Document:

Unassociated Document

    BEAR
      STEARNS ASSET BACKED SECURITIES I LLC,

     

    Depositor,

     

    EMC
      MORTGAGE CORPORATION,

     

    Seller
      and Company,

     

    LASALLE
      BANK NATIONAL ASSOCIATION,

     

    Master
      Servicer and Securities Administrator,

     

    and

     

    CITIBANK,
      N.A.

     

    Trustee

     

    
      	 	 	 

    

    

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of August 1, 2006

     

    
      	 	 	 

    

    

    SACO
      I
      TRUST 2006-9

     

    MORTGAGE-BACKED
      CERTIFICATES, SERIES 2006-9

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF CONTENTS

     

    ARTICLE
      I
      DEFINITIONS

     

    
      	
              Section
                1.01

            	
              Defined
                Terms.

            	 

    

    
      	
              Section
                1.02

            	
              Allocation
                of Certain Interest Shortfalls.

            	 

    

     

    ARTICLE
      II
      CONVEYANCE OF TRUST FUND REPRESENTATIONS AND WARRANTIES

     

    
      	
              Section
                2.01

            	
              Conveyance
                of Trust Fund.

            	 

    

    
      	
              Section
                2.02

            	
              Acceptance
                of the Mortgage Loans.

            	 

    

    
      	
              Section
                2.03

            	
              Representations,
                Warranties and Covenants of the Company, the Master Servicer, and
                EMC as
                Seller.

            	 

    

    
      	
              Section
                2.04

            	
              Representations
                and Warranties of the Depositor.

            	 

    

    
      	
              Section
                2.05

            	
              Delivery
                of Opinion of Counsel in Connection with Substitutions and
                Repurchases.

            	 

    

    
      	
              Section
                2.06

            	
              Countersignature
                and Delivery of Certificates.

            	 

    

    
      	
              Section
                2.07

            	
              Purposes
                and Powers of the Trust.

            	 

    

     

    ARTICLE
      III
      ADMINISTRATION AND SERVICING OF EMC MORTGAGE LOANS BY THE COMPANY

     

    
      	
              Section
                3.01

            	
              The
                Company.

            	 

    

    
      	
              Section
                3.02

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            	 

    

    
      	
              Section
                3.03

            	
              Subservicers.

            	 

    

    
      	
              Section
                3.04

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

            	 

    

    
      	
              Section
                3.05

            	
              Optional
                Purchase of Certain Mortgage Loans.

            	 

    

    
      	
              Section
                3.06

            	
              Release
                of Mortgage Files.

            	 

    

    
      	
              Section
                3.07

            	
              Maintenance
                of Hazard Insurance.

            	 

    

    
      	
              Section
                3.08

            	
              Presentment
                of Claims and Collection of Proceeds.

            	 

    

    
      	
              Section
                3.09

            	
              Books
                and Records.

            	 

    

    
      	
              Section
                3.10

            	
              Custodians
                to Retain Possession of Certain Insurance Policies and
                Documents.

            	 

    

    
      	
              Section
                3.11

            	
              Fidelity
                Bond, Errors and Omissions Insurance.

            	 

    

    
      	
              Section
                3.12

            	
              Realization
                Upon Defaulted Mortgage Loans; Determination of Excess Liquidation
                Proceeds and Realized Losses; Repurchases of Certain Mortgage
                Loans.

            	 

    

    
      	
              Section
                3.13

            	
              Servicing
                Compensation.

            	 

    

    
      	
              Section
                3.14

            	
              REO
                Property.

            	 

    

    
      	
              Section
                3.15

            	
              Liquidation
                Reports.

            	 

    

    
      	
              Section
                3.16

            	
              Annual
                Statement as to Compliance.

            	 

    

    
      	
              Section
                3.17

            	
              Assessments
                of Compliance and Attestation Reports.

            	 

    

    
      	
              Section
                3.18

            	
              Reports
                Filed with Securities and Exchange Commission.

            	 

    

    
      	
              Section
                3.19

            	
              Intention
                of the Parties and Interpretation.

            	 

    

     

    ARTICLE
      IV
      MASTER
      SERVICING OF MORTGAGE LOANS BY MASTER SERVICER

     

    
      	
              Section
                4.01

            	
              Master
                Servicer.

            	 

    

    
      	
              Section
                4.02

            	
              Monitoring
                of Company and Servicer.

            	 

    

    
      	
              Section
                4.03

            	
              Fidelity
                Bond.

            	 

    

    
      	
              Section
                4.04

            	
              Power
                to Act; Procedures.

            	 

    

    
      	
              Section
                4.05

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            	 

    

    
      	
              Section
                4.06

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

            	 

    

    
      	
              Section
                4.07

            	
              Presentment
                of Claims and Collection of Proceeds.

            	 

    

    
      	
              Section
                4.08

            	
              Realization
                Upon Defaulted Mortgage Loans.

            	 

    

    
      	
              Section
                4.09

            	
              Compensation
                of the Master Servicer.

            	 

    

    
      	
              Section
                4.10

            	
              REO
                Property.

            	 

    

    
      	
              Section
                4.11

            	
              [Reserved].

            	 

    

    
      	
              Section
                4.12

            	
              [Reserved].

            	 

    

    
      	
              Section
                4.13

            	
              UCC.

            	 

    

    
      	
              Section
                4.14

            	
              Reserve
                Fund; Payments to and from Swap Administrator; Supplemental Interest
                Trust.

            	 

    

    
      	
              Section
                4.15

            	
              Reserved.

            	 

    

    
      	
              Section
                4.16

            	
              Tax
                Treatment of Class IO Distribution Amounts in the Event of
                Resecuritization of Class A, Class M or Class B
                Certificates.

            	 

    

     

    ARTICLE
      V
      ACCOUNTS

     

    
      	
              Section
                5.01

            	
              Collection
                of Mortgage Loan Payments; Protected Account.

            	 

    

    
      	
              Section
                5.02

            	
              Permitted
                Withdrawals From the Protected Account.

            	 

    

    
      	
              Section
                5.03

            	
              Reports
                to the Master Servicer.

            	 

    

    
      	
              Section
                5.04

            	
              Collection
                of Taxes; Assessments and Similar Items; Escrow Accounts.

            	 

    

    
      	
              Section
                5.05

            	
              Protected
                Accounts.

            	 

    

    
      	
              Section
                5.06

            	
              Master
                Servicer Collection Account.

            	 

    

    
      	
              Section
                5.07

            	
              Permitted
                Withdrawals and Transfers from the Master Servicer Collection
                Account.

            	 

    

    
      	
              Section
                5.08

            	
              Distribution
                Account.

            	 

    

    
      	
              Section
                5.09

            	
              Permitted
                Withdrawals and Transfers from the Distribution Account.

            	 

    

     

    ARTICLE
      VI
      DISTRIBUTIONS AND ADVANCES

     

    
      	
              Section
                6.01

            	
              Advances.

            	 

    

    
      	
              Section
                6.02

            	
              Compensating
                Interest Payments.

            	 

    

    
      	
              Section
                6.03

            	
              REMIC
                Distributions.

            	 

    

    
      	
              Section
                6.04

            	
              Distributions.

            	 

    

    
      	
              Section
                6.05

            	
              Allocation
                of Realized Losses.

            	 

    

    
      	
              Section
                6.06

            	
              Monthly
                Statements to Certificateholders.

            	 

    

    
      	
              Section
                6.07

            	
              REMIC
                Designations and REMIC Distributions.

            	 

    

     

    ARTICLE
      VII
      THE
      CERTIFICATES

     

    
      	
              Section
                7.01

            	
              The
                Certificates.

            	 

    

    
      	
              Section
                7.02

            	
              Certificate
                Register; Registration of Transfer and Exchange of
                Certificates.

            	 

    

    
      	
              Section
                7.03

            	
              Mutilated,
                Destroyed, Lost or Stolen Certificates.

            	 

    

    
      	
              Section
                7.04

            	
              Persons
                Deemed Owners.

            	 

    

    
      	
              Section
                7.05

            	
              Access
                to List of Certificateholders’ Names and Addresses.

            	 

    

    
      	
              Section
                7.06

            	
              Book-Entry
                Certificates.

            	 

    

    
      	
              Section
                7.07

            	
              Notices
                to Depository.

            	 

    

    
      	
              Section
                7.08

            	
              Definitive
                Certificates.

            	 

    

    
      	
              Section
                7.09

            	
              Maintenance
                of Office or Agency.

            	 

    

     

    ARTICLE
      VIII
      THE
      DEPOSITOR, THE COMPANY AND THE MASTER SERVICER

     

    
      	
              Section
                8.01

            	
              Liabilities
                of the Depositor, the Company and the Master Servicer.

            	 

    

    
      	
              Section
                8.02

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

            	 

    

    
      	
              Section
                8.03

            	
              Indemnification
                of the Trustee, the Master Servicer and the Securities
                Administrator.

            	 

    

    
      	
              Section
                8.04

            	
              Limitations
                on Liability of the Depositor, the Company, the Master Servicer and
                Others.

            	 

    

    
      	
              Section
                8.05

            	
              Master
                Servicer and Company Not to Resign.

            	 

    

    
      	
              Section
                8.06

            	
              Successor
                Master Servicer.

            	 

    

    
      	
              Section
                8.07

            	
              Sale
                and Assignment of Master Servicing.

            	 

    

     

    ARTICLE
      IX
      DEFAULT;
      TERMINATION OF MASTER SERVICER; TERMINATION OF COMPANY

     

    
      	
              Section
                9.01

            	
              Events
                of Default.

            	 

    

    
      	
              Section
                9.02

            	
              Trustee
                to Act; Appointment of Successor.

            	 

    

    
      	
              Section
                9.03

            	
              Notification
                to Certificateholders.

            	 

    

    
      	
              Section
                9.04

            	
              Waiver
                of Defaults.

            	 

    

    
      	
              Section
                9.05

            	
              Company
                Default.

            	 

    

    
      	
              Section
                9.06

            	
              Waiver
                of Company Defaults.

            	 

    

     

    ARTICLE
      X
      CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     

    
      	
              Section
                10.01

            	
              Duties
                of Trustee and the Securities Administrator.

            	 

    

    
      	
              Section
                10.02

            	
              Certain
                Matters Affecting the Trustee and the Securities
                Administrator.

            	 

    

    
      	
              Section
                10.03

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

            	 

    

    
      	
              Section
                10.04

            	
              Trustee
                and Securities Administrator May Own Certificates.

            	 

    

    
      	
              Section
                10.05

            	
              Trustee’s
                and Securities Administrator’s Fees and Expenses.

            	 

    

    
      	
              Section
                10.06

            	
              Eligibility
                Requirements for Trustee and Securities Administrator.

            	 

    

    
      	
              Section
                10.07

            	
              Insurance.

            	 

    

    
      	
              Section
                10.08

            	
              Resignation
                and Removal of Trustee and Securities Administrator.

            	 

    

    
      	
              Section
                10.09

            	
              Successor
                Trustee or Securities Administrator.

            	 

    

    
      	
              Section
                10.10

            	
              Merger
                or Consolidation of Trustee or Securities Administrator.

            	 

    

    
      	
              Section
                10.11

            	
              Appointment
                of Co-Trustee or Separate Trustee.

            	 

    

    
      	
              Section
                10.12

            	
              Tax
                Matters.

            	 

    

    
      	
              Section
                10.13

            	
              REMIC-Related
                Covenants.

            	 

    

     

    ARTICLE
      XI
      TERMINATION

     

    
      	
              Section
                11.01

            	
              Termination
                upon Liquidation or Repurchase of all Mortgage Loans.

            	 

    

    
      	
              Section
                11.02

            	
              Final
                Distribution on the Certificates.

            	 

    

    
      	
              Section
                11.03

            	
              Additional
                Termination Requirements.

            	 

    

     

    ARTICLE
      XII
      MISCELLANEOUS PROVISIONS

     

    
      	
              Section
                12.01

            	
              Amendment.

            	 

    

    
      	
              Section
                12.02

            	
              Recordation
                of Agreement; Counterparts.

            	 

    

    
      	
              Section
                12.03

            	
              Governing
                Law.

            	 

    

    
      	
              Section
                12.04

            	
              Intention
                of Parties.

            	 

    

    
      	
              Section
                12.05

            	
              Notices.

            	 

    

    
      	
              Section
                12.06

            	
              Severability
                of Provisions.

            	 

    

    
      	
              Section
                12.07

            	
              Assignment.

            	 

    

    
      	
              Section
                12.08

            	
              Limitation
                on Rights of Certificateholders.

            	 

    

    
      	
              Section
                12.09

            	
              Inspection
                and Audit Rights.

            	 

    

    
      	
              Section
                12.10

            	
              Certificates
                Nonassessable and Fully Paid.

            	 

    

    
      	
              Section
                12.11

            	
              Third
                Party Rights.

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibits

    
      

        
          	
                  Exhibit
                    A-1

                	
                  Form
                    of Class A Certificates

                
	
                  Exhibit
                    A-2

                	
                  Form
                    of Class M Certificates

                
	
                  Exhibit
                    A-3

                	
                  Form
                    of Class B Certificates

                
	
                  Exhibit
                    A-4

                	
                  Form
                    of Class C Certificates

                
	
                  Exhibit
                    A-5

                	
                  Form
                    of Class R Certificates

                
	
                  Exhibit
                    B

                	
                  Mortgage
                    Loan Schedule

                
	
                  Exhibit
                    C

                	
                  Form
                    of Transfer Affidavit

                
	
                  Exhibit
                    D

                	
                  Form
                    of Transferor Certificate

                
	
                  Exhibit
                    E

                	
                  Form
                    of Investment Letter (Non-Rule 144A)

                
	
                  Exhibit
                    F

                	
                  Form
                    of Rule 144A and Related Matters Certificate

                
	
                  Exhibit
                    G

                	
                  Form
                    of Request for Release

                
	
                  Exhibit
                    H

                	
                  DTC
                    Letter of Representations

                
	
                  Exhibit
                    I

                	
                  Schedule
                    of Mortgage Loans with Lost Notes

                
	
                  Exhibit
                    J

                	
                  Form
                    of LaSalle Custodial Agreement

                
	
                  Exhibit
                    K 

                	
                  Form
                    of Wells Fargo Custodial Agreement

                
	
                  Exhibit
                    L

                	
                  Form
                    of Mortgage Loan Purchase Agreement

                
	
                  Exhibit
                    M

                	
                  Form
                    of Back-Up Certification

                
	
                  Exhibit
                    N

                	
                  Swap
                    Agreement

                
	
                  Exhibit
                    O

                	
                  Servicing
                    Criteria to Be Addressed in Assessment of Compliance

                
	
                  Exhibit
                    P

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

                
	
                  Exhibit
                    Q

                	
                  Additional
                    Disclosure Notification

                
	
                  Exhibit
                    R-1

                	
                  Form
                    of First Horizon Servicing Agreement

                
	
                  Exhibit
                    R-2

                	
                  Form
                    of First Horizon Assignment, Assumption and Recognition
                    Agreement

                
	
                  Exhibit
                    S-1

                	
                  Form
                    of GMACM Servicing Agreement

                
	
                  Exhibit
                    S-2

                	
                  Form
                    of GMACM Assignment, Assumption and Recognition
                    Agreement

                
	
                  Exhibit
                    T-1

                	
                  Form
                    of HomeBanc Servicing Agreement

                
	
                  Exhibit
                    T-2

                	
                  Form
                    of HomeBanc Assignment, Assumption and Recognition
                    Agreement

                

        

         

      

    

    POOLING
      AND SERVICING AGREEMENT, dated as of August 1, 2006, among BEAR STEARNS ASSET
      BACKED SECURITIES I LLC, a Delaware limited liability company, as depositor
      (the
“Depositor”), EMC MORTGAGE CORPORATION, a Delaware corporation, as seller (in
      such capacity, the “Seller”) and as company (in such capacity, the “Company”),
      LASALLE BANK NATIONAL ASSOCIATION, a national banking association, as master
      servicer (in such capacity, the “Master Servicer”) and as securities
      administrator (in such capacity, the “Securities Administrator”), and CITIBANK,
      N.A., a national banking association, as trustee (the “Trustee”).

     

    PRELIMINARY
      STATEMENT

     

    The
      Depositor is the owner of the Trust Fund that is hereby conveyed to the Trustee
      in return for the Certificates. On or prior to the Closing Date, the Depositor
      acquired the Mortgage Loans from the Seller. On the Closing Date, the Depositor
      will sell the Mortgage Loans and certain other property to the Trust Fund and
      receive in consideration therefor Certificates evidencing the entire beneficial
      ownership interest in the Trust Fund.

     

    REMIC
      I

     

    As
      provided herein, the Securities Administrator, on behalf of the Trustee will
      elect to treat the segregated pool of assets consisting of the Mortgage Loans
      and certain other related assets subject to this Agreement (other than the
      Reserve Fund, any Prepayment Charge Waiver Amounts and, for the avoidance of
      doubt, the Supplemental Interest Trust, the Swap Agreement, the Swap Account
      and
      any rights or obligations in respect of the Swap Administration Agreement)
      as a
      REMIC (as defined herein) for federal income tax purposes, and such segregated
      pool of assets will be designated as “REMIC I”. The Class R-1 Certificates will
      represent the sole class of Residual Interests (as defined herein) in REMIC
      I
      for purposes of the REMIC Provisions (as defined herein). The following table
      irrevocably sets forth the designation, the Uncertificated REMIC I Pass-Through
      Rate, the initial Uncertificated Principal Balance and, for purposes of
      satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii), the “latest possible
      maturity date” for each of the REMIC I Regular Interests (as defined herein).
      None of the REMIC I Regular Interests will be certificated.

     

    
      	
              Designation

            	 	
              Uncertificated
                REMIC I 

              Pass-Through
                Rate

            	 	
              Initial
                Uncertificated Principal Balance

            	 	
              Latest
                Possible Maturity Date (1)

            	 
	
              I-1-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              8,218,004.31

            	 	 	
              August
                25, 2036

            	 
	
              I-1-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              8,218,004.31

            	 	 	
              August
                25, 2036

            	 
	
              I-2-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,926,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-2-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,926,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-3-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,645,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-3-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,645,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-4-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,374,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-4-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,374,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-5-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,112,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-5-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              7,112,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-6-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,859,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-6-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,859,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-7-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,616,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-7-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,616,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-8-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,381,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-8-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,381,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-9-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,155,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-9-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              6,155,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-10-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,936,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-10-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,936,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-11-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,726,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-11-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,726,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-12-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,522,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-12-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,522,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-13-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,326,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-13-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,326,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-14-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,137,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-14-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              5,137,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-15-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,955,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-15-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,955,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-16-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,779,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-16-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,779,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-17-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,609,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-17-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,609,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-18-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,445,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-18-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,445,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-19-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,287,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-19-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,287,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-20-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,135,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-20-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,135,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-21-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,988,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-21-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,988,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-22-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,847,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-22-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,847,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-23-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,710,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-23-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,710,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-24-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,578,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-24-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,578,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-25-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,451,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-25-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,451,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-26-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,328,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-26-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,328,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-27-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,210,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-27-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,210,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-28-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,096,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-28-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,096,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-29-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,986,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-29-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,986,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-30-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,880,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-30-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,880,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-31-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,777,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-31-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,777,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-32-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,678,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-32-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,678,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-33-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,583,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-33-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,583,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-34-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,491,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-34-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,491,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-35-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,403,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-35-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,403,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-36-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,317,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-36-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,317,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-37-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,235,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-37-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,235,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-38-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,155,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-38-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,155,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-39-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,079,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-39-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,079,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-40-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,005,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-40-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              2,005,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-41-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,933,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-41-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,933,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-42-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,865,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-42-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,865,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-43-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,798,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-43-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,798,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-44-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,734,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-44-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              1,734,500.00

            	 	 	
              August
                25, 2036

            	 
	
              I-45-A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              46,842,000.00

            	 	 	
              August
                25, 2036

            	 
	
              I-45-B

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              46,842,000.00

            	 	 	
              August
                25, 2036

            	 

    

    _____________________________________

    (1) For
      purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the
      Distribution Date in the month following the maturity date for the Mortgage
      Loan
      with the latest maturity date has been designated as the “latest possible
      maturity date” for each REMIC I Regular Interest.

     

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

     

    REMIC
      II

     

    As
      provided herein, the
      Securities Administrator on behalf of the Trustee will
      elect to treat the segregated pool of assets consisting of the REMIC I Regular
      Interests as a REMIC for federal income tax purposes, and such segregated pool
      of assets will be designated as “REMIC II”. The Class R-2 Certificates will
      represent the sole class of Residual Interests in REMIC II for purposes of
      the
      REMIC Provisions. The
      following table irrevocably sets forth the designation, the Uncertificated
      REMIC
      II Pass-Through Rate, the initial Uncertificated Principal Balance and, for
      purposes of satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii), the
      “latest possible maturity date” for each of the REMIC II Regular Interests (as
      defined herein). None of the REMIC II Regular Interests will be
      certificated.

     

    
      	
              Designation

            	 	
              Uncertificated
                REMIC II

              Pass-Through
                Rate

            	 	
              Initial
                Uncertificated Principal Balance

            	 	
              Latest
                Possible Maturity Date (1)

            	 
	
              AA

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              453,000,108.46

            	 	 	
              August
                25, 2036

            	 
	
              A

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              3,510,750.00

            	 	 	
              August
                25, 2036

            	 
	
              M-1

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              201,080.00

            	 	 	
              August
                25, 2036

            	 
	
              M-2

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              201,080.00

            	 	 	
              August
                25, 2036

            	 
	
              M-3

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              71,650.00

            	 	 	
              August
                25, 2036

            	 
	
              M-4

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              64,710.00

            	 	 	
              August
                25, 2036

            	 
	
              M-5

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              62,400.00

            	 	 	
              August
                25, 2036

            	 
	
              M-6

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              60,090.00

            	 	 	
              August
                25, 2036

            	 
	
              B-1

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              53,160.00

            	 	 	
              August
                25, 2036

            	 
	
              B-2

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              46,220.00

            	 	 	
              August
                25, 2036

            	 
	
              B-3

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              57,780.00

            	 	 	
              August
                25, 2036

            	 
	
              B-4

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              62,400.00

            	 	 	
              August
                25, 2036

            	 
	
              ZZ

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              4,853,580.17

            	 	 	
              August
                25, 2036

            	 
	
              IO

            	 	 	
              (2)

            	
               

            	 	
              (3)

            	
               

            	 	
              August
                25, 2036

            	 

    

    ___________________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date in the month following the maturity date for the
                Mortgage Loan with the latest maturity date has been designated as
                the
                “latest possible maturity date” for each REMIC II Regular
                Interest

            

    

    .

    
      	
              (2)

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

            

    

    

    
      	
              (3)

            	
              REMIC
                II Regular Interest IO will not have an Uncertificated Principal
                Balance
                but will accrue interest on its uncertificated notional amount calculated
                in accordance with the definition of “Uncertificated Notional Amount”
                herein.

            

    

    

     

    

     

    REMIC
      III

     

    As
      provided herein, the Securities Administrator on behalf of the Trustee will
      elect to treat the segregated pool of assets consisting of the REMIC II Regular
      Interests as a REMIC for federal income tax purposes, and such segregated pool
      of assets will be designated as “REMIC III”. The Class R-3 Certificates will
      represent the sole class of Residual Interests in REMIC III for purposes of
      the
      REMIC Provisions.

     

    The
      following table irrevocably sets forth the designation, Pass-Through Rate,
      Initial Certificate Principal Balance (or initial Uncertificated Principal
      Balance, in the case of the Class C Interest and the Class IO Interest) and,
      for
      purposes of satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii), the
      “latest possible maturity date” for each class of Certificates and interests
      that represents ownership of one or more of the Regular Interests in REMIC
      III
      created hereunder.

     

    Each
      Certificate, other than the Class C Certificates and Class R Certificates,
      represents ownership of a Regular Interest in REMIC III and also represents
      (i)
      the right to receive certain amounts specified herein in respect of Basis Risk
      Shortfall Carry Forward Amounts (as defined herein) and (ii) the obligation
      to
      pay Class IO Distribution Amounts (as defined herein). The entitlement to
      principal of the Regular Interest which corresponds to each Certificate shall
      be
      equal in amount and timing to the entitlement to principal of such Certificate.
      

     

    
      	
              Designation

            	 	
              Pass-Through
                Rate

            	 	
              Initial
                Certificate

              or
                Uncertificated

              Principal
                Balance

            	 	
               

              Latest
                Possible

              Maturity
                Date (1)

            	 
	
              A(2)

            	 	 	
              Variable(3)

            	
               

            	 	 	 	
              $

            	
              351,075,000.00

            	 	 	
              August
                25, 2036

            	 
	
              M-1(2)

            	 	 	
              Variable(3)

            	
               

            	 	 	 	
              $

            	
              20,108,000.00

            	 	 	
              August
                25, 2036

            	 
	
              M-2(2)

            	 	 	
              Variable(3)

            	
               

            	 	 	 	
              $

            	
              20,108,000.00

            	 	 	
              August
                25, 2036

            	 
	
              M-3(2)

            	 	 	
              Variable(3)

            	
               

            	 	 	 	
              $

            	
              7,165,000.00

            	 	 	
              August
                25, 2036

            	 
	
              M-4(2)

            	 	 	
              Variable(3)

            	
               

            	 	 	 	
              $

            	
              6,471,000.00

            	 	 	
              August
                25, 2036

            	 
	
              M-5(2)

            	 	 	
              Variable(3)

            	
               

            	 	 	 	
              $

            	
              6,240,000.00

            	 	 	
              August
                25, 2036

            	 
	
              M-6(2)

            	 	 	
              Variable(3)

            	
               

            	 	 	 	
              $

            	
              6,009,000.00

            	 	 	
              August
                25, 2036

            	 
	
              B-1(2)

            	 	 	
              Variable(3)

            	
               

            	 	 	 	
              $

            	
              5,316,000.00

            	 	 	
              August
                25, 2036

            	 
	
              B-2(2)

            	 	 	
              Variable(3)

            	
               

            	 	 	 	
              $

            	
              4,622,000.00

            	 	 	
              August
                25, 2036

            	 
	
              B-3(2)

            	 	 	
              Variable(3)

            	
               

            	 	 	 	
              $

            	
              5,778,000.00

            	 	 	
              August
                25, 2036

            	 
	
              B-4(2)

            	 	 	
              Variable(3)

            	
               

            	 	 	 	
              $

            	
              6,240,000.00

            	 	 	
              August
                25, 2036

            	 
	
              Class
                C Interest

            	 	 	
              Variable(3)(4)

            	
               

            	 	 	 	
              $

            	
              23,113,008.63

            	 	 	
              August
                25, 2036

            	 
	
              Class
                IO Interest

            	 	 	
              (5)

            	
               

            	 	 	 	 	
              (6)

            	
               

            	 	
              August
                25, 2036

            	 

    

    

    ______________________________________

    (1) For
      purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the
      Distribution Date in the month following the maturity date for the Mortgage
      Loan
      with the latest maturity date has been designated as the “latest possible
      maturity date” for each REMIC III Regular Interest (as defined
      herein).

     

    (2) This
      Class of Certificates represents ownership of a Regular Interest in REMIC III.
      Any amount distributed on this Class of Certificates on any Distribution Date
      in
      excess of the amount distributable on the related Regular Interest in REMIC
      III
      on such Distribution Date shall be treated for federal income tax purposes
      as
      having been paid from the Reserve Fund or the Supplemental Interest Trust,
      as
      applicable, and any amount distributable on the related Regular Interest in
      REMIC III on such Distribution Date in excess of the amount distributable on
      such Class of Certificates on such Distribution Date shall be treated for such
      purposes as having been distributed to the Holders of such Certificates and
      then
      paid by such Holders to the Supplemental Interest Trust, all pursuant to and
      as
      further provided in Section 4.14 hereof.

     

    (3) Calculated
      in accordance with the definition of “Pass-Through Rate” herein. Each Regular
      Interest in REMIC III which corresponds to a Class A, Class M or Class B
      Certificate will have the same Pass-Through Rate as such Certificate, except
      with respect to the Net WAC Cap Rate. The Net WAC Cap Rate for each such Regular
      Interest in REMIC III and Certificate is specified in the definition of “Net WAC
      Cap Rate.”

     

    (4)
       The
      Class
      C Interest will not accrue interest on its Uncertificated Principal Balance,
      but
      will accrue interest on its Uncertificated Notional Amount as described
      herein. 

     

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

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    REMIC
      IV

     

    As
      provided herein, the Securities Administrator on behalf of the Trustee will
      elect to treat the segregated pool of assets consisting of the Class C Interest
      as a REMIC for federal income tax purposes, and such segregated pool of assets
      will be designated as “REMIC IV”. The Class R-4 Interest represents the sole
      class of Residual Interests in REMIC IV for purposes of the REMIC
      Provisions.

     

    The
      following table sets forth the Class designation, Pass-Through Rate, Initial
      Certificate Principal Balance and, for purposes of satisfying Treasury
      Regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for
      the indicated Class of Certificates that represents a Regular Interest in REMIC
      IV created hereunder. Each Class C Certificate represents ownership of a Regular
      Interest in REMIC IV and also represents (i) the obligation to pay certain
      amounts specified herein in respect of Basis Risk Shortfall Carry Forward
      Amounts and (ii) the right to receive Class IO Distribution
      Amounts.

     

    
      	
              Class
                Designation

            	 	
              Pass-Through
                Rate

            	 	
              Initial
                Certificate

              Principal
                Balance

            	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 
	
              C

            	 	 	
              Variable(2)

            	
               

            	
              $

            	
              23,113,008.63

            	 	 	
              August
                25, 2036

            	 

    

    

    _______________

    (1) For
      purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the
      Distribution Date in the month following the maturity date for the Mortgage
      Loan
      with the latest maturity date has been designated as the “latest possible
      maturity date” for the Class C Certificates.

    

    (2) The
      Class
      C Certificates will not accrue interest on its Uncertificated Principal Balance,
      but will receive 100% of the amounts received in respect of the Class C
      Interest. 

     

    REMIC
      V

     

    As
      provided herein, the Securities Administrator on behalf of the Trustee shall
      elect to treat the segregated pool of assets consisting of the Class IO Interest
      as a REMIC for federal income tax purposes, and such segregated pool of assets
      will be designated as “REMIC V”. The Class R-5 Interest represents the sole
      class of Residual Interests in REMIC V for purposes of the REMIC
      Provisions.

     

    The
      following table sets forth the designation, Pass-Through Rate, initial
      Uncertificated Principal Balance and, for purposes of satisfying Treasury
      Regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for
      the indicated class of interests that represents a Regular Interest in REMIC
      V
      created hereunder:

     

    
      	
              Designation

            	 	
              Pass-Through
                Rate

            	 	
              Initial
                Uncertificated Principal Balance

            	 	
              Latest
                Possible

              Maturity
                Date(1)

            	 
	
              IO(2)

            	 	 	
              (3)

            	
               

            	
               

            	
              (4)

            	
               

            	 	
              August
                25, 2036

            	 

    

    _______________

    (1) For
      purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the
      Distribution Date in the month following the maturity date for the Mortgage
      Loan
      with the latest maturity date has been designated as the “latest possible
      maturity date” for REMIC V Regular Interest IO.

