

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

       

      (b) The
        Master Servicer, for the benefit of the Issuer and the Securityholders, shall
        (acting as agent of the Issuer when enforcing the Issuer’s rights under each
        Servicing Agreement) (i) enforce the obligations of each Servicer under the
        related Servicing Agreement, and (ii) in the event that a Servicer fails
        to
        perform its obligations in accordance with the related Servicing Agreement,
        subject to the preceding paragraph, terminate the rights and obligations
        of such
        Servicer thereunder, act as servicer of the related Mortgage Loans or enter
        into
        a new Servicing Agreement with a successor Servicer selected by the Master
        Servicer which the Master Servicer shall cause the Indenture Trustee to
        acknowledge; provided,
        however,
        it is
        understood and acknowledged by the parties hereto that there will be a period
        of
        transition (not to exceed 90 days) before the actual servicing functions
        can be
        fully transferred to such successor Servicer. Such enforcement, including,
        without limitation, the legal prosecution of claims, termination of Servicing
        Agreements and the pursuit of other appropriate remedies, shall be in such
        form
        and carried out to such an extent and at such time as the Master Servicer,
        in
        its good faith business judgment, would require were it the owner of the
        related
        Mortgage Loans. The Master Servicer shall pay the costs of such enforcement
        at
        its own expense except as provided in paragraph (c) below, provided that
        the
        Master Servicer shall not be required to prosecute or defend any legal action
        except to the extent that the Master Servicer shall have received reasonable
        indemnity for its costs and expenses in pursuing such action.

       

      
        
          
          

        

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

       

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

       

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

       

      (f) With
        respect to Additional Collateral Mortgage Loans, the Master Servicer shall
        have
        no duty or obligation to supervise, monitor or oversee the activities of
        each
        Servicer under its Servicing Agreement with respect to Additional Collateral,
        except (a) with respect to any instances where a Servicer, in the course
        of
        fulfilling its obligations under the related Servicing Agreement seeks
        directions, instructions, consents or waivers from the Master Servicer with
        respect to any item of Additional Collateral, or (b) upon the occurrence
        of the
        following events (i) in the case of a final liquidation of any Mortgaged
        Property secured by Additional Collateral, the Master Servicer shall enforce
        the
        obligation of the Servicer under the related Servicing Agreement to liquidate
        such Additional Collateral as required by such Servicing Agreement, and (ii)
        if
        the Master Servicer assumes the obligations of such Servicer as successor
        Servicer under the related Servicing Agreement pursuant to this Section 3.03,
        as
        successor Servicer, it shall be bound to service and administer the Additional
        Collateral in accordance with the provisions of such Servicing
        Agreement.

       

      (g) If
        a
        Servicing Agreement requires the approval of the Master Servicer for a
        modification to a Mortgage Loan, the Master Servicer shall approve such
        modification if, based upon its receipt of written notification from the
        related
        Servicer outlining the terms of such modification and appropriate supporting
        documentation, the Master Servicer determines that the modification is permitted
        under the terms of the related Servicing Agreement and that any conditions
        to
        such modification set forth in related Servicing Agreement have been satisfied.
        

       

      (h) If
        a
        Servicing Agreement requires the oversight and monitoring of loss mitigation
        measures with respect to the related Mortgage Loans, the Master Servicer
        will
        monitor any loss mitigation procedure or recovery action related to a defaulted
        Mortgage Loan (to the extent it receives notice of such from the related
        Servicer) and confirm that such loss mitigation procedure or recovery action
        is
        initiated, conducted and concluded in accordance with any timeframes and
        any
        other requirements set forth in the related Servicing Agreement, and the
        Master
        Servicer shall notify the Depositor in any case in which the Master Servicer
        believes that the related Servicer is not complying with such timeframes
        and/or
        other requirements.

       

      
        
          
          

        

        
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      SECTION
        3.04. Fidelity
        Bond.

       

      The
        Master Servicer, at its expense, shall maintain in effect a blanket fidelity
        bond and an errors and omissions insurance policy, affording coverage with
        respect to all directors, officers, employees and other Persons acting on
        such
        Master Servicer’s behalf, and covering errors and omissions in the performance
        of the Master Servicer’s obligations hereunder. The errors and omissions
        insurance policy and the fidelity bond shall be in such form and amount
        generally acceptable for entities serving as master servicers or
        trustees.

       

      SECTION
        3.05. Power
        to Act; Procedures.

       

      The
        Master Servicer shall master service the Mortgage Loans and shall have full
        power and authority to do any and all things that it may deem necessary or
        desirable in connection with the master servicing and administration of the
        Mortgage Loans, including but not limited to the power and authority (i)
        to
        execute and deliver, on behalf of the Securityholders, the Issuer and the
        Indenture Trustee, customary consents or waivers and other instruments and
        documents, (ii) to consent to transfers of any Mortgaged Property and
        assumptions of the Mortgage Notes and related Mortgages, (iii) to collect
        any
        Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries and (iv)
        to
        effectuate, in its own name, on behalf of the Issuer or the Indenture Trustee,
        as applicable, or in the name of the Issuer or the Indenture Trustee, as
        applicable, foreclosure or other conversion of the ownership of the Mortgaged
        Property securing any Mortgage Loan, in each case, in accordance with the
        provisions of this Agreement and the related Servicing Agreement, as applicable.
        The Indenture Trustee shall furnish the Master Servicer, upon written request
        from a Servicing Officer, with any limited powers of attorney empowering
        the
        Master Servicer or any Servicer to execute and deliver instruments of
        satisfaction or cancellation, or of partial or full release or discharge,
        and to
        foreclose upon or otherwise liquidate Mortgaged Property, and to appeal,
        prosecute or defend in any court action relating to the Mortgage Loans or
        the
        Mortgaged Property, in accordance with the applicable Servicing Agreement
        and
        this Agreement, and the Indenture Trustee shall execute and deliver such
        other
        documents, as the Master Servicer may request, to enable the Master Servicer
        to
        master service and administer the Mortgage Loans and carry out its duties
        hereunder, in each case in accordance with Accepted Master Servicing Practices
        (and the Indenture Trustee shall have no liability for misuse of any such
        powers
        of attorney by the Master Servicer or any Servicer). In instituting foreclosures
        or similar proceedings, the Master Servicer shall institute such proceedings
        either in its own name on behalf of the Issuer or the Indenture Trustee or
        in
        the name of the Issuer or the Indenture Trustee (or cause the related Servicer,
        pursuant to the related Servicing Agreement, to institute such proceedings
        either in the name of such Servicer on behalf of the Issuer or the Indenture
        Trustee or in the name of the Issuer or the Indenture Trustee), unless otherwise
        required by law or otherwise appropriate. If the Master Servicer or the
        Indenture Trustee has been advised that it is likely that the laws of the
        state
        in which action is to be taken prohibit such action if taken in the name
        of the
        Issuer or the Indenture Trustee on its behalf or that the Issuer or the
        Indenture Trustee, as applicable, would be adversely affected under the “doing
        business” or tax laws of such state if such action is taken in its name, the
        Master Servicer shall join with the Indenture Trustee, on behalf of the Issuer,
        in the appointment of a co-trustee pursuant to Section 6.10 of the Indenture.
        In
        the performance of its duties hereunder, the Master Servicer shall be an
        independent contractor and shall not, except in those instances where it
        is
        taking action in the name of the Indenture Trustee, be deemed to be the agent
        of
        the Indenture Trustee on behalf of the Issuer.

       

      
        
          
          

        

        
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      SECTION
        3.06. Due-on-Sale
        Clauses; Assumption Agreements.

       

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

       

       

      SECTION
        3.07. Release
        of Mortgage Files.

       

      (a) Upon
        becoming aware of the payment in full of any Mortgage Loan, or the receipt
        by
        any Servicer of a notification that payment in full has been escrowed in
        a
        manner customary for such purposes for payment to Securityholders on the
        next
        Payment Date, the Servicer will, if required under the applicable Servicing
        Agreement, promptly furnish to the Custodian, on behalf of the Indenture
        Trustee, two copies of a certification substantially in the form of Exhibit
        F
        hereto signed by a Servicing Officer or in a mutually agreeable electronic
        format which will, in lieu of a signature on its face, originate from a
        Servicing Officer (which certification shall include a statement to the effect
        that all amounts received in connection with such payment that are required
        to
        be deposited in the related Servicing Account maintained by the applicable
        Servicer pursuant to Section 4.01 or by the applicable Servicer pursuant
        to its
        Servicing Agreement have been or will be so deposited) and shall request
        that
        the Indenture Trustee (or the Custodian, on behalf of the Indenture Trustee)
        deliver to the applicable Servicer the related Mortgage File. Upon receipt
        of
        such certification and request, the Indenture Trustee (or the Custodian,
        on
        behalf of the Indenture Trustee), shall promptly release the related Mortgage
        File to the applicable Servicer and the Indenture Trustee (and the Custodian,
        if
        applicable) shall have no further responsibility with regard to such Mortgage
        File. Upon any such payment in full, each Servicer is authorized, to give,
        as
        agent for the Indenture Trustee, as the mortgagee under the Mortgage that
        secured the Mortgage Loan, an instrument of satisfaction (or assignment of
        mortgage without recourse) regarding the Mortgaged Property subject to the
        Mortgage, which instrument of satisfaction or assignment, as the case may
        be,
        shall be delivered to the Person or Persons entitled thereto against receipt
        therefor of such payment, it being understood and agreed that no expenses
        incurred in connection with such instrument of satisfaction or assignment,
        as
        the case may be, shall be chargeable to the related Servicing
        Account.

       

      (b) From
        time
        to time and as appropriate for the servicing or foreclosure of any Mortgage
        Loan
        and in accordance with the applicable Servicing Agreement, the Indenture
        Trustee
        shall execute such documents as shall be prepared and furnished to the Indenture
        Trustee by a Servicer or the Master Servicer (in form reasonably acceptable
        to
        the Indenture Trustee) and as are necessary to the prosecution of any such
        proceedings. The Indenture Trustee (or the Custodian, on behalf of the Indenture
        Trustee), shall, upon the request of a Servicer or the Master Servicer, and
        delivery to the Indenture Trustee (the Custodian, on behalf of the Indenture
        Trustee), of two copies of a Request For Release signed by a Servicing Officer
        substantially in the form of Exhibit F (or in a mutually agreeable electronic
        format which will, in lieu of a signature on its face, originate from a
        Servicing Officer), release the related Mortgage File held in its possession
        or
        control to the Servicer or the Master Servicer, as applicable. Such trust
        receipt shall obligate the Servicer or the Master Servicer to return the
        Mortgage File to the Indenture Trustee (or the Custodian on behalf of the
        Indenture Trustee) when the need therefor by the Servicer or the Master Servicer
        no longer exists unless the Mortgage Loan shall be liquidated, in which case,
        upon receipt of a certificate of a Servicing Officer similar to that hereinabove
        specified, the Mortgage File shall be released by the Indenture Trustee (or
        the
        Custodian on behalf of the Indenture Trustee), to the Servicer or the Master
        Servicer.

       

      
        
          
          

        

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

       

      (a) The
        Master Servicer shall transmit and each Servicer (to the extent required
        by the
        related Servicing Agreement) shall transmit to the Indenture Trustee (or
        Custodian) such documents and instruments coming into the possession of the
        Master Servicer or such Servicer from time to time as are required by the
        terms
        hereof, or in the case of the Servicers, the applicable Servicing Agreement,
        to
        be delivered to the Indenture Trustee (or Custodian). Any funds received
        by the
        Master Servicer or by a Servicer in respect of any Mortgage Loan or which
        otherwise are collected by the Master Servicer or by a Servicer as Liquidation
        Proceeds, Insurance Proceeds or Subsequent Recoveries in respect of any Mortgage
        Loan shall be held for the benefit of the Indenture Trustee and the
        Securityholders subject to the Master Servicer’s right to retain or withdraw
        from the Collection Account the Master Servicing Fee, any additional
        compensation pursuant to Section 3.14 and any other amounts provided in this
        Agreement, and to the right of each Servicer to retain its Servicing Fee
        and any
        other amounts as provided in the applicable Servicing Agreement. The Master
        Servicer shall, and shall cause each Servicer to (to the extent provided
        in the
        applicable Servicing Agreement), provide access to information and documentation
        regarding the Mortgage Loans to the Indenture Trustee, its agents and
        accountants at any time upon reasonable request and during normal business
        hours, and to Securityholders that are savings and loan associations, banks
        or
        insurance companies, the Office of Thrift Supervision, the FDIC and the
        supervisory agents and examiners of such Office and Corporation or examiners
        of
        any other federal or state banking or insurance regulatory authority if so
        required by applicable regulations of the Office of Thrift Supervision or
        other
        regulatory authority, such access to be afforded without charge but only
        upon
        reasonable request in writing and during normal business hours at the offices
        of
        the Master Servicer designated by it. In fulfilling such a request the Master
        Servicer shall not be responsible for determining the sufficiency of such
        information.

       

      (b) All
        Mortgage Files and funds collected or held by, or under the control of, the
        Master Servicer, in respect of any Mortgage Loans, whether from the collection
        of principal and interest payments or from Liquidation Proceeds, Insurance
        Proceeds or Subsequent Recoveries, shall be held by the Master Servicer for
        and
        on behalf of the Indenture Trustee and the Securityholders and shall be and
        remain the sole and exclusive property of the Issuer; provided,
        however,
        that
        the Master Servicer and each Servicer shall be entitled to setoff against,
        and
        deduct from, any such funds any amounts that are properly due and payable
        to the
        Master Servicer or such Servicer under this Agreement or the applicable
        Servicing Agreement.

       

      
        
          
          

        

        
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      SECTION
        3.09. Standard
        Hazard Insurance and Flood Insurance Policies.

       

      (a) For
        each
        Mortgage Loan (other than a Cooperative Loan), the Master Servicer shall
        enforce
        any obligation of the Servicers under the related Servicing Agreements to
        maintain or cause to be maintained standard fire and casualty insurance and,
        where applicable, flood insurance, all in accordance with the provisions
        of the
        related Servicing Agreements. It is understood and agreed that such insurance
        shall be with insurers meeting the eligibility requirements set forth in
        the
        applicable Servicing Agreement and that no earthquake or other additional
        insurance is to be required of any Mortgagor or to be maintained on property
        acquired in respect of a defaulted loan, other than pursuant to such applicable
        laws and regulations as shall at any time be in force and as shall require
        such
        additional insurance.

       

      (b) Pursuant
        to Section 4.01 and 4.02, any amounts collected by the Servicers or the Master
        Servicer, or by any Servicer, under any insurance policies (other than amounts
        to be applied to the restoration or repair of the Mortgaged Property or released
        to the Mortgagor in accordance with the applicable Servicing Agreement) shall
        be
        deposited into the Collection Account, subject to withdrawal pursuant to
        Section
        4.02 and 4.03. Any cost incurred by the Master Servicer or any Servicer in
        maintaining any such insurance if the Mortgagor defaults in its obligation
        to do
        so shall be added to the amount owing under the Mortgage Loan where the terms
        of
        the Mortgage Loan so permit; provided,
        however,
        that
        the addition of any such cost shall not be taken into account for purposes
        of
        calculating the payments to be made to Securityholders and shall be recoverable
        by the Master Servicer or such Servicer pursuant to Section 4.02 and
        4.03.

       

      SECTION
        3.10. Presentment
        of Claims and Collection of Proceeds.

       

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

       

      SECTION
        3.11. Maintenance
        of the Primary Insurance Policies.

       

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

       

      
        
          
          

        

        
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      (b) The
        Master Servicer agrees to cause each Servicer (to the extent required under
        the
        related Servicing Agreement) to present, on behalf of the Indenture Trustee,
        the
        Issuer and the Securityholders, claims to the insurer under any Primary
        Insurance Policies and, in this regard, to take such reasonable action as
        shall
        be necessary to permit recovery under any Primary Insurance Policies respecting
        defaulted Mortgage Loans. Pursuant to Section 4.01 and 4.02, any amounts
        collected by the Servicer under any Primary Insurance Policies shall be
        deposited in the Collection Account, subject to withdrawal pursuant to Section
        4.03.

       

      SECTION
        3.12. Indenture
        Trustee to Retain Possession of Certain Insurance Policies and
        Documents.

       

      The
        Indenture Trustee (or the Custodian, as directed by the Indenture Trustee),
        shall retain possession and custody of the originals (to the extent available
        and delivered) of any Primary Insurance Policies, or certificate of insurance
        if
        applicable and available, and any certificates of renewal as to the foregoing
        as
        may be issued from time to time as contemplated by this Agreement and which
        come
        into its possession. Until all amounts distributable in respect of the Notes
        have been distributed in full and the Master Servicer otherwise has fulfilled
        its obligations under this Agreement, the Indenture Trustee (or its Custodian,
        if any, as directed by the Indenture Trustee) shall also retain possession
        and
        custody of each Mortgage File in accordance with and subject to the terms
        and
        conditions of this Agreement. The Master Servicer shall promptly deliver
        or
        cause to be delivered to the Indenture Trustee (or the Custodian, as directed
        by
        the Indenture Trustee), upon the execution or receipt thereof the originals
        of
        any Primary Insurance Policies, any certificates of renewal, and such other
        documents or instruments that constitute portions of the Mortgage File that
        come
        into the possession of the Master Servicer from time to time.

       

      SECTION
        3.13. Realization
        Upon Defaulted Mortgage Loans.

       

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

       

      
        
          
          

        

        
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      SECTION
        3.14. Additional
        Compensation to the Master Servicer. 

       

      Pursuant
        to Section 4.02(c), certain income and gain realized from any investment
        of
        funds in the Collection Account shall be for the benefit of the Master Servicer
        as additional compensation. Servicing compensation in the form of assumption
        fees, if any, late payment charges, as collected, if any, or otherwise (but,
        unless otherwise specifically permitted in a Servicing Agreement, not including
        any Prepayment Penalty Amounts) shall be retained by the applicable Servicer,
        or
        the Master Servicer, and shall not be deposited in the related Servicing
        Account
        or Collection Account. The
        Master Servicer shall be required to pay all expenses incurred by it in
        connection with its activities hereunder and shall not be entitled to
        reimbursement therefor except as provided in this Agreement. The amount of
        the
        aggregate compensation payable as set forth in this Section 3.14 plus the
        Master
        Servicing Fee due to the Master Servicer in respect of any Payment Date shall
        be
        reduced in accordance with Section 5.06.

       

      SECTION
        3.15. REO
        Property.

       

      (a) In
        the
        event the Issuer (or the Indenture Trustee on its behalf) acquires ownership
        of
        any REO Property in respect of any related Mortgage Loan, the deed or
        certificate of sale shall be issued to the Issuer, or if required under
        applicable law, to the Indenture Trustee, or to its nominee, on behalf of
        the
        Issuer. The Master Servicer shall, to the extent provided in the applicable
        Servicing Agreement, cause the applicable Servicer to sell, any REO Property
        as
        expeditiously as possible and in accordance with the provisions of this
        Agreement and the related Servicing Agreement, as applicable. Pursuant to
        its
        efforts to sell such REO Property, the Master Servicer shall cause the
        applicable Servicer to protect and conserve, such REO Property in the manner
        and
        to the extent required by the applicable Servicing Agreement.

       

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

       

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

       

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

       

      
        
          
          

        

        
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      SECTION
        3.16. Assessments
        of Compliance and Attestation Reports.

       

      (a) Assessments
        of Compliance.

       

      (i) By
        March
        10 (with a 5 calendar day cure period) of each year (subject to the later
        date
        referred to in Section 3.16(a)(iii)), commencing in March
        [     ], the Master Servicer, the Securities
        Administrator and the Custodian, each at its own expense, shall furnish,
        and
        each such party shall cause any Servicing Function Participant engaged by
        it
        (unless such party has elected to take responsibility for assessing compliance
        with the Relevant Servicing Criteria and providing the related attestation
        for
        any such Subcontractor engaged by it in accordance with Regulation AB Telephone
        Interpretation 17.06) to furnish, each at its own expense, to the Securities
        Administrator and the Depositor, a report on an assessment of compliance
        with
        the Relevant Servicing Criteria that contains (A) a statement by such party
        of
        its responsibility for assessing compliance with the Relevant Servicing
        Criteria, (B) a statement that such party used the Servicing Criteria to
        assess
        compliance with the Relevant Servicing Criteria, (C) such party’s assessment of
        compliance with the Relevant Servicing Criteria as of and for the fiscal
        year
        covered by the Form 10-K required to be filed pursuant to Section 3.19(b)
        and
        for each fiscal year thereafter, whether or not a Form 10-K is required to
        be
        filed, including, if there has been any material instance of noncompliance
        with
        the Relevant Servicing Criteria, a discussion of each such failure and the
        nature and status thereof, and (D) a statement that a registered public
        accounting firm has issued an attestation report on such party’s assessment of
        compliance with the Relevant Servicing Criteria as of and for such period.
        

      

      (ii) No
        later
        than the end of each fiscal year for the Issuer for which a Form 10-K is
        required to be filed, the Master Servicer and the Custodian, shall each forward
        to the Securities Administrator and the Depositor the name of each Servicing
        Function Participant engaged by it and what Relevant Servicing Criteria will
        be
        addressed in the report on assessment of compliance prepared by such Servicing
        Function Participant (provided,
        however,
        that the
        Master Servicer need not provide such information to the Securities
        Administrator so long as the Master Servicer and the Securities Administrator
        are the same Person). When the Master Servicer, the Custodian, and the
        Securities Administrator submit their assessments to the Securities
        Administrator, such parties will also at such time include the assessment
        (and
        attestation pursuant to subsection (b) of this Section 3.16) of each Servicing
        Function Participant engaged by it.

      

      (iii) Promptly
        after receipt of each such report on assessment of compliance, (i) the Depositor
        shall review each such report and each comparable report submitted by a Servicer
        and, if applicable, consult with the Master Servicer, the Securities
        Administrator, the Custodian, the Servicers and any Servicing Function
        Participant engaged by such parties as to the nature of any material instance
        of
        noncompliance with the Relevant Servicing Criteria by each such party, and
        (ii)
        the Securities Administrator shall confirm that the assessments, taken as
        a
        whole, address all of the Servicing Criteria and taken individually address
        the
        Relevant Servicing Criteria for each party as set forth on Exhibit Q and
        on any
        similar exhibit set forth in each Servicing Agreement in respect of each
        Servicer and notify the Depositor of any exceptions. None of such parties
        shall
        be required to deliver any such assessments until March 30 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 Issuer for the preceding calendar
        year which, if the circumstances apply, the Depositor agrees to provide prior
        to
        March 1 of the applicable year; provided that the Custodian shall only be
        required to deliver such an assessment of compliance with respect to any
        fiscal
        year for which a Form 10-K is required to be filed in respect of the Issuer.
        The
        Master Servicer shall include all annual reports on assessment of compliance
        received by it with its own assessment of compliance to be submitted to the
        Securities Administrator pursuant to this Section.

      

      

      
        
          
          

        

        
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      In
        the
        event the Master Servicer, the Securities Administrator, the Custodian, any
        Servicer or any Servicing Function Participant engaged by any such party
        is
        terminated, assigns its rights and obligations under, or resigns pursuant
        to,
        the terms of this Agreement, or any applicable custodial agreement, Servicing
        Agreement or sub-servicing agreement, as the case may be, such party (in
        the
        case of a Servicer, to the extent required under the applicable Servicing
        Agreement) shall provide or shall cause such Servicing Function Participant
        to
        provide for the applicable period preceding such assignment and termination
        a
        report on assessment of compliance pursuant to this Section 3.16(a) or to
        such
        other applicable agreement, notwithstanding any such termination, assignment
        or
        resignation.

      

      (b) Attestation
        Reports.

       

      (i) By
        March
        10 (with a 5 calendar day cure period) of each year (subject to the later
        date
        referred to in Section 3.16(b)(ii)), commencing in March
        [     ], the Master Servicer, the Securities
        Administrator, the Custodian, each at its own expense, shall cause, and each
        such party shall cause any Servicing Function Participant engaged by it to
        cause
        (unless such party has elected to take responsibility for assessing compliance
        with the Relevant Servicing Criteria and providing the related attestation
        with
        respect to such Relevant Servicing Criteria for such Subcontractor engaged
        by it
        in accordance with Regulation AB Telephone Interpretation 17.06), each at
        its
        own expense, a registered public accounting firm (which may also render other
        services to the Master Servicer, the Indenture Trustee, in its capacity as
        Custodian, the Securities Administrator, or such other Servicing Function
        Participants, as the case may be) and that is a member of the American Institute
        of Certified Public Accountants to furnish a report to the Securities
        Administrator and the Depositor, to the effect that (i) it has obtained a
        representation regarding certain matters from the management of such party,
        which includes an assertion that such party has complied with the Relevant
        Servicing Criteria, and (ii) on the basis of an examination conducted by
        such
        firm in accordance with standards for attestation engagements issued or adopted
        by the PCAOB, it is expressing an opinion as to whether such party’s compliance
        with the Relevant Servicing Criteria was fairly stated in all material respects,
        or it cannot express an overall opinion regarding such party’s assessment of
        compliance with the Relevant Servicing Criteria. In the event that an overall
        opinion cannot be expressed, such registered public accounting firm shall
        state
        in such report why it was unable to express such an opinion. Such report
        must be
        available for general use and not contain restricted use language. 

      

      
        
          
          

        

        
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      (ii) Promptly
        after receipt of such report from the Master Servicer, the Indenture Trustee,
        in
        its capacity as Custodian, the Securities Administrator, a Servicer or any
        Servicing Function Participant engaged by such parties, (i) the Depositor
        shall
        review the report and, if applicable, consult with such parties as to the
        nature
        of any defaults by such parties, in the fulfillment of any of each such party’s
        obligations hereunder or under any other applicable agreement, and (ii) the
        Securities Administrator shall confirm that each assessment submitted pursuant
        to subsection (a) of this Section 3.16 is coupled with an attestation meeting
        the requirements of this Section and notify the Depositor of any exceptions.
        None of the Master Servicer, the Securities Administrator, the Custodian
        or any
        Servicing Function Participant engaged by such parties shall be required
        to
        deliver or cause the delivery of such reports until March 30 in any given
        year
        for 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 Issuer for the preceding
        calendar or fiscal year which, if the circumstances apply, the Depositor
        agrees
        to provide prior to March 1 of the applicable year; provided that the Custodian
        shall only be required to deliver or cause to be delivered such report with
        respect to any fiscal year for which a Form 10-K is required to be filed
        by the
        Issuer. The Master Servicer shall include each such attestation furnished
        to it
        with its own attestation to be submitted to the Securities Administrator
        pursuant to this Section.

       

      In
        the
        event the Master Servicer, the Securities Administrator, the Custodian, any
        Servicer or any Servicing Function Participant engaged by any such party
        is
        terminated, assigns its rights and duties under, or resigns pursuant to the
        terms of this Agreement, or any applicable custodial agreement, Servicing
        Agreement or sub-servicing agreement, as the case may be, such party (in
        the
        case of a Servicer, to the extent required under the applicable Servicing
        Agreement) shall cause a registered public accounting firm to provide an
        attestation pursuant to this Section 3.16(b) or to such other applicable
        agreement, for the applicable period immediately preceding such termination,
        assignment or resignation, notwithstanding any such termination, assignment
        or
        resignation.

       

      SECTION
        3.17. Annual
        Compliance Statement.

       

      The
        Master Servicer and the Securities Administrator shall deliver (and the Master
        Servicer and Securities Administrator shall cause any Servicing Function
        Participant engaged by it to deliver) to the Depositor and the Securities
        Administrator on or before March 10 (with a 5 calendar day cure period) of
        each
        year, commencing in March [     ], an Officer’s
        Certificate stating, as to the signer thereof, that (A) a review of such
        party’s
        activities during the preceding calendar year or portion thereof and of such
        party’s performance under this Agreement, or such other applicable agreement in
        the case of any Servicing Function Participant, has been made under such
        officer’s supervision and (B) to the best of such officer’s knowledge, based on
        such review, such party has fulfilled all its obligations under this Agreement,
        or such other applicable agreement in the case of any Servicing Function
        Participant, in all material respects throughout such year or portion thereof,
        or, if there has been a failure to fulfill any such obligation in any material
        respect, specifying each such failure known to such officer and the nature
        and
        status thereof. Promptly after receipt of each such Officer’s Certificate, the
        Depositor shall review such Officer’s Certificate and, if applicable, consult
        with each such party, as applicable, as to the nature of any failures by
        such
        party, in the fulfillment of any of such party’s obligations hereunder or, in
        the case of any Servicing Function Participant, under such other applicable
        agreement. The Master Servicer shall include all annual statements of compliance
        received by it from each Servicer with its own annual statement of compliance
        to
        be submitted to the Securities Administrator pursuant to this Section. In
        the
        event the Master Servicer, the Securities Administrator or any Servicing
        Function Participant engaged by any such party is terminated or resigns pursuant
        to the terms of this Agreement, or any applicable agreement in the case of
        a
        Servicing Function Participant, as the case may be, such party shall provide
        an
        Officer’s Certificate pursuant to this Section 3.17 or to such applicable
        agreement, as the case may be, notwithstanding any such termination, assignment
        or resignation.

       

      
        
          
          

        

        
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      SECTION
        3.18. Sarbanes-Oxley
        Certification.

       

      Each
        Form
        10-K shall include a Sarbanes-Oxley Certification, required to be included
        therewith pursuant to the Sarbanes-Oxley Act. The Master Servicer and the
        Securities Administrator shall provide, and each such party shall cause any
        Servicing Function Participant engaged by it to provide, to the Person who
        signs
        the Sarbanes-Oxley Certification (the “Certifying
        Person”),
        by
        March 1 (with a ten-calendar day cure period), (or by such other date and
        cure
        period specified in the applicable Servicing Agreement), of each year in
        which
        the Issuer is subject to the reporting requirements of the Exchange Act and
        otherwise within a reasonable period of time upon request, a certification,
        if
        applicable in the form provided by the related Servicing Agreement (each,
        a
“Back-Up
        Certification”),
        upon
        which the Certifying Person, the entity for which the Certifying Person acts
        as
        an officer, and such entity’s officers, directors and Affiliates can reasonably
        rely. The senior officer of the Master Servicer in charge of the master
        servicing function shall serve as the Certifying Person on behalf of the
        Issuer.
        Such officer of the Certifying Person can be contacted by e-mail at
        [     ] or by facsimile at
        [     ]. In the event any such party or any Servicing
        Function Participant engaged by such party is terminated or resigns pursuant
        to
        the terms of this Agreement, or any applicable sub-servicing agreement, as
        the
        case may be, such party shall provide a Back-Up Certification to the Certifying
        Person pursuant to this Section 3.18 with respect to the period of time it
        was
        subject to this Agreement or any applicable sub-servicing agreement, as the
        case
        may be. Notwithstanding the foregoing, (i) the Master Servicer and the
        Securities Administrator shall not be required to deliver a Back-Up
        Certification to each other if both are the same Person and the Master Servicer
        is the Certifying Person and (ii) the Master Servicer shall not be obligated
        to
        sign the Sarbanes-Oxley Certification in the event that it does not receive
        any
        Back-Up Certification required to be furnished to it pursuant to this section
        or
        any Servicing Agreement or custodial agreement.

       

      SECTION
        3.19. Reports
        Filed with Securities and Exchange Commission.

       

      (a) Reports
        Filed on Form 10-D. 

       

      (i) Within
        15
        days after each Payment Date (subject to permitted extensions under the Exchange
        Act), the Securities Administrator shall prepare and file on behalf of the
        Issuer any Form 10-D required by the Exchange Act, in form and substance
        as
        required by the Exchange Act. The Securities Administrator shall file each
        Form
        10-D with a copy of the related Payment Date Statement attached thereto.
        Any
        disclosure in addition to the Payment Date Statement that is required to
        be
        included on Form 10-D (“Additional
        Form 10-D Disclosure”)
        shall
        be reported by the parties set forth on Exhibit R to the Depositor and the
        Securities Administrator and directed and approved by the Depositor pursuant
        to
        the following paragraph and the Securities Administrator will have no duty
        or
        liability for any failure hereunder to determine or prepare any Additional
        Form
        10-D Disclosure, except as set forth in the next two paragraphs. 

      

      
        
          
          

        

        
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      (ii) As
        set
        forth on Exhibit R hereto, within 5 calendar days after the related Payment
        Date, (i) the parties to the Thornburg Mortgage Securities Trust
        [     ] transaction shall be required to provide to the
        Securities Administrator and the Depositor, to the extent known by a responsible
        officer thereof, in EDGAR-compatible form (which may be Word or Excel documents
        easily convertible to EDGAR format), or in such other form as otherwise agreed
        upon by the Securities Administrator and such party, the form and substance
        of
        any Additional Form 10-D Disclosure, if applicable, together with an Additional
        Disclosure Notification in the form of Exhibit U hereto (an “Additional
        Disclosure Notification”),
        and
        (ii) the Depositor will approve, as to form and substance, or disapprove,
        as the
        case may be, the inclusion of the Additional Form 10-D Disclosure on Form
        10-D.
        The Initial Seller will be responsible for any reasonable fees and expenses
        assessed or incurred by the Securities Administrator in connection with
        including any Additional Form 10-D Disclosure in Form 10-D pursuant to this
        paragraph, provided that if the Additional Form 10-D Disclosure relates solely
        to the Depositor, such fees and expenses shall be paid by the
        Depositor.

      

      (iii) After
        preparing the Form 10-D, the Securities Administrator shall forward upon
        request
        electronically a copy of the Form 10-D to the Depositor (provided that such
        Form
        10-D includes any Additional Form 10-D Disclosure). Within two Business Days
        after receipt of such copy, but no later than the 12th
        calendar
        day after the Payment Date, the Depositor shall notify the Securities
        Administrator in writing (which may be furnished electronically) of any changes
        to or approval of such Form 10-D. In the absence of receipt of any written
        changes or approval, or if the Depositor does not request a copy of a Form
        10-D,
        the Securities Administrator shall be entitled to assume that such Form 10-D
        is
        in final form and the Securities Administrator may proceed with the execution
        and filing of the Form 10-D. A duly authorized representative of the Master
        Servicer shall sign each Form 10-D. If a Form 10-D cannot be filed on time
        or if
        a previously filed Form 10-D needs to be amended, the Securities Administrator
        will follow the procedures set forth in subsection (d)(ii) of this Section
        3.19.
        Promptly (but no later than 1 Business Day) after filing with the Commission,
        the Securities Administrator will make available on its internet website
        a final
        executed copy of each Form 10-D filed by the Securities Administrator. Each
        party to this Agreement acknowledges that the performance by the Master Servicer
        and the Securities Administrator of their respective duties under this Section
        3.19(a) related to the timely preparation, execution and filing of Form 10-D
        is
        contingent upon such parties strictly observing all applicable deadlines
        in the
        performance of their duties under this Section 3.19(a). Neither the Master
        Servicer nor the Securities Administrator shall have any liability for any
        loss,
        expense, damage, claim arising out of or with respect to any failure to properly
        prepare, execute and/or timely file such Form 10-D, where such failure results
        from the Securities Administrator’s inability or failure to obtain or receive,
        on a timely basis, any information from any other party hereto needed to
        prepare, arrange for execution or file such Form 10-D, not resulting from
        its
        own negligence, bad faith or willful misconduct.

      

      
        
          
          

        

        
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      (iv) Form
        10-D
        requires the registrant to indicate (by checking “yes” or “no”) that it (1) has
        filed all reports required to be filed by Section 13 or 15(d) of the Exchange
        Act during the preceding 12 months (or for such shorter period that the
        registrant was required to file such reports), and (2) has been subject to
        such
        filing requirements for the past 90 days.” The Depositor hereby represents to
        the Securities Administrator that the Depositor has filed all such required
        reports during the preceding 12 months and that it has been subject to such
        filing requirement for the past 90 days. The Depositor shall notify the
        Securities Administrator in writing, no later than the fifth calendar day
        after
        the related Payment Date with respect to the filing of a report on Form 10-D
        if
        the answer to the questions should be “no.” The Securities Administrator shall
        be entitled to rely on such representations in preparing, executing and/or
        filing any such report

      

      (b) Reports
        Filed on Form 10-K.

       

      (i) On
        or
        prior to the 90th
        day
        after the end of each fiscal year of the Issuer in which a Form 10-K is required
        to be filed or such earlier date as may be required by the Exchange Act (the
        “10-K
        Filing Deadline”)
        (it
        being understood that the fiscal year for the Issuer ends on December
        31st
        of each
        year), commencing in March [     ], the Securities
        Administrator shall prepare and file on behalf of the Issuer a Form 10-K,
        in
        form and substance as required by the Exchange Act. Each such Form 10-K shall
        include the following items, in each case to the extent they have been delivered
        to the Securities Administrator within the applicable time frames set forth
        in
        this Agreement and the related Servicing Agreement, (i) an annual compliance
        statement for each Servicer, the Master Servicer, the Securities Administrator
        and any Servicing Function Participant engaged by such parties (each, a
“Reporting
        Servicer”)
        as
        described under Section 3.17, (ii)(A) the annual reports on assessment of
        compliance with servicing criteria for each Reporting Servicer, as described
        under Section 3.16(a), and (B) if each Reporting Servicer’s report on assessment
        of compliance with servicing criteria described under Section 3.16(a) identifies
        any material instance of noncompliance, disclosure identifying such instance
        of
        noncompliance, or if each Reporting Servicer’s report on assessment of
        compliance with servicing criteria described under Section 3.16(a) is not
        included as an exhibit to such Form 10-K, disclosure that such report is
        not
        included and an explanation why such report is not included, (iii)(A) the
        registered public accounting firm attestation report for each Reporting
        Servicer, as described under Section 3.16(b), and (B) if any registered public
        accounting firm attestation report described under Section 3.16(b) identifies
        any material instance of noncompliance, disclosure identifying such instance
        of
        noncompliance, or if any such registered public accounting firm attestation
        report is not included as an exhibit to such Form 10-K, disclosure that such
        report is not included and an explanation why such report is not included,
        and
        (iv) a Sarbanes-Oxley Certification as described in Section 3.18 (provided,
        however,
        that the
        Securities Administrator, at its discretion, may omit from the Form 10-K
        any
        annual compliance statement, assessment of compliance or attestation report
        that
        is not required to be filed with such Form 10-K pursuant to Regulation AB).
        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 determined and prepared by and at the direction of the Depositor pursuant
        to
        the following paragraph and the Securities Administrator will have no duty
        or
        liability for any failure hereunder to determine or prepare any Additional
        Form
        10-K Disclosure, except as set forth in the next two paragraphs. 

      

      
        
          
          

        

        
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      (ii) As
        set
        forth on Exhibit S hereto, no later than March 10 (with a 5 calendar day
        cure
        period) of each year that the Issuer is subject to the Exchange Act reporting
        requirements, commencing in [     ], (i) the parties to
        the Thornburg Mortgage Securities Trust [     ]
        transaction shall be required to provide to the Securities Administrator
        and the
        Depositor, to the extent known by a responsible officer thereof, in
        EDGAR-compatible form (which may be Word or Excel documents easily convertible
        to EDGAR format), or in such other form as otherwise agreed upon by the
        Securities Administrator and such party, the form and substance of any
        Additional Form 10-K Disclosure, if applicable, together with an Additional
        Disclosure Notification and (ii) the Depositor will approve, as to form and
        substance, or disapprove, as the case may be, the inclusion of the Additional
        Form 10-K Disclosure on Form 10-K. The Initial Seller will be responsible
        for
        any reasonable fees and expenses assessed or incurred by the Securities
        Administrator in connection with including any Additional Form 10-K Disclosure
        in Form 10-K pursuant to this paragraph, provided that if the Additional
        Form
        10-K Disclosure relates solely to the Depositor, such fees and expenses shall
        be
        paid by the Depositor.

      

      (iii) After
        preparing the Form 10-K, the Securities Administrator shall forward upon
        request
        electronically a copy of the Form 10-K to the Depositor. Within three Business
        Days after receipt of such copy, but no later than March 25th,
        the
        Depositor shall notify the Securities Administrator in writing (which may
        be
        furnished electronically) of any changes to or approval of such Form 10-K.
        In
        the absence of receipt of any written changes or approval, or if the Depositor
        does not request a copy of a Form 10-K, the Securities Administrator shall
        be
        entitled to assume that such Form 10-K is in final form and the Securities
        Administrator may proceed with the execution and filing of the Form 10-K.
        A
        senior officer of the Master Servicer in charge of the master servicing function
        shall sign the Form 10-K. If a Form 10-K cannot be filed on time or if a
        previously filed Form 10-K needs to be amended, the Securities Administrator
        will follow the procedures set forth in subsection (d)(ii) of this Section
        3.19.
        Promptly (but no later than 1 Business Day) after filing with the Commission,
        the Securities Administrator will make available on its internet website
        a final
        executed copy of each Form 10-K filed by the Securities Administrator. The
        parties to this Agreement acknowledge that the performance by the Master
        Servicer and the Securities Administrator of its duties under this Section
        3.19(b) related to the timely preparation, execution and filing of Form 10-K
        is
        contingent upon such parties (the Custodian and any Servicing Function
        Participant) strictly observing all applicable deadlines in the performance
        of
        their duties under this Section 3.19(b), Section 3.18, Section 3.17, Section
        3.16(a) and Section 3.16(b). Neither the Master Servicer nor the Securities
        Administrator shall have any liability for any loss, expense, damage or claim
        arising out of or with respect to any failure to properly prepare, execute
        and/or timely file such Form 10-K, where such failure results from the
        Securities Administrator’s inability or failure to obtain or receive, on a
        timely basis, any information from any other party hereto needed to prepare,
        arrange for execution or file such Form 10-K, not resulting from its own
        negligence, bad faith or willful misconduct.

      

      
        
          
          

        

        
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      (iv) Form
        10-K
        requires the registrant to indicate (by checking "yes" or "no") that it “(1) has
        filed all reports required to be filed by Section 13 or 15(d) of the Exchange
        Act during the preceding 12 months (or for such shorter period that the
        registrant was required to file such reports), and (2) has been subject to
        such
        filing requirements for the past 90 days.” The Depositor hereby represents to
        the Securities Administrator that the Depositor has filed all such required
        reports during the preceding 12 months and that it has been subject to such
        filing requirement for the past 90 days. The Depositor shall notify the
        Securities Administrator in writing, no later than March 15th
        with
        respect to the filing of a report on Form 10-K, if the answer to the questions
        should be “no.” The Securities Administrator shall be entitled to rely on such
        representations in preparing, executing and/or filing any such
        report.

      

      (c) Reports
        Filed on Form 8-K.

       

      (i) Within
        four (4) Business Days after the occurrence of an event requiring disclosure
        on
        Form 8-K (each such event, a “Reportable
        Event”),
        and
        if requested by the Depositor, the Securities Administrator shall prepare
        and
        file on behalf of the Issuer a Form 8-K, as required by the Exchange Act,
        provided that the Depositor shall file the initial Form 8-K in connection
        with
        the issuance of the Offered Notes. Any disclosure or information related
        to a
        Reportable Event or that is otherwise required to be included in Form 8-K
        (“Form
        8-K Disclosure Information”)
        shall
        be reported by the parties set forth on Exhibit T to the Depositor and the
        Securities Administrator and directed and approved by the Depositor pursuant
        to
        the following paragraph and the Securities Administrator will have no duty
        or
        liability for any failure hereunder to determine or prepare any Form 8-K
        Disclosure Information or any Form 8-K, except as set forth in the next two
        paragraphs. 

      

      (ii) As
        set
        forth on Exhibit T hereto, for so long as the Issuer is subject to the Exchange
        Act reporting requirements, no later than close of business (New York City
        time)
        on the 2nd Business Day after the occurrence of a Reportable Event (i) the
        parties to the Thornburg Mortgage Securities Trust
        [     ] transaction shall be required to provide to the
        Securities Administrator and Depositor, to the extent known by a responsible
        officer thereof, in EDGAR-compatible form (which may be Word or Excel documents
        easily convertible to EDGAR format), or in such other form as otherwise agreed
        upon by the Securities Administrator and such party, the form and substance
        of
        any Form 8-K Disclosure Information, if applicable, together with an Additional
        Disclosure Notification and (ii) the Depositor will approve, as to form and
        substance, or disapprove, as the case may be, the inclusion of the Form 8-K
        Disclosure Information. The Initial Seller will be responsible for any
        reasonable fees and expenses assessed or incurred by the Securities
        Administrator in connection with including any Form 8-K Disclosure Information
        in Form 8-K pursuant to this paragraph, provided that if the Additional Form
        8-K
        Disclosure Information relates solely to the Depositor, such fees and expenses
        shall be paid by the Depositor.

      

      
        
          
          

        

        
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      (iii) After
        preparing the Form 8-K, the Securities Administrator shall forward upon request
        electronically a copy of the Form 8-K to the Depositor. Promptly, but no
        later
        than the close of business on the third Business Day after the Reportable
        Event,
        the Depositor shall notify the Securities Administrator in writing (which
        may be
        furnished electronically) of any changes to or approval of such Form 8-K.
        In the
        absence of receipt of any written changes or approval, or if the Depositor
        does
        not request a copy of a Form 8-K, the Securities Administrator shall be entitled
        to assume that such Form 8-K is in final form and the Securities Administrator
        may proceed with the execution and filing of the Form 8-K. A duly authorized
        representative of the Master Servicer shall sign each Form 8-K filed by the
        Securities Administrator. If a Form 8-K cannot be filed on time or if a
        previously filed Form 8-K needs to be amended, the Securities Administrator
        will
        follow the procedures set forth in subsection (d)(ii) of this Section 3.19.
        Promptly (but no later than 1 Business Day) after filing with the Commission,
        the Securities Administrator will, make available on its internet website
        a
        final executed copy of each Form 8-K filed by the Securities Administrator
        or
        filed by the Depositor and provided to the Securities Administrator for that
        purpose. The parties to this Agreement acknowledge that the performance by
        the
        Master Servicer and the Securities Administrator of their respective duties
        under this Section 3.19(c) related to the timely preparation, execution and
        filing of Form 8-K is contingent upon such parties strictly observing all
        applicable deadlines in the performance of their duties under this Section
        3.19(c). Neither the Securities Administrator nor the Master Servicer shall
        have
        any liability for any loss, expense, damage, claim arising out of or with
        respect to any failure to properly prepare, execute and/or timely file such
        Form
        8-K, where such failure results from the Securities Administrator’s inability or
        failure to obtain or receive, on a timely basis, any information from any
        other
        party hereto needed to prepare, arrange for execution or file such Form 8-K,
        not
        resulting from its own negligence, bad faith or willful misconduct.

      

      (d) Delisting;
        Amendments; Late Filings.

       

      (i) On
        or
        prior to January 30 of the first year in which the Securities Administrator
        is
        able to do so under applicable law, unless otherwise directed by the Depositor,
        the Securities Administrator shall prepare and file a Form 15 relating to
        the
        automatic suspension of reporting in respect of the Issuer under the Exchange
        Act. 

       

      (ii) In
        the
        event that the Securities Administrator is unable to timely file with the
        Commission all or any required portion of any Form 8-K, 10-D or 10-K required
        to
        be filed by this Agreement because required disclosure information was either
        not delivered to it or delivered to it after the delivery deadlines set forth
        in
        this Agreement or for any other reason, the Securities Administrator will
        promptly notify electronically the Depositor. In the case of Form 10-D and
        10-K,
        the parties to this Agreement and each Servicer will 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 Securities
        Administrator will, upon receipt of all required Form 8-K Disclosure Information
        and upon the approval and direction of the Depositor, include such disclosure
        information on the next Form 10-D. In the event that any previously filed
        Form
        8-K, 10-D or 10-K needs to be amended, and such amendment includes any
        Additional Form 10-D Disclosure, any Additional Form 10-K Disclosure or any
        Form
        8-K Disclosure Information or any amendment to such disclosure, the Securities
        Administrator will promptly notify electronically the Depositor and such
        parties
        will cooperate to prepare any necessary 8-KA, 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
        a duly
        authorized representative or a senior officer in charge of master servicing,
        as
        applicable, of the Master Servicer. The parties to this Agreement acknowledge
        that the performance by the Master Servicer and the Securities Administrator
        of
        their respective duties under this Section 3.19(d) related to the timely
        preparation, execution and filing of Form 15, a Form 12b-25 or any amendment
        to
        Form 8-K, 10-D or 10-K is contingent upon each such party performing its
        duties
        under this Section. Neither the Master Servicer nor the Securities Administrator
        shall have any liability for any loss, expense, damage, claim arising out
        of or
        with respect to any failure to properly prepare, execute and/or timely file
        any
        such Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, where
        such failure results from the Securities Administrator’s inability or failure to
        obtain or receive, on a timely basis, any information from any other party
        hereto 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.

      

      
        
          
          

        

        
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      SECTION
        3.20. Additional
        Information.

       

      Each
        of
        the parties agrees to provide to the Securities Administrator such additional
        information related to such party as the Securities Administrator may reasonably
        request, including evidence of the authorization of the person signing any
        certification or statement, financial information and reports, and such other
        information related to such party or its performance hereunder. 

       

      SECTION
        3.21. Intention
        of the Parties and Interpretation.

       

      Each
        of
        the parties acknowledges and agrees that the purpose of Section 3.16 through
        Section 3.20 of this Agreement is to facilitate compliance by the Securities
        Administrator and the Depositor with the provisions of Regulation AB promulgated
        by the Commission under the Exchange Act, as such may be amended from time
        to
        time and subject to such clarification and interpretive advice as may be
        issued
        by the staff of the Commission from time to time. Therefore, each of the
        parties
        agrees that (a) the obligations of the parties hereunder shall be interpreted
        in
        such a manner as to accomplish that purpose, (b) the parties’ obligations
        hereunder will be supplemented and modified as necessary to be consistent
        with
        any such amendments, interpretive advice or guidance, convention or consensus
        among active participants in the asset-backed securities markets, advice
        of
        counsel, or otherwise in respect of the requirements of Regulation AB, (c)
        the
        parties shall comply with the reasonable requests made by the Securities
        Administrator or the Depositor for delivery of such additional or different
        information as the Securities Administrator or the Depositor may determine
        in
        good faith is necessary to comply with the provisions of Regulation AB, which
        information is available to such party without unreasonable effort or expense
        and within such timeframe as may be reasonably requested, and (d) no amendment
        of this Agreement shall be required to effect any such changes in the parties’
obligations as are necessary to accommodate evolving interpretations of the
        provisions of Regulation AB.

       

      
        
          
          

        

        
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      SECTION
        3.22. Indemnification.
        

       

      Each
        party required to deliver an assessment of compliance and attestation report
        pursuant to Section 3.16 (each, an “Item
        1122 Responsible Party”)
        shall
        indemnify and hold harmless the Securities Administrator, the Master Servicer,
        the Depositor, the Initial Seller and the Seller and each of their directors,
        officers, employees, agents, and affiliates from and against any and all
        claims,
        losses, damages, penalties, fines, forfeitures, reasonable legal fees and
        related costs, judgments and other costs and expenses arising out of or based
        upon (a) any breach by such Item 1122 Responsible Party of any of its
        obligations hereunder relating to its obligations as an Item 1122 Responsible
        Party, including particularly its obligations to provide any assessment of
        compliance, attestation report or compliance statement required under Section
        3.16(a), 3.16(b) or 3.17, respectively, or any information, data or materials
        required to be included in any Exchange Act report, (b) any material
        misstatement or material omission in any information, data or materials provided
        by such Item 1122 Responsible Party (or, in the case of the Securities
        Administrator or Master Servicer, any material misstatement or material omission
        in (x) any compliance certificate delivered by it, or by any Servicing Function
        Participant engaged by it, pursuant to this Agreement, (y) any assessment
        or
        attestation delivered by or on behalf of it, or by any Servicing Function
        Participant engaged by it, pursuant to this Agreement, or (z) any
        Additional Form 10-D Disclosure, Additional Form 10-K Disclosure or Form
        8-K
        Disclosure Information concerning the Securities Administrator or the Master
        Servicer and provided by either of them), or (c) the negligence, bad faith
        or
        willful misconduct of such Item 1122 Responsible Party in connection with
        its
        performance hereunder relating to its obligations as an Item 1122 Responsible
        Party. If the indemnification provided for herein is unavailable or insufficient
        to hold harmless the Securities Administrator, the Depositor, the Initial
        Seller
        or the Seller, then each Item 1122 Responsible Party agrees that it shall
        contribute to the amount paid or payable by the Securities Administrator,
        the
        Master Servicer, the Depositor, the Initial Seller or the Seller as a result
        of
        any claims, losses, damages or liabilities incurred by the Securities
        Administrator, the Master Servicer, the Depositor, the Initial Seller or
        the
        Seller in such proportion as is appropriate to reflect the relative fault
        of the
        Securities Administrator, the Master Servicer, the Depositor, the Initial
        Seller
        or the Seller on the one hand and such Item 1122 Responsible Party on the
        other.
        This indemnification shall survive the termination of this Agreement or the
        termination of any party to this Agreement.

       

      
        
          
          

        

        
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      SECTION
        3.23. Amendments
        to Master Servicing Guide and Correspondent Sellers Guide. 

       

      The
        Initial Seller and the Master Servicer hereby agree not to amend the Master
        Servicing Guide or the Correspondent Sellers Guide with respect to the Mortgage
        Loans (which are Securitized Loans (as defined therein)) which amendment
        would
        (i) change the Servicer Remittance Date or date for remittance of any servicer
        reports or monthly remittance advices, (ii) change the manner in which any
        Servicer makes Advances, servicing advances or amounts to compensate for
        Interest Shortfalls or (iii) otherwise have a material adverse effect on
        the
        Issuer or the Securityholders unless such changes are made pursuant to the
        provisions of Section 12.01 hereof. 

       

      SECTION
        3.24. Uniform
        Commercial Code.

       

      The
        Securities Administrator agrees to file continuation statements for any Uniform
        Commercial Code financing statements identifying the Issuer as debtor which
        the
        Depositor has informed the Securities Administrator in writing were filed
        on the
        Closing Date in connection with the Issuer, provided that the Securities
        Administrator receives the related filing information on a timely basis.
        The
        Depositor shall file any financing statements or amendments thereto required
        by
        any change in the Uniform Commercial Code.

       

      SECTION
        3.25. Optional
        and Required Purchases of Certain Mortgage Loans.

       

      (a) Thornburg,
        in its capacity as a Servicer of a portion of the Mortgage Loans, shall have
        the
        right to purchase from the Issuer any Mortgage Loan which as of the first
        day of
        a calendar quarter is delinquent in payment by 90 days or more or is an REO
        Property, at a price equal to the Purchase Price; provided,
        however
        (i) that
        such Mortgage Loan is still 90 days or more delinquent or is an REO Property
        as
        of the date of such purchase and (ii) this purchase option, if not theretofore
        exercised, shall terminate on the date prior to the last day of the related
        calendar quarter. This purchase option, if not exercised, shall not be
        thereafter reinstated unless the delinquency is cured and the Mortgage Loan
        thereafter again becomes 90 days or more delinquent or becomes an REO Property,
        in which case the option shall again become exercisable as of the first day
        of
        the related calendar quarter. 

       

      (b)
        The
        Seller, may, but is not required to, repurchase any Mortgage Loan as to which
        the Mortgagor has requested a Significant Modification that is not then
        permitted under the related Mortgage Note if such Mortgagor has a satisfactory
        payment history under such Mortgage Loan and meets the credit standards of
        Thornburg for the loan program selected (a “Significant
        Modification Loan”).
        A
“Significant
        Modification”
shall
        mean any modification to the interest rate of the greater of (i) 0.25% added
        or
        subtracted from the existing rate and (ii) a change equal to the product
        of (a)
        5% and (b) the annual existing interest rate thereon, which is not provided
        for
        in the related Mortgage Note. The purchase price for any repurchase pursuant
        to
        this Section 3.25(b) shall be the applicable Purchase Price. In order to
        exercise its repurchase rights hereunder, the Seller shall deliver to the
        Master
        Servicer and the Indenture Trustee an Officer’s Certificate identifying the
        Mortgage Loan to be repurchased and certifying that (i) such Mortgage Loan
        is a
        Significant Modification Loan, and (ii) that the Significant Modification
        Loan
        will be entered into on the date of such repurchase.

       

      
        
          
          

        

        
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      (c)
        No
        later than the fourth Business Day prior to each Payment Date, Thornburg
        will
        provide to the Master Servicer a list identifying all Mortgage Loans that
        became
        Converted Mortgage Loans or Modified Mortgage Loans during the related Due
        Period. On the third Business Day prior to each Payment Date, provided that
        it
        has received such list from Thornburg, the Master Servicer shall prepare
        and
        provide to TMI a Converted Mortgage Loan Schedule and a Modified Mortgage
        Loan
        Schedule with respect to such Due Period. No later than 1:00 PM Eastern Time
        on
        the second Business Day prior to each Payment Date, TMI shall purchase each
        Converted Mortgage Loan and Modified Mortgage Loan, to the extent specified
        in a
        Converted Mortgage Loan Schedule or Modified Mortgage Loan Schedule delivered
        to
        it by the Master Servicer for such Payment Date, at the applicable Purchase
        Price for each such Converted Mortgage Loan or Modified Mortgage Loan, as
        applicable, and shall remit such Purchase Price to the Master Servicer for
        deposit in the Collection Account.

       

      (d) If
        at any
        time Thornburg, the Seller or TMI, as applicable, remits to the Master Servicer
        a payment for deposit in the Collection Account covering the amount of the
        Purchase Price for a Mortgage Loan of the type set forth in clauses (a),
        (b) or
        (c) above, as applicable, and Thornburg, the Seller, or TMI, as applicable,
        provides to the Indenture Trustee a certification signed by a Servicing Officer
        stating that the amount of such payment has been deposited in the Collection
        Account, then the Indenture Trustee shall execute the assignment of such
        Mortgage Loan at the request of Thornburg, the Seller or TMI without recourse
        to
        Thornburg, the Seller or TMI, as applicable, which shall succeed to all the
        Issuer’s and/or the Indenture Trustee’s right, title and interest in and to such
        Mortgage Loan, and all security and documents relative thereto. Such assignment
        shall be an assignment outright and not for security. Thornburg, the Seller
        or
        TMI, as applicable, will thereupon own such Mortgage Loan, and all such security
        and documents, free of any further obligation to the Issuer, the Indenture
        Trustee or the Securityholders with respect thereto.

       

      SECTION
        3.26. Realization
        upon Troubled Mortgage Loans.

       

      The
        Master Servicer shall have the right to cause a Servicer to sell or work
        out any
        Mortgage Loan as to which the Master Servicer reasonably believes that default
        in payment is likely, provided,
        however,
        that,
        with respect to any such sale of a Mortgage Loan by a Servicer, the related
        sale
        price shall be no less than the Scheduled Principal Balance of such Mortgage
        Loan as of the last day of the Due Period immediately preceding the date
        of such
        sale plus accrued interest thereon through such sale date. Any and all proceeds
        from such a sale shall be deemed to be Liquidation Proceeds hereunder and
        any
        such Mortgage Loan which has been sold shall be deemed a Liquidated Mortgage
        Loan hereunder.

       

      SECTION
        3.27. Closing
        Certificate and Opinion.

       

      On
        or
        before the Closing Date, the Master Servicer shall cause to be delivered
        to the
        Depositor, the Initial Seller, the Seller, the Issuer and the Indenture Trustee,
        and [     ] an Opinion of Counsel, dated the Closing
        Date, in form and substance reasonably satisfactory to the Depositor,
        [     ], the Initial Seller and the Seller as to the
        due authorization, execution and delivery of this Agreement by the Master
        Servicer and the enforceability thereof. 

       

      
        
          
          

        

        
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      SECTION
        3.28. Liabilities
        of the Master Servicer.

       

      The
        Master Servicer shall be liable in accordance herewith only to the extent
        of the
        obligations specifically imposed upon and undertaken by it herein.

       

      SECTION
        3.29. Merger
        or Consolidation of the Master Servicer.

       

      (a) The
        Master Servicer will keep in full force and effect its existence, rights
        and
        franchises as a corporation under the laws of the state of its incorporation,
        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, the
        Securities or any of the Mortgage Loans and to perform its duties under this
        Agreement.

       

      (b) Any
        Person into which the Master Servicer may be merged or consolidated, or any
        corporation resulting from any merger or consolidation to which the Master
        Servicer shall be a party, or any Person succeeding to the business of the
        Master Servicer, shall be the successor of the Master Servicer hereunder,
        without the execution or filing of any paper or further act on the part of
        any
        of the parties hereto, anything herein to the contrary
        notwithstanding.

       

      SECTION
        3.30. Indemnification
        of the Initial Seller, the Seller, the Indenture Trustee, the Owner Trustee,
        the
        Master Servicer and the Securities Administrator.

       

      (a) In
        addition to any indemnity required pursuant to Section 3.22 hereof, the Master
        Servicer agrees to indemnify the Indemnified Persons for, and to hold them
        harmless against, any loss, liability or expense (except as otherwise provided
        herein with respect to expenses) (including reasonable legal fees and
        disbursements of counsel) incurred on their part that may be sustained in
        connection with, arising out of, or relating to this Agreement or the Securities
        (i) related to the Master Servicer’s failure to perform its duties in compliance
        with this Agreement (except as any such loss, liability or expense shall
        be
        otherwise reimbursable pursuant to this Agreement) or (ii) incurred by reason
        of
        the Master Servicer’s willful misfeasance, bad faith or gross negligence in the
        performance of duties hereunder or by reason of reckless disregard of
        obligations and duties hereunder, provided, in each case, that with respect
        to
        any such claim or legal action (or pending or threatened claim or legal action),
        an Indemnified Person shall have given the Master Servicer and the Depositor
        written notice thereof promptly after such Indemnified Person shall have
        with
        respect to such claim or legal action knowledge thereof. The Indemnified
        Person’s failure to give such notice shall not affect the Indemnified Person’s
        right to indemnification hereunder. This indemnity shall survive the resignation
        or removal of the Indenture Trustee, the Owner Trustee, the Master Servicer
        or
        the Securities Administrator and the termination of this Agreement.

       

      (b) The
        Issuer will indemnify any Indemnified Person for any loss, liability or expense
        of any Indemnified Person not otherwise indemnified by the Master Servicer
        as
        referred to in Subsection (a) above.

       

      
        
          
          

        

        
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      (c) In
        addition to any indemnity required pursuant to Section 3.22 hereof, the
        Securities Administrator agrees to indemnify the Indemnified Persons (other
        than
        the Securities Administrator) for, and to hold them harmless against, any
        loss,
        liability or expense (except as otherwise provided herein with respect to
        expenses) (including reasonable legal fees and disbursements of counsel)
        incurred on their part (i) in connection with, arising out of, or relating
        to
        the Securities Administrator’s failure to file any Exchange Act report which the
        Securities Administrator is responsible for filing in accordance with Section
        3.19, (ii) by reason of the Securities Administrator’s negligence or willful
        misconduct in the performance of such obligations pursuant to Section 3.19
        or
        (iii) by reason of the Securities Administrator’s reckless disregard of such
        obligations pursuant to Section 3.19, provided, in each case, that with respect
        to any such claim or legal action (or pending or threatened claim or legal
        action), an Indemnified Person shall have given the Securities Administrator
        written notice thereof promptly after such Indemnified Person shall have
        with
        respect to such claim or legal action knowledge thereof. The Indemnified
        Person’s failure to give such notice shall not affect the Indemnified Person’s
        right to indemnification hereunder. This indemnity shall survive the resignation
        or removal of the Indenture Trustee, the Owner Trustee, the Master Servicer
        or
        the Securities Administrator and the termination of this Agreement.

       

      SECTION
        3.31. Limitations
        on Liability of the Master Servicer and Others; Indemnification of Indenture
        Trustee and Others.

       

      Subject
        to the obligation of the Master Servicer to indemnify the Indemnified Persons
        pursuant to Section 3.30:

       

      (a) Neither
        the Master Servicer nor any of the directors, officers, employees or agents
        of
        the Master Servicer shall be under any liability to the Indemnified Persons,
        the
        Depositor, the Issuer or the Securityholders for taking any action or for
        refraining from taking any action in good faith pursuant to this Agreement,
        or
        for errors in judgment; provided,
        however,
        that
        this provision shall not protect the Master Servicer or any such Person against
        any breach of warranties or representations made herein or any liability
        which
        would otherwise be imposed by reason of such Person’s willful misfeasance, bad
        faith or gross negligence in the performance of duties or by reason of reckless
        disregard of obligations and duties hereunder.

       

      (b) The
        Master Servicer and any director, officer, employee or agent of the Master
        Servicer may rely in good faith on any document of any kind prima facie properly
        executed and submitted by any Person respecting any matters arising
        hereunder.

       

      (c) The
        Master Servicer, the Owner Trustee (in its individual capacity and as Owner
        Trustee), the Indenture Trustee (in its individual corporate capacity and
        as
        Indenture Trustee), the Custodian (including for such purpose, the Indenture
        Trustee acting in its capacity as Custodian) and any director, officer, employee
        or agent of the Master Servicer, the Owner Trustee, the Indenture Trustee
        or the
        Custodian shall be indemnified by the Issuer and held harmless thereby against
        any loss, liability or expense (except as otherwise provided herein with
        respect
        to expenses) (including reasonable legal fees and disbursements of counsel)
        incurred on their part that may be sustained in connection with, arising
        out of,
        or relating to, this Agreement, the Securities or any Servicing Agreement
        or the
        transactions contemplated hereby or thereby (except, with respect to the
        Master
        Servicer, to the extent that the Master Servicer is indemnified by the Servicer
        thereunder), other than (i) with respect to the Master Servicer only, any
        such
        loss, liability or expense related to the Master Servicer’s failure to perform
        its duties in compliance with this Agreement or (ii) with respect to the
        Master
        Servicer or Custodian only, any such loss, liability or expense incurred
        by
        reason of the Master Servicer’s or the Custodian’s willful misfeasance, bad
        faith or gross negligence in the performance of its own duties hereunder
        or by
        reason of reckless disregard of its own obligations and duties hereunder
        or
        under a custodial agreement.

       

      
        
          
          

        

        
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      (d) The
        Master Servicer shall not be under any obligation to appear in, prosecute
        or
        defend any legal action that is not incidental to its duties under this
        Agreement and that in its opinion may involve it in any expense or liability;
        provided,
        however,
        the
        Master Servicer may in its discretion, undertake any such action which it
        may
        deem necessary or desirable with respect to this Agreement and the rights
        and
        duties of the parties hereto and the interests of the Issuer and the
        Securityholders 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 Issuer, and the Master Servicer shall be entitled to be
        reimbursed therefor out of the Collection Account as provided by Section
        4.03.
        Nothing in this Subsection 3.31(d) shall affect the Master Servicer’s obligation
        to supervise, or to take such actions as are necessary to ensure, the servicing
        and administration of the Mortgage Loans pursuant to Subsection
        3.01(a).

       

      (e) In
        taking
        or recommending any course of action pursuant to this Agreement, unless
        specifically required to do so pursuant to this Agreement, the Master Servicer
        shall not be required to investigate or make recommendations concerning
        potential liabilities which the Issuer might incur as a result of such course
        of
        action by reason of the condition of the Mortgaged Properties but shall give
        notice to the Indenture Trustee if it has notice of such potential
        liabilities.

       

      (f) The
        Master Servicer shall not be liable for any acts or omissions of any Servicer,
        except as otherwise expressly provided herein.

       

      SECTION
        3.32. Master
        Servicer Not to Resign. 