    

    (2) REMIC
      V
      Regular Interest IO will be held as an asset of the Supplemental Interest
      Trust.

    (3) REMIC
      V
      Regular Interest IO will not have a Pass-Through Rate, but will receive 100%
      of
      the amounts received in respect of the Class IO Interest. 

    

    (4) REMIC
      V
      Regular Interest IO will not have an Uncertificated Principal Balance, but
      will
      have a notional amount equal to the Uncertificated Notional Amount of the Class
      IO Interest.

    

     

    The
      Trust
      Fund shall be named, and may be referred to as, the “SACO I Trust 2006-9.” The
      Certificates issued hereunder may be referred to as “Mortgage-Backed
      Certificates, Series 2006-9” (including for purposes of any endorsement or
      assignment of a Mortgage Note or Mortgage).

     

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

     

    

    

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.01  Defined
      Terms. 

     

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

     

    10-K
      Filing Deadline:
      The
      meaning set forth in Section 3.18(a)(iv).

     

    Accepted
      Master Servicing Practices:
      With
      respect to any Mortgage Loan those customary mortgage master servicing practices
      of prudent mortgage master servicing institutions that master service mortgage
      loans, of the same type and quality as such Mortgage Loan in the jurisdiction
      where the related Mortgaged Property is located, to the extent applicable to
      the
      Master Servicer (except in its capacity as successor to the Company or a
      Servicer).

     

    Accepted
      Servicing Practices:
      With
      respect to each Mortgage Loan, those customary mortgage servicing practices
      (including collection procedures) that are in accordance with all applicable
      statutes, regulations and prudent mortgage banking practices for mortgage loans
      of the same type and quality as such Mortgage Loan in the jurisdiction where
      the
      related Mortgaged Property is located.

     

    Account:
      The
      Distribution Account, the Master Servicer Collection Account, the Reserve Fund,
      the Swap Account and any Protected Account.

     

    Accrual
      Period:
      With
      respect to the Certificates (other than the Class C Certificates and the
      Residual Certificates) and any Distribution Date, the period from and including
      the immediately preceding Distribution Date (or with respect to the first
      Accrual Period, the Closing Date) to and including the day prior to such
      Distribution Date. With respect to the Class C Certificates and the Class C
      Interest and any Distribution Date, the calendar month immediately preceding
      such Distribution Date. All calculations of interest on the Certificates (other
      than the Class C Certificates and the Residual Certificates) will be made on
      the
      basis of the actual number of days elapsed in the related Accrual Period. All
      calculations of interest on the Class C Certificates and the Class C Interest
      will be made on the basis of a 360-day year consisting of twelve 30-day
      months.

     

    Additional
      Disclosure:
      As
      defined in Section 3.18(a)(v).

     

    Additional
      Disclosure Notification:
      The
      form of notice set forth in Exhibit Q.

     

    Additional
      Form 10-D Disclosure:
      As
      defined in Section 3.18(a)(i).

     

    Additional
      Form 10-K Disclosure:
      As
      defined in Section 3.18(a)(iv).

     

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

     

    Adjustment
      Date:
      With
      respect to each Adjustable Rate Mortgage Loan, the first day of the month in
      which the Mortgage Rate of an Adjustable Rate Mortgage Loan changes pursuant
      to
      the related Mortgage Note. The first Adjustment Date following the Cut-off
      Date
      as to each Adjustable Rate Mortgage Loan is set forth in the Mortgage Loan
      Schedule.

     

    Advance:
      An
      advance of delinquent payments of principal and interest in respect of a
      Mortgage Loan required to be made by the Company as provided in Section 6.01(a)
      hereof or by the related Servicer and Master Servicer as provided in Section
      6.01(b) hereof.

     

    Affected
      Party:
      An
“Affected Party” as defined in the Swap Agreement.

     

    Agreement:
      This
      Pooling and Servicing Agreement and any and all amendments or supplements hereto
      made in accordance with the terms herein.

     

    Amount
      Held for Future Distribution:
      As to
      any Distribution Date and the EMC Mortgage Loans, the aggregate amount held
      in
      the Company’s Protected Account at the close of business on the immediately
      preceding Determination Date on account of (i) all Scheduled Payments or
      portions thereof received in respect of the EMC Mortgage Loans due after the
      related Due Period and (ii) Principal Prepayments, Liquidation Proceeds,
      Subsequent Recoveries and Insurance Proceeds received in respect of such
      Mortgage Loans after the last day of the related Prepayment Period. As to any
      Distribution Date and the Mortgage Loans serviced by any Servicer other than
      EMC, the aggregate amount held in the related Servicer’s Protected Account at
      the close of business on the immediately preceding Business Day on account
      of
      (i) all principal payments or portions thereof received in respect of such
      Mortgage Loans serviced by it due after the related Due Period and (ii)
      Principal Prepayments, Liquidation Proceeds, Subsequent Recoveries and Insurance
      Proceeds received in respect of such Mortgage Loans after the last day of the
      related Prepayment Period.

     

    Annual
      Statement of Compliance:
      As
      defined in Section 3.16.

     

    Applied
      Realized Loss Amount:
      With
      respect to any Distribution Date and any Class of Class A, Class M and Class
      B
      Certificates, the sum of the Realized Losses with respect to the Mortgage Loans
      that have been applied in reduction of the Certificate Principal Balance of
      a
      Class of Certificates pursuant to Section 6.05 of this Agreement which have
      not
      previously been reimbursed or reduced by any Subsequent Recoveries applied
      to
      such Applied Realized Loss Amount.

     

    Appraised
      Value:
      With
      respect to any Mortgage Loan originated in connection with a refinancing, the
      appraised value of the Mortgaged Property based upon the appraisal made at
      the
      time of such refinancing or, with respect to any other Mortgage Loan, the lesser
      of (x) the appraised value of the Mortgaged Property based upon the appraisal
      made by a fee appraiser at the time of the origination of the related Mortgage
      Loan, and (y) the sales price of the Mortgaged Property at the time of such
      origination.

     

    Assignment
      Agreement:
      The
      First Horizon Assignment Agreement, the GMACM Assignment Agreement or the
      HomeBanc Assignment Agreement, as applicable.

     

    Assessment
      of Compliance:
      As
      defined in Section 3.17.

     

    Attestation
      Report:
      As
      defined in Section 3.17.

     

    Attesting
      Party:
      As
      defined in Section 3.17.

     

    Back-Up
      Certification:
      As
      defined in Section 3.18.

     

    Basis
      Risk Shortfall Carry Forward Amount:
      With
      respect to any Distribution Date and any Class of Class A, Class M and Class
      B
      Certificates, an amount equal to the sum of (A) the excess, if any, of (a)
      the
      amount of Current Interest that such Class would have been entitled to receive
      on such Distribution Date had the Pass-Though Rate applicable to such Class
      been
      calculated at a per annum rate equal to lesser of (i) the related One-Month
      LIBOR Pass-Through Rate and (ii) 11.00% per annum, over (b) the amount of
      Current Interest that such Class received on such Distribution Date if the
      Pass-Through Rate is limited to the Net Rate Cap and (B) the Basis Risk
      Shortfall Carry Forward Amount for the previous Distribution Date not previously
      paid, together with interest thereon at a rate equal to the related Pass-Through
      Rate the current Distribution Date.

     

    Bankruptcy
      Code:
      Title
      11 of the United States Code.

     

    Book-Entry
      Certificates:
      Any of
      the Certificates that shall be registered in the name of the Depository or
      its
      nominee, the ownership of which is reflected on the books of the Depository
      or
      on the books of a person maintaining an account with the Depository (directly,
      as a “Depository Participant”, or indirectly, as an indirect participant in
      accordance with the rules of the Depository and as described in Section 7.06).
      As of the Closing Date, each Class of Regular Certificates (other than the
      Class
      C Certificates) constitutes a Class of Book-Entry Certificates.

     

    Business
      Day:
      Any day
      other than (i) a Saturday or a Sunday, or (ii) a day on which banking
      institutions in the City of New York, New York, Chicago, Illinois, Minneapolis,
      Minnesota or any city in which the Corporate Trust Office of the Trustee or
      the
      Securities Administrator or the principal office of the Company or the Master
      Servicer is located are authorized or obligated by law or executive order to
      be
      closed.

     

    Certificate:
      Any one
      of the certificates of any Class executed and authenticated by the Securities
      Administrator in substantially the forms attached hereto as Exhibits A-1 through
      A-5.

     

    Certificate
      Margin:
      With
      respect to the Class A Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest A, 0.150% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.300% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-1 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-1, 0.350% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.525% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-2 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-2, 0.380% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.570% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-3 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-3, 0.410% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.615% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-4 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-4, 0.520% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.780% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-5 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-5, 0.600% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 0.900% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class M-6 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-6, 0.700% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 1.050% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class B-1 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest B-1, 1.100% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 1.650% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class B-2 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest B-2, 1.250% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 1.875% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class B-3 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest B-3, 2.750% per
      annum in the case of each Distribution Date through and including the first
      possible Optional Termination Date and 4.125% per annum in the case of each
      Distribution Date thereafter.

     

    With
      respect to the Class B-4 Certificates and, for purposes of the definition of
      “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest B-4 Certificates,
      2.500% per annum in the case of each Distribution Date through and including
      the
      first possible Optional Termination Date and 3.750% per annum in the case of
      each Distribution Date thereafter.

     

    Certificate
      Notional Amount:
      With
      respect to the Class C Certificates and any Distribution Date, an amount equal
      to the Stated Principal Balance of the Mortgage Loans as of the beginning of
      the
      related Due Period. The initial Certificate Notional Amount of the Class C
      Certificates shall be $462,245,008.63. For federal income tax purposes, the
      Certificate Notional Amount for any Distribution Date shall be an amount equal
      to the Uncertificated Notional Amount for the Class C Interest for such
      Distribution Date

    

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

     

    Certificate
      Principal Balance:
      As to
      any Certificate (other than any Class C Certificate and any Class R Certificate)
      and as of any Distribution Date, the Initial Certificate Principal Balance
      of
      such Certificate plus, in the case of a Class A, Class M or Class B Certificate,
      any Subsequent Recoveries added to the Certificate Principal Balance of such
      Certificate pursuant to Section 6.04(b), less the sum of (i) all amounts
      distributed with respect to such Certificate in reduction of the Certificate
      Principal Balance thereof on previous Distribution Dates pursuant to Section
      6.04, and (ii) any Applied Realized Loss Amounts allocated to such Certificate
      on previous Distribution Dates. As to the Class C Certificates and as of any
      Distribution Date, an amount equal to the Uncertificated Principal Balance
      of
      the Class C Interest. 

     

    Certificate
      Register:
      The
      register maintained pursuant to Section 7.02 hereof.

     

    Certificateholder
      or Holder:
      The
      person in whose name a Certificate is registered in the Certificate Register
      (initially, Cede & Co., as nominee for the Depository, in the case of any
      Book-Entry Certificates).

     

    Certification
      Parties:
      The
      meaning set forth in Section 3.18(a)(iv).

     

    Certifying
      Person:
      The
      meaning set forth in Section 3.18(a)(iv).

     

    Class:
      All
      Certificates bearing the same Class designation as set forth in Section 7.01
      hereof.

     

    Class
      A Principal Distribution Amount:
      For
      any
      Distribution Date, an amount equal to the lesser of (x) the Principal
      Distribution Amount for such Distribution Date and (y) the excess, if any,
      of
      (i) the aggregate Certificate Principal Balance of the Class A Certificates
      immediately prior to such Distribution Date, over (ii) the lesser of (a) the
      product of (1) 51.90% and (2) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the related Due Period), and (b) the aggregate Stated Principal
      Balance of the Mortgage Loans as of the last day of the related Due Period
      (after giving effect to scheduled payments of principal due during the related
      Due Period, to the extent received or advanced, and unscheduled collections
      of
      principal received during the related Prepayment Period, and after reduction
      for
      Realized Losses incurred during the related Due Period) minus the
      Overcollateralization Floor.

     

    Class
      A Certificate:
      Any
      Certificate designated as a “Class A Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to the Percentage Interest
      of
      distributions provided for the Class A Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts.

     

    Class
      B Certificates:
      Any of
      the Class B-1, Class B-2, Class B-3 or Class B-4 Certificates.

     

    Class
      B-1 Certificate:
      Any
      Certificate designated as a “Class B-1 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-1 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts.

     

    Class
      B-1 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution
      Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal
      Distribution Amount and the Class M-6 Principal Distribution Amount and (y)
      the
      excess, if any, of (a) the sum of (1) the aggregate Certificate Principal
      Balance of the Class A Certificates (after taking into account the distribution
      of the Class A Principal Distribution Amount on such Distribution Date), (2)
      the
      Certificate Principal Balance of the Class M-1 Certificates (after taking into
      account the distribution of the Class M-1 Principal Distribution Amount on
      such
      Distribution Date), (3) the Certificate Principal Balance of the Class M-2
      Certificates (after taking into account the distribution of the Class M-2
      Principal Distribution Amount on such Distribution Date), (4) the Certificate
      Principal Balance of the Class M-3 Certificates (after taking into account
      the
      distribution of the Class M-3 Principal Distribution Amount on such Distribution
      Date), (5) the Certificate Principal Balance of the Class M-4 Certificates
      (after taking into account the distribution of the Class M-4 Principal
      Distribution Amount on such Distribution Date), (6) the Certificate Principal
      Balance of the Class M-5 Certificates (after taking into account the
      distribution of the Class M-5 Principal Distribution Amount on such Distribution
      Date), (7) the Certificate Principal Balance of the Class M-6 Certificates
      (after taking into account the distribution of the Class M-6 Principal
      Distribution Amount on such Distribution Date) and (8) the Certificate Principal
      Balance of the Class B-1 Certificates immediately prior to such Distribution
      Date, over (b) the lesser of (1) the product of (x) 82.80% and (y) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the related Due Period),
      and
      (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the
      last
      day of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the related
      Due
      Period) minus the Overcollateralization Floor.

     

    Class
      B-2 Certificate:
      Any
      Certificate designated as a “Class B-2 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-2 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts.

     

    Class
      B-2 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution
      Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal
      Distribution Amount, the Class M-6 Principal Distribution Amount and the Class
      B-1 Principal Distribution Amount and (y) the excess, if any, of (a) the sum
      of
      (1) the aggregate Certificate Principal Balance of the Class A Certificates
      (after taking into account the distribution of the Class A Principal
      Distribution Amount on such Distribution Date), (2) the Certificate Principal
      Balance of the Class M-1 Certificates (after taking into account the
      distribution of the Class M-1 Principal Distribution Amount on such Distribution
      Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
      (after taking into account the distribution of the Class M-2 Principal
      Distribution Amount on such Distribution Date), (4) the Certificate Principal
      Balance of the Class M-3 Certificates (after taking into account the
      distribution of the Class M-3 Principal Distribution Amount on such Distribution
      Date), (5) the Certificate Principal Balance of the Class M-4 Certificates
      (after taking into account the distribution of the Class M-4 Principal
      Distribution Amount on such Distribution Date), (6) the Certificate Principal
      Balance of the Class M-5 Certificates (after taking into account the
      distribution of the Class M-5 Principal Distribution Amount on such Distribution
      Date), (7) the Certificate Principal Balance of the Class M-6 Certificates
      (after taking into account the distribution of the Class M-6 Principal
      Distribution Amount on such Distribution Date), (8) the Certificate Principal
      Balance of the Class B-1 Certificates (after taking into account the
      distribution of the Class B-1 Principal Distribution Amount on such Distribution
      Date) and (9) the Certificate Principal Balance of the Class B-2 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 84.80% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the related Due Period), and (2) the aggregate Stated Principal
      Balance of the Mortgage Loans as of the last day of the related Due Period
      (after giving effect to scheduled payments of principal due during the related
      Due Period, to the extent received or advanced, and unscheduled collections
      of
      principal received during the related Prepayment Period, and after reduction
      for
      Realized Losses incurred during the related Due Period) minus the
      Overcollateralization Floor.

     

    Class
      B-3 Certificate:
      Any
      Certificate designated as a “Class B-3 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-3 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts. 

     

    Class
      B-3 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution
      Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal
      Distribution Amount, the Class M-6 Principal Distribution Amount, the Class
      B-1
      Principal Distribution Amount, and the Class B-2 Principal Distribution Amount
      and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate
      Principal Balance of the Class A Certificates (after taking into account the
      distribution of the Class A Principal Distribution Amount on such Distribution
      Date), (2) the Certificate Principal Balance of the Class M-1 Certificates
      (after taking into account the distribution of the Class M-1 Principal
      Distribution Amount on such Distribution Date), (3) the Certificate Principal
      Balance of the Class M-2 Certificates (after taking into account the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (4) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date), (5) the Certificate Principal
      Balance of the Class M-4 Certificates (after taking into account the
      distribution of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (6) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the distribution of the Class M-5 Principal
      Distribution Amount on such Distribution Date), (7) the Certificate Principal
      Balance of the Class M-6 Certificates (after taking into account the
      distribution of the Class M-6 Principal Distribution Amount on such Distribution
      Date), (8) the Certificate Principal Balance of the Class B-1 Certificates
      (after taking into account the distribution of the Class B-1 Principal
      Distribution Amount on such Distribution Date), (9) the Certificate Principal
      Balance of the Class B-2 Certificates (after taking into account the
      distribution of the Class B-2 Principal Distribution Amount on such Distribution
      Date) and (10) the Certificate Principal Balance of the Class B-3 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 87.30% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the related Due Period), and (2) the aggregate Stated Principal
      Balance of the Mortgage Loans as of the last day of the related Due Period
      (after giving effect to scheduled payments of principal due during the related
      Due Period, to the extent received or advanced, and unscheduled collections
      of
      principal received during the related Prepayment Period, and after reduction
      for
      Realized Losses incurred during the related Due Period) minus the
      Overcollateralization Floor.

     

    Class
      B-4 Certificate:
      Any
      Certificate designated as a “Class B-4 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-4 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts. 

     

    Class
      B-4 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution
      Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal
      Distribution Amount, the Class M-6 Principal Distribution Amount, the Class
      B-1
      Principal Distribution Amount, the Class B-2 Principal Distribution Amount
      and
      the Class B-3 Principal Distribution Amount and (y) the excess, if any, of
      (a)
      the sum of (1) the aggregate Certificate Principal Balance of the Class A
      Certificates (after taking into account the distribution of the Class A
      Principal Distribution Amount on such Distribution Date), (2) the Certificate
      Principal Balance of the Class M-1 Certificates (after taking into account
      the
      distribution of the Class M-1 Principal Distribution Amount on such Distribution
      Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
      (after taking into account the distribution of the Class M-2 Principal
      Distribution Amount on such Distribution Date), (4) the Certificate Principal
      Balance of the Class M-3 Certificates (after taking into account the
      distribution of the Class M-3 Principal Distribution Amount on such Distribution
      Date), (5) the Certificate Principal Balance of the Class M-4 Certificates
      (after taking into account the distribution of the Class M-4 Principal
      Distribution Amount on such Distribution Date), (6) the Certificate Principal
      Balance of the Class M-5 Certificates (after taking into account the
      distribution of the Class M-5 Principal Distribution Amount on such Distribution
      Date), (7) the Certificate Principal Balance of the Class M-6 Certificates
      (after taking into account the distribution of the Class M-6 Principal
      Distribution Amount on such Distribution Date), (8) the Certificate Principal
      Balance of the Class B-1 Certificates (after taking into account the
      distribution of the Class B-1 Principal Distribution Amount on such Distribution
      Date), (9) the Certificate Principal Balance of the Class B-2 Certificates
      (after taking into account the distribution of the Class B-2 Principal
      Distribution Amount on such Distribution Date), (10) the Certificate Principal
      Balance of the Class B-3 Certificates (after taking into account the
      distribution of the Class B-3 Principal Distribution Amount on such Distribution
      Date) and (11) the Certificate Principal Balance of the Class B-4 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 90.00% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the related Due Period), and (2) the aggregate Stated Principal
      Balance of the Mortgage Loans as of the last day of the related Due Period
      (after giving effect to scheduled payments of principal due during the related
      Due Period, to the extent received or advanced, and unscheduled collections
      of
      principal received during the related Prepayment Period, and after reduction
      for
      Realized Losses incurred during the related Due Period) minus the
      Overcollateralization Floor.

     

    Class
      C Certificate:
      Any
      Certificate designated as a “Class C Certificate” on the face thereof, in the
      form of Exhibit A-4 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class C Certificates herein and evidencing (i)
      a
      Regular Interest in REMIC IV, (ii) the obligation to pay Basis Risk Shortfall
      Carry Forward Amounts, (iii)
      the
      right to receive Class IO Distribution Amounts and (iv) the right to receive
      any
      Prepayment Charge Waiver Amounts.

     

    Class
      C Distribution Amount:
      With
      respect to any Distribution Date, the sum of (i) the Current Interest for the
      Class C Interest for such Distribution Date, (ii) any Overcollateralization
      Release Amount for such Distribution Date and (iii) without duplication, any
      Subsequent Recoveries not distributed to the Class A, Class M and Class B
      Certificates on such Distribution Date; provided, however, that, on any
      Distribution Date after the Distribution Date on which the Certificate Principal
      Balances of the Class A, Class M and Class B Certificates have been reduced
      to
      zero, the Class C Distribution Amount shall include the Overcollateralization
      Amount.

     

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

     

    Class
      IO Distribution Amount:
      As
      defined in Section 4.14 hereof. For purposes of clarity, the Class IO
      Distribution Amount for any Distribution Date shall equal the amount payable
      to
      the Swap Administrator on such Distribution Date pursuant to the first and
      second sentences of Section 4.14(c) in excess of the amount payable on REMIC
      V
      Regular Interest IO on such Distribution Date, all as further provided in
      Section 4.14 hereof.

     

    Class
      IO Interest:
      An
      uncertificated interest in the Trust Fund held by the Trustee on behalf of
      the
      holders of REMIC V Regular Interest IO, evidencing a Regular Interest in REMIC
      V
      for purposes of the REMIC provisions.

     

    Class
      M Certificates:
      Any of
      the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6
      Certificates.

     

    Class
      M-1 Certificate:
      Any
      Certificate designated as a “Class M-1 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-1 Certificates as set forth herein and
      evidencing
      (i) a Regular Interest in REMIC III, (ii) the right to receive Basis Risk
      Shortfall Carry Forward Amounts and (iii) the obligation to pay Class IO
      Distribution Amounts.

     

    Class
      M-1 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount and (y) the excess, if any, of (a) the sum of
      (1)
      the aggregate Certificate Principal Balance of the Class A Certificates (after
      taking into account the distribution of the Class A Principal Distribution
      Amount on such Distribution Date) and (2) the Certificate Principal Balance
      of
      the Class M-1 Certificates immediately prior to such Distribution Date, over
      (b)
      the lesser of (1) the product of (x) 60.60% and (y) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the related Due Period),
      and
      (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the
      last
      day of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the related
      Due
      Period) minus the Overcollateralization Floor.

     

    Class
      M-2 Certificate:
      Any
      Certificate designated as a “Class M-2 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-2 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts. 

     

    Class
      M-2 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount and the Class M-1 Principal Distribution Amount
      and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate
      Principal Balance of the Class A Certificates (after taking into account the
      distribution of the Class A Principal Distribution Amount on such Distribution
      Date), (2) the Certificate Principal Balance of the Class M-1 Certificates
      (after taking into account the distribution of the Class M-1 Principal
      Distribution Amount on such Distribution Date) and (3) the Certificate Principal
      Balance of the Class M-2 Certificates immediately prior to such Distribution
      Date, over (b) the lesser of (1) the product of (x) 69.30% and (y) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the related Due Period),
      and
      (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the
      last
      day of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the related
      Due
      Period) minus the Overcollateralization Floor.

     

    Class
      M-3 Certificate:
      Any
      Certificate designated as a “Class M-3 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-3 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts. 

     

    Class
      M-3 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount
      and
      the Class M-2 Principal Distribution Amount and (y) the excess, if any, of
      (a)
      the sum of (1) the aggregate Certificate Principal Balance of the Class A
      Certificates (after taking into account the distribution of the Class A
      Principal Distribution Amount on such Distribution Date), (2) the Certificate
      Principal Balance of the Class M-1 Certificates (after taking into account
      the
      distribution of the Class M-1 Principal Distribution Amount on such Distribution
      Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
      (after taking into account the distribution of the Class M-2 Principal
      Distribution Amount on such Distribution Date) and (4) the Certificate Principal
      Balance of the Class M-3 Certificates immediately prior to such Distribution
      Date, over (b) the lesser of (1) the product of (x) 72.40% and (y) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the related Due Period),
      and
      (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the
      last
      day of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the related
      Due
      Period) minus the Overcollateralization Floor.

     

    Class
      M-4 Certificate:
      Any
      Certificate designated as a “Class M-4 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-4 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts. 

     

    Class
      M-4 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount and the Class M-3 Principal Distribution
      Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date), (2) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (3) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (4) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date) and (5) the Certificate Principal
      Balance of the Class M-4 Certificates immediately prior to such Distribution
      Date, over (b) the lesser of (1) the product of (x) 75.20% and (y) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the related Due Period),
      and
      (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the
      last
      day of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the related
      Due
      Period) minus the Overcollateralization Floor.

     

    Class
      M-5 Certificate:
      Any
      Certificate designated as a “Class M-5 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-5 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts.

     

    Class
      M-5 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution
      Amount and the Class M-4 Principal Distribution Amount and (y) the excess,
      if
      any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the
      Class A Certificates (after taking into account the distribution of the Class
      A
      Principal Distribution Amount on such Distribution Date), (2) the Certificate
      Principal Balance of the Class M-1 Certificates (after taking into account
      the
      distribution of the Class M-1 Principal Distribution Amount on such Distribution
      Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
      (after taking into account the distribution of the Class M-2 Principal
      Distribution Amount on such Distribution Date), (4) the Certificate Principal
      Balance of the Class M-3 Certificates (after taking into account the
      distribution of the Class M-3 Principal Distribution Amount on such Distribution
      Date), (5) the Certificate Principal Balance of the Class M-4 Certificates
      (after taking into account the distribution of the Class M-4 Principal
      Distribution Amount on such Distribution Date) and (6) the Certificate Principal
      Balance of the Class M-5 Certificates immediately prior to such Distribution
      Date, over (b) the lesser of (1) the product of (x) 77.90% and (y) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the related Due Period),
      and
      (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the
      last
      day of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the related
      Due
      Period) minus the Overcollateralization Floor.

     

    Class
      M-6 Certificate:
      Any
      Certificate designated as a “Class M-6 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-6 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive Basis
      Risk Shortfall Carry Forward Amounts and (iii) the obligation to pay Class
      IO
      Distribution Amounts.

     

    Class
      M-6 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution
      Amount, the Class M-4 Principal Distribution Amount and the Class M-5 Principal
      Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the
      aggregate Certificate Principal Balance of the Class A Certificates (after
      taking into account the distribution of the Class A Principal Distribution
      Amount on such Distribution Date), (2) the Certificate Principal Balance of
      the
      Class M-1 Certificates (after taking into account the distribution of the Class
      M-1 Principal Distribution Amount on such Distribution Date), (3) the
      Certificate Principal Balance of the Class M-2 Certificates (after taking into
      account the distribution of the Class M-2 Principal Distribution Amount on
      such
      Distribution Date), (4) the Certificate Principal Balance of the Class M-3
      Certificates (after taking into account the distribution of the Class M-3
      Principal Distribution Amount on such Distribution Date), (5) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      distribution of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (6) the Certificate Principal Balance of the Class M-5 Certificates
      (after taking into account the distribution of the Class M-5 Principal
      Distribution Amount on such Distribution Date) and (7) the Certificate Principal
      Balance of the Class M-6 Certificates immediately prior to such Distribution
      Date, over (b) the lesser of (1) the product of (x) 80.50% and (y) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the related Due Period),
      and
      (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the
      last
      day of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the related
      Due
      Period) minus the Overcollateralization Floor.

     

    Class
      R Certificate:
      Any of
      the Class R-1, Class R-2, Class R-3 or Class RX Certificates.

     

    Class
      R-1 Certificate:
      Any
      Certificate designated a “Class R-1 Certificate” on the face thereof, in the
      form set forth in Exhibit A-5 hereto, evidencing the Residual Interest in REMIC
      I and representing the right to the Percentage Interest of distributions
      provided for the Class R-1 Certificates as set forth herein.

     

    Class
      R-2 Certificate:
      Any
      Certificate designated a “Class R-2 Certificate” on the face thereof, in the
      form set forth in Exhibit A-5 hereto, evidencing the Residual Interest in REMIC
      II and representing the right to the Percentage Interest of distributions
      provided for the Class R-2 Certificates as set forth herein.

     

    Class
      R-3 Certificate:
      Any
      Certificate designated a “Class R-3 Certificate” on the face thereof, in the
      form set forth in Exhibit A-5 hereto, evidencing the Residual Interest in REMIC
      III and representing the right to the Percentage Interest of distributions
      provided for the Class R-3 Certificates as set forth herein.

     

    Class
      RX Certificate:
      Any
      Certificate designated a “Class RX Certificate” on the face thereof, in the form
      set forth in Exhibit A-5 hereto, evidencing the ownership of the Class R-4
      Interest and Class R-5 Interest and representing the right to the Percentage
      Interest of distributions provided for the Class RX Certificates as set forth
      herein.

     

    Class
      R-4 Interest:
      The
      uncertificated Residual Interest in REMIC IV.

     

    Class
      R-5 Interest:
      The
      uncertificated Residual Interest in REMIC V.

     

    Closing
      Date:
      August
      30, 2006.

     

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

     

    Combined
      Loan-to-Value Ratio:
      With
      respect to any Mortgage Loan and as of any date of determination, the fraction
      (expressed as a percentage) the numerator of which is the sum of (i) original
      principal balance of the related Mortgage Loan at such date of determination
      and
      (ii) the unpaid principal balance of the related first lien Mortgage Loan as
      of
      the date of origination of that Mortgage Loan and the denominator of which
      is
      the applicable Appraised Value of the related Mortgaged Property at
      origination.

     

    Commission:
      The
      U.S. Securities and Exchange Commission.

     

    Company:
      EMC.

     

    Company
      Default:
      As
      defined in Section 9.05 hereof.

     

    Compensating
      Interest:
      With
      respect to any Distribution Date, (i) in the case of any Servicer, an amount,
      not to exceed the Servicing Fee, to be deposited in the Protected Account by
      such Servicer with respect to the payment of a Prepayment Interest Shortfall
      (related to a voluntary prepayment as described in Section 6.02(a) hereof)
      on a
      Mortgage Loan subject to this Agreement and (ii) in the case of the Master
      Servicer, an amount not to exceed that portion of the Master Servicing Fee
      payable to the Master Servicer. If the related Servicer fails to make such
      payment, the Master Servicer shall be obligated to do so to the extent provided
      in Section 6.02(b) hereof.

     

    Corporate
      Trust Office:
      (i)
      With respect to the Trustee, the designated corporate trust office of the
      Trustee, currently located at Citibank, N.A., 388 Greenwich Street, 14th Floor,
      New York, New York 10013, and (ii) with respect to the Securities Administrator,
      the designated office of the Securities Administrator currently located at
      135
      South LaSalle Street, Suite 1625, Chicago, Illinois 60603 Attention: Global
      Securities and Trust Services Group — SACO 2006-9 or at such other address as
      the Trustee or Securities Administrator, as applicable, may designate from
      time
      to time by notice to the Certificateholders, the Depositor, the Trustee, the
      Master Servicer, the Securities Administrator and EMC or at the principal
      corporate trust office of any successor Trustee. 

     

    Corresponding
      Certificate:
      With
      respect to each REMIC II Regular Interest (other than REMIC II Regular Interests
      AA, ZZ and IO), the Certificate with the corresponding designation. With respect
      to each REMIC III Regular Interest (other than the Class C Interest and the
      Class IO Interest), the related Certificate representing an ownership
      therein.

     

    Cumulative
      Realized Loss Percentage:
      With
      respect to the Certificates and any Distribution Date, the percentage obtained
      by dividing (x) the aggregate Realized Losses on the Mortgage Loans incurred
      since the related Cut-off Date through the end of the related Due Period by
      (y)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the related
      Cut-off Date.

     

    Current
      Interest:
      As of
      any Distribution Date, with respect to the Certificates and interests of each
      class (other than the Residual Interests and the Residual Certificates), (i)
      the
      interest accrued on the Certificate Principal Balance, or Certificate Notional
      Amount or Uncertificated Notional Amount, as applicable, during the related
      Accrual Period at the applicable Pass-Through Rate, plus any amount previously
      distributed with respect to interest for such Certificate or interest that
      has
      been recovered as a voidable preference by a trustee in bankruptcy minus (ii)
      the sum of (a) any Prepayment Interest Shortfall for such Distribution Date,
      to
      the extent not covered by Compensating Interest and (b) any Relief Act Interest
      Shortfalls during the related Due Period, provided, however, that for purposes
      of calculating Current Interest for any such class, amounts specified in clause
      (ii) hereof for any such Distribution Date shall be allocated first to the
      Class
      C Certificates and the Class C Interest and the Residual Certificates in
      reduction of amounts otherwise distributable to such Certificates and interest
      on such Distribution Date and then any excess shall be allocated to each Class
      of Class A, Class M and Class B Certificates pro
      rata
      based on
      the respective amounts of interest accrued pursuant to clause (i) hereof for
      each such Class on such Distribution Date.

     

    Current
      Specified Enhancement Percentage: With
      respect to any Distribution Date, the percentage obtained by dividing (x) the
      sum of (i) the aggregate Certificate Principal Balance of the Class M
      Certificates and Class B Certificates and (ii) the Overcollateralization Amount,
      in each case prior to the distribution of the Principal Distribution Amount
      on
      such Distribution Date, by (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the end of the related Due Period (after giving effect
      to
      scheduled payments of principal due during the related Due Period, to the extent
      received or advanced, and unscheduled collections of principal received during
      the related Prepayment Period, and after reduction for Realized Losses incurred
      during the related Due Period).

     

    Custodial
      Agreements:
      The
      LaSalle Custodial Agreement or Wells Fargo Custodial Agreement, as applicable.
      

     

    Custodians:
      (i)
      Wells Fargo, or any successor custodian appointed pursuant to the provisions
      hereof and the Wells Fargo Custodial Agreement and (ii) LaSalle, or any
      successor custodian appointed pursuant to the provisions hereof and the LaSalle
      Custodial Agreement.

     

    Cut-off
      Date:
      The
      close of business on August 1, 2006.

     

    Cut-off
      Date Principal Balance:
      As to
      any Mortgage Loan, the unpaid principal balance thereof as of the close of
      business on the Cut-off Date after application of all Principal Prepayments
      received prior to the Cut-off Date and scheduled payments of principal due
      on or
      before the Cut-off Date, whether or not received, but without giving effect
      to
      any installments of principal received in respect of Due Dates after the Cut-off
      Date. The aggregate Cut-off Date Principal Balance of the Mortgage Loans is
      $462,245,008.63.

    

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

     

    Defaulting
      Party:
      A
“Defaulting Party” as defined in the Swap Agreement.

     

    Deficient
      Valuation:
      With
      respect to any Mortgage Loan, a valuation by a court of competent jurisdiction
      of the Mortgaged Property in an amount less than the then outstanding
      indebtedness under such Mortgage Loan, or any reduction in the amount of
      principal to be paid in connection with any Scheduled Payment that results
      in a
      permanent forgiveness of principal, which valuation or reduction results from
      an
      order of such court that is final and non-appealable in a proceeding under
      the
      Bankruptcy Code.

     

    Definitive
      Certificates:
      As
      defined in Section 7.06.

     

    Deleted
      Mortgage Loan:
      A
      Mortgage Loan replaced or to be replaced by a Replacement Mortgage
      Loan.

     

    Delinquent:
      A
      Mortgage Loan is “delinquent” if any payment due thereon is not made pursuant to
      the terms of such Mortgage Loan 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.

     

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

     

    Depositor:
      Bear
      Stearns Asset Backed Securities I LLC, a Delaware limited liability company,
      or
      its successor in interest.

     

    Depository:
      The
      initial Depository shall be The Depository Trust Company (“DTC”), the nominee of
      which is Cede & Co., or any other organization registered as a “clearing
      agency” pursuant to Section 17A of the Securities Exchange Act of 1934, as
      amended. The Depository shall initially be the registered Holder of the
      Book-Entry Certificates. The Depository shall at all times be a “clearing
      corporation” as defined in Section 8-102(a)(5) of the Uniform Commercial Code of
      the State of New York.

     

    Depository
      Agreement:
      With
      respect to the Class of Book-Entry Certificates, the agreement between the
      Depositor signing on behalf of the Issuing Entity and the initial Depository,
      dated as of the Closing Date, substantially in the form of Exhibit
      H.

     

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

     

    Designated
      Depository Institution:
      A
      depository institution (commercial bank, federal savings bank, mutual savings
      bank or savings and loan association) or trust company (which may include the
      Trustee, the Securities Administrator and the Master Servicer), the deposits
      of
      which are fully insured by the FDIC to the extent provided by law.

     

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

     

    Distribution
      Account:
      The
      segregated trust account or accounts created and maintained by the Securities
      Administrator pursuant to Section 5.08 in the name of the Trustee for the
      benefit of the Certificateholders, which shall be entitled “LaSalle Bank
      National Association, as Securities Administrator, on behalf of Citibank, N.A.,
      as Trustee, in trust for the registered holders of SACO I Trust 2006-9,
      Mortgage-Backed Certificates, Series 2006-9.” The Distribution Account must be
      an Eligible Account.

     

    Distribution
      Account Deposit Date:
      Two
      Business Days prior to each Distribution Date.

     

    Distribution
      Date:
      The
      25th day of each calendar month after the initial issuance of the Certificates,
      or if such 25th day is not a Business Day, the next succeeding Business Day,
      commencing in September 2006.

     

    Due
      Date:
      As to
      any Mortgage Loan, the date in each month on which the related Scheduled Payment
      is due, as set forth in the related Mortgage Note.

     

    Due
      Period:
      With
      respect to any Distribution Date, the period from and including the second
      day
      of the calendar month preceding the calendar month in which such Distribution
      Date occurs through close of business on the first day of the calendar month
      in
      which such Distribution Date occurs.

     

    Eligible
      Account:
      Any of
      (i) an account or accounts maintained with a federal or state chartered
      depository institution or trust company, the long-term unsecured debt
      obligations and 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 debt obligations of such holding company, so long as
      Moody’s is not a Rating Agency) are rated by each Rating Agency in one of its
      two highest long-term and its highest short-term rating categories,
      respectively, at the time any amounts are held on deposit therein, or (ii)
      an
      account or accounts in a depository institution or trust company in which such
      accounts are insured by the FDIC (to the limits established by the FDIC) and
      the
      uninsured deposits in which accounts are otherwise secured such that, as
      evidenced by an Opinion of Counsel delivered to and satisfactory to the Trustee,
      the Securities Administrator and to each Rating Agency, the Certificateholders
      have a claim with respect to the funds in such account or a perfected first
      priority security interest against any collateral (which shall be limited to
      Permitted Investments) securing such funds that is superior to claims of any
      other depositors or creditors of the depository institution or trust company
      in
      which such account is maintained, or (iii) a trust account or accounts
      maintained with the corporate trust department of a federal or state chartered
      depository institution or trust company having capital and surplus of not less
      than $50,000,000, acting in its fiduciary capacity or (iv) any other account
      acceptable to each Rating Agency, as evidenced in writing. Eligible Accounts
      may
      bear interest, and may include, if otherwise qualified under this definition,
      accounts maintained with the Trustee and the Securities
      Administrator.

     

    EMC:
      EMC
      Mortgage Corporation, a Delaware corporation, and its successors and
      assigns.

     

    EMC
      Flow Loans:
      The
      Mortgage Loans purchased by EMC pursuant to a flow loan purchase
      agreement.

     

    EMC
      Mortgage Loans:
      Those
      Mortgage Loans serviced by the Company pursuant to the terms of this
      Agreement.

     

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

     

    ERISA
      Restricted Certificates:
      Any of
      the Class C Certificates and Residual Certificates.

     

    Event
      of Default:
      As
      defined in Section 9.01 hereof.

     

    Excess
      Cashflow:
      With
      respect to any Distribution Date, an amount, if any, equal to the sum of (a)
      the
      Remaining Excess Spread for such Distribution Date and (b) the
      Overcollateralization Release Amount for such Distribution Date.

     

    Excess
      Liquidation Proceeds:
      To the
      extent not required by law to be paid to the related Mortgagor, the excess,
      if
      any, of any Liquidation Proceeds with respect to a Mortgage Loan over the Stated
      Principal Balance of such Mortgage Loan and accrued and unpaid interest at
      the
      related Mortgage Rate through the last day of the month in which the Mortgage
      Loan has been liquidated.

     

    Exemption:
      Prohibited Transaction Exemption 90-30, as amended from time to
      time.

     

    Excess
      Spread:
      With
      respect to any Distribution Date, the excess, if any, of (i) the Interest Funds
      for such Distribution Date over (ii) the sum of the Current Interest on the
      Class A, Class M and Class B Certificates and Interest Carry Forward Amounts
      on
      the Class A Certificates (other than Interest Carry Forward Amounts paid
      pursuant to Section 6.04(a)(3)(A)), in each case for such Distribution
      Date.

     

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

     

    Extra
      Principal Distribution Amount:
      With
      respect to any Distribution Date, the lesser of (i) the excess, if any, of
      the
      Overcollateralization Target Amount for such Distribution Date over the
      Overcollateralization Amount for such Distribution Date (after giving effect
      to
      distributions of principal on the Certificates other than any Extra Principal
      Distribution Amount) and (ii) the Excess Spread for such Distribution
      Date.

     

    Fannie
      Mae:
      Fannie
      Mae (formerly, Federal National Mortgage Association), or any successor
      thereto.

     

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

     

    Final
      Certification:
      The
      certification by a Custodian substantially in the form of Exhibit Three to
      the
      related Custodial Agreement.

     

    Final
      Recovery Determination:
      With
      respect to any defaulted Mortgage Loan or any REO Property (other than a
      Mortgage Loan or REO Property purchased by EMC pursuant to or as contemplated
      by
      Section 2.04(d) or Section 11.01), a determination made by the Company pursuant
      to this Agreement or the related Servicer pursuant to the related Servicing
      Agreement that all Insurance Proceeds, Liquidation Proceeds and other payments
      or recoveries which the Company or such Servicer, in its reasonable good faith
      judgment, expects to be finally recoverable in respect thereof have been so
      recovered. The Master Servicer shall maintain records, based solely on
      information provided by the Company and the related Servicer, of each Final
      Recovery Determination made thereby.

     

    First
      Tennessee:
      First
      Tennessee Mortgage Services, Inc. and any successor thereto.

     

    First
      Horizon:
      First
      Horizon Home Loan Corporation and any successor thereto.

     

    First
      Horizon Assignment Agreement:
      The
      Assignment, Assumption and Recognition Agreement substantially in the form
      of
      Exhibit R-2, dated as of August 30, 2006, among EMC, the Trustee and First
      Tennessee, evidencing the assignment of the First Horizon Assignment Agreement
      to the Trust.

     

    First
      Horizon Loans:
      Those
      Mortgage Loans subject to this Agreement which were purchased by EMC from First
      Horizon pursuant to the First Horizon Servicing Agreement.

     

    First
      Horizon Servicing Agreement:
      the
      Purchase, Warranties and Servicing Agreement, dated as of September 1, 2003,
      as
      amended on May 14, 2004, June 16, 2005, August 8, 2005 and December 22,
      2005, among EMC, First Tennessee and First Horizon, substantially in the form
      of
      Exhibit R-1.

     

    First
      Tennessee:
      First
      Tennessee Mortgage Services, Inc and
      any
      successor thereto.

     

    Fiscal
      Quarter:
      December 1 to February 29 (or the last day in such month), March 1 to May 31,
      June 1 to August 31, or September 1 to November 30, as applicable.

     

    Form
      8-K Disclosure Information:
      The
      meaning set forth in Section 3.18(a)(iii).

     

    Freddie
      Mac:
      Federal
      Home Loan Mortgage Corporation, or any successor thereto.

     

    Global
      Certificate:
      Any
      Private Certificate registered in the name of the Depository or its nominee,
      beneficial interests in which are reflected on the books of the Depository
      or on
      the books of a Person maintaining an account with such Depository (directly
      or
      as an indirect participant in accordance with the rules of such
      depository).

     

    GMAC
      Mortgage Corporation or GMACM:
      GMAC
      Mortgage Corporation and any successor thereto.

     

    GMACM
      Assignment Agreement:
      The
      Assignment, Assumption and Recognition Agreement substantially in the form
      of
      Exhibit S-2, dated as of August 30, 2006, among EMC, the Trustee and GMACM,
      evidencing the assignment of the GMACM Assignment Agreement to the
      Trust.

     

    GMACM
      Loans:
      Those
      Mortgage Loans subject to this Agreement which were purchased by EMC from GMACM
      pursuant to the GMACM Servicing Agreement.

     

    GMACM
      Servicing Agreement:
      The
      Servicing Agreement, dated as of May 1, 2001, as amended by Amendment No. 1,
      dated as of October 1, 2001, Amendment No. 2, dated as of July 31, 2002 and
      Amendment No. 3, dated as of December 20, 2005 substantially in the form of
      Exhibit S-1, between EMC and GMACM.

     

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

     

    HomeBanc:
      HomeBanc Mortgage Corporation and any successor thereto.

     

    HomeBanc
      Assignment Agreement:
      The
      Assignment, Assumption and Recognition Agreement substantially in the form
      of
      Exhibit T-2, dated as of August 30, 2006, among EMC, the Trustee, and HomeBanc
      evidencing the assignment of the HomeBanc Assignment Agreement to the
      Trust.

     

    HomeBanc
      Loans:
      Those
      Mortgage Loans subject to this Agreement which were purchased by EMC from
      HomeBanc pursuant to the HomeBanc Servicing Agreement.

     

    HomeBanc
      Servicing Agreement:
      The
Purchase,
      Warranties and Servicing Agreement, dated as of January 1, 2004, as amended
      by
      the Amended and Restated Amendment No. 1 to the Purchase, Warranties and
      Servicing Agreement, dated as of January 27, 2006
      substantially in the form of Exhibit T-1, between EMC and HomeBanc.

     

    Indemnified
      Persons:
      The
      Trustee, the Master Servicer, the Company, the Trust Fund and the Securities
      Administrator, including LaSalle Bank National Association in its individual
      capacity, and their respective officers, directors, agents and employees and,
      with respect to the Trustee, any separate co-trustee and its officers,
      directors, agents and employees.

     

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

     

    Individual
      Certificate:
      Any
      Private Certificate registered in the name of a Holder other than the Depository
      or its nominee.

     

    Initial
      Certification:
      The
      certification by a Custodian substantially in the form of Exhibit One to the
      related Custodial Agreement.

     

    Initial
      Certificate Principal Balance:
      With
      respect to any Certificate, the Certificate Principal Balance of such
      Certificate or any predecessor Certificate on the Closing Date.

     

    Institutional
      Accredited Investor:
      Any
      Person meeting the requirements of Rule 501(a)(l), (2), (3) or (7) of Regulation
      D under the Securities Act or any entity all of the equity holders in which
      come
      within such paragraphs.

     

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

     

    Insurance
      Proceeds:
      Proceeds paid in respect of the Mortgage Loans pursuant to any Insurance Policy
      and any other insurance policy covering a Mortgage Loan, to the extent such
      proceeds are payable to the mortgagee under the Mortgage, the Company, the
      related Servicer or the trustee under the deed of trust and are not applied
      to
      the restoration of the related Mortgaged Property or released to the Mortgagor
      in accordance with the procedures that the Company or the related Servicer
      would
      follow in servicing mortgage loans held for its own account, in each case other
      than any amount included in such Insurance Proceeds in respect of Insured
      Expenses.

     

    Insured
      Expenses:
      Expenses covered by any insurance policy with respect to the Mortgage
      Loans.

     

    Interest
      Carry Forward Amount:
      As of
      any Distribution Date and with respect to each Class of Certificates (other
      than
      the Class C Certificates and the Residual Certificates), the sum of (i) the
      excess of (a) the Current Interest for such Class with respect to such
      Distribution Date and any prior Distribution Dates over (b) the amount actually
      distributed to such Class of Certificates with respect to interest on such
      Distribution Dates and (ii) interest thereon (to the extent permitted by
      applicable law) at the applicable Pass-Through Rate for such Class for the
      related Accrual Period including the Accrual Period relating to such
      Distribution Date.

     

    Interest
      Determination Date:
      Shall
      mean the second LIBOR Business Day preceding the commencement of each Accrual
      Period.

     

    Interest
      Funds:
      With
      respect to any Distribution Date (1) the sum, without duplication, of (a) all
      scheduled interest during the related Due Period with respect to the Mortgage
      Loans less the Servicing Fee and the Master Servicing Fee, if any, (b) all
      Advances relating to interest with respect to the related Mortgage Loans made
      on
      or prior to the related Distribution Account Deposit Date, (c) all Compensating
      Interest with respect to the Mortgage Loans and required to be remitted by
      the
      related Servicer or the Master Servicer pursuant to this Agreement with respect
      to such Distribution Date, (d) Liquidation Proceeds and Subsequent Recoveries
      with respect to the related Mortgage Loans collected during the related
      Prepayment Period (to the extent such Liquidation Proceeds and Subsequent
      Recoveries relate to interest), (e) all amounts relating to interest with
      respect to each Mortgage Loan repurchased by EMC pursuant to Sections 2.02
      and
      2.03 and by EMC pursuant to Section 3.05, in each case to the extent remitted
      by
      the Master Servicer to the Distribution Account pursuant to this Agreement
      and
      (f) the interest portion of any proceeds received from the exercise of a
      Optional Termination, minus (2)(i) all amounts relating to interest required
      to
      be reimbursed pursuant to Sections 5.02 and 5.09 or as otherwise set forth
      in
      this Agreement and (ii) any Net Swap Payment or Swap Termination Payment (not
      due to a Swap Provider Trigger Event and to the extent not paid by the Swap
      Administrator from any upfront payment received pursuant to any replacement
      interest rate swap agreement that may be entered into by the Supplemental
      Interest Trust Trustee) owed to the Swap Administrator for payment to the Swap
      Provider for such Distribution Date and any such payments remaining unpaid
      for
      any prior Distribution Dates.

     

    Interim
      Certification:
      The
      certification by a Custodian substantially in the form of Exhibit Two to the
      related Custodial Agreement.

    

      Issuing
        Entity:
        The
        Trust designated as SACO I Trust 2006-9.

       

    

    LaSalle:
      LaSalle
      Bank National Association, and any successor in interest.

     

    LaSalle
      Custodial Agreement:
      The
      Custodial Agreement, dated as of August 30, 2006, among the Depositor, EMC,
      as
      Seller, the Master Servicer, the Securities Administrator, the Trustee and
      LaSalle as Custodian relating to the Mortgage Loans identified in such Custodial
      Agreement.

     

    Last
      Scheduled Distribution Date:
      Solely
      for purposes of the face of the Certificates, the Distribution Date in August
      2036. 

     

    Latest
      Possible Maturity Date:
      The
      Distribution Date in the month following the final scheduled maturity date
      of
      the Mortgage Loan in the Trust Fund having the latest scheduled maturity date
      as
      of the Cut-off Date. For purposes of the Treasury regulations under Sections
      860A through 860G of the Code, the latest possible maturity date of each Regular
      Interest issued by REMIC I, REMIC II, REMIC III, REMIC IV and REMIC V shall
      be
      the Latest Possible Maturity Date.

     

    LIBOR
      Business Day:
      Shall
      mean a day on which banks are open for dealing in foreign currency and exchange
      in London and New York City.

     

    Liquidated
      Loan:
      With
      respect to any Distribution Date, a defaulted Mortgage Loan that has been
      liquidated through deed-in-lieu of foreclosure, foreclosure sale, trustee’s sale
      or other realization as provided by applicable law governing the real property
      subject to the related Mortgage and any security agreements and as to which
      the
      Company or the related Servicer has made a Final Recovery Determination with
      respect thereto.

     

    Liquidation
      Proceeds:
      Amounts, other than Insurance Proceeds, received in connection with the partial
      or complete liquidation of a Mortgage Loan, whether through trustee’s sale,
      foreclosure sale or otherwise, or in connection with any condemnation or partial
      release of a Mortgaged Property and any other proceeds received with respect
      to
      an REO Property, less the sum of related unreimbursed Advances, Servicing Fees
      and Servicing Advances and all expenses of liquidation, including property
      protection expenses and foreclosure and sale costs, including court and
      reasonable attorneys fees.

     

    Majority
      Class C Certificateholder:
      The
      Holder of a 50.01% or greater Percentage Interest in the Class C
      Certificates.

     

    Marker
      Rate:
      With
      respect to the Class C Interest and any Distribution Date, a per annum rate
      equal to two (2) times the weighted average of the Uncertificated REMIC II
      Pass-Through Rates for the REMIC II Regular Interests (other than REMIC II
      Regular Interests AA and IO), with the rate on each such REMIC II Regular
      Interest (other than REMIC II Regular Interest ZZ) subject to a cap equal to
      the
      least of (i) the One-Month LIBOR Pass-Through Rate for the Corresponding
      Certificate, (ii) 11.00% per annum and (iii) the Net WAC Cap Rate for the REMIC
      III
      Regular
      Interest the ownership of which is represented by the Corresponding Certificate
      for the purpose of this calculation for such Distribution Date, and with the
      rate on REMIC II Regular Interest ZZ subject to a cap of zero for the purpose
      of
      this calculation; provided, however, that solely for this purpose, the related
      cap with respect to each REMIC II Regular Interest (other than REMIC II Regular
      Interests AA, ZZ and IO) shall be multiplied by a fraction, the numerator of
      which is 30 and the denominator of which is the actual number of days in the
      related Accrual Period.

     

    Master
      Servicer:
      LaSalle
      Bank National Association, in its capacity as master servicer, and its
      successors and assigns or any Successor Master Servicer appointed as herein
      provided.

     

    Master
      Servicer Collection Account:
      The
      trust accounts or accounts created and maintained pursuant to Section 5.06
      hereof, which shall be entitled “LaSalle Bank National Association, as master
      servicer, on behalf of Citibank, N.A., as Trustee f/b/o holders of SACO I Trust
      2006-9, Mortgage-Backed Certificates, Series 2006-9 - Master Servicer Collection
      Account”. The Master Servicer Collection Account may be a sub-account of the
      Distribution Account.

     

    Master
      Servicer Information:
      As
      defined in Section 3.18.

     

    Master
      Servicing Compensation:
      For any
      Distribution Date, the Master Servicing Fee for such Distribution
      Date.

     

    Master
      Servicing Fee:
      As to
      each Mortgage Loan and any Distribution Date, an amount equal to 1/12th of
      the
      Master Servicing Fee Rate multiplied by the Stated Principal Balance of such
      Mortgage Loan as of the Due Date in the month preceding the month in which
      such
      Distribution Date occurs.

     

    Master
      Servicing Fee Rate:
      0.0210%
      per annum.

     

    Master
      Servicing Officer:
      Any
      officer of the Master Servicer responsible for the master servicing of the
      Mortgage Loans.

     

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

     

    Maximum
      Uncertificated Accrued Interest Deferral Amount:
      With
      respect to any Distribution Date, the excess of (i) accrued interest at the
      Uncertificated REMIC II Pass-Through Rate applicable to REMIC II Regular
      Interest ZZ for such Distribution Date on a balance equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest ZZ minus the REMIC II
      Overcollateralization Amount, in each case for such Distribution Date, over
      (ii)
      the aggregate amount of Uncertificated Accrued Interest for such Distribution
      Date on the REMIC II Regular Interests (other than REMIC II Regular Interests
      AA, ZZ and IO), with the rate on each such REMIC II Regular Interest subject
      to
      a cap equal to the least of (x) the One-Month LIBOR Pass Through Rate for the
      Corresponding Certificate, (y) 11.00% per annum and (z) the Net WAC Cap Rate
      for
      the REMIC III Regular Interest the ownership of which is represented by the
      Corresponding Certificate for the purpose of this calculation for such
      Distribution Date; provided, however, that solely for this purpose, the related
      cap with respect to each REMIC II Regular Interest (other than REMIC II Regular
      Interests AA, ZZ and IO) shall be multiplied by a fraction, the numerator of
      which is 30 and the denominator of which is the actual number of days in the
      related Accrual Period.

     

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

     

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

     

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

     

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

     

    MOM
      Loan:
      With
      respect to any Mortgage Loan, MERS acting as the mortgagee of such Mortgage
      Loan, solely as nominee for the originator of such Mortgage Loan and its
      successors and assigns, at the origination thereof.

     

    Monthly
      Statement:
      The
      statement prepared and delivered by the Securities Administrator pursuant to
      Section 6.06.

     

    Moody’s:
      Moody’s
      Investors Service, Inc., and any successor thereto.

     

    Mortgage:
      The
      mortgage, deed of trust or other instrument creating a second lien on or second
      priority ownership interest in an estate in fee simple in real 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 delivered to the related Custodian
      to
      be added to the Mortgage File pursuant to this Agreement and the related
      Custodial Agreement.

     

    Mortgage
      Loan Purchase Agreement:
      The
      Mortgage Loan Purchase Agreement, dated as of August 30, 2006, between EMC
      as
      Seller and the Depositor as purchaser, in the form attached hereto as Exhibit
      L.

     

    Mortgage
      Loan Purchase Price:
      The
      price, calculated as set forth in Section 11.01, to be paid in connection with
      the repurchase of the Mortgage Loans pursuant to Section 11.01.

     

    Mortgage
      Loans:
      Such of
      the mortgage loans transferred and assigned to the Trustee pursuant to the
      provisions hereof, as from time to time are held as a part of the Trust Fund
      (including any REO Property), notwithstanding foreclosure or other acquisition
      of title of the related Mortgaged Property.

     

    Mortgage
      Loan Schedule:
      The
      list of Mortgage Loans (as from time to time amended by the Company or the
      Master Servicer to reflect the deletion of Deleted Mortgage Loans and the
      addition of Replacement Mortgage Loans pursuant to the provisions of this
      Agreement) transferred to the Trustee as part of the Trust Fund and from time
      to
      time subject to this Agreement, the Mortgage Loan Schedule being attached hereto
      as Exhibit B, with respect to the Mortgage Loans and as amended from time to
      time to reflect the repurchase or substitution of Mortgage Loans pursuant to
      this Agreement or the Mortgage Loan Purchase Agreement, as the case may be,
      setting forth the following information with respect to each Mortgage
      Loan:

     

    (a)  the
      city,
      state and zip code of the Mortgaged Property; 

    (b)  the
      property type;

    (c)  the
      Mortgage Interest Rate;

    (d)  the
      Servicing Fee Rate;

    (e)  the
      Master Servicer's Fee Rate;

    (f)  the
      LPMI
      Fee; if applicable;

    (g)  the
      Net
      Rate;

    (h)  the
      maturity date;

    (i)  the
      stated original term to maturity;

    (j)  the
      stated remaining term to maturity;

    (k)  the
      original Principal Balance;

    (l)  the
      first
      payment date;

    (m)  the
      principal and interest payment in effect as of the Cut-off Date;

    (n)  the
      unpaid Principal Balance as of the Cut-off Date;

    (o)  the
      Loan-to-Value Ratio at origination;

    (p)  the
      insurer of any Primary Mortgage Insurance Policy;

    (q)  the
      MIN
      with respect to each MOM Loan;

    (r)  the
      Gross
      Margin, if applicable;

    (s)  the
      next
      Adjustment Date, if applicable;

    (t)  the
      Maximum Mortgage Rate, if applicable;

    (u)  the
      Minimum Mortgage Rate, if applicable;

    (v)  the
      Periodic Rate Cap, if applicable; 

    (w)  the
      Loan
      Group, if applicable;

    (x)  a
      code
      indicating whether the Mortgage Loan is negatively amortizing;

    (y)  which
      Mortgage Loans adjust after an initial fixed-rate period of one, two, three,
      five, seven or ten years or any other period; 

    (z)  the
      Prepayment Charge, if any;

    (aa)  lien
      position (e.g., first lien or second lien);

    (bb)  a
      code
      indicating whether the Mortgage Loan is has a balloon payment;

    (cc)  a
      code
      indicating whether the Mortgage Loan is an interest-only loan; 

    (dd)  the
      interest-only term, if applicable;

    (ee)  the
      Mortgage Loan Seller; and

    (ff)  the
      original amortization term.

    

    Such
      schedule also shall set forth for all of the Mortgage Loans, the total number
      of
      Mortgage Loans, the total of each of the amounts described under (n) and (j)
      above, the weighted average by principal balance as of the Cut-off Date of
      each
      of the rates described under (c) through (h) above, and the weighted average
      remaining term to maturity by unpaid principal balance as of the Cut-off
      Date.

     

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

     

    Mortgage
      Rate:
      With
      respect to each fixed rate Mortgage Loan, the rate set forth in the related
      Mortgage Note. With respect to each Adjustable Rate Mortgage Loan, the annual
      rate at which interest accrues on such Mortgage Loan from time to time in
      accordance with the provisions of the related Mortgage Note, which rate (A)
      as
      of any date of determination until the first Adjustment Date following the
      Cut-off Date shall be the rate set forth in the Mortgage Loan Schedule as the
      Mortgage Rate in effect immediately following the Cut-off Date and (B) as of
      any
      date of determination thereafter shall be the rate as adjusted on the most
      recent Adjustment Date, to equal the sum, rounded to the next highest or nearest
      0.125% (as provided in the Mortgage Note), of the Index, determined as set
      forth
      in the related Mortgage Note, plus the related Gross Margin subject to the
      limitations set forth in the related Mortgage Note. With respect to each
      Mortgage Loan that becomes an REO Property, as of any date of determination,
      the
      annual rate determined in accordance with the immediately preceding sentence
      as
      of the date such Mortgage Loan became an REO Property.