       

      Except
        as
        provided in Section 3.34, the Master Servicer shall not resign from the
        obligations and duties hereby imposed on it except upon a determination that
        any
        such duties hereunder are no longer permissible under applicable law and
        such
        impermissibility cannot be cured. Any such determination permitting the
        resignation of the Master Servicer shall be evidenced by an Independent Opinion
        of Counsel (delivered at the expense of the Master Servicer) to such effect
        delivered to the Indenture Trustee. No such resignation by the Master Servicer
        shall become effective until the Indenture Trustee or a successor to the
        Master
        Servicer reasonably satisfactory to the Indenture Trustee shall have assumed
        the
        responsibilities and obligations of the Master Servicer in accordance with
        Section 7.02 hereof. The Indenture Trustee shall notify each Rating Agency
        of
        the resignation of the Master Servicer.

       

      SECTION
        3.33. Successor
        Master Servicer.

       

      In
        connection with the appointment of any successor master servicer or the
        assumption of the duties of the Master Servicer, the Indenture Trustee may
        make
        such arrangements for the compensation of such successor master servicer
        out of
        payments on the Mortgage Loans as the Indenture Trustee and such successor
        master servicer shall agree which in no case shall exceed the Master Servicing
        Fee, plus the portion of investment income on amounts on deposit in the
        Collection Account to which the Master Servicer is entitled hereunder. If
        the
        successor master servicer does not agree that the proposed compensation is
        fair,
        such successor master servicer shall obtain two quotations of market
        compensation from third parties actively engaged in the servicing of
        single-family mortgage loans; provided,
        however,
        that
        Thornburg, as a Servicer of a portion of the Mortgage Loans, shall have the
        right, but not the obligation, to be appointed successor master servicer
        in the
        event that the Indenture Trustee, in its sole discretion, decides not to
        assume
        the duties of the Master Servicer itself; and provided,
        further,
        that
        each Rating Agency shall confirm in writing that any appointment of a successor
        Master Servicer (other than the Indenture Trustee) will not result in a
        downgrade in the then current rating of any Class of Notes. 

       

      
        
          
          

        

        
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      SECTION
        3.34. Sale
        and Assignment of Master Servicing.

       

      The
        Master Servicer may sell and assign its rights and delegate its duties and
        obligations in their entirety as Master Servicer under this Agreement, with
        the
        written consent of Thornburg in its capacity as a Servicer of a portion of
        the
        Mortgage Loans, to be given in its sole discretion, and provided further
        that:
        (i) the purchaser or transferee accepting such assignment and delegation
        (a)
        shall be a Person which shall be qualified to service mortgage loans for
        Fannie
        Mae or Freddie Mac; (b) shall have a net worth of not less than $10,000,000
        (unless otherwise approved by each Rating Agency pursuant to clause (ii)
        below);
        (c) shall be reasonably satisfactory to Thornburg and the Indenture Trustee
        (as
        evidenced in writing signed by Thornburg and the Indenture Trustee); and
        (d)
        shall execute and deliver to the Indenture Trustee an agreement, in form
        and
        substance reasonably satisfactory to the Indenture Trustee, which contains
        an
        assumption by such Person of the due and punctual performance and observance
        of
        each covenant and condition to be performed or observed by it as master servicer
        under this Agreement, any custodial agreement from and after the effective
        date
        of such agreement; (ii) each Rating Agency shall be given prior written notice
        of the identity of the proposed successor to the Master Servicer and each
        Rating
        Agency’s ratings of the Notes in effect immediately prior to such assignment,
        sale and delegation will not be downgraded, qualified or withdrawn as a result
        of such assignment, sale and delegation, as evidenced by a letter to such
        effect
        delivered to the Master Servicer and the Indenture Trustee; and (iii) the
        Master
        Servicer assigning and selling the master servicing shall deliver to the
        Indenture Trustee an Officer’s Certificate and an Independent Opinion of
        Counsel, (delivered at the Master Servicer’s expense) each stating that all
        conditions precedent to such action under this Agreement have been completed
        and
        such action is permitted by and complies with the terms of this Agreement.
        No
        such assignment or delegation shall affect any liability of the Master Servicer
        arising prior to the effective date thereof.

       

      
        
          
          

        

        
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      ARTICLE
        IV

       

      ACCOUNTS

       

      SECTION
        4.01. Servicing
        Accounts.

       

      (a) The
        Master Servicer shall enforce the obligation of each Servicer to establish
        and
        maintain one or more custodial accounts (the “Servicing
        Accounts”)
        in
        accordance with the applicable Servicing Agreement, with records to be kept
        with
        respect thereto on a Mortgage Loan by Mortgage Loan basis, into which accounts
        shall be deposited within 48 hours (or as of such other time specified in
        the
        related Servicing Agreement) of receipt all collections of principal and
        interest on any Mortgage Loan and with respect to any REO Property received
        by a
        Servicer, including Principal Prepayments, Insurance Proceeds, Liquidation
        Proceeds, Subsequent Recoveries and advances made from the Servicer’s own funds
        (less, in the case of each Servicer, the applicable servicing compensation,
        in
        whatever form and amounts as permitted by the applicable Servicing Agreement)
        and all other amounts to be deposited in each such Servicing Account. The
        Servicer is hereby authorized to make withdrawals from and deposits to the
        related Servicing Account for purposes required or permitted by this Agreement
        and the applicable Servicing Agreement. For the purposes of this Agreement,
        Servicing Accounts shall also include such other accounts as the Servicer
        maintains for the escrow of certain payments, such as taxes and insurance,
        with
        respect to certain Mortgaged Properties. Each Servicing Agreement sets forth
        the
        criteria for the segregation, maintenance and investment of each related
        Servicing Account, the contents of which are acceptable to the parties hereto
        as
        of the date hereof and changes to which shall not be made unless such changes
        are made in accordance with the provisions of Section 12.01 hereof.

       

      (b) [Reserved];

       

      (c) To
        the
        extent provided in the related Servicing Agreement and subject to this Article
        IV, on or before each Servicer Remittance Date, each Servicer shall withdraw
        or
        shall cause to be withdrawn from the related Servicing Accounts and shall
        immediately deposit or cause to be deposited in the Collection Account amounts
        representing the following collections and payments (other than with respect
        to
        principal of or interest on the Mortgage Loans due on or before the Cut-off
        Date) with respect to each of the Mortgage Loans it is servicing:

       

      (i) Monthly
        Payments on the Mortgage Loans received or any related portion thereof advanced
        by the Servicers pursuant to the Servicing Agreements which were due on or
        before the related Due Date but net of the amount thereof comprising the
        Servicing Fees;

       

      (ii) Principal
        Prepayments in full and any Liquidation Proceeds received by the Servicers
        with
        respect to such Mortgage Loans in the related Prepayment Period, with interest
        to the date of prepayment or liquidation, net of the amount thereof comprising
        the Servicing Fees and any Subsequent Recoveries received in the related
        Prepayment Period;

       

      (iii) Principal
        Prepayments in part received by the Servicers for such Mortgage Loans in
        the
        related Prepayment Period; 

       

      
        
          
          

        

        
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      (iv) Prepayment
        Penalty Amounts, if any, and only if required under the related Servicing
        Agreement; and

       

      (v) any
        amount to be used as a delinquency advance or to pay any Interest Shortfalls,
        in
        each case, as required to be paid under the related Servicing Agreement.
        

       

      (d) Withdrawals
        may be made from a Servicing Account only to make remittances as provided
        in
        Section 4.01(c), 4.02 and 4.03; to reimburse the Master Servicer or a Servicer
        for Advances which have been recovered by subsequent collection from the
        related
        Mortgagor; to remove amounts deposited in error; to remove fees, charges
        or
        other such amounts deposited on a temporary basis; or to clear and terminate
        the
        account at the termination of this Agreement in accordance with Section 10.01.
        As provided in Sections 4.01(c) and 4.02(b), certain amounts otherwise due
        to
        the Servicers may be retained by them and need not be deposited in the
        Collection Account. 

       

      Notwithstanding
        anything herein to the contrary, the Master Servicer shall not be responsible
        for verifying the accuracy of any Prepayment Penalty.

       

      SECTION
        4.02. Collection
        Account. 

       

      (a) The
        Securities Administrator shall establish and maintain in the name of the
        Securities Intermediary for the benefit of the Indenture Trustee and the
        Securityholders, the Collection Account as a segregated account or accounts,
        each of which shall be an Eligible Account. If an existing Collection Account
        ceases to be an Eligible Account, the Securities Administrator shall establish
        a
        new Collection Account that is an Eligible Account within ten (10) days and
        transfer all funds and investment property on deposit in such existing
        Collection Account into the new Collection Account. So long as
        [     ] shall act as both the Master Servicer and the
        Securities Administrator, the Collection Account may be a sub-account of
        the
        Note Payment Account. To the extent that the Collection Account is not a
        sub-account of the Note Payment Account, on each Deposit Date, the Securities
        Administrator shall withdraw from the Collection Account and remit to the
        Note
        Payment Account the Available Funds for the related Payment Date, to the
        extent
        received by it or required to be funded by the Master Servicer. The Collection
        Account shall constitute an account of the Indenture Trustee segregated on
        the
        books of the Securities Intermediary and held by the Securities Administrator
        in
        trust in its Corporate Trust Office, and the Collection Account and the funds
        deposited therein shall not be subject to, and shall be protected from, all
        claims, liens, and encumbrances of any creditors or depositors of the Issuer,
        the Indenture Trustee, the Securities Administrator, the Securities Intermediary
        or the Master Servicer (whether made directly, or indirectly through a
        liquidator or receiver of the Issuer, the Indenture Trustee, the Securities
        Administrator, the Securities Intermediary or the Master Servicer). The amount
        at any time credited to the Collection Account shall be (i) fully insured
        by the
        FDIC to the maximum coverage provided thereby or (ii) invested by the Securities
        Administrator, in Permitted Investments, in accordance with Section 4.02(c).
        All
        Permitted Investments shall mature or be subject to redemption or withdrawal
        on
        or before, and shall be held until, the immediately succeeding Deposit Date.
        With respect to the Collection Account and the funds deposited therein, the
        Securities Administrator shall take such action as may be necessary to ensure
        that the Issuer and the Securityholders shall be entitled to the priorities
        afforded to such an account (in addition to a claim against the estate of
        the
        Securities Administrator, the Securities Intermediary or the Indenture Trustee)
        as provided by 12 U.S.C. § 92a(e), and applicable regulations pursuant thereto,
        if applicable, or any applicable comparable state statute applicable to state
        chartered banking corporations, if applicable. The Securities Administrator,
        the
        Indenture Trustee or their affiliates are permitted to receive additional
        compensation that could be deemed to be in the their economic self-interest
        for
        (i) serving as investment adviser, administrator, servicing agent, custodian
        or
        sub-custodian with respect to certain of the Permitted Investments, (ii)
        using
        affiliates to effect transactions in certain Permitted Investments and (iii)
        effecting transactions in certain Permitted Investments. The Master Servicer
        and
        the Securities Administrator will deposit in the Collection Account as
        identified by the Master Servicer or the Securities Administrator and as
        received by the Master Servicer or the Securities Administrator, the following
        amounts:

       

      
        
          
          

        

        
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      (i) any
        amounts withdrawn from a Servicing Account pursuant to Section
        4.01(c);

       

      (ii) any
        Advance and any Compensating Interest Payments required to be made by the
        Master
        Servicer to the extent required but not made by a Servicer; 

       

      (iii) any
        Insurance Proceeds, Liquidation Proceeds or Subsequent Recoveries received
        by or
        on behalf of the Master Servicer or which were not deposited in a Servicing
        Account; 

       

      (iv) the
        Purchase Price with respect to any Mortgage Loans purchased by the Initial
        Seller or the Seller pursuant to Section 2.04 of this Agreement, any
        Substitution Adjustments pursuant to Section 2.04 of this Agreement, the
        Purchase Price with respect to any Mortgage Loans purchased by Thornburg,
        the
        Seller or TMI pursuant to Section 3.25, and all proceeds of any Mortgage
        Loans
        or property acquired with respect thereto repurchased by Thornburg (or its
        assignee) or the Master Servicer pursuant to Section 10.01;

       

      (v) any
        amounts required to be deposited with respect to losses on investments of
        deposits in the Collection Account; and

       

      (vi) any
        other
        amounts received by or on behalf of the Master Servicer or the Securities
        Administrator and required to be deposited in the Collection Account pursuant
        to
        this Agreement.

       

      (b) All
        amounts deposited to the Collection Account shall be held by the Securities
        Intermediary in the name of the Indenture Trustee in trust for the benefit
        of
        the Indenture Trustee and the Securityholders in accordance with the terms
        and
        provisions of this Agreement. The requirements for crediting the Collection
        Account shall be exclusive, it being understood and agreed that, without
        limiting the generality of the foregoing, payments in the nature of (i) late
        payment charges or assumption, tax service, statement account or payoff,
        substitution, satisfaction, release and other like fees and charges (but
        including, in the case of Thornburg, all Prepayment Penalty Amounts) and
        (ii)
        the items enumerated in Subsections 4.03(a)(i), (ii), (iii), (iv), (vi),
        (vii),
        (ix) and (x) and with respect to the Securities Administrator item (xi),
        need
        not be credited by the Master Servicer or the related Servicer to the Collection
        Account. In the event that the Master Servicer shall deposit or cause to
        be
        deposited to the Collection Account any amount not required to be credited
        thereto, the Securities Intermediary , upon receipt of a written request
        therefor signed by a Servicing Officer of the Master Servicer, shall promptly
        transfer such amount to the Master Servicer, any provision herein to the
        contrary notwithstanding.

       

      
        
          
          

        

        
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      (c) The
        amount
        at any time credited to the Collection Account shall be invested, in the
        name of
        the Securities Intermediary, or its nominee, for the benefit of the Indenture
        Trustee and the Securityholders, in Permitted Investments as follows. All
        net
        earnings on Permitted Investments shall be for the benefit of Thornburg,
        in its
        capacity as Servicer, except that to the extent the Collection Account is
        treated as a sub-account of the Note Payment Account, the investment income
        with
        respect to investment of the funds in the Collection Account on the Business
        Day
        prior to each Payment Date shall be for the benefit of the Master Servicer.
        All
        Permitted Investments made for the benefit of Thornburg shall be made at
        the
        written direction of Thornburg to the Securities Administrator (or, if no
        such
        written direction is received, in investments of the type specified in clause
        (vi) of the definition of Permitted Investments), shall mature or be subject
        to
        redemption or withdrawal on or before, and shall be held until, the Business
        Day
        prior to the next succeeding Deposit Date. Any and all investment earnings
        from
        such Permitted Investments shall be paid to Thornburg, and the risk of loss
        of
        moneys resulting from such investments shall be borne by and be the risk
        of
        Thornburg. Thornburg shall deposit the amount of any such loss in the Collection
        Account within two Business Days of receipt of notification of such loss
        but not
        later than the next succeeding Payment Date.

       

      SECTION
        4.03. Permitted
        Withdrawals and Transfers from the Collection Account.

       

      (a) The
        Securities Administrator will, from time to time on demand of a Servicer,
        the
        Master Servicer, or for its own account as set forth below, make or cause
        to be
        made such withdrawals or transfers from the Collection Account, in the case
        of a
        demand by a Servicer, as the applicable Servicer has designated for such
        transfer or withdrawal pursuant to the applicable Servicing Agreement, or
        in the
        case of the Master Servicer as set forth below in this Section 4.03, or as
        the
        Securities Administrator has determined to be appropriate in accordance
        herewith, for the following purposes:

       

      (i) to
        reimburse the Master Servicer or any Servicer for any Advance of its own
        funds
        or of such Servicer’s own funds, the right of the Master Servicer or a Servicer
        to reimbursement pursuant to this subclause (i) being limited to amounts
        received on a particular Mortgage Loan (including, for this purpose, the
        Purchase Price therefor, Insurance Proceeds and Liquidation Proceeds) which
        represent late payments or recoveries of the principal of or interest on
        such
        Mortgage Loan respecting which such Advance was made;

       

      (ii) to
        reimburse the Master Servicer or any Servicer from Insurance Proceeds or
        Liquidation Proceeds relating to a particular Mortgage Loan for amounts expended
        by the Master Servicer or such Servicer in good faith in connection with
        the
        restoration of the related Mortgaged Property which was damaged by an Uninsured
        Cause or in connection with the liquidation of such Mortgage Loan;

       

      (iii) to
        reimburse the Master Servicer or any Servicer from Insurance Proceeds relating
        to a particular Mortgage Loan for insured expenses incurred with respect
        to such
        Mortgage Loan and to reimburse the Master Servicer or such Servicer from
        Liquidation Proceeds from a particular Mortgage Loan for Liquidation Expenses
        incurred with respect to such Mortgage Loan; 

       

      
        
          
          

        

        
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      (iv) to
        pay
        the Master Servicer or any Servicer, as appropriate, from Liquidation Proceeds
        or Insurance Proceeds received in connection with the liquidation of any
        Mortgage Loan, the amount which it or such Servicer would have been entitled
        to
        receive under subclause (viii) of this Subsection 4.03(a) as servicing
        compensation on account of each defaulted Monthly Payment on such Mortgage
        Loan
        if paid in a timely manner by the related Mortgagor;

       

      (v) to
        pay
        the Master Servicer or any Servicer from the Purchase Price for any Mortgage
        Loan, the amount which it or such Servicer would have been entitled to receive
        under subclause (viii) of this Subsection (a) as servicing
        compensation;

       

      (vi) to
        reimburse the Master Servicer or any Servicer for servicing related advances
        of
        funds, the right to reimbursement pursuant to this subclause being limited
        to
        amounts received on the related Mortgage Loan (including, for this purpose,
        the
        Purchase Price therefor, Insurance Proceeds and Liquidation Proceeds) which
        represent late recoveries of the payments for which such servicing advances
        were
        made;

       

      (vii) to
        reimburse the Master Servicer or any Servicer for any Advance or advance,
        after
        a Realized Loss has been allocated with respect to the related Mortgage Loan
        if
        the Advance or advance has not been reimbursed pursuant to clauses (i) and
        (vi);

       

      (viii) to
        pay
        the Master Servicer its monthly Master Servicing Fee and any investment income
        and other additional servicing compensation payable pursuant to Section
        3.14;

       

      (ix) to
        reimburse the Master Servicer or the Securities Administrator for any expenses
        recoverable by the Master Servicer or the Securities Administrator pursuant
        to
        Sections 3.03 and 3.31;

       

      (x) to
        pay
        [Thornburg], as a Servicer, any Prepayment Penalty Amounts and any earnings
        payable pursuant to Section 4.02(c), and to reimburse or pay any Servicer
        any
        such amounts as are due thereto under the applicable Servicing Agreement
        and
        have not been retained by or paid to the Servicer, to the extent provided
        in the
        related Servicing Agreement;

       

      (xi) to
        reimburse the Indenture Trustee, the Owner Trustee and the Securities
        Administrator for expenses, costs and liabilities incurred by or reimbursable
        to
        it from funds of the Issuer pursuant to Sections 3.30, 3.31 or 8.05 (including
        those related to the Custodian, to the extent not paid by [Thornburg]), and
        to
        reimburse the Indenture Trustee for any fees, costs and expenses costs incurred
        by or reimbursable to it pursuant to Section 2.03(a), 7.01(b), 8.02, 8.05
        or
        8.07, to the extent not otherwise reimbursed to it;

       

      (xii) to
        make
        distributions of Retained Interest to the Retained Interest Holder on each
        Payment Date;

       

      
        
          
          

        

        
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      (xiii) to
        pay to
        Thornburg (in its capacity as a Servicer) all investment earnings on amounts
        on
        deposit in the Collection Account to which it is entitled under Section
        4.02(c);

       

      (xiv) to
        remove
        amounts deposited in error; and 

       

      (xv) to
        clear
        and terminate the Collection Account pursuant to Section 10.01. 

       

      (b) In
        addition, on or before the Business Day immediately preceding each Deposit
        Date,
        the Master Servicer shall deposit in the Collection Account (or remit to
        the
        Securities Administrator for deposit therein) any Advances or Compensating
        Interest Payments, to the extent required but not made by the related Servicer
        and required to be made by the Master Servicer with respect to the Mortgage
        Loans.

       

      (c) The
        Securities Administrator or the Master Servicer shall keep and maintain separate
        accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of
        accounting for any payments or reimbursements from the Collection Account
        pursuant to subclauses (i) through (vii), inclusive, (ix) and (x) or with
        respect to any such amounts which would have been covered by such subclauses
        had
        the amounts not been retained by the Master Servicer without being deposited
        in
        the Collection Account under Section 4.02(b).

       

      (d) In
        order
        to comply with its duties under the USA PATRIOT Act of 2001, the Securities
        Administrator shall obtain and verify certain information and documentation
        from
        the other parties hereto, including, but not limited to, each such party's
        name,
        address and other identifying information.

       

      SECTION
        4.04. The
        Note Payment Account.

       

      The
        Securities Administrator shall establish and maintain in the name of the
        Securities Intermediary for the benefit of the Indenture Trustee and the
        Noteholders, the Note Payment Account which shall be an Eligible Account.
        On
        each Deposit Date, to the extent that the Collection Account is not a
        sub-account of the Note Payment Account, the Securities Administrator shall
        withdraw, on behalf of the Indenture Trustee, from the Collection Account
        the
        aggregate Available Funds for the related Payment Date for deposit into the
        Note
        Payment Account. The Securities Administrator shall also deposit into the
        Note
        Payment Account all amounts received on behalf of the Issuer under the Yield
        Maintenance Agreements.

       

      In
        the
        event that the Securities Administrator shall remit into the Note Payment
        Account any amount not required to be remitted by it, it may at any time
        withdraw such amount from the Note Payment Account, any provision herein
        to the
        contrary notwithstanding. All funds deposited in the Note Payment Account
        shall
        be held by the Securities Intermediary in trust for the Noteholders, until
        disbursed in accordance with this Agreement or withdrawn in accordance with
        Section 5.01.

       

      If
        the
        Note Payment Account ceases to be an Eligible Account, the Securities
        Administrator shall establish a new Note Payment Account that is an Eligible
        Account within 10 days and transfer all funds and investment property on
        deposit
        in such existing Note Payment Account into such new Note Payment
        Account.

       

      
        
          
          

        

        
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      All
        funds
        on deposit in the Note Payment Account may be invested as directed by the
        Securities Administrator in Permitted Investments in the name of the Securities
        Intermediary for the benefit of the Indenture Trustee and the Noteholders
        which
        shall mature no later than the Payment Date, provided that such Permitted
        Investment is an obligation of the Securities Administrator or otherwise
        managed
        or advised by the Securities Administrator or an affiliate thereof. All income
        and gain net of realized losses on such investments shall be paid to the
        Master
        Servicer as additional master servicing compensation except to the extent
        that
        the Collection Account is treated as a sub-account of the Note Payment Account,
        in which case only investment income earned on the Business Day prior to
        each
        Payment Date shall be paid to the Master Servicer as additional servicing
        compensation and any remaining investment income shall be paid to Thornburg
        in
        its capacity as Servicer as specified in Section 4.02(c). The amount of any
        realized losses in the Note Payment Account in respect of such investments
        shall
        promptly be deposited therein by the Master Servicer. 

       

      The
        Indenture Trustee in its fiduciary capacity shall not be liable for the amount
        of loss incurred in respect of any investment or lack of investment of funds
        held in the Collection Account or the Note Payment Account.

       

      SECTION
        4.05. The
        Certificate Distribution Account

       

      The
        Securities Administrator, for the benefit of the Certificateholders, shall
        establish and maintain in the name of the Issuer an account (the “Certificate
        Distribution Account”)
        entitled “Certificate Distribution Account, [     ], as
        Securities Administrator, in trust for the holders of the Thornburg Mortgage
        Securities Trust [   ] Ownership Certificates. The Certificate
        Distribution Account shall be an Eligible Account. If an existing Certificate
        Distribution Account ceases to be an Eligible Account, the Securities
        Administrator shall establish a new Certificate Distribution Account that
        is an
        Eligible Account within 10 days and transfer all funds and investment property
        on deposit in such existing Certificate Distribution Account into such new
        Certificate Distribution Account.

       

      On
        each
        Payment Date, the Securities Administrator shall withdraw from the Note Payment
        Account all amounts required to be deposited in the Certificate Distribution
        Account pursuant to Section 5.01(a)(iv)(P) and deposit such amounts into
        the
        Certificate Distribution Account. On each Payment Date, the Securities
        Administrator, on behalf of the Issuer, shall distribute all amounts on deposit
        in the Certificate Distribution Account in accordance with the provisions
        of the
        Trust Agreement. On the Payment Date on which the aggregate Class Principal
        Amount of the Notes is reduced to zero, the Securities Administrator shall
        distribute all amounts remaining on deposit in the Certificate Distribution
        Account in accordance with the provisions of the Trust Agreement in order
        to
        clear and terminate the Certificate Distribution Account in connection with
        the
        termination of this Agreement.

       

      SECTION
        4.06. The
        Reserve Fund; [The Group [     ] Final Maturity Reserve
        Account]

       

      (a) The
        Securities Administrator shall establish and maintain in the name of the
        Securities Intermediary for the benefit of the Indenture Trustee and the
        Noteholders the Reserve Fund which shall be an Eligible Account. If an Existing
        Reserve Fund ceases to be an Eligible Account, the Securities Administrator
        shall establish a new Reserve Fund that is an Eligible Account within 10
        days
        and transfer all funds and investment property on deposit in the existing
        Reserve Fund into such new Reserve Fund. Amounts deposited into the Reserve
        Fund
        pursuant to Section 5.01(f)(i) may be invested in Permitted Investments for
        the
        benefit of the Securityholders at the written direction of Thornburg to the
        Securities Administrator (or, if no such written direction is received, in
        investments of the type specified in clause (vi) of the definition of Permitted
        Investments (which investments shall mature on or before, and shall be held
        until, the next succeeding Payment Date). Any risk of loss of moneys resulting
        from such Permitted Investments shall be borne by, and be the risk of Thornburg
        and Thornburg shall deposit the amount of any such loss in the Reserve Fund
        within two Business Days of receipt of notification of such loss from the
        Securities Administrator, but not later than the Business Day prior to the
        next
        succeeding Payment Date. The Securities Administrator will keep records by
        Mortgage Loan Group of the source of deposits made into the Reserve Fund
        pursuant to Section 5.01(f)(i). Amounts on deposit in the Reserve Fund will
        be
        applied in accordance with Section 5.01(f)(i).

       

      
        
          
          

        

        
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      [(b) The
        Securities Administrator shall establish and maintain in the name of the
        Securities Intermediary for the benefit of the Indenture Trustee, the Group
        [     ] Noteholders and the Certificateholders an
        account (the "Group [     ] Final Maturity Reserve
        Account") which shall be an Eligible Account. If an existing Group
        [     ] Final Maturity Reserve Account ceases to be an
        Eligible Account, the Securities Administrator shall establish a new Group
        [     ] Final Maturity Reserve Account that is an
        Eligible Account within ten (10) days and transfer all funds and investment
        property on deposit in such existing Group [     ]
        Final Maturity Reserve Account into such new Group
        [     ] Final Maturity Reserve Account. The Securities
        Administrator shall deposit into the Group [   ] Final Maturity
        Reserve Account the Group [     ] Final Maturity
        Reserve Amount pursuant to Section 5.01(a)(iii)(A) . The Securities
        Administrator shall distribute the funds in the Group
        [     ] Final Maturity Reserve Account pursuant to the
        priorities set forth in Section 5.01(a) (vi). Amounts on deposit in the Group
        [     ] Final Maturity Reserve Account may be invested
        in Permitted Investments by the Securities Administrator for the benefit
        of the
        Group [     ] Noteholders at the written direction of
        Thornburg (or if no such written instructions are received by the Securities
        Administrator from Thornburg, in investments of the type specified in clause
        (vi) of the definition of Permitted Investments), which investments shall
        mature
        on or before, and shall be held until the next succeeding Payment Date. Any
        investment earning on such Permitted Investments shall remain on deposit
        in the
        Group [     ] Final Maturity Reserve Account and be
        distributed in accordance with the priorities set forth in Section 5.01(a)(vi).
        Any risk of loss of monies resulting from such Permitted Investments shall
        be
        borne by, and be the risk of, Thornburg and Thornburg shall deposit the amount
        of any such loss into the Group [     ] Final Maturity
        Reserve Account within two Business Days of receipt of notification of such
        loss
        by the Securities Administrator, but in any event not later than the Business
        Day prior to the next Payment Date. Upon the earlier of the termination of
        the
        Trust and [     ] (the Stated Maturity Date of the
        Group [     ] Notes), any amounts still remaining on
        deposit in the Group [     ] Final Maturity Reserve
        Account shall be distributed in accordance with the priorities set forth
        in
        Section 5.01(a) (vi).]

       

      
        
          
          

        

        
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      SECTION
        4.07. The
        Collateral Account

       

      (a) The
        Securities Administrator shall establish and maintain in the name of the
        Securities Intermediary for the benefit of the Indenture Trustee and the
        Noteholders one or more accounts (the "Collateral Account") which shall be
        an
        Eligible Account, and funds on deposit therein shall be held separate and
        apart
        from, and shall not be commingled with, any other monies, including, without
        limitation, other monies of the Trust held by the Securities Administrator
        pursuant to this Agreement. If an existing Collateral Account ceases to be
        an
        Eligible Account, the Securities Administrator shall establish a new Collateral
        Account that is an Eligible Account within ten (10) days and transfer all
        funds
        and investment property on deposit in such existing Collateral Account into
        such
        new Collateral Account. Funds required to be held pursuant to any of the
        Credit
        Support Annexes shall be deposited into the Collateral Account. Funds posted
        by
        the Yield Maintenance Counterparty (or its credit support provider) in the
        Collateral Account shall be invested in Permitted Investments as directed
        by the
        Yield Maintenance Counterparty (or its credit support provider) and any
        investment earnings on such amounts shall be remitted to the Yield Maintenance
        Counterparty (or its credit support provider) pursuant to the terms of the
        related Credit Support Annex. Neither the Securities Administrator nor the
        Trust
        shall have any liability for any losses incurred on such investments. In
        the
        absence of written instructions from the Yield Maintenance Counterparty (or
        its
        credit support provider) as to the investment of funds in the Collateral
        Account, such funds shall remain uninvested.

       

      (b) On
        any
        Payment Date as to which a shortfall exists with respect to a Yield Maintenance
        Amount owed by the Yield Maintenance Counterparty as a result of its failure
        to
        make payments pursuant to the related Yield Maintenance Agreement, amounts
        necessary to cover such shortfall shall be removed from the Collateral Account
        and remitted to the Note Payment Account to be applied, together with Available
        Funds for the related Payment Date with respect to the related Mortgage Loan
        Group, in accordance with the priorities set forth in Section 5.01(a). Upon
        termination of the Trust, any amounts remaining in the Collateral Account
        shall
        be distributed as required pursuant to the terms of the related Credit Support
        Annex.

       

      SECTION
        4.08. Control
        of the Trust Accounts

       

      (a) The
        Depositor, the Issuer and the Indenture Trustee (is hereby directed to and
        does)
        hereby appoint [     ], as Securities Intermediary with
        respect to each of the Trust Accounts, and the Issuer has, pursuant to the
        Indenture, granted to the Indenture Trustee, for the benefit of the Noteholders,
        a security interest to secure all amounts due Noteholders hereunder in and
        to
        the Trust Accounts and the Security Entitlements to all Financial Assets
        credited to the Trust Accounts, including without limitation all amounts,
        securities, investments, Financial Assets, investment property and other
        property from time to time deposited in or credited to the Trust Accounts
        and
        all proceeds thereof. Amounts held from time to time in the Trust Accounts
        will
        continue to be held by the Securities Intermediary for the benefit of the
        Indenture Trustee, as collateral agent, for the benefit of the Noteholders.
        Upon
        the termination of the Issuer or the discharge of the Indenture, the Securities
        Administrator on behalf of the Indenture Trustee shall inform the Securities
        Intermediary of such termination. By acceptance of their Securities or interests
        therein, the Securityholders shall be deemed to have appointed
        [     ] as Securities Intermediary.
        [     ] hereby accepts such appointment as Securities
        Intermediary;

       

      
        
          
          

        

        
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      (b) With
        respect to the Trust Account Property credited to the Trust Accounts, the
        Securities Intermediary agrees that:

       

      (i) with
        respect to any Trust Account Property that is held in deposit accounts, each
        such deposit account shall be subject to the exclusive custody and control
        of
        the Securities Intermediary, and the Securities Intermediary shall have sole
        signature authority with respect thereto;

       

      (ii) all
        assets in the Trust Accounts are agreed by the Securities Intermediary to
        be
        treated as Financial Assets; and

       

      (iii) any
        such
        Trust Account Property that is, or is treated as, a Financial Asset shall
        be
        physically delivered (accompanied by any required endorsements) to, or credited
        to an account in the name of, the Securities Intermediary or other eligible
        institution maintaining any Trust Accounts in accordance with the Securities
        Intermediary’s customary procedures such that the Securities Intermediary or
        such other institution establishes a Security Entitlement in favor of the
        Indenture Trustee with respect thereto over which the Securities Intermediary
        or
        such other institution has Control,

       

      (c) The
        Securities Intermediary hereby confirms that (A) each Trust Account is an
        account to which Financial Assets are or may be credited, and the Securities
        Intermediary shall, subject to the terms of this Agreement, treat the Indenture
        Trustee, as collateral agent, and the Securities Administrator on behalf
        of the
        Indenture Trustee as entitled to exercise the rights that comprise any Financial
        Asset credited to any Trust Account, (B) all Trust Account Property in respect
        of any Trust Account will be promptly credited by the Securities Intermediary
        to
        the applicable account, and (C) all securities or other property underlying
        any
        Financial Assets credited to any Trust Account shall be registered in the
        name
        of the Securities Intermediary, endorsed to the Securities Intermediary or
        in
        blank or credited to another securities account maintained in the name of
        the
        Securities Intermediary and in no case will any Financial Asset credited
        to any
        Trust Account be registered in the name of the Issuer, payable to the order
        of
        the Issuer or specially endorsed to the Issuer, except to the extent the
        foregoing have been specially endorsed to the Securities Intermediary or
        in
        blank.

       

      (d) The
        Securities Intermediary hereby agrees that each item of property (whether
        investment property, Financial Asset, security, instrument or cash) credited
        to
        any Trust Account shall be treated as a Financial Asset.

       

      (e) If
        at any
        time the Securities Intermediary shall receive an Entitlement Order from
        the
        Indenture Trustee or from the Securities Administrator on its behalf directing
        transfer or redemption of any Financial Asset relating to any Trust Account,
        the
        Securities Intermediary shall comply with such Entitlement Order without
        further
        consent by the Issuer, the Securities Administrator or any other Person.
        If at
        any time the Indenture Trustee or Securities Administrator on its behalf
        notifies the Securities Intermediary in writing that the Issuer has been
        terminated or the Indenture discharged in accordance herewith and with the
        Trust
        Agreement or the Indenture, as applicable, and the security interest granted
        pursuant to the Indenture has been released, then thereafter if the Securities
        Intermediary shall receive any order from the Issuer directing transfer or
        redemption of any Financial Asset relating to any Trust Account, the Securities
        Intermediary shall comply with such Entitlement Order without further consent
        by
        the Indenture Trustee or any other Person.

       

      
        
          
          

        

        
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      (f) In
        the
        event that the Securities Intermediary has or subsequently obtains by agreement,
        operation of law or otherwise a security interest in any Trust Account or
        any
        Financial Asset credited thereto, the Securities Intermediary hereby agrees
        that
        such security interest shall be subordinate to the security interest of the
        Indenture Trustee. The Financial Assets credited to the Trust Accounts will
        not
        be subject to deduction, set-off, banker’s lien, or any other right in favor of
        any Person other than the Indenture Trustee (except that the Securities
        Intermediary may set-off the face amount of any checks which have been credited
        to any Trust Account but are subsequently returned unpaid because of uncollected
        or insufficient funds).

       

      (g) There
        are
        no other agreements entered into between the Securities Intermediary in such
        capacity and the Depositor or the Issuer with respect to any Trust Account.
        In
        the event of any conflict between this Agreement (or any provision of this
        Agreement) and any other agreement now existing or hereafter entered into,
        the
        terms of this Agreement shall prevail.

       

      (h) The
        rights and powers granted under the Indenture and herein to the Indenture
        Trustee and the Securities Administrator on behalf of the Indenture Trustee
        have
        been granted in order to perfect its security interest in the Trust Accounts
        and
        the Security Entitlements to the Financial Assets credited thereto, and are
        powers coupled with an interest and will neither be affected by the bankruptcy
        of the Issuer nor by the lapse of time. The obligations of the Securities
        Intermediary hereunder shall continue in effect until the security interest
        of
        the Indenture Trustee in the Trust Accounts, and in such Security Entitlements,
        has been terminated pursuant to the terms of this Agreement and the Securities
        Administrator on behalf of the Indenture Trustee has notified the Securities
        Intermediary of such termination in writing.

       

      (i) Notwithstanding
        anything else contained herein, the Issuer agrees that the Trust Accounts
        will
        be established only with the Securities Intermediary or another institution
        meeting the requirements of this Section, which by acceptance of its appointment
        as Securities Intermediary agrees substantially as follows: (1) it will comply
        with Entitlement Orders related to the Trust Accounts issued by the Indenture
        Trustee, as collateral agent, or the Securities Administrator acting on its
        behalf, without further consent by the Issuer; (2) until termination of the
        Issuer or discharge of the Indenture, it will not enter into any other agreement
        related to such accounts pursuant to which it agrees to comply with Entitlement
        Orders of any Person other than the Indenture Trustee, as collateral agent
        with
        respect to the Trust Accounts or the Securities Administrator acting on its
        behalf; and (3) all assets delivered or credited to it in connection with
        such
        Trust Accounts and all investments thereof will be promptly credited to the
        applicable account.

       

      (j) Notwithstanding
        the foregoing, the Issuer shall have the power to instruct the Indenture
        Trustee
        and the Securities Administrator, as applicable, to make withdrawals and
        distributions from the Trust Accounts for the purpose of permitting the
        Indenture Trustee and the Securities Administrator, as applicable, to carry
        out
        its duties under the Indenture.

       

      (k) The
        Issuer agrees to take or cause to be taken such further actions, to execute,
        deliver and file or cause to be executed, delivered and filed such further
        documents and instruments (including, without limitation, any financing
        statements under the Uniform Commercial Code or this Agreement) as may be
        necessary to perfect the interests created by this Section in favor of the
        Indenture Trustee and otherwise fully to effectuate the purposes, terms and
        conditions of this Section. The Issuer shall promptly execute and deliver
        to the
        Securities Administrator for filing any financing statements, amendments,
        continuation statements, assignments, certificates and other documents with
        respect to such interests and perform all such other acts as may be necessary
        in
        order to perfect or to maintain the perfection of the Indenture Trustee’s
        security interest in the Trust Account Property. 

       

      
        
          
          

        

        
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      In
        connection with the transactions contemplated by the Operative Agreements
        relating to the Trust Account Property, the Issuer authorizes the Securities
        Administrator on behalf of the Indenture Trustee, to file in any filing office
        any initial financing statements, any amendments to financing statements,
        any
        continuation statements, or any other statements or filings described in
        this
        Section 5.09.

       

      None
        of
        the Securities Intermediary or any director, officer, employee or agent of
        the
        Securities Intermediary shall be under any liability to the Indenture Trustee
        or
        the Noteholders or any other person or for any action taken, or not taken,
        in
        good faith pursuant to this Agreement, or for errors in judgment; provided,
        however,
        that
        this provision shall not protect the Securities Intermediary against any
        liability to the Indenture Trustee, the Issuer or the Noteholders which would
        otherwise be imposed by reason of the Securities Intermediary’s willful
        misconduct, bad faith or negligence in the performance of its obligations
        or
        duties hereunder. The Securities Intermediary and any director, officer,
        employee or agent of the Securities Intermediary may rely in good faith on
        any
        document of any kind which, prima facie, is properly executed and submitted
        by
        any Person respecting any matters arising hereunder. The Securities Intermediary
        shall be under no duty to inquire into or investigate the validity, accuracy
        or
        content of such document. The Issuer shall indemnify the Securities Intermediary
        for and hold it harmless against any loss, liability or expense arising out
        of
        or in connection with this Agreement and carrying out its duties hereunder,
        including the costs and expenses of defending itself against any claim of
        liability, except in those cases where the Securities Intermediary has been
        guilty of bad faith, negligence or willful misconduct. The foregoing
        indemnification shall survive any termination of this Agreement or the
        resignation or removal of the Securities Intermediary.

       

      The
        Securities Intermediary shall be entitled to all of the protections, immunities,
        benefits and indemnities afforded to the Indenture Trustee under Articles
        VII
        and VIII of the Indenture.

       

      ARTICLE
        V

       

      FLOW
        OF FUNDS

       

      SECTION
        5.01. Payments.

       

      (a) On
        each
        Payment Date, the Securities Administrator shall withdraw funds on deposit
        in
        the Note Payment Account to the extent of Available Funds for each Mortgage
        Loan
        Group for such Payment Date and, based on the Payment Date Statement, make
        the
        following disbursements and transfers in the following order of
        priority:

       

      
        
          
          

        

        
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      (i) from
        the
        Available Funds for Mortgage Loan Group [     ] and
        amounts received from the Group [     ] Yield
        Maintenance Agreement the following shall be paid on each Payment Date in
        the
        following order of priority to the Holders of the Class
        [     ] and Class [     ]
        Notes: 

       

      
        	 	
                (A)

              	
                Current
                  Interest on the Class [     ] and Class
                  [     ] Notes for such date, pro
                  rata
                  (based on the amount of Current Interest to which each such Class
                  is
                  entitled); and

              

      

       

      
        	 	
                (B)

              	
                principal
                  in an amount up to the Senior Principal Distribution Amount for
                  Mortgage
                  Loan Group [     ] for that Payment Date, to the
                  Holders of the Class [     ] and Class
                  [     ] Notes, pro
                  rata,
                  in proportion to their respective Class Principal Amounts, until
                  the Class
                  Principal Amount of each such Class is reduced to
                  zero;

              

      

       

      (ii) from
        the
        Available Funds for Mortgage Loan Group [     ] and
        amounts received under the Group [     ] Yield
        Maintenance Agreement the following shall be paid on each Payment Date in
        the
        following order of priority to the Holders of the Class
        [     ] and Class [     ]
        Notes:

       

      
        	 	
                (A)

              	
                beginning
                  with the Payment Date in [     ] and each Payment
                  Date thereafter, to the Group [     ] Final
                  Maturity Reserve Account, the Group [     ] Final
                  Maturity Reserve Amount;

              

      

       

      
        	 	
                (B)

              	
                Current
                  Interest on the Class [     ] and Class
                  [     ] Notes, pro
                  rata
                  (based on the amount of Current Interest to which each such Class
                  is
                  entitled); and

              

      

       

      
        	 	
                (C)

              	
                principal
                  in an amount up to the Senior Principal Distribution Amount for
                  Mortgage
                  Loan Group [     ] for that Payment Date, to the
                  Holders of the Class [     ] and Class
                  [     ] Notes, pro
                  rata,
                  in proportion to their respective Class Principal Amounts, until
                  the Class
                  Principal Amount of each such Class is reduced to zero;
                  

              

      

       

      (iii) from
        amounts remaining after giving effect to the payments specified in subsections
        (i) through (ii) above, the following amounts shall be paid to the
        Securityholders in the following order of priority:

       

      
        	 	
                (A)

              	
                to
                  the Holders of the Class [     ] Notes, Current
                  Interest for that date;

              

      

       

      
        	 	
                (B)

              	
                to
                  the Holders of the Class B-[     ] Notes, Current
                  Interest for that date;

              

      

       

      
        
          
          

        

        
          99

          
            

          

        

        
          
          

        

      

      
        	 	
                (C)

              	
                to
                  the Holders of the Class B-[     ] Notes, an
                  amount allocable to principal equal to its Pro
                  Rata
                  Share for such Payment Date until the Class Principal Amount of
                  such Class
                  is reduced to zero;

              

      

       

      
        	 	
                (I)

              	
                to
                  the Holders of the Offered Notes, on a pro
                  rata
                  basis (based on the Class [     ] Available Funds
                  Cap Shortfalls to which each such Class is entitled), any Class
                  [     ] Available Funds Shortfalls with respect
                  to each such Class;

              

      

       

      
        	 	
                (J)

              	
                [to
                  the Holders of the Offered Notes, on a pro
                  rata
                  basis (based on the Class [     ] Deferred
                  Amounts to which each such Class is entitled), the Class
                  [     ] Deferred Amounts with respect to each
                  such Class;] and

              

      

       

      
        	 	
                (K)

              	
                to
                  the Securities Administrator for deposit into the Certificate Distribution
                  Account for distribution to Certificateholders in accordance with
                  the
                  Trust Agreement, any Available Funds then
                  remaining,

              

      

       

      (iv) [On
        the
        earlier of the Payment Date in [     ] and the
        termination of the Trust, the Securities Administrator shall distribute all
        funds on deposit in the Group [     ] Final Maturity
        Reserve Account (including any investment earnings on deposit therein) in
        the
        following order of priority:

       

      
        	 	
                (A)

              	
                to
                  the Group [     ] Notes, concurrently, in
                  proportion to their respective outstanding Class Principal Amounts,
                  after
                  giving effect to all principal distributions made on such Payment
                  Date
                  pursuant to Section 5.01(a)(iii)(C) hereof, in reduction of their
                  respective Class Principal Amounts, until the Class Principal Amount
                  of
                  each such Class has been reduced to
                  zero;

              

      

       

      
        	 	
                (B)

              	
                to
                  the Group [     ] Notes, to pay any Current
                  Interest for each such Class, to the extent unpaid, in the manner
                  and in
                  accordance with the priorities set forth in Section
                  5.01(a)(iiii)(B);

              

      

       

      
        	 	
                (C)

              	
                to
                  the Group [     ] Notes, to pay any Class
                  [     ] Available Funds Cap Shortfalls for each
                  such Class, to the extent unpaid, in the manner and in accordance
                  with the
                  priorities set forth in Section 5.01(a) (v)
                  (N);

              

      

       

      
        	 	
                (D)

              	
                to
                  the Group [     ] Notes, to pay any Class
                  [     ] Deferred Amounts for each such Class, to
                  the extent unpaid, in the manner and in accordance with the priorities
                  set
                  forth in Section 5.01(a)(v)(O); and

              

      

       

      
        	 	
                (E)

              	
                any
                  remaining amounts in the Group [     ] Final
                  Maturity Reserve Account after making the payments set forth in
                  clauses
                  (A) through (D) above shall be distributed to the Securities Administrator
                  for deposit into the Certificate Distribution Account for distribution
                  to
                  the Certificateholders in accordance with the provisions of the
                  Trust
                  Agreement.]

              

      

       

      
        
          
          

        

        
          100

          
            

          

        

        
          
          

        

      

      [To
        be
        modified in accordance with the structure of the related
        transaction.]

      

      (b) Amounts
        to be paid to the Holders of a Class of Notes shall be payable with respect
        to
        all Notes of that Class, pro
        rata,
        based
        on the Note Principal Amount or Note Notional Amount, as applicable, of each
        Note of that Class.

       

      (c) [Reserved].

       

      (d) [Reserved].

       

      (e) Notwithstanding
        the priority and allocation set forth in Section 5.01(a)[   ]
        above, if with respect to any Class of Subordinate Notes on any Payment Date
        the
        sum of the related Class Subordination Percentages of all Classes of Subordinate
        Notes which have a higher numerical Class designation than such Class (the
        “Applicable
        Credit Support Percentage”)
        is
        less than the Original Applicable Credit Support Percentage for such Class,
        no
        payment of Principal Prepayments or Subsequent Recoveries will be made to
        any
        such Classes (the “Restricted
        Classes”)
        and
        the amount of such Principal Prepayment otherwise distributable to the
        Restricted Classes shall be distributed to the remaining Classes of Subordinate
        Notes, pro
        rata,
        based
        on the Class Principal Amounts of the respective Classes immediately prior
        to
        such Payment Date and shall be distributed in the sequential order provided
        in
        Section 5.01(a)[   ] above.

       

      (f) (i)
        Notwithstanding the priority and allocation set forth in Section 5.01(a)(i)
        through [   ] above, on each Payment Date prior to the Senior
        Credit Support Depletion Date but after the date on which the aggregate Class
        Principal Amount of the Offered Notes related to a Mortgage Loan Group has
        been
        reduced to zero, if either (i) the Aggregate Subordinate Percentage on that
        Payment Date is less than [   ]% of the Aggregate Subordinate
        Percentage as of the Closing Date or (ii) the outstanding principal balance
        of
        all Mortgage Loans delinquent 60 days or more (including Mortgage Loans in
        foreclosure and REO Property) averaged over the prior six months, as a
        percentage of the aggregate Class Principal Amount of the Subordinate Notes,
        is
        greater than or equal to [   ]%, [   ]% of the
        amounts payable to the Subordinate Notes (as provided under clauses (2) and
        (3)
        of the definition of Subordinate Principal Distribution Amount with respect
        to
        the Mortgage Loans in the Mortgage Loan Group related to such retired Class
        of
        Offered Notes) otherwise distributable to each Class of Subordinate Notes
        pursuant to Section 5.01(a)[   ], in reverse order of priority,
        shall instead be deposited into the Reserve Fund. Amounts on deposit in the
        Reserve Fund (including all net investment earnings from amounts invested
        in
        Permitted Investments) will be applied on future Payment Dates to make principal
        payments on the Offered Notes related to an Undercollateralized Group in
        the
        same amounts and manner described in subsection (f)(ii) of this Section 5.01.
        If
        any amounts remain in the Reserve Fund after the Class Principal Amounts
        of all
        of the Offered Notes have been reduced to zero, such amounts shall be allocated
        to the Subordinate Notes in the same priorities that the Subordinate Principal
        Distribution Amount is distributed to such Classes pursuant to Section
        5.01(a)[   ] above; provided,
        however,
        if after
        making such payments, the aggregate Class Principal Amount of the Subordinate
        Notes exceeds the Pool Balance, the Class Principal Amount of the Subordinate
        Notes will be reduced by the amount of such excess in inverse order of priority
        (i.e.,
        beginning with the Class of Subordinate Notes then outstanding with the highest
        numerical Class designation) in accordance with Section 5.03(c).

       

      
        
          
          

        

        
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      (ii) On
        any
        Payment Date on which any of the Group [     ] Notes,
        constitutes an Undercollateralized Group (or Groups), all amounts otherwise
        distributable as principal on the Subordinate Notes, in reverse order of
        priority (or, following the Senior Credit Support Depletion Date, such other
        amounts described in the immediately following sentence), will be paid as
        principal to the Offered Notes of such Undercollateralized Group pursuant
        to
        Section 5.01(a) first,
        up to
        the Principal Deficiency Amount for the Undercollateralized Group (such
        distribution, an “Undercollateralization
        Payment”)
        and
second,
        to pay
        to the Subordinate Notes and the Ownership Certificates in the same order
        and
        priority as provided in Section 5.01(a)[   ]. In the event that
        any of the Group [     ] Notes constitutes an
        Undercollateralized Group (or Groups) on any Payment Date following the Senior
        Credit Support Depletion Date, an Undercollateralization Payment will be
        made
        from the excess of the Available Funds from the Overcollateralized Group
        (or
        Groups) remaining after all required amounts have been paid to the related
        Class
        or Classes of Offered Notes of such Overcollateralized Group. In the event
        there
        are two Undercollateralized Groups, any amounts paid from the Overcollateralized
        Group will be allocated in proportion to the amount of undercollateralization
        for each such Undercollateralized Group. All such payments shall be made
        in
        accordance with the priorities set forth in Section 5.01(a) above.

       

      (g) 
        [Reserved]

       

      (h) [Reserved].

       

      SECTION
        5.02. [Reserved].
        

       

      SECTION
        5.03. Allocation
        of Realized Losses.

       

      (a) On
        or
        prior to each Determination Date, the Securities Administrator shall aggregate
        the loan-level information provided by the Master Servicer with respect to
        the
        total amount of Realized Losses, if any, with respect to the Mortgage Loans
        in
        each Mortgage Loan Group for the related Payment Date and include such
        information in the Payment Date Statement.

       

      (b) Realized
        Losses with respect to each Mortgage Loan Group shall be allocated on any
        Payment Date as follows:

       

      first,
        to the
        Subordinate Notes in reverse order of their respective numerical Class
        designations (beginning with the Class of Subordinate Notes with the highest
        numerical Class designation) until the Class Principal Amount of each such
        Class
        is reduced to zero; and

       

      
        
          
          

        

        
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      second,
        but only
        to the extent that any Realized Losses remaining after the allocations in
        clause
first
        exceeds
        amounts then on deposit in the Reserve Fund for such Payment Date,

       

      (A) with
        respect to Mortgage Loan Group [     ], to the Class
        [     ] Notes and the Class
        [     ] Notes, until the Class Principal Amount of such
        Class is reduced to zero; provided,
        however,
        the
        amounts of any Realized Losses to be so allocated to the Class
        [     ] Notes shall instead be allocated to the Class
        [     ] Notes until the Class Principal Amount of the
        Class [     ] Notes has been reduced to zero;

       

      [To
        be
        modified in accordance with the structure of the related
        transaction.]

      

      (c) The
        Class
        Principal Amount of the Class of Subordinate Notes then outstanding with
        the
        highest numerical Class designation shall be reduced on each Payment Date
        by the
        amount, if any, by which the aggregate of the Class Principal Amounts of
        all
        outstanding Classes of Notes (after giving effect to the payments of principal
        and the allocation of Realized Losses on such Payment Date) exceeds the
        aggregate of the sum of (i) the Scheduled Principal Balances of all the Mortgage
        Loans for the following Payment Date and (ii) amounts then on deposit in
        the
        Reserve Fund.

       

      (d) Any
        Realized Loss allocated to a Class of Notes or any reduction in the Class
        Principal Amount of a Class of Notes pursuant to Section 5.03(b) or (c) shall
        be
        allocated among the Notes of such Class, pro
        rata,
        in
        proportion to their respective Note Principal Amounts.

       

      (e) Any
        allocation of Realized Losses to a Note or any reduction in the Note Principal
        Amount of a Note pursuant to Section 5.03(b) or (c) shall be accomplished
        by
        reducing the Note Principal Amount thereof immediately following the payments
        made on the related Payment Date in accordance with the definition of “Note
        Principal Amount.”

       

      SECTION
        5.04. Statements. 

       

      (a) Two
        Business Days prior to the applicable Auction Payment Date, the Securities
        Administrator shall make available to the Auction Administrator, and
        concurrently with each payment to Noteholders, the Securities Administrator
        shall make available to each Noteholder, the Seller, the Initial Seller,
        the
        Master Servicer, the Indenture Trustee, the Yield Maintenance Counterparty
        and
        the Rating Agencies, a statement based, as applicable, on loan-level information
        provided to it by the Master Servicer and the Servicers (the “Payment
        Date Statement”)
        as to
        the payments to be made or made, as applicable, on such Payment Date.
        Information in the Payment Date Statement relating to or based on amounts
        to be
        received under the Yield Maintenance Agreements shall be based on information
        provided by the Yield Maintenance Counterparty regarding any Yield Maintenance
        Amounts required to be paid by the Yield Maintenance Counterparty for the
        related Payment Date pursuant to the Yield Maintenance Agreements. The Payment
        Date Statement shall include the following:

       

      
        
          
          

        

        
          103

          
            

          

        

        
          
          

        

      

      (i) the
        amount of the payment made on such Payment Date to the Holders of each Class
        of
        Notes allocable to principal;

       

      (ii) the
        amount of the payment made on such Payment Date to the Holders of each Class
        of
        Notes allocable to interest;

       

      (iii) the
        Senior Percentage, Senior Prepayment Percentage, Subordinate Percentage and
        Subordinate Prepayment Percentage with respect to each Mortgage Loan Group
        for
        the following Payment Date;

       

      (iv) the
        aggregate amount of Advances for the related Due Period and the amount of
        unreimbursed Advances;

       

      (v) each
        Mortgage Loan Group Balance and related Available Funds Cap for each Mortgage
        Loan Group at the Close of Business at the end of the related Due
        Period;

       

      (vi) [the
        aggregate Principal Balance of the 1-Year CMT Indexed Mortgage Loans and
        3-Year
        CMT Indexed Mortgage Loans at the Close of Business at the end of the related
        Due Period;

       

      (vii) the
        aggregate Principal Balance of the 6-Month LIBOR Indexed Mortgage Loans,
        1-Month
        LIBOR Indexed Mortgage Loans and 1-Year LIBOR Indexed Mortgage Loans at the
        Close of Business at the end of the related Due Period;

       

      (viii) the
        aggregate Principal Balance of the 1-Year MTA Indexed Mortgage Loans at the
        Close of Business at the end of the related Due Period;]

       

      (ix) the
        amount of the Master Servicing Fees paid to or retained by the Master
        Servicer;

       

      (x) the
        aggregate amount of Servicer Fees paid to or retained by the
        Servicers;

       

      (xi) to
        the
        extent such amounts are paid out of any Trust Account, the amount of fees,
        expenses or indemnification amounts paid by the Issuer with an identification
        of
        the general purpose of such amounts and the party receiving such
        amounts;

       

      (xii) for
        each
        Mortgage Loan Group, the number, weighted average remaining term to maturity,
        weighted average life and weighted average Mortgage Rate of the related Mortgage
        Loans as of the related Due Date;

       

      (xiii) the
        number and aggregate unpaid principal balance of Mortgage Loans, in the
        aggregate and for each Mortgage Loan Group, using the “MBA” method (a) 30
        to 59 days Delinquent, (b) 60 to 89 days Delinquent, (c) 90 or more days
        Delinquent, (d) as to which foreclosure proceedings have been commenced and
        (e)
        in bankruptcy, in each case as of the close of business on the last day of
        the
        preceding calendar month;

       

      (xiv) the
        rolling six-month delinquency rate for that Payment Date;

       

      
        
          
          

        

        
          104

          
            

          

        

        
          
          

        

      

      (xv) the
        total
        number and cumulative principal balance of all REO Properties in each Mortgage
        Loan Group as of the Close of Business of the last day of the preceding Due
        Period;

       

      (xvi) the
        aggregate amount of Principal Prepayments and Prepayment Penalty Amounts
        with
        respect to each Mortgage Loan Group made during the related Prepayment
        Period;

       

      (xvii) the
        aggregate amount of Realized Losses for each Mortgage Loan Group and Subsequent
        Recoveries incurred during the related Due Period and the cumulative amount
        of
        Realized Losses and Subsequent Recoveries as of such Payment Date;

       

      (xviii) the
        cumulative amount of Realized Losses for each Mortgage Loan Group;

       

      (xix) the
        Realized Losses and Subsequent Recoveries, if any, allocated to each Class
        of
        Notes on the related Payment Date;

       

      (xx) the
        Class
        Principal Amount of each Class of Notes after giving effect to any distributions
        made thereon, on such Payment Date;

       

      (xxi) the
        Current Interest in respect of each Class of Notes, for such Payment Date
        and
        the respective portions thereof, if any, remaining unpaid following the payments
        made in respect of such Notes on such Payment Date;

       

      (xxii) [the
        amount of Deferred Interest and Net Deferred Interest with respect to the
        Group
        [     ] Notes;]

       

      (xxiii) the
        Available Funds with respect to each Mortgage Loan Group;

       

      (xxiv) the
        Note
        Interest Rate for each Class of Notes for such Payment Date and the level
        of
        One-Month LIBOR or One-Year LIBOR, as applicable, used to determine the
        applicable Note Interest Rate; 

       

      (xxv) the
        aggregate Principal Balance of Mortgage Loans purchased hereunder by the
        Initial
        Seller, the Seller or TMI during the related Due Period, and indicating the
        Section of this Agreement requiring or allowing the purchase of each such
        Mortgage Loan; 

       

      (xxvi) the
        amount of any Principal Deficiency Amounts or accrued interest amounts paid
        to
        an Undercollateralized Group or amounts paid pursuant to Section
        5.01(f)(i);

       

      (xxvii) (A)
        the
        amounts paid to each Class of Offered Notes from Yield Maintenance Amounts
        received from the Yield Maintenance Counterparty for such period, expressed
        as a
        dollar amount and (B) the Yield Maintenance Amount and applicable Strike Rate
        for each Yield Maintenance Agreement for such Payment Date; 

       

      (xxviii) on
        the
        applicable Auction Payment Date, the Par Price (as defined in the Auction
        Administration Agreement) for each Class of Auction Notes as reported to
        the
        Master Servicer by the Securities Administrator;

       

      
        
          
          

        

        
          105

          
            

          

        

        
          
          

        

      

      (xxix) the
        total
        number of Mortgage Loans in the aggregate and the aggregate Scheduled Principal
        Balance in the aggregate and separately for the Group
        [     ] Mortgage Loans, in each case at the close of
        business at the end of the related Due Period; 

       

      (xxx) the
        amount, if any, remaining on deposit in the Reserve Fund; and

       

      (xxxi) [the
        amount, if any, remaining on deposit in the Group
        [     ] Final Maturity Reserve Account.]

       

      The
        Securities Administrator will make the Payment Date Statement (and, at its
        option, any additional files containing the same information in an alternative
        format) available each month to Securityholders and the other parties to
        this
        Agreement via the Securities Administrator’s internet website. The Securities
        Administrator’s internet website shall initially be located at
“[     ].” Assistance in using the website can be
        obtained by calling the Securities Administrator’s customer service desk at
        [     ]. Parties that are unable to use the above
        distribution option are entitled to have a paper copy mailed to them via
        first
        class mail by calling the customer service desk and indicating such. The
        Securities Administrator shall have the right to change the way such reports
        are
        distributed in order to make such distribution more convenient and/or more
        accessible to the parties, and the Securities Administrator shall provide
        timely
        and adequate notification to all parties regarding any such change.

       

      In
        the
        case of information furnished pursuant to subclauses (i) and (ii) above,
        the
        amounts shall be expressed in a separate section of the report as a dollar
        amount for each Class for each $1,000 original dollar amount as of the Cut-Off
        Date.

       

      (b) Within
        a
        reasonable period of time after the end of each calendar year, the Securities
        Administrator shall, upon written request, furnish to each Person who at
        any
        time during the calendar year was a Noteholder, if requested in writing by
        such
        Person, such information as is reasonably necessary to provide to such Person
        a
        statement containing the information set forth in subclauses (i) and (ii)
        above,
        aggregated for such calendar year or applicable portion thereof during which
        such Person was a Noteholder and such other customary information which a
        Securityholder reasonably requests to prepare its tax returns. Such obligation
        of the Securities Administrator shall be deemed to have been satisfied to
        the
        extent that substantially comparable information shall be prepared and furnished
        by the Securities Administrator to Securityholders pursuant to any requirements
        of the Code as are in force from time to time.

       

      (c) On
        each
        Payment Date, the Securities Administrator shall supply an electronic tape
        to
        Bloomberg Financial Markets, Inc. in a format acceptable to Bloomberg Financial
        Markets, Inc. on a monthly basis, and shall supply an electronic tape to
        Loan
        Performance and Intex Solutions in a format acceptable to Loan Performance
        and
        Intex Solutions on a monthly basis.

       

      SECTION
        5.05. Remittance
        Reports; Advances. 

       

      (a) No
        later
        than the second Business Day following each Determination Date, the Master
        Servicer shall deliver to the Securities Administrator by telecopy or electronic
        mail (or by such other means as the Master Servicer and the Securities
        Administrator may agree from time to time) the Remittance Report with respect
        to
        the related Payment Date. Not later than the Close of Business New York time
        three Business Days prior to the related Payment Date, the Master Servicer
        shall
        deliver or cause to be delivered to the Securities Administrator in addition
        to
        the information provided on the Remittance Report, such other loan-level
        information reasonably available to it with respect to the Mortgage Loans
        as the
        Securities Administrator may reasonably require to perform the calculations
        necessary to make the payments contemplated by Section 5.01. 

       

      
        
          
          

        

        
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      (b) If
        the
        Monthly Payment on a Mortgage Loan that was due on a related Due Date and
        is
        delinquent, other than as a result of application of the Relief Act or similar
        state or local law, and for which the related Servicer was required to make
        an
        advance pursuant to the related Servicing Agreement exceeds the amount deposited
        in the Collection Account which will be used for an advance with respect
        to such
        Mortgage Loan, the Master Servicer will deposit in the Collection Account
        not
        later than the Business Day immediately preceding the related Payment Date
        an
        amount equal to such deficiency, net of the Servicing Fee and the Master
        Servicing Fee, for such Mortgage Loan except to the extent the Master Servicer
        determines any such Advance to be Nonrecoverable from Liquidation Proceeds,
        Insurance Proceeds or future payments on the Mortgage Loan for which such
        Advance was made. Subject to the foregoing, the Master Servicer shall continue
        to make such Advances through the date that the related Servicer is required
        to
        do so under its Servicing Agreement. If applicable, on the Business Day
        immediately preceding the related Payment Date, the Master Servicer shall
        present an Officer’s Certificate to the Securities Administrator and the
        Indenture Trustee (i) stating that the Master Servicer elects not to make
        a
        Advance in a stated amount and (ii) detailing the reason it deems the advance
        to
        be Nonrecoverable.

       

      SECTION
        5.06. Compensating
        Interest Payments.

       

      The
        amount of the Master Servicing Fee payable to the Master Servicer in respect
        of
        any Payment Date shall be reduced (but not below zero) by the amount of any
        Compensating Interest Payment for such Payment Date, but only to the extent
        that
        Interest Shortfalls relating to such Payment Date are required to be paid
        but
        are not actually paid by the related Servicers on the applicable Servicer
        Remittance Date. Such amount shall not be treated as an Advance and shall
        not be
        reimbursable to the Master Servicer.

       

      SECTION
        5.07. [Reserved].

       

      SECTION
        5.08. [Reserved].

       

      SECTION
        5.09. Yield
        Maintenance Amounts.

       

      (a) The
        Securities Administrator is hereby directed by the Depositor to execute and
        deliver the Yield Maintenance Agreements on behalf of the Issuer, for the
        benefit of the Group [     ] Notes (the “Group
        [     ]
        Yield Maintenance Agreement”),
        in
        the forms presented to it by the Depositor and shall have no responsibility
        for
        the contents, adequacy or sufficiency of the Yield Maintenance Agreements,
        including, without limitation, the representations and warranties contained
        therein. Each Holder of an Offered Note is deemed, by acceptance of such
        Note,
        to authorize the Securities Administrator to execute and deliver the Yield
        Maintenance Agreements.

       

      
        
          
          

        

        
          107

          
            

          

        

        
          
          

        

      

      (b) Pursuant
        to each Yield Maintenance Agreement, the Yield Maintenance Counterparty shall
        have provided the Securities Administrator, the Indenture Trustee and the
        Master
        Servicer with notice of the Yield Maintenance Amount, if any, to be paid
        by the
        Yield Maintenance Counterparty to the Securities Administrator for the account
        of the Issuer pursuant to such Yield Maintenance Agreement for each Payment
        Date. Any Yield Maintenance Amount received by the Securities Administrator
        pursuant to any Yield Maintenance Agreement in connection with each such
        Payment
        Date shall be deposited into the Note Payment Account and shall be applied
        on
        each Payment Date, together with Available Funds for such date with respect
        to
        each Mortgage Loan Group, in accordance with the priorities set forth in
        Section
        5.01(a).

       

      SECTION
        5.10. Subsequent
        Recoveries.

       

      (a) The
        Class
        Principal Amount of any Class of Notes to which a Realized Loss has been
        allocated (including any such Class for which the related Class Principal
        Amount
        has been reduced to zero) will be increased up to the amount of Subsequent
        Recoveries for such Payment Date as follows:

       

      (i) first,
        to
        increase the Class Principal Amount of each such Class of Offered Notes of
        the
        related Mortgage Loan Group, pro
        rata,
        up to
        the amount of Realized Losses previously allocated to reduce the Class Principal
        Amount for each such Class, and

       

      (ii) second,
        to
        increase the Class Principal Amount of each such Class of Subordinate Notes,
        in
        order of seniority, up to the amount of Realized Losses previously allocated
        to
        reduce the Class Principal Amount for each such Class.