     

    Mortgaged
      Property:
      The
      underlying property securing a Mortgage Loan.

     

    Mortgagor:
      The
      obligors on a Mortgage Note.

     

    Net
      Mortgage Rate:
      As to
      each Mortgage Loan, and at any time, the per annum rate equal to the related
      Mortgage Rate less the sum of (i) the Servicing Fee Rate and (ii) the Master
      Servicing Fee Rate.

     

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

     

    Net
      WAC Cap Rate:
      With
      respect to any Distribution Date and any Class of Class A, Class M or Class
      B
      Certificates, a per annum rate equal to the excess, if any, of (A) the weighted
      average of the Net Mortgage Rates on the then outstanding Mortgage Loans,
      weighted based on their Stated Principal Balances as of the related Due Date
      prior to giving effect to any reduction in the Stated Principal Balances of
      such
      Mortgage Loans on such Due Date, over (B) a per annum rate equal to the sum
      of
      the Net Swap Payment and Swap Termination Payment not due to a Swap Provider
      Trigger Event payable to the Swap Provider, in each case on such Distribution
      Date (to the extent not paid by the Supplemental Interest Trust from any upfront
      payment received pursuant to any replacement interest rate swap agreement that
      may be entered into by the Supplemental Interest Trust Trustee), divided by
      the
      outstanding
      Stated
      Principal Balance of the Mortgage Loans
      as of
      the related Due Date prior to giving effect to any reduction in the Stated
      Principal Balances of such Mortgage Loans on such due date, multiplied by
      12.
      The Net
      WAC Cap Rate for such Classes of Certificates will be will be calculated based
      on a 360-day year and the actual number of days elapsed in the related Accrual
      Period. With respect to any Distribution Date and each REMIC III Regular
      Interest the ownership of which is represented by a Class A, Class M or Class
      B
      Certificate, a per annum rate equal to the weighted average (adjusted for the
      actual number of days elapsed in the related Accrual Period) of the
      Uncertificated REMIC II Pass-Through Rates on the REMIC II Regular Interests
      (other than REMIC II Regular Interest IO), weighted on the basis of the
      Uncertificated Principal Balances of each such REMIC II Regular Interest
      immediately prior to such Distribution Date.

     

    Non-Book-Entry
      Certificate:
      Any
      Certificate other than a Book-Entry Certificate.

     

    Nonrecoverable
      Advance:
      Any
      portion of an Advance previously made or proposed to be made by the Company
      or
      the Master Servicer pursuant to this Agreement that, in the good faith judgment
      of the Company or the Master Servicer, will not or, in the case of a proposed
      advance, would not, be ultimately recoverable by it from the related Mortgagor,
      related Liquidation Proceeds, Insurance Proceeds or otherwise.

     

    Notional
      Amount:
      With
      respect to each Distribution Date and the Swap Agreement, the notional amount
      for the related calculation period as set forth in the related schedule set
      forth in Exhibit N.

     

    Offered
      Certificates:
      Any of
      the Class A, Class M, Class B-1, Class B-2 and Class B-3
      Certificates.

     

    Officer’s
      Certificate:
      A
      certificate (i) signed by the Chairman of the Board, the Vice Chairman of the
      Board, the President, a Vice President (however denominated), an Assistant
      Vice
      President, the Treasurer, the Secretary, or one of the assistant treasurers
      or
      assistant secretaries of the Depositor, the Seller or the Master Servicer (or
      any other officer customarily performing functions similar to those performed
      by
      any of the above designated officers and also to whom, with respect to a
      particular matter, such matter is referred because of such officer’s knowledge
      of and familiarity with a particular subject) or (ii), if provided for in this
      Agreement, signed by a Servicing Officer, as the case may be, and delivered
      to
      the Depositor, the Seller, the Securities Administrator, the Master Servicer
      and/or the Trustee, as the case may be, as required by this
      Agreement.

     

    One-Month
      LIBOR:
      With
      respect to any Accrual Period, the rate determined by the Securities
      Administrator on the related Interest Determination Date on the basis of the
      rate for U.S. dollar deposits for one month that appears on Telerate Screen
      Page
      3750 as of 11:00 a.m. (London time) on such Interest Determination Date. If
      such
      rate does not appear on such page (or such other page as may replace that page
      on that service, or if such service is no longer offered, such other service
      for
      displaying One-Month LIBOR or comparable rates as may be reasonably selected
      by
      the Securities Administrator), One-Month LIBOR for the applicable Accrual Period
      will be the Reference Bank Rate. If no such quotations can be obtained by the
      Securities Administrator and no Reference Bank Rate is available, One-Month
      LIBOR will be One-Month LIBOR applicable to the preceding Accrual Period. The
      establishment of One-Month LIBOR on each Interest Determination Date by the
      Securities Administrator and the Securities Administrator’s calculation of the
      rate of interest applicable to the Class A, Class M and Class B Certificates
      for
      the related Accrual Period shall, in the absence of manifest error, be final
      and
      binding.

     

    One-Month
      LIBOR Pass-Through Rate:
      With
      respect to each Class A, Class M and Class B Certificate and, for purposes
      of
      the definitions of “Marker Rate”, “Maximum Uncertificated Accrued Interest
      Deferral Amount”, the related REMIC III Regular Interest for which such
      Certificate is the Corresponding Certificate, a per annum rate equal to
      One-Month LIBOR plus the related Certificate Margin.

     

    Opinion
      of Counsel:
      A
      written opinion of counsel, who may be counsel for EMC, the Depositor, the
      Company or the Master Servicer, reasonably acceptable to each addressee of
      such
      opinion; provided that with respect to Section 2.05, 8.05, 8.07 or 12.01, or
      the
      interpretation or application of the REMIC Provisions, such counsel must (i)
      in
      fact be independent of EMC, Depositor, the Company and the Master Servicer,
      (ii)
      not have any direct financial interest in EMC, the Depositor, the Company or
      the
      Master Servicer or in any affiliate of either, and (iii) not be connected with
      EMC, the Depositor, the Company or the Master Servicer as an officer, employee,
      promoter, underwriter, trustee, partner, director or person performing similar
      functions.

     

    Optional
      Termination:
      The
      termination of the Trust created hereunder as a result of the purchase of all
      of
      the Mortgage Loans and any REO Property pursuant to Section 11.01
      hereof.

     

    
      Optional
        Termination Date:
        The
        Distribution Date on which the aggregate Stated Principal Balance of all
        of the
        Mortgage Loans is equal to or less than 20% of the aggregate Stated Principal
        Balance of all of the Mortgage Loans as of the Cut-off Date.

       

    

    Original
      Value:
      The
      value of the property underlying a Mortgage Loan based, in the case of the
      purchase of the underlying Mortgaged Property, on the lower of an appraisal
      or
      the sales price of such property or, in the case of a refinancing, on an
      appraisal.

     

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

     

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

     

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

     

    Outstanding
      Mortgage Loan:
      As of
      any date of determination, a Mortgage Loan with a Stated Principal Balance
      greater than zero that was not the subject of a Principal Prepayment in full,
      and that did not become a Liquidated Loan, prior to the end of the related
      Prepayment Period.

     

    Overcollateralization
      Amount:
      With
      respect to any Distribution Date, the excess, if any, of the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after
      giving effect to scheduled payments of principal due during the related Due
      Period, to the extent received or advanced, and unscheduled collections of
      principal received during the related Prepayment Period, and after reduction
      for
      Realized Losses incurred during the related Due Period) over
      the
      aggregate Certificate Principal Balance of the Certificates (other than the
      Class C Certificates) on such Distribution Date (after taking into account
      the
      payment of principal other than any Extra Principal Distribution Amount on
      such
      Certificates).

     

    Overcollateralization
      Floor:
      With
      respect to the Certificates, an amount equal to 0.50% of the aggregate Stated
      Principal Balance of the Mortgage Loans as of the Cut-off Date.

     

    Overcollateralization
      Release Amount:
      With
      respect to any Distribution Date, the lesser of (x) the Principal Funds for
      such
      Distribution Date and (y) the excess, if any, of (i) the Overcollateralization
      Amount for such Distribution Date (assuming that 100% of the Principal Funds
      is
      applied as a principal payment on such Distribution Date) over (ii) the
      Overcollateralization Target Amount for such Distribution Date (with the amount
      pursuant to clause (y) deemed to be $0 if the Overcollateralization Amount
      is
      less than or equal to the Overcollateralization Target Amount on that
      Distribution Date).

     

    Overcollateralization
      Target Amount:
      With
      respect to any Distribution Date (a) prior to the Stepdown Date, 5.00% of the
      aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
      Date,
      (b) on or after the Stepdown Date and if a Trigger Event is not in effect,
      the
      greater of (i) the lesser of (1) 5.00% of the aggregate Stated Principal Balance
      of the Mortgage Loans as of the Cut-off Date and (2) 10.00% of the then current
      aggregate Stated Principal Balance of the Mortgage Loans as of the last day
      of
      the related Due Period (after giving effect to scheduled payments of principal
      due during the related Due Period, to the extent received or advanced, and
      unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the related
      Due
      Period) and (ii) the Overcollateralization Floor or (c) on or after the Stepdown
      Date and if a Trigger Event is in effect, the Overcollateralization Target
      Amount for the immediately preceding Distribution Date.

     

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

     

    Pass-Through
      Rate:
      With
      respect to the Class A, Class M and Class B Certificates and any Distribution
      Date, a rate per annum equal to the least of (i) the related One-Month LIBOR
      Pass-Through Rate for such Distribution Date, (ii) 11.00% per annum and (iii)
      the Net WAC Cap Rate for such Distribution Date. 

     

    With
      respect to the Class C Interest and any Distribution Date, a rate per annum
      equal to the percentage equivalent of a fraction, the numerator of which is
      the
      sum of the amount determined for each REMIC II Regular Interest (other than
      REMIC II Regular Interest IO) equal to the product of (a) the excess, if any,
      of
      the Uncertificated REMIC II Pass-Through Rate for such REMIC II Regular Interest
      over the Marker Rate and (b) a notional amount equal to the Uncertificated
      Principal Balance of such REMIC II Regular Interest, and the denominator of
      which is the aggregate Uncertificated Principal Balance of such REMIC II Regular
      Interests.

     

    With
      respect to the Class C Certificate, the Class C Certificate shall not have
      a
      Pass-Through Rate, but Current Interest for such Certificate and each
      Distribution Date shall be an amount equal to 100% of the amounts distributable
      to the Class C Interest for such Distribution Date.

     

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

     

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

     

    Pass-Through
      Transfer:
      Any
      transaction involving either (1) a sale or other transfer of mortgage loans
      directly or indirectly to an issuing entity in connection with an issuance
      of
      publicly offered or privately placed, rated or unrated mortgage-backed
      securities or (2) an issuance of publicly offered or privately placed, rated
      or
      unrated securities, the payments on which are determined primarily by reference
      to one or more portfolios of residential mortgage loans.

     

    Percentage
      Interest:
      With
      respect to any Certificate of a specified Class, the Percentage Interest set
      forth on the face thereof or the percentage obtained by dividing the
      Denomination of such Certificate by the aggregate of the Denominations of all
      Certificates of such Class.

     

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

     

    Permitted
      Investments:
      At any
      time, any one or more of the following obligations and securities:

     

    (i)  obligations
      of the United States or any agency thereof, provided such obligations are backed
      by the full faith and credit of the United States;

     

    (ii)  general
      obligations of or obligations guaranteed by any state of the United States
      or
      the District of Columbia receiving the highest long-term debt rating of each
      Rating Agency, or such lower rating as will not result in the downgrading or
      withdrawal of the ratings then assigned to the Certificates by each Rating
      Agency, as evidenced in writing;

     

    (iii)  commercial
      or finance company paper which is then receiving the highest commercial or
      finance company paper rating of each Rating Agency, or such lower rating as
      will
      not result in the downgrading or withdrawal of the ratings then assigned to
      the
      Certificates by each Rating Agency, as evidenced in writing;

     

    (iv)  certificates
      of deposit, demand or time deposits, or bankers’ acceptances issued by any
      depository institution or trust company incorporated under the laws of the
      United States or of any state thereof and subject to supervision and examination
      by federal and/or state banking authorities (including the Trustee, the Master
      Servicer and the Securities Administrator in its commercial banking capacity),
      provided that the commercial paper and/or long term unsecured debt obligations
      of such depository institution or trust company are then rated one of the two
      highest long-term and the highest short-term ratings of each Rating Agency
      for
      such securities, or such lower ratings as will not result in the downgrading
      or
      withdrawal of the rating then assigned to the Certificates by each Rating
      Agency, as evidenced in writing;

     

    (v)  guaranteed
      reinvestment agreements issued by any bank, insurance company or other
      corporation containing, at the time of the issuance of such agreements, such
      terms and conditions as will not result in the downgrading or withdrawal of
      the
      rating then assigned to the Certificates by each Rating Agency, as evidenced
      in
      writing;

     

    (vi)  repurchase
      obligations with respect to any security described in clauses (i) and (ii)
      above, in either case entered into with a depository institution or trust
      company (acting as principal) described in clause (v) above;

     

    (vii)  securities
      (other than stripped bonds, stripped coupons or instruments sold at a purchase
      price in excess of 115% of the face amount thereof) bearing interest or sold
      at
      a discount issued by any corporation incorporated under the laws of the United
      States or any state thereof which, at the time of such investment, have one
      of
      the two highest short term ratings of each Rating Agency (except if the Rating
      Agency is Moody’s, such rating shall be the highest commercial paper rating of
      Moody’s for any such securities), such lower rating as will not result in the
      downgrading or withdrawal of the rating then assigned to the Certificates by
      any
      Rating Agency, as evidenced by a signed writing delivered by each Rating
      Agency;

     

    (viii)  interests
      in any money market fund (including any such fund managed or advised by the
      Master Servicer and the Securities Administrator or any affiliate thereof)
      which
      at the date of acquisition of the interests in such fund and throughout the
      time
      such interests are held in such fund has the highest applicable short term
      rating by each Rating Agency rating such fund, such lower rating as will not
      result in the downgrading or withdrawal of the ratings then assigned to the
      Certificates by each Rating Agency, as evidenced in writing;

     

    (ix)  short
      term investment funds sponsored by any trust company or banking association
      incorporated under the laws of the United States or any state thereof (including
      any such fund managed or advised by the Trustee or the Master Servicer or the
      Securities Administrator or any affiliate thereof) which on the date of
      acquisition has been rated by each Rating Agency in their highest applicable
      rating category or such lower rating as will not result in the downgrading
      or
      withdrawal of the ratings then assigned to the Certificates by each Rating
      Agency, as evidenced in writing; and

     

    (x)  such
      other investments having a specified stated maturity and bearing interest or
      sold at a discount acceptable to each Rating Agency and will not result in
      the
      downgrading or withdrawal of the rating then assigned to the Certificates by
      each Rating Agency, as evidenced by a signed writing delivered by each Rating
      Agency;

     

    provided,
      that no such instrument shall be a Permitted Investment if such instrument
      (i)
      evidences the right to receive interest only payments with respect to the
      obligations underlying such instrument, (ii) is purchased at a premium or (iii)
      is purchased at a deep discount; provided further that no such instrument shall
      be a Permitted Investment (A) if such instrument evidences principal and
      interest payments derived from obligations underlying such instrument and the
      interest payments with respect to such instrument provide a yield to maturity
      of
      greater than 120% of the yield to maturity at par of such underlying
      obligations, or (B) if it may be redeemed at a price below the purchase price
      (the foregoing clause (B) not to apply to investments in units of money market
      funds pursuant to clause (viii) above); provided further that no amount
      beneficially owned by any REMIC may be invested in investments (other than
      money
      market funds) treated as equity interests for federal income tax purposes,
      unless the Securities Administrator shall receive an Opinion of Counsel, at
      the
      expense of the Securities Administrator, to the effect that such investment
      will
      not adversely affect the status of any such REMIC as a REMIC under the Code
      or
      result in the imposition of a tax on any such REMIC. Permitted Investments
      that
      are subject to prepayment or call may not be purchased at a price in excess
      of
      par.

     

    Permitted
      Transferee:
      Any
      person (x) other than (i) the United States, any State or political subdivision
      thereof, any possession of the United States or any agency or instrumentality
      of
      any of the foregoing, (ii) a foreign government, International Organization
      or
      any agency or instrumentality of either of the foregoing, (iii) an organization
      (except certain farmers’ cooperatives described in section 521 of the Code) that
      is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
      by section 511 of the Code on unrelated business taxable income) on any excess
      inclusions (as defined in section 860E(c)(1) of the Code) with respect to any
      Residual Certificate, (iv) rural electric and telephone cooperatives described
      in section 1381(a)(2)(C) of the Code or (v) an electing large partnership within
      the meaning of Section 775(a) of the Code, (y) that is a citizen or resident
      of
      the United States, a corporation, partnership (other than a partnership that
      has
      any direct or indirect foreign partners) or other entity (treated as a
      corporation or a partnership for federal income tax purposes), created or
      organized in or under the laws of the United States, any State thereof or the
      District of Columbia, an estate whose income from sources without the United
      States is includible in gross income for United States federal income tax
      purposes regardless of its connection with the conduct of a trade or business
      within the United States, or a trust if a court within the United States is
      able
      to exercise primary supervision over the administration of the trust and one
      or
      more United States persons have authority to control all substantial decisions
      of the trust or if it has a valid election in effect under applicable U.S.
      Treasury regulations to be treated as a United States person and (z) other
      than
      any other Person so designated by the Securities Administrator based upon an
      Opinion of Counsel addressed to the Securities Administrator and the Trustee
      (which shall not be an expense of the Trustee or the Securities Administrator)
      that states that the Transfer of an Ownership Interest in a Residual Certificate
      to such Person may cause REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V
      to
      fail to qualify as a REMIC at any time that any Certificates are Outstanding.
      The terms “United States,” “State” and “International Organization” shall have
      the meanings set forth in section 7701 of the Code or successor provisions.
      A
      corporation will not be treated as an instrumentality of the United States
      or of
      any State or political subdivision thereof for these purposes if all of its
      activities are subject to tax and, with the exception of Freddie Mac, a majority
      of its board of directors is not selected by such government unit.

     

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

     

    Piggyback
      Loan:
      A
      second lien Mortgage Loan originated by the same originator to the same borrower
      at the same time as the first lien Mortgage Loan, each secured by the same
      Mortgaged Property.

     

    Prepayment
      Assumption:
      A
      prepayment rate for the Mortgage Loans of 35% CPR. 

     

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

     

    Prepayment
      Charge Waiver Amount:
      Any
      amount paid by the Company to the Master Servicer in respect of a waived
      Prepayment Charge pursuant to Section 5.01(a) or by the related Servicer to
      the
      Master Servicer pursuant to the related Servicing Agreement.

     

    Prepayment
      Interest Excess:
      With
      respect to any Distribution Date, for each EMC Mortgage Loan that was the
      subject of a Principal Prepayment in full or in part during the portion of
      the
      related Prepayment Period occurring between the first day of the calendar month
      in which such Distribution Date occurs and the Determination Date of the
      calendar month in which such Distribution Date occurs, an amount equal to
      interest (to the extent received) at the applicable Net Mortgage Rate on the
      amount of such Principal Prepayment for the number of days commencing on the
      first day of the calendar month in which such Distribution Date occurs and
      ending on the last date through which interest is collected from the related
      Mortgagor.

     

    Prepayment
      Interest Shortfall:
      With
      respect to any Distribution Date, for each Mortgage Loan that was the subject
      of
      a partial Principal Prepayment, or a Principal Prepayment in full during the
      related Prepayment Period, or that became a Liquidated Loan during the prior
      calendar month, (other than a Principal Prepayment in full resulting from the
      purchase of a Mortgage Loan pursuant to Section 2.02, 2.03, 3.05 or 11.01
      hereof), the amount, if any, by which (i) one month’s interest at the applicable
      Net Mortgage Rate on the Stated Principal Balance of such Mortgage Loan
      immediately prior to such Principal Prepayment (or liquidation) or in the case
      of a partial Principal Prepayment on the amount of such prepayment (or
      liquidation proceeds) exceeds (ii) the amount of interest paid or collected
      in
      connection with such Principal Prepayment or such liquidation proceeds less
      the
      sum of (a) the Master Servicing Fee and (b) the Servicing Fee.

     

    Prepayment
      Period:
      As to
      any Distribution Date (except the first Distribution Date) and (i) each EMC
      Mortgage Loan, the period commencing on the 16th day of the month prior to
      the
      month in which the related Distribution Date occurs and ending on the 15th
      day
      of the month in which such Distribution Date occurs (as to the first
      Distribution Date and any EMC Mortgage Loan, the period commencing on
      the Cut-off Date and ending on the 15th day of the month in which such
      Distribution Date occurs) and (ii) any other Mortgage Loan, the period set
      forth
      in the related Servicing Agreement. 

     

    Principal
      Distribution Amount:
      With
      respect to any Distribution Date, an amount equal to (x) the sum of (1) the
      Principal Funds for such Distribution Date and (2) any Extra Principal
      Distribution Amount for such Distribution Date minus (y) the amount of any
      Overcollateralization Release Amount for such Distribution Date.

     

    Principal
      Funds:
      With
      respect to any Distribution Date, (1) the sum, without duplication, of (a)
      all
      scheduled principal collected during the related Due Period, (b) all Advances
      relating to principal made on or before the Distribution Account Deposit Date,
      (c) Principal Prepayments exclusive of prepayment charges or penalties collected
      during the related Prepayment Period, (d) the Stated Principal Balance of each
      Mortgage Loan that was repurchased by EMC pursuant to Sections 2.02, 2.03 and
      by
      EMC pursuant to Section 3.05, (e) the aggregate of all Substitution Adjustment
      Amounts for the related Determination Date in connection with the substitution
      of any Mortgage Loans pursuant to Section 2.03(d), (f) all Liquidation Proceeds
      and Subsequent Recoveries collected during the related Prepayment Period (to
      the
      extent such Liquidation Proceeds and Subsequent Recoveries relate to principal),
      in each case to the extent remitted by the Master Servicer to the Distribution
      Account pursuant to this Agreement and (g) the principal portion of any proceeds
      received from the exercise of a Optional Termination, pursuant to Section 11.01,
      minus (2)(i) all amounts required to be reimbursed pursuant to Sections 5.02
      and
      5.09 or as otherwise set forth in this Agreement and (ii) any Net Swap Payments
      or Swap Termination Payments (not due to a Swap Provider Trigger Event and
      to
      the extent not paid by the Swap Administrator from any upfront payment received
      pursuant to any replacement interest rate swap agreement that may be entered
      into by the Supplemental Interest Trust Trustee) owed to the Swap Administrator
      for payment to the Swap Provider for such Distribution Date and any such
      payments remaining unpaid for any prior Distribution Dates, in each case to
      the
      extent not paid from Interest Funds. 

     

    Principal
      Prepayment:
      Any
      Mortgagor payment or other recovery of (or proceeds with respect to) principal
      on a Mortgage Loan (including loans purchased or repurchased under Sections
      2.02, 2.03, 3.05 and 11.01 hereof) that is received in advance of its scheduled
      Due Date and is not accompanied by an amount as to interest representing
      scheduled interest due on any date or dates in any month or months subsequent
      to
      the month of prepayment. Partial Principal Prepayments shall be applied by
      the
      Company or the related Servicer, as appropriate, in accordance with the terms
      of
      the related Mortgage Note.

     

    Private
      Certificates:
      Any of
      the Class B-4, Class C and Residual Certificates.

     

    Prospectus
      Supplement:
      The
      Prospectus Supplement dated August 29, 2006 relating to the public offering
      of
      the Offered Certificates.

     

    Protected
      Account:
      Each
      account established with respect to receipts on the Mortgage Loans and REO
      Property in accordance with Section 5.01 hereof or by a Servicer in accordance
      with the related Servicing Agreement. Each Protected Account shall be an
      Eligible Account.

     

    PUD:
      A
      Planned Unit Development.

     

    Purchase
      Price:
      With
      respect to any Mortgage Loan (x) required to be repurchased by the Seller
      pursuant to Section 2.02 or 2.03 hereof or (y) that EMC has a right to purchase
      pursuant to Section 3.05 hereof, an amount equal to the sum of (i) 100% of
      the
      outstanding principal balance of the Mortgage Loan as of the date of such
      purchase (or if the related Mortgaged Property was acquired with respect
      thereto, 100% of the outstanding principal balance at the date of the
      acquisition), plus (ii) accrued interest thereon at the applicable Mortgage
      Rate
      through the first day of the month in which the Purchase Price is to be
      distributed to Certificateholders, reduced by any portion of the Servicing
      Fee,
      Servicing Advances and Advances payable to the purchaser of the Mortgage Loan
      plus and (iii) any costs and damages (if any) incurred by the Trust in
      connection with any violation of such Mortgage Loan of any anti-predatory
      lending laws.

     

    QIB:
      A
      Qualified Institutional Buyer as defined in Rule 144A promulgated under the
      Securities Act.

     

    Rating
      Agency:
      Each of
      S&P and Moody’s. If any such organization or its successor is no longer in
      existence, “Rating Agency” shall be a nationally recognized statistical rating
      organization, or other comparable Person, designated by the Depositor, notice
      of
      which designation shall be given to the Trustee and the Securities
      Administrator. References herein to a given rating category of each Rating
      Agency shall mean such rating category without giving effect to any
      modifiers.

     

    
      Realized
        Loss:
        With
        respect to each Mortgage Loan as to which a Final Recovery Determination
        has
        been made, an amount (not less than zero) equal to (i) the unpaid principal
        balance of such Mortgage Loan as of the commencement of the calendar month
        in
        which the Final Recovery Determination was made, plus (ii) accrued interest
        from
        the Due Date as to which interest was last paid by the Mortgagor through
        the end
        of the calendar month in which such Final Recovery Determination was made,
        calculated in the case of each calendar month during such period (A) at an
        annual rate equal to the annual rate at which interest was then accruing
        on such
        Mortgage Loan and (B) on a principal amount equal to the Stated Principal
        Balance of such Mortgage Loan as of the close of business on the Distribution
        Date during such calendar month, minus (iii) the proceeds, if any, received
        in
        respect of such Mortgage Loan during the calendar month in which such Final
        Recovery Determination was made, net of amounts that are payable therefrom
        to
        the Company pursuant to this Agreement or the related Servicer pursuant to
        the
        related Servicing Agreement. With respect to each Mortgage Loan which is
        the
        subject of a Servicing Modification, (a) (1) the amount by which the interest
        portion of a monthly payment or the principal balance of such Mortgage Loan
        was
        reduced or (2) the sum of any other amounts owing under the Mortgage Loan
        that
        were forgiven and that constitute Servicing Advances that are reimbursable
        to
        the related Servicer, and (b) any such amount with respect to a monthly payment
        that was or would have been due in the month immediately following the month
        in
        which a Principal Prepayment or the Purchase Price of such Mortgage Loan
        is
        received or is deemed to have been received and not paid due to a Servicing
        Modification.  In addition, to the extent the Company, the Servicer or the
        Master Servicer receives Subsequent Recoveries with respect to any Mortgage
        Loan, the amount of the Realized Loss with respect to that Mortgage Loan
        will be
        reduced to the extent such recoveries are distributed to any Class of
        Certificates or applied to increase the Excess Spread on any Distribution
        Date.

       

    

    With
      respect to any REO Property as to which a Final Recovery Determination has
      been
      made, an amount (not less than zero) equal to (i) the unpaid principal balance
      of the related Mortgage Loan as of the date of acquisition of such REO Property
      on behalf of REMIC I, plus (ii) accrued interest from the Due Date as to which
      interest was last paid by the Mortgagor in respect of the related Mortgage
      Loan
      through the end of the calendar month immediately preceding the calendar month
      in which such REO Property was acquired, calculated in the case of each calendar
      month during such period (A) at an annual rate equal to the annual rate at
      which
      interest was then accruing on the related Mortgage Loan and (B) on a principal
      amount equal to the Stated Principal Balance of the related Mortgage Loan as
      of
      the close of business on the Distribution Date during such calendar month,
      plus
      (iii) REO Imputed Interest for such REO Property for each calendar month
      commencing with the calendar month in which such REO Property was acquired
      and
      ending with the calendar month in which such Final Recovery Determination was
      made, minus (iv) the aggregate of all unreimbursed Advances and Servicing
      Advances.

     

    With
      respect to each Mortgage Loan which has become the subject of a Deficient
      Valuation, the difference between the principal balance of the Mortgage Loan
      outstanding immediately prior to such Deficient Valuation and the principal
      balance of the Mortgage Loan as reduced by the Deficient Valuation.

     

    With
      respect to each Mortgage Loan which has become the subject of a Debt Service
      Reduction, the portion, if any, of the reduction in each affected Monthly
      Payment attributable to a reduction in the Mortgage Rate imposed by a court
      of
      competent jurisdiction. Each such Realized Loss shall be deemed to have been
      incurred on the Due Date for each affected Monthly Payment.

     

    Record
      Date:
      With
      respect to any Distribution Date and the Certificates (other than the Class
      C
      Certificates and Residual Certificates), so long as such Classes of Certificates
      are Book-Entry Certificates, the Business Day preceding such Distribution Date,
      and otherwise, the close of business on the last Business Day of the month
      preceding the month in which such Distribution Date occurs. With respect to
      the
      Class C Certificates and Residual Certificates, so long as such classes of
      Certificates remain non Book-Entry Certificates, the close of business on the
      last Business Day of the month preceding the month in which such Distribution
      Date occurs.

     

    Reference
      Banks:
      Shall
      mean leading banks selected by the Securities Administrator and engaged in
      transactions in Eurodollar deposits in the international Eurocurrency market
      (i)
      with an established place of business in London, (ii) which have been designated
      as such by the Securities Administrator and (iii) which are not controlling,
      controlled by, or under common control with, the Depositor, the Seller or the
      Master Servicer.

     

    Reference
      Bank Rate:
      With
      respect to any Accrual Period shall mean the arithmetic mean, rounded upwards,
      if necessary, to the nearest whole multiple of 0.03125%, of the offered rates
      for United States dollar deposits for one month that are quoted by the Reference
      Banks as of 11:00 a.m., New York City time, on the related Interest
      Determination Date to prime banks in the London interbank market for a period
      of
      one month in an amount approximately equal to the aggregate Certificate
      Principal Balance of the Class A, Class M and Class B Certificates for such
      Accrual Period, provided that at least two such Reference Banks provide such
      rate. If fewer than two offered rates appear, the Reference Bank Rate will
      be
      the arithmetic mean, rounded upwards, if necessary, to the nearest whole
      multiple of 0.03125%, of the rates quoted by one or more major banks in New
      York
      City, selected by the Securities Administrator, as of 11:00 a.m., New York
      City
      time, on such date for loans in United States dollars to leading European banks
      for a period of one month in amounts approximately equal to the aggregate
      Certificate Principal Balance of the Class A, Class M and Class B Certificates
      for such Accrual Period.