       

      

      (b) Any
        increase to the Class Principal Amount of a Class of Notes shall increase
        the
        Note Principal Amount of each Note of the related Class pro
        rata
        in
        accordance with the applicable Percentage Interest.

       

      ARTICLE
        VI

       

      [Reserved]

       

      ARTICLE
        VII

       

      DEFAULT

       

      SECTION
        7.01. Event
        of Default. 

       

      (a) If
        any
        one of the following events (each, an “Event
        of Default”)
        shall
        occur and be continuing: 

       

      (i) the
        failure by the Master Servicer to (A) make any Advance on the Business Day
        immediately preceding the related Payment Date or (B) to deposit in the
        Collection Account any deposit required to be made under the terms of this
        Agreement, and in either case such failure continues unremedied for a period
        of
        three Business Days after the date upon which written notice of such failure,
        requiring the same to be remedied, shall have been given to the Master Servicer
        (or, if applicable, such shorter time period as is provided in the penultimate
        sentence of Section 7.01(c)); or

       

      
        
          
          

        

        
          108

          
            

          

        

        
          
          

        

      

      (ii) the
        failure by the Master Servicer duly to observe or perform, in any material
        respect, any other covenants, obligations or agreements of the Master Servicer
        as set forth in this Agreement, which failure continues unremedied for a
        period
        of 60 days, in each case after the date (A) on which written notice of such
        failure, requiring the same to be remedied, shall have been given to the
        Master
        Servicer by the Indenture Trustee or to the Master Servicer and the Indenture
        Trustee by Noteholders evidencing at least 25% of the Voting Rights or (B)
        on
        which a Servicing Officer of the Master Servicer has actual knowledge of
        such
        failure (or, in the case of a breach of its obligation beyond any applicable
        cure period to provide an assessment of compliance, an attestation report
        or a
        Sarbanes-Oxley Certification pursuant to Sections 3.16 and 3.18, respectively);
        or

       

      (iii) the
        entry
        against the Master Servicer of a decree or order by a court or agency or
        supervisory authority having jurisdiction in the premises for the appointment
        of
        a trustee, conservator, receiver or liquidator in any insolvency,
        conservatorship, receivership, readjustment of debt, marshalling of assets
        and
        liabilities or similar proceedings, or for the winding up or liquidation
        of its
        affairs, and the continuance of any such decree or order unstayed and in
        effect
        for a period of 60 days; or 

       

      (iv) the
        Master Servicer shall voluntarily go into liquidation, consent to the
        appointment of a conservator or receiver or liquidator or similar person
        in any
        insolvency, readjustment of debt, marshalling of assets and liabilities or
        similar proceedings of or relating to the Master Servicer or of or relating
        to
        all or substantially all of its property; or a decree or order of a court
        or
        agency or supervisory authority having jurisdiction in the premises for the
        appointment of a conservator, receiver, liquidator or similar person in any
        insolvency, readjustment of debt, marshalling of assets and liabilities or
        similar proceedings, or for the winding-up or liquidation of its affairs,
        shall
        have been entered against the Master Servicer and such decree or order shall
        have remained in force undischarged, unbonded or unstayed for a period of
        60
        days; or the Master Servicer shall admit in writing its inability to pay
        its
        debts generally as they become due, file a petition to take advantage of
        any
        applicable insolvency or reorganization statute, make an assignment for the
        benefit of its creditors or voluntarily suspend payment of its
        obligations;

       

      (b) then,
        and
        in each and every such case, so long as an Event of Default shall not have
        been
        remedied within the applicable grace period, the Indenture Trustee shall,
        at the
        written direction of the Majority Securityholders, or at its option may,
        with
        the consent of Thornburg (not to be unreasonably withheld), by notice then
        given
        in writing to the Master Servicer, terminate all of the rights and obligations
        of the Master Servicer as master servicer under this Agreement. Any such
        notice
        to the Master Servicer shall also be given to each Rating Agency, the Depositor,
        the Owner Trustee and the Sellers. On or after the receipt by the Master
        Servicer (and by the Indenture Trustee if such notice is given by the Holders)
        of such written notice, all authority and power of the Master Servicer under
        this Agreement, whether with respect to the Notes or the Mortgage Loans or
        otherwise, shall pass to and be vested in the Indenture Trustee and the
        Indenture Trustee is hereby authorized and empowered to execute and deliver,
        on
        behalf of the Master Servicer, as attorney-in-fact or otherwise, any and
        all
        documents and other instruments, and to do or accomplish all other acts or
        things necessary or appropriate to effect the purposes of such notice of
        termination, whether to complete the transfer and endorsement of each Mortgage
        Loan and related documents or otherwise. The Master Servicer agrees to cooperate
        with the Indenture Trustee in effecting the termination of the responsibilities
        and rights of the Master Servicer hereunder, including, without limitation,
        the
        delivery to the Indenture Trustee of all documents and records requested
        by it
        to enable it to assume the Master Servicer's functions under this Agreement
        within ten Business Days subsequent to such notice and the transfer within
        one
        Business Day subsequent to such notice to the Indenture Trustee for the
        administration by it of all cash amounts that shall at the time be held by
        the
        Master Servicer and to be deposited by it in the Collection Account, any
        REO
        Account or any Servicing Account or that have been deposited by the Master
        Servicer in such accounts or thereafter received by the Master Servicer with
        respect to the Mortgage Loans or any REO Property received by the Master
        Servicer. All reasonable costs and expenses (including attorneys’ fees) incurred
        in connection with transferring the Master Servicer’s duties and the Mortgage
        Files to the successor Master Servicer and amending this Agreement to reflect
        such succession as Master Servicer pursuant to this Section shall be paid
        by the
        predecessor Master Servicer (or if the predecessor Master Servicer is the
        Indenture Trustee, the initial Master Servicer) upon presentation of reasonable
        documentation of such costs and expenses. The termination of the rights and
        obligations of the Master Servicer shall not affect any liability it may
        have
        incurred prior to such termination. To the extent that such costs and expenses
        of the Indenture Trustee are not fully and timely reimbursed by the predecessor
        Master Servicer, the Indenture Trustee shall be entitled to reimbursement
        of
        such costs and expenses from the Collection Account.

       

      
        
          
          

        

        
          109

          
            

          

        

        
          
          

        

      

      (c) The
        Securities Administrator shall not later than the close of business on the
        Business Day immediately preceding the related Payment Date notify the Indenture
        Trustee in writing of the Master Servicer’s failure to make any Advance required
        to be made under this Agreement on such date and the amount of such Advance.
        By
        no later than 10:00 A.M. (Chicago time) on the relevant Payment Date, the
        Securities Administrator shall notify the Indenture Trustee of the continuance
        of such failure or that the Master Servicer has made the Advance, as the
        case
        may be. Notwithstanding the terms of the Event of Default described in clause
        (i)(A) of Section 7.01(a), the Indenture Trustee, upon receipt of written
        notice
        on the Payment Date from the Securities Administrator of the continuance
        of the
        failure of the Master Servicer to make an Advance, shall, by notice in writing
        to the Master Servicer, which may be delivered by telecopy, immediately suspend
        all of the rights and obligations of the Master Servicer thereafter arising
        under this Agreement, but without prejudice to any rights it may have as
        a
        Securityholder or to reimbursement of outstanding Advances or other amounts
        for
        which the Master Servicer was entitled to reimbursement as of the date of
        suspension, and the Indenture Trustee, subject to the cure provided for in
        this
        paragraph, if available, shall act as provided in Section 7.02 to carry out
        the
        duties of the Master Servicer, including the obligation to make any Advance
        the
        nonpayment of which is described in clause (i)(A) of Section 7.01(a). Any
        such
        action taken by the Indenture Trustee must be prior to the payment on the
        relevant Payment Date, and shall have all of the rights incidental thereto.
        If
        the Master Servicer shall within two Business Days following such suspension
        remit to the Indenture Trustee the amount of any Advance the nonpayment of
        which
        by the Master Servicer is described in clause (i)(A) of Section 7.01(a),
        together with all other amounts necessary to reimburse the Indenture Trustee
        for
        actual, necessary and reasonable costs incurred by the Indenture Trustee
        because
        of action taken pursuant to this subsection (including interest on any Advance
        or other amounts paid by the Indenture Trustee (from and including the
        respective dates thereof) at a per annum rate equal to the prime rate for
        U.S.
        money center commercial banks as published in the Wall
        Street Journal),
        then
        the Indenture Trustee, subject to the last two sentences of this paragraph,
        shall permit the Master Servicer to resume its rights and obligations as
        Master
        Servicer hereunder. If the Master Servicer shall fail to remit such amounts
        to
        the Indenture Trustee within such two Business Days after the Payment Date,
        then
        an Event of Default shall occur and such notice of suspension shall be deemed
        to
        be a notice of termination without any further action on the part of the
        Indenture Trustee. The Master Servicer agrees that if it fails to make a
        required Advance by 10:00 A.M. [(Chicago time)] on the related Payment Date
        on
        more than two occasions in any 12 month period, the Indenture Trustee shall
        be
        under no obligation to permit the Master Servicer to resume its rights and
        obligations as Master Servicer hereunder, and notwithstanding the cure period
        provided in Section 7.01(a)(i)(A), an Event of Default shall be deemed to
        have
        occurred on the relevant Payment Date. 

       

      
        
          
          

        

        
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      SECTION
        7.02. Indenture
        Trustee to Act.

       

      (a) From
        and
        after the date the Master Servicer (and the Indenture Trustee, if notice
        is sent
        by the Holders) receives a notice of termination pursuant to Section 7.01,
        the
        Indenture Trustee shall be the successor in all respects to the Master Servicer
        in its capacity as master servicer under this Agreement and the transactions
        set
        forth or provided for herein and shall be subject to all the responsibilities,
        duties and liabilities relating thereto placed on the Master Servicer by
        the
        terms and provisions hereof arising on and after its succession. As compensation
        therefor, the Indenture Trustee shall be entitled to such compensation as
        the
        Master Servicer would have been entitled to hereunder if no such notice of
        termination had been given. Notwithstanding the above, (i) if the Indenture
        Trustee is unwilling to act as successor Master Servicer or (ii) if the
        Indenture Trustee is legally unable so to act, subject to the rights of
        Thornburg under Section 3.33 hereof, the Indenture Trustee shall appoint
        or
        petition a court of competent jurisdiction to appoint, any established housing
        and home finance institution, bank or other mortgage loan or home equity
        loan
        servicer having a net worth of not less than $15,000,000 as the successor
        to the
        Master Servicer hereunder in the assumption of all or any part of the
        responsibilities, duties or liabilities of the Master Servicer hereunder;
        provided, that the appointment of any such successor Master Servicer shall
        not
        result in the qualification, reduction or withdrawal of the ratings assigned
        to
        the Notes by each Rating Agency as evidenced by a letter to such effect from
        each Rating Agency. Pending appointment of a successor to the Master Servicer
        hereunder, unless the Indenture Trustee is prohibited by law from so acting,
        the
        Indenture Trustee shall act in such capacity as hereinabove provided. In
        connection with such appointment and assumption, the successor shall be entitled
        to receive compensation out of payments on Mortgage Loans in an amount equal
        to
        the compensation which the Master Servicer would otherwise have received
        pursuant to Section 3.19. The appointment of a successor Master Servicer
        shall
        not affect any liability of the predecessor Master Servicer which may have
        arisen under this Agreement prior to its termination as Master Servicer to
        pay
        any deductible under an insurance policy pursuant to Section 3.14 or to
        indemnify the Indenture Trustee pursuant to Section 8.05, nor shall any
        successor Master Servicer be liable for any acts or omissions of the predecessor
        Master Servicer or for any breach by such Master Servicer of any of its
        representations or warranties contained herein or in any related document
        or
        agreement. The Indenture Trustee and such successor shall take such action,
        consistent with this Agreement, as shall be necessary to effectuate any such
        succession.

       

      
        
          
          

        

        
          111

          
            

          

        

        
          
          

        

      

      (b) Any
        successor, including the Indenture Trustee, to the Master Servicer as Master
        Servicer shall during the term of its service as Master Servicer continue
        to
        service and administer the Mortgage Loans for the benefit of Securityholders,
        and maintain in force a policy or policies of insurance covering errors and
        omissions in the performance of its obligations as Master Servicer hereunder
        and
        a Fidelity Bond in respect of its officers, employees and agents to the same
        extent as the Master Servicer is so required pursuant to Section
        3.04.

       

      (c) Notwithstanding
        anything else herein to the contrary, in no event shall the Indenture Trustee
        be
        liable for any servicing fee or for any differential in the amount of the
        servicing fee paid hereunder and the amount necessary to induce any successor
        Master Servicer to act as successor Master Servicer under this Agreement
        and the
        transactions set forth or provided for herein.

       

      SECTION
        7.03. Waiver
        of Event of Default.

       

      The
        Majority Securityholders may, on behalf of all Securityholders, by notice
        in
        writing to the Indenture Trustee, direct the Indenture Trustee to waive any
        events permitting removal of any Master Servicer under this Agreement,
provided,
        however,
        that
        the Majority Securityholders may not waive an event that results in a failure
        to
        make any required payment on a Note without the consent of the Holder of
        such
        Note. Upon any waiver of an Event of Default, such event shall cease to exist
        and any Event of Default arising therefrom shall be deemed to have been remedied
        for every purpose of this Agreement. No such waiver shall extend to any
        subsequent or other event or impair any right consequent thereto except to
        the
        extent expressly so waived. Notice of any such waiver shall be given by the
        Indenture Trustee to each Rating Agency.

       

      SECTION
        7.04. Notification
        to Securityholders.

       

      (a) Upon
        any
        termination or appointment of a successor to any Master Servicer pursuant
        to
        this Article VII or Section 3.34, the Note Registrar or the Indenture Trustee,
        if the Master Servicer is also the Note Registrar and Securities Administrator,
        shall give prompt written notice thereof to the Noteholders at their respective
        addresses appearing in the Note Register and to each Rating Agency.

       

      (b) No
        later
        than 60 days after the occurrence of any event which constitutes or which,
        with
        notice or a lapse of time or both, would constitute an Event of Default of
        which
        a Responsible Officer of the Indenture Trustee becomes aware of the occurrence
        of such an event, the Indenture Trustee shall transmit by mail to all
        Noteholders notice of such occurrence unless such Event of Default shall
        have
        been waived or cured.

       

      
        
          
          

        

        
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      SECTION
        7.05. Action
        Upon Master Servicer Event of Default.

       

      If
        an
        Event of Default has occurred (which has not been cured or waived) of which
        a
        Responsible Officer has actual knowledge, the Indenture 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 man would exercise
        or
        use under the circumstances in the conduct of his own affairs, unless the
        Indenture Trustee is acting as successor Master Servicer, in which case it
        shall
        use the same degree of care and skill as the Master Servicer hereunder with
        respect to the exercise of the rights and powers of the Master Servicer
        hereunder; provided,
        however,
        the
        Indenture Trustee shall not be charged with knowledge of any Event of Default
        or
        any other event or matter that may require it to take action or omit to take
        action hereunder unless a Responsible Officer of the Indenture Trustee at
        the
        Corporate Trust Office obtains actual knowledge of such failure or the Indenture
        Trustee receives written notice of such Event of Default.

       

      SECTION
        7.06. Additional
        Remedies of Indenture Trustee Upon Event of Default.

       

      In
        case
        an Event of Default or a default by the Depositor hereunder shall occur and
        be
        continuing, the Indenture Trustee may proceed to protect and enforce its
        rights
        and the rights of the Noteholders under this Agreement, as the case may be,
        by a
        suit, action or proceeding in equity or at law or otherwise, whether for
        the
        specific performance of any covenant or agreement contained in this Agreement
        or
        in aid of the execution of any power granted in this Agreement or for the
        enforcement of any other legal, equitable or other remedy, as the Indenture
        Trustee, being advised by counsel, and subject to the foregoing, shall deem
        most
        effectual to protect and enforce any of the rights of the Indenture Trustee
        and
        the Noteholders.

       

      ARTICLE
        VIII

       

      THE
        INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

       

      SECTION
        8.01. Duties
        of Indenture Trustee and Securities Administrator.

       

      The
        Indenture Trustee and the Securities Administrator, upon receipt of all
        resolutions, certificates, statements, opinions, reports, documents, orders
        or
        other instruments furnished to the Indenture Trustee and the Securities
        Administrator, which are specifically required to be furnished pursuant to
        any
        provision of this Agreement, shall examine them to determine whether they
        conform to the requirements of this Agreement; provided,
        however,
        that
        neither the Indenture Trustee nor the Securities Administrator will be
        responsible for the accuracy or content of any such resolutions, certificates,
        statements, opinions, reports, documents or other instruments. If any such
        instrument is found not to conform to the requirements of this Agreement
        in a
        material manner the Indenture Trustee and the Securities Administrator shall
        take such action as it deems appropriate to have the instrument
        corrected.

       

      On
        each
        Payment Date, the Securities Administrator shall make monthly payments to
        the
        Noteholders from funds in the Note Payment Account and to the Certificateholders
        from funds in the Certificate Distribution Account, in each case as provided
        in
        Sections 5.01, 5.09 and 10.01 hereof based on the report of the Securities
        Administrator.

       

      
        
          
          

        

        
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      No
        provision of this Agreement shall be construed to relieve the Indenture Trustee
        or the Securities Administrator from liability for its own negligent action,
        its
        own negligent failure to act or its own willful misconduct; provided,
        however,
        that:

       

      (i) prior
        to
        the occurrence of an Event of Default, and after the curing of all such Events
        of Default which may have occurred, the duties and obligations of the Indenture
        Trustee and the Securities Administrator shall be determined solely by the
        express provisions of this Agreement and the Indenture, in the case of the
        Indenture Trustee, and this Agreement, the Indenture, the Trust Agreement
        and
        the Administration Agreement, in the case of the Securities Administrator,
        neither the Indenture Trustee nor the Securities Administrator shall be liable
        except for the performance of such of its duties and obligations as are
        specifically set forth in this those agreements, no implied covenants or
        obligations shall be read into such agreements against the Indenture Trustee
        or
        the Securities Administrator and, in the absence of bad faith on the part
        of the
        Indenture Trustee or the Securities Administrator, respectively, the Indenture
        Trustee or the Securities Administrator may conclusively rely, as to the
        truth
        of the statements and the correctness of the opinions expressed therein,
        upon
        any certificates or opinions furnished to the Indenture Trustee or the
        Securities Administrator, respectively, and conforming to the requirements
        of
        this Agreement or such other agreements, as applicable;

       

      (ii) neither
        the Indenture Trustee nor the Securities Administrator shall be liable for
        an
        error of judgment made in good faith by a Responsible Officer of the Indenture
        Trustee or an officer of the Securities Administrator, respectively, unless
        it
        shall be proved that the Indenture Trustee or the Securities Administrator,
        respectively, was negligent in ascertaining or investigating the facts related
        thereto; and

       

      (iii) neither
        the Indenture Trustee nor the Securities Administrator shall be personally
        liable with respect to any action taken, suffered or omitted to be taken
        by it
        in good faith in accordance with the consent or at the direction of
        Securityholders as provided herein relating to the time, method and place
        of
        conducting any remedy pursuant to this Agreement, or exercising or omitting
        to
        exercise any trust or power conferred upon the Indenture Trustee or the
        Securities Administrator, respectively, under this Agreement; 

       

      The
        Securities Administrator shall pay any and all tax related expenses (not
        including taxes) of the Issuer, including but not limited to any professional
        fees or expenses related to audits or any administrative or judicial proceedings
        with respect to the Issuer that involve the Internal Revenue Service or state
        tax authorities, but only to the extent that (i) such expenses are ordinary
        or
        routine expenses, including expenses of a routine audit but not expenses
        of
        litigation (except as described in (ii)); or (ii) such expenses or liabilities
        (including taxes and penalties) are attributable to the negligence or willful
        misconduct of the Securities Administrator in fulfilling its duties hereunder
        (including the Securities Administrator’s duties as tax return
        preparer).

       

      The
        Securities Administrator shall prepare and file, and the Owner Trustee shall
        sign the tax returns of the Issuer, to the extent that a tax return is required
        to be filed by the Issuer. The expenses of preparing and filing such tax
        returns
        shall be borne by the Securities Administrator. Notwithstanding the foregoing,
        the Securities Administrator shall have no obligation to prepare, file or
        otherwise deal with partnership tax information or returns. In the event
        that
        partnership tax information or returns are required by the Internal Revenue
        Service, the Initial Seller, at its own cost and expense, will prepare and
        file
        all necessary returns. 

       

      
        
          
          

        

        
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      The
        Securities Administrator shall perform on behalf of the Issuer all reporting
        and
        other tax compliance duties that are the responsibility of the Issuer under
        the
        Code or other compliance guidance issued by the Internal Revenue Service
        or any
        state or local taxing authority. Among its other duties, if required by the
        Code
        or other such guidance, the Securities Administrator shall provide to the
        Securityholders such information or reports as are required by the Code.
        

       

      Neither
        the Indenture Trustee nor the Securities Administrator shall be required
        to
        expend or risk its own funds or otherwise incur financial or other liability
        in
        the performance of any of its duties hereunder, or in the exercise of any
        of its
        rights or powers, if there is reasonable ground for believing that the repayment
        of such funds or indemnity satisfactory to it against such risk or liability
        is
        not assured to it, and none of the provisions contained in this Agreement
        shall
        in any event require the Indenture Trustee or the Securities Administrator
        to
        perform, or be responsible for the manner of performance of, any of the
        obligations of the Master Servicer under this Agreement, except during such
        time, if any, as the Indenture Trustee shall be the successor to, and be
        vested
        with the rights, duties, powers and privileges of, the Master Servicer in
        accordance with the terms of this Agreement.

       

      SECTION
        8.02. Certain
        Matters Affecting the Indenture Trustee and the Securities
        Administrator.

       

      Except
        as
        otherwise provided in Section 8.01 hereof:

       

      (i) the
        Indenture Trustee and the Securities Administrator may request and conclusively
        rely upon, and shall be fully protected in acting or refraining from acting
        upon, any resolution, Officers’ Certificate, certificate of auditors or any
        other certificate, statement, instrument, opinion, report, notice, request,
        consent, order, appraisal, bond or other paper or document reasonably believed
        by it to be genuine and to have been signed or presented by the proper party
        or
        parties, and the manner of obtaining consents and of evidencing the
        authorization of the execution thereof by Securityholders shall be subject
        to
        such reasonable regulations as the Indenture Trustee and the Securities
        Administrator may prescribe;

       

      (ii) the
        Indenture Trustee and the Securities Administrator may consult with counsel
        and
        any advice of its counsel or any Opinion of Counsel shall be full and complete
        authorization and protection in respect of any action taken or suffered or
        omitted by it hereunder in good faith and in accordance with such advice
        or
        Opinion of Counsel;

       

      (iii) neither
        the Indenture Trustee nor the Securities Administrator shall be under any
        obligation to exercise any of the 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
        Securityholders, pursuant to the provisions of this Agreement, unless such
        Securityholders shall have offered to the Indenture Trustee or the Securities
        Administrator, respectively, reasonable security or indemnity satisfactory
        to it
        against the costs, expenses and liabilities which may be incurred therein
        or
        thereby; the right of the Indenture Trustee or the Securities Administrator
        to
        perform any discretionary act enumerated in this Agreement shall not be
        construed as a duty, and the Indenture Trustee shall not be answerable for
        other
        than its negligence or willful misconduct in the performance of any such
        act;

       

      
        
          
          

        

        
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      (iv) neither
        the Indenture Trustee nor the Securities Administrator shall be personally
        liable for any action taken, suffered or omitted by it in good faith and
        believed by it to be authorized or within the discretion or rights or powers
        conferred upon it by this Agreement;

       

      (v) prior
        to
        the occurrence of an Event of Default and after the curing or waiver of all
        Events of Default which may have occurred, the Indenture 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 documents, unless
        requested in writing to do so Holders of the Notes representing not less
        than
        25% of the Outstanding Balance of the Notes; provided,
        however,
        that if
        the payment within a reasonable time to the Indenture Trustee of the costs,
        expenses or liabilities likely to be incurred by it in the making of such
        investigation is, in the opinion of the Indenture Trustee, not reasonably
        assured to the Indenture Trustee by the security afforded to it by the terms
        of
        this Agreement, the Indenture Trustee may require reasonable indemnity against
        such cost, expense or liability as a condition to such proceeding. If the
        Master
        Servicer fails to reimburse the Indenture Trustee in respect of the reasonable
        expense of every such examination relating to the Master Servicer, the Indenture
        Trustee shall be reimbursed by the Trust Estate;

       

      (vi) the
        Indenture Trustee shall not be accountable, shall have no liability and makes
        no
        representation as to any acts or omissions hereunder of the Owner Trustee,
        the
        Securities Administrator or the Master Servicer until such time as the Indenture
        Trustee may be required to act as the Master Servicer pursuant to Section
        7.02
        hereof and thereupon only for the acts or omissions of the Indenture Trustee
        as
        a successor Master Servicer; and

       

      (vii) the
        Indenture Trustee and the Securities Administrator may execute any of the
        trusts
        or powers hereunder or perform any duties hereunder either directly or by
        or
        through agents, nominees, attorneys or a custodian, and shall not be responsible
        for any willful misconduct or negligence on the part of any agent, nominee,
        attorney or custodian appointed by the Indenture Trustee or the Securities
        Administrator in good faith.

       

      SECTION
        8.03. Indenture
        Trustee and the Securities Administrator Not Liable for Securities, Mortgage
        Loans or Additional Collateral.

       

      The
        recitals contained herein and in the Securities (other than the authentication
        of the Securities Administrator on the Securities) shall be taken as the
        statements of the Sellers, and the neither the Indenture Trustee nor the
        Securities Administrator assumes responsibility for the 

       

      
        
          
          

        

        
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      correctness
        of the same. Neither the Indenture Trustee nor the Securities Administrator
        makes representations or warranties as to the validity or sufficiency of
        this
        Agreement or of the Securities (other than the signature and authentication
        of
        the Securities Administrator on the Securities) or of any Mortgage Loan or
        related document or of MERS or the MERS System. The Indenture Trustee shall
        not
        be accountable for the use or application by the Master Servicer, or for
        the use
        or application of any funds paid to the Master Servicer in respect of related
        Mortgage Loans or deposited in or withdrawn from the Collection Account by
        the
        Master Servicer or the Securities Administrator. Neither the Indenture Trustee
        nor the Securities Administrator shall at any time have any responsibility
        or
        liability for or with respect to the legality, validity and enforceability
        of
        any Mortgage or any Mortgage Loan, or the perfection and priority of any
        Mortgage or the maintenance of any such perfection and priority, or for or
        with
        respect to the sufficiency of the Issuer or its ability to generate the payments
        to be paid to Securityholders under this Agreement, including, without
        limitation: the existence, condition and ownership of any Mortgaged Property;
        the existence and enforceability of any hazard insurance thereon (other than
        if
        the Indenture Trustee shall assume the duties of the Master Servicer pursuant
        to
        Section 7.02 hereof); the validity of the assignment of any Mortgage Loan
        to the
        Indenture Trustee or of any intervening assignment; the completeness of any
        Mortgage Loan; the performance or enforcement of any Mortgage Loan (other
        than
        if the Indenture Trustee shall assume the duties of the Master Servicer pursuant
        to Section 7.02 hereof); the compliance by the Depositor or the Sellers with
        any
        warranty or representation made under this Agreement or in any related document
        or the accuracy of any such warranty or representation prior to the Indenture
        Trustee’s receipt of notice or other discovery of any non-compliance therewith
        or any breach thereof; any investment of monies by or at the direction of
        the
        Master Servicer or in the case of the Indenture Trustee the Securities
        Administrator or any loss resulting therefrom, it being understood that the
        Indenture Trustee shall remain responsible for any Issuer property that it
        may
        hold in its individual capacity and the Securities Administrator shall remain
        responsible for any Issuer property that it may hold in its individual capacity;
        the acts or omissions of the Master Servicer (other than as to the Securities
        Administrator, if it is also the Master Servicer, and as to the Indenture
        Trustee, if the Indenture Trustee shall assume the duties of the Master Servicer
        pursuant to Section 7.02 hereof, and then only for the acts or omissions
        of the
        Indenture Trustee as the successor Master Servicer), or any acts or omissions
        of
        any Servicer or any Mortgagor; any action of the Master Servicer (other than
        as
        to the Securities Administrator, if it is also the Master Servicer, and as
        to
        the Indenture Trustee, if the Indenture Trustee shall assume the duties of
        the
        Master Servicer pursuant to Section 7.02 hereof), or in the case of the
        Indenture Trustee the Securities Administrator or any Servicer taken in the
        name
        of the Indenture Trustee; the failure of the Master Servicer or any Servicer
        to
        act or perform any duties required of it as agent or on behalf of the Indenture
        Trustee or the Issuer hereunder; or any action by the Indenture Trustee taken
        at
        the instruction of the Master Servicer (other than if the Indenture Trustee
        shall assume the duties of the Master Servicer pursuant to Section 7.02 hereof,
        and then only for the actions of the Indenture Trustee as the successor Master
        Servicer); provided,
        however,
        that
        the foregoing shall not relieve the Indenture Trustee of its obligation to
        perform its duties under this Agreement, including, without limitation, the
        Indenture Trustee’s duty to review the Mortgage Files, if so required pursuant
        to Section 2.01 of this Agreement.

       

      
        
          
          

        

        
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      SECTION
        8.04. Owner
        Trustee, Master Servicer and Securities Administrator May Own
        Notes.

       

      The
        Owner
        Trustee, the Master Servicer and the Securities Administrator in their
        respective individual capacities, or in any capacity other than as Owner
        Trustee, Master Servicer or Securities Administrator hereunder, may become
        the
        owner or pledgee of any Notes with the same rights they would have if they
        were
        not Owner Trustee, Master Servicer or Securities Administrator, as applicable,
        and may otherwise deal with the parties hereto.

       

      SECTION
        8.05. Indenture
        Trustee’s, Custodian’s, Owner Trustee’s and Securities Administrator’s Fees and
        Expenses.

       

      The
        Indenture Trustee shall be compensated by the Master Servicer for its services
        hereunder on behalf of the Issuer, including payment of the Indenture Trustee
        Fee. The Owner Trustee shall be compensated by the Master Servicer for its
        services hereunder, including payment of the Owner Trustee Fee. The Securities
        Administrator shall be compensated by the Master Servicer for its services
        hereunder from a portion of the Master Servicing Fee. The fees and expenses
        of
        the Custodian will be paid by the Initial Seller. In addition, the Indenture
        Trustee (as Indenture Trustee and in its individual corporate capacity),
        the
        Owner Trustee and the Securities Administrator will be entitled to recover
        from
        the Collection Account pursuant to Section 4.05(a) all reasonable out-of-pocket
        expenses, disbursements and advances and the expenses of the Indenture Trustee
        (including for such purpose, any fees and expenses relating to its capacity
        as
        Custodian hereunder to the extent not paid by the Initial Seller), the Owner
        Trustee, and the Securities Administrator, respectively, including without
        limitation, in connection with any Event of Default, any breach of this
        Agreement or any claim or legal action (including any pending or threatened
        claim or legal action) incurred or made by the Owner Trustee, the Indenture
        Trustee or the Securities Administrator, respectively, in the performance
        of its
        duties or the administration of the trusts hereunder or under the Yield
        Maintenance Agreements or the Auction Swap Agreement (including the reasonable
        compensation, expenses and disbursements of its counsel) except any such
        expense, disbursement or advance as may arise from its negligence (or in
        the
        case of the Owner Trustee, gross negligence) or intentional misconduct or
        which
        is specifically designated herein as the responsibility of the Depositor,
        the
        Sellers, the Master Servicer, the Securityholders, the Owner Trustee or the
        Issuer hereunder or thereunder. If funds in the Collection Account are
        insufficient therefor, the Indenture Trustee, the Owner Trustee, the Custodian
        and the Securities Administrator shall recover such expenses from future
        collections on the Mortgage Loans or as otherwise agreed by such parties
        and the
        Securityholders. Such compensation and reimbursement obligation shall not
        be
        limited by any provision of law in regard to the compensation of a trustee
        of an
        express trust.

       

      SECTION
        8.06. Eligibility
        Requirements for Indenture Trustee and Securities
        Administrator.

       

      The
        eligibility requirements for the Indenture Trustee are set forth in Section
        6.11
        of the Indenture. The Securities Administrator hereunder shall at all times
        be
        an entity duly organized and validly existing under the laws of the United
        States of America or any state thereof, authorized under such laws to exercise
        corporate trust powers, having a combined capital and surplus of at least
        $50,000,000 and a minimum long-term debt rating in the third highest rating
        category by each Rating Agency and in each Rating Agency’s two highest
        short-term rating categories, and subject to supervision or examination by
        federal or state authority. If such entity 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 entity shall be deemed to be its
        combined capital and surplus as set forth in its most recent report of condition
        so published. In case at any time the Securities Administrator shall cease
        to be
        eligible in accordance with the provisions of this Section 8.06, the Securities
        Administrator shall resign immediately in the manner and with the effect
        specified in Section 8.07 hereof.

       

      
        
          
          

        

        
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      SECTION
        8.07. Resignation
        or Removal of the Indenture Trustee or the Securities
        Administrator.

       

      The
        circumstances causing resignation and removal of the Indenture Trustee are
        set
        forth in Sections 6.08 and 6.09 of the Indenture. The Securities Administrator
        may at any time resign and be discharged from the trusts hereby created by
        giving written notice thereof to the Depositor, the Sellers, the Master Servicer
        and each Rating Agency. Upon receiving such notice of resignation of the
        Securities Administrator, the Indenture Trustee shall promptly appoint a
        successor Securities Administrator that meets the requirements in Section
        8.06
        by written instrument, in duplicate, one copy of which instrument shall be
        delivered to each of the resigning Securities Administrator and one copy
        to the
        successor Securities Administrator. If no successor Securities Administrator
        shall have been so appointed and having accepted appointment within 30 days
        after the giving of such notice of resignation, the resigning Securities
        Administrator may petition any court of competent jurisdiction for the
        appointment of a successor Securities Administrator.

       

      If
        at any
        time the Securities Administrator shall cease to be eligible in accordance
        with
        the provisions of Section 8.06 hereof or if at any time the Securities
        Administrator shall be legally unable to act, or shall be adjudged a bankrupt
        or
        insolvent, or a receiver of the Securities Administrator or of its property
        shall be appointed, or any public officer shall take charge or control of
        the
        Securities Administrator or of its property or affairs for the purpose of
        rehabilitation, conservation or liquidation, or if the Securities Administrator
        fails to provide an assessment of compliance or an attestation report required
        under Section 3.16 within 15 calendar days of March 1 of each calendar year
        in
        which Exchange Act reports are required then the Indenture Trustee may remove
        the Securities Administrator. If the Indenture Trustee removes the Securities
        Administrator, under the authority of the immediately preceding sentence,
        the
        Initial Seller or the Indenture Trustee shall promptly appoint a successor
        Securities Administrator that meets the requirements of Section 8.06 by written
        instrument, in triplicate, one copy of which instrument shall be delivered
        to
        the Securities Administrator so removed, one copy to the successor Securities
        Administrator and one copy to the Master Servicer.

       

      The
        Majority Securityholders may at any time remove the Securities Administrator
        by
        written instrument or instruments delivered to the Indenture Trustee; the
        Initial Seller shall thereupon use its best efforts to appoint a successor
        Securities Administrator in accordance with this Section. 

       

      
        
          
          

        

        
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      Any
        resignation or removal of the Securities Administrator and appointment of
        a
        successor Securities Administrator, pursuant to any of the provisions of
        this
        Section 8.07 shall not become effective until acceptance of appointment by
        the
        successor Securities Administrator as provided in Section 8.08 hereof. If
        the
        Securities Administrator is removed pursuant to this Section 8.07, it shall
        be
        reimbursed any outstanding and unpaid fees and expenses, and if removed under
        the authority of the immediately preceding paragraph, the Securities
        Administrator shall also be reimbursed any outstanding and unpaid costs and
        expenses.

       

      Notwithstanding
        anything to the contrary contained herein, in the event that the Master Servicer
        resigns or is removed as Master Servicer hereunder, the Securities Administrator
        shall have the right to resign immediately as Securities Administrator by
        giving
        written notice to the Sellers and the Indenture Trustee, with a copy to each
        Rating Agency; provided that such resignation shall not become effective
        until
        acceptance of appointment by a successor Securities Administrator.
        Notwithstanding anything to the contrary herein, in the event that the
        Securities Administrator resigns or is removed as Securities Administrator
        hereunder, the Master Servicer shall have the right to resign immediately
        as
        Master Servicer by giving written notice to the Sellers and the Indenture
        Trustee, with a copy to each Rating Agency; provided that such resignation
        shall
        not become effective until acceptance of appointment by a successor Master
        Servicer.

       

      SECTION
        8.08. Successor
        Securities Administrator.

       

      Any
        successor Securities Administrator appointed as provided in Section 8.07
        hereof
        shall execute, acknowledge and deliver to the Depositor, the Sellers and
        the
        Master Servicer and to its predecessor Securities Administrator an instrument
        accepting such appointment hereunder, and thereupon the resignation or removal
        of the Securities Administrator shall become effective, and such successor
        Securities Administrator, without any further act, deed or conveyance, shall
        become fully vested with all the rights, powers, duties and obligations of
        its
        predecessor hereunder (including, without limitation, its rights, powers,
        duties
        and obligations as Auction Administrator under the Auction Administration
        Agreement), with like effect as if originally named Securities Administrator.
        The Depositor, the Sellers, the Master Servicer and the predecessor Securities
        Administrator shall execute and deliver such instruments and do such other
        things as may reasonably be required for fully and certainly vesting and
        confirming in the successor Securities Administrator, as applicable, all
        such
        rights, powers, duties and obligations.

       

      No
        successor Securities Administrator shall accept appointment as provided in
        this
        Section 8.08 unless at the time of such acceptance such successor Securities
        Administrator shall be eligible under the provisions of Section 8.06 hereof
        and
        the appointment of such successor Securities Administrator shall not result
        in a
        downgrading of the Offered Notes by either Rating Agency, as evidenced by
        a
        letter from each Rating Agency.

       

      Upon
        acceptance of appointment by a successor Securities Administrator as provided
        in
        this Section 8.08, the successor Securities Administrator shall mail notice
        of
        the appointment of a successor Securities Administrator hereunder to all
        Securityholders at their addresses as shown in the Certificate Register or
        the
        Note Register, as applicable, and to each Rating Agency.

       

      
        
          
          

        

        
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      SECTION
        8.09. Merger
        or Consolidation of Indenture Trustee or Securities
        Administrator.

       

      The
        consequences of merger or consolidation of the Indenture Trustee are set
        forth
        in Section 6.09 of the Indenture. Any entity into which the Securities
        Administrator may be merged or converted or with which it may be consolidated,
        or any entity resulting from any merger, conversion or consolidation to which
        the Securities Administrator shall be a party, or any entity succeeding to
        the
        corporate trust business of the Securities Administrator, shall be the successor
        of the Securities Administrator, as applicable, hereunder, provided such
        entity
        shall be eligible under the provisions of Section 8.06 and 8.08 hereof, without
        the execution or filing of any paper or any further act on the part of any
        of
        the parties hereto, anything herein to the contrary
        notwithstanding.

       

      SECTION
        8.10. [Reserved].

       

      SECTION
        8.11. [Reserved].

       

      SECTION
        8.12. Trustee
        May Enforce Claims Without Possession of Notes.

       

      (a) All
        rights of action and claims under this Agreement or the Notes may be prosecuted
        and enforced by the Indenture Trustee without the possession of any of the
        Notes
        or the production thereof in any proceeding relating thereto, and such
        proceeding instituted by the Indenture Trustee shall be brought in its own
        name
        or in its capacity as Indenture Trustee for the benefit of all Holders of
        such
        Notes, subject to the provisions of this Agreement and the Indenture. Any
        recovery of judgment shall, after provision for the payment of the reasonable
        compensation, expenses, disbursement and advances of the Indenture Trustee
        (for
        the avoidance of doubt, in its individual capacity and as Indenture Trustee
        on
        behalf of the Issuer), its agents and counsel, be for the ratable benefit
        or the
        Noteholders in respect of which such judgment has been recovered.

       

      (b) The
        Indenture Trustee shall afford the Sellers, the Depositor and each
        Securityholder upon reasonable notice during normal business hours at its
        Corporate Trust Office or other office designated by the Indenture Trustee,
        access to all records maintained by the Indenture Trustee in respect of its
        duties hereunder and access to officers of the Indenture Trustee responsible
        for
        performing such duties. The Indenture Trustee shall cooperate fully with
        the
        Sellers, the Depositor and such Securityholder and shall, subject to the
        first
        sentence of this Section 8.12(b), make available to the Sellers, the Depositor
        and such Securityholder for review and copying such books, documents or records
        as may be requested with respect to the Indenture Trustee’s duties hereunder.
        The Sellers, the Depositor and the Securityholders shall not have any
        responsibility or liability for any action or failure to act by the Indenture
        Trustee and are not obligated to supervise the performance of the Indenture
        Trustee under this Agreement or otherwise.

       

      (c) The
        Securities Administrator shall afford the Sellers, the Depositor, the Indenture
        Trustee and each Securityholder upon reasonable notice during normal business
        hours at its offices at [     ] or other office
        designated by the Securities Administrator, access to all records maintained
        by
        the Securities Administrator in respect of its duties hereunder and access
        to
        officers of the Securities Administrator responsible for performing such
        duties.
        Upon request, the Securities Administrator shall furnish the Depositor and
        any
        requesting Securityholder with its most recent audited financial statements.
        The
        Securities Administrator shall cooperate fully with the Sellers, the Depositor,
        the Indenture Trustee and such Securityholder and shall, subject to the first
        sentence of this Section 8.12(c), make available to the Sellers, the Depositor
        and such Securityholder for review and copying such books, documents or records
        as may be requested with respect to the Securities Administrator’s duties
        hereunder. The Sellers, the Depositor, the Indenture Trustee and the
        Securityholders shall not have any responsibility or liability for any action
        or
        failure to act by the Securities Administrator and are not obligated to
        supervise the performance of the Securities Administrator under this Agreement
        or otherwise.

       

      
        
          
          

        

        
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      SECTION
        8.13. Suits
        for Enforcement.

       

      In
        case
        an Event of Default or a default by the Depositor hereunder shall occur and
        be
        continuing, the Indenture Trustee may proceed to protect and enforce its
        rights
        and the rights of the Securityholders under this Agreement, as the case may
        be,
        by a suit, action or proceeding in equity or at law or otherwise, whether
        for
        the specific performance of any covenant or agreement contained in this
        Agreement or in aid of the execution of any power granted in this Agreement
        or
        for the enforcement of any other legal, equitable or other remedy, as the
        Indenture Trustee, being advised by counsel, and subject to the foregoing,
        shall
        deem most effectual to protect and enforce any of the rights of the Indenture
        Trustee and the Securityholders.

       

      SECTION
        8.14. Waiver
        of Bond Requirements.

       

      The
        Indenture Trustee shall be relieved of, and each Securityholder hereby waives,
        any requirement of any jurisdiction in which the Trust Estate, or any part
        thereof, may be located that the Indenture Trustee post a bond or other surety
        with any court, agency or body whatsoever.

       

      SECTION
        8.15. Waiver
        of Inventory, Accounting and Appraisal Requirement.

       

      The
        Owner
        Trustee shall be relieved of, and each Securityholder hereby waives, any
        requirement of any jurisdiction in which the Issuer, or any part thereof,
        may be
        located that the Owner Trustee file any inventory, accounting or appraisal
        of
        the Issuer with any court, agency or body at any time or in any manner
        whatsoever.

       

      SECTION
        8.16. Appointment
        of Custodian.

       

      [     ]
        is hereby appointed Custodian of the Mortgage Files. The Indenture Trustee
        shall
        have the right upon prior written notice to the Issuer and the Master Servicer,
        to appoint one or more sub-custodians to hold all or a portion of the related
        Mortgage Files as agent for the Indenture Trustee, by entering into a custodial
        agreement. If the Indenture Trustee is removed or becomes ineligible to serve
        as
        Indenture Trustee pursuant to the provisions of the Indenture, it shall also
        resign its appointment as Custodian. Any sub-custodian may at any time be
        terminated and a substitute sub-custodian appointed therefor by the Indenture
        Trustee. The Indenture Trustee agrees to enforce the terms and provisions
        of any
        custodial agreement against the sub-custodian for the benefit of the Noteholders
        having an interest in any Mortgage File held by such sub-custodian. Each
        Custodian or sub-custodian shall be a depository institution or trust company
        subject to supervision by federal or state authority, shall have combined
        capital and surplus of at least $15,000,000 and shall be qualified to do
        business in the jurisdiction in which it holds any Mortgage File. The Initial
        Seller shall pay from its own funds, without any right to reimbursement,
        the
        fees, costs and expenses of each custodian (including the costs of Custodian’s
        counsel). The Custodian shall have the same rights, protections and immunities
        which are afforded to the Indenture Trustee under Article VI of the
        Indenture.

       

      
        
          
          

        

        
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      SECTION
        8.17. Auction
        Administration Agreement; Auction Swap Agreement.

       

      (a) Concurrently
        with the execution and delivery hereof, at the direction of the Depositor,
        the
        Securities Administrator, acting solely as an agent (the “Auction
        Administrator”)
        for
        the Holders of the Auction Notes and not on behalf of the Issuer, shall execute
        and deliver the Auction Administration Agreement and the Auction Swap Agreement
        in the forms presented by the Auction Swap Counterparty. The Securities
        Administrator shall have no duty to review or otherwise determine the adequacy
        of the Auction Administration Agreement or the Auction Swap
        Agreement.

       

      (b) Each
        Holder of an Auction Note is deemed, by acceptance of such Note, (i) to
        authorize the Securities Administrator to execute and deliver the Auction
        Administration Agreement and the Auction Swap Agreement as their agent and
        (ii)
        to acknowledge and accept and agree to be bound by the provisions of the
        Auction
        Administration Agreement and the Auction Swap Agreement. The Securities
        Administrator, as Auction Administrator, agrees not to consent to any amendments
        to the Auction Administration Agreement or Auction Swap Agreement without
        the
        consent of 100% of the Auction Notes, except in the case where such amendment
        is
        to cure any ambiguity in either agreement, to correct or supplement any
        provision therein which may be inconsistent with other provisions in such
        agreements or the other Operative Agreements, or to cause the provisions
        in such
        agreements to conform or be consistent with the statements made with respect
        to
        such agreements in the Offering Documents. 

       

      SECTION
        8.18. Yield
        Maintenance Counterparty Tax Form.

       

      The
        Depositor hereby directs the Security Administrator to enter into the Yield
        Maintenance Agreements. The Securities Administrator agrees that so long
        as the
        Yield Maintenance Agreements remains in effect, it shall request that the
        Yield
        Maintenance Counterparty provide to it an Internal Revenue Service Form W-8ECI
        (or any successor form) at the end of each three year period following the
        Closing Date as provided for in the Yield Maintenance Agreements.

       

      
        
          
          

        

        
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      ARTICLE
        IX

       

      [Reserved]

       

      ARTICLE
        X

       

      TERMINATION

       

      SECTION
        10.01. Termination;
        Clean-Up Call.

       

      (a) The
        respective obligations and responsibilities of the Seller, the Depositor,
        the
        Master Servicer, the Securities Administrator, the Owner Trustee and the
        Indenture Trustee created hereby (other than the obligation of the Securities
        Administrator to make certain payments to Noteholders after the final Payment
        Date and the obligation of the Master Servicer to send certain notices as
        hereinafter set forth) shall terminate upon notice to the Indenture Trustee
        and
        the Securities Administrator upon the earliest of (i) the Payment Date on
        which the Class Principal Amount (or Class Notional Amount in the case of
        any
        Interest Only Notes) of each Class of Notes has been reduced to zero,
        (ii) the final payment or other liquidation of the last Mortgage Loan,
        (iii) the optional purchase of the Mortgage Loans as described in the
        following paragraphs and (iv) the Stated Maturity Date.

       

      Thornburg
        (solely in its capacity as a Servicer of the Mortgage Loans) may, at its option
        (which option is assignable), terminate this Agreement on any Payment Date
        on
        which the aggregate amount of the Scheduled Principal Balances of the Mortgage
        Loans as of the end of the immediately preceding Due Period is equal to or
        less
        than 10% of the Cut-Off Date Aggregate Principal Balance (such Payment Date,
        the
“10%
        Clean-Up Call Date”),
        by
        purchasing, on such Payment Date, all of the outstanding Mortgage Loans and
        REO
        Properties at a price equal to the sum of (i) the outstanding Scheduled
        Principal Balances of the Mortgage Loans (other than in respect of REO
        Properties), (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 approved by the Depositor and at the expense of the Person exercising
        the Clean-Up Call Option less the good faith estimate of the Master Servicer
        or
        the related Servicer, as applicable, of Liquidation Expenses to be incurred
        in
        connection with its disposal and (y) the Principal Balance of each Mortgage
        Loan
        related to any REO Property and (iii) in all cases, accrued and unpaid interest
        thereon at the applicable Loan Rate through the end of the Due Period preceding
        the final Payment Date, plus unreimbursed Servicing Advances and Advances
        and
        any unpaid Master Servicing Fees and Servicing Fees allocable to such Mortgage
        Loans and REO Properties, plus all amounts, if any, then due and owing to
        the
        Indenture Trustee, the Master Servicer and the Securities Administrator (the
        “Clean-Up
        Call Purchase Price”).

       

      In
        addition, [     ] (solely in its capacity as the Master
        Servicer) may, at its option, terminate this Agreement on any Payment Date
        on
        which the aggregate amount of the Scheduled Principal Balances of the Mortgage
        Loans as of the end of the immediately preceding Due Period is equal to or
        less
        than 5% of the Cut-Off Date Aggregate Principal Balance (such Payment Date,
        the
“Master Servicer
        Clean-Up Call Date”;
        and
        each of the Master Servicer Clean-Up Call Date and the 10% Clean-Up Call
        Date
        individually, a “Clean-Up
        Call Date”),
        by
        purchasing, on such Master Servicer Clean-Up Call Date, all of the outstanding
        Mortgage Loans and REO Properties at a price equal to the Clean-Up Call Purchase
        Price; provided,
        that
        the Master Servicer Clean-Up Call Right shall be exercisable only if the
        10%
        Clean-Up Call Right is not exercised on or before such date.

       

      
        
          
          

        

        
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      (b) Notice
        of
        any termination pursuant to the second or third paragraphs of
        Section 10.01(a), specifying the Clean-Up Call Date (which shall be a date
        that would otherwise be a Payment Date) upon which the Noteholders may surrender
        their Notes to the Securities Administrator for payment of the final
        distribution and cancellation, shall be given by the Securities Administrator
        to
        the Noteholders pursuant to Section 10.02 of the Indenture and to the Owner
        Trustee promptly upon the Securities Administrator receiving notice of such
        Clean-Up Call Date from Thornburg or [     ], as
        applicable.

       

      (c) Upon
        presentation and surrender of the Notes, the Securities Administrator shall
        cause to be distributed to the Holders of the Notes on the Payment Date for
        such
        final distribution, in proportion to the Percentage Interests of their
        respective Class [     ] and to the extent that funds
        are available for such purpose, an amount equal to the amount required to
        be
        distributed to such Holders in accordance with the provisions of
        Section 5.01 hereof for such Payment Date.

       

      (d) In
        the
        event that all Noteholders shall not surrender their Notes for final payment
        and
        cancellation on or before such final Payment Date, the Securities Administrator
        shall promptly following such date cause all funds in the Collection Account
        to
        which Noteholders are entitled and not distributed in final distribution
        to
        Noteholders to be withdrawn therefrom and credited to the remaining Noteholders
        by depositing such funds in a separate account for the benefit of such
        Noteholders, and the Securities Administrator shall give a second written
        notice
        to the remaining Noteholders to surrender their Notes for cancellation and
        receive the final distribution with respect thereto. If within nine months
        after
        the second notice all the Notes shall not have been surrendered for
        cancellation, the Certificateholders shall be entitled to all unclaimed funds
        and other assets which remain subject hereto, and the Securities Administrator
        upon transfer of such funds to the Certificate Distribution Account for payment
        to the Certificateholders in accordance with the provisions of the Trust
        Agreement shall be discharged of any responsibility for such funds.

       

      SECTION
        10.02. [Reserved].

       

      SECTION
        10.03. Optional
        Purchase of Notes.

       

      (a) All
        but
        not less than all of the Notes are subject to purchase by TMI, at its option,
        on
        any Payment Date on or after the Optional Notes Purchase Date from the then
        Holders thereof. The purchase price for each Note (other than any Interest
        Only
        Notes) shall be equal to the sum of (i) the Note Principal Amount of such
        Note and (ii) any accrued but unpaid interest thereon at the applicable
        Note Interest Rate with respect thereto for such Payment Date. The purchase
        price for the Class [     ] Notes shall be an amount
        equal to the sum of (x) any Current Interest due (after taking into account
        payments made on such date from Current Interest) on the Class
        [     ] Notes, and (y) the present value, as of the
        date of such termination, of the remaining payments scheduled to be made
        on the
        Class [     ] Notes (such present value to be based on
        a discount rate that will approximate the expected yield to maturity of the
        Class [     ] Notes). In order to exercise the Optional
        Notes Purchase Right, TMI must, no later than the eighth Business Day prior
        to
        the applicable Payment Date, deliver to the Securities Administrator (with
        copies to the Rating Agencies and the Master Servicer) written notice, in
        the
        form of Exhibit O hereto, of its intent to purchase the Notes and of the
        Payment
        Date on which it intends to do so and the Securities Administrator will verify
        in writing to TMI the cash amount required of TMI to effect such purchase
        no
        later than the third Business Day prior to the Payment Date on which such
        purchase is scheduled to occur. The Securities Administrator shall furnish
        notice of the exercise of the Optional Notes Purchase Right to the applicable
        Noteholders in compliance with Section 10.02 of the Indenture. On the day
        prior to the Payment Date on which the Optional Notes Purchase Right will
        be
        exercised, TMI shall deposit the appropriate amount in cash with the Securities
        Administrator. Such amount shall be deposited by the Securities Administrator
        into the Note Payment Account. Such amounts shall be paid by the Securities
        Administrator to Holders of the applicable Notes as provided in Section
        10.03(c).

       

      
        
          
          

        

        
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      (b) In
        the
        case of an exercise of the Optional Notes Purchase Right, [TMI] shall be
        solely
        responsible for the costs and expenses of the Indenture Trustee, the Securities
        Administrator and the Master Servicer.

       

      (c) The
        Notes
        shall, following notice to Noteholders as required by Section 10.03(a), be
        purchased on the applicable Payment Date by [TMI] at the price specified
        in
        Section 10.03(a), and (unless [TMI] shall default in the payment of such
        amount)
        no interest shall accrue on such amount for any period after the date to
        which
        accrued interest is calculated for purposes of calculating such
        amount.

       

      (d) Subsequent
        to the purchase of the Notes following exercise of the Optional Notes Purchase
        Right, [TMI] shall be the sole Holder of the Notes. [TMI] may subsequently
        transfer some or all of the Notes acquired by it in accordance with the
        provisions of the Indenture. All Notes issued to the Noteholders prior to
        exercise of the Optional Securities Purchase Right shall be deemed cancelled
        (other than those Notes held by [TMI]).

       

      ARTICLE
        XI

       

      [Reserved]

       

      ARTICLE
        XII

       

      MISCELLANEOUS
        PROVISIONS

       

      SECTION
        12.01. Amendment.

       

      This
        Agreement may be amended from time to time by the Initial Seller, the Seller,
        the Depositor, the Master Servicer, the Securities Administrator, the Owner
        Trustee and the Indenture Trustee, and without the consent of any of the
        Securityholders, the Yield Maintenance Counterparty or the Auction Swap
        Counterparty (except to the extent that the rights or obligations of the
        Yield
        Maintenance Counterparty under the Yield Maintenance Agreements or of the
        Auction Swap Counterparty under the Auction Swap Agreement, are adversely
        affected thereby or the ability of the Securities Administrator on behalf
        of the
        Trust to perform its respective obligations under the Yield Maintenance
        Agreements or under the Auction Swap Agreement are adversely affected, in
        which
        case the consent of the Yield Maintenance Counterparty or the Auction Swap
        Counterparty, as applicable, is required) (i) to cure any ambiguity,
        (ii) to correct or supplement any provisions herein which may be defective
        or inconsistent with any other provisions herein, (iii) to make any other
        provisions with respect to matters or questions arising under this Agreement,
        which shall not be inconsistent with the provisions of this Agreement or
        (iv) to
        cause the provisions herein to conform to or be consistent with or in
        furtherance of the statements made with respect to the Securities, the Issuer
        or
        this Agreement in any Offering Document, or to correct or supplement any
        provision herein which may be inconsistent with any other provisions herein
        or
        in any other Operative Agreement; provided,
        however,
        that
        any such action shall not adversely affect in any material respect the interest
        of any Noteholder; provided,
        further, that
        any
        such action listed in clauses (i) through (iv) above shall be deemed
        not to adversely affect in any material respect the interests of any
        Securityholder, if evidenced by (i) written notice to the Indenture Trustee
        from each Rating Agency that such action will not result in the reduction
        or
        withdrawal of the rating of any outstanding Class of Notes with respect to
        which
        it is a Rating Agency or (ii) an Opinion of Counsel stating that such
        amendment shall not adversely affect in any material respect the interests
        of
        any Securityholder, is permitted by the Agreement and all the conditions
        precedent, if any have been complied with, delivered to the Master Servicer,
        the
        Securities Administrator and the Indenture Trustee.

       

      
        
          
          

        

        
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      In
        addition, this Agreement may be amended from time to time by the Initial
        Seller,
        the Seller, the Depositor, the Master Servicer, the Securities Administrator,
        the Owner Trustee and the Indenture Trustee (but without the consent of the
        Yield Maintenance Counterparty or the Auction Swap Counterparty, except to
        the
        extent that the rights or obligations of the Yield Maintenance Counterparty
        under the Yield Maintenance Agreements or of the Auction Swap Counterparty
        under
        the Auction Swap Agreement, are adversely affected thereby or the ability
        of the
        Securities Administrator on behalf of the Trust to perform its respective
        obligations under the Yield Maintenance Agreements or under the Auction Swap
        Agreement are adversely affected, in which case the consent of the Yield
        Maintenance Counterparty or the Auction Swap Counterparty, as applicable,
        is
        required) and with the consent of a majority in interest of the
        Certificateholders and a majority in interest of each Class of Notes affected
        by
        such amendment 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 Securities; provided,
        however,
        that no
        such amendment or waiver shall (x) reduce in any manner the amount of, or
        delay the timing of, payments on the Notes or Ownership Certificates that
        are
        required to be made on any such Note or Ownership Certificate without the
        consent of the Holder of such Security, (y) adversely affect in any
        material respect the interests of the Holders of any Class of Notes or Ownership
        Certificates in a manner other than as described in clause (x) above, without
        the consent of the Holders of Notes of such Class or Ownership Certificates
        evidencing at least a 662⁄3% Percentage Interest in such Class of Notes or the
        Ownership Certificates, or (z) reduce the percentage of Voting Rights
        required by clause (y) above without the consent of the Holders of all
        Notes of such Class then outstanding. Upon approval of an amendment, a copy
        of
        such amendment shall be sent to each Rating Agency.

       

      
        
          
          

        

        
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      Notwithstanding
        any provision of this Agreement to the contrary, neither the Indenture Trustee
        nor the Securities Administrator shall consent to any amendment to this
        Agreement unless it shall have first received an Opinion of Counsel, delivered
        by and at the expense of the Person seeking such Amendment (unless such Person
        is the Indenture Trustee or the Securities Administrator, in which case the
        Indenture Trustee or the Securities Administrator shall be entitled to be
        reimbursed for such expenses by the Issuer pursuant to Section 8.05 hereof),
        to
        the effect that such amendment will not result in the imposition of federal
        income tax on the Issuer and that the amendment is being made in accordance
        with
        the terms hereof, such amendment is permitted by this Agreement and all
        conditions precedent, if any, have been complied with.

       

      Promptly
        after the execution of any such amendment the Securities Administrator shall
        furnish, at the expense of the Person that requested the amendment if such
        Person is the Initial Seller or the Seller (but in no event at the expense
        of
        the Indenture Trustee or the Securities Administrator), otherwise at the
        expense
        of the Issuer, a copy of such amendment and the Opinion of Counsel referred
        to
        in the immediately preceding paragraph to the Master Servicer and each Rating
        Agency.

       

      It
        shall
        not be necessary for the consent of Securityholders under this
        Section 12.01 to approve the particular form of any proposed amendment;
        instead 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 Securityholders shall be subject
        to
        such reasonable regulations as the Securities Administrator may
        prescribe.

       

      The
        Indenture Trustee and Securities Administrator may, but shall not be obligated
        to, enter into any amendment pursuant to this 12.01 Section that affects
        its rights, duties and immunities under this Agreement or
        otherwise.

       

      SECTION
        12.02. Recordation
        of Agreement; Counterparts.

       

      To
        the
        extent permitted by applicable law, this Agreement is subject to recordation
        in
        all appropriate public offices for real property records in all the counties
        or
        other comparable jurisdictions in which any or all of the Mortgaged Properties
        are situated, and in any other appropriate public recording office or elsewhere,
        such recordation to be effected by the Indenture Trustee at the expense of
        the
        Issuer, but only upon direction of Noteholders accompanied by an Opinion
        of
        Counsel to the effect that such recordation materially and beneficially affects
        the interests of the Noteholders.

       

      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 together constitute but one and the same
        instrument.

       

      
        
          
          

        

        
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      SECTION
        12.03. [Reserved].

       

      SECTION
        12.04. Governing
        Law; Jurisdiction.

       

      THIS
        AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
        OF THE
        STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER
        THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
        RIGHTS
        AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
        SUCH LAWS.

       

      SECTION
        12.05. Notices.

       

      All
        directions, demands and notices hereunder shall be in writing and shall be
        deemed to have been duly given if personally delivered at or mailed by first
        class mail, postage prepaid, or by express delivery service or delivered
        via
        telecopy, to (a) in the case of the Initial Seller, to [Thornburg Mortgage
        Home Loans, Inc.], 150 Washington Avenue, Suite 302, Santa Fe, New Mexico
        87501,
        Attention: [     ] (telecopy number
        (505) 467-5215), or such other address or telecopy number as may hereafter
        be furnished to the Seller, the Depositor, the Master Servicer, the Securities
        Administrator, the Indenture Trustee and the Owner Trustee in writing by
        the
        Initial Seller, (b) in the case of the Seller, [Thornburg Mortgage Funding,
        Inc.], 150 Washington Avenue, Suite 302, Santa Fe, New Mexico 87501, Attention:
        [     ] (telecopy number (505) 467-5215), or such
        other address or telecopy number as may hereafter be furnished to the Initial
        Seller, the Depositor, the Master Servicer, the Securities Administrator,
        the
        Indenture Trustee and the Owner Trustee in writing by the Seller, (c) in
        the
        case of the Indenture Trustee, to the Corporate Trust Office or such other
        address or telecopy number as may hereafter be furnished to the Initial Seller,
        the Seller, the Depositor, the Master Servicer, the Securities Administrator
        and
        the Owner Trustee in writing by the Indenture Trustee, (d) in the case of
        the Depositor, to Thornburg Mortgage Securities Corporation, 150 Washington
        Avenue, Suite 302, Santa Fe, New Mexico 87501, Attention:
        [     ] (telecopy number (505) 467-5215), or such
        other address or telecopy number as may be furnished to the Initial Seller,
        the
        Seller, the Master Servicer, the Owner Trustee and the Indenture Trustee
        in
        writing by the Depositor, (e) in the case of the Owner Trustee,
        [     ], [     ], Attention:
        [     ] or such other address or telecopy number as may
        hereinafter be furnished to the Initial Seller, the Seller, the Depositor,
        the
        Master Servicer, the Securities Administrator, and the Indenture Trustee
        in
        writing by the Owner Trustee; and (f) in the case of the Master Servicer
        or
        Securities Administrator, for certificate transfer purposes, at its Corporate
        Trust Office, Facsimile no: [     ], or such other
        address or telecopy number as may be furnished to the Depositor, the Seller,
        the
        Initial Seller, the Owner Trustee and the Indenture Trustee in writing by
        the
        Master Servicer or the Securities Administrator. Any notice required or
        permitted to be mailed to a Securityholder shall be given by first class
        mail,
        postage prepaid, at the address of such Holder as shown in the Note Register
        or
        Certificate Register, as applicable. Notice of any Event of Default shall
        be
        given by telecopy and by certified mail. Any notice so mailed within the
        time
        prescribed in this Agreement shall be conclusively presumed to have duly
        been
        given when mailed, whether or not the Securityholder receives such notice.
        A
        copy of any notice required to be telecopied hereunder shall also be mailed
        to
        the appropriate party in the manner set forth above.

       

      
        
          
          

        

        
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      SECTION
        12.06. Severability
        of Provisions.

       

      If
        any
        one or more of the covenants, agreements, provisions or terms of this Agreement
        shall for any reason whatsoever be 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 Notes or the Ownership Certificate or the rights of the Noteholders
        or
        the Certificateholders.

       

      SECTION
        12.07. Article
        and Section References.

       

      All
        article and section references used in this Agreement, unless otherwise
        provided, are to articles and sections in this Agreement.

       

      SECTION
        12.08. Notice
        to the Rating Agencies.

       

      (a) The
        Securities Administrator shall be obligated to use its best reasonable efforts
        promptly to provide notice to the Rating Agencies with respect to each of
        the
        following of which a Responsible Officer of the Securities Administrator
        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 or
        waived;

       

      (iii) the
        resignation or termination of the Master Servicer, the Securities Administrator
        or the Indenture Trustee;

       

      (iv) the
        final
        payment to Holders of the Notes of any Class; and

       

      (v) any
        change in the location of any Account.

       

      (b) In
        addition, the Securities Administrator shall promptly furnish to the Rating
        Agencies copies of each Statement to Securityholders described in Section
        5.04
        hereof; if the Indenture Trustee is acting as a successor Master Servicer
        pursuant to Section 7.02 hereof, the Indenture Trustee shall notify the Rating
        Agencies of any event that would result in the inability of the Indenture
        Trustee to make Advances and the Master Servicer shall promptly furnish to
        each
        Rating Agency copies of the following:

       

      (i) each
        annual statement as to compliance described in Section 3.17 hereof;

       

      (ii) each
        annual assessment of compliance and attestation report described in Section
        3.16
        hereof; and

       

      (iii) each
        notice delivered pursuant to Section 5.05(b) hereof which relates to the
        fact
        that the Master Servicer has not made an Advance.

       

      
        
          
          

        

        
          130

          
            

          

        

        
          
          

        

      

      (c) All
        notices to the Rating Agencies provided for in this Agreement shall be in
        writing and sent by first class mail, telecopy or overnight courier, as
        follows:

       

      If
        to
        [   ], to:

      

      [   ]

      

      If
        to
        [   ], to:

      

      [   ]
        

       

      SECTION
        12.09. Further
        Assurances.

       

      Notwithstanding
        any other provision of this Agreement, neither the Securityholders nor the
        Indenture Trustee shall have any obligation to consent to any amendment or
        modification of this Agreement unless they have been provided reasonable
        security or indemnity against their out-of-pocket expenses (including reasonable
        attorneys’ fees) to be incurred in connection therewith.

       

      SECTION
        12.10. Benefits
        of Agreement.

       

      Nothing
        in this Agreement or in the Securities, expressed or implied, shall give
        to any
        Person, other than the Securityholders and the parties hereto and their
        successors hereunder, any benefit or any legal or equitable right, remedy
        or
        claim under this Agreement.

       

      SECTION
        12.11. [Reserved].

       

      SECTION
        12.12. Successors
        and Assigns.

       

      The
        provisions of this Agreement shall be binding upon and inure to the benefit
        of
        the respective successors and assigns of the parties hereto.

       

      SECTION
        12.13. [Reserved].

       

      SECTION
        12.14. Execution
        by the Issuer.

       

      It
        is
        expressly understood and agreed by the parties hereto that (a) this Agreement
        is
        executed and delivered by [     ], not individually or
        personally but solely as Owner Trustee of the Issuer, in the exercise of
        the
        powers and authority conferred and vested in it as trustee, (b) each of the
        representations, undertakings and agreements herein made on the part of the
        Issuer is made and intended not as personal representations, undertakings
        and
        agreements by [     ] but is made and intended for the
        purpose of binding only the Issuer, (c) nothing herein contained shall be
        construed as creating any liability on [     ],
        individually or personally, to perform any covenant either expressed or implied
        contained herein, all such liability, if any, being expressly waived by the
        parties hereto and by any person claiming by, through or under the parties
        hereto 

       

      
        
          
          

        

        
          131

          
            

          

        

        
          
          

        

      

      and
        (d)
        under no circumstances shall [     ] be personally
        liable for the payment of any indebtedness or expenses of the Issuer or be
        liable for the breach or failure of any obligation, representation, warranty
        or
        covenant made or undertaken by the Issuer under this Agreement or any other
        document.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the parties hereto have caused their names to be signed
        hereto
        by their respective officers thereunto duly authorized, all as of the day
        and
        year first above written.

       

      THORNBURG
        MORTGAGE SECURITIES TRUST [     ]

       

      By:
        [     ], not in its individual capacity but solely
        as

      Owner
        Trustee

       

      By:
        ___________________________________

      Name:

      Title:
        

       

      Thornburg
        Mortgage Securities Corporation, as
        Depositor

       

      By:
        ___________________________________

      Name:
        

      
        	 	 	
                Title:
                  

              

      

       

      [     ],
        as Indenture Trustee and Custodian

       

      By:
        ___________________________________

      Name:
        

      Title:
        

       

      [     ],
        

      as
        Master Servicer

      

      By:
        ___________________________________

      Name:
        

      Title:
        

       

      

      [     ],
        

      as
        Securities Administrator

       

      By:
        ___________________________________

      Name:
        

      Title:
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      THORNBURG
        MORTGAGE HOME LOANS, INC., as
        Initial Seller

       

      By:
        ___________________________________

      Name:
        

      Title:
        

       

      THORNBURG
        MORTGAGE FUNDING, INC., as
        Seller

       

      By:
        ___________________________________

      Name:
        

      Title:
        

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Solely
        for the purposes of Section 3.25,

      accepted
        and agreed to by:

      

      

      THORNBURG
        MORTGAGE, INC.

      

      

      By:____________________________

      Name:
        

      Title:
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                STATE
                  OF NEW MEXICO

              	
                )

              

      

      
        	 	
                )
                  ss.:

              

      

      
        	
                COUNTY
                  OF SANTA FE

              	
                )

              

      

       

      On
        the
        ___ day of ____________ [     ], before me, a notary
        public in and for said State, personally appeared _____________, known to
        me to
        be a _____________ of Thornburg Mortgage Securities Corporation, a Delaware
        corporation, that executed the within instrument, and also known to me to
        be the
        person who executed it on behalf of said corporation, and acknowledged to
        me
        that such corporation executed the within instrument.

       

      IN
        WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
        the
        day and year in this certificate first above written.

       

       

      ________________________

      Notary
        Public

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                STATE
                  OF NEW MEXICO

              	
                )

              

      

      
        	 	
                )
                  ss.:

              

      

      
        	
                COUNTY
                  OF SANTA FE

              	
                )

              

      

       

      On
        the
        ___ day of _____________ [     ], before me, a notary
        public in and for said State, personally appeared
        [     ] known to me to be a
        [     ] of Thornburg Mortgage Home Loans, Inc., a
        Delaware corporation, that executed the within instrument, and also known
        to me
        to be the person who executed it on behalf of said corporation, and acknowledged
        to me that such corporation executed the within instrument.

       

      IN
        WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
        the
        day and year in this certificate first above written.

      
         

         

        ________________________

        Notary
          Public

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

      

      
        	
                STATE
                  OF NEW MEXICO

              	
                )

              

      

      
        	 	
                )
                  ss.:

              

      

      
        	
                COUNTY
                  OF SANTA FE

              	
                )

              

      

       

      On
        the
        ___ day of _____________ [     ], before me, a notary
        public in and for said State, personally appeared
        [     ] known to me to be a
        [     ] of Thornburg Mortgage Funding, Inc., a Delaware
        corporation, that executed the within instrument, and also known to me to
        be the
        person who executed it on behalf of said corporation, and acknowledged to
        me
        that such corporation executed the within instrument.

       

      IN
        WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
        the
        day and year in this certificate first above written.

      
         

         

        ________________________

        Notary
          Public

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  STATE
                    OF [     ]

                	
                  )

                

        

      

      
        	 	
                )
                  ss.:

              

      

      
        	
                COUNTY
                  [     ]

              	
                )

              

      

       

      On
        the
        ___ day of _____________ [     ], before me, a notary
        public in and for said State, personally appeared ____________ known to me
        to be
        ______________ of [     ] that executed the within
        instrument, and also known to me to be the person who executed it on behalf
        of
        said corporation, and acknowledged to me that such corporation executed the
        within instrument.

       

      IN
        WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
        the
        day and year in this certificate first above written.

      
        
           

           

          ________________________

          Notary
            Public

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                STATE
                  OF [     ]

              	
                )

              

      

      
        	 	
                )
                  ss.:

              

      

      
        	
                COUNTY
                  OF [     ]

              	
                )

              

      

       

      On
        the
        ___ day of _____________ [     ], before me, a notary
        public in and for said State, personally appeared ______________, known to
        me to
        be ______________ of [     ], a national banking
        association that executed the within instrument, and also known to me to
        be the
        person who executed it on behalf of said corporation, and acknowledged to
        me
        that such corporation executed the within instrument.

       

      IN
        WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
        the
        day and year in this certificate first above written.

      
        
           

           

          ________________________

          Notary
            Public

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                STATE
                  OF [     ]

              	
                )

              

      

      
        	 	
                )
                  ss.:

              

      

      
        	
                COUNTY
                  OF [     ]

              	
                )

              

      

       

      On
        the
        ___ day of _____________ [     ], before me, a notary
        public in and for said State, personally appeared __________________, known
        to
        me to be a _______________ of [     ], and also known
        to me to be the person who executed it on behalf of said corporation, and
        acknowledged to me that such corporation executed the within
        instrument.

       

      IN
        WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
        the
        day and year in this certificate first above written.

      
        
           

           

          ________________________

          Notary
            Public

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

       

      SCHEDULE
        I

      

      MORTGAGE
        LOAN SCHEDULE

      

      To
        be
        retained in a separate closing binder entitled “Thornburg
        [     ] Mortgage Loan Schedule” 

      at
        the
        offices of McKee Nelson LLP

       

      
        
          
          

        

        
          S-I-1

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        II

      

      Aggregate
        Scheduled Principal Balance of Group [     ] 

      [     ]-Year
        Mortgage Loans

      

      
        	
                Payment
                  Date occurring in:

              	
                Aggregate
                  Scheduled Principal

                Balance
                  of the Group [     ]

                Mortgage
                  Loans Having 

                [     ]-Year
                  Original 

                Terms
                  to Maturity ($)*

              
	
                [     ]

              	
                [     ]

              
	
                [     ]

              	
                [     ]

              

      

      

      
        
          
          

        

        
          S-II-1

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        A

       

      [Reserved]

       

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        B

       

      [Reserved]

       

      
        
          
          

        

        
          B-1

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        C

       

      [Reserved]

       

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        D

       

      [Reserved]

    

    
       

      
        
          
          

        

        
          D-1

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        E

       

      [Reserved]

       

      
        
          
          

        

        
          E-1

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        F

       

      REQUEST
        FOR RELEASE

       

      
        
          	 	
                  _____________

                  Date

                

        

      

       

      [Addressed
        to Indenture Trustee

      or,
        if
        applicable, the Custodian]

       

      In
        connection with the administration of the mortgages held by you as Indenture
        Trustee under a certain Sale and Servicing Agreement dated as of [ ] [ ],
        [ ] by
        and among Thornburg Mortgage Securities Corporation, as Depositor, Thornburg
        Mortgage Home Loans, Inc., as Initial Seller, Thornburg Mortgage Funding
        Inc.,
        as Seller, [ ], as Master Servicer and Securities Administrator, [ ], as
        Owner
        Trustee and you, as Indenture Trustee and Custodian (the “Sale and Servicing
        Agreement”), the undersigned [Master Servicer] [Servicer] hereby requests a
        release of the Mortgage File held by you as Indenture Trustee with respect
        to
        the following described Mortgage Loan for the reason indicated
        below.

       

      
        	
                Mortgagor’s
                  Name:

              	 
	 	 
	
                Address:

              	 
	 	 
	
                Loan
                  No.:

              	 
	
                 

              	 
	
                Reason
                  for requesting file:

              	 

      

      

      1. Mortgage
        Loan paid in full. (The [Master Servicer] hereby certifies that all amounts
        received in connection with the loan have been or will be credited to the
        Collection Account (whichever is applicable) pursuant to the Sale and Servicing
        Agreement.)

       

      2. The
        Mortgage Loan is being foreclosed.

       

      3. Mortgage
        Loan substituted. (The [Master Servicer] [Servicer] hereby certifies that
        a
        Qualified Substitute Mortgage Loan has been assigned and delivered to you
        along
        with the related Mortgage File pursuant to the Sale and Servicing
        Agreement.)

       

      4. Mortgage
        Loan repurchased. (The [Master Servicer] [Servicer] hereby certifies that
        the
        Purchase Price has been credited to the Servicing Account or the Collection
        Account (whichever is applicable) pursuant to the Sale and Servicing
        Agreement.)

       

      5. Other.
        (Describe)

       

      
        
          
          

        

        
          F-1

          
            

          

        

        
          
          

        

      

       

      The
        undersigned acknowledges that the above Mortgage File will be held by the
        undersigned in accordance with the provisions of the Sale and Servicing
        Agreement and will be returned to you within ten (10) days of our receipt
        of the
        Mortgage File, except if the Mortgage Loan has been paid in full, or repurchased
        or substituted for a Qualified Substitute Mortgage Loan (in which case the
        Mortgage File will be retained by us without obligation to return to
        you).

       

      Capitalized
        terms used herein shall have the meanings ascribed to them in the Sale and
        Servicing Agreement.

       

      
        	 	 
	 	
                _________________________________________

              
	 	
                [Name
                  of [Master Servicer] [Servicer]]

              
	 	 
	 	 
	 	
                By:
                  ______________________________________

              
	 	
                Name:

              
	 	 
	 	
                Title:Servicing
                  Officer

              

      

      

      
        
          
          

        

        
          F-2

          
            

          

        

        
          
          

        

        

        EXHIBIT
          G-1

         

        FORM
          OF RECEIPT OF MORTGAGE NOTE

         

        RECEIPT
          OF MORTGAGE NOTE

         

        Thornburg
          Mortgage Securities Corporation 

        150
          Washington Avenue, Suite 302

        Santa
          Fe, New Mexico 87501

         

        Thornburg
          Mortgage Securities Trust [     ]

        [     ],
          as Owner Trustee

        [     ]

         

        
          	 	
                  Re:
                    

                	
                  Thornburg
                    Mortgage Securities Trust [     ],
                    

                

        

        Mortgage-Backed
          Notes, Series [     ]

         

        Ladies
          and Gentlemen:

         

        Pursuant
          to Section 2.01 of the Sale and Servicing Agreement, dated as of
          [     ] [   ],
          [     ], among Thornburg Mortgage Securities
          Corporation, as Depositor, Thornburg Mortgage Home Loans, Inc., as Initial
          Seller, Thornburg Mortgage Funding, Inc., as Seller,
          [     ], as Master Servicer and Securities
          Administrator, [     ], as Owner Trustee and
          [     ], as Indenture Trustee and Custodian, we hereby
          acknowledge the receipt of the original Mortgage Note with respect to each
          Mortgage Loan listed on Exhibit 1, with any exceptions thereto listed on
          Exhibit
          2.

        
           

          
            	 	
                    [     ],
                      as Indenture Trustee

                  
	 	 
	 	 
	 	
                    By:
                      ______________________________________

                  
	 	
                    Name:

                  
	 	
                    Title:

                  

          

           

        

        Dated:

         

        
          
            
            

          

          
            G-1-1

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          1

         

        MORTGAGE
          LOAN SCHEDULE

         

        [To
          be retained in a separate closing binder entitled “Thornburg
          [     ] Mortgage Loan

        Schedule
          at the offices of McKee Nelson LLP]

         

        
          
            
            

          

          
            G-1-2

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          2

         

        EXCEPTION
          REPORT

         

        [To
          be retained in a separate closing binder entitled “Thornburg
          [     ] Mortgage Loan

        Schedule
          at the offices of McKee Nelson LLP]

         

        
          
            
            

          

          
            G-1-3

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          G-2

         

        FORM
          OF INTERIM CERTIFICATION OF INDENTURE TRUSTEE

         

        INTERIM
          CERTIFICATION OF INDENTURE TRUSTEE

         

        [date]

         

        Thornburg
          Mortgage Securities Corporation 

        150
          Washington Avenue, Suite 302

        Santa
          Fe, New Mexico 87501

         

        Thornburg
          Mortgage Home Loans, Inc.

        150
          Washington Avenue, Suite 302

        Santa
          Fe,
          New Mexico 87501

         

        Thornburg
          Mortgage Funding, Inc.

        150
          Washington Avenue, Suite 302

        Santa
          Fe,
          New Mexico 87501

         

        Thornburg
          Mortgage Securities Trust [     ]

        [     ],
          as Owner Trustee

        [     ]

         

        [MASTER
          SERVICER]

        [     ]

         

        
          	 	
                  Re:

                	
                  Sale
                    and Servicing Agreement by and among Thornburg
                    Mortgage Securities Corporation,
                    as Depositor, Thornburg Mortgage Home Loans, Inc., as Initial
                    Seller,
                    Thornburg Mortgage Funding, Inc., as Seller,
                    [     ], as Master Servicer and Securities
                    Administrator, [     ], as Owner Trustee and
                    [     ], as Indenture Trustee and Custodian,
                    Thornburg
                    Mortgage Securities Trust [     ] Mortgage-Backed
                    Notes, Series
                    [     ]

                

        

         

        Ladies
          and Gentlemen:

         

        In
          accordance with Section 2.02 of the above-captioned Sale and Servicing
          Agreement
          (the “Sale and Servicing Agreement”), the undersigned, as Indenture 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
          schedule) it has received:

         

        
          	 	
                  1.

                	
                  all
                    documents required to be delivered to the Indenture Trustee pursuant
                    to
                    Section 2.01 of the Sale and Servicing Agreement are in its
                    possession;

                

        

         

        
          	 	
                  2.

                	
                  such
                    documents have been reviewed by the Indenture Trustee and have
                    not been
                    mutilated, damaged or torn and relate to such Mortgage Loan;
                    and

                

        

         

        
          
            
            

          

          
            G-2-1

            
              

            

          

          
            
            

          

        

        

        
          	 	
                  3.

                	
                  based
                    on the Indenture Trustee’s examination and only as to the foregoing, the
                    information set forth in the Mortgage Loan Schedule that corresponds
                    to
                    items (i), (ii), (iii), (xiii), (xiv) and (xviii) of the Mortgage
                    Loan
                    Schedule accurately reflects information set forth in the Mortgage
                    File.

                

        

         

        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
          Indenture Trustee has made no independent examination of any documents
          contained
          in each Mortgage File beyond the review specifically required in the Sale
          and
          Servicing Agreement. The Indenture 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.

         

        Capitalized
          words and phrases used herein shall have the respective meanings assigned
          to
          them in the Sale and Servicing Agreement.

        
          
             

            
              	 	
                      [     ],
                        as Indenture Trustee

                    
	 	 
	 	 
	 	
                      By:
                        ______________________________________

                    
	 	
                      Name:

                    
	 	
                      Title:

                    

            

             

            
              
                
                

              

              
                G-2-2

                
                  

                

              

              
                
                

              

            

          

        

        

        EXHIBIT
          G-3

         

        FORM
          OF FINAL CERTIFICATION OF TRUSTEE

         

        FINAL
          CERTIFICATION OF TRUSTEE

         

        [date]

         

        Thornburg
          Mortgage Securities Corporation 

        150
          Washington Avenue, Suite 302

        Santa
          Fe, New Mexico 87501

         

        Thornburg
          Mortgage Home Loans, Inc.

        150
          Washington Avenue, Suite 302 

        Santa
          Fe,
          New Mexico 87501

         

        Thornburg
          Mortgage Funding, Inc.

        150
          Washington Avenue, Suite 302

        Santa
          Fe,
          New Mexico 87501

         

        Thornburg
          Mortgage Securities Trust [     ]

        [     ],
          as Owner Trustee

        [     ]

         

        [MASTER
          SERVICER]

        [     ]

         

        
          	 	
                  Re:

                	
                  Sale
                    and Servicing Agreement among Thornburg
                    Mortgage Securities Corporation,
                    as Depositor, Thornburg Mortgage Home Loans, Inc., as Initial
                    Seller,
                    Thornburg Mortgage Funding, Inc., as Seller,
                    [     ], as Master Servicer and Securities
                    Administrator, [     ], as Owner Trustee and
                    [     ], as Indenture Trustee and Custodian,
                    Thornburg Mortgage
                    Securities Trust [     ] Mortgage Backed Notes,
                    Series
                    [     ]

                

        

         

        Ladies
          and Gentlemen:

         

        In
          accordance with Section 2.02 of the above-captioned Sale and Servicing
          Agreement
          (the “Sale and Servicing Agreement”), the undersigned, as Indenture 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 all documents required to be
          delivered to the Indenture Trustee pursuant to Section 2.01 of the Sale
          and
          Servicing Agreement.

         

        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 (i), (ii), (iii), (xiii), (xiv)
          and
          (xviii) of the definition of the “Mortgage Loan Schedule” in Section 1.01 of the
          Sale and Servicing Agreement accurately reflects information set forth
          in the
          Mortgage File.

         

        
          
            
            

          

          
            G-3-1

            
              

            

          

          
            
            

          

        

        

        The
          Indenture Trustee has made no independent examination of any documents
          contained
          in each Mortgage File beyond the review specifically required in the Sale
          and
          Servicing Agreement. The Indenture 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.

         

        Capitalized
          words and phrases used herein shall have the respective meanings assigned
          to
          them in the Sale and Servicing Agreement.

        
           

          
            	 	
                    [     ],
                      as Indenture Trustee

                  
	 	 
	 	 
	 	
                    By:
                      ______________________________________

                  
	 	
                    Name:

                  
	 	
                    Title:

                  

          

           

          
            
              
              

            

            
              G-3-2

              
                

              

            

            
              
              

            

          

        

        

        EXHIBIT
          H

         

        FORM
          OF LOST NOTE AFFIDAVIT

         

        Personally
          appeared before me the undersigned authority to administer oaths,
          ______________________ who first being duly sworn deposes and says: Deponent
          is
          ______________________ of Thornburg Mortgage Home Loans, Inc. (the “Initial
          Seller”) and who has personal knowledge of the facts set out in this
          affidavit.

         

        On
          ___________________, _________________________ did execute and deliver
          a
          promissory note in the principal amount of $__________ (the
“Note”).

         

        That
          said note has been misplaced or lost through causes unknown and is currently
          lost and unavailable after diligent search has been made. The Initial Seller’s
          records show that an amount of principal and interest on said Note is still
          presently outstanding, due, and unpaid, and such Seller is still owner
          and
          holder in due course of said lost Note.

         

        The
          Seller executes this Affidavit for the purpose of inducing
          [     ], as indenture trustee on behalf of Thornburg
          Mortgage Securities Trust [     ], Mortgage Loan
          Pass-Through Certificates, Series [     ], to accept
          the transfer of the above described loan from the Initial Seller.

         

        The
          Initial Seller agrees to indemnify [     ] and
          Structured Asset Securities Corporation and hold them harmless for any
          losses
          incurred by such parties resulting from the fact that the above described
          Note
          has been lost or misplaced.

         

        
          By:
            ___________________________________

          ______________________________________

        

         

        
          	
                  STATE
                    OF

                	
                  )

                	 
	 	
                  )

                	
                  ss:

                
	
                  COUNTY
                    OF

                	
                  )

                	 

        

        

        On
          this
          ____ day of ___________ 20__, before me, a Notary Public, in and for said
          County
          and State, appeared ________________________, who acknowledged the extension
          of
          the foregoing and who, having been duly sworn, states that any representations
          therein contained are true.

         

        Witness
          my hand and Notarial Seal this ____ day of _______ 20__.

         

        _________________________________

        
          _________________________________

        

        
          My
            commission expires __________________.

        

         

        
          
            
            

          

          
            H-1

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          I

         

        [Reserved]

         

        
          
            
            

          

          
            I-1

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          J-1

         

        [Reserved]

         

        
          
            
            

          

          
            J-1-1

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT
            J-2

           

        

        [Reserved]

         

        
          
            
            

          

          
            J-2-1

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          K

         

        [Reserved]

         

        
          
            
            

          

          
            K-1

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
          L

         

        [Reserved]

        

        
          
            
            

          

          
            L-1

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          M

         

        FORM
          OF CERTIFICATE OF TRUST

         

        This
          Certificate of Trust of Thornburg Mortgage Securities Trust
          [     ] (the “Trust”) is being duly executed and filed
          by the undersigned, as owner trustee, to form a statutory trust under the
          Delaware Statutory Trust Act, 12 Del. C.§§
3801
          et seq.
          (the
“Act”).

         

        1. Name.
          The
          name of the statutory trust formed hereby is Thornburg Mortgage Securities
          Trust
          [     ].

         

        2. Delaware
          Trustee.
          The
          name and the business address of the trustee of the Trust with a principal
          place
          of business in the State of Delaware and County of New Castle is
          [     ].

         

        3. Effective
          Date.
          This
          Certificate of Trust shall be effective upon filing with the Secretary
          of State
          of the State of Delaware.

         

        IN
          WITNESS WHEREOF, the undersigned, being the owner trustee of the Trust,
          has duly
          executed this Certificate of Trust in accordance with Section 3811(a)(1)
          of the
          Act.

        
           

          
            	 	
                    [     ],
                      as Owner Trustee

                  
	 	 
	 	 
	 	
                    By:
                      ______________________________________

                  
	 	
                    Name:

                  
	 	
                    Title:

                  

          

           

          
            
              
              

            

            
              M-1

              
                

              

            

            
              
              

            

          

        

        

        EXHIBIT
          N

         

        LIST
          OF SERVICERS AND SERVICING AGREEMENTS

         

        [     ]

         

        
          
            
            

          

          
            N-1

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          O

         

        NOTICE
          OF EXERCISE OF OPTIONAL NOTES PURCHASE RIGHT

         

        Date__________________

         

        
          	
                  [INDENTURE
                    TRUSTEE]

                
	 
	
                  [SECURITIES
                    ADMINISTRATOR]

                
	 
	
                  [RATING
                    AGENCIES]

                
	 
	
                  [MASTER
                    SERVICER]

                
	 
	 

        

        

        
          	 	
                  Re:

                	
                  Thornburg
                    Mortgage Securities Trust
                    [     ]

                

        

         

        Ladies
          and Gentlemen:

         

        Pursuant
          to the terms of the Sale and Servicing Agreement (the “Agreement”), dated as of
          [     ] [   ],
          [     ], among Thornburg Mortgage Securities
          Corporation, as depositor, Thornburg Mortgage Home Loans, Inc., as initial
          seller, Thornburg Mortgage Funding, Inc., as seller,
          [     ], as master servicer and securities
          administrator, [     ], as indenture trustee and
          custodian, and [     ], as owner trustee, we hereby
          give notice of our exercise of the Optional Notes Purchase Right. We intend
          to
          purchase the outstanding Notes on the Payment Date in ______ 20__. 

         

        
          	 	
                  Very
                    truly yours,

                   

                  THORNBURG
                    MORTGAGE, INC.

                   

                   

                  By: ______________________________

                  
                    Authorized
                      Officer

                  

                

        

         

        
          
            
            

          

          
            O-1

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          P

         

        [Reserved]

         

        
          
            
            

          

          
            P-1

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          Q

         

        SERVICING
          CRITERIA

         

        The
          assessment of compliance to be delivered by [     ]
          (“[     ]”), in its capacities as Master Servicer and
          Securities Administrator, and [     ], in its capacity
          as Custodian, shall address, at a minimum, the criteria identified below
          as
“Applicable Servicing Criteria”:

        
          	 	 	 
	
                  Servicing
                    Criteria

                	
                  Applicable

                  Servicing

                  Criteria
                    for [     ]

                	
                  Applicable

                  Servicing

                  Criteria
                    for [     ]

                
	
                  Reference

                	
                  Criteria

                	 	 
	 	
                  General
                    Servicing Considerations

                	 	 
	 	 	 	 
	
                  1122(d)(1)(i)

                	
                  Policies
                    and procedures are instituted to monitor any performance or other
                    triggers
                    and events of default in accordance with the transaction
                    agreements.

                	
                  X

                	 
	
                  1122(d)(1)(ii)

                	
                  If
                    any material servicing activities are outsourced to third parties,
                    policies and procedures are instituted to monitor the third party’s
                    performance and compliance with such servicing activities.

                	
                  X

                	 
	
                  1122(d)(1)(iii)

                	
                  Any
                    requirements in the transaction agreements to maintain a back-up
                    servicer
                    for the mortgage loans are maintained.

                	 	 
	
                  1122(d)(1)(iv)

                	
                  A
                    fidelity bond and errors and omissions policy is in effect on
                    the party
                    participating in the servicing function throughout the reporting
                    period in
                    the amount of coverage required by and otherwise in accordance
                    with the
                    terms of the transaction agreements.

                	
                  X

                	 
	 	
                  Cash
                    Collection and Administration

                	 	 
	
                  1122(d)(2)(i)

                	
                  Payments
                    on mortgage loans are deposited into the appropriate custodial
                    bank
                    accounts and related bank clearing accounts no more than two
                    business days
                    following receipt, or such other number of days specified in
                    the
                    transaction agreements.

                	
                  X

                	 
	
                  1122(d)(2)(ii)

                	
                  Disbursements
                    made via wire transfer on behalf of an obligor or to an investor
                    are made
                    only by authorized personnel.

                	
                  X

                	 
	
                  1122(d)(2)(iii)

                	
                  Advances
                    of funds or guarantees regarding collections, cash flows or distributions,
                    and any interest or other fees charged for such advances, are
                    made,
                    reviewed and approved as specified in the transaction
                    agreements.

                	
                  X

                	 
	
                  1122(d)(2)(iv)

                	
                  The
                    related accounts for the transaction, such as cash reserve accounts
                    or
                    accounts established as a form of overcollateralization, are
                    separately
                    maintained (e.g., with respect to commingling of cash) as set
                    forth in the
                    transaction agreements.

                	
                  X

                	 
	
                  1122(d)(2)(v)

                	
                  Each
                    custodial account is maintained at a federally insured depository
                    institution as set forth in the transaction agreements. For purposes
                    of
                    this criterion, “federally insured depository institution” with respect to
                    a foreign financial institution means a foreign financial institution
                    that
                    meets the requirements of Rule 13k-1(b)(1) of the Securities
                    Exchange
                    Act.

                	
                  X

                	 

        

        
          
            
            

          

          
            Q-1

            
              

            

          

          
            
            

          

        

        

        

        
          	 	 	 
	
                  Servicing
                    Criteria

                	
                  Applicable

                  Servicing

                  Criteria
                    for [     ]

                	
                  Applicable

                  Servicing

                  Criteria
                    for [     ]

                
	
                  Reference

                	
                  Criteria

                	 	 
	
                  1122(d)(2)(vi)

                	
                  Unissued
                    checks are safeguarded so as to prevent unauthorized
                    access.

                	 	 
	
                  1122(d)(2)(vii)

                	
                  Reconciliations
                    are prepared on a monthly basis for all asset-backed securities
                    related
                    bank accounts, including custodial accounts and related bank
                    clearing
                    accounts. These reconciliations are (A) mathematically accurate;
                    (B)
                    prepared within 30 calendar days after the bank statement cutoff
                    date, or
                    such other number of days specified in the transaction agreements;
                    (C)
                    reviewed and approved by someone other than the person who prepared
                    the
                    reconciliation; and (D) contain explanations for reconciling
                    items. These
                    reconciling items are resolved within 90 calendar days of their
                    original
                    identification, or such other number of days specified in the
                    transaction
                    agreements.

                	
                  X

                	 
	 	
                  Investor
                    Remittances and Reporting

                	 	 
	
                  1122(d)(3)(i)

                	
                  Reports
                    to investors, including those to be filed with the Commission,
                    are
                    maintained in accordance with the transaction agreements and
                    applicable
                    Commission requirements. Specifically, such reports (A) are prepared
                    in
                    accordance with timeframes and other terms set forth in the transaction
                    agreements; (B) provide information calculated in accordance
                    with the
                    terms specified in the transaction agreements; (C) are filed
                    with the
                    Commission as required by its rules and regulations; and (D)
                    agree with
                    investors’ or the trustee’s records as to the total unpaid principal
                    balance and number of mortgage loans serviced by the
                    Servicer.

                	
                  X

                	 
	
                  1122(d)(3)(ii)

                	
                  Amounts
                    due to investors are allocated and remitted in accordance with
                    timeframes,
                    distribution priority and other terms set forth in the transaction
                    agreements.

                	
                  X

                	 
	
                  1122(d)(3)(iii)

                	
                  Disbursements
                    made to an investor are posted within two business days to the
                    Servicer’s
                    investor records, or such other number of days specified in the
                    transaction agreements.

                	
                  X

                	 
	
                  1122(d)(3)(iv)

                	
                  Amounts
                    remitted to investors per the investor reports agree with cancelled
                    checks, or other form of payment, or custodial bank
                    statements.

                	
                  X

                	 
	 	
                  Pool
                    Asset Administration

                	 	 
	
                  1122(d)(4)(i)

                	
                  Collateral
                    or security on mortgage loans is maintained as required by the
                    transaction
                    agreements or related mortgage loan documents.

                	 	
                  X

                

        

      

      
         

        
          
            
            

          

          
            Q-2

            
              

            

          

          
            
            

          

        

         

        
          	 	 	 
	
                  Servicing
                    Criteria

                	
                  Applicable

                  Servicing

                  Criteria
                    for [     ]

                	
                  Applicable

                  Servicing

                  Criteria
                    for [     ]

                
	
                  Reference

                	
                  Criteria

                	 	 
	
                  1122(d)(4)(ii)

                	
                  Mortgage
                    loan and related documents are safeguarded as required by the
                    transaction
                    agreements.

                	 	
                  X

                
	
                  1122(d)(4)(iii)

                	
                  Any
                    additions, removals or substitutions to the asset pool are made,
                    reviewed
                    and approved in accordance with any conditions or requirements
                    in the
                    transaction agreements.

                	 	
                  X

                
	
                  1122(d)(4)(iv)

                	
                  Payments
                    on mortgage loans, including any payoffs, made in accordance
                    with the
                    related mortgage loan documents are posted to the Servicer’s obligor
                    records maintained no more than two business days after receipt,
                    or such
                    other number of days specified in the transaction agreements,
                    and
                    allocated to principal, interest or other items (e.g., escrow)
                    in
                    accordance with the related mortgage loan documents.

                	 	 
	
                  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.

                	 	 
	
                  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.

                	 	 
	
                  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.

                	 	 
	
                  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).

                	 	 
	
                  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.

                	 	 
	
                  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.

                	 	 

        

         

        
          
            
            

          

          
            Q-3

            
              

            

          

          
            
            

          

        

         

        
          	 	 	 
	
                  Servicing
                    Criteria

                	
                  Applicable

                  Servicing

                  Criteria
                    for [     ]

                	
                  Applicable

                  Servicing

                  Criteria
                    for [     ]

                
	
                  Reference

                	
                  Criteria

                	 	 
	
                  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.

                	 	 
	
                  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.

                	 	 
	
                  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.

                	 	 
	
                  1122(d)(4)(xiv)

                	
                  Delinquencies,
                    charge-offs and uncollectible accounts are recognized and recorded
                    in
                    accordance with the transaction agreements.

                	
                  X

                	 
	
                  1122(d)(4)(xv)

                	
                  Any
                    external enhancement or other support, identified in Item 1114(a)(1)
                    through (3) or Item 1115 of Regulation AB, is maintained as set
                    forth in
                    the transaction agreements.

                	
                  X

                	 
	 	 	 	 

        

        

        
          
            
            

          

          
            Q-4

            
              

            

          

          
            
            

          

        

         

        EXHIBIT
          R

         

        ADDITIONAL
          FORM 10-D DISCLOSURE

         

        
          	
                  ADDITIONAL
                    FORM 10-D DISCLOSURE

                
	
                  Item
                    on Form 10-D

                	
                  Party
                    Responsible

                
	
                  Item
                    1: Distribution and Pool Performance Information

                	 
	
                  Information
                    included in the Payment Date Statement

                	
                  Servicer

                  Master
                    Servicer

                  Securities
                    Administrator

                
	
                  Any
                    information required by 1121 which is NOT included on the Payment
                    Date
                    Statement

                	
                  Depositor

                
	
                  Item
                    2: Legal Proceedings

                	 
	
                  Any
                    legal proceeding pending against the following entities or their
                    respective property, that is material to Noteholders, including
                    any
                    proceeding known to be contemplated by governmental
                    authorities:

                	 
	
                  ▪
                    Issuing Entity (Trust)

                	
                  Indenture
                    Trustee, Master Servicer, Securities Administrator and
                    Depositor

                
	
                  ▪
                    Sponsor (Initial Seller) (Seller)

                	
                  Initial
                    Seller, Seller or Depositor

                
	
                  ▪
                    Depositor

                	
                  Depositor

                
	
                  ▪
                    Indenture Trustee

                	
                  Indenture
                    Trustee

                
	
                  ▪
                    Securities Administrator

                	
                  Securities
                    Administrator

                
	
                  ▪
                    Master Servicer

                	
                  Master
                    Servicer

                
	
                  ▪
                    Custodian

                	
                  Custodian

                
	
                  ▪
                    1110(b) Originator

                	
                  Depositor

                
	
                  ▪
                    Any 1108(a)(2) Servicer (other than the Master Servicer or Securities
                    Administrator)

                	
                  Servicer

                
	
                  ▪
                    Any other party contemplated by 1100(d)(1)

                	
                  Depositor

                
	
                  Item
                    3: Sale of Securities and Use of Proceeds

                	
                  Depositor

                
	
                  Information
                    from Item 2(a) of Part II of Form 10-Q:

                	 
	
                  With
                    respect to any sale of securities by the sponsor, depositor or
                    issuing
                    entity, that are backed by the same asset pool or are otherwise
                    issued by
                    the issuing entity, whether or not registered, provide the sales
                    and use
                    of proceeds information in Item 701 of Regulation S-K. Pricing
                    information
                    can be omitted if securities were not registered.

                	 
	
                  Item
                    4: Defaults Upon Senior Notes

                	
                  Securities
                    Administrator

                  Indenture
                    Trustee (in the event of the

                  Master
                    Servicer’s termination)

                

        

        

        
          
            
              
              

            

            
              R-1

              
                

              

            

            
              
              

            

          

        

         

        
          	
                  ADDITIONAL
                    FORM 10-D DISCLOSURE

                
	
                  Item
                    on Form 10-D

                	
                  Party
                    Responsible

                
	
                  Information
                    from Item 3 of Part II of Form 10-Q:

                	 
	
                  Report
                    the occurrence of any Event of Default (after expiration of any
                    grace
                    period and provision of any required notice)

                	 
	
                  Item
                    5: Submission of Matters to a Vote of Security
                    Holders

                	
                  Securities
                    Administrator

                  Indenture
                    Trustee

                
	
                  Information
                    from Item 4 of Part II of Form 10-Q

                	 
	
                  Item
                    6: Significant Obligors of Pool Assets

                	
                  Depositor

                
	
                  Item
                    1112(b) - Significant
                    Obligor Financial Information*

                	 
	
                  *This
                    information need only be reported on the Form 10-D for the payment
                    period
                    in which updated information is required pursuant to the
                    Item.

                	 
	
                  Item
                    7: Significant Enhancement Provider Information

                	 
	
                  Item
                    1114(b)(2) - Credit Enhancement Provider Financial
                    Information*

                	 
	
                  ▪
                    Determining applicable disclosure threshold

                	
                  Depositor

                
	
                  ▪
                    Requesting required financial information (including any required
                    accountants’ consent to the use thereof) or effecting incorporation by
                    reference

                	
                  Depositor

                
	
                  Item
                    1115(b) - Derivative Counterparty Financial
                    Information*

                	 
	
                  ▪
                    Determining current maximum probable exposure

                	
                  Depositor

                
	
                  ▪
                    Determining current significance percentage

                	
                  Depositor

                
	
                  ▪
                    Requesting required financial information (including any required
                    accountants’ consent to the use thereof) or effecting incorporation by
                    reference

                	
                  Depositor

                
	
                  *This
                    information need only be reported on the Form 10-D for the payment
                    period
                    in which updated information is required pursuant to the
                    Items.

                	 
	
                  Item
                    8: Other Information

                	
                  Any
                    party responsible for the applicable Form 8-K Disclosure
                    item

                
	
                  Disclose
                    any information required to be reported on Form 8-K during the
                    period
                    covered by the Form 10-D but not reported

                	 
	
                  Item
                    9: Exhibits

                	 
	
                  Payment
                    Date Statement to Noteholders

                	
                  Securities
                    Administrator

                
	
                  Exhibits
                    required by Item 601 of Regulation S-K, such as material
                    agreements

                	
                  Depositor

                

        

        

        
          
            
              
              

            

            
              R-2

              
                

              

            

            
              
              

            

          

        

         

        EXHIBIT
          S

         

        ADDITIONAL
          FORM 10-K DISCLOSURE

         

        
          	
                  ADDITIONAL
                    FORM 10-K DISCLOSURE

                
	
                  Item
                    on Form 10-K

                	
                  Party
                    Responsible

                
	
                  Item
                    1B: Unresolved Staff Comments

                	
                  Depositor

                
	
                  Item
                    9B: Other Information

                	
                  Any
                    party responsible for disclosure items on Form 8-K

                
	
                  Disclose
                    any information required to be reported on Form 8-K during the
                    fourth
                    quarter covered by the Form 10-K but not reported

                	 
	
                  Item
                    15: Exhibits, Financial Statement Schedules

                	
                  Securities
                    Administrator

                  Depositor

                
	
                  Reg
                    AB Item 1112(b): Significant Obligors of Pool
                    Assets

                	 
	
                  Significant
                    Obligor Financial Information*

                	
                  Depositor

                
	
                  *This
                    information need only be reported on the Form 10-D for the payment
                    period
                    in which updated information is required pursuant to the
                    Item.

                	 
	
                  Reg
                    AB Item 1114(b)(2): Credit Enhancement Provider Financial
                    Information

                	 
	
                  ▪
                    Determining applicable disclosure threshold

                	
                  Depositor

                
	
                  ▪
                    Requesting required financial information (including any required
                    accountants’ consent to the use thereof) or effecting incorporation by
                    reference

                	
                  Depositor

                
	
                  *This
                    information need only be reported on the Form 10-D for the payment
                    period
                    in which updated information is required pursuant to the
                    Items.

                	 
	
                  Reg
                    AB Item 1115(b): Derivative Counterparty Financial
                    Information

                	 
	
                  ▪
                    Determining current maximum probable exposure

                	
                  Depositor

                
	
                  ▪
                    Determining current significance percentage

                	
                  Depositor

                
	
                  ▪
                    Requesting required financial information (including any required
                    accountants’ consent to the use thereof) or effecting incorporation by
                    reference

                	
                  Depositor

                
	
                  *This
                    information need only be reported on the Form 10-D for the payment
                    period
                    in which updated information is required pursuant to the
                    Items.

                	 

        

        

        
          
            
              
              

            

            
              S-1

              
                

              

            

            
              
              

            

          

        

        

        

        
          	
                  ADDITIONAL
                    FORM 10-K DISCLOSURE

                
	
                  Item
                    on Form 10-K

                	
                  Party
                    Responsible

                
	
                  Reg
                    AB Item 1117: Legal Proceedings

                	 
	
                  Any
                    legal proceeding pending against the following entities or their
                    respective property, that is material to Noteholders, including
                    any
                    proceeding known to be contemplated by governmental
                    authorities:

                	 
	
                  ▪
                    Issuing Entity (Trust)

                	
                  Indenture
                    Trustee, Master Servicer, Securities Administrator and
                    Depositor

                
	
                  ▪
                    Sponsor (Initial Seller)

                	
                  Initial
                    Seller or Depositor

                
	
                  ▪
                    Depositor

                	
                  Depositor

                
	
                  ▪
                    Indenture Trustee

                	
                  Indenture
                    Trustee

                
	
                  ▪
                    Securities Administrator

                	
                  Securities
                    Administrator

                
	
                  ▪
                    Master Servicer

                	
                  Master
                    Servicer

                
	
                  ▪
                    Custodian

                	
                  Custodian

                
	
                  ▪
                    1110(b) Originator

                	
                  Depositor

                
	
                  ▪
                    Any 1108(a)(2) Servicer (other than the Master Servicer or Securities
                    Administrator)

                	
                  Servicer

                
	
                  ▪
                    Any other party contemplated by 1100(d)(1)

                	
                  Depositor

                
	
                  Reg
                    AB Item 1119: Affiliations and Relationships

                	 
	
                  Whether
                    (a) the Sponsor (Initial Seller) (Seller), Depositor or Issuing
                    Entity is
                    an affiliate of the following parties, and (b) to the extent
                    known and
                    material, any of the following parties are affiliated with one
                    another:

                	
                  Depositor
                    as to Depositor and Issuing Entity (a)

                  Sponsor/Initial
                    Seller/Seller as to Sponsor/Initial Seller/Seller (a)

                
	
                  ▪
                    Master Servicer

                	
                  Master
                    Servicer

                
	
                  ▪
                    Securities Administrator

                	
                  Securities
                    Administrator

                
	
                  ▪
                    Indenture Trustee

                	
                  Indenture
                    Trustee

                
	
                  ▪
                    Any other 1108(a)(3) servicer

                	
                  Servicer

                
	
                  ▪
                    Any 1110 Originator

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any 1112(b) Significant Obligor

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any 1114 Credit Enhancement Provider

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any 1115 Derivate Counterparty Provider

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any other 1101(d)(1) material party

                	
                  Depositor/Sponsor

                
	
                  Whether
                    there are any “outside the ordinary course business arrangements” other
                    than would be obtained in an arm’s length transaction between (a) the
                    Sponsor (Initial Seller) (Seller), Depositor or Issuing Entity
                    on the one
                    hand, and (b) any of the following parties (or their affiliates)
                    on the
                    other hand, that exist currently or within the past two years
                    and that are
                    material to a Noteholder’s understanding of the Notes:

                	
                  Depositor
                    as to Depositor and Issuing Entity (a)

                  Sponsor/Initial
                    Seller/Seller as to Sponsor/Initial Seller/Seller
                    (a)

                

        

        

        
          
            
              
              

            

            
              S-2

              
                

              

            

            
              
              

            

          

        

        

        

        
          	
                  ADDITIONAL
                    FORM 10-K DISCLOSURE

                
	
                  Item
                    on Form 10-K

                	
                  Party
                    Responsible

                
	
                  ▪
                    Master Servicer

                	
                  Master
                    Servicer

                
	
                  ▪
                    Securities Administrator

                	
                  Securities
                    Administrator

                
	
                  ▪
                    Indenture Trustee

                	
                  Indenture
                    Trustee

                
	
                  ▪
                    Any other 1108(a)(3) servicer

                	
                  Servicer

                
	
                  ▪
                    Any 1110 Originator

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any 1112(b) Significant Obligor

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any 1114 Credit Enhancement Provider

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any 1115 Derivate Counterparty Provider

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any other 1101(d)(1) material party

                	
                  Depositor/Sponsor

                
	
                  Whether
                    there are any specific relationships involving the transaction
                    or the pool
                    assets between (a) the Sponsor (Initial Seller) (Seller), Depositor
                    or
                    Issuing Entity on the one hand, and (b) any of the following
                    parties (or
                    their affiliates) on the other hand, that exist currently or
                    within the
                    past two years and that are material:

                	
                  Depositor
                    as to Depositor and Issuing Entity

                  Sponsor/Initial
                    Seller/Seller as to Sponsor/Initial Seller/Seller

                
	
                  ▪
                    Master Servicer

                	
                  Master
                    Servicer

                
	
                  ▪
                    Securities Administrator

                	
                  Securities
                    Administrator

                
	
                  ▪
                    Indenture Trustee

                	
                  Indenture
                    Trustee

                
	
                  ▪
                    Any other 1108(a)(3) servicer

                	
                  Servicer

                
	
                  ▪
                    Any 1110 Originator

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any 1112(b) Significant Obligor

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any 1114 Credit Enhancement Provider

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any 1115 Derivate Counterparty Provider

                	
                  Depositor/Sponsor

                
	
                  ▪
                    Any other 1101(d)(1) material party

                	
                  Depositor/Sponsor

                

        

        

        
          
            
              
              

            

            
              S-3

              
                

              

            

            
              
              

            

          

        

         

        EXHIBIT
          T

         

        ADDITIONAL
          FORM 8-K DISCLOSURE

         

        
          	
                  FORM
                    8-K DISCLOSURE INFORMATION

                
	
                  Item
                    on Form 8-K

                	
                  Party
                    Responsible

                
	
                  Item
                    1.01- Entry into a Material Definitive Agreement

                	
                  All
                    parties

                
	
                  Disclosure
                    is required regarding entry into or amendment of any definitive
                    agreement
                    that is material to the securitization, even if depositor is
                    not a
                    party.

                	 
	
                  Examples:
                    servicing agreement, custodial agreement.

                	 
	
                   

                  Note:
                    disclosure not required as to definitive agreements that are
                    fully
                    disclosed in the prospectus

                	 
	
                  Item
                    1.02- Termination of a Material Definitive
                    Agreement

                	
                  All
                    parties

                
	
                  Disclosure
                    is required regarding termination of any definitive agreement
                    that is
                    material to the securitization (other than expiration in accordance
                    with
                    its terms), even if depositor is not a party.

                	 
	
                  Examples:
                    servicing agreement, custodial agreement.

                	 
	
                  Item
                    1.03- Bankruptcy or Receivership

                	
                  Depositor

                
	
                  Disclosure
                    is required regarding the bankruptcy or receivership, with respect
                    to any
                    of the following:

                	 
	
                  ▪
                    Sponsor (Initial Seller) (Seller)

                	
                  Sponsor
                    (Initial Seller) (Seller)

                
	
                  ▪
                    Depositor

                	
                  Depositor

                
	
                  ▪
                    Master Servicer

                	
                  Master
                    Servicer

                
	
                  ▪
                    Affiliated Servicer

                	
                  Servicer

                
	
                  ▪
                    Other Servicer servicing 20% or more of the pool assets at the
                    time of the
                    report

                	
                  Servicer

                
	
                  ▪
                    Other material servicers

                	
                  Servicer

                
	
                  ▪
                    Indenture Trustee

                	
                  Indenture
                    Trustee

                
	
                  ▪
                    Securities Administrator

                	
                  Securities
                    Administrator

                

        

        

        
          
            
              
              

            

            
              T-1

              
                

              

            

            
              
              

            

          

        

        

        

        
          	
                  FORM
                    8-K DISCLOSURE INFORMATION

                
	
                  Item
                    on Form 8-K

                	
                  Party
                    Responsible

                
	
                  ▪
                    Significant Obligor

                	
                  Depositor

                
	
                  ▪
                    Credit Enhancer (10% or more)

                	
                  Depositor

                
	
                  ▪
                    Derivative Counterparty

                	
                  Depositor

                
	
                  ▪
                    Custodian

                	
                  Custodian

                
	
                  Item
                    2.04- Triggering Events that Accelerate or Increase a Direct
                    Financial
                    Obligation or an Obligation under an Off-Balance Sheet
                    Arrangement

                  Includes
                    an early amortization, performance trigger or other event, including
                    event
                    of default, that would materially alter the payment priority/distribution
                    of cash flows/amortization schedule.

                  Disclosure
                    will be made of events other than waterfall triggers which are
                    disclosed
                    in the Payment Date Statements to the noteholders.

                	
                  Depositor

                  Master
                    Servicer

                  Securities
                    Administrator

                
	
                  Item
                    3.03- Material Modification to Rights of Security
                    Holders

                  Disclosure
                    is required of any material modification to documents defining
                    the rights
                    of Certificateholders, including the Sale and Servicing
                    Agreement.

                	
                  Securities
                    Administrator

                  Depositor

                
	
                  Item
                    5.03- Amendments of Articles of Incorporation or Bylaws; Change
                    of Fiscal
                    Year

                  Disclosure
                    is required of any amendment “to the governing documents of the issuing
                    entity”.

                	
                  Depositor

                
	
                  Item
                    6.01- ABS Informational and Computational
                    Material

                	
                  Depositor

                
	
                  Item
                    6.02- Change of Servicer or Securities Administrator

                  Requires
                    disclosure of any removal, replacement, substitution or addition
                    of any
                    master servicer, affiliated servicer, other servicer servicing
                    10% or more
                    of pool assets at time of report, other material servicers or
                    trustee.

                	
                  Master
                    Servicer/Securities Administrator/Depositor/

                  Servicer/Indenture
                    Trustee (if change of the

                  Securities
                    Administrator)

                
	
                  Reg
                    AB disclosure about any new servicer or master servicer is also
                    required.

                	
                  Servicer/Master
                    Servicer/Depositor

                
	
                  Reg
                    AB disclosure about any new Indenture Trustee is also
                    required.

                	
                  Indenture
                    Trustee

                

        

        

        
          
            
              
              

            

            
              T-2

              
                

              

            

            
              
              

            

          

        

        

        

        
          	
                  FORM
                    8-K DISCLOSURE INFORMATION

                
	
                  Item
                    on Form 8-K

                	
                  Party
                    Responsible

                
	
                  Item
                    6.03- Change in Credit Enhancement or External
                    Support

                	
                  Depositor/Securities
                    Administrator

                
	
                  Covers
                    termination of any enhancement in manner other than by its terms,
                    the
                    addition of an enhancement, or a material change in the enhancement
                    provided. Applies to external credit enhancements as well as
                    derivatives.

                	 
	
                  Reg
                    AB disclosure about any new enhancement provider is also
                    required.

                	
                  Depositor

                
	
                  Item
                    6.04- Failure to Make a Required Distribution

                	
                  Securities
                    Administrator

                
	
                  Item
                    6.05- Securities Act Updating Disclosure

                	
                  Depositor

                
	
                  If
                    any material pool characteristic differs by 5% or more at the
                    time of
                    issuance of the securities from the description in the final
                    prospectus,
                    provide updated Reg AB disclosure about the actual asset
                    pool.

                	 
	
                  If
                    there are any new servicers or originators required to be disclosed
                    under
                    Regulation AB as a result of the foregoing, provide the information
                    called
                    for in Items 1108 and 1110 respectively.

                	
                  Depositor

                
	
                  Item
                    7.01- Reg FD Disclosure

                	
                  All
                    parties

                
	
                  Item
                    8.01- Other Events

                	
                  Depositor

                
	
                  Any
                    event, with respect to which information is not otherwise called
                    for in
                    Form 8-K, that the registrant deems of importance to
                    certificateholders.

                	 
	
                  Item
                    9.01- Financial Statements and Exhibits

                	
                  Responsible
                    party for reporting/disclosing the financial statement or
                    exhibit

                

        

        

        
          
            
              
              

            

            
              T-3

              
                

              

            

            
              
              

            

          

        

         

        EXHIBIT
          U

         

        FORM
          OF ADDITIONAL DISCLOSURE NOTIFICATION

         

        [     ]
          as Securities Administrator 

        [     ]

        Fax:
          [     ]

        E-mail:
          [     ]

        Attn:
          [     ]

        RE:
          Additional Form [  ] Disclosure Required

         

        Ladies
          and Gentlemen:

         

        In
          accordance with Section 3.19(a)(ii) of the Sale and Servicing Agreement
          dated as
          of [     ] [   ],
          [     ] by and among the Thornburg Mortgage Securities
          Corporation, as depositor, Thornburg Mortgage Home Loans, Inc., as initial
          seller, Thornburg Mortgage Funding, Inc., as seller,
          [     ], as master servicer and securities
          administrator, the [     ], as owner trustee and
          [     ], as indenture trustee and custodian, the
          undersigned, as [  ], hereby notifies you that certain events have
          come to our attention that [will][may] need to be disclosed on Form [10-D]
          [10-K] [8-K].

         

        
          	
                  Description
                    of Additional Form [10-D] [10-K] [8-K] Disclosure:

                
	 
	 
	 
	 
	 
	
                  List
                    of Any Attachments hereto to be included in the Additional Form
                    [  ] Disclosure:

                
	 
	 
	 

        

        

        Any
          inquiries related to this notification should be directed to [  ],
          phone number: [  ]; email address: [  ].

         

        
          	 	
                  [NAME
                    OF PARTY]

                  as
                    [role]

                   

                  
                     

                    By: ______________________________

                    
                      
                        Name:
                          
                          Title:

                        

                      

                    

                  

                   

                

        

         

        
          
            
              
              

            

            
              U-1Unassociated Document

    

      Form
        of Sale and Servicing Agreement for HELOC
        Transactions

    

     

    THORNBURG
      MORTGAGE SECURITIES TRUST [__] , as Issuer

    

    

    

    THORNBURG
      MORTGAGE SECURITIES CORPORATION,
      as
      Depositor

    

    

    

    

    [_________],
      as Master Servicer

    and
      

    

    

    [_________],
      as Indenture Trustee

    

    

    

    ___________________________

    

    

    SALE
      AND
      SERVICING AGREEMENT

    

    Dated
      as
      of [_____] [__], 20[__]

    

    

    ___________________________

    

    

    

    

    

    THORNBURG
      MORTGAGE SECURITIES TRUST [__] 

    HOME
      EQUITY LOAN ASSET BACKED NOTES, SERIES 20[__]-[__]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

     

    
      	 	 	Page
	 	 	 
	
              ARTICLE
                I

            
	
              DEFINITIONS

            
	 
	
              Section
                1.01

            	
              Definitions

            	
              2

            
	
              Section
                1.02

            	
              Calculations
                Respecting Mortgage Loans

            	
              29

            
	
              Section
                1.03

            	
              Calculations
                Respecting Accrued Interest

            	
              29

            
	 
	
              ARTICLE
                II

            
	
              CONVEYANCE
                OF MORTGAGE LOANS

            
	 
	
              Section
                2.01

            	
              Conveyance
                of Mortgage Loans; Retention of Obligation to Fund Advances Under
                Credit
                Line Agreements

            	
              29

            
	
              Section
                2.02

            	
              Acceptance
                of Trust Estate; Review of Documentation

            	
              33

            
	
              Section
                2.03

            	
              Grant
                Clause

            	
              34

            
	
              Section
                2.04

            	
              Further
                Encumbrance of Trust Property

            	
              36

            
	 
	
              ARTICLE
                III

            
	
              REPRESENTATIONS
                AND WARRANTIES

            
	 
	
              Section
                3.01

            	
              Representations
                and Warranties of the Depositor

            	
              37

            
	
              Section
                3.02

            	
              Representations
                and Warranties of the Master Servicer

            	
              39

            
	
              Section
                3.03

            	
              Discovery
                of Breach

            	
              41

            
	
              Section
                3.04

            	
              Repurchase,
                Purchase or Substitution of Mortgage Loans

            	
              42

            
	 
	
              ARTICLE
                IV

            
	
              ADMINISTRATION
                AND SERVICING OF MORTGAGE LOANS BY THE MASTER SERVICER

            
	 
	
              Section
                4.01

            	
              Duties
                of the Master Servicer

            	
              43

            
	
              Section
                4.02

            	
              Master
                Servicer Fidelity Bond and Master Servicer Errors and Omissions Insurance
                Policy

            	
              43

            
	
              Section
                4.03

            	
              Master
                Servicer’s Financial Statements and Related Information

            	
              44

            
	
              Section
                4.04

            	
              Power
                to Act; Procedures

            	
              44

            
	
              Section
                4.05

            	
              Enforcement
                of Servicer’s and Master Servicer’s Obligations

            	
              46

            
	
              Section
                4.06

            	
              Collection
                of Taxes, Assessments and Similar Items

            	
              46

            
	
              Section
                4.07

            	
              Collection
                Account

            	
              47

            
	
              Section
                4.08

            	
              Application
                of Funds in the Collection Account

            	
              49

            
	
              Section
                4.09

            	
              Reports
                of Indenture Trustee to Securityholders and the Insurer

            	
              50

            
	
              Section
                4.10

            	
              Termination
                of Servicing Agreements; Successor Servicers

            	
              54

            
	
              Section
                4.11

            	
              Master
                Servicer Liable for Enforcement

            	
              54

            
	
              Section
                4.12

            	
              No
                Contractual Relationship Between Any Servicer and Indenture Trustee
                or
                Depositor

            	
              55

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                4.13

            	
              Assumption
                of Servicing Agreement by Indenture Trustee

            	
              55

            
	
              Section
                4.14

            	
              “Due-on-Sale”
                Clauses; Assumption Agreements

            	
              55

            
	
              Section
                4.15

            	
              Release
                of Mortgage Files

            	
              56

            
	
              Section
                4.16

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

            	
              56

            
	
              Section
                4.17

            	
              Opinion

            	
              58

            
	
              Section
                4.18

            	
              Standard
                Hazard and Flood Insurance Policies

            	
              58

            
	
              Section
                4.19

            	
              Presentment
                of Claims and Collection of Proceeds

            	
              59

            
	
              Section
                4.20

            	
              [Reserved]

            	
              59

            
	
              Section
                4.21

            	
              [Reserved]

            	
              59

            
	
              Section
                4.22

            	
              Compensation
                to the Master Servicer

            	
              59

            
	
              Section
                4.23

            	
              REO
                Property

            	
              59

            
	
              Section
                4.24

            	
              [Reserved]

            	
              60

            
	
              Section
                4.25

            	
              Reports
                to the Indenture Trustee

            	
              60

            
	
              Section
                4.26

            	
              Annual
                Officer’s Certificate as to Compliance

            	
              60

            
	
              Section
                4.27

            	
              Annual
                Independent Accountants’ Servicing Report

            	
              61

            
	
              Section
                4.28

            	
              Merger
                or Consolidation

            	
              62

            
	
              Section
                4.29

            	
              Resignation
                of Master Servicer

            	
              62

            
	
              Section
                4.30

            	
              Assignment
                or Delegation of Duties by the Master Servicer

            	
              63

            
	
              Section
                4.31

            	
              Limitation
                on Liability of the Master Servicer and Others

            	
              63

            
	
              Section
                4.32

            	
              Indemnification;
                Third-Party Claims

            	
              64

            
	
              Section
                4.33

            	
              [Reserved]

            	
              64

            
	
              Section
                4.34

            	
              Alternative
                Index

            	
              64

            
	
              Section
                4.35

            	
              [Reserved]

            	
              64

            
	
              Section
                4.36

            	
              [Reserved]

            	
              65

            
	
              Section
                4.37

            	
              [Reserved]

            	
              65

            
	
              Section
                4.38

            	
              [Reserved]

            	
              65

            
	
              Section
                4.39

            	
              Transfer
                of Servicing

            	
              65

            
	 
	
              ARTICLE
                V

            
	
              DEPOSITS
                AND DISTRIBUTIONS TO HOLDERS

            
	 	 	 
	
              Section
                5.01

            	
              The
                Collection Account

            	
              66

            
	
              Section
                5.02

            	
              The
                Distribution Account

            	
              66

            
	
              Section
                5.03

            	
              Payments
                from the Distribution Account

            	
              68

            
	
              Section
                5.04

            	
              The
                Policy; the Policy Payment Account

            	
              69

            
	
              Section
                5.05

            	
              [Reserved]

            	
              70

            
	
              Section
                5.06

            	
              [Reserved]

            	
              70

            
	
              Section
                5.07

            	
              The
                Certificate Account

            	
              70

            
	
              Section
                5.08

            	
              Control
                of the Trust Accounts

            	
              70

            
	 	 	 
	
              ARTICLE
                VI

            
	
              EVENTS
                OF MASTER SERVICER TERMINATION

            
	 	 	 
	
              Section
                6.01

            	
              Events
                of Master Servicer Termination; Indenture Trustee To Act; Appointment
                of
                Successor

            	
              75

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                6.02

            	
              Additional
                Remedies of Indenture Trustee Upon Event of Master Servicer
                Termination

            	
              79

            
	
              Section
                6.03

            	
              Waiver
                of Defaults

            	
              79

            
	
              Section
                6.04

            	
              Notification
                to Holders

            	
              79

            
	
              Section
                6.05

            	
              Directions
                by Securityholders and Duties of Indenture Trustee During Event of
                Master
                Servicer Termination

            	
              80

            
	
              Section
                6.06

            	
              Action
                Upon Certain Failures of the Master Servicer and Upon Event of Master
                Servicer Termination

            	
              80

            
	
              Section
                6.07

            	
              Preparation
                of Reports

            	
              80

            
	
              Section
                6.08

            	
              Reporting
                Requirements of the Commission and Indemnification

            	
              82

            
	 
	
              ARTICLE
                VII

            
	
              RAPID
                AMORTIZATION EVENTS

            
	 
	
              Section
                7.01

            	
              Rapid
                Amortization Events

            	
              83

            
	 	 	 
	
              ARTICLE
                VIII

            
	
              TERMINATION

            
	 	 	 
	
              Section
                8.01

            	
              Termination

            	
              85

            
	
              Section
                8.02

            	
              Termination
                Prior to Maturity Date; and Optional Redemption

            	
              86

            
	
              Section
                8.03

            	
              [Reserved]

            	
              86

            
	
              Section
                8.04

            	
              Certain
                Notices upon Final Payment

            	
              86

            
	
              Section
                8.05

            	
              Beneficiaries

            	
              86

            
	 	 	 
	
              ARTICLE
                IX

            
	
              MISCELLANEOUS
                PROVISIONS

            
	 	 	 
	
              Section
                9.01

            	
              Binding
                Nature of Agreement; Assignment

            	
              87

            
	
              Section
                9.02

            	
              Entire
                Agreement

            	
              87

            
	
              Section
                9.03

            	
              Amendment

            	
              87

            
	
              Section
                9.04

            	
              Acts
                of Securityholders

            	
              88

            
	
              Section
                9.05

            	
              Recordation
                of Agreement

            	
              88

            
	
              Section
                9.06

            	
              Governing
                Law

            	
              88

            
	
              Section
                9.07

            	
              Notices

            	
              89

            
	
              Section
                9.08

            	
              Severability
                of Provisions

            	
              89

            
	
              Section
                9.09

            	
              Indulgences;
                No Waivers

            	
              89

            
	
              Section
                9.10

            	
              Headings
                Not To Affect Interpretation

            	
              89

            
	
              Section
                9.11

            	
              Benefits
                of Agreement

            	
              89

            
	
              Section
                9.12

            	
              Special
                Notices to the Rating Agencies

            	
              89

            
	
              Section
                9.13

            	
              Counterparts

            	
              90

            
	
              Section
                9.14

            	
              Execution
                by the Issuer

            	
              90

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    ATTACHMENTS

     

    
      	
              Exhibit
                A-1

            	
              Form
                of Initial Certification

            
	
              Exhibit
                A-2

            	
              Form
                of Interim Certification

            
	
              Exhibit
                A-3

            	
              Form
                of Final Certification

            
	
              Exhibit
                A-4

            	
              Form
                of Endorsement

            
	
              Exhibit
                B

            	
              Request
                for Release of Documents and Receipt

            
	
              Exhibit
                C

            	
              List
                of Servicing Agreements 

            
	
              Exhibit
                D

            	
              (Reserved)

            
	
              Exhibit
                E

            	
              (Reserved)

            
	
              Exhibit
                F

            	
              Custodial
                Agreement ([_________])

            
	
              Exhibit
                G

            	
              [Reserved]

            
	
              Exhibit
                H

            	
              [Reserved]

            
	
              Exhibit
                I

            	
              Form
                of Certification to be Provided by Indenture Trustee to the
                Depositor/Master Servicer

            
	 	 
	 	 
	
              Schedule
                A

            	
              Mortgage
                Loan Schedule

            
	
              Schedule
                B

            	
              [_________]
                Mortgage Loan Schedule

            
	
              Schedule
                C

            	
              [_________]
                Mortgage Loan Schedule

            

    

    

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    This
      SALE
      AND SERVICING AGREEMENT, dated as of [_____] [__], 20[__] (the “Agreement” or
      the “Sale and Servicing Agreement”), is by and among THORNBURG MORTGAGE
      SECURITIES TRUST [ ] , a Delaware statutory trust, as issuer (the “Issuer”),
      THORNBURG MORTGAGE SECURITIES CORPORATION, a Delaware corporation, as depositor
      (the “Depositor”), [_________], as Indenture Trustee (the “Indenture Trustee”)
      and [_________], as master servicer (the “Master Servicer”).

     

    PRELIMINARY
      STATEMENT

     

    WHEREAS,
      the Depositor has acquired the Mortgage Loans from Thornburg Mortgage Funding,
      Inc. (the “Seller”) pursuant to the Mortgage Loan Sale Agreement, and at the
      Closing Date is the owner of the Mortgage Loans and the other property being
      conveyed by it to the Issuer hereunder for inclusion in the Trust Estate.

     

    WHEREAS,
      such Mortgage Loans consist of certain home equity lines of credit;

     

    WHEREAS,
      on the Closing Date, the Depositor will acquire the Notes and the Residual
      Certificates from the Issuer, as consideration for its transfer to the Issuer
      of
      the Mortgage Loans and the other property constituting the Trust
      Estate;

     

    WHEREAS,
      the Depositor has duly authorized the execution and delivery of this Agreement
      to provide for the conveyance to the Issuer of the Mortgage Loans and the other
      property constituting the Trust Estate;

     

    WHEREAS,
      pursuant to the Indenture, the Issuer will pledge the Mortgage Loans and the
      other property constituting the Trust Estate to the Indenture Trustee as
      security for the Notes;

     

    NOW,
      THEREFORE, in consideration of the mutual agreements herein contained, the
      parties hereto agree as follows:

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    The
      following table sets forth the Class Designation, Note Rate, Original Note
      Principal Amount and minimum denomination for the Notes issued pursuant to
      the
      Indenture.

     

    
      	
              Class

              Designation

            	 	
              Note
                Rate

            	 	
              Original
                Note

              Principal
                Amount

            	 	
              Minimum

              Denominations

            
	
              Class
                A

            	 	
              (1)

            	 	
              $
                [_________]

            	 	
              $
                [______]

            

    

     

    _______________

    
      	
              (1)

            	
              The
                Note Rate with respect to any Payment Date (and the related Interest
                Accrual Period) for the Class A Notes is the per annum rate equal to
                the lesser of (i) LIBOR plus (a) [____]%,
                on or prior to the Optional Redemption Date and (b) [____]%,
                after the Optional Redemption Date; and (ii) the Maximum Rate for
                such
                Payment Date. 