     

    Regular
      Certificate:
      Any
      Certificate other than a Residual Certificate.

     

    Regular
      Interest:
      A
“regular interest” in a REMIC within the meaning of Section 860G(a)(1) of the
      Code.

     

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

     

    Relief
      Act:
      The
      Servicemembers Civil Relief Act, as amended, or similar state law.

     

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

     

    Remaining
      Excess Spread:
      With
      respect to any Distribution Date, the Excess Spread less any Extra Principal
      Distribution Amount, in each case for such Distribution Date.

     

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

     

    REMIC
      I:
      The
      segregated pool of assets described in the Preliminary Statement and Section
      6.07(a).

     

    REMIC
      I Regular Interest:
      Any of
      the separate non-certificated beneficial ownership interests in REMIC I issued
      hereunder and designated as a Regular Interest in REMIC I. Each REMIC I Regular
      Interest shall accrue interest at the related Uncertificated REMIC I
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto. The designations for the respective
      REMIC I Regular Interests are set forth in the Preliminary Statement hereto.
      The
      REMIC I Regular Interests consist of REMIC I Regular Interests I-1-A through
      REMIC I Regular Interest I-45-B, each as designated in the Preliminary Statement
      hereto.

     

    REMIC
      II:
      The
      segregated pool of assets described in the Preliminary Statement and Section
      6.07(a).

     

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

     

    REMIC
      II Interest Loss Allocation Amount:
      With
      respect to any Distribution Date, an amount (subject to adjustment based on
      the
      actual number of days elapsed in the respective Accrual Period) equal to (a)
      the
      product of (i) the aggregate Stated Principal Balance of the Mortgage Loans
      and
      the related REO Properties then outstanding and (ii) the Uncertificated REMIC
      II
      Pass-Through Rate for REMIC II Regular Interest AA minus the Marker Rate,
      divided by (b) 12.

     

    REMIC
      II Overcollateralization Amount:
      With
      respect to any date of determination, (i) 1.00% of the aggregate Uncertificated
      Principal Balance of the REMIC II Regular Interests (other than REMIC II Regular
      Interest I-IO) minus (ii) the aggregate Uncertificated Principal Balance of
      each
      REMIC II Regular Interest for which a Class A, Class M or Class B Certificate
      is
      a Corresponding Certificate, in each case as of such date of
      determination.

     

    REMIC
      II Principal Loss Allocation Amount:
      With
      respect to any Distribution Date, an amount equal to the product of (i) the
      aggregate Stated Principal Balance of the Mortgage Loans and the related REO
      Properties then outstanding and (ii) 1 minus a fraction, the numerator of which
      is two (2) times the aggregate Uncertificated Principal Balance of each REMIC
      II
      Regular Interest for which a Class A, Class M or Class B Certificate is a
      Corresponding Certificate and the denominator of which is the aggregate
      Uncertificated Principal Balance of each REMIC II Regular Interest for which
      a
      Class A, Class M or Class B Certificate is a Corresponding Certificate and
      REMIC
      II Regular Interest ZZ.

     

    REMIC
      II Required Overcollateralization Amount:
      1.00%
      of the Overcollateralization Target Amount.

     

    REMIC
      III:
      The
      segregated pool of assets described in the Preliminary Statement and Section
      6.07(a).

     

    REMIC
      III Regular Interest:
      The
      Class C Interest, Class IO Interest or any Regular Interest in REMIC III the
      ownership of which is represented by any of the Class A, Class M and Class
      B
      Certificates.

     

    REMIC
      IV:
      The
      segregated pool of assets consisting of the Class C Interest conveyed in trust
      to the Trustee, for the benefit of the Holders of the Class C Certificates
      and
      the Class RX Certificate (in respect of the Class R-4 Interest), with respect
      to
      which a separate REMIC election is to be made.

     

    REMIC
      V:
      The
      segregated pool of assets consisting of the Class IO Interest conveyed in trust
      to the Trustee, for the benefit of the holders of REMIC V Regular Interest
      IO
      and the Class RX Certificate (in respect of the Class R-5 Interest), with
      respect to which a separate REMIC election is to be made.

     

    REMIC
      Opinion:
      Shall
      mean an Opinion of Counsel to the effect that the proposed action will not
      cause
      any of REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V to fail to qualify
      as a
      REMIC at any time that any Certificates are outstanding.

     

    REMIC
      Provisions:
      Provisions of the federal income tax law relating to real estate mortgage
      investment conduits, which appear at Sections 860A through 860G of the Code,
      and
      related provisions, and proposed, temporary and final regulations and published
      rulings, notices and announcements promulgated thereunder, as the foregoing
      may
      be in effect from time to time, as well as provisions of applicable state
      laws.

     

    REMIC
      Regular Interests:
      The
      REMIC I Regular Interests and REMIC II Regular Interests.

     

    Remittance
      Date:
      Shall
      mean (i) with respect to the Company, the Distribution Account Deposit Date
      and
      (ii) with respect to each Servicer, other than the Company, each Business Day
      as
      specified in the related Servicing Agreement.

     

    Remittance
      Report:
      Shall
      mean a report to the Securities Administrator in an electronic format (or by
      such other means as the Master Servicer and the Securities Administrator may
      agree from time to time) containing such data and information, as agreed to
      by
      the Master Servicer and the Securities Administrator such as to permit the
      Securities Administrator to prepare the Monthly Statement to
      Certificateholders.

     

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

     

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

     

    Replacement
      Mortgage Loan:
      A
      Mortgage Loan or Mortgage Loans in the aggregate substituted by the Seller
      for a
      Deleted Mortgage Loan, which must, on the date of such substitution, as
      confirmed in a Request for Release, (i) have a Stated Principal Balance, after
      deduction of the principal portion of the Scheduled Payment due in the month
      of
      substitution, not in excess of, and not less than 90% of, the Stated Principal
      Balance of the Deleted Mortgage Loan; (ii) if the Replacement Mortgage Loan
      is a
      fixed rate Mortgage Loan, have a fixed Mortgage Rate not less than or more
      than
      1% per annum higher than the Mortgage Rate of the Deleted Mortgage Loan; (iii)
      have the same or higher credit quality characteristics than that of the Deleted
      Mortgage Loan; (iv) have a Combined Loan-to-Value Ratio no higher than that
      of
      the Deleted Mortgage Loan; (v) have a remaining term to maturity no greater
      than
      (and not more than one year less than) that of the Deleted Mortgage Loan; (vi)
      not permit conversion of the Mortgage Rate from a fixed rate to a variable
      rate;
      (vii) have the same lien priority as the Deleted Mortgage Loan; (viii)
      constitute the same occupancy type as the Deleted Mortgage Loan or be owner
      occupied; (ix) if the Replacement Mortgage Loan is an Adjustable Rate Mortgage
      Loan, have a Maximum Mortgage Rate not less than the Maximum Mortgage Rate
      on
      the Deleted Mortgage Loan, (x) if the Replacement Mortgage Loan is an Adjustable
      Rate Mortgage Loan, have a Minimum Mortgage Rate not less than the Minimum
      Mortgage Rate of the Deleted Mortgage Loan, (xi) if the Replacement Mortgage
      Loan is an Adjustable Rate Mortgage Loan, have a Gross Margin equal to or
      greater than the Gross Margin of the Deleted Mortgage Loan, (xii) if the
      Replacement Mortgage Loan is an Adjustable Rate Mortgage Loan, have a next
      Adjustment Date not more than two months later than the next Adjustment Date
      on
      the Deleted Mortgage Loan, (xiii) comply with each representation and warranty
      set forth in Section 7 of the Mortgage Loan Purchase Agreement and (xiv) the
      Custodian has delivered a Final Certification noting no defects or
      exceptions.

     

    Reportable
      Event:
      The
      meaning set forth in Section 3.18(a)(iii).

     

    Repurchase
      Price:
      With
      respect to each Mortgage Loan, a price equal to (i) the outstanding principal
      balance of such Mortgage Loan, plus (ii) interest on such outstanding principal
      balance at the Mortgage Rate (net of the Servicing Fee Rate) from the last
      date
      through which interest has been paid to the end of the month of repurchase,
      less
      (iii) amounts advanced by the Company, the Servicer or the Master Servicer
      in
      respect of such repurchased Mortgage Loan which are being held in the Master
      Servicer Collection Account for remittance to the Securities Administrator
      plus
      (iv) any costs and damages (if any) incurred by the Trust in connection with
      any
      violation of such Mortgage Loan of any anti-predatory lending laws.

     

    Request
      for Release:
      The
      Request for Release to be submitted by the Seller, the Company, the Servicer
      or
      the Master Servicer to the respective Custodian substantially in the form of
      Exhibit G hereto or other form attached as an exhibit to the related Custodial
      Agreement. Each Request for Release furnished to the respective Custodian by
      the
      Seller, the Company, the Servicer or the Master Servicer shall be in duplicate
      and shall be executed by an officer of such Person or a Servicing Officer (or,
      if furnished electronically to the respective Custodian, shall be deemed to
      have
      been sent and executed by an officer of such Person or a Servicing Officer)
      of
      the Seller, the Company, the Servicer or the Master Servicer, as
      applicable.

     

    Required
      Insurance Policy:
      With
      respect to any Mortgage Loan, any insurance policy that is required to be
      maintained from time to time under this Agreement or the Servicing
      Agreements.

     

    Reserve
      Fund:
      Shall
      mean the separate trust account created and maintained by the Securities
      Administrator pursuant to Section 4.14 hereof.

     

    Reserve
      Fund Deposit:
      With
      respect to the Reserve Fund, an amount equal to $5,000, which the Depositor
      shall initially deposit into the Reserve Fund pursuant to Section 4.14
      hereof.

    

     

    Residual
      Certificates:
      The
      Class R-1, Class R-2, Class R-3 and Class RX Certificates (representing
      ownership of the Class R-4 Interest and Class R-5 Interest), each evidencing
      the
      sole class of Residual Interests in the related REMIC.

     

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

     

    Responsible
      Officer:
      With
      respect to the Trustee and the Securities Administrator, any Vice President,
      any
      Assistant Vice President, the Secretary, any Assistant Secretary, or any Trust
      Officer in its respective Corporate Trust Office with specific responsibility
      for the transactions contemplated hereby, any other officer customarily
      performing functions similar to those performed by any of the above designated
      officers or other officers of the Trustee or the Securities Administrator as
      specified by the Trustee or the Securities Administrator, respectively, as
      to
      whom, with respect to a particular matter, such matter is referred because
      of
      such officer’s knowledge of and familiarity with the particular
      subject.

     

    S&P:
      Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and any
      successor thereto.

     

    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:
      The
      meaning set forth in Section 3.18(a)(iv).

     

    Scheduled
      Payment:
      The
      scheduled monthly payment on a Mortgage Loan due on any Due Date allocable
      to
      principal and/or interest on such Mortgage Loan.

     

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

     

    Securities
      Administrator:
      LaSalle
      Bank National Association, in its capacity as securities administrator
      hereunder, and its successors and assigns.

     

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

     

    Seller:
      EMC in
      its capacity as seller of the Mortgage Loans to the Depositor.

     

    Senior
      Certificates:
      The
      Class A Certificates.

     

    Servicer:
      Any of
      EMC, First Horizon, HomeBanc and GMACM.

     

    Servic(es)(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. For
      clarification purposes, any uncapitalized occurrence of this term shall have
      the
      meaning commonly understood by participants in the residential mortgage-backed
      securitization market.

     

    Servicing
      Advances:
      All
      customary, reasonable and necessary “out of pocket” costs and expenses
      (including reasonable legal fees) incurred in the performance by the Servicers
      or the Company of their servicing obligations hereunder or under the related
      Servicing Agreement, including, but not limited to, the cost of (i) the
      preservation, restoration and protection of a Mortgaged Property, (ii) any
      enforcement or judicial proceedings, including foreclosures, and including
      any
      expenses incurred in relation to any such proceedings that result from the
      Mortgage Loan being registered in the MERS® System, (iii) the management and
      liquidation of any REO Property (including, without limitation, realtor’s
      commissions) and (iv) compliance with any obligations under Section 3.07 hereof
      to cause insurance to be maintained.

     

    Servicing
      Agreement:
      Any of
      the First Horizon Servicing Agreement, the GMACM Servicing Agreement or the
      HomeBanc Servicing Agreement.

     

    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:
      As to
      each EMC Mortgage Loan and any Distribution Date, an amount equal to
      1/12th
      of the
      Servicing Fee Rate multiplied by the Stated Principal Balance of such EMC
      Mortgage Loan payable solely from interest collections as of the Due Date in
      the
      month preceding the month in which such Distribution Date occurs. As to each
      Mortgage Loan serviced by the Servicer and any Distribution Date, an amount
      equal to 1/12th
      of the
      Servicing Fee multiplied by the unpaid principal balance of each such mortgage
      loan payable solely from interest collections, as of the Due Date in the month
      preceding the month in which such Distribution Date occurs.

     

    Servicing
      Fee Rate:
      0.5000%
      per annum.

    

      Servicing
        Modification:
        With
        respect to any Mortgage Loan that is in default or, in the reasonable judgment
        of the related Servicer, as to which default is reasonably foreseeable, any
        modification which is effected by the related Servicer in accordance with
        the
        terms of this Agreement or the related Servicing Agreement which results
        in any
        change in the outstanding Stated Principal Balance, any change in the Mortgage
        Rate or any extension of the term of such Mortgage Loan.

       

      Servicing
        Officer:
        Any
        officer of the Company or the related Servicer involved in, or responsible
        for,
        the administration and servicing of the Mortgage Loans (i) in the case of
        the
        Company, whose name and facsimile signature appear on a list of servicing
        officers furnished to the Master Servicer by the Company on the Closing Date
        pursuant to this Agreement, as such list may from time to time be amended
        and
        (ii) in the case of the Servicer, as to which evidence reasonably acceptable
        to
        the Master Servicer, as applicable, of due authorization, by such party has
        been
        furnished from time to time to the Master Servicer.

    

     

    Significance
      Estimate:
      With
      respect to any Distribution Date, and in accordance with Item 1115 of Regulation
      AB, shall be an amount determined based on the reasonable good-faith estimate
      by
      the Seller or its affiliate of the aggregate maximum probable exposure of the
      outstanding Class A, Class M and Class B Certificates to the Swap Agreement.
      

     

    Significance
      Percentage:
      With
      respect to any Distribution Date, and in accordance with Item 1115 of Regulation
      AB, shall be a percentage equal to the Significance Estimate divided by the
      aggregate outstanding Certificate Principal Balance of the Class A, Class M
      and
      Class B Certificates, prior to the distribution of the Principal Distribution
      Amount on such Distribution Date.

     

    Sixty-Day
      Plus Delinquency Percentage:
      With
      respect to any Distribution Date, is the arithmetic average for each of the
      three successive Distribution Dates ending with the applicable Distribution
      Date
      of the percentage equivalent of a fraction, the numerator of which is the
      aggregate Stated Principal Balance of the Mortgage Loans that are 60 or more
      days delinquent in the payment of principal or interest for the relevant
      Distribution Date, including any Mortgage Loans in foreclosure, REO and Mortgage
      Loans with a related Mortgagor subject to bankruptcy proceedings, and the
      denominator of which is the aggregate Stated Principal Balance of all of the
      Mortgage Loans immediately preceding such Distribution Date.

     

    Seller:
      EMC.

     

    Sponsor:
      EMC
      Mortgage Corporation, in its capacity as sponsor hereunder.

     

    Startup
      Day:
      The
      Startup Day for each REMIC formed hereunder shall be the Closing
      Date.

     

    Stated
      Principal Balance:
      With
      respect to any Mortgage Loan or related REO Property and any Distribution Date,
      the Cut-off Date Principal Balance thereof minus the sum of (i) the principal
      portion of the Scheduled Payments due with respect to such Mortgage Loan during
      each Due Period ending prior to such Distribution Date (and irrespective of
      any
      delinquency in their payment), (ii) all Principal Prepayments with respect
      to
      such Mortgage Loan received prior to or during the related Prepayment Period,
      and all Liquidation Proceeds to the extent applied by the Company or the related
      Servicer as recoveries of principal in accordance with Section 3.12 or the
      related Servicing Agreement with respect to such Mortgage Loan, that were
      received by the Company or the related Servicer as of the close of business
      on
      the last day of the calendar month immediately preceding such Distribution
      Date
      and (iii) any Realized Losses on such Mortgage Loan incurred during the related
      Due Period. The Stated Principal Balance of a Liquidated Loan equals
      zero.

     

    Stepdown
      Date:
      The
      earlier to occur of, (I) the first Distribution Date following the Distribution
      Date for which the Certificate Principal Balance for each of the Class A
      Certificates has been reduced to zero, and (II) the later to occur of (a)
the
      Distribution Date in September 2009 or (b) the first Distribution Date on
      which the Current Specified Enhancement Percentage is greater than or equal
      to
      48.10%.

     

    Subordinated
      Certificates:
      The
      Class M, Class B, Class C and Residual Certificates.

     

    Subsequent
      Recoveries:
      As of
      any Distribution Date, amounts received by the Master Servicer (net of any
      related expenses permitted to be reimbursed pursuant to Section 5.02) or surplus
      amounts held by the Master Servicer, Company and the related Servicer to cover
      estimated expenses (including, but not limited to, recoveries in respect of
      the
      representations and warranties made by EMC pursuant to the Mortgage Loan
      Purchase Agreement) specifically related to a Mortgage Loan that was the subject
      of a liquidation or final disposition of any REO Property prior to the related
      Prepayment Period that resulted in a Realized Loss.

     

    Subservicing
      Agreement:
      Any
      agreement entered into between the Company and a subservicer with respect to
      the
      subservicing of any Mortgage Loan hereunder by such subservicer.

     

    Substitution
      Adjustment Amount:
      The
      meaning ascribed to such term pursuant to Section 2.03(d).

     

    Successor
      Master Servicer:
      The
      meaning ascribed to such term pursuant to Section 8.06.

     

    Supplemental
      Interest Trust:
      The
      corpus of a trust created pursuant to Section 4.14 of this Agreement and
      designated as the “Supplemental Interest Trust,” consisting of the Swap
      Agreement, the Swap Administration Agreement, the Swap Account and REMIC V
      Regular Interest IO. For the avoidance of doubt, the Supplemental Interest
      Trust, the Swap Agreement, the Swap Account and the Swap Administration
      Agreement do not constitute parts of the Trust Fund or any REMIC.

     

    Supplemental
      Interest Trust Trustee:
      LaSalle
      not in its individual capacity but solely in its capacity as Supplemental
      Interest Trust Trustee and any successor thereto, and any corporation or
      national banking association resulting from or surviving any consolidation
      or
      merger to which it or its successors may be a party and any successor
      Supplemental Interest Trust Trustee as may from time to time be serving as
      successor Supplemental Interest Trust Trustee.

     

    Swap
      Account:
      The
      separate trust account created and maintained by the Swap Administrator, and
      held within the Supplemental Interest Trust, pursuant to the Swap Administration
      Agreement.

     

    Swap
      Administrator:
      LaSalle
      acting as swap administrator under the Swap Administration
      Agreement.

     

    Swap
      Administration Agreement:
      The
      Swap Administration Agreement, dated August 30, 2006, pursuant to which the
      Swap
      Administrator will make payments to the Swap Provider and the Class A, Class
      M
      and Class B Certificateholders, and certain other payments, as such agreement
      may be amended or supplemented from time to time.

     

    Swap
      Agreement:
      The
      interest rate swap agreement between the Swap Provider and Supplemental Interest
      Trust Trustee, acting as trustee on behalf of the Supplemental Interest Trust,
      together with any schedules, confirmations or other agreements relating thereto,
      attached hereto as Exhibit N.

     

    Swap
      LIBOR:
      For any
      Distribution Date, a per annum rate equal to the Floating Rate Option (as
      defined in the Swap Agreement) for the related Calculation Period (as defined
      in
      the Swap Agreement).

     

    Swap
      Optional Termination Payment:
      As
      defined in Section 11.01.

     

    Swap
      Provider:
      The
      swap provider under the Swap Agreement either (a) entitled to receive payments
      from the Swap Administrator from amounts payable by the Trust Fund under this
      Agreement or (b) required to make payments to the Swap Administrator
      distribution as provided herin, in either case pursuant to the terms of the
      Swap
      Agreement, and any successor in interest or assign. Initially, the Swap Provider
      shall be Wachovia Bank, N.A.

     

    Swap
      Provider Trigger Event:
      With
      respect to any Distribution Date, (i) an Event of Default under the Swap
      Agreement with respect to which the Swap Provider is a Defaulting Party, (ii)
      a
      Termination Event under the Swap Agreement with respect to which the Swap
      Provider is the sole Affected Party, or (iii) an Additional Termination Event
      under the Swap Agreement with respect to which the Swap Provider is the sole
      Affected Party.

     

    Swap
      Termination Payment:
      Upon
      the designation of an “Early Termination Date” as defined in the Swap Agreement,
      the payment to be made by the Swap Administrator to the Swap Provider from
      payments from the Trust Fund, or by the Swap Provider to the Swap Administrator
      for payment to the Trust Fund, as applicable, pursuant to the terms of the
      Swap
      Agreement.

     

    Tax
      Matters Person:
      The
      person designated as “tax matters person” in the manner provided under Treasury
      Regulation Sections 1.860F-4(d) and 301.6231(a)(7)-1T. The holder of the
      greatest Percentage Interest in a Class of Residual Certificates shall be the
      Tax Matters Person for the related REMIC. The Securities Administrator, or
      any
      successor thereto or assignee thereof, shall serve as tax administrator
      hereunder and as agent for the related Tax Matters Person.

     

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

     

    Transfer
      Affidavit:
      As
      defined in Section 7.02(c)(ii).

     

    Trigger
      Event:
      With
      respect to any Distribution Date, a “ Trigger Event” shall have occurred if any
      of the following tests is not satisfied: (i) the Sixty-Day Plus Delinquency
      Percentage is less than 16.63% of the Current Specified Enhancement Percentage,
      or (ii) (A) for any Distribution Date from and including the Distribution Date
      in September 2008 to and including the Distribution Date in August 2009, the
      Cumulative Realized Loss Percentage for such Distribution Date is less than
      2.10% plus an additional 1/12th of 2.40% for each Distribution Date thereafter
      up to and including the Distribution Date in August 2009, (B) for any
      Distribution Date from and including the Distribution Date in September 2009
      to
      and including the Distribution Date in August 2010, the Cumulative Realized
      Loss
      Percentage for such Distribution Date is less than 4.50% plus an additional
      1/12th of 1.75% for each Distribution Date thereafter up to and including the
      Distribution Date in August 2010, (C) for any Distribution Date from and
      including the Distribution Date in September 2010 to and including the
      Distribution Date in August 2011, the Cumulative Realized Loss Percentage for
      such Distribution Date is less than 6.25% plus an additional 1/12th of 1.25%
      for
      each Distribution Date thereafter up to and including the Distribution Date
      in
      August 2011, (D) for any Distribution Date from and including the Distribution
      Date in September 2011 to and including the Distribution Date in August 2012,
      the Cumulative Realized Loss Percentage for such Distribution Date is less
      than
      7.50% plus an additional 1/12th of 0.25% for each Distribution Date thereafter
      up to and including the Distribution Date in August 2012, and (E) for any
      Distribution Date thereafter, the Cumulative Realized Loss Percentage for such
      Distribution Date is less than 7.75%.

     

    Trust:
      As
      defined in Section 2.07.

     

    Trust
      Fund:
      The
      corpus of the trust created hereunder consisting of (i) the Mortgage Loans
      and
      all interest accruing and principal due with respect thereto after the Cut-off
      Date to the extent not applied in computing the Cut-off Date Principal Balance
      thereof; (ii) the Distribution Account, the Reserve Fund, the Master Servicer
      Collection Account maintained by the Master Servicer and the Protected Accounts
      maintained by the Company and the related Servicers and all amounts deposited
      therein pursuant to the applicable provisions of this Agreement and the
      Servicing Agreements; (iii) property that secured a Mortgage Loan and has been
      acquired by foreclosure, deed in lieu of foreclosure or otherwise; (iv) the
      mortgagee’s rights under the Insurance Policies with respect to the Mortgage
      Loans; (v) the Servicing Agreements and the Assignment Agreements; (vii) the
      rights under the Swap Administration Agreement; (viii) the rights under the
      Mortgage Loan Purchase Agreement; and (ix) all proceeds of the foregoing,
      including proceeds of conversion, voluntary or involuntary, of any of the
      foregoing into cash or other liquid property. The Reserve Fund shall constitute
      an asset of the Trust Fund but will not be included in REMIC I, REMIC II, REMIC
      III, REMIC IV or REMIC V.

     

    Trustee:
      Citibank, N.A., a national banking association, as trustee for the benefit
      of
      the Certificateholders under this Agreement, and any successor thereto, and
      any
      corporation or national banking association resulting from or surviving any
      consolidation or merger to which it or its successors may be a party and any
      successor trustee as may from time to time be serving as successor trustee
      hereunder.

     

    Uncertificated
      Accrued Interest:
      With
      respect to each REMIC Regular Interest on each Distribution Date, an amount
      equal to one month’s interest at the related Uncertificated Pass-Through Rate on
      the related Uncertificated Principal Balance or related Uncertificated Notional
      Amount of such REMIC Regular Interest. In each case, Uncertificated Accrued
      Interest will be reduced by any Prepayment Interest Shortfalls and Relief Act
      Interest Shortfalls (allocated to such REMIC Regular Interests as set forth
      in
      Section 1.02).

     

    Uncertificated
      Notional Amount:
      With
      respect to the Class C Interest and any Distribution Date, an amount equal
      to
      the aggregate Uncertificated Principal Balance of the REMIC II Regular Interests
      (other than REMIC II Regular Interest IO) for such Distribution
      Date.

     

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

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interests

            
	
              1

            	
              I-1-A
                through I-45-A

            
	
              2

            	
              I-2-A
                through I-45-A

            
	
              3

            	
              I-3-A
                through I-45-A

            
	
              4

            	
              I-4-A
                through I-45-A

            
	
              5

            	
              I-5-A
                through I-45-A

            
	
              6

            	
              I-6-A
                through I-45-A

            
	
              7

            	
              I-7-A
                through I-45-A

            
	
              8

            	
              I-8-A
                through I-45-A

            
	
              9

            	
              I-9-A
                through I-45-A

            
	
              10

            	
              I-10-A
                through I-45-A

            
	
              11

            	
              I-11-A
                through I-45-A

            
	
              12

            	
              I-12-A
                through I-45-A

            
	
              13

            	
              I-13-A
                through I-45-A

            
	
              14

            	
              I-14-A
                through I-45-A

            
	
              15

            	
              I-15-A
                through I-45-A

            
	
              16

            	
              I-16-A
                through I-45-A

            
	
              17

            	
              I-17-A
                through I-45-A

            
	
              18

            	
              I-18-A
                through I-45-A

            
	
              19

            	
              I-19-A
                through I-45-A

            
	
              20

            	
              I-20-A
                through I-45-A

            
	
              21

            	
              I-21-A
                through I-45-A

            
	
              22

            	
              I-22-A
                through I-45-A

            
	
              23

            	
              I-23-A
                through I-45-A

            
	
              24

            	
              I-24-A
                through I-45-A

            
	
              25

            	
              I-25-A
                through I-45-A

            
	
              26

            	
              I-26-A
                through I-45-A

            
	
              27

            	
              I-27-A
                through I-45-A

            
	
              28

            	
              I-28-A
                through I-45-A

            
	
              29

            	
              I-29-A
                through I-45-A

            
	
              30

            	
              I-30-A
                through I-45-A

            
	
              31

            	
              I-31-A
                through I-45-A

            
	
              32

            	
              I-32-A
                through I-45-A

            
	
              33

            	
              I-33-A
                through I-45-A

            
	
              34

            	
              I-34-A
                through I-45-A

            
	
              35

            	
              I-35-A
                through I-45-A

            
	
              36

            	
              I-36-A
                through I-45-A

            
	
              37

            	
              I-37-A
                through I-45-A

            
	
              38

            	
              I-38-A
                through I-45-A

            
	
              39

            	
              I-39-A
                through I-45-A

            
	
              40

            	
              I-40-A
                through I-45-A

            
	
              41

            	
              I-41-A
                through I-45-A

            
	
              42

            	
              I-42-A
                through I-45-A

            
	
              43

            	
              I-43-A
                through I-45-A

            
	
              44

            	
              I-44-A
                through I-45-A

            
	
              45

            	
              I-45-A

            
	
              thereafter

            	
              $0.00

            

    

    

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

     

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

     

    Uncertificated
      Principal Balance:
      The
      amount of REMIC Regular Interests and Class C Interest outstanding as of any
      date of determination. As of the Closing Date, the Uncertificated Principal
      Balance of each REMIC Regular Interest and Class C Interest shall equal the
      amount set forth in the Preliminary Statement hereto as its initial
      uncertificated principal balance. On each Distribution Date, the Uncertificated
      Principal Balance of the REMIC Regular Interests shall be reduced by all
      distributions of principal made on such REMIC Regular Interests on such
      Distribution Date pursuant to Section 6.07 and, if and to the extent necessary
      and appropriate, shall be further reduced on such Distribution Date by Realized
      Losses as provided in Section 6.05, and the Uncertificated Principal Balance
      of
      REMIC II Regular Interest ZZ shall be increased by interest deferrals as
      provided in Section 6.07(c)(1)(ii). The Uncertificated Principal Balance of
      each
      REMIC Regular Interest and Class C Interest shall never be less than zero.
      With
      respect to the Class C Interest as of any date of determination, an amount
      equal
      to the excess, if any, of (A) the then aggregate Uncertificated Principal
      Balance of the REMIC II Regular Interests over (B) the then aggregate
      Certificate Principal Balance of the Class A, Class M and Class B Certificates
      then outstanding.

     

    Uncertificated
      REMIC I Pass-Through Rate:
      With
      respect to each REMIC I Regular Interest ending with the designation “A” and any
      Distribution Date, a per annum rate equal to the weighted average Net Mortgage
      Rate of the Mortgage Loans multiplied by 2, subject to a maximum rate of
      10.530%. With respect to each REMIC I Regular Interest ending with the
      designation “B” and any Distribution Date, the greater of (x) a per annum rate
      equal to the excess, if any, of (1) 2 multiplied by the weighted average Net
      Mortgage Rate of the Mortgage Loans over (2) 10.530%, and (y) 0.00% per annum.
      