            

    

     

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.01  Definitions. 
      The
      following words and phrases, unless the context otherwise requires, shall have
      the following meanings:

     

    Accelerated
      Principal Payment:
      With
      respect to any Payment Date a payment received as a payment of principal by
      the
      Noteholders, for the purpose of increasing the related Overcollateralization
      Amount, and to
      be paid
      from the Excess Cashflow, and equal to for any Payment Date the lesser of (x)
      the amount of the Excess Cashflow and (y) the Overcollateralization Deficiency
      Amount.

     

    Accepted
      Servicing Practices:
      As provided in each Servicing Agreement.

     

    Account:
      Any of the Collection Account or the Distribution Account, as
      applicable.

     

    Accountant:
      A person engaged in the practice
      of accounting that (except when this Agreement provides that an Accountant
      must
      be Independent) may be employed by or affiliated with the Depositor or an
      Affiliate of the Depositor.

     

    Additional
      Balance:
      With respect to the Mortgage Loans and any date of determination, the aggregate
      amount of all Draws conveyed to the Issuer with respect to such Mortgage Pool
      pursuant to Section 2.01 of this Agreement.

     

    Additional
      Balance Contributed Amount:
      The [_________] Additional Balance Contributed Amount and the [_________]
      Additional Balance Contributed Amount, as applicable. 

     

    Administration
      Agreement:
      The Administration Agreement dated as of [_____] [__], 20[__] among
      the Issuer, the Administrator and the Depositor, as such may be amended or
      supplemented from time to time.

     

    
      
        
        

      

      
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    Administrator:
      [_________],
      or any successor in interest thereto, in its capacity as Administrator under
      the
      Administration 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.

     

    Aggregate
      Expense Rate:
      With respect to any Mortgage Loan, the sum of the Servicing Fee Rate, the
      Indenture Trustee Fee Rate and the Owner Trustee Fee.

     

    Agreement:
      This Sale and Servicing Agreement and all amendments and supplements
      hereto.

     

    Anniversary
      Year:
      Means,
      the one-year period beginning on the Closing Date and ending on the first
      anniversary thereof, and each subsequent one-year period beginning on the day
      after the end of the preceding Anniversary Year and ending on the next
      succeeding anniversary of the Closing Date.

     

    Appraised
      Value:
      With respect to any Mortgage Loan, the amount set forth in an appraisal made
      in
      connection with the origination of such Mortgage
      Loan as the value of the related Mortgaged Property.

     

    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 assignment of the Mortgage
      to the Indenture Trustee for the benefit of Securityholders, which assignment,
      notice of transfer or equivalent instrument may be in the form of one or more
      blanket assignments covering the Mortgage Loans secured by Mortgaged Properties
      located in the same jurisdiction, if permitted by law; provided,
      however,
      that neither the Issuer nor the Indenture Trustee shall be responsible for
      determining whether any such assignment is in recordable form.

     

    Authorized
      Officer:
      Any Person who may execute
      an Officer’s Certificate on behalf of the Depositor.

     

    Available
      Funds:
      With respect to any Payment Date, the amount then on deposit in the Distribution
      Account, after taking into account the deposits thereto made pursuant to Section
      5.03(a) of this Agreement, if any (exclusive of the amount of any related
      Insured Amount or Preference Amount then on deposit in the Policy Payment
      Account or deposited into the Distribution Account in accordance with Section
      5.04 of this Agreement).

     

    Bankruptcy:
      As to any Person, the making of an assignment for the benefit of creditors,
      the
      filing of a voluntary petition in bankruptcy, adjudication as a bankrupt or
      insolvent, the entry of an order for relief in a bankruptcy or insolvency
      proceeding, the seeking of reorganization, arrangement, composition,
      readjustment, liquidation, dissolution or similar relief, or seeking, consenting
      to or acquiescing in the appointment of a trustee, receiver or liquidator,
      dissolution, or termination, as the case may be, of such Person pursuant to
      the
      provisions of either the United States Bankruptcy Code of 1986, as amended,
      or
      any other similar state laws.

     

    
      
        
        

      

      
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    Bankruptcy
      Code:
      The United States Bankruptcy Code of 1986, as amended.

     

    Benefit
      Plan Opinion:
      An Opinion of Counsel satisfactory to the Trustee to the effect that any
      proposed transfer of Certificates will not (i) cause the assets
      of the trust fund to be regarded as plan assets for purposes of the Plan Asset
      Regulations or (ii) give rise to any fiduciary duty on the part of the Depositor
      or the Trustee.

     

    Book-Entry
      Notes:
      A
      beneficial interest in the Notes, ownership and transfers of which shall be
      made
      through book entries by a Clearing Agency as described in Section [___] of
      the
      Indenture.

     

    Business
      Day:
      Any day other than (i) a Saturday or a Sunday, (ii) a day on which banking
      institutions in New York, New York or, if other than New York, the city in
      which
      the Corporate Trust Office of the Indenture Trustee is located, or the States
      of
      New York, Delaware, [_________] or [_________] are authorized
      or obligated by law or executive order to be closed, or (iii) with respect
      to any Servicer Remittance Date or any Servicer reporting date, the States
      specified in the definition of “Business Day” in the related Servicing
      Agreement, are authorized
      or obligated by law or executive order to be closed.

     

    [_________]
      Additional Balance Contributed Amount:
      As to any Payment Date and during the Managed Amortization Period, the
      difference, if any, between (a) the aggregate excess, if any, for all prior
      Payment Dates of (i) the aggregate principal amount of all Additional Balances
      in respect of the [_________] Mortgage Loans created during the Collection
      Period relating to each such Payment Date over (ii) Principal Collections in
      respect to the [_________] Mortgage Loans relating to such Payment Date, and
      (b)
      the aggregate [_________] Additional Balance Contributed Amounts paid to
      [_________] on all prior Payment Dates pursuant to Section 5.03(b)(iii) of
      this
      Agreement. During the Rapid Amortization Period, zero.

     

    [_________]
      Mortgage Loans:
      The Mortgage Loans originated by [_________] as identified on Schedule B
      attached hereto.

     

    Certificate
      Account:
      The
      account maintained by the Administrator pursuant to Section 5.07 of this
      Agreement.

     

    Certificate
      of Trust:
      The
      certificate of trust of the Issuer substantially in the form of Exhibit C to
      the
      Trust Agreement.

     

    Certificateholder:
      As
      defined in the Trust Agreement.

     

    Charge-Off
      Amount:
      With
      respect to any Charged-Off HELOC is the amount of the principal balance that
      has
      been written down.

     

    
      
        
        

      

      
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    Charged-Off
      HELOC:
      Means
      (i) a Mortgage Loan with a Principal Balance that has been written down on
      the
      related Servicer’s servicing system in accordance with its policies and
      procedures and (ii) any Mortgage Loan that is more than 180 days past
      due.

     

    Class:
      All Notes bearing the same class designation.

     

    Class
      B Certificate:
      A Residual Certificate, in the form attached to the Indenture as Exhibit
      A.

     

    Class
      L Certificate:
      A Residual Certificate, in the form attached to the Indenture as Exhibit
      A.

     

    Class
      Principal Balance:
      With
      respect to the Class L Certificates and any Payment Date during the Managed
      Amortization Period, zero. With respect to the Class L Certificates and any
      Payment Date during the Rapid Amortization Period, the sum of the Additional
      Balance Contributed Amount at the commencement of the Rapid Amortization Period
      for such Payment Date and the aggregate amount of Draws conveyed to the Issuer
      during the Rapid Amortization Period, less the aggregate Realized Loss Allocated
      Amount for all prior Payment Dates and, after the Notes are paid in full,
      distributions to such class pursuant to Section [___] of the Trust Agreement
      representing principal payments on the Mortgage Loans.

     

    With
      respect to the Class B Certificates and any Payment Date, an amount equal to
      the
      excess of the Pool Balance on the last day of the related Collection Period
      (after taking into account all Interest Collections and Principal Collections
      for such Payment Date) over the sum of the aggregate Note Principal Amount
      of
      the Notes and the Class Principal Balance of the Class L Certificates, in
      each case immediately prior to such Payment Date.

     

    Closing
      Date:
      [_____]
      [__], 20[__].

     

    Code:
      The Internal Revenue Code of 1986, as amended, and as it may be further amended
      from time to time, any successor
      statutes thereto, and applicable U.S. Department of Treasury regulations issued
      pursuant thereto in temporary or final form.

     

    Collateral:
      As defined in the Granting Clause of the Indenture.

     

    Collection
      Account:
      A
      separate account established and maintained by the Master Servicer pursuant
      to
      Section 4.07.

     

    Collection
      Period:
      With respect to any Payment Date and Mortgage Loan, the calendar month
      immediately preceding such Payment Date.

     

    Combined
      Loan-to-Value Ratio:
      With respect to any Mortgage Loan as of any date, the percentage equivalent
      of a
      fraction, the numerator of which is the sum of (A) the Credit Limit and (B)
      the
      outstanding Principal Balance as of the date of application for the related
      credit line (or as of any subsequent date, if any, as of which such outstanding
      principal balance may be determined in connection with an increase in the Credit
      Limit for such Mortgage Loan) of any mortgage loan or mortgage loans that are
      senior in priority to the Mortgage Loan and which are secured by the same
      Mortgaged Property and the denominator of which is (C) the Appraised Value
      of
      the related Mortgaged Property as set forth in the Mortgage File as of the
      date
      of the appraisal or on such subsequent date, if any, or (D) in the case of
      a
      Mortgaged Property purchased within one year of the date of execution of the
      related Credit Line Agreement, the lesser of (x) the Appraised Value of the
      related Mortgaged Property as set forth in the loan files as of the date of
      the
      appraisal and (y) the purchase price of such Mortgaged Property.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Control:
      The meaning specified in Section 8-106 of the New York UCC.

     

    Controlling
      Party:
      The Insurer, so long as no Insurer Default shall have occurred and be
      continuing, and the Majority Securityholders, for so long as an Insurer Default
      shall have occurred and is continuing.

     

    Corporate
      Trust Office:
      The
      principal corporate trust office of the Indenture Trustee at which, at any
      particular time, its corporate trust business shall be administered, which
      office at the date hereof is located at [_________],
      Attention: [__________].

     

    Credit
      Limit:
      As to
      any Mortgage Loan, the maximum principal balance permitted under the terms
      of
      the related Credit Line Agreement.

     

    Credit
      Limit Utilization Rate:
      As to
      any Mortgage Loan, the percentage equivalent of a fraction the numerator of
      which is the Principal Balance of such Mortgage Loan as of the Cut-Off Date
      and
      the denominator of which is the related Credit Limit.

     

    Credit
      Line Agreement:
      With
      respect to any Mortgage Loan, the related home equity line of credit agreement
      and promissory note executed by the related Mortgagor and any amendment or
      modification thereof.

     

    Credit
      Scores:
      With
      respect to the Mortgage Loans, statistical credit scores obtained by mortgage
      lenders in connection with the loan application to help assess a borrower’s
      creditworthiness.

     

    Custodial
      Account:
      Any
      custodial account (other than an Escrow Account) established and maintained
      by a
      Servicer pursuant to a Servicing Agreement.

     

    Custodial
      Agreement:
      Each
      custodial agreement attached as Exhibit F hereto, and any custodial agreement
      subsequently executed by the Indenture Trustee and acknowledged by the Master
      Servicer substantially in the form thereof.

     

    Custodian:
      Each
      custodian appointed by the Indenture Trustee pursuant to a Custodial Agreement,
      and any successor thereto. The initial Custodian is [_________].

     

    Cut-off
      Date:
      Close
      of business on [_____] [__], 20[__].

     

    Cut-off
      Date Pool Balance:
      With
      respect to the Mortgage Loans, the Pool Balance as of the Cut-off
      Date.

     

    
      
        
        

      

      
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    Default:
      Any
      occurrence that is, or with notice or the lapse of time or both would become,
      a
      Rapid Amortization Event.

     

    Deferred
      Interest:
      With
      respect to the Notes and any Payment Date, the excess, if any, of interest
      due
      at the Formula Note Rate over interest due at the Note Rate.

     

    Definitive
      Notes:
      As
      defined in Section [___] of the Indenture.

     

    Deleted
      Mortgage Loan:
      A
      Mortgage Loan that is repurchased from the Trust Estate pursuant to the terms
      hereof or as to which one or more Qualifying Substitute Mortgage Loans are
      substituted therefor.

     

    Delinquent:
      A
      Mortgage Loan is “delinquent” if any payment due thereon is not made by the
      close of business on the day such payment is scheduled to be due. A Mortgage
      Loan is “30 days delinquent” if such payment has not been received by the close
      of business on the corresponding day of the month immediately succeeding the
      month in which such payment was due, or, if there is no such corresponding
      day
      (e.g., as when a 30-day month follows a 31-day month in which a payment was
      due
      on the 31st day of such month) then on the last day of such immediately
      succeeding month. Similarly for “60 days delinquent,” “90 days delinquent” and
      so on.

     

    Deposit
      Date:
      With
      respect to each Payment Date, the Business Day immediately preceding such
      Payment Date.

     

    Depositor:
      Thornburg Mortgage Securities Corporation, a Delaware corporation having its
      principal place of business in New York, or its successors in
      interest.

     

    Determination
      Date:
      With
      respect to any Payment Date, the fourth Business Day prior to such Payment
      Date
      or such earlier day as shall be designated by the Insurer and the Indenture
      Trustee.

     

    Distribution
      Account:
      That
      account designated as the “Distribution Account” and established pursuant to
      Section 5.02 of this Agreement.

     

    Draw:
      With
      respect to any Mortgage Loan, an additional borrowing by the Mortgagor
      subsequent to the Cut-Off Date in accordance with the related Credit Line
      Agreement.

     

    Draw
      Period:
      With
      respect to any Mortgage Loan, the period of time specified in the related Credit
      Line Agreement whereby a Mortgagor may make a Draw under the related Credit
      Line
      Agreement, not to exceed five, ten or fifteen years (as applicable) unless
      extended pursuant to such Credit Line Agreement and the Sale and Servicing
      Agreement, such extension to be limited by the provisions of the related
      Transfer Agreement.

     

    Due
      Date:
      With
      respect to any Mortgage Loan, the date on which principal and/or interest is
      due
      under the related Credit Line Agreement.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Eligible
      Account:
      Either
      (i) an account or accounts maintained with a federal or state chartered
      depository institution or trust company acceptable to the Rating Agencies and
      the Insurer or (ii) an account or accounts the deposits in which are insured
      by
      the FDIC to the limits established by such corporation, provided that any such
      deposits not so insured shall be maintained in an account at a depository
      institution or trust company whose commercial paper or other short term debt
      obligations (or, in the case of a depository institution or trust company which
      is the principal subsidiary of a holding company, the commercial paper or other
      short term debt or deposit obligations of such holding company or depository
      institution, as the case may be) have been rated by each Rating Agency in its
      highest short-term rating category, or (iii) a segregated Trust account or
      accounts (which shall be a “special deposit account”) maintained with the
      Indenture Trustee or any other federal or state chartered depository institution
      or trust company, acting in its fiduciary capacity, in a manner acceptable
      to
      the Indenture Trustee, the Insurer and the Rating Agencies. Eligible Accounts
      may bear interest.

     

    Eligible
      Investments:
      Any one
      or more of the following obligations or securities:

     

    (i)
       direct
      obligations of, and obligations fully guaranteed as to timely payment of
      principal and interest by, the United States of America or any agency or
      instrumentality of the United States of America the obligations of which are
      backed by the full faith and credit of the United States of America (“Direct
      Obligations”);

     

    (ii)
       federal
      funds, or demand and time deposits in, certificates of deposits of, or bankers’
acceptances issued by, any depository institution or trust company (including
      U.S. subsidiaries of foreign depositories and the Indenture Trustee or any
      agent
      of the Indenture Trustee, acting in its respective commercial capacity)
      incorporated or organized under the laws of the United States of America or
      any
      state thereof and subject to supervision and examination by federal or state
      banking authorities, so long as at the time of investment or the contractual
      commitment providing for such investment the commercial paper or other
      short-term debt obligations of such depository institution or trust company
      (or,
      in the case of a depository institution or trust company which is the principal
      subsidiary of a holding company, the commercial paper or other short-term debt
      or deposit obligations of such holding company or deposit institution, as the
      case may be) have been rated by each Rating Agency in its highest short-term
      rating category or one of its two highest long-term rating
      categories;

     

    (iii)
       repurchase
      agreements collateralized by Direct Obligations or securities guaranteed by
      GNMA, Fannie Mae or FHLMC with any registered broker/dealer subject to
      Securities Investors’ Protection Corporation jurisdiction or any commercial bank
      insured by the FDIC, if such broker/dealer or bank has an uninsured, unsecured
      and unguaranteed obligation rated by each Rating Agency in its highest
      short-term rating category;

     

    (iv)
       securities
      bearing interest or sold at a discount issued by any corporation incorporated
      under the laws of the United States of America or any state thereof which have
      a
      credit rating from each Rating Agency, at the time of investment or the
      contractual commitment providing for such investment, at least equal to one
      of
      the two highest long-term credit rating categories of each Rating Agency;
provided,
      however,
      that
      securities issued by any particular corporation will not be Eligible Investments
      to the extent that investment therein will cause the then outstanding principal
      amount of securities issued by such corporation and held as part of the Trust
      Estate to exceed [____]% of the sum of the Pool Balance and the aggregate
      principal amount of all Eligible Investments in the Distribution Account;
provided,
      further,
      that
      such securities will not be Eligible Investments if they are published as being
      under review with negative implications from any Rating Agency;

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (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 180 days after the date of issuance thereof) rated by each Rating Agency
      in
      its highest short-term rating category;

     

    (vi)
       a
      Qualified GIC;

     

    (vii)
       certificates
      or receipts representing direct ownership interests in future interest or
      principal payments on obligations of the United States of America or its
      agencies or instrumentalities (which obligations are backed by the full faith
      and credit of the United States of America) held by a custodian in safekeeping
      on behalf of the holders of such receipts; and

     

    (viii)
       any
      other
      demand, money market, common trust
      fund
      or time
      deposit or obligation, or interest-bearing or other security or investment
      (including those managed or advised by the Indenture Trustee or any Affiliate
      thereof), (A) rated in the highest rating category by each Rating Agency or
      (B)
      that would not adversely affect the then current rating assigned by each Rating
      Agency of any of the Notes without regard to the Policy. Such investments in
      this subsection (viii) may include money market mutual funds or common Trust
      Estates, including any fund for which [_________] (the “Bank”) in its capacity
      other than as Indenture Trustee, the Master Servicer or an affiliate thereof
      serves as an investment advisor, administrator, shareholder servicing agent,
      and/or custodian or subcustodian, notwithstanding that (x) the Bank, the
      Indenture Trustee, the Master Servicer or any affiliate thereof charges and
      collects fees and expenses from such funds for services rendered, (y) the Bank,
      the Indenture Trustee, the Master Servicer or any affiliate thereof charges
      and
      collects fees and expenses for services rendered pursuant to this Agreement,
      and
      (z) services performed for such funds and pursuant to this Agreement may
      converge at any time. The Indenture Trustee specifically authorizes the Bank
      or
      an affiliate thereof to charge and collect from the Indenture Trustee such
      fees
      as are collected from all investors in such funds for services rendered to
      such
      funds (but not to exceed investment earnings thereon);

     

    provided,
      however,
      that no such instrument shall be an Eligible Investment if such instrument
      evidences either (i) a right to receive only interest payments with respect
      to
      the obligations underlying such instrument, or (ii) both principal and interest
      payments derived from obligations underlying such instrument and the principal
      and interest payments with respect to such instrument provide a yield to
      maturity of greater than [____]%
      of the yield to maturity at par of such underlying obligations, provided that
      any such investment will be a “permitted investment” within the meaning of
      Section 860G(a)(5) of the Code.

     

    
      
        
        

      

      
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    Entitlement
      Order:
      The
      meaning specified in Section 8-102(a)(8) of the New York UCC (i.e.,
      generally, orders directing the transfer or redemption of any Financial
      Asset).

     

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

     

    Errors
      and Omission Insurance Policy:
      Any
      errors or omission insurance policy required to be obtained by each Servicer
      satisfying the requirements of the related Servicing Agreement.

     

    Escrow
      Account:
      Any
      account with respect to tax and insurance escrow payments established and
      maintained by each Servicer pursuant to the related Servicing
      Agreement.

     

    Event
      of Master Servicer Termination:
      Any one
      of the conditions or circumstances enumerated in Section 6.01(a).

     

    Excess
      Cashflow:
      With
      respect to any Payment Date, the Available Funds for such Payment Date which
      remain on deposit in the Distribution Account after taking into account the
      distributions listed in clauses (i) through (v) of Section 5.03(b) of this
      Agreement on such Payment Date.

     

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

     

    Fannie
      Mae:
      Federal
      National Mortgage Association, a federally chartered and privately owned
      corporation organized and existing under the Federal National Mortgage
      Association Charter Act, or any successor thereto.

     

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

     

    FHLMC:
      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.

     

    Fidelity
      Bond:
      Any
      fidelity bond required to be obtained by each Servicer satisfying the
      requirements of the related Servicing Agreement.

     

    Final
      Certification:
      The
      certification, in the form attached hereto as Exhibit A-3.

     

    Final
      Scheduled Payment Date:
      The
      Payment Date in [_________] 20[__], whereby the Noteholders shall be entitled
      to
      receive a payment of principal in an amount equal to the Note Principal Amount
      and any accrued and unpaid interest thereon. 

     

    Financial
      Asset:
      The
      meaning specified in Section 8-102(a) of the New York UCC.

     

    Fitch:
      Fitch,
      Inc. or any successor in interest.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Formula
      Note Rate:
      With
      respect to the Notes and an Interest Accrual Period, is the per annum rate
      equal
      to the lesser of (i) LIBOR plus (a) [____]%, on or prior to the Optional
      Redemption Date and (b) [____]%, after the Optional Redemption Date; and (ii)
      the Maximum Rate for such Payment Date.

     

    GAAP:
      Generally accepted accounting principles, consistently applied.

     

    Grant:
      Mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey,
      assign, transfer, create, grant a lien upon and a security interest in and
      right
      of set off against, deposit, set over and confirm pursuant to the Indenture.
      A
      Grant of the Collateral or of any other agreement or instrument shall include
      all rights, powers and options (but none of the obligations) of the granting
      party thereunder, including the immediate and continuing right to claim for,
      collect, receive and give receipt for principal and interest payments in respect
      of the Collateral and all other monies payable thereunder, to give and receive
      notices and other communications, to make waivers or other agreements, to
      exercise all rights and options, to bring proceedings in the name of the
      granting party or otherwise and generally to do and receive anything that the
      granting party is or may be entitled to do or receive thereunder or with respect
      thereto.

     

    [_________]:[_________],
      or any successor thereto.

     

    [_________]
      Additional Balance Contributed Amount:
      As to any Payment Date and during the Managed Amortization Period, the
      difference, if any, between (a) the aggregate excess, if any, for all prior
      Payment Dates of (i) the aggregate principal amount of all Additional Balances
      in respect of the [_________] Mortgage Loans created during the Collection
      Period relating to each such Payment Date over (ii) Principal Collections in
      respect of the [_________] Mortgage Loans relating to such Payment Date, and
      (b)
      the aggregate [_________] Additional Balance Contributed Amounts paid to
      [_________] on all prior Payment Dates pursuant to Section 5.03(b)(iii) of
      this
      Agreement. During the Rapid Amortization Period, zero.

     

    [_________]:[_________],
      or any
      successor in interest thereto.

     

    [_________]
      Mortgage Loans:
      The Mortgage Loans originated by [_________] as identified on Schedule C
      hereto.

     

    Gross
      Margin:
      As to
      any Mortgage Loans, the percentage set forth as the “Gross Margin” for such
      Mortgage Loans on Exhibit A to this Agreement.

     

    GNMA:
      The
      Government National Mortgage Association, a wholly owned corporate
      instrumentality of the United States within HUD.

     

    Holder
      or
Securityholder:
      The
      registered holder of any Note or Residual Certificates as recorded on the books
      of the Note Registrar or the Certificate Registrar except that, solely for
      the
      purposes of taking any action or giving any consent pursuant to this Agreement,
      any Note or Residual Certificates registered in the name of the Depositor,
      the
      Master Servicer or the Indenture Trustee or any Affiliate thereof shall be
      deemed not to be outstanding in determining whether the requisite percentage
      necessary to effect any such consent has been obtained, except that, in
      determining whether the Indenture Trustee shall be protected in relying upon
      any
      such consent, only Notes and an Residual Certificates which a Responsible
      Officer of the Indenture Trustee knows to be so held shall be disregarded.
      The
      Indenture Trustee may request and conclusively rely on certifications by the
      Depositor
      in
      determining whether any Notes or the Residual Certificates are registered to
      an
      Affiliate of the Depositor.
      [Any
      Notes on which payments are made under the Policy shall be deemed to be
      outstanding and held by the Issuer to the extent of such payment.]

     

    
      
        
        

      

      
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    HUD:
      The
      United States Department of Housing and Urban Development, or any successor
      thereto.

     

    Indenture:
      The
      Indenture dated as of [_____] [__], 20[__], between the Issuer and the Indenture
      Trustee, as such may be amended or supplemented from time to time.

     

    Indenture
      Trustee:
      [_________], not in its individual capacity but solely as Indenture Trustee,
      or
      any successor in interest.

     

    Indenture
      Trustee Expense Amount:
      Means,
      any costs, expenses or liabilities reimbursable to the Indenture Trustee to
      the
      extent provided in the Indenture; provided, however, such reimbursable amounts
      may not exceed $[_________]
      on
      any
      Payment Date or $[_________]
      during
      any Anniversary Year. In the event that the Indenture Trustee incurs
      reimbursable amounts in excess of $[_________],
      it may
      seek reimbursement for such amounts in subsequent Anniversary Years, but in
      no
      event shall more than $[_________]
      be
      reimbursed to the Indenture Trustee per Anniversary Year. 

     

    Indenture
      Trustee Fee:
      With
      respect to each Payment Date and each Mortgage Loan, the product of the
      Indenture Trustee Fee Rate and the Principal Balance of such Mortgage Loan
      as of
      the opening of business on the first day of the related Collection Period (or,
      in the case of the first Payment Date, as of the Cut-off Date).

     

    Indenture
      Trustee Fee Rate:
      [____]%
      per annum.

     

    Indenture
      Trustee Issuer Secured Obligations:
      All
      amounts and obligations which the Issuer may at any time owe to the Indenture
      Trustee for the benefit of the Noteholders under the Indenture or the
      Notes.

     

    Independent:
      When
      used with respect to any Accountants, a Person who is “independent” within the
      meaning of Rule 2-01(b) of the Securities and Exchange Commission’s Regulation
      S-X. When used with respect to any other Person, a Person who (a) is in fact
      independent of another specified Person and any Affiliate of such other Person,
      (b) does not have any material direct financial interest in such other Person
      or
      any Affiliate of such other Person, and (c) is not connected with such other
      Person or any Affiliate of such other Person as an officer, employee, promoter,
      underwriter, trustee, partner, director or Person performing similar
      functions.

     

    Index:
      The
      index specified in the related Credit Line Agreement for calculation of the
      Loan
      Rate thereof.

     

    Initial
      Certification:
      The
      certification in the form attached hereto as Exhibit A-1.

     

    
      
        
        

      

      
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    Initial
      Holder:
      [_________]

     

    Initial
      LIBOR Rate:
      [____]%.

     

    Initial
      Pool Balance:
      $[_________].

     

    Insurance
      Agreement:
      The
      Insurance Agreement, dated as of [_____] [__], 20[__], by and among the Insurer,
      the Servicers, the Master Servicer, the Seller, the Depositor, the Issuer and
      the Indenture Trustee.

     

    Insurance
      Policy:
      Any
      hazard or title insurance relating to a Mortgage Loan, but shall not include
      the
      Policy.

     

    Insurance
      Proceeds:
      Proceeds paid by any insurer (other than the Insurer) pursuant to any Insurance
      Policy covering a Mortgage Loan, or amounts required to be paid by a Servicer
      pursuant to the related Servicing Agreement, net of any component thereof
      specified in the related Servicing Agreement.

     

    Insured
      Amount:
      As
      defined in the Policy with respect to the Notes and as of any Payment
      Date

     

    Insured
      Payment:
      As
      defined in the Policy with respect to the Notes.

     

    Insurer:
      [_______], or any successor thereto.

     

    Insurer
      Default:
      Any of
      (i) the failure by the Insurer to make a payment required under the Policy
      in
      accordance with the terms thereof, (ii) the voluntary or involuntary filing
      of a
      petition or other invocation of the process of any court or government authority
      for the purpose of commencing or sustaining a case under any federal or state
      bankruptcy, insolvency or similar law against the Insurer or (iii) the
      appointing of a receiver, liquidator, assignee, trustee, custodian, sequestrator
      or other similar official of the Insurer or any substantial part of its
      property, or ordering the winding up or liquidation of the affairs of the
      Insurer.

     

    Insurer
      Issuer Secured Obligations:
      All
      amounts and obligations which the Issuer may at any time owe to or on behalf
      of
      the Insurer under the Indenture, the Insurance Agreement or any other Operative
      Agreement.

     

    Interest
      Accrual Period:
      With
      respect to any Payment Date and the Notes, the period from and including the
      prior Payment Date (or, in the case of the first Payment Date, from and
      including the Closing Date) to, but excluding, the current Payment Date, with
      interest being computed on the basis of the actual number of days in such
      Interest Accrual Period and a 360-day year.

     

    Interest
      Collections:
      With
      respect to any Payment Date, the sum of (a) all payments by or on behalf of
      Mortgagors and any other amounts constituting interest, including the portion
      of
      Net Liquidation Proceeds and Insurance Proceeds allocated to interest pursuant
      to the terms of the related Credit Line Agreement (excluding the fees or late
      charges or similar administrative fees paid by Mortgagors), less the related
      Servicing Fee for the related Collection Period and (b) the interest portion
      of
      (i) the Loan Purchase Price for any Mortgage Loan repurchased by the Seller
      or
      an Originator during the related Collection Period, (ii) any Substitute Amount
      in respect of any Qualifying Substitute Mortgage Loan which is substituted
      by
      the Seller or an Originator during the related Collection Period for a Deleted
      Mortgage Loan and (iii) the Redemption Price in connection with any optional
      redemption of the Notes during the related Collection Period. The terms of
      the
      related Credit Line Agreement shall determine the portion of each payment in
      respect of such Mortgage Loan that constitutes principal or
      interest.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    Interest
      Payment Amount:
      With
      respect to the Notes and any Payment Date, (x) the Note Rate applicable to
      such
      Payment Date multiplied by (y) the Outstanding Amount immediately prior to
      such
      Payment Date multiplied by (z) a fraction, the numerator of which is the actual
      number of days in the related Interest Accrual Period and the denominator of
      which is 360.

     

    Interim
      Certification:
      The
      certification, in the form attached hereto as Exhibit A-2.

     

    Intervening
      Assignments:
      The
      original intervening assignments of the Mortgage, notices of transfer or
      equivalent instrument.

     

    Issuer:
      The
      Delaware statutory trust known as the “Thornburg Mortgage Securities Trust [ ]
      .”

     

    Issuer
      Secured Obligations:
      The
      Insurer Issuer Secured Obligations and the Indenture Trustee Issuer Secured
      Obligations.

     

    Late
      Payment Rate:
      For any
      Payment Date, the lesser of (a) the greater of (i) the rate of interest, as
      it
      is publicly announced by [__________] at its principal office in [________],
      [__________], as its prime rate (any change in such prime rate of interest
      to be
      effective on the date such change is announced by [__________]), plus [____]%
      per annum and (ii) the then applicable highest rate of interest on the Notes
      and
      (b) the maximum rate permissible under applicable usury or similar laws limiting
      interest rates. The Late Payment Rate shall be computed on the basis of the
      actual number of days elapsed over a year of 360 days.

     

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

     

    (a) If
      on
      such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not
      appear on the Telerate Page 3750 as of 11:00 a.m. (London time), or if the
      Telerate Page 3750 is not available on such date, the Indenture Trustee will
      obtain such rate from Reuters’ “page LIBOR 01” or Bloomberg’s page “BBAM”. If
      such rate is not published for such LIBOR Determination Date, LIBOR for such
      date will be the most recently published Interest Settlement Rate. In the event
      that the BBA no longer sets an Interest Settlement Rate, the Indenture Trustee
      will designate an alternative index, which is acceptable to the Insurer, that
      has performed, or that the Indenture Trustee expects to perform, in a manner
      substantially similar to the BBA’s Interest Settlement Rate. 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (b) The
      establishment of LIBOR by the Indenture Trustee and the Indenture Trustee’s
      subsequent calculation of the Note Rate for the relevant Interest Accrual
      Period, in the absence of manifest error, will be final and
      binding.

     

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

     

    LIBOR
      Determination Date:
      The
      second LIBOR Business Day immediately preceding the commencement of each
      Interest Accrual Period for the Notes.

     

    Liquidated
      Mortgage Loan:
      Any
      defaulted Mortgage Loan as to which the Master Servicer or the applicable
      Servicer has determined that all amounts that it expects to recover from or
      on
      account of such Mortgage Loan have been recovered.

     

    Liquidation
      Expenses:
      Expenses that are incurred by the Master Servicer or a Servicer in connection
      with the liquidation of any defaulted Mortgage Loan and are not recoverable
      under the applicable primary mortgage insurance policy, if any, including,
      without limitation, foreclosure and rehabilitation expenses, legal expenses
      and
      unreimbursed amounts, if any, expended pursuant to Sections 4.06, 4.18 or
      4.23.

     

    Liquidation
      Loss Amounts:
      With
      respect to any Payment Date and Mortgage Loan that became a Liquidated Mortgage
      Loan during the related Collection Period, the unrecovered portion of the
      related Principal Balance thereof at the end of such Collection Period, after
      giving effect to the Net Liquidation Proceeds applied in reduction of such
      Principal Balance.

     

    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, payment in full, discounted payoff or otherwise, or the sale
      of the related Mortgaged Property if the Mortgaged Property is acquired in
      satisfaction of the Mortgage Loan, including any amounts remaining in the
      related Escrow Account.

     

    Loan
      Purchase Price:
      With
      respect to any Mortgage Loan purchased from the Issuer pursuant to the Sale
      and
      Servicing Agreement or a Servicing Agreement, an amount equal to the sum of
      (i)
      the product of (A) [____]% and (B) the Principal Balance of such Mortgage Loan
      as of the date of purchase, (ii) one month’s interest on the outstanding
      Principal Balance of such Mortgage Loan as of the beginning of the preceding
      Collection Period computed at the related Loan Rate less, if such Mortgage
      Loan
      is being purchased from the Issuer by the related Servicer, the Servicing Fee
      Rate, (iii) any costs and damages incurred by the Issuer in connection with
      any
      violation by such Mortgage Loan of any predatory or abusive lending law and
      (iv)
      without duplication, the aggregate amount of all delinquent interest, all
      advances made by the related Servicer and not subsequently recovered from the
      related Mortgage Loan and any Reimbursement Amount related to such Mortgage
      Loan.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Loan
      Rate:
      With
      respect to any Mortgage Loan and as of any day, the per annum rate of interest
      applicable under the related Credit Line Agreement to the calculation of
      interest for such day on the Principal Balance of such Mortgage Loan.

     

    Majority
      Securityholders:
      In the
      case that an Insurer Default shall have occurred and is continuing, and until
      such time as the sum of the Note Principal Amounts of the Notes has been reduced
      to zero, the holder or holders of in excess of 50% of the aggregate Note
      Principal Amount (accordingly, the holder of the Residual Certificates shall
      be
      excluded from any rights or actions of the Majority Securityholders during
      such
      period); and thereafter, the holder of the Residual Certificates.

     

    Managed
      Amortization Period:
      With
      respect to the Notes, the period commencing on the first Payment Date and ending
      on the earlier to occur of (x) the 180th
      Payment
      Date and (y) the first Payment Date following the occurrence of a Rapid
      Amortization Event with respect to the Notes.

     

    Margin:
      With
      respect to each Mortgage Loan, the fixed percentage amount set forth in the
      related Credit Line Agreement which amount is added to the Prime Rate in
      accordance with the terms of the related Credit Line Agreement to determine
      the
      Loan Rate for such Mortgage Loan, subject to any maximum rate of
      interest.

     

    Master
      Servicer:
      [_________], or any successor in interest, or if any successor master servicer
      shall be appointed as herein provided, then such successor master
      servicer.

     

    Material
      Adverse Change:
      A
      material adverse change in (i) the business, results of operations or properties
      of the Master Servicer or (ii) the ability of the Master Servicer to perform
      its
      obligations under the Sale and Servicing Agreement.

     

    Material
      Defect:
      As
      defined in Section 2.02(c) hereof.

     

    Maturity
      Date:
      The
      Payment Date in [_________] 20[__].

     

    Maximum
      Principal Payment:
      With
      respect to the Notes and (i) any Payment Date during the Managed Amortization
      Period, the Net Principal Collections and (ii) any Payment Date during the
      Rapid
      Amortization Period, [____]% of the Principal Collections relating to such
      Payment Date.

     

    Maximum
      Rate:
      With
      respect to the Notes and an Interest Accrual Period, is equal to the product
      of
      (i) (a) the weighted average of the Net Loan Rates (assuming each Mortgage
      Loan
      is fully indexed), minus (b) the product of (1) the Premium Percentage and
      (2) a
      fraction, the numerator of which is the Note Principal Balance immediately
      before the related Payment Date and the denominator of which is the Pool Balance
      at the beginning of the related Collection Period, (ii) a fraction, the
      numerator of which is 30 and the denominator of which is the number of days
      in
      the related Interest Accrual Period and (iii) a fraction, the numerator of
      which
      is the Pool Balance at the beginning of the related Collection Period and the
      denominator of which is the Note Principal Amount immediately before the related
      Payment Date.

     

    
      
        
        

      

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

     

    MERS
      Mortgage Loan:
      Any
      Mortgage Loan as to which the related Mortgage, or an Assignment of Mortgage,
      has been or will be recorded in the name of MERS, as nominee for the holder
      from
      time to time of the Credit Line Agreement.

     

    Moody’s:
      Moody’s
      Investors Service, Inc., or any successor in interest.

     

    Mortgage:
      A
      mortgage, deed of trust or other instrument encumbering a fee simple interest
      in
      real property securing a Credit Line Agreement, together with improvements
      thereto.

     

    Mortgage
      File:
      The
      mortgage documents listed in Section 2.01(b) pertaining to a particular Mortgage
      Loan required to be delivered to the Indenture Trustee pursuant to this
      Agreement.

     

    Mortgage
      Loan:
      A
      Mortgage and the related Credit Line Agreement or other evidences of
      indebtedness secured by each such Mortgage conveyed, transferred, sold, assigned
      to or deposited with the Indenture Trustee for the benefit of Securityholders
      pursuant to Section 2.01 or Section 3.04, including without limitation, each
      Initial Mortgage Loan and Subsequent Mortgage Loan listed on the Mortgage Loan
      Schedule, as amended from time to time.

     

    Mortgage
      Loan Sale Agreement:
      The
      mortgage loan sale and assignment agreement dated as of [_____] [__], 20[__],
      for the sale of the Mortgage Loans by the Seller to the Depositor.

     

    Mortgage
      Loan Schedule:
      The
      schedule attached hereto as Schedule A, which shall identify each Mortgage
      Loan,
      as such schedule may be amended from time to time to reflect the addition of
      Mortgage Loans (including the addition of any Qualifying Substitute Mortgage
      Loans) to, or the deletion of Mortgage Loans from, the Trust Estate. Such
      schedule shall set forth, among other things, the following information with
      respect to each Mortgage Loan: (i) the Mortgage Loan identifying number; (ii)
      the Mortgagor’s name; (iii) the street address of the Mortgaged Property
      including the city, state and zip code; (iv) the original principal amount
      of
      the Mortgage Loan; (v) the Loan Rate at origination; (vi) the monthly payment
      of
      principal and interest at origination; (vii) the applicable Servicer servicing
      such Mortgage Loan (and, if the related initial Servicer is no longer the,
      Servicer of such Mortgage Loan, whether such Mortgage Loan is a [_________]
      Mortgage
      Loan or a [_________]
      Mortgage
      Loan) and the applicable Servicing Fee Rate; (viii) the Custodian with respect
      to the Mortgage File related to such Mortgage Loan; (ix) the Cut Off Date
      Principal Balance, (x) the Credit Limit, (xi) the Gross Margin, (xii) the
      Lifetime Rate Cap, (xiii) the account number, (xiv) the current Loan Rate,
      (xv)
      the Combined Loan-to-Value Ratio, (xvi) a code specifying the property type,
      (xvii) a code specifying documentation type and (xviii) a code specifying lien
      position. The Depositor shall be responsible for providing the Indenture Trustee
      and the Master Servicer with all amendments to the Mortgage Loan
      Schedule.

     

    
      
        
        

      

      
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    Mortgaged
      Property:
      The fee
      simple interest in real property, together with improvements thereto including
      any exterior improvements to be completed within 120 days of disbursement of
      the
      related Mortgage Loan proceeds.

     

    Mortgagor:
      The
      obligor on a Credit Line Agreement.

     

    Net
      Liquidation Proceeds:
      With
      respect to any Liquidated Mortgage Loan, the related Liquidation Proceeds
      received and retained in connection with the liquidation of such Mortgage Loan
      net of (i) unreimbursed expenses, (ii) any unreimbursed Servicing Advances,
      if
      any, and (iii) in the case of a defaulted Second Lien Mortgage Loan, the amount
      necessary to repay the related senior lien mortgage loan.

     

    Net
      Loan Rate:
      With
      respect to any Mortgage Loan, the Loan Rate thereof reduced by the Aggregate
      Expense Rate for such Mortgage Loan.

     

    Net
      Principal Collections:
      The
      excess of (x) Principal Collections over (y) the sum of (A) the aggregate amount
      of all Additional Balances arising during the related Collection Period plus
      (B)
      the Additional Balance Contributed Amount outstanding as of the opening of
      business on the related Payment Date; provided,
      however,
      that in
      no event will Net Principal Collections be less than zero with respect to any
      Payment Date.

     

    New
      York UCC:
      The
      Uniform Commercial Code as in effect in the State of New York.

     

    Non-MERS
      Mortgage Loan:
      Any
      Mortgage Loan other than a MERS Mortgage Loan.

     

    Note:
      Any
      Note designated as a “Class A Home Equity Loan Asset-Backed Note” on the face
      thereof, in substantially the form of Exhibit A-1 to the Indenture.

     

    Note
      Rate:
      The
      lesser of the Formula Note Rate and the Maximum Rate.

     

    Note
      Paying Agent:
      The
      Indenture Trustee or any other Person that meets the eligibility standards
      for
      the Indenture Trustee specified in Section 6.11 of the Indenture and is
      authorized by the Issuer to make payments to and distributions from the
      Distribution Account, including payment of principal of or interest on the
      Notes
      on behalf of the Issuer.

     

    Noteholder:
      As
      defined in the Indenture.

     

    Note
      Principal Amount:
      With respect to any Notes, the Original Note Principal Amount, less the amount
      of all principal distributions previously distributed with respect to such
      Note.

     

    Note
      Register
      and Note
      Registrar:
      As defined in the Indenture.

     

    Officer’s
      Certificate:
      A
      certificate signed by the Chairman of the Board, any Vice Chairman, the
      President, any Vice President or any Assistant Vice President of a
      Person.

     

    Operative
      Agreements:
      The
      Trust Agreement, the Certificate of Trust of the Issuer, this Agreement, the
      Mortgage Loan Sale Agreement, the Indenture, the Administration Agreement,
      the
      Custodial Agreements, the Servicing Agreements, the Reconstituted Servicing
      Agreements, the Residual Certificates, the Notes the Insurance and Indemnity
      Agreement and each other document contemplated by any of the foregoing to which
      the Depositor, the Owner Trustee, the Administrator, the Indenture Trustee
      or
      the Issuer is a party.

     

    
      
        
        

      

      
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    Opinion
      of Counsel:
      A
      written opinion of counsel, reasonably acceptable in form and substance to
      the
Indenture
      Trustee, the Insurer
      and the
      Issuer, and who may be in-house or outside counsel to the Depositor, the Master
      Servicer, the Indenture
      Trustee or the Issuer
      but
      which must be Independent outside counsel with respect to any such opinion
      of
      counsel concerning federal income tax matters.

     

    Optional
      Redemption Date:
      As
      defined in Section 8.02(a) of this Agreement.

     

    Optional
      Redemption Holder:
      The
      Master Servicer.

     

    Optional
      Redemption Price:
      An
      amount equal to the greater of: (i) the unpaid principal amount of the then
      Outstanding Amount of the Notes, plus accrued and unpaid interest thereon to
      but
      excluding the Redemption Date and (ii) the sum of (a) the Note Principal Amount
      with interest due thereon, (b) any outstanding fees due to the Servicers, the
      Insurer the Indenture Trustee and the Owner Trustee and (c) any Reimbursement
      Amounts.

     

    Original
      Loan-to-Value Ratio:
      With
      respect to any Mortgage Loan, the ratio of the principal balance of such
      Mortgage Loan at origination, or such other date as is specified, to the
      Original Value of the related Mortgaged Property.

     

    Original
      Note Principal Amount:
      With
      respect to the Class A Notes, $[_________].

     

    Original
      Value:
      The
      lesser of (a) the Appraised Value of a Mortgaged Property at the time the
      related Mortgage Loan was originated and (b) if the Mortgage Loan was made
      to
      finance the acquisition of the related Mortgaged Property, the purchase price
      paid for the Mortgaged Property by the Mortgagor at the time the related
      Mortgage Loan was originated.

     

    Originator:
      [_________],
      in the
      capacity of originator.

     

    Outstanding
      Additional Balance Contributed Amount:
      For any
      Payment Date, any Additional Balance Contributed Amount that was not reimbursed
      pursuant to Section 5.03(b)(iii).

     

    Outstanding
      Amount:
      With
      respect to any date of determination, the Note Principal Amount outstanding
      as
      of such date of determination.

     

    Overcollateralization
      Amount:
      With
      respect to the Notes and as of any Payment Date, the excess, if any, of (x)
      the
      Pool Balance as of the end of the related Collection Period over (y) the
      Outstanding Amount as of such Payment Date (after taking into account any
      reductions to such Outstanding Amount resulting from payments made pursuant
      to
      clause (iv) of Section 5.03(b) of this Agreement on such Payment
      Date).

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Overcollateralization
      Deficiency Amount:
      With
      respect to the Notes and any Payment Date, the excess, if any, of (i) the
      Specified Overcollateralization Amount applicable to such Payment Date over
      (ii)
      the Overcollateralization Amount applicable to such Payment Date.

     

    Overcollateralization
      Deficit:
      With
      respect to the Notes and any Payment Date, the amount, if any, by which (a)
      the
      Outstanding Amount, after taking into account the payment to the Noteholders
      of
      all principal from all sources other than the Policy on such Payment Date,
      exceeds (b) the Pool Balance as of as of the end of the related Collection
      Period plus any Principal Collections due in the immediately preceding
      Collection Period but received in the subsequent Collection Period before the
      related Remittance Date.

     

    Overcollateralization
      Reduction Amount:
      With
      respect to the Notes and any Payment Date, the excess, if any, of (x) the
      Overcollateralization Amount over (y) the Specified Overcollateralization Amount
      assuming that the Maximum Principal Payment had been distributed to the
      Noteholders on such Payment Date.

     

    Owner
      Trustee:
      [_________], a national banking association, and any successor in interest,
      not
      in its individual capacity, but solely as owner trustee under the Trust
      Agreement.

     

    Owner
      Trustee Fee:
      The
      annual fee of $[_________],
      payable
      to the Owner Trustee pursuant to the Fee Letter Agreement specified in Section
      7.03 of the Trust Agreement on a monthly basis on each Payment Date during
      the
      term of this Agreement.

     

    Payment
      Date:
      The
      [___] day of each month or, if such [___] day is not a Business Day, the next
      succeeding Business Day, commencing in [___] 20[__].

     

    Percentage
      Interest:
      With
      respect to the Notes, the percentage obtained by dividing the principal
      denomination of such Note by the aggregate of the principal denominations of
      all
      Notes of such class. With respect to a Residual Certificate, the percentage
      set
      forth on the face of such Residual Certificate.

     

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

     

    Plan:
      An
      employee benefit plan or other retirement arrangement which is subject to
      Section 4.06 of ERISA and/or Section 4975 of the Code or any entity whose
      underlying assets include such plan’s or arrangement’s assets by reason of their
      investment in the entity.

     

    Plan
      Asset Regulations:
      The
      Department of Labor regulations set forth in 29 C.F.R. 2510.3-101.

     

    Policy:
      The certificate guaranty insurance policy No. [______________] and any
      endorsement thereto, with respect to the Notes, dated [_____] [__], 20[__],
      issued by the Insurer to the Indenture Trustee for the benefit of the
      Noteholders.

     

    Policy
      Payment Account:
      As defined in Section 5.04(c) of this Agreement.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    Pool
      Balance:
      With respect to any date, the aggregate of the Principal Balances of all of
      the
      Mortgage Loans as of such date.

     

    Pool
      Delinquency Rate:
      With
      respect to any Collection Period, the fraction, expressed as a percentage,
      equal
      to (x) the aggregate Principal Balances of all Mortgage Loans that are 60 or
      more days delinquent (including all foreclosures and REO properties) as of
      the
      close of business on the last day of such Collection Period over (y) the Pool
      Balance as of the close of business on the last day of such Collection
      Period.

     

    Preference
      Amount:
      As
      defined in the Policy.

     

    Preference
      Claim:
      As
      defined in Section [___] of the Indenture.

     

    Premium
      Amount:
      With
      respect to the Notes and as to any Payment Date, the product of (x) the Premium
      Percentage, (y) the Outstanding Amount after giving effect to any distributions
      of principal to be made on such Payment Date and (z) the fraction, expressed
      as
      a percentage, the numerator of which is the number of days elapsed from the
      last
      Payment Date to the related Payment Date and the denominator of which is
      360.

     

    Premium
      Percentage:
      As
      defined in the Insurance Agreement.

     

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

     

    Principal
      Balance:
      As of
      any date and with respect to any Mortgage Loan other than a Liquidated Mortgage
      Loan, and as of any date, the related Cut-off Date Pool Balance, plus (i) any
      Additional Balance in respect of such Mortgage Loan, minus (ii) all collections
      credited as principal against the principal balance of any such Mortgage Loan
      in
      accordance with the related Credit Line Agreement prior to such day. For
      purposes of this definition, a Liquidated Mortgage Loan shall be deemed to
      have
      a Principal Balance equal to the Principal Balance of the related Mortgage
      Loan
      immediately prior to the final recovery of related Liquidation Proceeds and
      a
      Principal Balance of zero thereafter.

     

    Principal
      Collections:
      With
      respect to any Payment Date, the sum of (a) all payments by or on behalf of
      Mortgagors and any other amounts constituting principal including any portion
      of
      Substitution Amounts allocable to principal, any portion of Recoveries allocable
      to principal and any portion of Insurance Proceeds, Net Liquidation Proceeds
      or
      amounts to be deposited to the Distribution Account pursuant to Section 5.02
      of
      this Agreement that are allocable to principal, but excluding Foreclosure
      Profits) collected by the related Servicer under the related Mortgage Loans
      during the related Collection Period and (b) the principal portion of (i) the
      Loan Purchase Price for any Mortgage Loan repurchased by the Seller or an
      Originator during the related Collection Period and (ii) the Redemption Price
      in
      connection with any optional redemption of the Notes. The terms of the related
      Credit Line Agreement shall determine the portion of each payment in respect
      of
      a Mortgage Loan that constitutes principal or interest.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    Principal
      Payment Amount:
      With
      respect to the Notes on any Payment Date, the excess, if any, of (x) the Maximum
      Principal Payment over (y) the Overcollateralization Reduction
      Amount.

     

    Principal
      Prepayment:
      Any
      Mortgagor payment of principal (other than a Balloon Payment) or other recovery
      of principal on a Mortgage Loan that is recognized as having been received
      or
      recovered in advance of its scheduled Due Date and applied to reduce the
      principal balance of the Mortgage Loan in accordance with the terms of the
      Credit Line Agreement or the Servicing Agreement.

     

    Proceeding:
      Any
      suit in equity, action at law or other judicial or administrative
      proceeding.

     

    Prospectus:
      The
      prospectus supplement dated [_________] [__], 20[__], together with the
      accompanying prospectus dated [__________] [__], 20[__], relating to the
Class
      A
      Notes.

     

    Purchase
      Price:
      With
      respect to all Additional Balances, at least 100% of the principal balance
      of
      such Additional Balances.

     

    Qualified
      GIC:
      A
      guaranteed investment contract or surety bond providing for the investment
      of
      funds in the Collection Account or the Distribution Account and insuring a
      minimum, fixed or floating rate of return on investments of such funds, which
      contract or surety bond shall:

     

    (i)
       be
      an
      obligation of an insurance company or other corporation whose long-term debt
      is
      rated by each Rating Agency in one of its two highest rating categories or,
      if
      such insurance company has no long-term debt, whose claims paying ability is
      rated by each Rating Agency in one of its two highest rating categories, and
      whose short-term debt is rated by each Rating Agency in its highest rating
      category;

     

    (ii)
       provide
      that the Indenture Trustee may exercise all of the rights under such contract
      or
      surety bond without the necessity of taking any action by any other
      Person;

     

    (iii)
       provide
      that if at any time the then current credit standing of the obligor under such
      guaranteed investment contract is such that continued investment pursuant to
      such contract of funds would result in a downgrading of any rating of the Notes,
      the Indenture Trustee shall terminate such contract without penalty and be
      entitled to the return of all funds previously invested thereunder, together
      with accrued interest thereon at the interest rate provided under such contract
      to the date of delivery of such funds to the Indenture Trustee;

     

    (iv)
       provide
      that the Indenture Trustee’s interest therein shall be transferable to any
      successor trustee hereunder; and

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    (v)
       provide
      that the funds reinvested thereunder and accrued interest thereon be returnable
      to the Collection Account or the Distribution Account, as the case may be,
      not
      later than the Business Day prior to any Payment Date.

     

    Qualified
      Insurer:
      An
      insurance company duly qualified as such under the laws of the states in which
      the related Mortgaged Properties are located, duly authorized and licensed
      in
      such states to transact the applicable insurance business and to write the
      insurance provided and whose claims paying ability is rated by each Rating
      Agency in its highest rating category or whose selection as an insurer will
      not
      adversely affect the rating of the Notes, without taking into account the
      Policy.

     

    Qualifying
      Substitute Mortgage Loan:
      In the
      case of a Mortgage Loan substituted for a Deleted Mortgage Loan pursuant to
      the
      terms of this Agreement, a Mortgage Loan that, on the date of such substitution,
      (i) has an outstanding Principal Balance (or in the case of a substitution
      of
      more than one mortgage loan for a Deleted Mortgage Loan, an aggregate Principal
      Balance), after application of all Principal Collections and Interest
      Collections due during or prior to the month of substitution, not in excess
      of,
      and not more than 5% less than, the outstanding Principal Balance of the Deleted
      Mortgage Loan as of the Due Date in the calendar month during which the
      substitution occurs, (ii) has a Loan Rate not less than the Loan Rate on the
      Deleted Mortgage Loan, (iii) if applicable, has a maximum Loan Rate not less
      than the maximum Loan Rate on the Deleted Mortgage Loan, (iv) has a minimum
      Loan
      Rate not less than the minimum Loan Rate of the Deleted Mortgage Loan, (v)
      has a
      gross margin equal to or greater than the gross margin of the Deleted Mortgage
      Loan, (vi) has a next adjustment date not later than the next adjustment date
      on
      the Deleted Mortgage Loan, (vii) has the same Due Date as the Deleted Mortgage
      Loan, (viii) has a remaining stated term to maturity not longer than 18 months
      and not more than 18 months shorter than the remaining stated term to maturity
      of the related Deleted Mortgage Loan and has a remaining stated term to maturity
      not later than the Mortgage Loan with the latest stated term to maturity as
      of
      the Closing Date, (ix) is current as of the date of substitution, (x) has an
      original Combined Loan-to-Value Ratio as of the date of substitution equal
      to or
      lower than the original Combined Loan-to-Value Ratio of the Deleted Mortgage
      Loan as of such date, (xi) has been underwritten by any Transferor or in
      accordance with the same underwriting criteria and guidelines as the Deleted
      Mortgage Loan, (xii) has a risk grading determined by the Seller at least equal
      to the risk grading assigned on the Deleted Mortgage Loan, (xiii) is
      secured by the same property type as the Deleted Mortgage Loan, (xiv) conforms
      to each representation and warranty applicable to the Deleted Mortgage Loan
      made
      in the related Transfer Agreement, (xv) has the same or higher lien position
      as
      the Deleted Mortgage Loan, (xvi) has a Credit Score greater than or equal to
      the
      Credit Score of the Deleted Mortgage Loan at the time such Mortgage Loan was
      transferred to the Trust, (xvii) the related Mortgaged Property is not an
      investment property (unless the Mortgaged Property related to the Deleted
      Mortgage Loan was an investment property), (xviii) the related Mortgaged
      Property is not a second home (unless the Mortgaged Property related to the
      Deleted Mortgage Loan was a second home), (xix) the Combined Loan-to-Value
      Ratio
      is not greater than 100%, (xx) is no longer in its teaser period and (xxi)
      is
      acceptable to the Insurer. In the event that one or more mortgage loans are
      substituted for one or more Deleted Mortgage Loans, the amounts described in
      clause (i) hereof shall be determined on the basis of aggregate Principal
      Balances, the Loan Rates described in clause (ii) hereof shall be determined
      on
      the basis of weighted average Loan Rates, the risk gradings described in clause
      (xi) hereof shall be satisfied as to each such mortgage loan, the terms
      described in clause (viii) hereof shall be determined on the basis of weighted
      average remaining term to maturity, the Loan-to-Value Ratios described in clause
      (x) hereof shall be satisfied as to each such mortgage loan and, except to
      the
      extent otherwise provided in this sentence, the representations and warranties
      described in clause (xiv) hereof must be satisfied as to each Qualifying
      Substitute Mortgage Loan or in the aggregate, as the case may be.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    Rapid
      Amortization Event:
      Any of
      those “Rapid Amortization Events” described in Section 7.01 of this
      Agreement.

     

    Rapid
      Amortization Period:
      With
      respect to the Notes, the period which immediately follows the end of the
      Managed Amortization Period.

     

    Rating
      Agency:
      Each of
      [_______] and [_______].

     

    Realized
      Loss Allocated Amount:
      With
      respect to any Payment Date, an amount equal to Realized Losses on the Mortgage
      Loans incurred during the prior Collection Period multiplied by a fraction
      the
      numerator of which is the Class Principal Balance of the Class L Certificates
      immediately prior to such Payment Date and the denominator of which is the
      sum
      of the Class Principal Balances of the Class L and Class B Certificates
      immediately prior to such Payment Date.

     

    Realized
      Losses:
      For any
      Payment Date will equal the positive difference between (i) the Principal
      Balances of all Mortgage Loans that were liquidated during the related
      Collection Period and (ii) the principal portion of Net Liquidation Proceeds
      of
      such Mortgage Loans.

     

    Record
      Date:
      The
      Business Day immediately preceding the related Payment Date; provided,
      however,
      that
      following the date on which Definitive Notes are available, the Record Date
      for
      the Notes shall be the last Business Day of the calendar month preceding the
      month in which the related Payment Date occurs.

     

    Recordation
      Event:
      Any of
      (i) the long-term senior unsecured debt rating of Thornburg no longer being
      rated at least “BBB-” by Standard & Poor’s and “Baa3” by Moody’s, (ii) the
      resignation of the Master Servicer, (iii) the occurrence of an Event of Master
      Servicing Termination, (iv) the failure of THORNBURG to maintain the capital
      standards established for “well capitalized” institutions under the prompt
      corrective action regulations issued pursuant to the Federal Deposit Insurance
      Corporation Improvement Act of 1991, as amended, or (v) the occurrence of a
      bankruptcy, insolvency or foreclosure relating to the Issuer; provided, that
      any
      Recordation Event may be waived by the Insurer by its providing written notice
      of such waiver to the Master Servicer and the Indenture Trustee; and (vi) at
      the
      written request of the Insurer to the Indenture Trustee to record Assignments
      of
      Mortgages because the Insurer has determined, in the exercise of its reasonable
      judgment, that such recordation is necessary to protect the Insurer’s interest
      with respect to such Mortgage Loans because (a) a Material Adverse Change with
      respect to the Master Servicer has occurred, (b) the Insurer has been so advised
      by counsel as a result of a change that occurred after the Closing Date in
      applicable law or the interpretation thereof or (c) with respect to a particular
      Mortgage Loan, the insolvency of the related Mortgagor.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    Recoveries:
      With
      respect to any Mortgage Loan that becomes a Liquidated Mortgage Loan prior
      to
      the Collection Period relating to a Payment Date, all amounts received in
      respect of principal on such Liquidated Mortgage Loan during the calendar month
      prior to such Payment Date, net of reimbursable expenses in respect
      thereof.

     

    Redemption
      Price:
      As
      defined in the Indenture.

     

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

     

    Relevant
      UCC:
      The
      Uniform Commercial Code as in effect in the applicable
      jurisdiction.

     

    Reimbursement
      Amount:
      As of
      any Payment Date with respect to the Notes, the sum of (x)(i) all Insured
      Payments paid by the Insurer, but for which the Insurer has not been reimbursed
      prior to such Payment Date pursuant to Section 5.03(b)(v) of this Agreement,
      plus (ii) interest accrued on such Insured Payments not previously repaid
      calculated at the Late Payment Rate from the date the Indenture Trustee received
      the related Insured Payments and (y), without duplication, (i) any other amounts
      then due and owing to the Insurer under the Insurance Agreement as certified
      to
      the Indenture Trustee by the Insurer plus, (ii) interest on such amounts at
      the
      Late Payment Rate.

     

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

     

    Residual
      Certificate:
      The
      Class L Certificate or the Class B Certificate, as applicable.

     

    Residual
      Certificateholder or Certificateholder:
      Any
      holder of a Residual Certificate.

     

    Responsible
      Officer:
      Any
      Vice President, any Assistant Vice President, any Assistant Secretary, any
      Assistant Treasurer, any Corporate Trust officer or any other officer of the
      Indenture Trustee customarily performing functions similar to those performed
      by
      any of the above-designated officers and, in each case, having direct
      responsibility for the administration of the Operative Agreements and also,
      with
      respect to a particular matter, any other officer to whom such matter is
      referred because of such officer’s knowledge of and familiarity with the
      particular subject.

     

    S&P:
      Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies,
      Inc., or any successor in interest.

     

    Second
      Lien Mortgage Loan:
      Any
      Mortgage Loan that is secured by a second lien on the related Mortgaged
      Property.

     

    Securities:
      Any
      Note and/or Residual Certificates, as applicable.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

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

     

    Securities
      Intermediary:
      The
      Person acting as Securities Intermediary under this Agreement (which is
      [_________]), its successor in interest, and any successor Securities
      Intermediary appointed pursuant to Section 5.08.

     

    Security
      Entitlement:
      The
      meaning specified in Section 8-102(a)(17) of the New York UCC.

     

    Securityholders:
      The
      Noteholders and the Certificateholders.

     

    Seller:
      Thornburg Mortgage Funding, Inc., or any successor in interest.

     

    Servicer
      Remittance Date:
      The day
      in each calendar month on which each Servicer is required to remit payments
      to
      the Collection Account, as specified in the related Servicing Agreement, which
      is the [___] day of each calendar month (or, if such [___] day is not a Business
      Day, the next succeeding Business Day).

     

    Servicers:
      [_________]
      and
[_________],
      each in
      the capacity of servicer, or any of their respective successors in
      interest.

     

    Servicing
      Advances:
      All
      customary, reasonable and necessary “out of pocket” costs and expenses other
      than Advances (including reasonable attorneys’ fees and disbursements) incurred
      in the performance by a Servicer of its servicing obligations, including, but
      not limited to, the cost of (a) the preservation, inspection, restoration and
      protection of the Mortgaged Property, (b) any enforcement or administrative
      or
      judicial proceedings, including foreclosures, (c) the management and liquidation
      of the Mortgaged Property if the Mortgaged Property is acquired in satisfaction
      of the Mortgage, (d) taxes, assessments, water rates, sewer rents and other
      charges which are or may become a lien upon the Mortgaged Property, and fire
      and
      hazard insurance coverage and (e) any losses sustained by a Servicer with
      respect to the liquidation of the Mortgaged Property.

     

    Servicing
      Agreement:
      Each
      Servicing Agreement listed on Exhibit C and any other servicing agreement
      entered into between a successor servicer and the Seller or Issuer pursuant
      to
      the terms of this Agreement. 

     

    Servicing
      Fee:
      As to
      any Payment Date and each Mortgage Loan, an amount equal to the product of
      (a)
      one-twelfth of the Servicing Fee Rate and (b) the outstanding principal balance
      of such Mortgage Loan as of the first day of the related Collection
      Period.

     

    Servicing
      Fee Rate:
      With
      respect to each Mortgage Loan, [____]%. 

     

    Six
      Month Rolling Delinquency Rate:
      As of
      any Payment Date beginning with the sixth Payment Date, a number equal to the
      average of the related Pool Delinquency Rates for each of the six immediately
      preceding Collection Periods.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    Specified
      Overcollateralization Amount:
      With
      respect to any Payment Date, the amount equal to the greatest of: (I) (i) prior
      to the Stepdown Date, the greater of (a) [____]% of the Principal Balance of
      Mortgage Loans which are 180 or more days Delinquent as of the close of business
      of the last day of the related Collection Period plus [____]% of the Initial
      Pool Balance and (b) the Step-Up Overcollateralization Amount and (ii) on or
      after the Stepdown Date the greater of: (x) the lesser of (1) [____]% of the
      Initial Pool Balance and (2) [____]% of the Pool Balance as of the current
      Payment Date and (y) the Step-Up Overcollateralization Amount; (II) [____]%
      of
      the Initial Pool Balance; and (III) the sum of the Principal Balances of the
      Mortgages Loans with the three largest Principal Balances immediately prior
      to
      such Payment Date; provided,
      however,
      that no
      reduction in clause (I)(ii) shall occur unless (i) the aggregate
      cumulative Liquidation Loss Amounts with respect to the Pool as a percentage
      of
      the Initial Pool Balance are less than (A) with respect to the first
      Payment Date to and but not including the 48th Payment Date, [____]% and
      (B) with respect to the 49th Payment Date each Payment Date and thereafter,
      [____]% and (ii) the Six Month Rolling Delinquency Rate for such Payment
      Date is less than [____]%.

     

    Stepdown
      Date:
      With
      respect to the Notes, the later to occur of (a) the 31st
      Payment
      Date and (b) the first Payment Date on which the Pool Balance has been reduced
      to 50% or less of the Initial Pool Balance.

     

    Step-Up
      Overcollateralization Amount:
      If the
      aggregate cumulative Liquidation Loss Amounts as a percentage of the Initial
      Pool Balance exceed the following percentages on the specified Payment
      Dates,

     

    
      	
              Payment
                Dates

            	
              Percentage

            
	
              1st
                - 12th

            	
              [____]%

            
	
              13th
                -
                24th

            	
              [____]%

            
	
              25th
                -
                36th

            	
              [____]%

            
	
              37th
                -
                48th

            	
              [____]%

            
	
              49th
                +

            	
              [____]%

            

    

     

    the
      Step-Up Overcollateralization Amount will equal (a) [____]% of the Initial
      Pool
      Balance, prior to the Stepdown Date and (b) on or after the Stepdown Date,
      the
      lesser of (x) [____]% of the Initial Pool Balance and (y) [____]% of the Pool
      Balance as of current Payment Date. Otherwise, the Step-Up Overcollateralization
      Amount is zero.

     

    Substitute
      Cut-Off Date:
      With
      respect to any Qualifying Substitute Mortgage Loan, the opening of business
      on
      the first day of the calendar month in which such Qualifying Substitute Mortgage
      Loan is conveyed to the Trust.

     

    Substitution
      Amount:
      The
      amount, if any, by which the Principal Balance of a Deleted Mortgage Loan
      exceeds the Principal Balance of the related Qualifying Substitute Mortgage
      Loan, or aggregate Principal Balance, if applicable, plus
      unpaid
      interest thereon, and any related unpaid Servicing Advances or unpaid Servicing
      Fees.

     

    
      
        
        

      

      
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    Substitution
      Amounts:
      In
      connection with the delivery of any Qualifying Substitute Mortgage Loan, if
      the
      outstanding principal amount of such Qualifying Substitute Mortgage Loan as
      of
      the applicable Substitute Cut-Off Date is less than the related Principal
      Balance of the Mortgage Loan being replaced as of such Substitute Cut-Off Date,
      an amount equal to such difference together with accrued and unpaid interest
      on
      such amount calculated at the Loan Rate of the Mortgage Loan being
      replaced.

     

    Telerate
      Page 3750:
      The
      display currently so designated as “Page 3750” on the Bridge Telerate Service
      (or such other page selected by the [Indenture Trustee] as may replace Page
      3750
      on that service for the purpose of displaying daily comparable rates on
      prices).

     

    Termination
      Date:
      The
      latest of (i) the termination of the Policy and the return of the Policy to
      the
      Insurer for cancellation, (ii) the date on which the Insurer shall have received
      all amounts due and owing to the Insurer under the Insurance Agreement and
      (iii)
      the date on which the Indenture Trustee shall have received payment and
      performance of all Indenture Trustee Issuer Secured Obligations. 

     

    Thornburg:
      Thornburg Mortgage Funding, Inc., or any successor in interest.

     

    Title
      Insurance Policy:
      A title
      insurance policy maintained with respect to a Mortgage Loan.

     

    Total
      Distribution Amount:
      With
      respect to any Payment Date, the sum of (i) the Interest Collections for such
      date and (ii) the Principal Collections for such date.

     

    Transfer
      Agreements:
      As
      defined in the Mortgage Loan Sale Agreement.

     

    Transferor:
      Each
      seller of Mortgage Loans to the Seller pursuant to the Transfer
      Agreements.

     

    Trust
      Account Property:
      The
      Trust Accounts, all amounts and investments held from time to time in the Trust
      Accounts (whether in the form of deposit accounts, physical property, book-entry
      securities, uncertificated securities, securities entitlements, investment
      property or otherwise) and all proceeds of the foregoing.

     

    Trust Accounts:
      The
      Collection Account, the Certificate Account and the Distribution
      Account.

     

    Trust
      Agreement:
      The
      Trust Agreement dated as of [_____] [__], 20[__], between the Depositor, the
      Administrator and the Owner Trustee, as such may be amended or supplemented
      from
      time to time.

     

    
      
        
        

      

      
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    Trust
      Estate:
      The
      assets subject to this Agreement and the Indenture, transferred by the Depositor
      to the Issuer and pledged by the Issuer to the Indenture Trustee, which assets
      consist of all accounts, accounts receivable, contract rights, general
      intangibles, chattel paper, instruments, documents, money, deposit accounts,
      certificates of deposit, goods, notes, drafts, letters of credit, advices of
      credit, investment property, uncertificated securities and rights to payment
      of
      any and every kind consisting of, arising from or relating to any of the
      following: (a) the Mortgage Loans listed in the Mortgage Loan Schedule, and
      principal due and payable after the Cut-off Date, but not including interest
      and
      principal due and payable on any Mortgage Loans on or before the Cut-off Date,
      together with the Mortgage Files relating to such Mortgage Loans; (b) any
      Insurance Proceeds, REO Property, Liquidation Proceeds and other recoveries
      (in
      each case, subject to clause (a) above), (c) the Trust Accounts, Recoveries,
      any
      Custodial Account, any Escrow Account and all amounts deposited therein pursuant
      to the applicable provisions of this Agreement, (d) any Insurance Policies,
      (e)
      the rights of the Depositor under the Mortgage Loan Sale Agreement (f) the
      Servicing Agreements and (g) all income, revenues, issues, products, revisions,
      substitutions, replacements, profits, rents and all cash and non-cash proceeds
      of the foregoing.

     

    Trust
      or Trust Fund:
      The
      Issuer.

     

    UCC:
      The
      Uniform Commercial Code as enacted in the relevant jurisdiction.

     

    Underwriter:
      [____].

     

    Voting
      Interests:
      The
      portion of the voting rights of all the Notes that is allocated to any Note
      for
      purposes of the voting provisions of this Agreement. At all times during the
      term of this Agreement, 100% of all Voting Interests shall be allocated to
      the
      Controlling Party.

     

    Section
      1.02  Calculations
      Respecting Mortgage Loans.
      Calculations required to be made pursuant to this Agreement with respect to
      any
      Mortgage Loan in the Trust Estate shall be made based upon current information
      as to the terms of the Mortgage Loans and reports of payments received from
      the
      Mortgagor on such Mortgage Loans and payments to be made to the Indenture
      Trustee as supplied to the Indenture Trustee by the Master Servicer. The
      Indenture Trustee shall not be required to recompute, verify or recalculate
      the
      information supplied to it by the Master Servicer or any Servicer.

     

    Section
      1.03  Calculations
      Respecting Accrued Interest.
      Accrued
      interest, if any, on the Notes shall be calculated based upon a 360-day year
      and
      the actual number of days in each Interest Accrual Period.

     

     

    ARTICLE
      II 

     

    CONVEYANCE
      OF MORTGAGE LOANS

     

    Section
      2.01  Conveyance
      of Mortgage Loans; Retention of Obligation to Fund Advances Under Credit Line
      Agreements.

     

    
      
        
        

      

      
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    (a) As
      of the
      Closing Date, in consideration of the Issuer's delivery of the Notes and the
      Residual Certificates to the Depositor or its designee, and
      concurrently with
      the
      execution and delivery of this Agreement, the Depositor does hereby transfer,
      assign, set over, deposit with and otherwise convey to the Issuer, without
      recourse, subject to Sections 2.02, 2.03, 3.03 and 3.04, in trust, all the
      right, title and interest of the Depositor in and to the Mortgage Loans. Such
      conveyance includes, without limitation, (i) each Mortgage Loan, including
      its
      Principal Balance (including any Additional Balances related thereto) and all
      collections in respect thereof received after the Cut-Off Date (excluding
      Interest Collections due on or prior to the Cut-Off Date); (ii) property that
      secured a Mortgage Loan that is acquired by foreclosure or deed in lieu of
      foreclosure; (iii) the Seller’s rights under the hazard insurance policies; (iv)
      the Policy; (v) the Collection Account and the Distribution Account; (vi) any
      of
      the Depositor’s rights in relation to the Seller with respect to each Transfer
      Agreement and the Mortgage Loan Sale Agreement, including, but not limited
      to,
      the representations and warranties of each Transferor with respect to the
      related Mortgage Loans in the applicable Transfer Agreement and the
      representations and warranties of the Seller under the Mortgage Loan Sale
      Agreement; and (vii) any proceeds of the foregoing and any other Trust Property
      and all other assets included or to be included in the Issuer for the benefit
      of
      Noteholders, the Residual Certificateholders and the Insurer; provided,
      however,
      neither
      the Indenture Trustee nor the Issuer assumes or shall assume the obligation
      under any Credit Line Agreement that provides for the funding of future advances
      to the Mortgagor thereunder, and neither the Issuer nor the Indenture Trustee
      shall be obligated or permitted to fund any such future advances. With respect
      to the Mortgage Loans, Additional Balances shall be part of the related
      Principal Balance and are hereby transferred to the Issuer on the Closing Date
      pursuant to this Section 2.01(a), and therefore part of the Trust Property.
      On
      or prior to the Closing Date, the Depositor shall cause the Insurer to deliver
      the Policy to the Indenture Trustee for the benefit of the Noteholders. The
      Indenture Trustee declares that, subject to the review provided for in Section
      2.02, it has received and shall hold the Trust Estate, as Indenture Trustee,
      in
      trust, for the benefit and use of the Securityholders and for the purposes
      and
      subject to the terms and conditions set forth in this Agreement, and,
      concurrently with such receipt, the Issuer has issued and delivered the
      Securities to or upon the order of the Depositor, in exchange for the Trust
      Estate. 

     

    (b) Prior
      to
      the last day of the related Collection Period preceding the month in which
      the
      commencement of the Rapid Amortization Period occurs with respect to the
      Mortgage Loans serviced by each Servicer, to the extent that the related
      [aggregate] Purchase Price of any [all] Additional Balance[s] is [are] greater
      than the cash consideration paid by the Issuer for such Additional Balance[s],
      the difference between such Purchase Price and the amount of such cash
      consideration shall be deemed to be a loan made to the Issuer by the related
      Servicer, which shall accrue interest and be payable according to the terms
      of
      the Indenture. On and after the first day of the Collection Period in which
      the
      commencement of the Rapid Amortization Period occurs, Additional Balances shall
      be deemed to be a capital contribution made to the Issuer by the Seller. To
      the
      extent that the Seller receives cash consideration for the entire Purchase
      Price
      of such Additional Balance on any future date, any corresponding capital
      contribution that had previously been deemed to have been made to the Issuer
      by
      the Seller shall be deemed to have been redeemed.

     

    
      
        
        

      

      
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    Concurrently
      with the execution and delivery of this Agreement, the Depositor does hereby
      assign to the Issuer all of its rights, title and interest under the Mortgage
      Loan Sale Agreement and the Transfer Agreements and the Transfer Agreements
      and
      delegates its obligations thereunder. The Issuer hereby accepts such assignment,
      and shall be entitled to exercise all the rights of the Depositor under the
      Mortgage Loan Sale Agreement and the Transfer Agreements as if, for such
      purpose, it were the Depositor. Upon the issuance of the Securities, ownership
      in the Trust Estate shall be vested in the Issuer, subject to the lien created
      by the Indenture in favor of the Indenture Trustee, for the benefit of the
      Securityholders and the Insurer. The Issuer hereby accepts such assignment
      and
      delegation, and shall be entitled to exercise all rights of the Depositor under
      the Mortgage Loan Sale Agreement and the Transfer Agreements as if, for such
      purpose, it were the Depositor. The foregoing sale, transfer, assignment,
      set-over, deposit and conveyance does not and is not intended to result in
      creation or assumption by the Indenture Trustee of any obligation of the
      Depositor, the Seller, or any other Person in connection with the Mortgage
      Loans
      or any other agreement or instrument relating thereto except as specifically
      set
      forth herein.

     

    (c) [Reserved.]
      

     

    (d) In
      connection with such transfer and assignment of the Mortgage Loans, the
      Depositor does hereby deliver to, and deposit with, or cause to be delivered
      to
      and deposited with, the Indenture Trustee, and/or the applicable Custodian
      acting on the Indenture Trustee’s behalf, the following documents or instruments
      with respect to each Mortgage Loan (each a “Mortgage File”) so transferred and
      assigned:

     

    (i)
       with
      respect to each Mortgage Loan, the original Credit Line Agreement;

     

    (ii)
       for
      each
      Mortgage Loan that is not a MERS Mortgage Loan, an unsigned and un-notarized
      but
      otherwise complete original Assignment of Mortgage in blank;

     

    (iii)
       (A)
      for
      each Mortgage Loan that is not a MERS Mortgage Loan, the original recorded
      Mortgage or, if in connection with any Mortgage Loan, the original recorded
      Mortgage with evidence of recording thereon cannot be delivered on or prior
      to
      the Closing Date because of a delay caused by the public recording office where
      such original Mortgage has been delivered for recordation or because such
      original Mortgage has been lost, the Originator shall deliver or cause to be
      delivered to the Custodian, a true and correct copy of such Mortgage, together
      with (i) in the case of a delay caused by the public recording office, an
      Officer’s Certificate of the related Originator stating that such original
      Mortgage has been dispatched to the appropriate public recording official or
      (ii) in the case of an original Mortgage that has been lost, a certificate
      by
      the appropriate county recording office where such Mortgage is recorded, and
      (B)
      in the case of each MERS Mortgage Loan, the original Mortgage, noting the
      presence of the “Mortgage Identification Number” of such MERS Mortgage
      Loan;

     

    (iv)
       for
      each
      Mortgage Loan that is not a MERS Mortgage Loan, if applicable, the original
      Intervening Assignments, if any, with evidence of recording thereon, showing
      a
      complete chain of title to the Mortgage from the borrower to the related
      Originator (and endorsed in blank in accordance with clause (ii) above) or,
      if
      any such original Intervening Assignment has not been returned from the
      applicable recording office or has been lost, a true and correct copy thereof,
      together with (i) in the case of a delay caused by the public recording office,
      an Officer’s Certificate of the Depositor stating that such original Intervening
      Assignment has been dispatched to the appropriate public recording official
      for
      recordation or (ii) in the case of an original Intervening Assignment that
      has
      been lost, a certificate by the appropriate county recording office where such
      Mortgage is recorded;

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    (v)
       either
      a
      title policy or guaranty title with respect to the related Mortgaged
      Property;

     

    (vi)
       the
      original of any guaranty executed in connection with the Mortgage
      Loan;

     

    (vii)
       the
      original of each assumption, modification, consolidation or substitution
      agreement, if any, relating to the Mortgage Loans; and

     

    (viii)
       any
      security agreement, chattel mortgage or equivalent instrument executed in
      connection with the Mortgage.

     

    The
      parties hereto acknowledge and agree that the form of endorsement attached
      hereto as Exhibit A-4 is intended to effect the transfer to the Indenture
      Trustee as pledgee of the Issuer, for the benefit of the Securityholders, of
      the
      Credit Line Agreements and the Mortgages.

     

    (e) Upon
      the
      occurrence of a Recordation Event, the Indenture Trustee shall cause the
      Custodian to (i) segregate (a) the Mortgage Files from documents and instruments
      relating to mortgage loans that are not Mortgage Loans and (b) the Credit Line
      Agreement from the Related Documents for each Mortgage Loan and shall assemble
      and maintain the Credit Line Agreements together (separate from the Related
      Documents) and (ii) prepare an Assignment of Mortgage for each Mortgage Loan.
      Indenture Trustee shall cause the Custodian within 90 days of such Recordation
      Event to submit to the appropriate recording offices Assignments of Mortgage
      to
      the Indenture Trustee on behalf of the Trust, which may be blanket assignments
      if permitted by applicable law, for the Mortgage Loans. In lieu of recording
      any
      such Assignments of Mortgage, Master Servicer may cause the Custodian to provide
      to the Indenture Trustee and the Insurer, an Opinion of Counsel in a form
      reasonably acceptable to the Indenture Trustee and the Insurer, to the effect
      that recordation of an Assignment of Mortgage in the state where the related
      Mortgaged Property is located is not necessary to protect the interests of
      the
      Owner Trustee, the Indenture Trustee or the Noteholders in the related Mortgage.
      In the event that any such Assignment of Mortgage is lost or returned unrecorded
      because of a defect therein, the Indenture Trustee shall cause the Custodian
      to
      promptly prepare a substitute Assignment of Mortgage or cure such defect, as
      the
      case may be, and thereafter the Indenture Trustee shall cause the Custodian
      to
      submit each such Assignment of Mortgage for recording.

     

    (f) In
      instances where a Title Insurance Policy is required to be delivered to the
      Indenture Trustee or the applicable Custodian on behalf of the Indenture Trustee
      under clause (c)(vii) above and is not so delivered, the Depositor will provide
      a copy of such Title Insurance Policy to the Indenture Trustee, or to the
      applicable Custodian on behalf of the Indenture Trustee, as promptly as
      practicable after the execution and delivery hereof, but in any case within
      180
      days of the Closing Date.

     

    
      
        
        

      

      
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    (g) For
      Mortgage Loans (if any) that have been prepaid in full after the Cut-off Date
      and prior to the Closing Date, the Depositor, in lieu of delivering the above
      documents, herewith delivers to the Indenture Trustee, or to the applicable
      Custodian on behalf of the Indenture Trustee, an Officer’s Certificate which
      shall include a statement to the effect that all amounts received in connection
      with such prepayment that are required to be deposited in the Collection Account
      pursuant to Section 4.07(d) have been so deposited. All original documents
      that
      are not delivered to the Indenture Trustee or the applicable Custodian on behalf
      of the Indenture Trustee shall be held by the Master Servicer or the applicable
      Servicer in trust for the benefit of the Indenture Trustee and the
      Securityholders.

     

    Section
      2.02  Acceptance
      of Trust Estate; Review of Documentation.  

     

    (a) Subject
      to the provisions of Section 2.01, the Issuer acknowledges receipt of the assets
      transferred by the Depositor of the assets included in the Trust Estate and
      has
      directed that the documents referred to in Section 2.01 and all other assets
      included in the definition of “Trust Estate” be delivered to the Indenture
      Trustee (or the Custodian) on its behalf.

     

    The
      Indenture Trustee, by execution and delivery hereof, acknowledges receipt by
      it
      of the Policy and by it or the applicable Custodian on its behalf of the
      Mortgage Files pertaining to the Mortgage Loans listed on the Mortgage Loan
      Schedule, subject to review thereof by the Indenture Trustee, or by the
      applicable Custodian on behalf of the Indenture Trustee, under this Section
      2.02. The Indenture Trustee, or the applicable Custodian on behalf of the
      Indenture Trustee, will execute and deliver to the Depositor, the Master
      Servicer, the Insurer and the Indenture Trustee on the Closing Date an Initial
      Certification in the form annexed hereto as Exhibit A-1 (or in the form annexed
      to the applicable Custodial Agreement as Exhibit A-1, as
      applicable).

     

    (b) Within
      45
      days after the Closing Date, the Indenture Trustee or the applicable Custodian
      on behalf of the Indenture Trustee, will, for the benefit of Securityholders
      and
      the Insurer, review each Mortgage File to ascertain that all required documents
      set forth in Section 2.01 have been received and appear on their face to contain
      the requisite signatures by or on behalf of the respective parties thereto,
      and
      shall deliver to the Depositor, the Master Servicer and the Indenture Trustee
      an
      Interim Certification in the form annexed hereto as Exhibit A-2 (or in the
      form
      annexed to the applicable Custodial Agreement as Exhibit A-2, as applicable)
      to
      the effect that, as to each Mortgage Loan listed in the Mortgage Loan Schedule
      (other than any Mortgage Loan prepaid in full or any specifically identified
      in
      such certification as not covered by such certification), (i) all of the
      applicable documents specified in Section 2.01(c) are in its possession and
      (ii)
      such documents have been reviewed by it and appear to relate to such Mortgage
      Loan. The Indenture Trustee, or the applicable Custodian on behalf of the
      Indenture Trustee, shall determine whether such documents are executed and
      endorsed, but shall be under no duty or obligation to inspect, review or examine
      any such documents, instruments, certificates or other papers to determine
      that
      the same are valid, binding, legally effective, properly endorsed, genuine,
      enforceable or appropriate for the represented purpose or that they have
      actually been recorded or are in recordable form or that they are other than
      what they purport to be on their face. Neither the Indenture Trustee nor any
      applicable Custodian shall have any responsibility for verifying the genuineness
      or the legal effectiveness of or authority for any signatures of or on behalf
      of
      any party or endorser.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    (c) If
      in the
      course of the review described in paragraph (b) above the Indenture Trustee
      or
      the applicable Custodian discovers any document or documents constituting a
      part
      of a Mortgage File that is missing, does not appear regular on its face (i.e.,
      is mutilated, damaged, defaced, torn or otherwise physically altered) or appears
      to be unrelated to the Mortgage Loans identified in the Mortgage Loan Schedule,
      as applicable (each, a “Material Defect”), the Indenture Trustee, or the
      applicable Custodian on behalf of the Indenture Trustee, discovering such
      Material Defect shall promptly identify the Mortgage Loan to which such Material
      Defect relates in the Interim Certification delivered to the Depositor and
      the
      Master Servicer. Within 90 days of its receipt of such notice, the Transferor,
      or if the Transferor does not do so, the Depositor shall be required to cure
      such Material Defect (and, in such event, the Depositor shall provide the
      Indenture Trustee with an Officer’s Certificate confirming that such cure has
      been effected). If the applicable Transferor or the Depositor, as applicable,
      does not so cure such Material Defect, the Transferor, or if the Transferor
      does
      not do so, the Depositor shall repurchase the related Mortgage Loan from the
      Trust Estate at the Loan Purchase Price. Within the two-year period following
      the Closing Date, the Depositor may, in lieu of repurchasing a Mortgage Loan
      pursuant to this Section 2.02, substitute for such Mortgage Loan a Qualifying
      Substitute Mortgage Loan subject to the provisions of Section 3.04. The failure
      of the Indenture Trustee or the applicable Custodian to give the notice
      contemplated herein within 45 days after the Closing Date shall not affect
      or
      relieve the Depositor of its obligation to repurchase any Mortgage Loan pursuant
      to this Section 2.02 or any other Section of this Agreement requiring the
      repurchase of Mortgage Loans from the Trust Estate.

     

    (d) Within
      180 days following the Closing Date, the Indenture Trustee, or the applicable
      Custodian, shall deliver to the Depositor, the Master Servicer, the Insurer
      and
      the Indenture Trustee a Final Certification substantially in the form attached
      as Exhibit A-3 (or in the form annexed to the applicable Custodial Agreement
      as
      Exhibit A-3, as applicable) evidencing the completeness of the Mortgage Files
      in
      its possession or control, with any exceptions noted thereto.

     

    (e) Nothing
      in this Agreement shall be construed to constitute an assumption by the Trust
      Estate, the Indenture Trustee, any Custodian or the Noteholders of any
      unsatisfied duty, claim or other liability on any Mortgage Loan or to any
      Mortgagor.

     

    (f) Notwithstanding
      anything to the contrary contained herein, each of the parties hereto
      acknowledges that the applicable Custodian shall perform the applicable review
      of the Mortgage Loans and respective certifications thereof as provided in
      this
      Section 2.02 and the Custodial Agreement.

     

    (g) Upon
      execution of this Agreement, the Depositor hereby delivers to the Indenture
      Trustee and the Indenture Trustee acknowledges receipt of the Mortgage Loan
      Sale
      Agreement, and each Transfer Agreement.

     

    Section
      2.03  Grant
      Clause.  

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    (a) It
      is
      intended that the conveyance by the Depositor to the Issuer of the Mortgage
      Loans, as provided for in Section 2.01 be construed as a sale by the Depositor
      to the Issuer of the Mortgage Loans and other assets in the Trust Estate for
      the
      benefit of the Securityholders and the Insurer. Further, it is not intended
      that
      any such conveyance be deemed to be a pledge of the Mortgage Loans by the
      Depositor to the Issuer to secure a debt or other obligation of the Depositor.
      However, in the event that the Mortgage Loans are held to be property of the
      Depositor or if for any reason this Agreement is held or deemed to create a
      security interest in the Mortgage Loans and other assets in the Trust Estate,
      then it is intended that (a) this Agreement shall also be deemed to be a
      security agreement within the meaning of Articles 8 and 9 of the New York UCC
      (or the Relevant UCC if not the New York UCC); (b) the conveyances provided
      for
      in Section 2.01 shall be deemed to be (1) a grant by the Depositor to the Issuer
      of a security interest in all of the Depositor’s right (including the power to
      convey title thereto), title and interest, whether now owned or hereafter
      acquired, in and to (A) the Mortgage Loans and Mortgage Files, including the
      Credit Line Agreements, the Mortgages, any related insurance policies and all
      other documents in the related Mortgage Files, (B) all amounts payable pursuant
      to the Mortgage Loans in accordance with the terms thereof (C) its rights under
      the Mortgage Loan Sale Agreement, the Transfer Agreements and the Servicing
      Agreements and (D) any and all general intangibles consisting of, arising from
      or relating to any of the foregoing, and all proceeds of the conversion,
      voluntary or involuntary, of the foregoing into cash, instruments, securities
      or
      other property, including without limitation all Liquidation Proceeds, all
      Insurance Proceeds, all amounts from time to time held or invested in the
      Collection Account, the Certificate Account, the Distribution Account, whether
      in the form of cash, instruments, securities or other property and (2) an
      assignment by the Depositor to the Issuer of any security interest in any and
      all of the Depositor’s right (including the power to convey title thereto),
      title and interest, whether now owned or hereafter acquired, in and to the
      property described in the foregoing clauses (1)(A) through (D); (c) the
      possession by the Indenture Trustee or any other agent of the Issuer of Credit
      Line Agreements, and such other items of property as constitute instruments,
      money, negotiable documents or chattel paper shall be deemed to be “possession
      by the secured party,” or possession by a purchaser or a person designated by
      such secured party, for purposes of perfecting the security interest pursuant
      to
      the New York UCC and any other Relevant UCC (including, without limitation,
      Section 9-313, 8-313 or 8-321 thereof); and (d) notifications to persons holding
      such property, and acknowledgments, receipts or confirmations from persons
      holding such property, shall be deemed notifications to, or acknowledgments,
      receipts or confirmations from, financial intermediaries, bailees or agents
      (as
      applicable) of the Issuer for the purpose of perfecting such security interest
      under applicable law.

     

    (b) The
      Depositor and, at the Depositor’s direction, the Issuer shall, to the extent
      consistent with this Agreement, take such reasonable actions as may be necessary
      to ensure that, if this Agreement were deemed to create a security interest
      in
      the Mortgage Loans and the other property of the Trust Estate, such security
      interest would be deemed to be a perfected security interest of first priority
      under applicable law and will be maintained as such throughout the term of
      this
      Agreement. Without limiting the generality of the foregoing, the Depositor
      shall
      prepare and deliver to the Issuer, and the Issuer shall forward for filing,
      or
      shall cause to be forwarded for filing, at the expense of the Depositor, all
      filings necessary to maintain the effectiveness of any original filings
      necessary under the Relevant UCC to perfect the Issuer’s security interest in or
      lien on the Mortgage Loans as evidenced by an Officer’s Certificate of the
      Depositor, including without limitation (x) continuation statements, and (y)
      such other statements as may be occasioned by (1) any change of name of the
      Seller, the Depositor or the Issuer (such preparation and filing shall be at
      the
      expense of the Owner Trustee, if occasioned by a change in the Owner Trustee’s
      name), (2) any change of location of the place of business or the chief
      executive office of the Seller or the Depositor or (3) any transfer of any
      interest of the Seller or the Depositor in any Mortgage Loan.

     

    
      
        
        

      

      
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    Neither
      the Depositor nor the Issuer shall organize under the law of any jurisdiction
      other than the State under which each is organized as of the Closing Date
      (whether changing its jurisdiction of organization or organizing under an
      additional jurisdiction) without giving 30 days prior written notice of such
      action to its immediate and mediate transferee, including the Indenture Trustee
      and the Insurer. Before effecting such change, each of the Depositor or the
      Issuer proposing to change its jurisdiction of organization shall prepare and
      file in the appropriate filing office any financing statements or other
      statements necessary to continue the perfection of the interests of its
      immediate and mediate transferees, including the Indenture Trustee, in the
      Mortgage Loans. In connection with the transactions contemplated by this
      Agreement and the Indenture, each of the Depositor and the Issuer authorizes
      its
      immediate or mediate transferee, including the Indenture Trustee, to file in
      any
      filing office any initial financing statements, any amendments to financing
      statements, any continuation statements, or any other statements or filings
      described in this Section 2.03(b).

     

    (c) The
      Depositor shall not take any action inconsistent with the sale by the Depositor
      of all of its right, title and interest in and to the Trust Estate and shall
      indicate or shall cause to be indicated in its records and records held on
      its
      behalf that ownership of each Mortgage Loan and the other property of the Trust
      is held by the Issuer. In addition, the Depositor shall respond to any inquiries
      from third parties with respect to ownership of a Mortgage Loan or any other
      property of the Trust Estate by stating that it is not the owner of such
      Mortgage Loan and that ownership of such Mortgage Loan or other property of
      the
      Trust Estate is held by the Issuer on behalf of the Securityholders and the
      Insurer.

     

    Section
      2.04  Further
      Encumbrance of Trust Property.

     

    (a) Immediately
      upon the conveyance to the Issuer by the Depositor of any item of the Trust
      Property pursuant to Section 2.01, all right, title and interest of the
      Depositor in and to such item of Trust Property shall terminate, and all such
      right, title and interest shall vest in the Issuer, in accordance with the
      Trust
      Agreement and Sections 3802 and 3805 of the Delaware Statutory Trust Act (12
      Del. Code, § 3801 et seq.).

     

    (b) Immediately
      upon the vesting of the Trust Property in the Trust, the Issuer shall have
      the
      sole right to pledge or otherwise encumber, such Trust Property. Pursuant to
      the
      Indenture and contemporaneously with such property vesting in the Issuer
      pursuant to (a) above, the Issuer shall grant a security interest in the Trust
      Property to secure the repayment of the Issuer Secured Obligations. The Residual
      Certificates shall represent the beneficial ownership interest in the Trust
      Property, and the Residual Certificateholders shall be entitled to receive
      distributions with respect thereto as set forth herein and in the Indenture
      and
      Trust Agreement.

     

    
      
        
        

      

      
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    (c) Prior
      to
      the payment in full on the Notes, the payment of all amounts due to the Insurer
      under the Insurance Agreement, the termination of the Policy (as defined
      therein) and the surrender of the Policy by the Indenture Trustee to the
      Insurer, the Indenture Trustee shall hold the Trust Property on behalf of the
      Noteholders and the Insurer. Following the payment in full of the Notes and
      the
      payment of all amounts due to the Insurer under the Insurance Agreement, and
      the
      release and discharge of the Indenture, all covenants of the Issuer under
      Article III of the Indenture shall, until payment in full of the Residual
      Certificates, remain as covenants of the Issuer for the benefit of the Residual
      Certificateholders, enforceable by the Residual Certificateholders to the same
      extent as such covenants were enforceable by the Insurer and the Noteholders
      prior to the discharge of the Indenture. Any rights of the Indenture Trustee
      under the Indenture, following the discharge of the Indenture, shall vest in
      the
      Residual Certificateholders.

     

     

    ARTICLE
      III

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      3.01  Representations
      and Warranties of the Depositor. 

     

    (a) The
      Depositor hereby represents and warrants to the Master Servicer, the Issuer,
      the
      Insurer and the Indenture Trustee, for the benefit of Securityholders, as of
      the
      Closing Date or such other date as is specified, that:

     

    (i)
       This
      Agreement constitutes a legal, valid and binding obligation of the Depositor,
      enforceable against the Depositor in accordance with its terms, except as
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws now or hereafter in effect
      affecting the enforcement of creditors’ rights in general and except as such
      enforceability may be limited by general principles of equity (whether
      considered in a proceeding at law or in equity);

     

    (ii)
       Immediately
      prior to the transfer by the Depositor to the Issuer of each Mortgage Loan,
      the
      Depositor had good and equitable title to each Mortgage Loan (insofar as such
      title was conveyed to it by the Seller) subject to no prior lien, claim,
      participation interest, mortgage, security interest, pledge, charge or other
      encumbrance or other interest of any nature; 

     

    (iii)
       As
      of the
      Closing Date, the Depositor has transferred all right, title and interest in
      the
      Mortgage Loans to the Issuer; 

     

    (iv)
       The
      Depositor has not transferred the Mortgage Loans to the Issuer with any intent
      to hinder, delay or defraud any of its creditors;

     

    (v)
       The
      Depositor has been duly organized and is validly existing as a corporation
      in
      good standing under the laws of Delaware, with full power and authority to
      own
      its assets and conduct its business as presently being conducted;

     

    
      
        
        

      

      
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    (vi)
       [The
      Mortgage Loans constitute either “promissory notes” or “general intangibles”
within the meaning of the applicable UCC;] 

     

    (vii)
       All
      consents and approvals required by the terms of each Mortgage Loan to the sale
      of such Mortgage Loan hereunder to the Indenture Trustee have been
      obtained;

     

    (viii)
       The
      Depositor has caused or will have caused, within ten days, the filing of all
      appropriate financing statements in the proper filing office in the appropriate
      jurisdictions under applicable law in order to perfect the security interest
      in
      the Mortgage Loans granted to the Indenture Trustee hereunder;

     

    (ix)
       Other
      than the security interest granted to the Indenture Trustee pursuant to the
      Indenture, the Depositor has not pledged, assigned, sold, granted a security
      interest in, or otherwise conveyed any of the Mortgage Loans. The Depositor
      has
      not authorized the filing of and is not aware of any financing statements
      against the Depositor that include a description of collateral covering the
      Mortgage Loans other than any financing statement relating to the security
      interest granted to the Indenture Trustee hereunder or that has been terminated.
      The Depositor is not aware of any judgment or tax lien filings against the
      Depositor;

     

    (x)
       The
      Credit Line Agreements that constitute or evidence the Mortgage Loans do not
      have any marks or notations indicating that they have been pledged, assigned
      or
      otherwise conveyed to any Person other than the Indenture Trustee. All financing
      statements filed or to be filed in favor of the Indenture Trustee in connection
      herewith describing the Mortgage Loans contain a statement to the following
      effect: “A purchase of or security interest in any collateral described in this
      financing statement will violate the rights of the Indenture Trustee;”
and

     

    (xi)
       On
      the
      Closing Date, the Issuer will be a Qualifying SPE.

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      (i)
      through (xi) above shall survive the transfer of the Mortgage Loans to the
      Trust.

     

    (b) The
      representations and warranties of each Transferor with respect to the related
      Mortgage Loans in the applicable Transfer Agreement, which have been assigned
      to
      the Issuer hereunder, were made as of the date specified in the applicable
      Transfer Agreement (or underlying agreement, if such Transfer Agreement is
      in
      the form of an assignment of a prior agreement). The Seller will make such
      representations and warranties as specified in the Mortgage Loan Sale Agreement
      as of the Closing Date. To the extent that any fact, condition or event with
      respect to a Mortgage Loan constitutes a breach of both (i) a
      representation or warranty of the applicable Transferor under the applicable
      Transfer Agreement and (ii) a representation or warranty of the Seller under
      the
      Mortgage Loan Sale Agreement (other than the representations and warranties
      set
      forth in Section 1.04(b)(i) of the Mortgage Loan Sale Agreement which shall
      be
      deemed to be made solely by the Seller), the only right or remedy of the Master
      Servicer, the Issuer, the Indenture Trustee or any Securityholder hereunder
      shall be their rights to enforce the obligations of the applicable Transferor
      under any applicable representation or warranty made by it. Each of the Master
      Servicer, the Issuer, the Indenture Trustee acknowledges that, except as
      provided in the parenthetical in the immediately preceding sentence or as
      otherwise provided in the Mortgage Loan Sale Agreement, the Seller shall not
      have any obligation or liability with respect to any breach of a representation
      or warranty made by it with respect to the Mortgage Loans sold by it if the
      fact, condition or event constituting such breach also constitutes a breach
      of a
      representation or warranty made by the applicable Transferor in the applicable
      Transfer Agreement, without regard to whether such Transferor fulfills its
      contractual obligations in respect of such representation or warranty. Each
      of
      the Master Servicer, the Issuer, and the Indenture Trustee further acknowledges
      that the Depositor shall have no obligation or liability with respect to any
      breach of any representation or warranty with respect to the Mortgage Loans
      (except as set forth in Section 3.01(a)(vi)) under any circumstances.

     

    
      
        
        

      

      
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    (c) It
      is
      understood and agreed that the representations and warranties of the Depositor
      set forth in Sections 3.01(a)(i) through (vi) shall survive the execution and
      delivery of this Agreement. The Depositor shall indemnify the Master Servicer,
      the Indenture Trustee [, the Insurer] and the Issuer and hold each of the Master
      Servicer, the Indenture Trustee [, the Insurer] and the Issuer harmless against
      any loss, damages, penalties, fines, forfeitures, 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 Depositor’s representations and warranties contained in Sections 3.01(a)(i)
      through (vi) hereof. It is understood and agreed that the enforcement of the
      obligation of the Depositor set forth in this Section to indemnify the Master
      Servicer, the Indenture Trustee [, the Insurer] and the Issuer as provided
      in
      this Section constitutes the sole remedy of the Indenture Trustee, the Master
      Servicer and the Issuer respecting a breach by the Depositor of the
      representations and warranties in Sections 3.01(a)(i) through (vi)
      hereof.

     

    Any
      cause
      of action against the Depositor relating to or arising out of the breach of
      the
      representations and warranties made in Sections 3.01(a)(i) through (vi) hereof
      shall accrue upon discovery of such breach by the Issuer, the Master Servicer
      [,
      the Insurer] or the Indenture Trustee.

     

    Section
      3.02  Representations
      and Warranties of the Master Servicer.

     

    (a) The
      Master Servicer hereby represents and warrants to the Depositor, the Issuer,
      the
      Insurer and the Indenture Trustee, for the benefit of the Securityholders,
      as of
      the Closing Date that:

     

    (i)
       it
      is
      validly existing and in good standing under the laws of the State of its
      incorporation, and as Master Servicer has full power and authority to transact
      any and all business contemplated by this Agreement and to execute, deliver
      and
      comply with its obligations under the terms of this Agreement, the execution,
      delivery and performance of which have been duly authorized by all necessary
      corporate action on the part of the Master Servicer;

     

    (ii)
       the
      execution and delivery of this Agreement by the Master Servicer and its
      performance and compliance with the terms of this Agreement will not (A) violate
      the Master Servicer’s charter or bylaws, (B) violate any law or regulation or
      any administrative decree or order to which it is subject or (C) constitute
      a
      default (or an event which, with notice or lapse of time, or both, would
      constitute a default) under, or result in the breach of, any material contract,
      agreement or other instrument to which the Master Servicer is a party or by
      which it is bound or to which any of its assets are subject, which violation,
      default or breach would materially and adversely affect the Master Servicer’s
      ability to perform its obligations under this Agreement;

     

    
      
        
        

      

      
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    (iii)
       this
      Agreement constitutes, assuming due authorization, execution and delivery hereof
      by the other respective parties hereto, a legal, valid and binding obligation
      of
      the Master Servicer, enforceable against it in accordance with the terms hereof,
      except as such enforcement may be limited by bankruptcy, insolvency,
      reorganization, moratorium and other laws affecting the enforcement of
      creditors’ rights in general, and by general equity principles (regardless of
      whether such enforcement is considered in a proceeding in equity or at
      law);

     

    (iv)
       the
      Master Servicer is not in default with respect to any order or decree of any
      court or any order or regulation of any federal, state, municipal or
      governmental agency to the extent that any such default would materially and
      adversely affect its performance hereunder;

     

    (v)
       the
      Master Servicer is not a party to or bound by any agreement or instrument or
      subject to any charter provision, bylaw or any other corporate restriction
      or
      any judgment, order, writ, injunction, decree, law or regulation that may
      materially and adversely affect its ability as Master Servicer to perform its
      obligations under this Agreement or that requires the consent of any third
      person to the execution of this Agreement or the performance by the Master
      Servicer of its obligations under this Agreement; 

     

    (vi)
       no
      litigation is pending or, to the best of the Master Servicer’s knowledge,
      threatened against the Master Servicer which would prohibit its entering into
      this Agreement or performing its obligations under this Agreement;

     

    (vii)
       the
      Master Servicer, or an affiliate thereof the primary business of which is the
      servicing of conventional residential mortgage loans, is a Fannie Mae- or
      FHLMC-approved seller/servicer;

     

    (viii)
       no
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Master
      Servicer of or compliance by the Master Servicer with this Agreement or the
      consummation of the transactions contemplated by this Agreement, except for
      such
      consents, approvals, authorizations and orders (if any) as have been
      obtained;

     

    (ix)
       the
      consummation of the transactions contemplated by this Agreement are in the
      ordinary course of business of the Master Servicer;

     

    
      
        
        

      

      
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    (x)
       the
      Master Servicer has obtained an Errors and Omissions Insurance Policy and a
      Fidelity Bond in accordance with Section 4.02 each of which is in full force
      and
      effect, and each of which provides at least such coverage as is required
      hereunder; and

     

    (xi)
       the
      information about the Master Servicer under the heading “The Master Servicer” in
      the Prospectus relating to the Master Servicer does not include an untrue
      statement of a material fact and does not omit to state a material fact, with
      respect to the statements made, necessary in order to make the statements in
      light of the circumstances under which they were made not
      misleading.

     

    (b) It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 3.02 shall survive the execution and delivery of this Agreement. The
      Master Servicer shall indemnify the Depositor, the Issuer [, the Insurer] and
      the Indenture Trustee and hold them harmless against any loss, damages,
      penalties, fines, forfeitures, 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 Master Servicer’s
      representations and warranties contained in Section 3.02(a). It is understood
      and agreed that the enforcement of the obligation of the Master Servicer set
      forth in this Section to indemnify the Depositor, the Issuer [, the Insurer]
      and
      the Indenture Trustee as provided in this Section constitutes the sole remedy
      (other than as set forth in Section 6.01) of the Depositor, the Issuer [, the
      Insurer] and the Indenture Trustee, respecting a breach of the foregoing
      representations and warranties. Such indemnification shall survive any
      termination of the Master Servicer as Master Servicer hereunder, and any
      termination of this Agreement.

     

    Any
      cause
      of action against the Master Servicer relating to or arising out of the breach
      of any representations and warranties made in this Section shall accrue upon
      discovery of such breach by the Depositor, the Master Servicer, the Indenture
      Trustee [, the Insurer] or the Issuer or notice thereof by any one of such
      parties to the other parties. Notwithstanding anything in this Agreement to
      the
      contrary, the Master Servicer shall not be liable for special, indirect or
      consequential losses or damages of any kind whatsoever (including, but not
      limited to, lost profits).

     

    Section
      3.03  Discovery
      of Breach.
      It is
      understood and agreed that the representations and warranties (i) set forth
      in
      Section 3.01, (ii) of the Seller set forth in the Mortgage Loan Sale Agreement
      and assigned to the Issuer by the Depositor hereunder and (iii) of each
      Transferor and of each Servicer assigned by the Seller to the Depositor pursuant
      to the Mortgage Loan Sale Agreement and assigned to the Issuer by the Depositor
      hereunder, shall be pledged by the Issuer to the Indenture Trustee under the
      Indenture and shall each survive delivery of the Mortgage Files and the
      Assignment of Mortgage of each Mortgage Loan to the Indenture Trustee and shall
      continue throughout the term of this Agreement. Upon discovery by any of the
      Depositor, the Master Servicer or the Indenture Trustee of a breach of any
      of
      such representations and warranties that adversely and materially affects the
      value of the related Mortgage Loan, the party discovering such breach shall
      give
      prompt written notice to the other parties. Within 90 days of the discovery
      of a
      breach of any representation or warranty given by any Transferor or the Seller
      and assigned to the Indenture Trustee, such Transferor or the Seller, as
      applicable, shall either (a) cure such breach in all material respects, (b)
      repurchase such Mortgage Loan or any property acquired in respect thereof from
      the Issuer at the Loan Purchase Price (or, with respect to Mortgage Loans as
      to
      which there is a breach of a representation or warranty set forth in Section
      1.04(b)(v) of the Mortgage Loan Sale Agreement, at the purchase price therefor
      paid by the Seller under the Mortgage Loan Sale Agreement) or (c) with respect
      to the Mortgage Loans, within the two-year period following the Closing Date,
      substitute a Qualifying Substitute Mortgage Loan for the affected Mortgage
      Loan.
      In the event of discovery of a breach of any representation and warranty of
      any
      Transferor assigned to the Indenture Trustee, the Indenture Trustee shall
      enforce its rights under the applicable Transfer Agreement and the Mortgage
      Loan
      Sale Agreement for the benefit of Securityholders and the Insurer. As provided
      in the Mortgage Loan Sale Agreement, if any Transferor substitutes a mortgage
      loan for a Deleted Mortgage Loan pursuant to the related Transfer Agreement
      and
      such substitute mortgage loan is not a Qualifying Substitute Mortgage Loan,
      then
      pursuant to the terms of the Mortgage Loan Sale Agreement the Seller will,
      in
      exchange for such substitute mortgage loan, (i) pay to the Trust Estate the
      applicable Loan Purchase Price for the affected Mortgage Loan or (ii) within
      two
      years of the Closing Date, substitute a Qualifying Substitute Mortgage
      Loan.

     

    
      
        
        

      

      
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    Section
      3.04  Repurchase,
      Purchase or Substitution of Mortgage Loans.  

     

    (a) With
      respect to any Mortgage Loan repurchased by Seller pursuant to the Mortgage
      Loan
      Sale Agreement or by the Transferor pursuant to the applicable Transfer
      Agreement, the principal portion of the funds received by the Indenture Trustee
      in respect of such repurchase of a Mortgage Loan will be considered a Principal
      Prepayment and the Loan Purchase Price shall be deposited in the Collection
      Account. The Indenture Trustee, upon receipt of the full amount of the Loan
      Purchase Price for a Deleted Mortgage Loan, or upon notification from the
      related Custodian of receipt of the Mortgage File for a Qualifying Substitute
      Mortgage Loan substituted for a Deleted Mortgage Loan (and receipt by the
      Indenture Trustee of any applicable Substitution Amount), shall release or
      cause
      to be released and reassign to the Depositor, the Seller or the Transferor
      as
      applicable, the related Mortgage File for the Deleted Mortgage Loan and shall
      execute and deliver such instruments of transfer or assignment, in each case
      without recourse, representation or warranty, as shall be necessary to vest
      in
      such party or its designee or assignee title to any Deleted Mortgage Loan
      released pursuant hereto, free and clear of all security interests, liens and
      other encumbrances created by this Agreement and the Indenture, which
      instruments shall be prepared by the related Servicer and the Indenture Trustee
      shall have no further responsibility with respect to the Mortgage File relating
      to such Deleted Mortgage Loan. 

     

    (b) With
      respect to each Qualifying Substitute Mortgage Loan to be delivered to the
      Indenture Trustee (or its custodian) in exchange for a Deleted Mortgage Loan:
      (i) the related Transferor or the Seller, as applicable, must deliver to the
      Indenture Trustee (or a Custodian) the Mortgage File for the Qualifying
      Substitute Mortgage Loan containing the documents set forth in Section 2.01(b)
      along with a written certification certifying as to the delivery of such
      Mortgage File and containing the granting language set forth in Section 2.01(a);
      and (ii) the related Transferor or the Seller, as applicable, will be deemed
      to
      have made as of the date of such transfer, with respect to such Qualifying
      Substitute Mortgage Loan, each of the representations and warranties made by
      it
      with respect to the related Deleted Mortgage Loan. As soon as practicable after
      the delivery of any Qualifying Substitute Mortgage Loan hereunder, the Indenture
      Trustee, at the expense of the Depositor and at the direction and with the
      cooperation of the applicable Servicer, shall (i) with respect to a
      Qualifying Substitute Mortgage Loan that is a Non-MERS Mortgage Loan, cause
      the
      Assignment of Mortgage to be recorded by the applicable Servicer if required
      pursuant to Section 2.01(c), or (ii) with respect to a Qualifying Substitute
      Mortgage Loan that is a MERS Mortgage Loan, cause to be taken such actions
      as
      are necessary to cause the Indenture Trustee (on behalf of the Issuer) to be
      clearly identified as the owner of each such Mortgage Loan on the records of
      MERS if required pursuant to Section 2.01(c).

     

    
      
        
        

      

      
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    ARTICLE
      IV

     

    ADMINISTRATION
      AND SERVICING OF MORTGAGE LOANS

    BY
      THE
      MASTER SERVICER

     

    Section
      4.01  Duties
      of the Master Servicer. 
      For and
      on behalf of the Depositor, the Issuer, the Indenture Trustee, the Insurer
      and
      the Securityholders, the Master Servicer shall master service the Mortgage
      Loans
      in accordance with the provisions of this Agreement and the provisions of each
      Servicing Agreement. 

     

    Section
      4.02  Master
      Servicer Fidelity Bond and Master Servicer Errors and Omissions Insurance
      Policy.

     

    (a) The
      Master Servicer, at its expense, shall maintain in effect a Master Servicer
      Fidelity Bond and a Master Servicer Errors and Omissions Insurance Policy,
      affording coverage with respect to all directors, officers, employees and other
      Persons acting on such Master Servicer’s behalf, and covering errors and
      omissions in the performance of the Master Servicer’s obligations hereunder. The
      Master Servicer Errors and Omissions Insurance Policy and the Master Servicer
      Fidelity Bond shall be in such form and amount that would be consistent with
      coverage customarily maintained by master servicers of mortgage loans similar
      to
      the Mortgage Loans and shall by its terms not be cancelable without thirty
      days’
prior written notice to the Indenture Trustee and the Insurer. The Master
      Servicer shall provide the Indenture Trustee and the Insurer, upon request,
      with
      a copy of such policy and fidelity bond. The Master Servicer shall
      (i) require each Servicer to maintain an Errors and Omissions Insurance
      Policy and a Servicer Fidelity Bond in accordance with the provisions of the
      applicable Servicing Agreement, (ii) cause each Servicer to provide to the
      Master Servicer certificates evidencing that such policy and bond is in effect
      and to furnish to the Master Servicer any notice of cancellation, non-renewal
      or
      modification of the policy or bond received by it, as and to the extent provided
      in the applicable Servicing Agreement, and (iii) furnish copies of such policies
      and of the certificates and notices referred to in clause (ii) to the Indenture
      Trustee and the Insurer upon request.

     

    (b) The
      Master Servicer shall promptly report to the Indenture Trustee and the Insurer
      any material changes that may occur in the Master Servicer’s Fidelity Bond or
      the Master Servicer Errors and Omissions Insurance Policy and shall furnish
      to
      the Indenture Trustee and the Insurer, on request, certificates evidencing
      that
      such bond and insurance policy are in full force and effect. The Master Servicer
      shall promptly report to the Indenture Trustee and the Insurer all cases of
      embezzlement or fraud, if such events involve funds relating to the Mortgage
      Loans. The total losses, regardless of whether claims are filed with the
      applicable insurer or surety, shall be disclosed in such reports together with
      the amount of such losses covered by insurance. If a bond or insurance claim
      report is filed with any of such bonding companies or insurers, the Master
      Servicer shall promptly furnish a copy of such report to the Indenture Trustee
      and the Insurer. Any amounts relating to the Mortgage Loans collected by the
      Master Servicer under any such bond or policy shall be promptly remitted by
      the
      Master Servicer to the Indenture Trustee for deposit into the Distribution
      Account. Any amounts relating to the Mortgage Loans collected by the applicable
      Servicer under any such bond or policy shall be remitted to the Master Servicer
      to the extent provided in the applicable Servicing Agreement.

     

    
      
        
        

      

      
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    Section
      4.03  Master
      Servicer’s Financial Statements and Related Information. 
      For each
      year this Agreement is in effect, the Master Servicer shall deliver to the
      Indenture Trustee, the Insurer, each Rating Agency and the Depositor a copy
      of
      its annual unaudited financial statements on or prior to May 31 of each
      year, beginning May 31, 20[__]. Such financial statements shall include a
      balance sheet, income statement, statement of retained earnings, statement
      of
      additional paid-in capital, statement of changes in financial position and
      all
      related notes and schedules and shall be in comparative form, certified by
      a
      nationally recognized firm of Independent Accountants to the effect that such
      statements were examined and prepared in accordance with generally accepted
      accounting principles applied on a basis consistent with that of the preceding
      year.

     

    Section
      4.04  Power
      to Act; Procedures.

     

    (a) The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority, subject to the provisions of this Agreement, and each
      Servicer shall have full power and authority (to the extent provided in the
      applicable Servicing Agreement) to do any and all things that it may deem
      necessary or desirable in connection with the servicing and administration
      of
      the Mortgage Loans, including but not limited to the power and authority (i)
      to
      execute and deliver, on behalf of the Securityholders and the Indenture Trustee,
      customary consents or waivers and other instruments and documents, (ii) to
      consent to transfers of any Mortgaged Property and assumptions of the Credit
      Line Agreements and related Mortgages, (iii) to collect any Insurance Proceeds
      and Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion
      of the ownership of the Mortgaged Property securing any Mortgage Loan, in each
      case, in accordance with the provisions of this Agreement and the applicable
      Servicing Agreement, as applicable; provided that the Master Servicer shall
      not
      take, or knowingly permit any Servicer to take, any action that is inconsistent
      with or prejudices the interests of the Issuer, the Insurer or the
      Securityholders in any Mortgage Loan or the rights and interests of the
      Depositor, the Indenture Trustee, the Insurer and the Securityholders under
      this
      Agreement and the Indenture. The Master Servicer shall represent and protect
      the
      interests of the Issuer, the Insurer and the Securityholders in the same manner
      as it protects its own interests in mortgage loans in its own portfolio in
      any
      claim, proceeding or litigation regarding a Mortgage Loan. Without limiting
      the
      generality of the foregoing, the Master Servicer in its own name or in the
      name
      of a Servicer, and each Servicer, to the extent such authority is delegated
      to
      such Servicer under the applicable Servicing Agreement, is hereby authorized
      and
      empowered by the Indenture Trustee when the Master Servicer or such Servicer,
      as
      the case may be, believes it appropriate in its best judgment and in accordance
      with Accepted Servicing Practices and the applicable Servicing Agreement, to
      execute and deliver, on behalf of itself and the Securityholders, the Indenture
      Trustee or any of them, 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 with respect to the Mortgaged Properties.
      The Indenture Trustee shall furnish the Master Servicer, upon request, with
      any
      powers of attorney empowering the Master Servicer or any Servicer to execute
      and
      deliver instruments of satisfaction or cancellation, or of partial or full
      release or discharge, and to foreclose upon or otherwise liquidate Mortgaged
      Property, and to appeal, prosecute or defend in any court action relating to
      the
      Mortgage Loans or the Mortgaged Property, in accordance with the applicable
      Servicing Agreement and this Agreement, and the Indenture Trustee shall execute
      and deliver such other documents as the Master Servicer may request, necessary
      or appropriate to enable the Master Servicer to master service the Mortgage
      Loans and carry out its duties hereunder, and to allow each Servicer to service
      the Mortgage Loans in each case in accordance with Accepted Servicing Practices
      (and the Indenture Trustee shall have no liability for misuse of any such powers
      of attorney by the Master Servicer or any Servicer). If the Master Servicer
      or
      the Indenture Trustee has been advised that it is likely that the laws of the
      state in which action is to be taken prohibit such action if taken in the name
      of the Indenture Trustee or that the Indenture Trustee would be adversely
      affected under the “doing business” or tax laws of such state if such action is
      taken in its name, then upon request of the Indenture Trustee, the Master
      Servicer shall join with the Indenture Trustee in the appointment of a
      co-trustee pursuant to Section [___] of the Indenture. In no event shall the
      Master Servicer, without the Indenture Trustee’s written consent: (i) initiate
      any action, suit or proceeding solely under the Indenture Trustee’s name without
      indicating the Master Servicer’s representative capacity or (ii) take any action
      with the intent to cause, and which actually does cause, the Indenture Trustee
      to be registered to do business in any state. The Master Servicer shall
      indemnify the Indenture Trustee for any and all costs, liabilities and expenses
      incurred by the Indenture Trustee in connection with the negligent or willful
      misuse of such powers of attorney by the Master Servicer. In the performance
      of
      its duties hereunder, the Master Servicer shall be an independent contractor
      and
      shall not, except in those instances where it is taking action in the name
      of
      the Indenture Trustee, be deemed to be the agent of the Indenture
      Trustee.

     

    
      
        
        

      

      
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    (b) In
      master
      servicing and administering the Mortgage Loans, the Master Servicer shall employ
      procedures and exercise the same care that it customarily employs and exercises
      in master servicing and administering loans for its own account, giving due
      consideration to Accepted Servicing Practices where such practices do not
      conflict with this Agreement. Consistent with the foregoing, the Master Servicer
      may, and may permit any Servicer to, in its discretion (i) waive any late
      payment charge and (ii) extend the due dates for payments due on a Credit Line
      Agreement for a period not greater than 120 days; provided,
      however,
      that
      the maturity of any Mortgage Loan shall not be extended past the date on which
      the final payment is due on the latest maturing Mortgage Loan as of the Cut-off
      Date. In the event of any extension described in clause (ii) above, the Master
      Servicer shall make or cause such Servicer (if required by the applicable
      Servicing Agreement) to make Advances on the related Mortgage Loan in accordance
      with the provisions of Section 5.09 on the basis of the amortization schedule
      of
      such Mortgage Loan without modification thereof by reason of such extension.
      

     

    
      
        
        

      

      
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    Section
      4.05  Enforcement
      of Servicer’s and Master Servicer’s Obligations.

     

    (a) Each
      Servicing Agreement requires the applicable Servicer, respectively, to service
      the Mortgage Loans in accordance with the provisions thereof. References in
      this
      Agreement to actions taken or to be taken by the Master Servicer include actions
      taken or to be taken by a Servicer on behalf of the Master Servicer. Any fees
      and other amounts payable to a Servicer shall be deducted from amounts remitted
      to the Master Servicer by such Servicer (to the extent permitted by the
      applicable Servicing Agreement) and shall not be an obligation of the Issuer,
      the Indenture Trustee or the Master Servicer.

     

    (b) The
      Master Servicer shall not be required to (i) take any action with respect to
      the
      servicing of any Mortgage Loan that the related Servicer is not required to
      take
      under the related Servicing Agreement and (ii) cause a Servicer to take any
      action or refrain from taking any action if the related Servicing Agreement
      does
      not require such Servicer to take such action or refrain from taking such
      action; in both cases notwithstanding any provision of this Agreement that
      requires the Master Servicer to take such action or cause such Servicer to
      take
      such action.

     

    (c) The
      Master Servicer, for the benefit of the Issuer, the Indenture Trustee, the
      Insurer and the Securityholders, shall enforce the obligations of each Servicer
      under the related Servicing Agreement, and shall at the direction of the
      Insurer, in the event that a Servicer fails to perform its obligations in
      accordance therewith, terminate the rights and obligations of such Servicer
      thereunder and either act as servicer of the related Mortgage Loans or cause
      the
      other parties hereto to enter into a Servicing Agreement (and such parties
      hereby agree to execute and deliver any such successor Servicing Agreement),
      with a successor Servicer which is acceptable to the Insurer. Such enforcement,
      including, without limitation, the legal prosecution of claims, termination
      of
      Servicing Agreements and the pursuit of other appropriate remedies, shall be
      in
      such form and carried out to such an extent and at such time as the Master
      Servicer, in its good faith business judgment, would require were it the owner
      of the related Mortgage Loans and shall be in a manner acceptable to the
      Insurer. The Master Servicer shall pay the costs of such enforcement at its
      own
      expense, and shall be reimbursed therefor initially (i) from a general recovery
      resulting from such enforcement only to the extent, if any, that such recovery
      exceeds all amounts due in respect of the related Mortgage Loans, (ii) from
      a
      specific recovery of costs, expenses or attorneys’ fees against the party
      against whom such enforcement is directed, and then, (iii) to the extent that
      such amounts are insufficient to reimburse the Master Servicer for the costs
      of
      such enforcement, from the Collection Account.

     

    Section
      4.06  Collection
      of Taxes, Assessments and Similar Items.

     

    (a) To
      the
      extent provided in the applicable Servicing Agreement, the Master Servicer
      shall
      cause each Servicer to establish and maintain one or more custodial accounts
      at
      a depository institution (which may be a depository institution with which
      the
      Master Servicer or any Servicer establishes accounts in the ordinary course
      of
      its servicing activities), the accounts of which are insured to the maximum
      extent permitted by the FDIC (each, an “Escrow Account”) and to deposit therein
      any collections of amounts received with respect to amounts due for taxes,
      assessments, water rates, standard hazard insurance policy premiums or any
      comparable items for the account of the Mortgagors. Withdrawals from any Escrow
      Account may be made (to the extent amounts have been escrowed for such purpose)
      only in accordance with the applicable Servicing Agreement. Each Servicer shall
      be entitled to all investment income not required to be paid to Mortgagors
      on
      any Escrow Account maintained by such Servicer. The Master Servicer shall make
      (or cause to be made) to the extent provided in the applicable Servicing
      Agreement advances to the extent necessary in order to effect timely payment
      of
      taxes, water rates, assessments, Standard Hazard Insurance Policy premiums
      or
      comparable items in connection with the related Mortgage Loan (to the extent
      that the Mortgagor is required, but fails, to pay such items), provided that
      it
      or the applicable Servicer has determined that the funds so advanced are
      recoverable from escrow payments, reimbursement pursuant to Section 4.08 or
      otherwise.

     

    
      
        
        

      

      
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    (b) Costs
      incurred by the Master
      Servicer or by any Servicer in effecting the timely payment of taxes and
      assessments on the properties subject to the Mortgage Loans may be added to
      the
      amount owing under the related Credit Line Agreement where the terms of the
      Credit Line Agreement so permit; provided,
      however,
      that the
      addition of any such cost shall not be taken into account for purposes of
      calculating the distributions to be made to Securityholders. Such costs, to
      the
      extent that they are unanticipated, extraordinary costs, and not ordinary or
      routine costs shall be recoverable as a Servicing Advance by the Master Servicer
      pursuant to Section 4.08.

     

    Section
      4.07  Collection
      Account.

     

    (a) On
      the
      Closing Date, the Master Servicer shall open and shall thereafter maintain
      a
      segregated account held in trust in the name of the Securities Intermediary
      (the
“Collection Account”), entitled “Collection Account, [_________], as indenture
      trustee, in trust for Holders of the Thornburg Mortgage Securities Trust [
      ],
      Home Equity Loan Asset-Backed Notes, Series
      20[__]-[__].”
The
      Collection Account shall relate solely to the Securities issued by the Issuer,
      and funds in such Collection Account shall not be commingled with any other
      monies.

     

    (b) The
      Collection Account shall be an Eligible Account. If an existing Collection
      Account ceases to be an Eligible Account, the Master Servicer shall establish
      a
      new Collection Account that is an Eligible Account within 10 days and transfer
      all funds and investment property on deposit in such existing Collection Account
      into such new Collection Account.

     

    (c) The
      Master Servicer shall give to the Indenture Trustee prior written notice of
      the
      name and address of the depository institution at which the Collection Account
      is maintained and the account number of such Collection Account. The Master
      Servicer shall take such actions as are necessary to cause the depository
      institution holding the Collection Account to hold such account in the name
      of
      the Indenture Trustee under this Agreement. On each Deposit Date, the entire
      amount on deposit in the Collection Account relating to the Mortgage Loans
      (subject to permitted withdrawals set forth in Section 4.08), other than amounts
      not included in the Total Distribution Amount for such Payment Date, shall
      be
      remitted to the Indenture Trustee for deposit into the Distribution Account
      by
      wire transfer in immediately available funds. The Master Servicer, at its
      option, may choose to make daily remittances from the Collection Account to
      the
      Indenture Trustee for deposit into the Distribution Account. 

     

    
      
        
        

      

      
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    (d) The
      Master Servicer shall deposit or cause to be deposited into the Collection
      Account, [no later than the Business Day following] [on] the Closing Date,
      any
      amounts (other than in respect of interest on the Mortgage Loans that accrued
      prior to the Cut-off Date) received with respect to the Mortgage Loans due
      after
      the Cut-off Date and on or before the Closing Date. Thereafter, the Master
      Servicer shall deposit or cause to be deposited in the Collection Account on
      the
      earlier of the applicable Deposit Date and one Business Day following receipt
      thereof, the following amounts received or payments made by it (other than
      in
      respect of principal of and interest on the Mortgage Loans due on or before
      the
      Cut-off Date):

     

    (i)
       all
      payments on account of principal and late collections, on the Mortgage
      Loans;

     

    (ii)
       all
      payments on account of interest on the Mortgage Loans, net of the Servicing
      Fee
      with respect to each such Mortgage Loan, but only to the extent of the amount
      permitted to be withdrawn or withheld from the Collection Account in accordance
      with Section 4.23;

     

    (iii)
       any
      unscheduled payment or other recovery with respect to a Mortgage Loan not
      otherwise specified in this paragraph (d), including all Net Liquidation
      Proceeds with respect to the Mortgage Loans and REO Property, all Recoveries,
      and all amounts received in connection with the operation of any REO Property,
      net of (x) any unpaid Servicing Fees with respect to such Mortgage Loans (but
      only to the extent of the amount permitted to be withdrawn or withheld from
      the
      Collection Account in accordance with Section 4.23) and (y) any amounts
      reimbursable to a Servicer with respect to such Mortgage Loan under the
      applicable Servicing Agreement and retained by such Servicer;

     

    (iv)
       all
      Insurance Proceeds; and

     

    (v)
       the
      Loan
      Purchase Price of any Mortgage Loan repurchased by the Seller, a Transferor
      or
      any other Person and any Substitution Amount related to any Qualifying
      Substitute Mortgage Loan.

     

    (e) Funds
      in
      the Collection Account may be invested in Eligible Investments selected by
      and
      at the written direction of the Master Servicer, which shall mature not later
      than one Business Day prior to the next Deposit Date and any such Eligible
      Investment shall not be sold or disposed of prior to its maturity. All such
      Eligible Investments shall be made in the name of the Master Servicer in trust
      for the benefit of the Indenture Trustee, the Insurer and the Securityholders.
      All income and gain realized from any Eligible Investment shall be for the
      benefit of the Master Servicer and shall be subject to its withdrawal or order
      from time to time, subject to Section 5.10, hereof and shall not be part of
      the
      Trust Estate. The amount of any losses incurred in respect of any such
      investments shall be deposited in such Collection Account by the Master Servicer
      out of its own funds, without any right of reimbursement therefor, immediately
      as realized. The foregoing requirements for deposit in the Collection Account
      are exclusive, it being understood and agreed that, without limiting the
      generality of the foregoing, payments of interest on funds in the Collection
      Account and payments in the nature of late payment charges, assumption fees
      and
      other incidental fees and charges relating to the Mortgage Loans need not be
      deposited by the Master Servicer in the Collection Account and may be retained
      by the Master Servicer or the applicable Servicer as additional servicing
      compensation. If the Master Servicer deposits in the Collection Account any
      amount not required to be deposited therein, it may at any time withdraw such
      amount from such Collection Account. 