     

    Uncertificated
      REMIC II Pass-Through Rate:
      With
      respect to REMIC II Regular Interest AA, each REMIC II Regular Interest for
      which a Class A, Class M or Class B Certificate is the Corresponding Certificate
      and REMIC II Regular Interest ZZ, and any Distribution Date, a per annum rate
      equal to the weighted average of (x) the Uncertificated REMIC I Pass-Through
      Rates for the REMIC I Regular Interests ending with the designation “B” for such
      Distribution Date and (y) the rates listed below for the REMIC I Regular
      Interests ending with the designation “A” for such Distribution Date, in each
      case weighted on the basis of the Uncertificated Principal Balances of each
      such
      REMIC I Regular Interest for such Distribution Date:

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            
	
              1

            	
              I-1-A
                through I-45-A

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

            
	 	 	 
	
              2

            	
              I-2-A
                through I-45-A

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

            
	 	
              I-1-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              3

            	
              I-3-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-2-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              4

            	
              I-4-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-3-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              5

            	
              I-5-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-4-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              6

            	
              I-6-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-5-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              7

            	
              I-7-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-6-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              8

            	
              I-8-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-7-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              9

            	
              I-9-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-8-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              10

            	
              I-10-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-9-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              11

            	
              I-11-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-10-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              12

            	
              I-12-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-11-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              13

            	
              I-13-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-12-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              14

            	
              I-14-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-13-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              15

            	
              I-15-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-14-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              16

            	
              I-16-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-15-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              17

            	
              I-17-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-16-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              18

            	
              I-18-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-17-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              19

            	
              I-19-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-18-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              20

            	
              I-20-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-19-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              21

            	
              I-21-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-20-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              22

            	
              I-22-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-21-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              23

            	
              I-23-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-22-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              24

            	
              I-24-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-23-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              25

            	
              I-25-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-24-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              26

            	
              I-26-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-25-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              27

            	
              I-27-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-26-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              28

            	
              I-28-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-27-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              29

            	
              I-29-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-28-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              30

            	
              I-30-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-29-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              31

            	
              I-31-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-30-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              32

            	
              I-32-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-31-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              33

            	
              I-33-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-32-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              34

            	
              I-34-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-33-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              35

            	
              I-35-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-34-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              36

            	
              I-36-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-35-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              37

            	
              I-37-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-36-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              38

            	
              I-38-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-37-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              39

            	
              I-39-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-38-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              40

            	
              I-40-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-39-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              41

            	
              I-41-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-40-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              42

            	
              I-42-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-41-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              43

            	
              I-43-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-42-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              44

            	
              I-44-A
                through I-45-A

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

            
	 	
              I-1-A
                through I-43-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              45

            	
              I-45-A

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

            
	 	
              I-1-A
                through I-44-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              thereafter

            	
              I-1-A
                through I-45-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            

    

    

     

    With
      respect to REMIC II Regular Interest IO and any Distribution Date, a per annum
      rate equal to the excess, if any, of (x) the weighted average of the
      Uncertificated REMIC I Pass-Through Rates for the REMIC I Regular Interests
      ending with the designation “A” for such Distribution Date, over (y) 2
      multiplied by Swap LIBOR.

     

    Unpaid
      Realized Loss Amount:
      With
      respect to the Class A Certificates and as to any Distribution Date is the
      excess of Applied Realized Loss Amounts with respect to such Class over the
      sum
      of all distributions in reduction of the Applied Realized Loss Amounts on all
      previous Distribution Dates. Any amounts distributed to the Class A Certificates
      in respect of any Unpaid Realized Loss Amount shall not be applied to reduce
      the
      Certificate Principal Balance of such Class.

     

    Voting
      Rights:
      The
      portion of the voting rights of all the Certificates that is allocated to any
      Certificate for purposes of the voting provisions hereunder. Voting Rights
      shall
      be allocated (i) 93% to the Class A, Class M and Class B Certificates, (ii)
      3%
      to the Class C Certificates until paid in full, (iii) 1% to each of the Class
      R-1, Class R-2, Class R-3 Certificates and Class RX Certificates, with the
      allocation among the Certificates (other than the Class C Certificates and
      Residual Certificates) to be in proportion to the Certificate Principal Balance
      of each Class relative to the Certificate Principal Balance of all other such
      Classes. Voting Rights will be allocated among the Certificates of each such
      Class in accordance with their respective Percentage Interests.

     

    Wells
      Fargo:
      Wells
      Fargo Bank, National Association, and any successor in interest.

     

    Wells
      Fargo Custodial Agreement:
      The
      Custodial Agreement, dated as of August 30, 2006, among the Depositor, EMC,
      as
      Seller, the Master Servicer, the Securities Administrator, the Trustee and
      Wells
      Fargo Bank, National Association as Custodian relating to the Mortgage Loans
      identified in such Custodial Agreement.

     

    Section
      1.02  Allocation
      of Certain Interest Shortfalls. 

     

    For
      purposes of calculating the amount of Current Interest for the Class A, Class
      M,
      Class B and Class C Certificates for any Distribution Date, the aggregate amount
      of any Prepayment Interest Shortfalls (to the extent not covered by payments
      by
      the Company or the Master Servicer pursuant to Section 6.02) and any Relief
      Act
      Interest Shortfalls incurred in respect of the Mortgage Loans for any
      Distribution Date shall be allocated first, to the Class C Interest based on,
      and to the extent of, one month’s interest at the then applicable Pass-Through
      Rate on the Uncertificated Notional Amount thereof, and to the Class R-3
      Certificates based on the amounts otherwise distributable thereto, and,
      thereafter, among the Class A, Class M and Class B Certificates, in each case
      on
      a pro
      rata
      basis
      based on, and to the extent of, one month’s interest at the then applicable
      respective Pass-Through Rates on the respective Certificate Principal Balances
      of each such Certificate.

     

    For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC I Regular Interests for any Distribution Date, the aggregate amount of
      any
      Prepayment Interest Shortfalls (to the extent not covered by payments by the
      Company or the Master Servicer pursuant to Section 6.02) and any Relief Act
      Interest Shortfalls incurred in respect of the Mortgage Loans for any
      Distribution Date shall be allocated first, to the Class R-1 Certificates based
      on the amounts otherwise distributable thereto, second, to REMIC I Regular
      Interests ending with the designation “B, pro
      rata,
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest, and third, to REMIC
      I
      Regular Interests ending with the designation “A”, pro
      rata,
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest.

     

    For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC II Regular Interests for any Distribution Date, the aggregate amount
      of
      any Prepayment Interest Shortfalls (to the extent not covered by payments by
      the
      Company or the Master Servicer pursuant to Section 6.02) and any Relief Act
      Interest Shortfalls incurred in respect of the Mortgage Loans for any
      Distribution Date shall be allocated first, to Uncertificated Accrued Interest
      payable to REMIC II Regular Interest AA and REMIC II Regular Interest ZZ up
      to
      an aggregate amount equal to the REMIC II Interest Loss Allocation Amount,
      98%
      and 2%, respectively, and to the amounts otherwise distributable to the Class
      R-2 Certificates, and thereafter among REMIC II Regular Interest AA, each REMIC
      II Regular Interest for which a Class A, Class M or Class B Certificate is
      the
      Corresponding Certificate and REMIC II Regular Interest ZZ, pro
      rata,
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC II Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC II Regular Interest.

     

    

    ARTICLE
      II

    CONVEYANCE
      OF TRUST FUND

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      2.01  Conveyance
      of Trust Fund.

     

    Pursuant
      to the Mortgage Loan Purchase Agreement, each Seller sold, transferred,
      assigned, set over and otherwise conveyed to the Depositor, without recourse,
      all the right, title and interest of such Seller in and to the assets sold
      by it
      in the Trust Fund.

     

    EMC
      has
      entered into this Agreement in consideration for the purchase of the Mortgage
      Loans by the Depositor pursuant to the Mortgage Loan Purchase Agreement and
      has
      agreed to take the actions specified herein.

     

    The
      Depositor, concurrently with the execution and delivery hereof, hereby sells,
      transfers, assigns, sets over and otherwise conveys to the Trustee for the
      use
      and benefit of the Certificateholders, without recourse, all the right, title
      and interest of the Depositor in and to the Trust Fund.

    

      In
        connection with such sale, the Depositor has delivered to, and deposited
        with,
        the Trustee or the related Custodian, as its agent, the following documents
        or
        instruments with respect to each Mortgage Loan so assigned: (i) the original
        Mortgage Note, including any riders thereto, endorsed without recourse (A)
        in
        blank or to order of “Citibank, N.A., as Trustee for Certificateholders of SACO
        I Trust 2006-9, Mortgage-Backed Certificates, Series 2006-9,” or (B) in the case
        of a loan registered on the MERS system, in blank and showing an unbroken
        chain
        of endorsements from the original payee thereof to the Person endorsing it
        to
        the Trustee, (ii) the original Mortgage and, if the related Mortgage Loan
        is a
        MOM Loan, noting the presence of the MIN and language indicating that such
        Mortgage Loan is a MOM Loan, which shall have been recorded (or, for Mortgage
        Loans other than the EMC Flow Loans, if the original is not available, a
        copy),
        with evidence of such recording indicated thereon (or if clause (x) in the
        proviso below applies, shall be in recordable form), (iii) unless the Mortgage
        Loan is either a MOM Loan or has been assigned in the name of MERS®, the
        assignment (either an original or a copy, which may be in the form of a blanket
        assignment if permitted in the jurisdiction in which the Mortgaged Property
        is
        located) to the Trustee of the Mortgage with respect to each Mortgage Loan
        in
        the name of “Citibank, N.A., as Trustee for Certificateholders of SACO I Trust
        2006-9, Mortgage-Backed Certificates, Series 2006-9,” which shall have been
        recorded (or if clause (x) in the proviso below applies, shall be in recordable
        form), (iv) an original or a copy of all intervening assignments of the
        Mortgage, if any, with evidence of recording thereon, (v) with respect to
        any
        Mortgage Loan (other than any Piggyback Loan), the original policy of title
        insurance or
        mortgagee’s certificate of title insurance or commitment or binder for title
        insurance or,
        in
        the event such original title policy has not been received from the title
        insurer, such title policy will be delivered within one year of the Closing
        Date
        or, in the event such original title policy is unavailable, a photocopy of
        such
        title policy or, in lieu thereof, a current lien search on the related Mortgaged
        Property; and with respect to any Piggyback Loan, the original policy of
        title insurance or mortgagee’s certificate of title insurance or commitment or
        binder for title insurance issued as to the related first lien Mortgage Loan
        or, in lieu thereof, a lien search on the related Mortgaged Property that
        was conducted in connection with the related first lien Mortgage Loan and
        (vi)
        originals or copies of all available assumption, modification or substitution
        agreements, if any; provided, however, that in lieu of the foregoing, the
        related Seller may deliver the following documents, under the circumstances
        set
        forth below: (x) if any Mortgage (other than the Mortgages related to the
        EMC
        Flow Loans), assignment thereof to the Trustee or intervening assignments
        thereof have been delivered or are being delivered to recording offices for
        recording and have not been returned in time to permit their delivery as
        specified above, the Depositor may deliver a true copy thereof with a
        certification by such Seller or the title company issuing the commitment
        for
        title insurance, on the face of such copy, substantially as follows: “Certified
        to be a true and correct copy of the original, which has been transmitted
        for
        recording”; and (y) in lieu of the Mortgage Notes relating to the Mortgage Loans
        identified in the list set forth in Exhibit I, the Depositor may deliver
        a lost
        note affidavit and indemnity and a copy of the original note, if available;
        and
        provided, further, however, that in the case of Mortgage Loans which 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, may deliver to the
        Trustee
        and the related Custodian a certification of a Servicing Officer to such
        effect
        and in such case shall deposit all amounts paid in respect of such Mortgage
        Loans, in the Master Servicer Collection Account or in the Distribution Account
        on the Closing Date. In the case of the documents referred to in clause (x)
        above, the Depositor shall deliver such documents to the Trustee or the related
        Custodian promptly after they are received. EMC shall cause, at its expense,
        the
        Mortgage and intervening assignments, if any, and to the extent required
        in
        accordance with the foregoing, the assignment of the Mortgage to the Trustee
        to
        be submitted for recording promptly after the Closing Date; provided that
        EMC
        need not cause to be recorded (a) any assignment in any jurisdiction under
        the
        laws of which, as evidenced by an Opinion of Counsel addressed to the Trustee
        delivered by EMC to the Trustee, the Custodians and each Rating Agency, the
        recordation of such assignment is not necessary to protect the Trustee’s
        interest in the related Mortgage Loan or (b) if MERS is identified on the
        Mortgage or on a properly recorded assignment of the Mortgage as the mortgagee
        of record solely as nominee for the related Seller and its successors and
        assigns. In the event that either Seller, the Depositor or the Master Servicer
        or the Securities Administrator gives written notice to the Trustee that
        a court
        has recharacterized the sale of the Mortgage Loans as a financing, EMC shall
        submit or cause to be submitted for recording as specified above each such
        previously unrecorded assignment to be submitted for recording as specified
        above at the expense of the Trust. In the event a Mortgage File is released
        to
        the Company or the related Servicer as a result of such Person having completed
        a Request for Release, the related Custodian shall, if not so completed,
        complete the assignment of the related Mortgage in the manner specified in
        clause (iii) above.

       

    

    In
      connection with the assignment of any Mortgage Loan registered on the MERS®
System, EMC further agrees that it will cause, at EMC’s own expense, within 30
      days after the Closing Date, the MERS® System to indicate that such Mortgage
      Loans have been assigned by EMC to the Depositor and by the Depositor to the
      Trustee in accordance with this Agreement for the benefit of the
      Certificateholders by including (or deleting, in the case of Mortgage Loans
      which are repurchased in accordance with this Agreement) in such computer files
      (a) the code in the field which identifies the specific Trustee and (b) the
      code
      in the field “Pool Field” which identifies the series of the Certificates issued
      in connection with such Mortgage Loans. EMC further agrees that it will not,
      and
      will not permit the Company or the Master Servicer to, and the Master Servicer
      agrees that it will not, alter the codes referenced in this paragraph with
      respect to any Mortgage Loan during the term of this Agreement unless and until
      such Mortgage Loan is repurchased in accordance with the terms of this Agreement
      or the Mortgage Loan Purchase Agreement.

     

    All
      original documents relating to the Mortgage Loans that are not delivered to
      the
      Trustee or the related Custodian on its behalf are and shall be held by or
      on
      behalf of the Seller or the Depositor, as the case may be, in trust for the
      benefit of the Trustee on behalf of the Certificateholders. Any such original
      document delivered to or held by the Depositor, shall be delivered promptly
      to
      the Custodian on the Trustee’s behalf. 

     

    Whenever
      it is provided for in this Agreement that any document, evidence or information
      relating to a Mortgage Loan to be included in a Mortgage File be delivered
      or
      supplied to the Trustee, such delivery or supply shall be made to the
      appropriate Custodian pursuant to the related Custodial Agreement.

     

    Section
      2.02  Acceptance
      of the Mortgage Loans. 

     

    (a)  Based
      on
      the Initial Certification received by it from the related Custodian, the Trustee
      acknowledges receipt of, subject to the further review and exceptions reported
      by the related Custodian pursuant to the procedures described below, the
      documents (or certified copies thereof) delivered to the Trustee or the related
      Custodian on its behalf pursuant to Section 2.01 and declares that it holds
      and
      will continue to hold directly or through a custodian those documents and any
      amendments, replacements or supplements thereto and all other assets of the
      Trust Fund delivered to it in trust for the use and benefit of all present
      and
      future Holders of the Certificates. On the Closing Date, the Trustee or the
      related Custodian on its behalf will deliver one or more Initial Certifications,
      each in the form of Exhibit One to the Custodial Agreement, to the parties
      indicated on such exhibit confirming whether or not it has received the Mortgage
      File for each Mortgage Loan, but without review of such Mortgage File, except
      to
      the extent necessary to confirm whether such Mortgage File contains the original
      Mortgage Note or a lost note affidavit and indemnity in lieu thereof. No later
      than 90 days after the Closing Date, Trustee or the related Custodian on its
      behalf shall, for the benefit of the Certificateholders, review each Mortgage
      File delivered to it and execute and deliver to EMC, and the Master Servicer
      and, if reviewed by the related Custodian, to the Trustee, one or more Interim
      Certifications, each substantially in the form of Exhibit Two to the related
      Custodial Agreement. In conducting such review, the Trustee or the related
      Custodian on its behalf will ascertain whether all required documents have
      been
      executed and received and whether those documents relate, determined on the
      basis of the Mortgagor name, original principal balance and loan number, to
      the
      Mortgage Loans identified in Exhibit B to this Agreement, as supplemented
      (provided, however, that with respect to those documents described in subclauses
      (iv) and (vi) of Section 2.01, such obligations shall extend only to documents
      actually delivered pursuant to such subclauses). In performing any such review,
      the Trustee and the related Custodian may conclusively rely on the purported
      due
      execution and genuineness of any such document and on the purported genuineness
      of any signature thereon. If the Trustee or the related Custodian on its behalf
      finds any document constituting part of the Mortgage File not to have been
      executed or received, or to be unrelated to the Mortgage Loans identified in
      Exhibit B or to appear to be defective on its face, the Trustee or the related
      Custodian on its behalf shall include such information in the exception report
      attached to the Interim Certification. EMC shall correct or cure any such defect
      or, if prior to the end of the second anniversary of the Closing Date, EMC
      may
      substitute for the related Mortgage Loan a Replacement Mortgage Loan, which
      substitution shall be accomplished in the manner and subject to the conditions
      set forth in Section 2.03 or shall deliver to the Securities Administrator
      and
      the Trustee an Opinion of Counsel addressed to the Trustee to the effect that
      such defect does not materially or adversely affect the interests of the
      Certificateholders in such Mortgage Loan within 60 days from the date of notice
      from the Trustee of the defect and if EMC fails to correct or cure the defect
      or
      deliver such opinion within such period, EMC will, subject to Section 2.03,
      within 90 days from the notification of the Trustee purchase such Mortgage
      Loan
      at the Purchase Price; provided, however, that if such defect relates solely
      to
      the inability of EMC to deliver the Mortgage, assignment thereof to the Trustee,
      or intervening assignments thereof with evidence of recording thereon because
      such documents have been submitted for recording and have not been returned
      by
      the applicable jurisdiction, EMC shall not be required to purchase such Mortgage
      Loan if EMC delivers such documents promptly upon receipt, but in no event
      later
      than 360 days after the Closing Date.

     

    (b)  No
      later
      than 180 days after the Closing Date, the Trustee or the related Custodian
      on
      its behalf will review, for the benefit of the Certificateholders, the Mortgage
      Files and will execute and deliver or cause to be executed and delivered to
      EMC,
      and the Master Servicer and, if reviewed by the related Custodian, to the
      Trustee, one or more Final Certifications, each substantially in the form of
      Exhibit Three to the related Custodial Agreement. In conducting such review,
      the
      Trustee or the related Custodian on its behalf will ascertain whether each
      document required to be recorded has been returned from the recording office
      with evidence of recording thereon and the Trustee or the related Custodian
      on
      its behalf has received either an original or a copy thereof, as required in
      Section 2.01 (provided, however, that with respect to those documents described
      in subclauses (iv) and (vi) of Section 2.01, such obligations shall extend
      only
      to documents actually delivered pursuant to such subclauses). If the Trustee
      or
      the related Custodian on its behalf finds any document with respect to a
      Mortgage Loan has not been received, or to be unrelated, determined on the
      basis
      of the Mortgagor name, original principal balance and loan number, to the
      Mortgage Loans identified in Exhibit B or to appear defective on its face,
      the
      Trustee or the related Custodian on its behalf shall note such defect in the
      exception report attached to the Final Certification and shall promptly notify
      EMC. EMC shall correct or cure any such defect or, if prior to the end of the
      second anniversary of the Closing Date, EMC may substitute for the related
      Mortgage Loan a Replacement Mortgage Loan, which substitution shall be
      accomplished in the manner and subject to the conditions set forth in Section
      2.03 or shall deliver to the Trustee and the Securities Administrator an Opinion
      of Counsel addressed to the Trustee and the Securities Administrator to the
      effect that such defect does not materially or adversely affect the interests
      of
      Certificateholders in such Mortgage Loan within 60 days from the date of notice
      from the Trustee of the defect and if EMC is unable within such period to
      correct or cure such defect, or to substitute the related Mortgage Loan with
      a
      Replacement Mortgage Loan or to deliver such opinion, EMC shall, subject to
      Section 2.03, within 90 days from the notification of the Trustee, purchase
      such
      Mortgage Loan at the Purchase Price; provided, however, that if such defect
      relates solely to the inability of EMC to deliver the Mortgage, assignment
      thereof to the Trustee or intervening assignments thereof with evidence of
      recording thereon, because such documents have not been returned by the
      applicable jurisdiction, EMC shall not be required to purchase such Mortgage
      Loan, if EMC delivers such documents promptly upon receipt, but in no event
      later than 360 days after the Closing Date. Notwithstanding anything to the
      contrary, the Trustee shall have no responsibility with respect to the custody
      or review of Mortgage Files, all of which shall be performed by the related
      Custodian pursuant to the related Custodial Agreement, and the Trustee is hereby
      authorized and directed to enter into each such Custodial Agreement. Performance
      by the Custodians of their obligations under the respective Custodial Agreement
      shall satisfy all responsibilities for custody and review of Mortgage Files
      hereunder. The Trustee shall have no liability for the failure of the Custodians
      to perform their respective obligations under the related Custodial
      Agreement.

     

    (c)  In
      the
      event that a Mortgage Loan is repurchased by EMC in accordance with subsections
      2.02(a) or (b) above or Section 2.03, EMC shall remit the applicable Purchase
      Price to the Master Servicer for deposit in the Master Servicer Collection
      Account and shall provide written notice to the Securities Administrator and
      the
      Trustee detailing the components of the Purchase Price, signed by a Servicing
      Officer. Upon deposit of the Purchase Price in the Master Servicer Collection
      Account and upon receipt of a Request for Release with respect to such Mortgage
      Loan, the related Custodian will release to EMC the related Mortgage File and
      the Trustee shall execute and deliver all instruments of transfer or assignment,
      without recourse, representation or warranty furnished to it by the related
      Seller, as are necessary to vest in EMC title to and rights under the Mortgage
      Loan. Such purchase shall be deemed to have occurred on the date on which the
      deposit into the Master Servicer Collection Account was made. The Securities
      Administrator shall promptly use its best efforts to notify each Rating Agency
      of such repurchase in accordance with Section 12.05. The obligation of EMC
      to
      cure, repurchase or substitute for any Mortgage Loan as to which a defect in
      a
      constituent document exists shall be the sole remedies respecting such defect
      available to the Certificateholders or to the Trustee on their
      behalf.

     

    (d)  EMC
      shall
      deliver to the Trustee or the related Custodian on its behalf, and Trustee
      agrees to accept the Mortgage Note and other documents constituting the Mortgage
      File with respect to any Replacement Mortgage Loan, which the Trustee or the
      related Custodian will review as provided in subsections 2.02(a) and 2.02(b),
      provided, that the Closing Date referred to therein shall instead be the date
      of
      delivery of the Mortgage File with respect to each Replacement Mortgage
      Loan.

     

    Section
      2.03  Representations,
      Warranties and Covenants of the Company, the Master Servicer, and EMC as
      Seller. 

     

    (a)  The
      Company hereby represents and warrants to the Master Servicer, the Depositor,
      the Securities Administrator and the Trustee as follows, as of the Closing
      Date:

     

    (i)  It
      is
      duly organized and is validly existing and in good standing under the laws
      of
      the State of Delaware and is duly authorized and qualified to transact any
      and
      all business contemplated by this Agreement to be conducted by it in any state
      in which a Mortgaged Property related to an EMC Mortgage Loan is located or
      is
      otherwise not required under applicable law to effect such qualification and,
      in
      any event, is in compliance with the doing business laws of any such state,
      to
      the extent necessary to ensure its ability to enforce each EMC Mortgage Loan,
      to
      service the EMC Mortgage Loans in accordance with the terms of the Mortgage
      Loan
      Purchase Agreement and this Agreement and to perform any of its other
      obligations under this Agreement in accordance with the terms hereof or
      thereof.

     

    (ii)  It
      has
      the full corporate power and authority to service each Mortgage Loan, and to
      execute, deliver and perform, and to enter into and consummate the transactions
      contemplated by this Agreement and has duly authorized by all necessary
      corporate action on its part the execution, delivery and performance of this
      Agreement, assuming the due authorization, execution and delivery hereof by
      the
      other parties hereto or thereto, as applicable, constitutes its legal, valid
      and
      binding obligation, enforceable against it in accordance with its terms, except
      that (a) the enforceability hereof may be limited by bankruptcy, insolvency,
      moratorium, receivership and other similar laws relating to creditors’ rights
      generally and (b) the remedy of specific performance and injunctive and other
      forms of equitable relief may be subject to equitable defenses and to the
      discretion of the court before which any proceeding therefor may be
      brought.

     

    (iii)  The
      execution and delivery of this Agreement, the servicing of the Mortgage Loans
      by
      it under this Agreement, the consummation of any other of the transactions
      contemplated by this Agreement, and the fulfillment of or compliance with the
      terms hereof and thereof are in its ordinary course of business and will not
      (A)
      result in a breach of any term or provision of its charter or by-laws or (B)
      conflict with, result in a breach, violation or acceleration of, or result
      in a
      default under, the terms of any other material agreement or instrument to which
      it is a party or by which it may be bound, or (C) constitute a violation of
      any
      statute, order or regulation applicable to it of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over it; and
      it
      is not in breach or violation of any material indenture or other material
      agreement or instrument, or in violation of any statute, order or regulation
      of
      any court, regulatory body, administrative agency or governmental body having
      jurisdiction over it which breach or violation may materially impair its ability
      to perform or meet any of its obligations under this Agreement.

     

    (iv)  It
      is an
      approved servicer of conventional mortgage loans for Fannie Mae and Freddie
      Mac
      and is a mortgagee approved by the Secretary of Housing and Urban Development
      pursuant to sections 203 and 211 of the National Housing Act.

     

    (v)  No
      litigation is pending or, to the best of its knowledge, threatened, against
      it
      that would materially and adversely affect (a) the execution, delivery or
      enforceability of this Agreement (b) its ability to service the EMC Mortgage
      Loans, (c) to perform any of its other obligations under this Agreement in
      accordance with the terms hereof, (d) its business operations, financial
      conditions, or properties or assets owned by it, or (e) its ability to carry
      on
      its business as now conducted.

     

    (vi)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for its execution, delivery and performance of, or compliance
      with, this Agreement or the consummation of the transactions contemplated hereby
      or thereby, or if any such consent, approval, authorization or order is
      required, it has obtained the same.

     

    (vii)  The
      servicing practices used by the Company in respect of each Mortgage Loan have
      been, and will continue to be, compliant in all material respects with
      applicable laws and regulations.

     

    (viii)  As
      of the
      Closing Date and except as has been otherwise disclosed to the Master Servicer
      and the Depositor, or disclosed in any public filing: (1) no default or
      servicing related performance trigger has occurred as to any other Pass-Through
      Transfer due to any act or failure to act of the Company; (2) no material
      noncompliance with applicable servicing criteria as to any other Pass-Through
      Transfer has occurred, been disclosed or reported by the Company; (3) the
      Company has not been terminated as servicer in a residential mortgage loan
      Pass-Through Transfer, either due to a servicing default or to application
      of a
      servicing performance test or trigger; (4) no material changes to the Company’s
      servicing policies and procedures for similar loans have occurred in the
      preceding three years outside of the normal changes warranted by regulatory
      and
      product type changes in the portfolio; (5) there are no aspects of the Company’s
      financial condition that could have a material adverse impact on the performance
      by the Company of its obligations hereunder; (6) there are no legal proceedings
      pending, or known to be contemplated by governmental authorities, against the
      Company that could be material to investors in the securities issued in such
      Pass-Through Transfer; and (7) there are no affiliations, relationships or
      transactions relating to the Company of a type that are described under Item
      1119 of Regulation AB.

     

    (ix)  If
      so
      requested by the Depositor or the Master Servicer on any date, the Company
      shall, within five Business Days following such request, confirm in writing
      the
      accuracy of the representations and warranties set forth in clause (a)(viii)
      of
      this Section or, if any such representation and warranty is not accurate as
      of
      the date of such request, provide reasonably adequate disclosure of the
      pertinent facts, in writing, to the requesting party.

     

    (x)  As
      a
      condition to the succession to the Company or any subservicer as servicer or
      subservicer under this Agreement by any Person (i) into which the Company or
      such subservicer may be merged or consolidated, or (ii) which may be appointed
      as a successor to the Company or any subservicer, the Company shall provide
      to
      the Master Servicer and the Depositor, at least 15 calendar days prior to the
      effective date of such succession or appointment, (x) written notice to the
      Master Servicer and the Depositor of such succession or appointment and (y)
      in
      writing and in form and substance reasonably satisfactory to the Master Servicer
      and the Depositor, all information reasonably requested by the Master Servicer
      or the Depositor in order to comply with its reporting obligation under Item
      6.02 of Form 8-K with respect to any class of asset-backed
      securities.

     

    (b)  LaSalle
      Bank National Association, in its capacity as Master Servicer and Securities
      Administrator hereby represents and warrants to the Seller, the Depositor and
      the Trustee as follows, as of the Closing Date:

     

    (i)  It
      is a
      national banking association duly formed, validly existing and in good standing
      under the laws of the United States of America and is duly authorized and
      qualified to transact any and all business contemplated by this Agreement to
      be
      conducted by the Master Servicer and the Securities Administrator and, is in
      compliance with the doing business laws of any state, to the extent necessary
      to
      ensure its ability to perform any of its other obligations under this Agreement
      in accordance with the terms hereof;

     

    (ii)  It
      has
      the full corporate power and authority to execute, deliver and perform, and
      to
      enter into and consummate the transactions contemplated by this Agreement and
      has duly authorized by all necessary corporate action on its part the execution,
      delivery and performance of this Agreement; and this Agreement, assuming the
      due
      authorization, execution and delivery hereof by the other parties hereto,
      constitutes its legal, valid and binding obligation, enforceable against it
      in
      accordance with its terms, except that (a) the enforceability hereof may be
      limited by bankruptcy, insolvency, moratorium, receivership and other similar
      laws relating to creditors’ rights generally and (b) the remedy of specific
      performance and injunctive and other forms of equitable relief may be subject
      to
      equitable defenses and to the discretion of the court before which any
      proceeding therefor may be brought.

     

    (iii)  The
      execution and delivery of this Agreement by it, the consummation of any other
      of
      the transactions contemplated by this Agreement, and the fulfillment of or
      compliance with the terms hereof are in its ordinary course of business and
      will
      not (A) result in a material breach of any term or provision of its charter
      or
      by-laws or (B) materially conflict with, result in a material breach, violation
      or acceleration of, or result in a material default under, the terms of any
      other material agreement or instrument to which it is a party or by which it
      may
      be bound, or (C) constitute a material violation of any statute, order or
      regulation applicable to it of any court, regulatory body, administrative agency
      or governmental body having jurisdiction over it; and it is not in breach or
      violation of any material indenture or other material agreement or instrument,
      or in violation of any statute, order or regulation of any court, regulatory
      body, administrative agency or governmental body having jurisdiction over it
      which breach or violation may materially impair its ability to perform or meet
      any of its obligations under this Agreement.

     

    (iv)  No
      litigation is pending or, to the best of its knowledge, threatened, against
      it
      that would materially and adversely affect the execution, delivery or
      enforceability of this Agreement or its ability to perform any of its other
      obligations under this Agreement in accordance with the terms
      hereof.

     

    (v)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for its execution, delivery and performance of, or compliance
      with, this Agreement or the consummation of the transactions contemplated
      hereby, or if any such consent, approval, authorization or order is required,
      it
      has obtained the same.