     

    
      
        
        

      

      
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    Section
      4.08  Application
      of Funds in the Collection Account. 
      The
      Master Servicer may, from time to time, make, or cause to be made, withdrawals
      from the Collection Account for the following purposes:

     

    (i)
       to
      reimburse itself or any Servicer for Servicing Advances made by it or by such
      Servicer pursuant to the applicable Servicing Agreement; such right to
      reimbursement pursuant to this subclause (i) is limited to amounts received
      on
      or in respect of a particular Mortgage Loan (including, for this purpose,
      Liquidation Proceeds and amounts representing Insurance Proceeds with respect
      to
      the property subject to the related Mortgage) it being understood, in the case
      of any such reimbursement, that the Master Servicer’s or Servicer’s right
      thereto shall be prior to the rights of the Securityholders;

     

    (ii)
       [reserved];

     

    (iii)
       to
      reimburse itself or any Servicer from Liquidation Proceeds for Liquidation
      Expenses and for amounts expended by it pursuant to Section 4.23(a) or the
      applicable Servicing Agreement in good faith in connection with the restoration
      of damaged property and, to the extent that Liquidation Proceeds after such
      reimbursement exceed the unpaid principal balance of the related Mortgage Loan,
      together with accrued and unpaid interest thereon at the applicable Loan Rate
      less the applicable Servicing Fee Rate for such Mortgage Loan to the Due Date
      next succeeding the date of its receipt of such Liquidation Proceeds, to pay
      to
      itself out of such excess the amount of any unpaid assumption fees, late payment
      charges or other Mortgagor charges on the related Mortgage Loan and to retain
      any excess remaining thereafter as additional servicing compensation, it being
      understood, in the case of any such reimbursement or payment, that such Master
      Servicer’s or Servicer’s right thereto shall be prior to the rights of the
      Securityholders;

     

    (iv)
       to
      reimburse itself or any Servicer for expenses incurred by and recoverable by
      or
      reimbursable to it or any Servicer pursuant to Sections 4.04, 4.10(a) or
      4.39;

     

    (v)
       to
      pay to
      the Depositor, the Seller or any Transferor, as applicable, with respect to
      each
      Mortgage Loan or REO Property acquired in respect thereof that has been
      purchased pursuant to this Agreement, all amounts received thereon and not
      distributed on the date on which the related repurchase was effected, and to
      pay
      to the applicable Person any Servicing Advances to the extent specified in
      the
      definition of Loan Purchase Price;

     

    (vi)
       [reserved];

     

    
      
        
        

      

      
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    (vii)
       subject
      to Section 5.10, to pay to itself income earned on the investment of funds
      deposited in the Collection Account;

     

    (viii)
       on
      each
      Deposit Date, to make payment to the Indenture Trustee for deposit into the
      Distribution Account in the amounts and in the manner provided for in Section
      4.07(c) for the related Payment Date (to the extent collected by the Servicers
      or the Master Servicer);

     

    (ix)
       [reserved];

     

    (x)
       to
      make
      payment to itself, the Indenture Trustee, the Custodians, the Administrator
      and
      others pursuant to any provision of this Agreement, the Indenture, the Custodial
      Agreements or the Administration Agreement;

     

    (xi)
       to
      withdraw funds deposited in error in the Collection Account;

     

    (xii)
       to
      clear
      and terminate the Collection Account pursuant to Article VIII;

     

    (xiii)
       to
      reimburse The Trustee and a successor master servicer (solely in its capacity
      as
      successor master servicer), for any fee or advance occasioned by a termination
      of the master servicer, and the assumption of such duties by the Indenture
      Trustee or a successor master servicer appointed by the Indenture Trustee
      pursuant to Section 6.01, in each case to the extent not reimbursed by the
      terminated Master Servicer, it being understood, in the case of any such
      reimbursement or payment, that the right of the Master Servicer or the Indenture
      Trustee thereto shall be prior to the rights of the Securityholders;
      and

     

    (xiv)
       to
      reimburse any Servicer for such amounts as are due thereto under the applicable
      Servicing Agreement and have not been retained by or paid to such Servicer,
      to
      the extent provided in such Servicing Agreement.

     

    In
      connection with withdrawals pursuant to subclauses (i), (iii) and (v) above,
      the
      Master Servicer’s, any Servicer’s or such other Person’s entitlement thereto is
      limited to collections or other recoveries on the related Mortgage Loan. The
      Master Servicer shall therefore keep and maintain a separate accounting for
      each
      Mortgage Loan it master services for the purpose of justifying any withdrawal
      from the Collection Account it maintains pursuant to such subclause (i), (iii)
      and (v).

     

    Section
      4.09  Reports
      of Indenture Trustee to Securityholders and the Insurer. 

     

    (a) On
      each
      Payment Date, the Indenture Trustee shall provide to each Securityholder and
      the
      Insurer or shall make available via the Indenture Trustee’s internet website, a
      report setting forth the following information (on the basis of Mortgage Loan
      level information obtained from the Servicers):

     

    (i)
       the
      amount being distributed to the Notes;

     

    
      
        
        

      

      
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    (ii)
       the
      amount of interest included in such payment and the Note Rate;

     

    (iii)
       the
      amount, if any, of Deferred Interest included in such payment (and the amount
      of
      interest thereon);

     

    (iv)
       the
      amount, if any, of the remaining overdue accrued interest after giving effect
      to
      such payment;

     

    (v)
       the
      amount, if any, of principal included in such payment;

     

    (vi)
       the
      Servicing Fee for such Payment Date;

     

    (vii)
       the
      related principal balance, after giving effect to such payment;

     

    (viii)
       the
      related initial Pool Balance and the related Pool Balance as of the end of
      the
      preceding Collection Period;

     

    (ix)
       the
      Indenture Trustee Fee and Owner Trustee Fee for such Payment Date;

     

    (x)
       the
      number and aggregate Principal Balance of Mortgage Loans that were (A)
      delinquent (exclusive of Mortgage Loans in bankruptcy or foreclosure or
      properties acquired by the Issuer by deed in lieu of foreclosure) (1) 30 to
      59
      days, (2) 60 to 89 days, (3) 90 to 119 days, (4) 120 to 149 days, (5) 150 to
      179
      days, (6) 180 to 269 days and (7) 270 or more days, (B) in foreclosure, (C)
      in
      bankruptcy and (D) properties acquired by the Issuer by deed in lieu of
      foreclosure;

     

    (xi)
       (A)
      cumulative losses as a percentage of Initial Pool Balance, (B) cumulative losses
      as a percentage of current Pool Balance and (C) the twelve-month rolling average
      of cumulative losses as a percentage of Initial Pool Balance;

     

    (xii)
       the
      Six-Month Rolling Delinquency Date; 

     

    (xiii)
       the
      book
      value of any real estate which is acquired by the Issuer through foreclosure
      or
      grant of deed in lieu of foreclosure;

     

    (xiv)
       the
      amount of any draws on the Policy;

     

    (xv)
       whether
      the related Payment Date will fall during the Managed Amortization Period or
      the
      Rapid Amortization Period;

     

    (xvi)
       whether
      a
      Rapid Amortization Event has occurred during the related Collection
      Period;

     

    (xvii)
       the
      outstanding principal balance of the three Mortgage Loans in with the largest
      outstanding principal balance;

     

    (xviii)
       whether
      an Event of Master Servicer Termination or an Insurer Default has
      occurred;

     

    
      
        
        

      

      
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    (xix)
       the
      amount, if any, of Additional Balances created during the related Collection
      Period;

     

    (xx)
       the
      amount, if any, of the Additional Balance Contributed Amount for such Payment
      Date, and the amount of interest on such amount;

     

    (xxi)
       whether
      the Managed Amortization Period has ended and the Rapid Amortization Period
      has
      begun;

     

    (xxii)
       the
      Specified Overcollateralization Amount;

     

    (xxiii)
       the
      Overcollateralization Amount, after giving effect to payments on such Payment
      Date;

     

    (xxiv)
       the
      Overcollateralization Deficit, after giving effect to payments on such Payment
      Date;

     

    (xxv)
       the
      amount of any Servicing Advances made by each Servicer during the related
      Collection Period; 

     

    (xxvi)
       the
      amount, if any, of interest shortfalls relating to prepayments during the
      related Collection Period;

     

    (xxvii)
       the
      Class
      Principal Balance of each class of Residual Certificates; and

     

    (xxviii)
       the
      amount distributable, if any, to each class of Residual
      Certificates.

     

    In
      the
      case of information furnished pursuant to subclauses (i) and (ii) above, the
      amounts shall (except in the case of the report delivered to the holder of
      the
      Residual Certificates) be expressed as a dollar amount per $1,000 of original
      principal amount of Notes.

     

    In
      addition to the information listed above, such report shall also include
      such
      other information as is required by Form 10-D, including, but not limited to,
      the information required by Item 1121 (§ 229.1121) of Regulation
      AB.

     

    The
      Indenture Trustee will make available such report and additional loan level
      information (and, at its option, any additional files containing the same
      information in an alternative format) each month to the Rating Agencies, the
      Insurer and Securityholders via the Indenture Trustee’s website, which can be
      accessed at [_________].
      Assistance in using the website can be obtained by calling the Indenture
      Trustee’s customer service desk at [_________].
      Such
      parties that are unable to use the website are entitled to have a paper copy
      mailed to them via first class mail by notifying the Indenture Trustee at
[_________],
      Attention: [_________], and indicating such. The Indenture Trustee shall have
      the right to change the way such statements are distributed in order to make
      such distribution more convenient and/or more accessible to the above parties
      and the Indenture Trustee shall provide timely and adequate notification to
      all
      above parties regarding any such changes.

     

    
      
        
        

      

      
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    The
      foregoing information and reports shall be prepared and determined by the
      Indenture Trustee based solely on Mortgage Loan data provided to the Indenture
      Trustee by the Master Servicer (in a format agreed to by the Indenture Trustee
      and the Master Servicer) no later than 12:00 p.m.(noon) Eastern Standard Time
      four Business Days prior to the Payment Date. In preparing or furnishing the
      foregoing information to the Indenture Trustee shall be entitled to rely
      conclusively on the accuracy of the information or data regarding the Mortgage
      Loans and the related REO Property that has been provided to the Master Servicer
      by each Servicer, and the Indenture Trustee shall not be obligated to verify,
      recompute, reconcile or recalculate any such information or data. The Indenture
      Trustee shall be entitled to conclusively rely on the Mortgage Loan data
      provided by the Master Servicer and shall have no liability for any errors
      in
      such Mortgage Loan data. 

     

    (b) Upon
      the
      reasonable advance written request of any Securityholder that is a savings
      and
      loan, bank or insurance company, which request, if received by the Indenture
      Trustee, the Indenture Trustee shall provide, or cause to be provided (or,
      to
      the extent that such information or documentation is not required to be provided
      by a Servicer under the applicable Servicing Agreement, shall use reasonable
      efforts to obtain such information and documentation from such Servicer, and
      provide), to such Securityholder such reports and access to information and
      documentation regarding the Mortgage Loans as such Securityholder may reasonably
      deem necessary to comply with applicable regulations of the Office of Thrift
      Supervision or its successor or other regulatory authorities with respect to
      an
      investment in the Securities; provided,
      however,
      that the
      Indenture Trustee shall be entitled to be reimbursed by such Securityholder
      for
      the Indenture Trustee actual expenses incurred in providing such reports and
      access. 

     

    (c) Within
      90
      days, or such shorter period as may be required by statute or regulation, after
      the end of each calendar year, the Indenture Trustee shall have prepared and
      shall make available to each Person who at any time during the calendar year
      was
      a Securityholder of record, and make available to Security Owners (identified
      as
      such by the Clearing Agency) in accordance with applicable regulations, a report
      summarizing the items provided to the Securityholders pursuant to Section
      4.09(a) on an annual basis as may be required to enable such Holders to prepare
      their federal income tax returns; provided,
      however,
      that
      this Section 4.09(c) shall not be applicable where relevant reports or summaries
      are required elsewhere in this Agreement. Such information shall include the
      amount of original issue discount accrued on each Class of Securities and
      information regarding the expenses of the Issuer. The Master Servicer shall
      provide the Indenture Trustee with such information as is necessary for the
      Indenture Trustee to prepare such reports.

     

    (d) The
      Indenture Trustee shall furnish any other information that is required by the
      Code and regulations thereunder to be made available to Securityholders. The
      Master Servicer shall provide the Indenture Trustee with such information as
      is
      necessary for the Indenture Trustee to prepare such reports (and the Indenture
      Trustee may rely solely upon such information).

     

    
      
        
        

      

      
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    Section
      4.10  Termination
      of Servicing Agreements; Successor Servicers.

     

    (a) The
      Master Servicer shall be entitled with the consent of the Insurer or at the
      direction of the Insurer to terminate the rights and obligations of any Servicer
      under the applicable Servicing Agreement in accordance with the terms and
      conditions of such Servicing Agreement and without any limitation by virtue
      of
      this Agreement; provided,
      however,
      that in
      the event of termination of any Servicing Agreement by the Master Servicer,
      the
      Master Servicer shall provide for the servicing of the Mortgage Loans by a
      successor Servicer acceptable to the Insurer to be appointed as provided in
      the
      applicable Servicing Agreement.

     

    The
      parties acknowledge that notwithstanding the preceding sentence, there may
      be a
      transition period, not to exceed 90 days, in order to effect the transfer of
      servicing to a successor Servicer. The Master Servicer shall be entitled to
      be
      reimbursed from each Servicer (or by the Trust Estate, if a Servicer is unable
      to fulfill its obligations hereunder) for all costs associated with the transfer
      of servicing from the predecessor servicer, including without limitation, any
      costs or expenses associated with the complete transfer or all servicing data
      and the completion, correction or manipulation of such servicing data, as may
      be
      required by the Master Servicer to correct any errors or insufficiencies in
      the
      servicing data or otherwise to enable the Master Servicer to service the
      Mortgage Loans properly and effectively.

     

    (b) If
      the
      Master Servicer acts as a successor Servicer, it will not assume liability
      for
      the representations and warranties of a Servicer, if any, that it replaces.
      The
      Master Servicer shall use reasonable efforts to have the successor Servicer
      assume liability for the representations and warranties made by the terminated
      Servicer in the related Servicing Agreement, and in the event of any such
      assumption by the successor Servicer, the Indenture Trustee or the Master
      Servicer, as applicable, may, in the exercise of its business judgment, release
      the terminated Servicer from liability for such representations and
      warranties.

     

    (c) Notwithstanding
      any provision in this Agreement or the Servicing Agreements to the contrary,
      in
      no event shall the Master Servicer terminate a Servicer or appoint a successor
      servicer without having obtained the prior consent of the Insurer. Additionally,
      to the extent that the Master Servicer is permitted to terminate a servicer
      in
      accordance with this Agreement or a Servicing Agreement, the Master Servicer
      will terminate such Servicer if instructed to by the Insurer and shall appoint
      a
      successor servicer acceptable to the Insurer.

     

    Section
      4.11  Master
      Servicer Liable for Enforcement. 
      Notwithstanding any Servicing Agreement, the Master Servicer shall remain
      obligated and liable to the Indenture Trustee, the Insurer and the
      Securityholders in accordance with the provisions of this Agreement, to the
      extent of its obligations hereunder, without diminution of such obligation
      or
      liability by virtue of such Servicing Agreements. The Master Servicer shall
      use
      commercially reasonable efforts to ensure that the Mortgage Loans are serviced
      in accordance with the provisions of this Agreement and shall use commercially
      reasonable efforts to enforce the provisions of each Servicing Agreement for
      the
      benefit of the Securityholders and the Insurer. The Master Servicer shall be
      entitled to enter into any agreement with any Servicer for indemnification
      of
      the Master Servicer and nothing contained in this Agreement shall be deemed
      to
      limit or modify such indemnification. Except as expressly set forth herein,
      the
      Master Servicer shall have no liability for the acts or omissions of any
      Servicer in the performance by such Servicer of its obligations under the
      related Servicing Agreement.

     

    
      
        
        

      

      
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    Section
      4.12  No
      Contractual Relationship Between Any Servicer and Indenture Trustee or
      Depositor. 
      Any
      Servicing Agreement that may be entered into and any other transactions or
      services relating to the Mortgage Loans involving any Servicer in its capacity
      as such and not as an originator shall be deemed to be between such Servicer
      and
      the other parties thereto and the Indenture Trustee and the Depositor shall
      not
      be deemed parties thereto and shall have no obligations, duties or liabilities
      with respect to such Servicer except as set forth in Section 4.13 hereof, but
      shall have rights thereunder as third party beneficiaries. It is furthermore
      understood and agreed by the parties hereto that the obligations of any Servicer
      are set forth in their entirety in such Servicer’s related Servicing Agreement
      and the Insurance Agreement and such Servicer has no obligations under and
      is
      not otherwise bound by the terms of this Agreement.

     

    Section
      4.13  Assumption
      of Servicing Agreement by Indenture Trustee.

     

    (a) In
      the
      event the Master Servicer shall for any reason no longer be the Master Servicer
      (including by reason of any Event of Master Servicer Termination under this
      Agreement), the Indenture Trustee shall thereupon assume all of the rights
      and
      obligations of such Master Servicer hereunder and under each Servicing Agreement
      entered into with respect to the Mortgage Loans. The Indenture Trustee, its
      designee or any successor master servicer appointed by the Indenture Trustee
      shall be deemed to have assumed all of the Master Servicer’s interest herein and
      therein to the same extent as if such Servicing Agreement had been assigned
      to
      the assuming party, except that the Master Servicer shall not thereby be
      relieved of any liability or obligations of the Master Servicer under such
      Servicing Agreement accruing prior to its replacement as Master Servicer, and
      shall be liable to the Indenture Trustee, and hereby agrees to indemnify and
      hold harmless the Indenture Trustee from and against all costs, damages,
      expenses and liabilities (including reasonable attorneys’ fees) incurred by the
      Indenture Trustee as a result of such liability or obligations of the Master
      Servicer and in connection with the Indenture Trustee’s assumption (but not its
      performance, except to the extent that costs or liability of the Indenture
      Trustee are created or increased as a result of negligent or wrongful acts
      or
      omissions of the Master Servicer prior to its replacement as Master Servicer)
      of
      the Master Servicer’s obligations, duties or responsibilities
      thereunder.

     

    (b) The
      Master Servicer that has been terminated shall, upon request of the Indenture
      Trustee but at the expense of such Master Servicer, deliver to the assuming
      party all documents and records relating to each Servicing Agreement and the
      related Mortgage Loans and an accounting of amounts collected and held by it
      and
      otherwise use its best efforts to effect the orderly and efficient transfer
      of
      each Servicing Agreement to the assuming party. 

     

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

     

    
      
        
        

      

      
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    Section
      4.15  Release
      of Mortgage Files.

     

    (a) Upon
      (i)
      becoming aware of the payment in full of any Mortgage Loan or (ii) the receipt
      by the Master Servicer of a notification that payment in full has been or will
      be escrowed in a manner customary for such purposes, the Master Servicer will,
      or will cause the related Servicer to, promptly notify the Indenture Trustee
      (or
      the applicable Custodian) by a certification (which certification shall include
      a statement to the effect that all amounts received in connection with such
      payment that are required to be deposited in the Collection Account maintained
      by the Master Servicer pursuant to Section 4.07 have been or will be so
      deposited) of a Servicing Officer and shall request (on the form attached hereto
      as Exhibit B or on the form attached to the related Custodial Agreement) the
      Indenture Trustee or the applicable Custodian, to deliver to the applicable
      Servicer the related Mortgage File. Upon receipt of such certification and
      request, the Indenture Trustee or the applicable Custodian (with the consent,
      and at the direction of the Indenture Trustee), shall promptly release the
      related Mortgage File to the applicable Servicer and the Indenture Trustee
      shall
      have no further responsibility with regard to such Mortgage File. Upon any
      such
      payment in full, the Master Servicer is authorized, and each Servicer, to the
      extent such authority is provided for under the applicable Servicing Agreement,
      is authorized, to give, as agent for the Indenture Trustee, as the mortgagee
      under the Mortgage that secured the Mortgage Loan, an instrument of satisfaction
      (or assignment of mortgage without recourse) regarding the Mortgaged Property
      subject to the Mortgage, which instrument of satisfaction or assignment, as
      the
      case may be, shall be delivered to the Person or Persons entitled thereto
      against receipt therefor of such payment, it being understood and agreed that
      no
      expenses incurred in connection with such instrument of satisfaction or
      assignment, as the case may be, shall be chargeable to the Collection
      Account.

     

    (b) From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan
      and in accordance with Accepted Servicing Practices and the applicable Servicing
      Agreement, the Indenture Trustee shall execute such documents as shall be
      prepared and furnished to the Indenture Trustee by the Master Servicer, or
      by a
      Servicer (in form reasonably acceptable to the Indenture Trustee) and as are
      necessary to the prosecution of any such proceedings. The Indenture Trustee
      or
      the applicable Custodian, shall, upon request of the Master Servicer, or of
      a
      Servicer, and delivery to the Indenture Trustee or the applicable Custodian,
      of
      a trust receipt signed by a Servicing Officer substantially in the form of
      Exhibit B, release the related Mortgage File held in its possession or control
      to the Master Servicer (or the applicable Servicer). Such trust receipt shall
      obligate the Master Servicer or Servicer to return the Mortgage File to the
      Indenture Trustee or the applicable Custodian, as applicable, when the need
      therefor by the Master Servicer or Servicer no longer exists unless the Mortgage
      Loan shall be liquidated, in which case, upon receipt of a certificate of a
      Servicing Officer similar to that hereinabove specified, the trust receipt
      shall
      be released by the Indenture Trustee or the applicable Custodian, as applicable,
      to the Master Servicer (or the applicable Servicer).

     

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

     

    
      
        
        

      

      
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    (a) The
      Master Servicer shall transmit, or cause the applicable Servicer to transmit,
      to
      the Indenture Trustee such documents and instruments coming into the possession
      of the Master Servicer or such Servicer from time to time as are required by
      the
      terms hereof or of the applicable Servicing Agreement to be delivered to the
      Indenture Trustee or the applicable Custodian. Any funds received by the Master
      Servicer or by a Servicer in respect of any Mortgage Loan or which otherwise
      are
      collected by the Master Servicer or a Servicer as Liquidation Proceeds or
      Insurance Proceeds in respect of any Mortgage Loan shall be held for the benefit
      of the Indenture Trustee, the Insurer and the Securityholders subject to the
      Master Servicer’s right to retain or withdraw amounts provided in this Agreement
      and to the right of each Servicer to retain its Servicing Fee and other amounts
      as provided in the related Servicing Agreement. The Master Servicer shall,
      and
      shall (to the extent provided in the applicable Servicing Agreement) cause
      each
      Servicer to, provide access to information and documentation regarding the
      Mortgage Loans to the Indenture Trustee and the Insurer, their respective agents
      and accountants at any time upon reasonable request and during normal business
      hours, and to Securityholders that are savings and loan associations, banks
      or
      insurance companies, the Office of Thrift Supervision, the FDIC and the
      supervisory agents and examiners of such Office and Corporation or examiners
      of
      any other federal or state banking or insurance regulatory authority if so
      required by applicable regulations of the Office of Thrift Supervision or other
      regulatory authority, such access to be afforded without charge but only upon
      reasonable request in writing and during normal business hours at the offices
      of
      the Master Servicer designated by it. In fulfilling such a request the Master
      Servicer shall not be responsible for determining the sufficiency of such
      information.

     

    (b) All
      Mortgage Files and funds collected or held by, or under the control of, the
      Master Servicer, or any Servicer, in respect of any Mortgage Loans, whether
      from
      the collection of principal and interest payments or from Liquidation Proceeds
      or Insurance Proceeds, shall be held by the Master Servicer, or by any Servicer,
      for and on behalf of the Indenture Trustee as the Indenture Trustee's agent
      and
      bailee for purposes of perfecting the Indenture Trustee's security interest
      therein as provided by relevant Uniform Commercial Code or laws; provided,
      however,
      that the
      Master Servicer and each Servicer shall be entitled to setoff against, and
      deduct from, any such funds any amounts that are properly due and payable to
      the
      Master Servicer or such Servicer under this Agreement or the applicable
      Servicing Agreement and shall be authorized to remit such funds to the Indenture
      Trustee in accordance with this Agreement.

     

    (c) The
      Master Servicer hereby acknowledges that concurrently with the execution of
      this
      Agreement, the Indenture Trustee shall own or, to the extent that a court of
      competent jurisdiction shall deem the conveyance of the Mortgage Loans from
      the
      Seller to the Depositor or the Depositor to the Issuer not to constitute a
      sale,
      the Indenture Trustee shall have a security interest in the Mortgage Loans
      and
      in all Mortgage Files representing such Mortgage Loans and in all funds and
      investment property now or hereafter held by, or under the control of, a
      Servicer or the Master Servicer that are collected by any Servicer or the Master
      Servicer in connection with the Mortgage Loans, whether as scheduled
      installments of principal and interest or as full or partial prepayments of
      principal or interest or as Liquidation Proceeds or Insurance Proceeds or
      otherwise, and in all proceeds of the foregoing and proceeds of proceeds (but
      excluding any fee or other amounts to which a Servicer is entitled under the
      applicable Servicing Agreement, or the Master Servicer or the Depositor is
      entitled to hereunder); and the Master Servicer agrees that so long as the
      Mortgage Loans are assigned to and held by the Indenture Trustee or any
      Custodian, all documents or instruments constituting part of the Mortgage Files,
      and such funds relating to the Mortgage Loans which come into the possession
      or
      custody of, or which are subject to the control of, the Master Servicer or
      any
      Servicer shall be held by the Master Servicer or such Servicer for and on behalf
      of the Indenture Trustee as the Indenture Trustee’s agent and bailee for
      purposes of perfecting the Indenture Trustee’s security interest therein as
      provided by the applicable Uniform Commercial Code or other applicable
      laws.

     

    
      
        
        

      

      
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    (d) The
      Master Servicer agrees that it shall not, and shall not authorize any Servicer
      to, create, incur or subject any Mortgage Loans, or any funds that are deposited
      in any Custodial Account, Escrow Account or the Collection Account, or any
      funds
      that otherwise are or may become due or payable to the Indenture Trustee, to
      any
      claim, lien, security interest, judgment, levy, writ of attachment or other
      encumbrance, nor assert by legal action or otherwise any claim or right of
      setoff against any Mortgage Loan or any funds collected on, or in connection
      with, a Mortgage Loan.

     

    Section
      4.17  Opinion. On
      or
      before the Closing Date, the Master Servicer shall cause to be delivered to
      the
      Depositor, the Seller, the Indenture Trustee, the Insurer and the Issuer one
      or
      more Opinions of Counsel, dated the Closing Date, in form and substance
      reasonably satisfactory to the Depositor and Thornburg Mortgage Home Loans,
      Inc.., as to the due authorization, execution and delivery of this Agreement
      by
      the Master Servicer and the enforceability thereof. 

     

    Section
      4.18  Standard
      Hazard and Flood Insurance Policies. 
      For each
      Mortgage Loan, the Master Servicer shall maintain, or cause to be maintained
      by
      each Servicer, standard fire and casualty insurance and, where applicable,
      flood
      insurance, all in accordance with the provisions of this Agreement and the
      related Servicing Agreement, as applicable. It is understood and agreed that
      such insurance shall be with insurers meeting the eligibility requirements
      set
      forth in the applicable Servicing Agreement and that no earthquake or other
      additional insurance is to be required of any Mortgagor or to be maintained
      on
      property acquired in respect of a defaulted loan, other than pursuant to such
      applicable laws and regulations as shall at any time be in force and as shall
      require such additional insurance.

     

    Pursuant
      to Section 4.07, any amounts collected by the Master Servicer, or by any
      Servicer, under any insurance policies maintained pursuant to this Section
      4.18
      or any Servicing Agreement (other than amounts to be applied to the restoration
      or repair of the property subject to the related Mortgage or released to the
      Mortgagor in accordance with the applicable Servicing Agreement) shall be
      deposited into the Collection Account, subject to withdrawal pursuant to Section
      4.08. Any cost incurred by the Master Servicer or any Servicer in maintaining
      any such insurance if the Mortgagor defaults in its obligation to do so shall
      be
      added to the amount owing under the Mortgage Loan where the terms of the
      Mortgage Loan so permit; provided,
      however,
      that the
      addition of any such cost shall not be taken into account for purposes of
      calculating the distributions to be made to Securityholders and shall be
      recoverable by the Master Servicer or such Servicer pursuant to Section
      4.08.

     

    
      
        
        

      

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

     

    Section
      4.20  [Reserved].  

     

    Section
      4.21  [Reserved].

     

    Section
      4.22  Compensation
      to the Master Servicer. 
      Pursuant
      to Section 4.07(e), all income and gain realized from any investment of funds
      in
      the Collection Account shall be for the benefit of the Master Servicer as
      compensation. The provisions of this Section 4.22 are subject to the provisions
      of Section 6.01. Servicing compensation in the form of assumption fees, if
      any,
      late payment charges, as collected, if any, or otherwise (but not including
      any
      Prepayment Premium) shall be retained by the Master Servicer (or the applicable
      Servicer) and shall not be deposited in the Collection Account. The Master
      Servicer shall be required to pay all expenses incurred by it in connection
      with
      its activities hereunder and shall not be entitled to reimbursement therefor
      except as provided in this Agreement. 

     

    Section
      4.23  REO
      Property.

     

    (a) In
      the
      event the Issuer acquires ownership of any REO Property in respect of any
      Mortgage Loan, the deed or certificate of sale shall be issued to the Indenture
      Trustee, or to its nominee, on behalf of the Securityholders. The Master
      Servicer shall use its reasonable best efforts to sell, or cause the applicable
      Servicer, to the extent provided in the applicable Servicing Agreement any
      REO
      Property as expeditiously as possible and in accordance with the provisions
      of
      this Agreement and the related Servicing Agreement, as applicable, but in all
      events within the time period, and subject to the conditions set forth in
      Article VII hereof. Pursuant to its efforts to sell such REO Property, the
      Master Servicer shall protect and conserve, or cause the applicable Servicer
      to
      protect and conserve, such REO Property in the manner and to such extent
      required by the applicable Servicing Agreement, subject to Article VII
      hereof.

     

    (b) The
      Master Servicer shall deposit or cause to be deposited all funds collected
      and
      received by it, or recovered from any Servicer, in connection with the operation
      of any REO Property in the Collection Account.

     

    (c) The
      Master Servicer and each Servicer, upon the final disposition of any REO
      Property, shall be entitled to reimbursement for any related unreimbursed
      Advances and other unreimbursed advances as well as any unpaid Servicing Fees
      from Liquidation Proceeds received in connection with the final disposition
      of
      such REO Property; provided, that (without limitation of any other right of
      reimbursement that the Master Servicer or any Servicer shall have hereunder)
      any
      such unreimbursed Advances as well as any unpaid Servicing Fees may be
      reimbursed or paid, as the case may be, prior to final disposition, out of
      any
      net rental income or other net amounts derived from such REO
      Property.

     

    
      
        
        

      

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

     

    Section
      4.24  [Reserved].

     

    Section
      4.25  Reports
      to the Indenture Trustee.

     

    (a) Not
      later
      than 30 days after each Payment Date, the Master Servicer shall, upon request,
      forward to the Indenture Trustee and the Insurer a statement, deemed to have
      been certified by a Servicing Officer, setting forth the status of the
      Collection Account maintained by the Master Servicer as of the close of business
      on the related Payment Date, indicating that all distributions required by
      this
      Agreement to be made by the Master Servicer have been made (or if any required
      distribution has not been made by the Master Servicer, specifying the nature
      and
      status thereof) and showing, for the period covered by such statement, the
      aggregate of deposits into and withdrawals from the Collection Account
      maintained by the Master Servicer. Copies of such statement shall be provided
      by
      the Master Servicer, upon request, to the Depositor, Attention: Contract Finance
      and any Securityholders (or by the Indenture Trustee at the Master Servicer’s
      expense if the Master Servicer shall fail to provide such copies to the
      Securityholders (unless (i) the Master Servicer shall have failed to provide
      the
      Indenture Trustee with such statement or (ii) the Indenture Trustee shall be
      unaware of the Master Servicer’s failure to provide such
      statement)).

     

    (b) Not
      later
      than two Business Days following each Payment Date, the Master Servicer shall
      deliver to one Person designated by the Depositor, in a format consistent with
      other electronic loan level reporting supplied by the Master Servicer in
      connection with similar transactions, “loan level” information with respect to
      the Mortgage Loans as of the related Determination Date, to the extent that
      such
      information has been provided to the Master Servicer by the Servicers or by
      the
      Depositor.

     

    (c) All
      information, reports and statements prepared by the Master Servicer under this
      Agreement shall be based on information supplied to the Master Servicer by
      the
      Servicers without independent verification thereof and the Master Servicer
      shall
      be entitled to rely on such information.

     

    Section
      4.26  Annual
      Officer’s Certificate as to Compliance.

     

    
      
        
        

      

      
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    (a) The
      Master Servicer shall deliver to the Depositor and the Indenture Trustee on
      or
      before March 1st
      of each
      calendar year, commencing in March 20[__], an Officer’s Certificate, certifying
      that with respect to the period ending on the immediately preceding December
      31:
      (i) such Servicing Officer has reviewed the activities of such Master Servicer
      during the preceding calendar year or portion thereof and its performance under
      this Agreement, (ii) to the best of such Servicing Officer’s knowledge, based on
      such review, such Master Servicer has performed and fulfilled its duties,
      responsibilities and obligations under this Agreement in all material respects
      throughout such year, or, if there has been a default in the fulfillment of
      any
      such duties, responsibilities or obligations, specifying each such default
      known
      to such Servicing Officer and the nature and status thereof, (iii) nothing
      has
      come to the attention of such Servicing Officer to lead such Servicing Officer
      to believe that any Servicer has failed to perform any of its duties,
      responsibilities and obligations under its Servicing Agreement in all material
      respects throughout such year, or, if there has been a material default in
      the
      performance or fulfillment of any such duties, responsibilities or obligations,
      specifying each such default known to such Servicing Officer and the nature
      and
      status thereof including the steps being taken by the Master Servicer to remedy
      such default, (iv) the Master Servicer has received from each Servicer an annual
      certificate of compliance and a copy of such Servicer’s annual audit report, in
      each case to the extent required under the applicable Servicing Agreement,
      or,
      if any such certificate or report has not been received by the Master Servicer,
      the Master Servicer is using its best reasonable efforts to obtain such
      certificate or report and (v) such other additional items as may be required
      by
      applicable law or regulation.

     

    (b) On
      or
      before March 1 of each calendar year, the Master Servicer shall deliver to
      the
      Indenture Trustee and the Depositor a report regarding its assessment of
      compliance with the servicing criteria specified in paragraph (d) of Item 1122
      of Regulation AB (§ 229.1122(d)), as of and for the period ending the end of
      each fiscal year, with respect to asset-backed security transactions taken
      as a
      whole involving the Master Servicer, and that are backed by the same asset
      type
      as the Mortgage Loans. Each such report shall include all of the statements
      required under paragraph (a) of Item 1122 of Regulation AB (§
229.1122(a)).

     

    (c) Copies
      of
      such statements shall be provided to any Securityholder upon request, by the
      Master Servicer or by the Indenture Trustee at the Master Servicer’s expense if
      the Master Servicer failed to provide such copies (unless (i) the Master
      Servicer shall have failed to provide the Indenture Trustee with such statement
      or (ii) the Indenture Trustee shall be unaware of the Master Servicer’s failure
      to provide such statement).

     

    (d) The
      Master Servicer shall promptly notify the Indenture
      Trustee
      and the Depositor (i) of any legal proceedings pending against the Master
      Servicer of the type described in Item 1117 (§
      229.1117) of
      Regulation AB and (ii) if the Master Servicer shall become (but only to the
      extent not previously disclosed to the Indenture
      Trustee
      and the Depositor) at any time an affiliate of any of the Sponsor, the Issuer,
      the Owner Trustee, the Indenture Trustee, any Servicer, the Administrator,
      any
      Originator contemplated by Item 1110 (§
      229.1110) of
      Regulation AB, any significant obligor contemplated by Item 1112 (§
      229.1112) of
      Regulation AB, any enhancement or support provider contemplated by Items 1114
      or
      1115 (§§
      229.1114-1115) of
      Regulation AB or any other material party to the Trust Fund contemplated by
      Item
      1100(d)(1) (§
      229.1100(d)(1)) of
      Regulation AB.

     

    Section
      4.27  Annual
      Independent Accountants’ Servicing Report.  

     

    
      
        
        

      

      
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    (a) On
      or
      before March 1 of each calendar year, the Master Servicer shall deliver to
      the
      Indenture Trustee and the Depositor a report by a registered public accounting
      firm that attests to, and reports on, the assessment made by the Master Servicer
      pursuant to Section 4.26(b). Such report shall be made in accordance with
      standards for attestation engagements issued or adopted by the Public Company
      Accounting Oversight Board.

     

    (b) If
      the
      Master Servicer (or any of its Affiliates) has, during the course of any fiscal
      year, directly serviced, as a successor Servicer, any of the Mortgage Loans,
      then the Master Servicer at its expense shall cause a nationally recognized
      firm
      of independent certified public accountants to furnish a statement to the
      Indenture Trustee and the Depositor no later than five Business Days after
      the
      fifteenth of March of each calendar year, commencing in March 20[__] to the
      effect that, with respect to the most recently ended calendar year, such firm
      has examined certain records and documents relating to the Master Servicer’s
      performance of its servicing obligations under this Agreement and pooling and
      servicing and trust agreements in material respects similar to this Agreement
      and to each other and that, on the basis of such examination conducted
      substantially in compliance with the audit program for mortgages serviced for
      FHLMC or the Uniform Single Attestation Program for Mortgage Bankers, such
      firm
      is of the opinion that the Master Servicer’s activities have been conducted in
      compliance with this Agreement, or that such examination has disclosed no
      material items of noncompliance except for (i) such exceptions as such firm
      believes to be immaterial, (ii) such other exceptions as are set forth in such
      statement and (iii) such exceptions that the Uniform Single Attestation Program
      for Mortgage Bankers or the Audit Program for Mortgages Serviced by FHLMC
      requires it to report. Copies of such statements shall be provided to the
      Insurer and any Securityholder upon request by the Master Servicer, or by the
      Indenture Trustee at the expense of the Master Servicer if the Master Servicer
      shall fail to provide such copies. If such report discloses exceptions that
      are
      material, the Master Servicer shall advise the Indenture Trustee whether such
      exceptions have been or are susceptible of cure, and will take prompt action
      to
      do so.

     

    Section
      4.28  Merger
      or Consolidation. 
      Any
      Person into which the Master Servicer may be merged or consolidated, or any
      Person resulting from any merger, conversion, other change in form or
      consolidation to which the Master Servicer shall be a party, or any Person
      succeeding to the business of the Master Servicer, shall be the successor to
      the
      Master Servicer hereunder, without the execution or filing of any paper or
      any
      further act on the part of any of the parties hereto, anything herein to the
      contrary notwithstanding; provided,
      however,
      that the
      successor or resulting Person to the Master Servicer shall be a Person that
      shall be qualified and approved to service mortgage loans for Fannie Mae or
      FHLMC and shall have a net worth of not less than $15,000,000.

     

    Section
      4.29  Resignation
      of Master Servicer. 
      Except
      as otherwise provided in Sections 4.28 and 4.30 hereof, the Master Servicer
      shall not resign from the obligations and duties hereby imposed on it unless
      it
      or the Indenture Trustee, acting at the direction of the Insurer, determines
      that the Master Servicer’s duties hereunder are no longer permissible under
      applicable law or are in material conflict by reason of applicable law with
      any
      other activities carried on by it and cannot be cured. Any such determination
      permitting the resignation of the Master Servicer shall be evidenced by an
      Opinion of Counsel that shall be Independent to such effect delivered to the
      Indenture Trustee and the Insurer. No such resignation shall become effective
      until the Indenture Trustee shall have assumed, or a successor master servicer
      shall have been appointed by the Indenture Trustee and until such successor
      shall have assumed, the Master Servicer’s responsibilities and obligations under
      this Agreement. Notice of such resignation shall be given promptly by the Master
      Servicer and the Depositor to the Indenture Trustee.

     

    
      
        
        

      

      
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    Section
      4.30  Assignment
      or Delegation of Duties by the Master Servicer. 
      Except
      as expressly provided herein, the Master Servicer shall not assign or transfer
      any of its rights, benefits or privileges hereunder to any other Person, or
      delegate to or subcontract with, or authorize or appoint any other Person to
      perform any of the duties, covenants or obligations to be performed by the
      Master Servicer hereunder; provided,
      however,
      that the
      Master Servicer shall have the right without the prior written consent of the
      Indenture Trustee, the Insurer or the Depositor to delegate or assign to or
      subcontract with or authorize or appoint an Affiliate of the Master Servicer
      to
      perform and carry out any duties, covenants or obligations to be performed
      and
      carried out by the Master Servicer hereunder. In no case, however, shall any
      such delegation, subcontracting or assignment to an Affiliate of the Master
      Servicer relieve the Master Servicer of any liability hereunder. Notice of
      such
      permitted assignment shall be given promptly by the Master Servicer to the
      Depositor, the Insurer and the Indenture Trustee. If, pursuant to any provision
      hereof, the duties of the Master Servicer are transferred to a successor master
      servicer, the entire amount of compensation payable to the Master Servicer
      pursuant hereto, including amounts payable to or permitted to be retained or
      withdrawn by the Master Servicer pursuant to Section 4.22 hereof, shall
      thereafter be payable to such successor master servicer.

     

    Section
      4.31  Limitation
      on Liability of the Master Servicer and Others.

     

    (a) The
      Master Servicer undertakes to perform such duties and only such duties as are
      specifically set forth in this Agreement. 

     

    (b) No
      provision of this Agreement shall be construed to relieve the Master Servicer
      from liability for its own negligent action, its own negligent failure to act
      or
      its own willful misconduct; provided,
      however,
      that
      the duties and obligations of the Master Servicer shall be determined solely
      by
      the express provisions of this Agreement, the Master Servicer shall not be
      liable except for the performance of such duties and obligations as are
      specifically set forth in this Agreement; no implied covenants or obligations
      shall be read into this Agreement against the Master Servicer and, in absence
      of
      bad faith on the part of the Master Servicer, the Master Servicer 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
      Master Servicer and conforming to the requirements of this
      Agreement.

     

    (c) Neither
      the Master Servicer nor any of the directors, officers, employees or agents
      of
      the Master Servicer shall be under any liability to the Indenture Trustee or
      the
      Securityholders for any action taken or for refraining from the taking of any
      action in good faith pursuant to this Agreement, or for errors in judgment;
      provided,
      however,
      that
      this provision shall not protect the Master Servicer or any such person against
      any liability that would otherwise be imposed by reason of willful misfeasance,
      bad faith or negligence in its performance of its duties or by reason of
      reckless disregard for its obligations and duties under this Agreement. The
      Master Servicer and any director, officer, employee or agent of the Master
      Servicer shall be entitled to indemnification by the Trust Estate and will
      be
      held harmless against any loss, liability or expense incurred in connection
      with
      any legal action relating to this Agreement or the Securities other than any
      loss, liability or expense incurred by reason of willful misfeasance, bad faith
      or negligence in the performance of his or its duties hereunder or by reason
      of
      reckless disregard of his or its obligations and duties hereunder. The Master
      Servicer and any director, officer, employee or agent of the Master Servicer
      may
      rely in good faith on any document of any kind prima facie properly executed
      and
      submitted by any Person respecting any matters arising hereunder. The Master
      Servicer shall be under no obligation to appear in, prosecute or defend any
      legal action that is not incidental to its duties to master service the Mortgage
      Loans in accordance with this Agreement and that in its opinion may involve
      it
      in any expenses or liability; provided,
      however,
      that the
      Master Servicer may in its sole discretion undertake any such action that it
      may
      deem necessary or desirable in respect to this Agreement and the rights and
      duties of the parties hereto and the interests of the Securityholders 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 Issuer
      and
      the Master Servicer shall be entitled to be reimbursed therefor out of the
      Collection Account it maintains as provided by Section 4.08.

     

    
      
        
        

      

      
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    The
      Master Servicer shall not be liable for any acts or omissions of any Servicer.
      

     

    Section
      4.32  Indemnification;
      Third-Party Claims. 
      The
      Master Servicer agrees to indemnify the Depositor, the Issuer [, the Insurer]
      and the Indenture Trustee, and hold them harmless against any and all claims,
      losses, penalties, fines, forfeitures, legal fees and related costs, judgments,
      and any other costs, liability, fees and expenses that the Depositor, the Issuer
      [, the Insurer] or the Indenture Trustee may sustain as a result of the failure
      of the Master Servicer to perform its duties and master service the Mortgage
      Loans in compliance with the terms of this Agreement. The Depositor, the Issuer
      [, the Insurer] and the Indenture Trustee shall immediately notify the Master
      Servicer if a claim is made by a third party with respect to this Agreement,
      the
      Mortgage Loans entitling the Depositor, the Issuer [, the Insurer] or the
      Indenture Trustee to indemnification hereunder, whereupon the Master Servicer
      shall assume the defense of any such claim and pay all expenses in connection
      therewith, including counsel fees, and promptly pay, discharge and satisfy
      any
      judgment or decree which may be entered against it or them in respect of such
      claim.

     

    Section
      4.33  [Reserved].  

     

    Section
      4.34  Alternative
      Index. 
      In the
      event that the Index for any Mortgage Loan, as specified in the related Credit
      Line Agreement, becomes unavailable for any reason, the Master Servicer shall
      select an alternative index in accordance with the terms of such Credit Line
      Agreement or, if such Credit Line Agreement does not make provision for the
      selection of an alternative index in such event, the Master Servicer shall,
      subject to applicable law, select an alternative index based on information
      comparable to that used in connection with the original Index and, in either
      case, such alternative index shall thereafter be the Index for such Mortgage
      Loan.

     

    Section
      4.35  [Reserved].

     

    
      
        
        

      

      
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    Section
      4.36  [Reserved].

     

    Section
      4.37  [Reserved].

     

    Section
      4.38  [Reserved].

     

    Section
      4.39  Transfer
      of Servicing.
      The
      Seller agrees that it shall provide written notice to the Master Servicer,
      the
      Insurer and the Indenture Trustee thirty days prior to any proposed transfer
      or
      assignment by the Seller of its rights under any Servicing Agreement or of
      the
      servicing thereunder or delegation of its rights or duties thereunder or any
      portion thereof to any other Person other than the initial Servicer under such
      Servicing Agreement. In addition, the ability of the Seller to transfer or
      assign its rights and delegate its duties under the applicable Servicing
      Agreement or to transfer the servicing thereunder to a successor servicer shall
      be subject to the following conditions:

     

    (i)
       satisfaction
      of the conditions to such transfer as set forth in the applicable Servicing
      Agreement including, without limitation, receipt of written consent of the
      Master Servicer and the Insurer to such transfer;

     

    (ii)
       Such
      successor servicer must be qualified to service loans for FNMA or FHLMC, must
      be
      a member in good standing of MERS and must be acceptable to the Insurer in
      its
      sole reasonable discretion;

     

    (iii)
       Such
      successor servicer must satisfy the seller/servicer eligibility standards in
      the
      applicable Servicing Agreement, exclusive of any experience in mortgage loan
      origination;

     

    (iv)
       Such
      successor servicer must execute and deliver to the Indenture Trustee an
      agreement, in form and substance reasonably satisfactory to the Indenture
      Trustee and the Insurer, that contains an assumption by such successor servicer
      of the due and punctual performance and observance of each covenant and
      condition to be performed and observed by the applicable Servicer under the
      applicable Servicing Agreement or, in the case of a transfer of servicing to
      a
      party that is already a Servicer pursuant to this Agreement, an agreement to
      add
      the related Mortgage Loans to the Servicing Agreement already in effect with
      such Servicer;

     

    (v)
       If
      the
      successor servicer is not a Servicer of Mortgage Loans at the time of the
      transfer, there must be delivered to the Indenture Trustee and the Insurer
      a
      letter from each Rating Agency to the effect that such transfer of servicing
      will not result in a qualification, withdrawal or downgrade of the then-current
      rating of any of the Notes without taking into account the Policy;
      and

     

    
      
        
        

      

      
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    (vi)
       The
      Seller shall, at its cost and expense, take such steps, or cause the terminated
      Servicer to take such steps, as may be necessary or appropriate to effectuate
      and evidence the transfer of the servicing of the Mortgage Loans to such
      successor servicer, including, but not limited to, the following: (A) to the
      extent required by the terms of the Mortgage Loans and by applicable federal
      and
      state laws and regulations, the Seller shall cause the prior Servicer to timely
      mail to each obligor under a Mortgage Loan any required notices or disclosures
      describing the transfer of servicing of the Mortgage Loans to the successor
      servicer; (B) prior to the effective date of such transfer of servicing, the
      Seller shall cause the prior Servicer to transmit to any related insurer
      notification of such transfer of servicing; (C) on or prior to the effective
      date of such transfer of servicing, the Seller shall cause the prior Servicer
      to
      deliver to the successor servicer all Mortgage Loan Documents and any related
      records or materials; (D) on or prior to the effective date of such transfer
      of
      servicing, the Seller shall cause the prior Servicer to transfer to the
      successor servicer, or, if such transfer occurs after a Servicer Remittance
      Date
      but before the next succeeding Deposit Date, to the Indenture Trustee, all
      funds
      held by the prior Servicer in respect of the Mortgage Loans; (E) on or prior
      to
      the effective date of such transfer of servicing, the Seller shall cause the
      prior Servicer to, after the effective date of the transfer of servicing to
      the
      successor servicer, continue to forward to such successor servicer, within
      one
      Business Day of receipt, the amount of any payments or other recoveries received
      by the prior Servicer, and to notify the successor servicer of the source and
      proper application of each such payment or recovery; and (F) the Seller shall
      cause the prior Servicer to, after the effective date of transfer of servicing
      to the successor servicer, continue to cooperate with the successor servicer
      to
      facilitate such transfer in such manner and to such extent as the successor
      servicer may reasonably request. Notwithstanding the foregoing, the prior
      Servicer shall be obligated to perform the items listed above to the extent
      provided in the applicable Servicing Agreement.

     

     

    ARTICLE
      V

     

    DEPOSITS
      AND DISTRIBUTIONS TO HOLDERS

     

    Section
      5.01  The
      Collection Account.
      The
      Master Servicer shall establish and maintain in the name of the Securities
      Intermediary the Collection Account as provided in Section 4.08, which account
      shall be pledged to the Indenture Trustee for the benefit of the Securityholders
      and the Insurer.

     

    Section
      5.02  The
      Distribution Account.  

     

    (a) The
      Indenture Trustee shall establish and maintain in the name of the Securities
      Intermediary an account (the “Distribution Account”) entitled “Distribution
      Account, [_________], as Indenture Trustee, in trust for the benefit of the
      Holders of Thornburg Mortgage Securities Trust [ ] Home Equity Loan Asset-Backed
      Notes, Series
      20[__]-[__].”
The
      Distribution Account shall be an Eligible Account. If the existing Distribution
      Account ceases to be an Eligible Account, the Indenture Trustee shall establish
      a new Distribution Account that is an Eligible Account within 10 Business Days
      and transfer all funds and investment property on deposit in such existing
      Distribution Account into such new Distribution Account. The Distribution
      Account shall relate solely to the Notes issued hereunder and funds in the
      Distribution Account shall be held separate and apart from and shall not be
      commingled with any other monies including, without limitation, other monies
      of
      the Indenture Trustee held under this Agreement.

     

    
      
        
        

      

      
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    (b) The
      Indenture Trustee shall deposit or cause to be deposited into the Distribution
      Account on the Business Day immediately following the day on which the Total
      Distribution Amount is remitted by the Master Servicer to the Indenture Trustee,
      all such amounts. The Indenture Trustee shall make withdrawals from the
      Distribution Account only for the following purposes:

     

    (i)
       to
      make
      payment to itself of the Indenture Trustee Fee for such Payment Date and to
      reimburse itself for any expense reimbursable to it pursuant to Section
      6.01;

     

    (ii)
       to
      make
      payment to the Owner Trustee, the Owner Trustee Fee for such Payment Date,
      if
      any;

     

    (iii)
       to
      withdraw amounts deposited in the Distribution Account in error;

     

    (iv)
       to
      make
      distributions pursuant to this Article V and the terms of the Indenture;

     

    (v)
       Prior
      to
      the last day of the Collection Period preceding the month in which the
      commencement of the Rapid Amortization Period occurs, to pay to the related
      Servicer the amount of any Additional Balances relating to Mortgage Loans
      serviced by it as and when created during the related Collection Period;
      provided, that the aggregate amount so paid to the related Servicer in respect
      of Additional Balances at any time during any Collection Period shall not exceed
      the portion of Principal Collections theretofore received for such Collection
      Period; and

     

    (vi)
       to
      clear
      and terminate the Distribution Account pursuant to Article VIII.

     

    (c) Any
      amounts drawn under the Policy pursuant to Section 5.04(f) of this Agreement,
      but only to be used for the payment of the items specified in Sections
      5.04(b)(iv) and (vi) of this Agreement, as applicable, will be deposited into
      the Distribution Account.

     

    The
      Indenture Trustee may invest, or cause to be invested, funds held in the
      Distribution Account in Eligible Investments (which may be obligations of the
      Indenture Trustee). All such investments must be payable on demand or mature
      no
      later than one Business Day prior to the next Payment Date, and shall not be
      sold or disposed of prior to their maturity. All such Eligible Investments
      will
      be made in the name of the Indenture Trustee (in its capacity as such) or its
      nominee. The amount of any losses incurred in respect of any such investments
      shall be paid by the Indenture Trustee for deposit in the Distribution Account
      out of its own funds, without any right of reimbursement therefor, immediately
      as realized. All income and gain realized from any such investment shall be
      compensation to the Indenture Trustee and shall be subject to its withdrawal
      on
      order from time to time.

     

    
      
        
        

      

      
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    Section
      5.03  Payments
      from the Distribution Account. 

     

    (a) The
      Indenture Trustee shall deposit to the Distribution Account, without
      duplication, upon receipt, (i) the proceeds of any liquidation of the assets
      of
      the Issuer and (ii) Interest Collections and Principal Collections remitted
      by
      the Servicers, together with any Substitution Amounts, and any Loan Purchase
      Price amounts received by the Indenture Trustee

     

    (b) With
      respect to the Distribution Account, on each Payment Date, from amounts then
      on
      deposit therein, net of the Indenture Trustee Fee, the Indenture Trustee Expense
      Amount, the Servicing Fee and the Owner Trustee Fee, and based solely on the
      information contained in the certificate provided by the Master Servicer, the
      Indenture Trustee shall make the following allocations, disbursements and
      transfers in the following order of priority, and each such allocation, transfer
      and disbursement shall be treated as having occurred only after all preceding
      allocations, transfers and disbursements have occurred:

     

    (i)
       to
      the
      Insurer, the Premium Amount with respect to the Class A Notes for such Payment
      Date;

     

    (ii)
       concurrently,
      to the Holders of the Class A Notes, the Interest Payment Amount for such
      Payment Date and, during the Managed Amortization Period, to the related
      Servicer accrued and unpaid, interest on any Additional Balance Contributed
      Amount that has not previously been reimbursed pursuant to clause (iii) below
      at
      the Class A Note Rate for such Payment Date;

     

    (iii)
       to
      the
      related Servicer on each Payment Date during the Managed Amortization Period,
      from Principal Collections, an amount equal to the Additional Balance
      Contributed Amount; 

     

    (iv)
       to
      the
      Holders of the Class A Notes, as a payment of principal, the Principal Payment
      Amount for such Payment Date;

     

    (v)
       to
      the
      Holders of the Class A Notes, as a payment of principal, in the following order,
      (a) Charge-Off Amounts incurred during the preceding calendar month and (b)
      Charge-Off Amounts incurred during previous periods that were not subsequently
      funded by Interest Collections, overcollateralization or draws under the Policy
      in respect of an Overcollateralization Deficit;

     

    (vi)
       to
      the
      Insurer, the Reimbursement Amount, if any, then due to it;

     

    (vii)
       to
      the
      Holders of the Class A Notes, the Accelerated Principal Payment, if
      any;

     

    (viii)
       to
      the
      Servicers, to pay certain amounts that may be required to be paid to the
      Servicers (including expenses associated with the transition to any new
      servicer) and not previously reimbursed;

     

    
      
        
        

      

      
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    (ix)
       to
      the
      Holders of the Class A Notes to pay Deferred Interest and interest thereon
      at
      the Class A Note Rate; 

     

    (x)
       pari
      passu,
      (a) to
      the Indenture Trustee, any unpaid fees and unreimbursed expenses due and owing
      to the Indenture Trustee and not otherwise previously paid on such Payment
      Date,
      and (b) to the Owner Trustee, any unpaid fees and unreimbursed expenses due
      and
      owing to the Owner Trustee and not otherwise previously paid on such Payment
      Date; and 

     

    (xi)
       to
      the
      Owner Trustee, any amounts remaining in the Distribution Account for payment
      to
      the Residual Certificateholders, as set forth in Section [___] of the Trust
      Agreement.

     

    Section
      5.04  The
      Policy; the Policy Payment Account.  

     

    (a) By
      the
      close of business on the Business Day preceding each Determination Date the
      Indenture Trustee shall determine with respect to the immediately following
      Payment Date, the Deficiency Amount, if any.

     

    (b) If
      the
      Indenture Trustee determines pursuant to paragraph (a) above that a Deficiency
      Amount would exist, the Indenture Trustee shall complete a Notice in the form
      of
      Exhibit A to the Policy and submit such notice to the Insurer no later than
      12:00 noon New York City time on the related Determination Date preceding such
      Payment Date as a claim for the payment of an Insured Amount in an amount equal
      to the Deficiency Amount.

     

    (c) The
      Indenture Trustee shall establish an Eligible Account (which may be a
      sub-account of the Distribution Account) for the benefit of the Noteholders
      and
      the Insurer referred to herein as the “Policy Payment Account” over which the
      Indenture Trustee shall have exclusive control and sole right of withdrawal.
      The
      Indenture Trustee shall deposit upon receipt any amount paid under the Policy
      into the Policy Payment Account and distribute such amount only for purposes
      of
      payment to the Noteholders of the Insured Amount for which a claim was made
      and
      such amount may not be applied to satisfy any costs, expenses or liabilities
      of
      the Seller, the Depositor, the Master Servicer, the Servicers, the Indenture
      Trustee or the Issuer. Amounts paid under the Policy, to the extent needed
      to
      pay the Insured Amount, shall be disbursed by the Indenture Trustee to the
      Noteholders in accordance with Section 5.03(b). It shall not be necessary for
      such payments to be made by check or wire transfers separate from checks or
      wire
      transfers used to pay the Insured Amount with other funds available to make
      such
      payment. However, the amount of any payment of principal or interest on the
      Notes to be paid from funds transferred from the Policy Payment Account shall
      be
      noted as provided in subsection (d) of this Section 5.04 in the Note Register
      and in the Indenture Trustee’s Statement to Noteholders. Funds held in the
      Policy Payment Account shall not be invested. Any funds remaining in the Policy
      Payment Account on the first Business Day following a Payment Date shall be
      returned to the Insurer pursuant to the written instructions of the Insurer
      by
      the end of such Business Day.

     

    (d) The
      Indenture Trustee shall keep a complete and accurate record of the amount of
      interest and principal paid in respect of any Note from moneys received under
      the Policy. The Insurer shall have the right to inspect such records at
      reasonable times during normal business hours upon one (1) Business Day’s prior
      written notice to the Indenture Trustee.

     

    
      
        
        

      

      
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    (e) The
      Indenture Trustee shall, upon retirement of the Notes, furnish to the Insurer
      a
      notice of such retirement, and, upon retirement of the Notes, and, upon
      retirement of the Notes and the expiration of the term of the Policy surrender
      the Policy to the Insurer for cancellation.

     

    Section
      5.05  [Reserved]. 

     

    Section
      5.06  [Reserved]. 

     

    Section
      5.07  The
      Certificate Account.
      a)
      The
      Administrator, for the benefit of the Certificateholders, shall establish and
      maintain in the name of the Owner Trustee on behalf of the Certificateholders
      an
      account (the “Certificate Account”) entitled “Certificate Account, [______], as
      Owner Trustee, in trust for the holders of Thornburg Mortgage Securities Trust
      [
      ], Residual Certificates.”

     

    (b) On
      each
      Payment Date, the Indenture Trustee shall withdraw from the Distribution Account
      all amounts required to be deposited in the Certificate Account pursuant to
      Section 5.03 and remit such amount to the Owner Trustee or the Administrator
      for
      deposit into the Certificate Account. On each Payment Date, the Owner Trustee
      or
      the Administrator shall distribute all amounts on deposit in the Certificate
      Account to the Certificateholders in respect of the Residual Certificates as
      provided in the Trust Agreement. On the Payment Date on which the Note Principal
      Amount is reduced to zero, the Administrator shall distribute all amounts
      remaining on deposit in the Certificate Account to the Certificateholders in
      respect of the Residual Certificates in order to clear and terminate the
      Certificate Account in connection with the termination of this
      Agreement.

     

    (c) All
      distributions made on the Residual Certificates shall be made by wire transfer
      of immediately available funds to the account of such Certificateholders. The
      final distribution on the Residual Certificates will be made in like manner,
      but
      only upon presentment and surrender of such Residual Certificates at the
      location specified in the notice to the Certificateholders of such final
      distribution. 

     

    Section
      5.08  Control
      of the Trust Accounts. 

     

    (a) The
      Depositor, the Issuer and the Indenture Trustee hereby appoint [_________]
      as
      Securities Intermediary with respect to the Trust Accounts, and the Issuer
      has,
      pursuant to the Indenture, granted to the Indenture Trustee, for the benefit
      of
      the Securityholders and the Insurer, a security interest to secure all amounts
      due Securityholders and the Insurer hereunder in and to the Trust Accounts
      and
      the Security Entitlements to all Financial Assets credited to the Trust
      Accounts, including without limitation all amounts, securities, investments,
      Financial Assets, investment property and other property from time to time
      deposited in or credited to the Trust Accounts and all proceeds thereof, and
      the
      Depositor hereby grants to the Issuer, as collateral agent for the benefit
      of
      Certificateholders, a security interest to secure all amounts due
      Certificateholders hereunder in and to the Certificate Account and the Security
      Entitlements and all Financial Assets credited to the Certificate Account,
      including without limitation all amounts, securities, investments, Financial
      Assets, investment property and other property from time to time deposited
      in or
      credited to such account and all proceeds thereof. Amounts held from time to
      time in the Trust Accounts will continue to be held by the Securities
      Intermediary for the benefit of the Indenture Trustee, as collateral agent,
      for
      the benefit of the Securityholders and the Insurer, and amounts held from time
      to time in the Certificate Account will continue to be held by the Securities
      Intermediary for the benefit of the Issuer, as collateral agent, for the benefit
      of the Certificateholders. Upon the termination of the Trust or the discharge
      of
      the Indenture, the Indenture Trustee shall inform the Securities Intermediary
      of
      such termination. By acceptance of their Securities or interests therein, the
      Securityholders shall be deemed to have appointed [_________] as Securities
      Intermediary and [_________] hereby accepts such appointment as Securities
      Intermediary.

     

    
      
        
        

      

      
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    (b) With
      respect to the Trust Account Property credited to the Trust Accounts, or the
      Certificate Account, the Securities Intermediary agrees that:

     

    (i)
       with
      respect to any Trust Account Property that is held in deposit accounts, each
      such deposit account shall be subject to the exclusive custody and control
      of
      the Securities Intermediary, and the Securities Intermediary shall have sole
      signature authority with respect thereto;

     

    (ii)
       the
      sole
      assets permitted in the Trust Accounts shall be those as the Securities
      Intermediary agrees to treat as Financial Assets; and

     

    (iii)
       any
      such
      Trust Account Property that is, or is treated as, a Financial Asset shall be
      physically delivered (accompanied by any required endorsements) to, or credited
      to an account in the name of, the Securities Intermediary or other eligible
      institution maintaining any Trust Account or the Certificate Account in
      accordance with the Securities Intermediary’s customary procedures such that the
      Securities Intermediary or such other institution establishes a Security
      Entitlement in favor of the Indenture Trustee (or the Issuer, in the case of
      the
      Certificate Distribution Account) with respect thereto over which the Securities
      Intermediary or such other institution has Control;

     

    (c) The
      Securities Intermediary hereby confirms that (A) each Trust Account and the
      Certificate Account is an account to which Financial Assets are or may be
      credited, and the Securities Intermediary shall, subject to the terms of this
      Agreement, treat the Indenture Trustee, as collateral agent, as entitled to
      exercise the rights that comprise any Financial Asset credited to any Trust
      Account, and the Issuer, as collateral agent, as entitled to exercise the rights
      that comprise any Financial Asset credited to the Certificate Account, (B)
      all
      Trust Account Property in respect of any Trust Account or the Certificate
      Account will be promptly credited by the Securities Intermediary to such
      account, and (C) all securities or other property underlying any Financial
      Assets credited to any Trust Account or the Certificate Account shall be
      registered in the name of the Securities Intermediary, endorsed to the
      Securities Intermediary or in blank or credited to another securities account
      maintained in the name of the Securities Intermediary and in no case (x) will
      any Financial Asset credited to any Trust Account be registered in the name
      of
      the Depositor or the Issuer, payable to the order of the Depositor or the Issuer
      or specially endorsed to the Depositor or the Issuer, or (y) will any Financial
      Asset credited to the Certificate Account be registered in the name of the
      Depositor, payable to the order of the Depositor or specially endorsed to the
      Depositor, except to the extent the foregoing have been specially endorsed
      to
      the Securities Intermediary or in blank;

     

    
      
        
        

      

      
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    (d) The
      Securities Intermediary hereby agrees that each item of property (whether
      investment property, Financial Asset, security, instrument or cash) credited
      to
      any Trust Account or the Certificate Account shall be treated as a Financial
      Asset;

     

    (e) If
      at any
      time the Securities Intermediary shall receive an Entitlement Order from the
      Indenture Trustee directing transfer or redemption of any Financial Asset
      relating to any Trust Account, the Securities Intermediary shall comply with
      such Entitlement Order without further consent by the Depositor, the Issuer
      or
      any other Person. If at any time the Indenture Trustee notifies the Securities
      Intermediary in writing that the Issuer has been terminated or the Indenture
      discharged in accordance herewith and with the Trust Agreement or the Indenture,
      as applicable, and the security interest granted pursuant to the Indenture
      has
      been released, then thereafter if the Securities Intermediary shall receive
      any
      order from the Depositor or the Issuer directing transfer or redemption of
      any
      Financial Asset relating to any Trust Account, the Securities Intermediary
      shall
      comply with such Entitlement Order without further consent by the Indenture
      Trustee or any other Person;

     

    If
      at any
      time the Securities Intermediary shall receive an Entitlement Order from the
      Issuer directing transfer or redemption of any Financial Asset relating to
      the
      Certificate Account, the Securities Intermediary shall comply with such
      Entitlement Order without further consent by the Depositor or any other Person.
      If at any time the Issuer notifies the Securities Intermediary in writing that
      the Issuer has been terminated in accordance herewith and with the Trust
      Agreement and the security interest granted above has been released, then
      thereafter if the Securities Intermediary shall receive any order from the
      Depositor directing transfer or redemption of any Financial Asset relating
      to
      the Certificate Depositor Account, the Securities Intermediary shall comply
      with
      such entitlement order without further consent by the Issuer or any other
      Person;

     

    (f) In
      the
      event that the Securities Intermediary has or subsequently obtains by agreement,
      operation of law or otherwise a security interest in any Trust Account or the
      Certificate Account or any Financial Asset credited thereto, the Securities
      Intermediary hereby agrees that such security interest shall be subordinate
      to
      the security interest of the Indenture Trustee, in the case of the Trust
      Accounts, or of the Issuer, in the case of the Certificate Account. The
      Financial Assets credited to the Trust Accounts, or the Certificate Account
      will
      not be subject to deduction, set-off, banker’s lien, or any other right in favor
      of any Person other than the Indenture Trustee in the case of the Trust
      Accounts, or of the Issuer, in the case of the Certificate Account (except
      that
      the Securities Intermediary may set-off (i) all amounts due to it in respect
      of
      its customary fees and expenses for the routine maintenance and operation of
      the
      Trust Accounts, and the Certificate Account, and (ii) the face amount of any
      checks which have been credited to any Trust Account or the Certificate Account
      but are subsequently returned unpaid because of uncollected or insufficient
      funds);

     

    
      
        
        

      

      
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    (g) There
      are
      no other agreements entered into between the Securities Intermediary in such
      capacity and the Depositor or the Issuer with respect to any Trust Account,
      or
      the Depositor with respect to the Certificate Account. In the event of any
      conflict between this Agreement (or any provision of this Agreement) and any
      other agreement now existing or hereafter entered into, the terms of this
      Agreement shall prevail;

     

    (h) The
      rights and powers granted under the Indenture and herein to (x) the Indenture
      Trustee have been granted in order to perfect its security interest in the
      Trust
      Accounts and the Security Entitlements to the Financial Assets credited thereto,
      and (y) the Issuer have been granted in order to perfect its security interest
      in the Certificate Account and the Security Entitlements to the Financial Assets
      credited thereto, and are powers coupled with an interest and will neither
      be
      affected by the bankruptcy of the Depositor or the Issuer nor by the lapse
      of
      time. The obligations of the Securities Intermediary hereunder shall continue
      in
      effect until the security interest of the Indenture Trustee in the Trust
      Accounts or of the Issuer in the Certificate Account, and in such Security
      Entitlements, has been terminated pursuant to the terms of this Agreement and
      the Indenture Trustee or the Issuer, as applicable, has notified the Securities
      Intermediary of such termination in writing; and

     

    (i) Notwithstanding
      anything else contained herein, the Depositor and the Issuer agree that the
      Trust Accounts and the Certificate Account will be established only with the
      Securities Intermediary or another institution meeting the requirements of
      this
      Section, which by acceptance of its appointment as Securities Intermediary
      agrees substantially as follows: (1) it will comply with Entitlement Orders
      related to the Trust Accounts issued by the Indenture Trustee, as collateral
      agent, without further consent by the Depositor or the Issuer, and with
      Entitlement Orders related to the Certificate Account issued by the Issuer,
      as
      collateral agent, without further consent by the Depositor; (2) until
      termination of the Issuer or discharge of the Indenture, it will not enter
      into
      any other agreement related to such accounts pursuant to which it agrees to
      comply with Entitlement Orders of any Person other than the Indenture Trustee,
      as collateral agent with respect to the Trust Accounts or the Issuer, as
      collateral agent with respect to the Certificate Account; and (3) all assets
      delivered or credited to it in connection with such accounts and all investments
      thereof will be promptly credited to the applicable account.

     

    (j) Notwithstanding
      the foregoing, the Issuer shall have the power, revocable by the Indenture
      Trustee or by the Owner Trustee with the consent of the Indenture Trustee,
      to
      instruct the Indenture Trustee and the Master Servicer to make withdrawals
      and
      distributions from the Trust Accounts for the purpose of permitting the Master
      Servicer or the Owner Trustee to carry out its respective duties hereunder
      or
      permitting the Indenture Trustee to carry out its duties under the
      Indenture.

     

    (k) Each
      of
      the Depositor and the Issuer agrees to take or cause to be taken such further
      actions, to execute, deliver and file or cause to be executed, delivered and
      filed such further documents and instruments (including, without limitation,
      any
      financing statements under the Relevant UCC or this Agreement) as may be
      necessary to perfect the interests created by this Section in favor of the
      Issuer and the Indenture Trustee and otherwise fully to effectuate the purposes,
      terms and conditions of this Section. The Depositor shall:

     

    
      
        
        

      

      
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    (i)
       promptly
      execute, deliver and file any financing statements, amendments, continuation
      statements, assignments, certificates and other documents with respect to such
      interests and perform all such other acts as may be necessary in order to
      perfect or to maintain the perfection of the Issuer’s and the Indenture
      Trustee’s security interest in the Trust Account Property; and

     

    (ii)
       make
      the
      necessary filings of financing statements or amendments thereto within five
      days
      after the occurrence of any of the following: (1) any change in its corporate
      name or any trade name or its jurisdiction of organization; (2) any change
      in
      the location of its chief executive office or principal place of business;
      and
      (3) any merger or consolidation or other change in its identity or corporate
      structure and promptly notify the Issuer and the Indenture Trustee of any such
      filings.

     

    (iii)
       Neither
      the Depositor nor the Issuer shall organize under the law of any jurisdiction
      other than the State under which each is organized as of the Closing Date
      (whether changing its jurisdiction of organization or organizing under an
      additional jurisdiction) without giving 30 days prior written notice of such
      action to its immediate and mediate transferee, including the Indenture Trustee
      and the Insurer. Before effecting such change, each of the Depositor or the
      Issuer proposing to change its jurisdiction of organization shall prepare and
      file in the appropriate filing office any financing statements or other
      statements necessary to continue the perfection of the interests of its
      immediate and mediate transferees, including the Indenture Trustee, in the
      Trust
      Account Property. In connection with the transactions contemplated by the
      Operative Agreements relating to the Trust Account Property, each of the
      Depositor and the Issuer authorizes its immediate or mediate transferee,
      including the Indenture Trustee, to file in any filing office any initial
      financing statements, any amendments to financing statements, any continuation
      statements, or any other statements or filings described in this Section
      5.10.

     

    None
      of
      the Securities Intermediary or any director, officer, employee or agent of
      the
      Securities Intermediary shall be under any liability to the Indenture Trustee
      or
      the Securityholders for any action taken, or not taken, in good faith pursuant
      to this Agreement, or for errors in judgment; provided,
      however,
      that
      this provision shall not protect the Securities Intermediary against any
      liability to the Indenture Trustee or the Securityholders which would otherwise
      be imposed by reason of the Securities Intermediary’s willful misconduct, bad
      faith or negligence in the performance of its obligations or duties hereunder.
      The Securities Intermediary and any director, officer, employee or agent of
      the
      Securities Intermediary may rely in good faith on any document of any kind
      which, prima facie, is properly executed and submitted by any Person respecting
      any matters arising hereunder. The Securities Intermediary shall be under no
      duty to inquire into or investigate the validity, accuracy or content of such
      document. The Issuer shall indemnify the Securities Intermediary for and hold
      it
      harmless against any loss, liability or expense arising out of or in connection
      with this Agreement and carrying out its duties hereunder, including the costs
      and expenses of defending itself against any claim of liability, except in
      those
      cases where the Securities Intermediary has been guilty of bad faith, negligence
      or willful misconduct. The foregoing indemnification shall survive any
      termination of this Agreement or the resignation or removal of the Securities
      Intermediary.

     

    
      
        
        

      

      
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    ARTICLE
      VI

     

    EVENTS
      OF
      MASTER SERVICER TERMINATION

     

    Section
      6.01  Events
      of Master Servicer Termination; Indenture Trustee To Act; Appointment of
      Successor.  

     

    (a) The
      occurrence of any one or more of the following events shall constitute an “Event
      of Master Servicer Termination”:

     

    (i)
       Any
      failure by the Master Servicer to furnish to the Indenture Trustee the Mortgage
      Loan data sufficient to prepare the reports described in Section 4.09(a) (other
      than with respect to the information referred to in clauses (xviii), (xix)
      and
      (xx) of such Section 4.09(a)) which continues unremedied for a period of one
      (1)
      Business Day after the date upon which written notice of such failure shall
      have
      been given to such Master Servicer by the Indenture Trustee or to such Master
      Servicer and the Indenture Trustee by the Insurer or by Holders of not less
      than
      25% of the Note Principal Amount the Notes; or

     

    (ii)
       Any
      failure on the part of the Master Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of the
      Master Servicer contained in this Agreement which continues unremedied for
      a
      period of 30 days after the date on which written notice of such failure,
      requiring the same to be remedied, shall have been given to the Master Servicer
      by the Indenture Trustee or to the Master Servicer and the Indenture Trustee
      by
      the Controlling Party; or

     

    (iii)
       A
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      for
      the appointment of a conservator or receiver or liquidator in any insolvency,
      readjustment of debt, marshalling of assets and liabilities or similar
      proceedings, or for the winding-up or liquidation of its affairs, shall have
      been entered against the Master Servicer, and such decree or order shall have
      remained in force undischarged or unstayed for a period of 60 days or any Rating
      Agency reduces or withdraws or threatens to reduce or withdraw the rating of
      the
      Notes without taking into account the Policy because of the financial condition
      or loan servicing capability of such Master Servicer; or

     

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

     

    (v)
       The
      Master Servicer shall admit in writing its inability to pay its debts generally
      as they become due, file a petition to take advantage of any applicable
      insolvency or reorganization statute, make an assignment for the benefit of
      its
      creditors or voluntarily suspend payment of its obligations; or

     

    
      
        
        

      

      
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    (vi)
       The
      Master Servicer shall be dissolved, or shall dispose of all or substantially
      all
      of its assets, or consolidate with or merge into another entity or shall permit
      another entity to consolidate or merge into it, such that the resulting entity
      does not meet the criteria for a successor servicer as specified in Section
      4.28
      hereof; or

     

    (vii)
       If
      a
      representation or warranty set forth in Section 3.02 hereof shall prove to
      be
      incorrect as of the time made in any respect that materially and adversely
      affects the interests of the Securityholders or the Insurer, and the
      circumstance or condition in respect of which such representation or warranty
      was incorrect shall not have been eliminated or cured within 30 days after
      the
      date on which written notice of such incorrect representation or warranty shall
      have been given to the Master Servicer by the Indenture Trustee, or to the
      Master Servicer and the Indenture Trustee by the Controlling Party;
      or

     

    (viii)
       A
      sale or
      pledge of any of the rights of the Master Servicer hereunder or an assignment
      of
      this Agreement by the Master Servicer or a delegation of the rights or duties
      of
      the Master Servicer hereunder shall have occurred in any manner not otherwise
      permitted hereunder and without the prior written consent of the Controlling
      Party; or

     

    (ix)
       The
      Master Servicer has notice or actual knowledge that any Servicer at any time
      is
      not either an FNMA- or FHLMC- approved Seller/Servicer, and the Master Servicer
      has not terminated the rights and obligations of such Servicer under the
      applicable Servicing Agreement and replaced such Servicer with an FNMA- or
      FHLMC-approved servicer which is acceptable to the Insurer within 60 days of
      the
      date the Master Servicer receives such notice or acquires such actual knowledge;
      or

     

    (x)
       After
      receipt of notice from the Indenture Trustee, any failure of the Master Servicer
      to remit to the Indenture Trustee any payment required to be made to the
      Indenture Trustee for the benefit of Securityholders under the terms of this
      Agreement, including any Advance, on any Deposit Date which failure continues
      unremedied for a period of one Business Day after the date upon which notice
      of
      such failure shall have been given to the Master Servicer by the Indenture
      Trustee or the Insurer.

     

    If
      an
      Event of Master Servicer Termination described in clauses (i) through (ix)
      of
      this Section 6.01 shall occur, then, in each and every case, subject to
      applicable law, so long as any such Event of Master Servicer Termination shall
      not have been remedied within any period of time prescribed by this Section
      6.01, the Indenture Trustee, by notice in writing to the Master Servicer may,
      with the consent of the Insurer and shall, if so directed by the Controlling
      Party, terminate all of the rights and obligations of the Master Servicer
      hereunder and in and to the Mortgage Loans and the proceeds thereof. If an
      Event
      of Master Servicer Termination described in clause (x) of this Section 6.01
      shall occur, then, in each and every case, subject to applicable law, so long
      as
      such Event of Master Servicer Termination shall not have been remedied within
      the time period prescribed by clause (x) of this Section 6.01, the Indenture
      Trustee with the consent of the Insurer, by notice in writing to the Master
      Servicer, shall promptly terminate all of the rights and obligations of the
      Master Servicer hereunder and in and to the Mortgage Loans and the proceeds
      thereof. On or after the receipt by the Master Servicer of such written notice,
      all authority and power of the Master Servicer, and only in its capacity as
      Master Servicer under this Agreement, whether with respect to the Mortgage
      Loans
      or otherwise, shall pass to and be vested in the Indenture Trustee pursuant
      to
      and under the terms of this Agreement; and the Indenture Trustee is hereby
      authorized and empowered to execute and deliver, on behalf of the defaulting
      Master Servicer as attorney-in-fact or otherwise, any and all documents and
      other instruments, and to do or accomplish all other acts or things necessary
      or
      appropriate to effect the purposes of such notice of termination, whether to
      complete the transfer and endorsement or assignment of the Mortgage Loans and
      related documents or otherwise. The defaulting Master Servicer agrees to
      cooperate with the Indenture Trustee in effecting the termination of the
      defaulting Master Servicer’s responsibilities and rights hereunder as Master
      Servicer including, without limitation, notifying the Servicers of the
      assignment of the master servicing function and providing the Indenture Trustee
      or its designee all documents and records in electronic or other form reasonably
      requested by it to enable the Indenture Trustee or its designee to assume the
      defaulting Master Servicer’s functions hereunder and the transfer to the
      Indenture Trustee for administration by it of all amounts which shall at the
      time be or should have been deposited by the defaulting Master Servicer in
      the
      Collection Account maintained by such defaulting Master Servicer and any other
      account or fund maintained with respect to the Securities or thereafter received
      with respect to the Mortgage Loans. The Master Servicer being terminated shall
      bear all costs of a master servicing transfer, including but not limited to
      those of the Indenture Trustee reasonably allocable to specific employees and
      overhead, legal fees and expenses, accounting and financial consulting fees
      and
      expenses, and costs of amending the Agreement, if necessary.

     

    
      
        
        

      

      
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    The
      Indenture Trustee shall be entitled to be reimbursed from the Master Servicer
      (or by the Trust Estate, if the Master Servicer is unable to fulfill its
      obligations hereunder) for all costs associated with the transfer of servicing
      from the predecessor Master Servicer, including, without limitation, any costs
      or expenses associated with the complete transfer of all servicing data and
      the
      completion, correction or manipulation of such servicing data as may be required
      by the Indenture Trustee to correct any errors or insufficiencies in the
      servicing data or otherwise to enable the Indenture Trustee to master service
      the Mortgage Loans properly and effectively. If the terminated Master Servicer
      does not pay such reimbursement within thirty (30) days of its receipt of an
      invoice therefore, such reimbursement shall be an expense of the Trust Estate
      and the Indenture Trustee shall be entitled to withdraw such reimbursement
      from
      amounts on deposit in the Distribution Account pursuant to Section 5.02(b);
      provided that the terminated Master Servicer shall reimburse the Trust Estate
      for any such expense incurred by the Trust Estate; and provided, further, that
      the Indenture Trustee acting at the direction of the Insurer shall decide
      whether and to what extent it is in the best interest of the Securityholders
      to
      pursue any remedy against any party obligated to make such
      reimbursement.

     

    Notwithstanding
      the termination of its activities as Master Servicer, the terminated Master
      Servicer shall continue to be entitled to reimbursement to the extent provided
      in Section 4.08 to the extent such reimbursement relates to the period prior
      to
      such Master Servicer’s termination [; provided that the Master Servicer shall
      not be entitled to reimbursement for such amounts to the extent that the Master
      Servicer has not reimbursed the Indenture Trustee or Trust Estate for the
      servicing transfer costs in accordance with the preceding
      paragraph.]

     

    
      
        
        

      

      
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    If
      any
      Event of Master Servicer Termination shall occur, of which a Responsible Officer
      of the Indenture Trustee has actual knowledge, the Indenture Trustee shall
      promptly notify each Rating Agency of the nature and extent of such Event of
      Master Servicer Termination. The Indenture Trustee shall immediately give
      written notice to the Master Servicer upon the Master Servicer’s failure to
      remit funds on the Deposit Date.

     

    (b) On
      and
      after the time the Master Servicer receives a notice of termination from the
      Indenture Trustee pursuant to Section 6.01(a) or the Indenture Trustee receives
      the resignation of the Master Servicer evidenced by an Opinion of Counsel
      pursuant to Section 4.29, the Indenture Trustee, unless another master servicer
      shall have been appointed, shall be the successor in all respects to the Master
      Servicer in its capacity as such under this Agreement and the transactions
      set
      forth or provided for herein and shall have all the rights and powers and be
      subject to all the responsibilities, duties and liabilities relating thereto
      and
      arising thereafter placed on the Master Servicer hereunder, including the
      obligation to make Advances; provided,
      however,
      that
      any failure to perform such duties or responsibilities caused by the Master
      Servicer’s failure to provide information required by this Agreement shall not
      be considered a default by the Indenture Trustee hereunder. In addition, the
      Indenture Trustee shall have no responsibility for any act or omission of the
      Master Servicer prior to the issuance of any notice of termination and shall
      have no liability relating to the representations and warranties of the Master
      Servicer set forth in Section 3.02. In the Indenture Trustee’s capacity as such
      successor, the Indenture Trustee shall have the same limitations on liability
      herein granted to the Master Servicer. As compensation therefor, the Indenture
      Trustee shall be entitled to receive all compensation payable to the Master
      Servicer under this Agreement.

     

    (c) Notwithstanding
      the above, the Indenture Trustee may, if it shall be unwilling to continue
      to so
      act, or shall, if it is unable to so act, appoint, or petition a court of
      competent jurisdiction to appoint, any established housing and home finance
      institution servicer, master servicer, servicing or mortgage servicing
      institution having a net worth of not less than $15,000,000 and meeting such
      other standards for a successor master servicer as are set forth in this
      Agreement, as the successor to such Master Servicer in the assumption of all
      of
      the responsibilities, duties or liabilities of a master servicer, like the
      Master Servicer; provided that any successor Master Servicer must be acceptable
      to the Insurer. Such successor Master Servicer may be an Affiliate of the
      Indenture Trustee; provided,
      however,
      that,
      unless such Affiliate meets the net worth requirements and other standards
      set
      forth herein for a successor master servicer, the Indenture Trustee, in its
      individual capacity shall agree, at the time of such designation, to be and
      remain liable to the Issuer and the Indenture Trustee for such Affiliate’s
      actions and omissions in performing its duties hereunder. In connection with
      such appointment and assumption, the Indenture Trustee may make such
      arrangements for the compensation of such successor out of payments on the
      Mortgage Loans as it and such successor shall agree; provided,
      however,
      that no
      such compensation shall be in excess of that permitted to the Master Servicer
      hereunder. The Indenture Trustee and such successor shall take such actions,
      consistent with this Agreement, as shall be necessary to effectuate any such
      succession and may make other arrangements with respect to the servicing to
      be
      conducted hereunder which are not inconsistent herewith. The Master Servicer
      shall cooperate with the Indenture Trustee and any successor master servicer
      in
      effecting the termination of the Master Servicer’s responsibilities and rights
      hereunder including, without limitation, notifying Servicers of the assignment
      of the master servicing functions and providing the Indenture Trustee and
      successor master servicer, as applicable, all documents and records in
      electronic or other form reasonably requested by it to enable it to assume
      the
      Master Servicer’s functions hereunder and the transfer to the Indenture Trustee
      or such successor master servicer, as applicable, all amounts or investment
      property which shall at the time be or should have been deposited by the Master
      Servicer in the Collection Account and any other account or fund maintained
      with
      respect to the Securities or thereafter be received with respect to the Mortgage
      Loans. Neither the Indenture Trustee nor any other successor master servicer
      shall be deemed to be in default hereunder by reason of any failure to make,
      or
      any delay in making, any distribution hereunder or any portion thereof caused
      by
      (i) the failure of the Master Servicer to deliver, or any delay in delivering,
      cash, documents or records to it, (ii) the failure of the Master Servicer to
      cooperate as required by this Agreement, (iii) the failure of the Master
      Servicer to deliver the Mortgage Loan data to the Indenture Trustee as required
      by this Agreement or (iv) restrictions imposed by any regulatory authority
      having jurisdiction over the Master Servicer. 

     

    
      
        
        

      

      
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    Section
      6.02  Additional
      Remedies of Indenture Trustee Upon Event of Master Servicer
      Termination.
      During
      the continuance of any Event of Master Servicer Termination, so long as such
      Event of Master Servicer Termination shall not have been remedied, the Indenture
      Trustee, in addition to the rights specified in Section 6.01, shall have the
      right, in its own name and as trustee of an express trust, to take all actions
      now or hereafter existing at law, in equity or by statute to enforce its rights
      and remedies and to protect the interests, and enforce the rights and remedies,
      of the Securityholders (including the institution and prosecution of all
      judicial, administrative and other proceedings and the filings of proofs of
      claim and debt in connection therewith) and the Insurer. Except as otherwise
      expressly provided in this Agreement, no remedy provided for by this Agreement
      shall be exclusive of any other remedy, and each and every remedy shall be
      cumulative and in addition to any other remedy, and no delay or omission to
      exercise any right or remedy shall impair any such right or remedy or shall
      be
      deemed to be a waiver of any Event of Master Servicer Termination.

     

    Section
      6.03  Waiver
      of Defaults.
      The
      Controlling Party may, on behalf of all Securityholders, waive any default
      or
      Event of Master Servicer Termination by the Master Servicer in the performance
      of its obligations hereunder, except that a default in the making of any
      required deposit to the Distribution Account or the Certificate Account that
      would result in a failure of the Indenture Trustee to make any required payment
      of principal of or interest on the Securities may only be waived with the
      consent of 100% of the affected Securityholders. Upon any such waiver of a
      past
      default, such default shall cease to exist, and any Event of Master Servicer
      Termination arising therefrom shall be deemed to have been remedied for every
      purpose of this Agreement. No such waiver shall extend to any subsequent or
      other default or impair any right consequent thereon except to the extent
      expressly so waived.

     

    Section
      6.04  Notification
      to Holders.
      Upon
      termination of the Master Servicer or appointment of a successor to the Master
      Servicer, in each case as provided herein, the Indenture Trustee shall promptly
      mail notice thereof by first class mail to the Insurer and the Securityholders
      at their respective addresses appearing on the Note Register. The Indenture
      Trustee shall also, within 45 days after the occurrence of any Event of Master
      Servicer Termination known to the Indenture Trustee, give written notice thereof
      to Securityholders, unless such Event of Master Servicer Termination shall
      have
      been cured or waived prior to the issuance of such notice and within such 45-day
      period.

     

    
      
        
        

      

      
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    Section
      6.05  Directions
      by Securityholders and Duties of Indenture Trustee During Event of Master
      Servicer Termination.
      During
      the continuance of any Event of Master Servicer Termination, the Controlling
      Party may direct the time, method and place of conducting any proceeding for
      any
      remedy available to the Indenture Trustee, or exercising any Issuer or power
      conferred upon the Indenture Trustee, under this Agreement; provided,
      however,
      that the
      Indenture Trustee shall be under no obligation to pursue any such remedy, or
      to
      exercise any of the trusts or powers vested in it by this Agreement (including,
      without limitation, (i) the conducting or defending of any administrative action
      or litigation hereunder or in relation hereto and (ii) the terminating of the
      Master Servicer or any successor master servicer from its rights and duties
      as
      master servicer hereunder) at the request, order or direction of the Controlling
      Party, unless such Controlling Party shall have offered to the Indenture Trustee
      reasonable security or indemnity against the cost, expenses and liabilities
      which may be incurred therein or thereby; and, provided further, that, the
      Indenture Trustee shall have the right to decline to follow any such direction
      if the Indenture Trustee, in accordance with an Opinion of Counsel, determines
      that the action or proceeding so directed may not lawfully be taken or if the
      Indenture Trustee in good faith determines that the action or proceeding so
      directed would involve it in personal liability for which it is not indemnified
      to its satisfaction.

     

    Section
      6.06  Action
      Upon Certain Failures of the Master Servicer and Upon Event of Master Servicer
      Termination.
      In the
      event that a Responsible Officer of the Indenture Trustee shall have actual
      knowledge of any action or inaction of the Master Servicer that would become
      an
      Event of Master Servicer Termination upon the Master Servicer’s failure to
      remedy the same after notice, the Indenture Trustee shall give notice thereof
      to
      the Master Servicer and the Insurer.

     

    Section
      6.07  Preparation
      of Reports.

     

    (a) The
      Depositor shall prepare or cause to be prepared the initial current report
      on
      Form 8-K. Thereafter, within 10 days (or, if applicable, within such shorter
      period of time as is required under the rules of the Securities and Exchange
      Commission (the “Commission”) as in effect from time to time (the “Rules”))
      following each Payment Date, the Indenture Trustee shall, in accordance with
      industry standards and the Rules, prepare and file with the Commission via
      the
      Electronic Data Gathering and Retrieval System (EDGAR), and the Master Servicer
      shall sign, a Form 10-D that includes (i) a copy of the statement to the
      Securityholders for such Payment Date and (iii) such other information as is
      required by Form 10-D, including, but not limited to, the information required
      by Item 1121 (§ 229.1121) of Regulation AB. The Depositor agrees to cooperate
      with the Indenture Trustee and Indenture Trustee’s counsel to assist the
      Indenture Trustee in determining the form and content of any filings that may
      be
      required pursuant to this Section 6.07(a), and, without limiting the Indenture
      Trustee’s responsibility hereunder, otherwise to assist the Indenture Trustee in
      fulfilling its duties under this Section 6.07(a).

     

    
      
        
        

      

      
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    Prior
      to
      January 30 in the first year as to which it has received prior instructions
      from
      the Depositor to do so, the Indenture Trustee shall, in accordance with industry
      standards, prepare and file a Form 15 Suspension Notification with respect
      to
      the Trust, if applicable.

     

    Prior
      to
      March 30, 20[__] and, unless and until a Form 15 Suspension Notification shall
      have been filed, on or prior to March 30 of each year thereafter, the Indenture
      Trustee shall file (but will not execute) a Form 10-K, and the Master Servicer
      shall sign, in substance conforming to industry standards and complying with
      the
      Rules, with respect to the Trust. Each Form 10-K shall include (w) the
      certification required pursuant to Rule 13a-14 under the Exchange Act), as
      amended (the “Form 10-K Certification”) signed by an appropriate party or
      parties (which Form 10-K Certification the Indenture Trustee shall not be
      required to prepare or sign) (x) the annual certifications delivered by the
      Indenture Trustee, the Administrator, the Master Servicer, the Owner Trustee,
      each Servicer and each Custodian pursuant to this Agreement, the Servicing
      Agreements, the Trust Agreement and the Custodial Agreements, (y) the related
      public accounting firm attestation reports and (z) such other information as
      is
      required by the Rules and Regulation AB. If any party’s report on assessment of
      compliance with servicing criteria required by clause (x) in the immediately
      preceding sentence, or the related public accounting firm attestation report
      required by clause (y) in the immediately preceding sentence, identifies any
      material instance of noncompliance with the servicing criteria specified in
      paragraph (d) of Item 1122 of Regulation AB (§ 229.1122(d)), the Indenture
      Trustee shall identify the material instance of noncompliance in such report
      in
      the Form 10-K; and in the event that the Indenture Trustee is unable to include
      any report required by either clause (x) or (y) in the immediately preceding
      sentence in the Form 10-K, the Indenture Trustee shall disclose such fact in
      the
      Form 10-K together with an explanation as to why such report is not included
      as
      an exhibit to the Form 10-K. The Indenture Trustee shall promptly send copies
      of
      each periodic report filed on Form 8-K or other applicable form, each annual
      report on Form 10-K, and each Form 15 Suspension Notification, together in
      each
      case with the acceptance confirmation receipt from EDGAR, to [_____________]
      and
      to the Depositor (i) by e-mail to the e-mail addresses provided in writing
      by
      each of [___________] and the Depositor, respectively and (ii) to [___________]
      at [____________________], and to the Depositor at the address specified in
      Section 9.07, in each case to the attention of a designated contact specified
      by
      each of [___________] and the Depositor, respectively.\

     

    The
      Indenture Trustee shall have no liability for any delay in filing the Form
      10-D,
      Form 10-K or Form 10-K Certification due to the failure of any party to sign
      such Form 10-D, Form 10-K or Form 10-K Certification. The Depositor agrees
      to
      promptly furnish to the Indenture Trustee, from time to time upon request,
      such
      further information, reports, and financial statements within its control
      related to this Agreement and the Mortgage Loans as the Depositor reasonably
      deems appropriate to prepare and file all necessary reports with the Commission.
      The Indenture Trustee shall have no responsibility to file any items other
      than
      those specified in this section.

     

    (b) If
      so
      requested, the Indenture Trustee shall sign a certification (in the form
      attached hereto as Exhibit I for the benefit of the Person(s) signing the Form
      10-K Certification regarding certain aspects of such Form 10-K Certification
      (provided,
      however,
      that
      the Indenture Trustee shall not be required to undertake an analysis of, and
      shall have no responsibility for, any financial information, accountant’s
      report, certification or other matter contained therein, except for computations
      performed by the Indenture Trustee and reflected in distribution reports.
      Nothing in this Section 6.07 shall relieve the Indenture Trustee of its
      responsibility for the matters as to which it is certifying in the form attached
      hereto as Exhibit I.

     

    
      
        
        

      

      
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    (c) Each
      person (including their officers or directors) that signs any Form 10-K
      Certification shall be entitled to indemnification from the Trust Estate for
      any
      liability or expense incurred by it in connection with such certification,
      other
      than any liability or expense attributable to such Person’s own bad faith,
      negligence or willful misconduct. The provisions of this subsection shall
      survive any termination of this Agreement and the resignation or removal of
      such
      Person.

     

    Section
      6.08  Reporting
      Requirements of the Commission and Indemnification.

     

    (a) On
      or
      before March 1 of each calendar year, the Indenture
      Trustee
      shall deliver to the Master Servicer and the Depositor a report regarding its
      assessment of compliance with the servicing criteria specified in paragraph
      (d)
      of Item 1122 of Regulation AB (§ 229.1122(d)), as of and for the period ending
      the end of the fiscal year ending no later than December 31 of the year prior
      to
      the year of delivery of the report, with respect to asset-backed security
      transactions taken as a whole in which the Master Servicer is performing any
      of
      the servicing criteria specified in paragraph (d) of Item 1122 of Regulation
      AB
      (§ 229.1122(d)) that it is performing pursuant to its obligations under this
      Agreement, and that are backed by the same asset type backing such asset-backed
      securities. Each such report shall include all of the statements required under
      paragraph (a) of Item 1122 of Regulation AB (§ 229.1122(a)).

     

    (b) On
      or
      before March 1 of each calendar year, the Indenture
      Trustee
      shall deliver to the Master Servicer and the Depositor a report by a registered
      public accounting firm that attests to, and reports on, the assessment made
      by
      the Indenture
      Trustee
      pursuant to subsection (a) above. Each such report shall be made in accordance
      with standards for attestation engagements issued or adopted by the Public
      Company Accounting Oversight Board.

     

    (c) The
      Indenture Trustee
      shall notify the Master Servicer and the Depositor
      (i) of any legal proceedings pending against the Indenture Trustee
      of the type described in Item 1117 (§
      229.1117) of
      Regulation AB and (ii) if the Indenture Trustee
      shall become (but only to the extent not previously disclosed) at any time
      an
      affiliate of any of the Sponsor, the Issuer, the Owner Trustee, the
      Administrator, the Master Servicer, any Servicer, any Originator contemplated
      by
      Item 1110 (§
      229.1110) of
      Regulation AB, any significant obligor contemplated by Item 1112 (§
      229.1112) of
      Regulation AB, any enhancement or support provider contemplated by Items 1114
      or
      1115 (§§
      229.1114-1115) of
      Regulation AB or any other material party to the Trust Fund contemplated by
      Item
      1100(d)(1) (§
      229.1100(d)(1)) of
      Regulation AB, as applicable.

     

    (d) The
      Indenture
      Trustee
      hereby agrees to indemnify and hold harmless the Depositor, its respective
      officers and directors and each person, if any, who controls the Depositor
      or
      Master Servicer within the meaning of Section 15 of the Securities Act, or
      Section 20 of the Exchange Act, from and against any and all losses, claims,
      expenses, damages or liabilities to which the
      Depositor, the Master Servicer, their
      respective officers or directors and any such controlling person may become
      subject under the Securities Act or otherwise, as and when such losses, claims,
      expenses, damages or liabilities are incurred, insofar as such losses, claims,
      expenses, damages or liabilities (or actions in respect thereof) arise out
      of or
      are based upon any untrue statement or alleged untrue statement of any material
      fact contained in any such
      items of information regarding this Agreement and matters related to the
      Indenture Trustee
      furnished by the Indenture Trustee to the Depositor and the Master
      Servicer,
      including as applicable (by way of example and not limitation), any information
      required pursuant to subsections 6.08(a) and (c) above (collectively, the
“Indenture Trustee Information”), or
      arise
      out of, or are based upon, the omission or alleged omission to state therein
      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, and will reimburse the
      Depositor, the Master Servicer, their
      respective officers or directors and any such controlling person for any legal
      or other expenses reasonably incurred by it or any of them in connection with
      investigating or defending any such loss, claim, expense, damage, liability
      or
      action, as and when incurred; provided,
      however,
      that
      the Indenture
      Trustee shall
      be
      liable only insofar as such untrue statement or alleged untrue statement or
      omission or alleged omission relates solely to the information in the
Indenture
      Trustee Information
      furnished to the Depositor or Master Servicer by or on behalf of the
Indenture
      Trustee specifically
      in connection with this Agreement.

     

    
      
        
        

      

      
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    ARTICLE
      VII

     

    RAPID
      AMORTIZATION EVENTS

     

    Section
      7.01  Rapid
      Amortization Events

     

    (a) 
      The
      following shall constitute Rapid Amortization Events with respect to the
      Notes:

     

    (a) default
      in the payment of any interest when the same becomes due and payable and such
      default continues for a period of five Business Days or a failure to pay the
      entire principal of any Note when the same becomes due and payable under the
      Indenture or on the Final Scheduled Payment Date.

     

    (b) failure
      on the part of the Issuer, the Master Servicer, the Seller or a Servicer, as
      the
      case may be, (i) to make any payment or deposit required by the terms of the
      Mortgage Loan Sale Agreement, this Agreement, the Indenture, the related
      Servicing Agreement or the Insurance Agreement, as applicable, within two
      Business Days after notification that such payment or deposit is required to
      be
      made, or (ii) to observe or perform in any material respect the covenants or
      agreements of the Issuer, the Master Servicer, the Seller or a Servicer, as
      the
      case may be, set forth in the Mortgage Loan Sale Agreement, Sale and Servicing
      Agreement, the Indenture, the related Servicing Agreement or the Insurance
      Agreement, as the case may be, and which, in the case of clause (ii), continues
      unremedied for a period of 60 days after the date on which written notice of
      such failure, requiring the same to be remedied, shall have been given to the
      Issuer, the Master Servicer, the Seller or a Servicer, as the case may be,
      by
      the Indenture Trustee, or to the Issuer, the Master Servicer, the Seller or
      a
      Servicer, as the case may be, and the Indenture Trustee by the Insurer or
      Holders of Notes evidencing more than 50% of the Outstanding
      Amount;

     

    
      
        
        

      

      
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    (c) the
      Issuer, the Master Servicer, the Seller or a Servicer or any of their
      Subsidiaries or Affiliates shall voluntarily go into liquidation, consent to
      the
      appointment of a conservator or receiver or liquidator or similar person in
      any
      insolvency, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings of or relating to the Issuer, the Master Servicer, the
      Seller or a Servicer or of or relating to all or substantially all of such
      Person’s property, or a decree or order of a court or agency or supervisory
      authority having jurisdiction in the premises for the appointment of a
      conservator, receiver, liquidator or similar person in any insolvency,
      readjustment of debt, marshalling of assets and liabilities or similar
      proceedings, or for the winding-up or liquidation of its affairs, shall have
      been entered against the Issuer, the Master Servicer, the Seller or a Servicer
      and such decree or order shall have remained in force undischarged or unstayed
      for a period of 30 days; or the Issuer, the Master Servicer, the Seller or
      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;

     

    (d) any
      representation or warranty made by the Issuer, the Master Servicer, the Seller
      or a Servicer, as the case may be, in this Indenture, the Mortgage Loan Sale
      Agreement, this Agreement, the Indenture, the related Servicing Agreement or
      the
      Insurance Agreement shall prove to have been incorrect in any material respect
      when made, as a result of which the interests of the Noteholders or the Insurer
      are materially and adversely affected and which continues to be incorrect in
      any
      material respect and continues to affect materially and adversely the interests
      of the Noteholders or the Insurer for a period of 60 days after the date on
      which written notice of such failure, requiring the same to be remedied, shall
      have been given to the Issuer, the Master Servicer, the Seller or a Servicer,
      as
      the case may be, by the Indenture Trustee, or to the Issuer, the Master
      Servicer, the Seller or a Servicer, as the case may be, and the Indenture
      Trustee by either the Insurer or the Holders of Notes evidencing more than
      50%
      of the Outstanding Amount; 

     

    (e) the
      Issuer becomes subject to regulation by the Commission as an investment company
      within the meaning of the Investment Company Act of 1940, as
      amended;

     

    (f) cumulative
      draws in respect of interest under the Policy exceed 1% of the aggregate Cut-off
      Date Pool Balance or there is any draw in respect of principal; and

     

    (g) an
      Event
      of Servicing Termination with respect to a Servicer pursuant to the related
      Servicing Agreement or an Event of Master Servicing Termination pursuant to
      this
      Agreement has occurred.

     

    In
      the
      case of any event described in clauses (a), (b), (e), (f) and (g) above, a
      Rapid
      Amortization Event will be deemed to have occurred only if, after the applicable
      grace period, if any, described in the Indenture or Sale and Servicing
      Agreement, any of the Indenture Trustee or Holders holding Notes evidencing
      more
      than 50% of the Outstanding Amount, in each case with the prior written consent
      of the Insurer (so long as no Insurer Default has occurred and is continuing)
      or
      the Insurer (so long as no Insurer Default has occurred and is continuing),
      by
      written notice to the Issuer, the Insurer, the Sponsor, and the Servicer (and
      to
      the Indenture Trustee, if given by the Noteholders or the Insurer) declare
      that
      a Rapid Amortization Event has occurred as of the date of such
      notice.

     

    
      
        
        

      

      
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    If
      a
      Rapid Amortization Event occurs solely due to either: (1) a failure on the
      part
      of one of the Servicers with respect to (b) above or (2) the occurrence of
      the
      event described in (f) above only with respect to one of the Servicers, a Rapid
      Amortization Event will only apply to the Mortgage Loans serviced by such
      Servicer.

     

    Following
      the occurrence of a Rapid Amortization Event (except for an event with respect
      to [_________]
      only
      described in either (b) or (g) above), if so directed by the Insurer, so long
      as
      no Insurer Default has occurred and is continuing, the Indenture Trustee will
      sell, dispose of or otherwise liquidate the Collateral with respect to the
      Mortgage Loans in a commercially reasonable manner and on commercially
      reasonable terms. With respect to the Notes, the net proceeds of such sale
      will
      be paid (i) first, pro rata to the Indenture Trustee the Indenture Trustee
      Expense Amount and any unpaid fees due and owing and to the Owner Trustee any
      unpaid fees due and owing, (ii) second, to the Holders of each class of Notes,
      pro rata based on Note Principal Balances, insofar as may be necessary to reduce
      the Note Principal Balance of such class, together with all accrued and unpaid
      interest due thereon, to zero, (iii) third, to reimburse the Insurer to the
      extent of unreimbursed draws under the Policy and other amounts owing to the
      Insurer, (iv) fourth, to the Indenture Trustee and the Owner Trustee, any
      unreimbursed expenses due and owing, including, with respect to the Indenture
      Trustee, all unreimbursed expenses incurred by the Indenture Trustee in
      connection with such Rapid Amortization Event and sale of the Collateral and
      (v)
      fifth, to the Residual Certificateholders, in the order and priority described
      in Section 5.03(b)(xi), any remaining amounts. 

     

    In
      addition to the consequences of a Rapid Amortization Event discussed above,
      if
      the Seller or a Servicer voluntarily files a bankruptcy petition or goes into
      liquidation or any person is appointed a receiver or bankruptcy trustee of
      the
      Seller or a Servicer, on the day of any such filing or appointment with respect
      to (i) the Seller, no further Additional Balances will be transferred to the
      Issuer and the Seller will promptly give notice to the Indenture Trustee and
      (ii) a Servicer, no further Additional Balances relating to Mortgage Loans
      serviced by such Servicer will be transferred to the Issuer and such Servicer
      will promptly give notice to the Indenture Trustee and the Insurer of any such
      filing or appointment. Within 15 days, the Indenture Trustee notify the Holders
      of the Notes of the occurrence of such event.

     

    Upon
      the
      occurrence of a Rapid Amortization Event, the related Servicer shall no longer
      receive any principal funds upon the transfer of Additional Balances to the
      Issuer in respect of the Additional Balance Contributed Amount but will be
      reimbursed directly by the Holder of the Class L Certificate. The Holder of
      the
      Class L Certificate will be reimbursed for such payments pursuant to Section
      5.01(b)(xi).

     

     

    ARTICLE
      VIII

     

    TERMINATION 

     

    Section
      8.01  Termination.
      The
      respective obligations and responsibilities of the Master Servicer, the
      Depositor, the Issuer and the Indenture Trustee created hereby (other than
      obligations expressly stated to survive the termination of the Trust) shall
      terminate on the date (the “Termination Date”) which is the earlier to occur
      of:

     

    
      
        
        

      

      
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    (i)
       the
      day
      after the day on which the Securities are paid in full (including payment
      pursuant to Section 8.02 below) all Reimbursement Amounts have been paid to
      the
      Insurer and the Policy has been surrendered to the Insurer; and

     

    (ii)
       the
      date
      that is 21 years from the death of the last survivor of the descendants of
      Joseph P. Kennedy, the late ambassador of the United States to the Court of
      St.
      James’s, living on the date hereof.

     

    Section
      8.02  Termination
      Prior to Maturity Date; and Optional Redemption.

     

    (a) On
      the
      payment on or after which the Note Principal Amount (after giving effect to
      payments of principal on such Payment Date) declines to 10% or less of the
      Original Note Principal Amount (“Optional Redemption Date”), the Master
      Servicer, acting directly or through one or more Affiliates, may purchase from
      the Issuer all (but not fewer than all) of the Mortgage Loans and all other
      property, with the consent of the Insurer if such purchase will result in a
      draw
      on the Policy or any Reimbursement Amounts are owing to the Insurer or will
      be
      owing to the Insurer as a result of such purchase, of the Issuer at a cash
      price
      equal to the Optional Redemption Price. The Master Servicer shall deliver
      written notice of its intention to exercise such option to the Issuer, the
      Insurer, the Indenture Trustee and the Master Servicer not less than ten days
      prior to the applicable Payment Date.

     

    In
      connection with such purchase, the Master Servicer shall remit to the Indenture
      Trustee all amounts then on deposit in the Collection Account in respect of
      the
      related Total Distribution Amount for deposit to the Distribution Account,
      which
      deposit shall be deemed to have occurred immediately preceding such purchase.
      Promptly following any such purchase, the Indenture Trustee or the applicable
      Custodian shall release the Mortgage Files to the purchaser of such Mortgage
      Loans pursuant to this Section 6.02, or otherwise upon its order

     

    Section
      8.03  [Reserved].

     

    Section
      8.04  Certain
      Notices upon Final Payment. The
      Master Servicer or the Administrator, as applicable, shall give the Issuer,
      the
      Indenture Trustee, the Issuer, each Rating Agency, each Securityholder and
      the
      Depositor at least 30 days’ prior written notice of the date on which the Issuer
      is expected to terminate in accordance with Section 8.01, or the date on which
      the Securities will be redeemed in accordance with Section 8.02. Not later
      than
      the fifth Business Day in the Due Period in which the final distribution in
      respect to the Securities is payable to the Securityholders, the Indenture
      Trustee shall mail to the Securityholders a notice specifying the procedures
      with respect to such final distribution. The Indenture Trustee shall give a
      copy
      of such notice to each Rating Agency and the Insurer at the time such notice
      is
      given to Securityholders. Following the final distribution thereon, such
      Securities shall become void, no longer outstanding and no longer evidence
      any
      right or interest in the Mortgage Loans, the Mortgage Files or any proceeds
      of
      the foregoing.

     

    Section
      8.05  Beneficiaries. This
      Agreement will inure to the benefit of and be binding upon the parties hereto,
      the Securityholders, and their respective successors and permitted assigns.
      In
      addition, the Insurer and its successors and assigns shall be third-party
      beneficiaries to the provisions of this Agreement, and shall be entitled to
      rely
      upon and directly to enforce the provisions of this Agreement as if a party
      hereto. No other Person will have any right or obligation
      hereunder.

     

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IX

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      9.01  Binding
      Nature of Agreement; Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and permitted assigns.

     

    Section
      9.02  Entire
      Agreement.
      This
      Agreement contains the entire agreement and understanding among the parties
      hereto with respect to the subject matter hereof, and supersedes all prior
      and
      contemporaneous agreements, understandings, inducements and conditions, express
      or implied, oral or written, of any nature whatsoever with respect to the
      subject matter hereof. The express terms hereof control and supersede any course
      of performance and/or usage of the trade inconsistent with any of the terms
      hereof.

     

    Section
      9.03  Amendment.

     

    (a) This
      Agreement may be amended from time to time by the Depositor, the Issuer, the
      Master Servicer, the Indenture Trustee and the Holder of the Residual
      Certificates, without notice to or the consent of any of the Holders of the
      Notes but with the consent of the Insurer, (i) to cure any ambiguity, (ii)
      to
      cause the provisions herein to conform to or be consistent with or in
      furtherance of the statements made with respect to the Securities, the Issuer
      or
      this Agreement in any Prospectus, or to correct or supplement any provision
      herein which may be inconsistent with any other provisions herein or in any
      other Operative Agreement, to make any other provisions with respect to matters
      or questions arising under this Agreement or (iv) to add, delete, or amend
      any
      provisions to the extent necessary or desirable to comply with any requirements
      imposed by the Code and applicable regulations. No such amendment effected
      pursuant to the preceding sentence shall, as evidenced by either (A) an Opinion
      of Counsel (which shall be an expense of the party requesting such amendment
      and
      shall not be an expense of the Trust), or (B) written confirmation from each
      Rating Agency such amendment will not cause such rating agency to reduce the
      current rating assigned to the Notes, result in an adverse effect on the status
      of the Notes as debt for federal income tax purposes, nor shall such amendment
      effected pursuant to clause (iii) of such sentence adversely affect in any
      material respect the interests of any Holder or the Insurer. Prior to entering
      into any amendment without the consent of Holders pursuant to this paragraph,
      the Indenture Trustee may require an Opinion of Counsel (at the expense of
      the
      party requesting such amendment) to the effect that such amendment is permitted
      under this paragraph. Any such amendment shall be deemed not to adversely affect
      in any material respect any Holder, if the Indenture Trustee receives written
      confirmation from each Rating Agency that such amendment will not cause such
      Rating Agency to reduce the then current rating assigned to the Notes without
      taking into account the Policy.

     

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

     

    (b) This
      Agreement may also be amended from time to time by the Depositor, the Issuer,
      the Master Servicer and the Indenture Trustee with the consent of the Holders
      of
      not less than 66-2/3% of the Note Principal Amount of the Notes, the Insurer
      and
      of the Holder of the Residual Certificates 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;
provided,
      however,
      that no
      such amendment shall be made unless the Indenture Trustee receives an Opinion
      of
      Counsel, at the expense of the party requesting the change, that no such
      amendment may (i) reduce in any manner the amount of, or delay the timing of,
      payments which are required to be distributed on any Class of Notes, without
      the
      consent of the Noteholders of such Class or (ii) reduce the aforesaid
      percentages of Note Principal Amount of Notes, the Holders of which are required
      to consent to any such amendment without the consent of the Holders of 100%
      of
      the Note Principal Amount of the Notes. For purposes of this paragraph,
      references to “Holder” or “Holders” shall be deemed to include, in the case of
      Book-Entry Notes, the related Note Owners.

     

    (c) Promptly
      after the execution of any such amendment, the Indenture Trustee shall furnish
      written notification of the substance of such amendment to each Holder, the
      Insurer, the Depositor and to each Rating Agency.

     

    (d) It
      shall
      not be necessary for the consent of Holders under this Section 9.03 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 Holders
      shall be subject to such reasonable regulations as the Indenture Trustee may
      prescribe.

     

    Section
      9.04  Acts
      of Securityholders. 
      Except
      as otherwise specifically provided herein, whenever Securityholder action,
      consent or approval is required under this Agreement, such action, consent
      or
      approval shall be deemed to have been taken or given on behalf of, and shall
      be
      binding upon, all Securityholders if the Majority Securityholders agree to
      take
      such action or give such consent or approval; provided, however, that so long
      as
      no Insurer Default has occurred and is continuing any action, consent or
      approval required under this Agreement by the Securityholders will instead
      be
      taken or given by the Insurer.

     

    Section
      9.05  Recordation
      of Agreement.
      To the
      extent permitted by applicable law, this Agreement, or a memorandum thereof
      if
      permitted under applicable law, is subject to recordation in all appropriate
      public offices for real property records in all of the counties or other
      comparable jurisdictions in which any or all of the properties subject to the
      Mortgages are situated, and in any other appropriate public recording office
      or
      elsewhere, such recordation to be effected by the Depositor on direction and
      at
      the expense of Holders of not less than 66-2/3% of the Note Principal Amount
      of
      the Notes and of the Holder of the Residual Certificates requesting such
      recordation, but only when accompanied by an Opinion of Counsel to the effect
      that such recordation materially and beneficially affects the interests of
      the
      Securityholders, or is necessary for the administration or servicing of the
      Mortgage Loans.

     

    Section
      9.06  Governing
      Law. 
      THIS
      AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
      OF
      THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
      HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO
      CONFLICT OF LAWS PRINCIPLES APPLIED IN NEW YORK.

     

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

     

    Section
      9.07  Notices. 
      All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given when received by (a) in the case of the
      Depositor, Thornburg Mortgage Securities Corporation, 150 Washington Avenue,
      Suite 302, Santa Fe, New Mexico 87501, Attention: [_________], (b) in the case
      of the Indenture Trustee, the Paying Agent or the Administrator, [_________],
      (c) in the case of the Master Servicer, [_________],, [_________], Attention:
      [_________] and (d) in the case of the Issuer, c/o [                    ],
      or as
      to each party such other address as may hereafter be furnished by such party
      to
      the other parties in writing. Any notice required or permitted to be mailed
      to a
      Holder shall be given by first class mail, postage prepaid, at the address
      of
      such Holder as shown in the applicable register. Any notice so mailed within
      the
      time prescribed in this Agreement shall be conclusively presumed to have been
      duly given, whether or not the Holder receives such notice.

     

    Section
      9.08  Severability
      of Provisions. 
      If any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Securities or the rights of the Holders thereof.

     

    Section
      9.09  Indulgences;
      No Waivers. 
      Neither
      the failure nor any delay on the part of a party to exercise any right, remedy,
      power or privilege under this Agreement shall operate as a waiver thereof,
      nor
      shall any single or partial exercise of any right, remedy, power or privilege
      preclude any other or further exercise of the same or of any other right,
      remedy, power or privilege, nor shall any waiver of any right, remedy, power
      or
      privilege with respect to any occurrence be construed as a waiver of such right,
      remedy, power or privilege with respect to any other occurrence. No waiver
      shall
      be effective unless it is in writing and is signed by the party asserted to
      have
      granted such waiver.

     

    Section
      9.10  Headings
      Not To Affect Interpretation. 
      The
      headings contained in this Agreement are for convenience of reference only,
      and
      they shall not be used in the interpretation hereof.

     

    Section
      9.11  Benefits
      of Agreement. 
      Nothing
      in this Agreement or in the Securities, express or implied, shall give to any
      Person, other than the parties to this Agreement and their successors hereunder
      and the Holders of the Securities, any benefit or any legal or equitable right,
      power, remedy or claim under this Agreement.

     

    Section
      9.12  Special
      Notices to the Rating Agencies.

     

    (a) The
      Seller shall give prompt notice to each Rating Agency of the occurrence of
      any
      of the following events of which it has notice:

     

    (i)
       any
      amendment to this Agreement pursuant to Section 9.03; and

     

    
      
        
        

      

      
        89

        
          

        

      

      
        
        

      

    

     

    (ii)
       the
      making of a final payment hereunder.

     

    (b) All
      notices to the Rating Agencies provided for by this Section shall be in writing
      and sent by first class mail, telecopy or overnight courier, as
      follows:

     

    if
      to
      [Moody’s:

    

    Moody’s
      Investors Service, Inc.

    99
      Church
      Street

    New
      York,
      New York 10004

    Fax
      no.:
      (212) 553-4392]

     

    if
      to
      [S&P:

    

    Standard
      & Poors Ratings Service, a division

    of
      the
      McGraw-Hill Companies, Inc.

    55
      Water
      Street

    New
      York,
      New York 10041

    Fax
      no.:
      (212) 438-2661]

     

    (c) The
      Master Servicer shall make available to the Rating Agencies each report prepared
      pursuant to Section 4.10.

     

    Section
      9.13  Counterparts. 
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original, and all of which together shall constitute one and
      the
      same instrument.

     

    Section
      9.14  Execution
      by the Issuer. 
      It is
      expressly understood and agreed by the parties hereto that (a) this Agreement
      is
      executed and delivered by [_________], not individually or personally but solely
      as Owner Trustee of the Issuer, in the exercise of the powers and authority
      conferred and vested in it as trustee, (b) each of the representations,
      undertakings and agreements herein made on the part of the Issuer is made and
      intended not as personal representations, undertakings and agreements by
      [_________] but is made and intended for the purpose of binding only the Issuer,
      (c) nothing herein contained shall be construed as creating any liability on
      [_________], individually or personally, to perform any covenant either
      expressed or implied contained herein, all such liability, if any, being
      expressly waived by the parties hereto and by any person claiming by, through
      or
      under the parties hereto and (d) under no circumstances shall [_________] be
      personally liable for the payment of any indebtedness or expenses of the Issuer
      or be liable for the breach or failure of any obligation, representation,
      warranty or covenant made or undertaken by the Issuer under this Agreement
      or
      any other document.

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto
      by their respective officers hereunto duly authorized as of the day and year
      first above written.

    

      
        	 	THORNBURG
                MORTGAGE SECURITIES TRUST [ ] 
	 	 	 	 	 	 
	 	
                By:

              	 	 	
                [_________],
                  not in its individual capacity but solely as Owner Trustee

              	
                 

              
	 	 	 	 	 	 
	 	
                By:

              	       
	 
	 	
                Name:

              	 	 
	 	
                Title:

              	 	 	 
	 	 	 	 	 	 
	 	
                THORNBURG
                  MORTGAGE SECURITIES 

                CORPORATION,
                  as Depositor

              
	 	 
	 	
                By:

              	          
	 
	 	
                Name:

              	 	 
	 	
                Title:
                  

              	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	
                [_________],

              
	 	
                as
                  Indenture Trustee

              
	 	 
	 	
                By:
                  

              	          
	 
	 	
                Name:
                  

              	 	 
	 	
                Title:
                  

              	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	
                [_________],
                  

              
	 	
                as
                  Master Servicer

              
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	
                By:

              	          
	 
	 	
                Name:
                  

              	 	 
	 	
                Title:
                  

              	 	 	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Solely
      for purposes of Article II, Sections 3.03, 

    3.04,
      5.05, 5.06 and 7.03, accepted and 

    agreed
      to
      by:

    

    THORNBURG
      MORTGAGE FUNDING, INC.

    

      
        	
                By:

              	     
	 
	 	
                Name:
                  

              	 
	 	
                Title:
                  

              	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-1

     

    FORM
      OF
      INITIAL CERTIFICATION

     

     

    
      	 	
                                              

              Date

            	 

    

    
    

    [_________]

    [_________]

    [_________]

    

    Thornburg
      Mortgage Securities Corporation

    150
      Washington Avenue, Suite 302

    New
      York, New York 10019

     

    
      	
            	Re:	
              Sale
                and Servicing Agreement (the “Sale and Servicing Agreement”) dated as of
                [_____] [__], 20[__] by and among Thornburg Mortgage Securities
                Corporation, as Depositor, [_________],
                as
                Indenture Trustee, [_________], as Master Servicer, and Thornburg
                Mortgage
                Securities Trust [ ]
                , as
                Issuer                                        
                 

            

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.02(a) of the Sale and Servicing Agreement, subject
      to
      review of the contents thereof, the undersigned, as Custodian, hereby certifies
      that it has received the documents listed in Section 2.01(b) of the Sale and
      Servicing Agreement for each Mortgage File pertaining to each Mortgage Loan
      listed on Schedule A, to the Sale and Servicing Agreement, subject to any
      exceptions noted on Schedule I hereto.

     

    Capitalized
      words and phrases used herein and not otherwise defined herein shall have the
      respective meanings assigned to them in the Sale and Servicing Agreement. This
      certificate is subject in all respects to the terms of Section 2.02 of the
      Sale
      and Servicing Agreement and the Sale and Servicing Agreement sections
      cross-referenced therein.

     

    
      	 	[Custodian]
	 	 	 
	 	By: 	     
	 	 	Name: 
	 	 	Title:

    

     

    
      
        
        

      

      
        A-1-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-2

     

    FORM
      OF
      INTERIM CERTIFICATION

    
       

      
        	 	
                                                

                Date

              	 

      

    

     

    [_________]

    [_________]

    [_________]

    

    Thornburg
      Mortgage Securities Corporation

    150
      Washington Avenue, Suite 302

    Santa
      Fe, New Mexico 87501

     

    
      	
            	Re:	
              Sale
                and Servicing Agreement (the “Sale and Servicing Agreement”) dated as of
                [_____] [__], 20[__] by and among Thornburg Mortgage Securities
                Corporation, as Depositor, [_________],
                as
                Indenture Trustee, [_________], as Master Servicer, and Thornburg
                Mortgage
                Securities Trust [ ]
                , as Issuer 

            

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.02(b) of the Sale and Servicing Agreement, the
      undersigned, as Custodian, hereby certifies that as to each Mortgage Loan listed
      in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or
      listed on Schedule I hereto) it (or its custodian) has received the applicable
      documents listed in Section 2.01(b) of the Sale and Servicing
      Agreement.

     

    The
      undersigned hereby certifies that as to each Mortgage Loan identified on the
      Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I
      hereto, it has reviewed the documents identified above and has determined that
      each such document appears regular on its face and appears to relate to the
      Mortgage Loan identified in such document.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Sale and Servicing Agreement. This certificate is qualified in
      all
      respects by the terms of said Sale and Servicing Agreement including, but not
      limited to, Section 2.02(b).

    
       

      
        	 	[Custodian]
	 	 	 
	 	By: 	     
	 	 	Name: 
	 	 	Title:

      

    

     

    
      
        
        

      

      
        A-2-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-3

     

    FORM
      OF
      FINAL CERTIFICATION

    
      
         

        
          	 	
                                                  

                  Date

                	 

        

         

      

    

    [_________]

    [_________]

    [_________]

    

    Thornburg
      Mortgage Securities Corporation

    150
      Washington Avenue, Suite 302

    Santa
      Fe, New Mexico 87501

     

    Re: Sale
      and
      Servicing Agreement (the “Sale and Servicing Agreement”) dated as of [_____]
      [__], 20[__] by and among Thornburg Mortgage Securities Corporation, as
      Depositor, [_________],
      as
      Indenture Trustee, [_________], as Master Servicer, and Thornburg Mortgage
      Securities Trust [ ]
      , as
      Issuer 

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.02(d) of the Sale and Servicing Agreement, the
      undersigned, as Custodian on behalf of the Indenture 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 Schedule I hereto) it (or its
      custodian) has received the applicable documents listed in Section 2.01(b)
      of
      the Sale and Servicing Agreement.

     

    The
      undersigned hereby certifies that as to each Mortgage Loan identified on the
      Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I
      hereto, it has reviewed the documents listed above and has determined that
      each
      such document appears to be complete and, based on an examination of such
      documents, the information set forth in the Mortgage Loan Schedule is correct.
      

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Sale and Servicing Agreement. This certificate is qualified in
      all
      respects by the terms of said Sale and Servicing Agreement.

    
       

      
        	 	[Custodian]
	 	 	 
	 	By: 	     
	 	 	Name: 
	 	 	Title:

      

       

      
        
          
          

        

        
          A-3-1

          
            

          

        

        
          
          

        

      

       

    

    EXHIBIT
      A-4

     

    FORM
      OF ENDORSEMENT

     

    Pay
      to the order of [_________],
      as indenture trustee (the “Indenture Trustee”) under the Sale and Servicing
      Agreement dated as of [_____] [__], 20[__] by and among Thornburg
      Mortgage Securities Corporation,
      as Depositor, the Indenture Trustee, [_________] as Master Servicer, and
Thornburg
      Mortgage Securities Trust [ ]
      , as Issuer relating to Thornburg
      Mortgage Securities Trust [ ]
      Home Equity Loan Asset-Backed Notes, Series 20[__]-[__], without
      recourse.

     

     

    
       

      
        	 	         

	 	[current signatory on
                note]
	 	 	 
	 	By: 	     
	 	 	Name: 
	 	 	Title:

      

       

      
        
          
          

        

        
          A-4-1

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      B

     

    REQUEST
      FOR RELEASE OF DOCUMENTS AND RECEIPT

    
      
         

        
          	 	
                                                  

                  Date

                	 

        

         

         

      

    

    [Addressed
      to Indenture Trustee

    or,
      if
      applicable, custodian]

     

     

    In
      connection with the administration of the mortgages held by you as Indenture
      Trustee under a certain Sale and Servicing Agreement dated as of [_____] [__],
      20[__] by and among Thornburg Mortgage Securities Corporation, as Depositor,
      you, as Indenture Trustee, [_________], as Master Servicer, and Thornburg
      Mortgage Securities Trust [ ] , as Issuer (the “Sale and Servicing Agreement”),
      the undersigned Servicer hereby requests a release of the Mortgage File held
      by
      you as Indenture Trustee with respect to the following described Mortgage Loan
      for the reason indicated below.

     

    Mortgagor’s
      Name:

     

    Address:

     

    Loan
      No.:

     

    Reason
      for requesting file:

     

    1. Mortgage
      Loan paid in full. (The Servicer hereby certifies that all amounts received
      in
      connection with the loan have been or will be credited to the Distribution
      Account pursuant to the Sale and Servicing Agreement.)

     

    2. The
      Mortgage Loan is being foreclosed.

     

    3. Mortgage
      Loan substituted. (The Servicer hereby certifies that a Qualifying Substitute
      Mortgage Loan has been assigned and delivered to you along with the related
      Mortgage File pursuant to the Sale and Servicing Agreement.)

     

    4. Mortgage
      Loan repurchased. (The Servicer hereby certifies that the Loan Purchase Price
      has been credited to the Distribution Account pursuant to the Sale and Servicing
      Agreement.)

     

    5. Other.
      (Describe)

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    The
      undersigned acknowledges that the above Mortgage File will be held by the
      undersigned in accordance with the provisions of the Sale and Servicing
      Agreement and will be returned to you within ten (10) days of our receipt of
      the
      Mortgage File, except if the Mortgage Loan has been paid in full, or repurchased
      or substituted for a Qualifying Substitute Mortgage Loan (in which case the
      Mortgage File will be retained by us permanently) and except if the Mortgage
      Loan is being foreclosed (in which case the Mortgage File will be returned
      when
      no longer required by us for such purpose).

     

    Capitalized
      terms used herein shall have the meanings ascribed to them in the Sale and
      Servicing Agreement.

    
       

      
        	 	           
                
	 	 	[Name of Servicer]
	 	 	 
	 	By: 	     
	 	 	Name: 
	 	 	Title: Servicing
                Officer

      

       

      
        
          
          

        

        
          B-2

          
            

          

        

        
          
          

        

      

       

    

    EXHIBIT
      C

     

    LIST
      OF SERVICING AGREEMENTS

    

    1. [_________]
      and

     

    2. [_________].

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D

     

    (RESERVED)

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

     

    (RESERVED)

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      F

     

    CUSTODIAL
      AGREEMENT

    ([_________])

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      G

     

    [RESERVED]

     

    
      
        
        

      

      
        G-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      H

    

    [Reserved]

    

     

    FORM
      OF
      MASTER SERVICER CERTIFICATION

    

     

    Re:
      Thornburg Mortgage Securities Trust [ ]

     

    Home
      Equity Loan Asset Backed Certificates, Series 20[__]-[__]

     

    I,
      _______________, the senior officer of [_________] certify that:

     

    
      	 	
              (i)

            	
              I
                have reviewed this annual report on Form 10-K, and all reports on
                Form 8-K
                containing distribution and servicing reports filed in respect of
                periods
                included in the year covered by this annual report, of Thornburg
                Mortgage
                Securities Corporation (the
“Registrant”);

            

    

     

    
      	 	
              (ii)

            	
              Based
                on my knowledge, the information in these reports, taken as a whole,
                does
                not contain any untrue statement of a material fact or omit to state
                a
                material fact necessary to make the statements made, in light of
                the
                circumstances under which such statements were made, not misleading
                as of
                the last day of the period covered by this annual
                report;

            

    

     

    
      	 	
              (iii)

            	
              Based
                on my knowledge, the distribution of servicing information required
                to be
                provided to the Administrator by the Master Servicer under the Sale
                and
                Servicing Agreement is included in these
                reports;

            

    

     

    
      	 	
              (iv)

            	
              Based
                on my knowledge and upon the annual compliance statement included
                in the
                report and required to be delivered to the Administrator in accordance
                with the terms of the Sale and Servicing Agreement, and except as
                disclosed in the reports, the Master Servicer has fulfilled its
                obligations under the servicing agreement;
                and

            

    

     

    
      	 	
              (v)

            	
              The
                reports disclose all significant deficiencies relating to the Master
                Servicer’s compliance with the minimum servicing standards based upon the
                report provided by an independent public accountant, after conducting
                a
                review in compliance with the Uniform Single Attestation Program
                for
                Mortgage Bankers or similar procedure, as set forth in the Pooling
                and
                Servicing Agreement that is included in these
                reports.

            

    

     

    Capitalized
      terms used but not defined herein have the meanings ascribed to them in the
      Sale
      and Servicing Agreement, dated [_____] [__], 20[__] (the “Sale and Servicing
      Agreement”), among the Registrant as depositor, Thornburg Mortgage Securities
      Trust [ ], as Issuer, the Master Servicer and [_________] as Indenture
      Trustee.

    

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      I

     

    FORM
      CERTIFICATION TO BE PROVIDED TO DEPOSITOR

    AND/OR
      MASTER SERVICER BY THE INDENTURE TRUSTEE

     

    Thornburg
      Mortgage Securities Corporation

    150
      Washington Avenue, Suite 302

    Santa
      Fe,
      New Mexico 87501

     

    [_________]

    [_________]

    [_________]

    

    
      	
              Re:

            	
              Thornburg
                Mortgage Securities Trust [    ] 

            

    

     

    Home
      Equity Loan Asset-Backed Notes, Series 20[__]-[__]

     

    Reference
      is made to the Sale
      and
      Servicing Agreement dated as of [_____] [__], 20[__] (the “Sale and Servicing
      Agreement”), by and among Thornburg Mortgage Securities Trust [ ] , as issuer,
      [_________],
      as indenture trustee
      (the
“Indenture Trustee”), [_________], as master servicer (the “Master Servicer”),
      and Thornburg Mortgage Securities Corporation, as depositor (the “Depositor”).
      The Indenture Trustee
      hereby certifies to the Depositor and the Master Servicer, and its officers,
      directors and affiliates, and with the knowledge and intent that they will
      rely
      upon this certification, that:

     

    
      	 	
              (i)

            	
              The
                Indenture Trustee has reviewed the annual report on Form 10-K for
                the
                fiscal year [ ], and all reports on Form 8-K containing distribution
                reports filed in respect of periods included in the year covered
                by that
                annual report, relating to the above-referenced
                trust;

            

    

     

    
      	 	
              (ii)

            	
              Based
                solely upon the information provided to us by the Master Servicer,
                the
                information set forth in the reports referenced in (i) above does
                not
                contain any untrue statement of material fact;
                and

            

    

     

    
      	 	
              (iii)

            	
              Based
                on my knowledge, the distribution information required to be provided
                by
                the Indenture Trustee under the Sale and Servicing Agreement is included
                in these reports.

            

    

     

    

    Date:

    

      
        	 	
                [                                  ],
                  as Indenture Trustee

              
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	
                By:

              	 	 	     
	 
	 	
                Name:

              	  
	 
	 	
                Title:

              	 	     
	 

      

    

    

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

     

    MORTGAGE
      LOAN SCHEDULE

    

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      B

     

    [_________]
      MORTGAGE LOAN SCHEDULE

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      C

     

    [_________]
      MORTGAGE LOAN SCHEDULE

     

    
      
        
        

      

      
        C-1

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