     

    (c)  EMC
      (in
      its capacity as Seller) hereby represents and warrants to the Depositor and
      the
      Trustee as follows, as of the Closing Date:

     

    (i)  EMC
      is
      duly organized as a Delaware corporation and is validly existing and in good
      standing under the laws of the State of Delaware and is duly authorized and
      qualified to transact any and all business contemplated by this Agreement to
      be
      conducted by EMC in any state in which a Mortgaged Property is located or is
      otherwise not required under applicable law to effect such qualification and,
      in
      any event, is in compliance with the doing business laws of any such state,
      to
      the extent necessary to ensure its ability to enforce each Mortgage Loan, to
      sell the Mortgage Loans in accordance with the terms of the Mortgage Loan
      Purchase Agreement and to perform any of its other obligations under this
      Agreement in accordance with the terms hereof.

     

    (ii)  EMC
      has
      the full corporate power and authority to sell each Mortgage Loan, and to
      execute, deliver and perform, and to enter into and consummate the transactions
      contemplated by this Agreement and has duly authorized by all necessary
      corporate action on the part of EMC the execution, delivery and performance
      of
      this Agreement, assuming the due authorization, execution and delivery hereof
      by
      the other parties hereto or thereto, as applicable, constitutes a legal, valid
      and binding obligation of EMC, enforceable against EMC in accordance with its
      terms, except that (a) the enforceability hereof may be limited by bankruptcy,
      insolvency, moratorium, receivership and other similar laws relating to
      creditors’ rights generally and (b) the remedy of specific performance and
      injunctive and other forms of equitable relief may be subject to equitable
      defenses and to the discretion of the court before which any proceeding therefor
      may be brought.

     

    (iii)  The
      execution and delivery of this Agreement by EMC, the sale of the Mortgage Loans
      by EMC under the Mortgage Loan Purchase Agreement, the consummation of any
      other
      of the transactions contemplated by this Agreement, and the fulfillment of
      or
      compliance with the terms hereof and thereof are in the ordinary course of
      business of EMC and will not (A) result in a material breach of any term or
      provision of the charter or by-laws of EMC or (B) conflict with, result in
      a
      breach, violation or acceleration of, or result in a default under, the terms
      of
      any other material agreement or instrument to which EMC is a party or by which
      it may be bound, or (C) constitute a violation of any statute, order or
      regulation applicable to EMC of any court, regulatory body, administrative
      agency or governmental body having jurisdiction over EMC; and EMC is not in
      breach or violation of any material indenture or other material agreement or
      instrument, or in violation of any statute, order or regulation of any court,
      regulatory body, administrative agency or governmental body having jurisdiction
      over it which breach or violation may materially impair EMC’s ability to perform
      or meet any of its obligations under this Agreement.

     

    (iv)  EMC
      is an
      approved Seller of conventional mortgage loans for Fannie Mae and Freddie Mac
      and is a mortgagee approved by the Secretary of Housing and Urban Development
      pursuant to sections 203 and 211 of the National Housing Act.

     

    (v)  No
      litigation is pending or, to the best of EMC’s knowledge, threatened, against
      EMC that would materially and adversely affect the execution, delivery or
      enforceability of this Agreement or the ability of EMC to sell the Mortgage
      Loans or to perform any of its other obligations under this Agreement in
      accordance with the terms hereof or thereof.

     

    (vi)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by EMC of, or
      compliance by EMC with, this Agreement or the consummation of the transactions
      contemplated hereby, or if any such consent, approval, authorization or order
      is
      required, EMC has obtained the same.

     

    (vii)  With
      respect to each Mortgage Loan as of the Closing Date (or such other date as
      may
      be specified in Section 7 of the Mortgage Loan Purchase Agreement), EMC hereby
      remakes and restates each of the representations and warranties set forth in
      Section 7 of the Mortgage Loan Purchase Agreement to the Depositor and the
      Trustee to the same extent as if fully set forth herein.

     

    (d)  Upon
      discovery by any of the parties hereto of a breach of a representation or
      warranty set forth in the Mortgage Loan Purchase Agreement with respect to
      the
      Mortgage Loans that materially and adversely affects the interests of the
      Certificateholders in any Mortgage Loan, the party discovering such breach
      shall
      give prompt written notice thereof to the other parties. EMC, in its capacity
      as
      Seller, hereby covenants with respect to the representations and warranties
      set
      forth in the Mortgage Loan Purchase Agreement with respect to the Mortgage
      Loans, that within 90 days of the discovery of a breach of any representation
      or
      warranty set forth therein that materially and adversely affects the interests
      of the Certificateholders in any Mortgage Loan, it shall cure such breach in
      all
      material respects and, if such breach is not so cured, (i) if such 90 day period
      expires prior to the second anniversary of the Closing Date, remove such
      Mortgage Loan (a “Deleted Mortgage Loan”) from the Trust Fund and substitute in
      its place a Replacement Mortgage Loan, in the manner and subject to the
      conditions set forth in this Section; or (ii) repurchase the affected Mortgage
      Loan or Mortgage Loans from the Trustee at the Purchase Price in the manner
      set
      forth below; provided that any such substitution pursuant to (i) above or
      repurchase pursuant to (ii) above shall not be effected prior to the delivery
      to
      the Trustee and the Securities Administrator of an Opinion of Counsel if
      required by Section 2.05 hereof and any such substitution pursuant to (i) above
      shall not be effected prior to the additional delivery to the applicable
      Custodian of a Request for Release. The Trustee shall give prompt written notice
      to the parties hereto of EMC’s failure to cure such breach as set forth in the
      preceding sentence. EMC shall promptly reimburse the Master Servicer and the
      Trustee for any expenses reasonably incurred by the Master Servicer or the
      Trustee in respect of enforcing the remedies for such breach. To enable the
      Master Servicer to amend the Mortgage Loan Schedule, EMC shall, unless it cures
      such breach in a timely fashion pursuant to this Section 2.03, promptly notify
      the Master Servicer whether it intends either to repurchase, or to substitute
      for, the Mortgage Loan affected by such breach. With respect to the
      representations and warranties with respect to the Mortgage Loans that are
      made
      to the best of EMC’s knowledge, if it is discovered by any of the Depositor, the
      Master Servicer, EMC, the Securities Administrator or the Trustee that the
      substance of such representation and warranty is inaccurate and such inaccuracy
      materially and adversely affects the value of the related Mortgage Loan,
      notwithstanding EMC’s lack of knowledge with respect to the substance of such
      representation or warranty, EMC (in its capacity as Seller) shall nevertheless
      be required to cure, substitute for or repurchase the affected Mortgage Loan
      in
      accordance with the foregoing.

     

    With
      respect to any Replacement Mortgage Loan or Loans, EMC (in its capacity as
      Seller) shall deliver to the Trustee or the related Custodian on its behalf
      for
      the benefit of the Certificateholders such documents and agreements as are
      required by Section 2.01. No substitution will be made in any calendar month
      after the Determination Date for such month. Notwithstanding the foregoing,
      such
      substitution must be done within two years of the Closing Date. Scheduled
      Payments due with respect to Replacement Mortgage Loans in the Due Period
      related to the Distribution Date on which such proceeds are to be distributed
      shall not be part of the Trust Fund and will be retained by EMC (in its capacity
      as Seller). For the month of substitution, distributions to Certificateholders
      will include the Scheduled Payment due on any Deleted Mortgage Loan for the
      related Due Period and thereafter EMC (in its capacity as Seller) shall be
      entitled to retain all amounts received in respect of such Deleted Mortgage
      Loan. The Master Servicer shall amend the Mortgage Loan Schedule for the benefit
      of the Certificateholders to reflect the removal of each such Deleted Mortgage
      Loan and the substitution of the Replacement Mortgage Loan or Loans and the
      Master Servicer shall deliver the amended Mortgage Loan Schedule to the
      Securities Administrator, the Trustee and the related Custodian. Upon such
      substitution, the Replacement Mortgage Loan or Loans shall be subject to the
      terms of this Agreement in all respects, and EMC shall be deemed to have made
      with respect to such Replacement Mortgage Loan or Loans, as of the date of
      substitution, the representations and warranties set forth in Section 7 or
      Section 8 of the Mortgage Loan Purchase Agreement with respect to such Mortgage
      Loan. Upon any such substitution and the deposit into the Master Servicer
      Collection Account of the amount required to be deposited therein in connection
      with such substitution as described in the following paragraph and receipt
      by
      the related Custodian of a Request for Release for such Mortgage Loan, the
      related Custodian shall release to EMC the Mortgage File relating to such
      Deleted Mortgage Loan and held for the benefit of the Certificateholders and
      the
      Trustee shall execute and deliver at EMC’s direction such instruments of
      transfer or assignment as have been prepared by EMC, in each case without
      recourse, representation or warranty as shall be necessary to vest in EMC,
      or
      its respective designee, title to the Trustee’s interest in any Deleted Mortgage
      Loan substituted for pursuant to this Section 2.03.

     

    For
      any
      month in which EMC substitutes one or more Replacement Mortgage Loans for a
      Deleted Mortgage Loan, the Master Servicer will determine the amount (if any)
      by
      which the aggregate principal balance of all the Replacement Mortgage Loans
      as
      of the date of substitution is less than the Stated Principal Balance (after
      application of the principal portion of the Scheduled Payment due in the month
      of substitution) of such Deleted Mortgage Loan. An amount equal to the aggregate
      of such deficiencies, described in the preceding sentence for any Distribution
      Date (such amount, the “Substitution Adjustment Amount”) shall be deposited into
      the Master Servicer Collection Account, by EMC upon its delivering such
      Replacement Mortgage Loan on the Determination Date for the Distribution Date
      relating to the Prepayment Period during which the related Mortgage Loan became
      required to be purchased or replaced hereunder.

     

    In
      the
      event that EMC (in its capacity as Seller) shall have repurchased a Mortgage
      Loan, the Purchase Price therefor shall be deposited into the Master Servicer
      Collection Account maintained by the Master Servicer, on the Determination
      Date
      for the Distribution Date in the month following the month during which EMC
      became obligated to repurchase or replace such Mortgage Loan and upon such
      deposit of the Purchase Price, the delivery of an Opinion of Counsel if required
      by Section 2.05 and the receipt of a Request for Release, the related Custodian
      shall release the related Mortgage File held for the benefit of the
      Certificateholders to EMC, and the Trustee shall execute and deliver at such
      Person’s direction the related instruments of transfer or assignment prepared by
      EMC, in each case without recourse, representation or warranty, as shall be
      necessary to transfer title from the Trustee for the benefit of the
      Certificateholders and transfer the Trustee’s interest to EMC to any Mortgage
      Loan purchased pursuant to this Section 2.03. It is understood and agreed that
      the obligation under this Agreement of EMC to cure, repurchase or replace any
      Mortgage Loan as to which a breach has occurred and is continuing shall
      constitute the sole remedies against EMC (in its capacity as Seller) respecting
      such breach available to the Certificateholders, the Depositor or the
      Trustee.

     

    (e)  The
      representations and warranties set forth in this Section 2.03 hereof shall
      survive delivery of the respective Mortgage Loans and Mortgage Files to the
      Trustee or the related Custodian for the benefit of the
      Certificateholders.

     

    Section
      2.04  Representations
      and Warranties of the Depositor. 

     

    The
      Depositor hereby represents and warrants to the Master Servicer, the Securities
      Administrator and the Trustee as follows, as of the date hereof and as of the
      Closing Date:

     

    (i)  The
      Depositor is duly organized and is validly existing as a limited liability
      company in good standing under the laws of the State of Delaware and has full
      power and authority necessary to own or hold its properties and to conduct
      its
      business as now conducted by it and to enter into and perform its obligations
      under this Agreement.

     

    (ii)  The
      Depositor has the full power and authority to execute, deliver and perform,
      and
      to enter into and consummate the transactions contemplated by, this Agreement
      and has duly authorized, by all necessary corporate action on its part, the
      execution, delivery and performance of this Agreement; and this Agreement,
      assuming the due authorization, execution and delivery hereof by the other
      parties hereto, constitutes a legal, valid and binding obligation of the
      Depositor, enforceable against the Depositor in accordance with its terms,
      subject, as to enforceability, to (i) bankruptcy, insolvency, reorganization,
      moratorium and other similar laws affecting creditors’ rights generally and (ii)
      general principles of equity, regardless of whether enforcement is sought in
      a
      proceeding in equity or at law.

     

    (iii)  The
      execution and delivery of this Agreement by the Depositor, the consummation
      of
      the transactions contemplated by this Agreement, and the fulfillment of or
      compliance with the terms hereof and thereof are in the ordinary course of
      business of the Depositor and will not (A) result in a material breach of any
      term or provision of the certificate of formation or limited liability company
      agreement of the Depositor or (B) materially conflict with, result in a material
      breach, violation or acceleration of, or result in a material default under,
      the
      terms of any other material agreement or instrument to which the Depositor
      is a
      party or by which it may be bound or (C) constitute a material violation of
      any
      statute, order or regulation applicable to the Depositor of any court,
      regulatory body, administrative agency or governmental body having jurisdiction
      over the Depositor; and the Depositor is not in breach or violation of any
      material indenture or other material agreement or instrument, or in violation
      of
      any statute, order or regulation of any court, regulatory body, administrative
      agency or governmental body having jurisdiction over it which breach or
      violation may materially impair the Depositor’s ability to perform or meet any
      of its obligations under this Agreement.

     

    (iv)  No
      litigation is pending, or, to the best of the Depositor’s knowledge, threatened,
      against the Depositor that would materially and adversely affect the execution,
      delivery or enforceability of this Agreement or the ability of the Depositor
      to
      perform its obligations under this Agreement in accordance with the terms hereof
      or thereof.

     

    (v)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Depositor
      of, or compliance by the Depositor with this Agreement or the consummation
      of
      the transactions contemplated hereby or thereby, or if any such consent,
      approval, authorization or order is required, the Depositor has obtained the
      same.

     

    (vi) The
      Depositor has filed all reports required to be filed by Section 13 or 15(d)
      of
      the Exchange Act during the preceding 12 months (or for such shorter period
      that
      the Depositor was required to file such reports) and it has been subject to
      such
      filing requirement for the past 90 days. 

    

    The
      Depositor hereby represents and warrants to the Trustee as of the Closing Date,
      following the transfer of the Mortgage Loans to it by the Seller, the Depositor
      had good title to the Mortgage Loans and the related Mortgage Notes were subject
      to no offsets, claims, defenses or counterclaims.

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 2.04 shall survive delivery of the Mortgage Files to the Trustee or
      the
      related Custodian for the benefit of the Certificateholders. Upon discovery
      by
      the Depositor or the Trustee of a breach of such representations and warranties,
      the party discovering such breach shall give prompt written notice to the others
      and to each Rating Agency.

     

    Section
      2.05  Delivery
      of Opinion of Counsel in Connection with Substitutions and
      Repurchases. 

     

    (a)  Notwithstanding
      any contrary provision of this Agreement, with respect to any Mortgage Loan
      that
      is not in default or as to which default is not reasonably foreseeable, no
      repurchase or substitution pursuant to Sections 2.02 or 2.03 shall be made
      unless EMC delivers to the Trustee and the Securities Administrator an Opinion
      of Counsel, addressed to the Trustee and the Securities Administrator, to the
      effect that such repurchase or substitution would not (i) result in the
      imposition of the tax on “prohibited transactions” of REMIC I, REMIC II, REMIC
      III, REMIC IV or REMIC V or contributions after the Closing Date, as defined
      in
      Sections 860F(a)(2) and 860G(d) of the Code, respectively, or (ii) cause any
      of
      REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V to fail to qualify as a REMIC
      at any time that any Certificates are outstanding. Any Mortgage Loan as to
      which
      repurchase or substitution was delayed pursuant to this paragraph shall be
      repurchased or the substitution therefor shall occur (subject to compliance
      with
      Sections 2.02 or 2.03) upon the earlier of (a) the occurrence of a default
      or a
      default becoming reasonably foreseeable with respect to such Mortgage Loan
      and
      (b) receipt by the Trustee of an Opinion of Counsel addressed to the Trustee
      and
      the Securities Administrator to the effect that such repurchase or substitution,
      as applicable, will not result in the events described in clause (i) or clause
      (ii) of the preceding sentence.

     

    (b)  Upon
      discovery by the Depositor, EMC or the Master Servicer that any Mortgage Loan
      does not constitute a “qualified mortgage” within the meaning of Section
      860G(a)(3) of the Code, the party discovering such fact shall promptly (and
      in
      any event within 5 Business Days of discovery) give written notice thereof
      to
      the other parties and the Trustee and the Securities Administrator. In
      connection therewith, EMC shall either (i) substitute, if the conditions in
      Section 2.03 with respect to substitutions are satisfied, a Replacement Mortgage
      Loan for the affected Mortgage Loan, or (ii) repurchase the affected Mortgage
      Loan within 90 days of such discovery in the same manner as it would a Mortgage
      Loan for a breach of representation or warranty in accordance with Section
      2.03.
      The Trustee shall reconvey to EMC the Mortgage Loan to be released pursuant
      hereto (and the related Custodian shall deliver the related Mortgage File)
      in
      the same manner, and on the same terms and conditions, as it would a Mortgage
      Loan repurchased for breach of a representation or warranty in accordance with
      Section 2.03.

     

    Section
      2.06  Countersignature
      and Delivery of Certificates. 

     

    (a)  The
      Trustee acknowledges the sale, transfer and assignment to it of the Trust Fund
      and, concurrently with such transfer and assignment, and the Securities
      Administrator has executed, countersigned and delivered, to or upon the order
      of
      the Depositor, the Certificates in authorized denominations evidencing the
      entire ownership of the Trust Fund. The Trustee agrees to hold the Trust Fund
      and exercise the rights referred to above for the benefit of all present and
      future Holders of the Certificates and to perform the duties set forth in this
      Agreement in accordance with its terms.

     

    (b)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the REMIC
      I Regular Interests and the other assets of REMIC II for the benefit of the
      holders of the REMIC II Regular Interests and the Class R-2 Certificates. The
      Trustee acknowledges receipt of the REMIC I Regular Interests (which are
      uncertificated) and the other assets of REMIC II and declares that it holds
      and
      will hold the same in trust for the exclusive use and benefit of the holders
      of
      the REMIC II Regular Interests and the Class R-2 Certificates.

     

    (c)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the REMIC
      II Regular Interests and the other assets of REMIC III for the benefit of the
      holders of the Regular Certificates (other than the Class C Certificates),
      the
      Class C Interest, the Class IO Interest and the Class R-3 Certificates. The
      Trustee acknowledges receipt of the REMIC II Regular Interests (which are
      uncertificated) and the other assets of REMIC III and declares that it holds
      and
      will hold the same in trust for the exclusive use and benefit of the holders
      of
      the Regular Certificates (other than the Class C Certificates), the Class C
      Interest, the Class IO Interest and the Class R-3 Certificates.

     

    (d)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the Class
      C Interest for the benefit of the Holders of the Class C Certificates and Class
      RX Certificates (in respect of the Class R-4 Interest). The Trustee acknowledges
      receipt of the Class C Interest (which is uncertificated) and declares that
      it
      holds and will hold the same in trust for the exclusive use and benefit of
      the
      Holders of the Class C Certificates and Class RX Certificates (in respect of
      the
      Class R-4 Interest).

     

    (e)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the Class
      IO Interest for the benefit of the holders of the REMIC V Regular Interest
      IO
      and Class RX Certificates (in respect of the Class R-5 Interest). The Trustee
      acknowledges receipt of the Class IO Interest (which is uncertificated) and
      declares that it holds and will hold the same in trust for the exclusive use
      and
      benefit of the holders of the REMIC V Regular Interest IO and Class RX
      Certificates (in respect of the Class R-5 Interest).

     

    Section
      2.07  Purposes
      and Powers of the Trust.

     

    The
      purpose of the common law trust, created hereunder (the “Trust”), is to engage
      in the following activities:

     

    (a)  acquire
      and hold the Mortgage Loans and the other assets of the Trust Fund and the
      proceeds therefrom for the benefit of the Certificateholders;

     

    (b)  to
      issue
      the Certificates sold to the Depositor in exchange for the Mortgage Loans and
      the other assets of the Trust Fund;

     

    (c)  to
      make
      distributions on the Certificates;

     

    (d)  to
      engage
      in those activities that are necessary, suitable or convenient to accomplish
      the
      foregoing or are incidental thereto or connected therewith; and

     

    (e)  subject
      to compliance with this Agreement, to engage in such other activities as may
      be
      required in connection with conservation of the Trust Fund and the making of
      distributions to the Certificateholders.

     

    The
      Trust
      is hereby authorized to engage in the foregoing activities. The Trust shall
      not
      engage in any activity other than in connection with the foregoing or other
      than
      as required or authorized by the terms of this Agreement while any Certificate
      is outstanding.

     

     

    ARTICLE
      III

    ADMINISTRATION
      AND SERVICING OF EMC MORTGAGE LOANS BY THE COMPANY

     

    Section
      3.01  The
      Company. 

     

    The
      Company shall service and administer the EMC Mortgage Loans in accordance with
      this Agreement and with customary and usual standards of practice of prudent
      mortgage loan servicers in the respective states in which the related Mortgaged
      Properties are located. In connection with such servicing and administration,
      the Company shall have full power and authority, acting alone and/or through
      subservicers as provided in Section 3.03, to do or cause to be done any and
      all
      things that it may deem necessary or desirable and consistent with the terms
      of
      this Agreement and customary servicing practices in connection with such
      servicing and administration, including but not limited to, the power and
      authority, subject to the terms hereof (i) to execute and deliver, on behalf
      of
      the Certificateholders and the Trustee, customary consents or waivers and other
      instruments and documents, (ii) to consent to transfers of any related Mortgaged
      Property and assumptions of the Mortgage Notes and related Mortgages (but only
      in the manner provided herein), (iii) to collect any Insurance Proceeds and
      other Liquidation Proceeds or Subsequent Recoveries, and (iv) subject to Section
      3.12, to effectuate foreclosure or other conversion of the ownership of the
      Mortgaged Property securing any EMC Mortgage Loan; provided that the Company
      shall take no action that is inconsistent with or prejudices the interests
      of
      the Trust Fund, or the Certificateholders or this Agreement in any EMC Mortgage
      Loan or the rights and interests of the Depositor, the Master Servicer or the
      Trustee under this Agreement.

     

    Without
      limiting the generality of the foregoing, the Company, in its own name or in
      the
      name of the Trust, the Depositor or the Trustee, is hereby authorized and
      empowered by the Trust, the Depositor and the Trustee, when the Company believes
      it appropriate in its reasonable judgment, to execute and deliver, on behalf
      of
      the Trustee, the Depositor, the Certificateholders 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 EMC Mortgage
      Loans, and with respect to the related Mortgaged Properties held for the benefit
      of the Certificateholders. The Company shall prepare and deliver to the
      Depositor and/or the Trustee such documents requiring execution and delivery
      by
      any or all of them as are necessary or appropriate to enable the Company to
      service and administer the EMC Mortgage Loans. Upon receipt of such documents,
      the Depositor and/or the Trustee shall execute such documents and deliver them
      to the Company.

     

    In
      accordance with the standards of the first paragraph of this Section 3.01,
      the
      Company shall advance or cause to be advanced funds as necessary for the purpose
      of effecting the payment of taxes and assessments on the Mortgaged Properties
      relating to the EMC Mortgage Loans, which advances shall be reimbursable in
      the
      first instance from related collections from the Mortgagors pursuant to Section
      5.04, and further as provided in Section 5.02. All costs incurred by the
      Company, if any, in effecting the timely payments of taxes and assessments
      on
      the Mortgaged Properties relating to the EMC Mortgage Loans and related
      insurance premiums shall not, for the purpose of calculating monthly
      distributions to the Certificateholders, be added to the Stated Principal
      Balance under the related EMC Mortgage Loans, notwithstanding that the terms
      of
      such Mortgage Loans so permit.

     

    If
      the
      Mortgage relating to a Mortgage Loan had a lien senior to the Mortgage Loan
      on
      the related Mortgaged Property as of the Cut-off Date, then the Company may
      consent to the refinancing of the prior senior lien, provided that the following
      requirements are met:

     

    (i)  the
      resulting Combined Loan-to-Value Ratio of such Mortgage Loan is no higher than
      the Combined Loan-to-Value Ratio prior to such refinancing; and

     

    (ii)  the
      interest rate, or, in the case of an adjustable rate existing senior lien,
      the
      maximum interest rate, for the loan evidencing the refinanced senior lien is
      no
      more than 2.0% higher than the interest rate or the maximum interest rate,
      as
      the case may be, on the loan evidencing the existing senior lien immediately
      prior to the date of such refinancing; and

     

    (iii)  the
      loan
      evidencing the refinanced senior lien is not subject to negative
      amortization.

     

    The
      Trustee shall furnish the Company and the related Servicer with any powers
      of
      attorney and other documents in form as provided to it necessary or appropriate
      to enable the Company and the related Servicer to service and administer the
      related Mortgage Loans and REO Property, 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 related Servicing Agreement and
      this
      Agreement.

     

    Section
      3.02  Due-on-Sale
      Clauses; Assumption Agreements. 

     

    (a)  Except
      as
      otherwise provided in this Section 3.02, when any property subject to a Mortgage
      has been or is about to be conveyed by the Mortgagor, the Company shall to
      the
      extent that it has knowledge of such conveyance, enforce any due-on-sale clause
      contained in any Mortgage Note or Mortgage, to the extent permitted under
      applicable law and governmental regulations, but only to the extent that such
      enforcement will not adversely affect or jeopardize coverage under any Required
      Insurance Policy. Notwithstanding the foregoing, the Company is not required
      to
      exercise such rights with respect to an EMC Mortgage Loan if the Person to
      whom
      the related Mortgaged Property has been conveyed or is proposed to be conveyed
      satisfies the terms and conditions contained in the Mortgage Note and Mortgage
      related thereto and the consent of the mortgagee under such Mortgage Note or
      Mortgage is not otherwise so required under such Mortgage Note or Mortgage
      as a
      condition to such transfer. In the event that the Company is prohibited by
      law
      from enforcing any such due-on-sale clause, or if coverage under any Required
      Insurance Policy would be adversely affected, or if nonenforcement is otherwise
      permitted hereunder, the Company is authorized, subject to Section 3.02(b),
      to
      take or enter into an assumption and modification agreement from or with the
      person to whom such property has been or is about to be conveyed, pursuant
      to
      which such person becomes liable under the Mortgage Note and, unless prohibited
      by applicable state law, the Mortgagor remains liable thereon, provided that
      the
      Mortgage Loan shall continue to be covered (if so covered before the Company
      enters such agreement) by the applicable Required Insurance Policies. The
      Company, subject to Section 3.02(b), is also authorized with the prior approval
      of the insurers under any Required Insurance Policies to enter into a
      substitution of liability agreement with such Person, pursuant to which the
      original Mortgagor is released from liability and such Person is substituted
      as
      Mortgagor and becomes liable under the Mortgage Note. Notwithstanding the
      foregoing, the Company shall not be deemed to be in default under this Section
      3.02(a) by reason of any transfer or assumption that the Company reasonably
      believes it is restricted by law from preventing.

     

    (b)  Subject
      to the Company’s duty to enforce any due-on-sale clause to the extent set forth
      in Section 3.02(a), in any case in which a Mortgaged Property has been conveyed
      to a Person by a Mortgagor, and such Person is to enter into an assumption
      agreement or modification agreement or supplement to the Mortgage Note or
      Mortgage that requires the signature of the Trustee, or if an instrument of
      release signed by the Trustee is required releasing the Mortgagor from liability
      on the related EMC Mortgage Loan, the Company shall prepare and deliver or
      cause
      to be prepared and delivered to the Trustee for signature and shall direct,
      in
      writing, the Trustee to execute the assumption agreement with the Person to
      whom
      the Mortgaged Property is to be conveyed and such modification agreement or
      supplement to the Mortgage Note or Mortgage or other instruments as are
      reasonable or necessary to carry out the terms of the Mortgage Note or Mortgage
      or otherwise to comply with any applicable laws regarding assumptions or the
      transfer of the Mortgaged Property to such Person. In connection with any such
      assumption, no material term of the Mortgage Note (including, but not limited
      to, the Mortgage Rate, the amount of the Scheduled Payment and any other term
      affecting the amount or timing of payment on the EMC Mortgage Loan) may be
      changed. In addition, the substitute Mortgagor and the Mortgaged Property must
      be acceptable to the Company in accordance with its servicing standards as
      then
      in effect. The Company shall notify the Trustee that any such substitution
      or
      assumption agreement has been completed by forwarding to the Trustee the
      original (and to the Master Servicer a copy) of such substitution or assumption
      agreement, which in the case of the original shall be added to the related
      Mortgage File and shall, for all purposes, be considered a part of such Mortgage
      File to the same extent as all other documents and instruments constituting
      a
      part thereof. Any fee collected by the Company for entering into an assumption
      or substitution of liability agreement will be retained by the Company as
      additional servicing compensation.

     

    Section
      3.03  Subservicers. 

     

    The
      Company shall perform all of its servicing responsibilities hereunder or may
      cause a subservicer to perform any such servicing responsibilities on its
      behalf, but the use by the Company of a subservicer shall not release the
      Company from any of its obligations hereunder and the Company shall remain
      responsible hereunder for all acts and omissions of each subservicer as fully
      as
      if such acts and omissions were those of the Company. The Company shall pay
      all
      fees of each subservicer from its own funds, and a subservicer’s fee shall not
      exceed the Servicing Fee payable to the Company hereunder.

     

    At
      the
      cost and expense of the Company, without any right of reimbursement from its
      Protected Account, the Company shall be entitled to terminate the rights and
      responsibilities of a subservicer and arrange for any servicing responsibilities
      to be performed by a successor subservicer; provided, however, that nothing
      contained herein shall be deemed to prevent or prohibit the Company, at the
      Company’s option, from electing to service the related Mortgage Loans itself. In
      the event that the Company’s responsibilities and duties under this Agreement
      are terminated pursuant to Section 9.01, the Company shall at its own cost
      and
      expense terminate the rights and responsibilities of each subservicer effective
      as of the date of termination of the Company. The Company shall pay all fees,
      expenses or penalties necessary in order to terminate the rights and
      responsibilities of each subservicer from the Company’s own funds without
      reimbursement from the Trust Fund.

     

    Notwithstanding
      the foregoing, the Company shall not be relieved of its obligations hereunder
      and shall be obligated to the same extent and under the same terms and
      conditions as if it alone were servicing and administering the EMC Mortgage
      Loans. The Company shall be entitled to enter into an agreement with a
      subservicer for indemnification of the Company by the subservicer and nothing
      contained in this Agreement shall be deemed to limit or modify such
      indemnification.

     

    Any
      subservicing agreement and any other transactions or services relating to the
      EMC Mortgage Loans involving a subservicer shall be deemed to be between such
      subservicer and the Company alone, and neither the Master Servicer nor the
      Trustee shall have any obligations, duties or liabilities with respect to such
      subservicer including any obligation, duty or liability of either the Master
      Servicer or the Trustee to pay such subservicer’s fees and expenses. For
      purposes of remittances to the Securities Administrator pursuant to this
      Agreement, the Company shall be deemed to have received a payment on an EMC
      Mortgage Loan when a subservicer has received such payment.

     

    Section
      3.04  Documents,
      Records and Funds in Possession of the Company to Be Held for
      Trustee. 

     

    Notwithstanding
      any other provisions of this Agreement, the Company shall transmit to the
      Trustee or the related Custodian on behalf of the Trustee as required by this
      Agreement all documents and instruments in respect of an EMC Mortgage Loan
      coming into the possession of the Company from time to time and shall account
      fully to the Master Servicer for any funds received by the Company or that
      otherwise are collected by the Company as Liquidation Proceeds, Insurance
      Proceeds or Subsequent Recoveries in respect of any such Mortgage Loan. All
      Mortgage Files and funds collected or held by, or under the control of, the
      Company in respect of any EMC Mortgage Loans, whether from the collection of
      principal and interest payments or from Liquidation Proceeds, Insurance Proceeds
      or Subsequent Recoveries, including but not limited to, any funds on deposit
      in
      the Protected Account maintained by the Company, shall be held by the Company
      for and on behalf of the Trustee and shall be and remain the sole and exclusive
      property of the Trustee, subject to the applicable provisions of this Agreement.
      The Company also agrees that it shall not create, incur or subject any Mortgage
      File or any funds that are deposited in the Protected Account maintained by
      the
      Company or in any Escrow Account, or any funds that otherwise are or may become
      due or payable to the Trustee for the benefit of the Certificateholders, to
      any
      claim, lien, security interest, judgment, levy, writ of attachment or other
      encumbrance, or assert by legal action or otherwise any claim or right of set
      off against any Mortgage File or any funds collected on, or in connection with,
      an EMC Mortgage Loan, except, however, that the Company shall be entitled to
      set
      off against and deduct from any such funds any amounts that are properly due
      and
      payable to the Company under this Agreement.

     

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

     

    Section
      3.05  Optional
      Purchase of Certain Mortgage Loans. 

     

    With
      respect to any Mortgage Loan which as of the first day of a Fiscal Quarter
      is
      delinquent in payment by 90 days or more or is an REO Property, EMC shall have
      the right to purchase any such Mortgage Loan or REO Property from the Trust
      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 Fiscal 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 Fiscal
      Quarter.

     

    If
      at any
      time EMC remits to the Master Servicer a payment for deposit in the Master
      Servicer Collection
      Account
      covering the amount of the Purchase Price for such a Mortgage Loan, and EMC
      provides to the Master Servicer and Trustee an Officer’s Certificate stating
      that the amount of such payment has been deposited in the Master
      Servicer Collection
      Account,
      then the Trustee shall execute the assignment of such Mortgage Loan prepared
      and
      delivered to the Trustee, at the request of EMC, without recourse,
      representation or warranty, to EMC which shall succeed to all the 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. EMC will thereupon own such Mortgage, and all such security
      and documents, free of any further obligation to the Trustee or the
      Certificateholders with respect thereto.

     

    Section
      3.06  Release
      of Mortgage Files. 

     

    (a)  Upon
      becoming aware of the payment in full of any Mortgage Loan, or the receipt
      by
      the Company or the related Servicer of a notification that payment in full
      has
      been escrowed in a manner customary for such purposes for payment to
      Certificateholders on the next Distribution Date, the Company or a Servicer
      (pursuant to the related Servicing Agreement), as applicable, will (or if the
      Company or the related Servicer does not, the Master Servicer may), promptly
      furnish to the Custodian, on behalf of the Trustee, two copies of a
      certification substantially in the form of Exhibit G hereto signed by a
      Servicing Officer or Master Servicing Officer (as applicable) or in a mutually
      agreeable electronic format which will, in lieu of a signature on its face,
      originate from a Servicing Officer or Master 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
      Protected Account maintained by the Company pursuant to Article V or by the
      related Servicer pursuant to the related Servicing Agreement have been or will
      be so deposited) and shall request that the Custodian, on behalf of the Trustee,
      deliver to the Company or the related Servicer or the Master Servicer the
      related Mortgage File. Upon receipt of such certification and request, the
      Custodian, on behalf of the Trustee, shall promptly release the related Mortgage
      File to the Company or the related Servicer or the Master Servicer and the
      Trustee and Custodian shall have no further responsibility with regard to such
      Mortgage File. Upon any such payment in full, the Company, the Master Servicer
      or the related Servicer (as applicable) is authorized, to give, as agent for
      the
      Trustee as the mortgagee under the Mortgage that secured the Mortgage Loan,
      an
      instrument of satisfaction (or assignment of mortgage without recourse,
      representation or warranty) 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 Protected Account.

     

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

     

    Section
      3.07  Maintenance
      of Hazard Insurance. 

     

    The
      Company shall cause to be maintained, for each EMC Mortgage Loan, hazard
      insurance on buildings upon, or comprising part of, the Mortgaged Property
      against loss by fire, hazards of extended coverage and such other hazards as
      are
      customary in the area where the related Mortgaged Property is located with
      an
      insurer which is licensed to do business in the state where the related
      Mortgaged Property is located. Each such policy of standard hazard insurance
      shall contain, or have an accompanying endorsement that contains, a standard
      mortgagee clause. The Company shall also cause flood insurance to be maintained
      on property acquired upon foreclosure or deed in lieu of foreclosure of any
      EMC
      Mortgage Loan, to the extent described below. Pursuant to Section 5.01, any
      amounts collected by the Company under any such policies (other than the amounts
      to be applied to the restoration or repair of the related Mortgaged Property
      or
      property thus acquired or amounts released to the Mortgagor in accordance with
      the Company’s normal servicing procedures) shall be deposited in the Protected
      Account maintained by the Company. Any cost incurred by the Company in
      maintaining any such insurance shall not, for the purpose of calculating monthly
      distributions to the Certificateholders or remittances to the Securities
      Administrator for their benefit, be added to the principal balance of the
      Mortgage Loan, notwithstanding that the terms of the EMC Mortgage Loan so
      permit. Such costs shall be recoverable by the Company out of late payments
      by
      the related Mortgagor or out of Liquidation Proceeds to the extent permitted
      by
      Section 5.02. It is understood and agreed that no earthquake or other additional
      insurance is to be required of any Mortgagor or maintained on property acquired
      in respect of a Mortgage other than pursuant to such applicable laws and
      regulations as shall at any time be in force and as shall require such
      additional insurance. If the Mortgaged Property is located at the time of
      origination of the related EMC Mortgage Loan in a federally designated special
      flood hazard area and such area is participating in the national flood insurance
      program, the Company shall cause flood insurance to be maintained with respect
      to such EMC Mortgage Loan. Such flood insurance shall be in an amount equal
      to
      the least of (i) the Stated Principal Balance of the related EMC Mortgage Loan,
      (ii) minimum amount required to compensate for damage or loss on a replacement
      cost basis or (iii) the maximum amount of such insurance available for the
      related Mortgaged Property under the Flood Disaster Protection Act of 1973,
      as
      amended.

     

    In
      the
      event that the Company shall obtain and maintain a blanket policy insuring
      against hazard losses on all of the EMC Mortgage Loans, it shall conclusively
      be
      deemed to have satisfied its obligations as set forth in the first sentence
      of
      this Section 3.07, it being understood and agreed that such policy may contain
      a
      deductible clause on terms substantially equivalent to those commercially
      available and maintained by comparable servicers. If such policy contains a
      deductible clause, the Company shall, in the event that there shall not have
      been maintained on the related Mortgaged Property a policy complying with the
      first sentence of this Section 3.07, and there shall have been a loss that
      would
      have been covered by such policy, deposit in the Protected Account maintained
      by
      the Company the amount not otherwise payable under the blanket policy because
      of
      such deductible clause. Such deposit shall be from the Company’s own funds
      without reimbursement therefor. In connection with its activities as
      administrator and servicer of the EMC Mortgage Loans, the Company agrees to
      present, on behalf of itself and the Trustee for the benefit of the
      Certificateholders claims under any such blanket policy.

     

    Section
      3.08  Presentment
      of Claims and Collection of Proceeds. 

     

    The
      Company shall prepare and present on behalf of the Trustee and the
      Certificateholders all claims under the Required Insurance Policies relating
      to
      the EMC 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 Required Insurance Policies. Any
      proceeds disbursed to the Company in respect of such Required Insurance Policies
      shall be promptly deposited in the Protected Account maintained by the Company
      upon receipt, except that any amounts that are to be applied upon receipt to
      the
      repair or restoration of the related Mortgaged Property, which repair or
      restoration the owner of such Mortgaged Property or EMC, as applicable, has
      agreed to make as a condition precedent to the presentation of its claims on
      the
      related EMC Mortgage Loan under the applicable Insurance Policy, need not be
      so
      deposited (or remitted). 

     

    Section
      3.09  Books
      and
      Records.

     

    The
      Company shall be responsible for maintaining, and shall maintain, a complete
      set
      of books and records for the EMC Mortgage Loans which shall be appropriately
      identified in the Company’s computer system to clearly reflect the ownership of
      the EMC Mortgage Loans by the Trust. In particular, the Company shall maintain
      in its possession, available for inspection by the Master Servicer, the
      Securities Administrator and the Trustee and shall deliver to the Master
      Servicer, the Securities Administrator and the Trustee upon demand, evidence
      of
      compliance with all federal, state and local laws, rules and regulations. The
      Trustee, the Securities Administrator and the Master Servicer, and any
      governmental or regulatory agency with jurisdiction over the Trustee, the
      Securities Administrator or the Master Servicer, as applicable, shall have
      the
      right, upon reasonable advance notice to the Company, to inspect and examine
      the
      books and records of the Company. To the extent that original documents are
      not
      required for purposes of realization of Liquidation Proceeds or Insurance
      Proceeds, documents maintained by the Company may be in the form of microfilm
      or
      microfiche or such other reliable means of recreating original documents,
      including, but not limited to, optical imagery techniques so long as the Company
      complies with the requirements of Accepted Servicing Practices. During the
      term
      of this Agreement, the Company shall, upon reasonable advance notice, make
      available a Servicing Officer to the Master Servicer for answering questions
      and
      responding to inquiries. 

     

    The
      Company shall maintain with respect to each EMC Mortgage Loan and shall make
      available for inspection by the Master Servicer, the Securities Administrator
      and the Trustee the related servicing file during the time such EMC Mortgage
      Loan is subject to this Agreement and thereafter in accordance with applicable
      law.

     

    Payments
      on the Mortgage Loans, including any payoffs, made in accordance with the
      related Mortgage File will be entered in the Company’s set of books and records
      no more than two business days after receipt and identification, and allocated
      to principal or interest as specified in the related Mortgage File.

     

    Section
      3.10  Custodians
      to Retain Possession of Certain Insurance Policies and Documents.

     

    The
      related Custodian on behalf of the Trustee, shall retain possession and custody
      of the originals (to the extent available) of any certificate of insurance
      if
      applicable, and any certificates of renewal as to the foregoing as may be issued
      from time to time as contemplated by this Agreement. Until all amounts
      distributable in respect of the Certificates have been distributed in full
      and
      the Company or the related Servicer, as applicable otherwise has fulfilled
      its
      obligations under this Agreement or the related Servicing Agreement, as
      applicable, the related Custodian on behalf of the 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 Company shall promptly deliver
      or cause to be delivered to the related Custodian on behalf of the Trustee,
      upon
      the execution or receipt thereof the originals of any certificates of renewal,
      and such other documents or instruments that constitute portions of the Mortgage
      File that come into the possession of the Company from time to
      time.

     

    Section
      3.11  Fidelity
      Bond, Errors and Omissions Insurance. 

     

    The
      Company shall maintain, at its own expense, a blanket fidelity bond and an
      errors and omissions insurance policy, with broad coverage with responsible
      companies on all officers, employees or other persons acting in any capacity
      with regard to the EMC Mortgage Loans and who handle funds, money, documents
      and
      papers relating to the EMC Mortgage Loans. The fidelity bond and errors and
      omissions insurance shall be in the form of the Mortgage Banker’s Blanket Bond
      and shall protect and insure the Company against losses, including forgery,
      theft, embezzlement, fraud, errors and omissions and negligent acts of such
      persons. Such fidelity bond shall also protect and insure the Company against
      losses in connection with the failure to maintain any insurance policies
      required pursuant to this Agreement and the release or satisfaction of an EMC
      Mortgage Loan which is not in accordance with Accepted Servicing Practices.
      No
      provision of this Section 3.11 requiring the fidelity bond and errors and
      omissions insurance shall diminish or relieve the Company from its duties and
      obligations as set forth in this Agreement. The minimum coverage under any
      such
      bond and insurance policy shall be at least equal to the corresponding amounts
      required by Accepted Servicing Practices. The Company shall deliver to the
      Master Servicer annually (together with the Company’s Annual Statement of
      Compliance required under Section 3.16 hereof) a certificate from the surety
      and
      the insurer as to the existence of the fidelity bond and errors and omissions
      insurance policy (along with a copy of such policy then in effect) and shall
      obtain a statement from the surety and the insurer that such fidelity bond
      or
      insurance policy shall in no event be terminated or materially modified without
      thirty days prior written notice to the Master Servicer and the Trustee. The
      Company shall notify the Master Servicer, the Securities Administrator and
      the
      Trustee in writing within five business days of receipt of notice that such
      fidelity bond or insurance policy will be, or has been, materially modified
      or
      terminated. The Trustee for the benefit of the Certificateholders must be named
      as loss payees on the fidelity bond and as additional insured on the errors
      and
      omissions policy.

     

    Section
      3.12  Realization
      Upon Defaulted Mortgage Loans; Determination of Excess Liquidation Proceeds
      and
      Realized Losses; Repurchases of Certain Mortgage Loans. 

     

    (a)  The
      Company shall use reasonable efforts to foreclose upon or otherwise comparably
      convert the ownership of properties securing such of the EMC Mortgage Loans
      as
      come into and continue in default and as to which no satisfactory arrangements
      can be made for collection of delinquent payments. In connection with such
      foreclosure or other conversion, the Company shall follow such practices and
      procedures as it shall deem necessary or advisable and as shall be normal and
      usual in its general mortgage servicing activities and the requirements of
      the
      insurer under any Required Insurance Policy; provided that the Company shall
      not
      be required to expend its own funds in connection with any foreclosure or
      towards the restoration of any property unless it shall determine (i) that
      such
      restoration and/or foreclosure will increase the proceeds of liquidation of
      the
      EMC Mortgage Loan after reimbursement to itself of such expenses and (ii) that
      such expenses will be recoverable to it through Insurance Proceeds or
      Liquidation Proceeds (respecting which it shall have priority for purposes
      of
      withdrawals from the Protected Account maintained by the Company pursuant to
      Section 5.02). If the Company reasonably believes that Liquidation Proceeds
      with
      respect to any such EMC Mortgage Loan would not be increased as a result of
      such
      foreclosure or other action, such EMC Mortgage Loan will be charged-off and
      will
      become a Liquidated Loan. The Company will give notice of any such charge-off
      and related Final Recovery Determination to the Trustee and the Master Servicer
      pursuant to Section 5.03. The Company shall be responsible for all other costs
      and expenses incurred by it in any such proceedings; provided that such costs
      and expenses shall be Servicing Advances and that it shall be entitled to
      reimbursement thereof from the proceeds of liquidation of the related Mortgaged
      Property, as contemplated in Section 5.02. If the Company has knowledge that
      a
      Mortgaged Property that the Company is contemplating acquiring in foreclosure
      or
      by deed- in-lieu of foreclosure is located within a one-mile radius of any
      site
      with environmental or hazardous waste risks known to the Company, the Company
      will, prior to acquiring the related Mortgaged Property, consider such risks
      and
      only take action in accordance with its established environmental review
      procedures. 

     

    With
      respect to any REO Property relating to an EMC Mortgage Loan, the deed or
      certificate of sale shall be taken in the name of the Trustee for the benefit
      of
      the Certificateholders (or the Trustee’s nominee on behalf of the
      Certificateholders). The Trustee’s name shall be placed on the title to such REO
      Property solely as the Trustee hereunder and not in its individual capacity.
      The
      Company shall ensure that the title to such REO Property references this
      Agreement and the Trustee’s capacity hereunder. Pursuant to its efforts to sell
      such REO Property, the Company shall either itself or through an agent selected
      by the Company protect and conserve such REO Property in the same manner and
      to
      such extent as is customary in the locality where such REO Property is located
      and may, incident to its conservation and protection of the interests of the
      Certificateholders, rent the same, or any part thereof, as the Company deems
      to
      be in the best interest of the Company and the Certificateholders for the period
      prior to the sale of such REO Property. The Company shall prepare for and
      deliver to the Trustee, the Master Servicer and the Securities Administrator
      a
      statement with respect to each such REO Property that has been rented showing
      the aggregate rental income received and all expenses incurred in connection
      with the management and maintenance of such REO Property at such times as is
      necessary to enable the Securities Administrator to comply with the reporting
      requirements of the REMIC Provisions. The net monthly rental income, if any,
      from such REO Property shall be deposited in the Protected Account maintained
      by
      the Company no later than the close of business on each Determination Date.
      The
      Company shall perform the tax reporting and withholding related to foreclosures,
      abandonments and cancellation of indebtedness income as specified by Sections
      1445, 6050J and 6050P of the Code by preparing and filing such tax and
      information returns, as may be required.

     

    In
      the
      event that the Trust Fund acquires any Mortgaged Property as aforesaid or
      otherwise in connection with a default or reasonably foreseeable default on
      an
      EMC Mortgage Loan, the Company shall dispose of such Mortgaged Property prior
      to
      three years after its acquisition by the Trust Fund or, at the expense of the
      Trust Fund, request more than 60 days prior to the day on which such three-year
      period would otherwise expire, an extension of the three-year grace period
      unless the Trustee and the Securities Administrator shall have been supplied
      with an Opinion of Counsel addressed to the Trustee and the Securities
      Administrator (such opinion not to be an expense of the Trustee or the
      Securities Administrator) to the effect that the holding by the Trust Fund
      of
      such Mortgaged Property subsequent to such three-year period will not result
      in
      the imposition of taxes on “prohibited transactions” of REMIC I, REMIC II, REMIC
      III, REMIC IV or REMIC V as defined in Section 860F of the Code or cause any
      of
      REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V to fail to qualify as a REMIC
      at any time that any Certificates are outstanding, in which case the Trust
      Fund
      may continue to hold such Mortgaged Property (subject to any conditions
      contained in such Opinion of Counsel). Notwithstanding any other provision
      of
      this Agreement, no Mortgaged Property acquired by the Trust Fund shall be rented
      (or allowed to continue to be rented) or otherwise used for the production
      of
      income by or on behalf of the Trust Fund in such a manner or pursuant to any
      terms that would (i) cause such Mortgaged Property to fail to qualify as
“foreclosure property” within the meaning of Section 860G(a)(8) of the Code or
      (ii) subject any of REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V to the
      imposition of any federal, state or local income taxes on the income earned
      from
      such Mortgaged Property under Section 860G(c) of the Code or otherwise, unless
      the Company has agreed to indemnify and hold harmless the Trust Fund with
      respect to the imposition of any such taxes.

     

    The
      decision of the Company to foreclose on a defaulted EMC Mortgage Loan shall
      be
      subject to a determination by the Company that the proceeds of such foreclosure
      would exceed the costs and expenses of bringing such a proceeding. The income
      earned from the management of any Mortgaged Properties acquired through
      foreclosure or other judicial proceeding, net of reimbursement to the Company
      for expenses incurred (including any property or other taxes) in connection
      with
      such management and net of unreimbursed Servicing Fees, Advances, Servicing
      Advances and any management fee paid or to be paid with respect to the
      management of such Mortgaged Property, shall be applied to the payment of
      principal of, and interest on, the related defaulted EMC Mortgage Loans (with
      interest accruing as though such Mortgage Loans were still current) and all
      such
      income shall be deemed, for all purposes in the Agreement, to be payments on
      account of principal and interest on the related Mortgage Notes and shall be
      deposited into the Protected Account maintained by the Company. To the extent
      the income received during a Prepayment Period is in excess of the amount
      attributable to amortizing principal and accrued interest at the related
      Mortgage Rate on the related EMC Mortgage Loan, such excess shall be considered
      to be a partial Principal Prepayment for all purposes hereof.

     

    The
      Liquidation Proceeds from any liquidation of a related EMC Mortgage Loan, net
      of
      any payment to the Company as provided above, shall be deposited in the
      Protected Account upon
      receipt and made available on
      the
      next succeeding Determination Date following receipt thereof for distribution
      on
      the related Distribution Date, except that any Excess Liquidation Proceeds
      shall
      be retained by the Company as additional servicing compensation.

     

    The
      proceeds of any Liquidated Loan, as well as any recovery resulting from a
      partial collection of related Liquidation Proceeds or any income from a an
      REO
      Property, will be applied in the following order of priority: first, to
      reimburse the Company and the Master Servicer for any related unreimbursed
      Servicing Advances, Master Servicing Fees and Servicing Fees, pursuant to
      Section 5.02 or this Section 3.12; second, to reimburse the Company and the
      Master Servicer for any unreimbursed Advances, pursuant to Section 5.02 or
      this
      Section 3.12; third, to accrued and unpaid interest (to the extent no Advance
      has been made for such amount) on the EMC Mortgage Loan or related REO Property,
      at the Net Mortgage Rate to the first day of the month in which such amounts
      are
      required to be distributed; and fourth, as a recovery of principal of the EMC
      Mortgage Loan.

     

    (b)  On
      each
      Determination Date, the Company shall determine the respective aggregate amounts
      of Excess Liquidation Proceeds and Realized Losses, if any, for the related
      Prepayment Period.

     

    (c)  The
      Company has no intent to foreclose on any EMC Mortgage Loan based on the
      delinquency characteristics as of the Closing Date; provided, that the foregoing
      does not prevent the Company from initiating foreclosure proceedings on any
      date
      hereafter if the facts and circumstances of such EMC Mortgage Loans including
      delinquency characteristics in the Company’s discretion so warrant such
      action.

     

    Section
      3.13  Servicing
      Compensation. 

     

    As
      compensation for its activities hereunder, the Company shall be entitled to
      retain or withdraw from the Protected Account out of each payment of interest
      on
      an EMC Mortgage Loan included in the Trust Fund an amount equal to the Servicing
      Fee.

     

    Additional
      servicing compensation in the form of any Excess Liquidation Proceeds,
      assumption fees, other ancillary income, late payment charges, all Prepayment
      Interest Excess on any EMC Mortgage Loan, all income and gain net of any losses
      realized from Permitted Investments with respect to funds in or credited to
      the
      Protected Account maintained by the Company shall be retained by the Company
      to
      the extent not required to be deposited in the Protected Account maintained
      by
      the Company pursuant to Section 5.02. The Company shall be required to pay
      all
      expenses incurred by it in connection with its servicing activities hereunder
      (including payment of any premiums for hazard insurance, as required by Section
      3.07) and shall not be entitled to reimbursement therefor except as specifically
      provided in Section 5.02.

     

    Section
      3.14  REO
      Property. 

     

    (a)  In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      related EMC Mortgage Loan, the deed or certificate of sale shall be issued
      to
      the Trustee, or to its nominee, on behalf of the related Certificateholders.
      The
      Company shall sell any such REO Property as expeditiously as possible and in
      accordance with the provisions of this Agreement. Pursuant to its efforts to
      sell such REO Property, the Company shall protect and conserve such REO Property
      in the manner and to the extent required herein, in accordance with the REMIC
      Provisions.

     

    (b)  The
      Company shall deposit all funds collected and received in connection with the
      operation of any REO Property in respect of any EMC Mortgage Loan into the
      Protected Account maintained by the Company.

     

    (c)  The
      Company and the Master Servicer (as applicable), upon the final disposition
      of
      any REO Property in respect of any EMC Mortgage Loan, shall be entitled to
      reimbursement for any related unreimbursed Advances, unreimbursed Servicing
      Advances, Servicing Fees and Master Servicing Fees from Liquidation Proceeds
      received in connection with the final disposition of such REO Property;
      provided, that any such unreimbursed Advances, unreimbursed Servicing Advances,
      Servicing Fees or Master Servicing Fees as well as any unpaid Servicing Fees
      and
      Master 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.

     

    Section
      3.15  Liquidation
      Reports. 

     

    Upon
      the
      foreclosure of any Mortgaged Property relating to an EMC Mortgage Loan or the
      acquisition thereof by the Trust Fund pursuant to a deed-in-lieu of foreclosure,
      the Company shall submit a liquidation report to the Master Servicer containing
      such information as shall be mutually acceptable to the Company and the Master
      Servicer with respect to such Mortgaged Property.

     

    Section
      3.16  Annual
      Statement as to Compliance. 

     

    The
      Company, the Master Servicer and the Securities Administrator shall each deliver
      to the Securities Administrator and the Depositor, not later than March
      15th
      of each
      calendar year beginning in 2007, an Officer’s Certificate (an “Annual Statement
      of Compliance”) stating, as to each signatory thereof, that (i) a review of the
      activities of each such party during the preceding calendar year and of its
      performance under this Agreement and/or other applicable servicing agreement
      has
      been made under such officer’s supervision and (ii) to the best of such
      officer’s knowledge, based on such review, each such party has fulfilled all of
      its obligations under this Agreement and/or other applicable servicing agreement
      in all material respects throughout such year, or, if there has been a failure
      to fulfill any such obligation in any material respect, specifying each such
      failure known to such officer and the nature and status thereof. Such Annual
      Statement of Compliance shall contain no restrictions or limitations on its
      use.
      In the event that the Company, the Securities Administrator or the Master
      Servicer has delegated any servicing responsibilities with respect to the
      Mortgage Loans to a subservicer or subcontractor, such subservicer or
      subcontractor shall be directed by such delegating party to deliver a similar
      Annual Statement of Compliance (with respect to any related servicing
      agreement), to the Securities Administrator and the Depositor as described
      above
      as and when required with respect to the Company, the Master Servicer and the
      Securities Administrator.

     

    Failure
      of the Master Servicer to comply with this Section 3.16 (including with respect
      to the time frames required in this Section) shall be deemed an Event of Default
      with respect to such party, and the Trustee at the direction of the Depositor,
      shall, in addition to whatever rights the Trustee may have under this Agreement
      and at law or in equity or to damages, including injunctive relief and specific
      performance, upon notice immediately terminate all of the rights and obligations
      of the Master Servicer under this Agreement and in and to the Mortgage Loans
      and
      the proceeds thereof without compensating the Master Servicer for the same.
      Failure of the Company to comply with this Section 3.16 (including with respect
      to the timeframes required in this Section) shall be deemed a Company Default
      and the Master Servicer shall, in addition to whatever rights the Master
      Servicer may have under this Agreement and at law or in equity or to damages,
      including injunctive relief and specific performance, upon notice immediately
      terminate all of the rights and obligations of the Company under this Agreement
      and in and to the Mortgage Loans and the proceeds thereof without compensating
      the Company for the same. Failure of the Securities Administrator to comply
      with
      this Section 3.16 (including with respect to the time frames required in this
      Section) shall be deemed a default and the Trustee at the direction of the
      Depositor shall, in addition to whatever rights the Trustee may have under
      this
      Agreement and at law or in equity or to damages, including injunctive relief
      and
      specific performance, upon notice immediately terminate all of the rights and
      obligations of the Securities Administrator under this Agreement and in and
      to
      the Mortgage Loans and the proceeds thereof without compensating the Securities
      Administrator for the same. This paragraph shall supersede any other provision
      in this Agreement or any other agreement to the contrary.

     

    In
      the
      event the Company, the Master Servicer, the Securities Administrator or any
      subservicer or subcontractor engaged by either such party is terminated or
      resigns pursuant to the terms of the Agreement, or any other applicable
      agreement in the case of a subservicer or subcontractor, as the case may be,
      such party shall provide an Annual Statement of Compliance pursuant to this
      Section 3.16 or to the related section of such other applicable agreement,
      as
      the case may be, as to the performance of its obligations with respect to the
      period of time it was subject to this Agreement or any other applicable
      agreement, as the case may be notwithstanding any such termination or
      resignation.

     

    Section
      3.17  Assessments
      of Compliance and Attestation Reports. 

     

    Pursuant
      to Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation
      AB,
      the Company, the Master Servicer, the Securities Administrator and each
      Custodian (each, an “Attesting Party”) at its own expense shall each deliver to
      the Securities Administrator and the Depositor on or before March 15th
      of
      each
      calendar year beginning in 2007, a report signed by an authorized officer of
      such party regarding such Attesting Party’s Assessment of Compliance (an
“Assessment of Compliance”) with the Servicing Criteria during the preceding
      calendar year. The Assessment of Compliance, as set forth in Regulation AB,
      must
      contain the following:

     

    (a)  A
      statement by such officer of its responsibility for assessing compliance with
      the Servicing Criteria applicable to the related Attesting Party;

     

    (b)  A
      statement by such officer that such Attesting Party used the Servicing Criteria
      attached as Exhibit O hereto, and which will also be attached to the Assessment
      of Compliance, to assess compliance with the Servicing Criteria applicable
      to
      the related Attesting Party;

     

    (c)  An
      assessment by such officer of the related Attesting Party’s compliance with the
      applicable Servicing Criteria for the period consisting of the preceding
      calendar year, including disclosure of any material instance of noncompliance
      with respect thereto during such period, which assessment shall be based on
      the
      activities such Attesting Party performs with respect to asset-backed securities
      transactions taken as a whole involving the related Attesting Party, that are
      backed by the same asset type as the Mortgage Loans;

     

    (d)  A
      statement that a registered public accounting firm has issued an Attestation
      Report on the related Attesting Party’s Assessment of Compliance for the period
      consisting of the preceding calendar year; and

     

    (e)  A
      statement as to which of the Servicing Criteria, if any, are not applicable
      to
      such Attesting Party, which statement shall be based on the activities such
      Attesting Party performs with respect to asset-backed securities transactions
      taken as a whole involving such Attesting Party, that are backed by the same
      asset type as the Mortgage Loans.

     

    Such
      report at a minimum shall address each of the Servicing Criteria specified
      on
      Exhibit O hereto which are indicated as applicable to the related Attesting
      Party.

     

    Notwithstanding
      the foregoing, as to the Securities Administrator and any Custodian, an
      Assessment of Compliance is not required to be delivered unless it is required
      as part of a Form 10-K with respect to the Trust Fund.

     

    On
      or
      before March 15th of each calendar year beginning in 2007, each Attesting Party
      shall furnish to the Securities Administrator and the Depositor a report (an
      “Attestation Report”) by a registered public accounting firm that attests to,
      and reports on, the Assessment of Compliance made by the related Attesting
      Party, as required by Rules 13a-18 and 15d-18 of the Exchange Act and Item
      1122(b) of Regulation AB, which Attestation Report must be made in accordance
      with standards for Attestation Reports issued or adopted by the Public Company
      Accounting Oversight Board. 

     

    Each
      of
      the Company, the Securities Administrator and the Master Servicer shall cause
      any subservicer and each subcontractor determined by it to be “participating in
      the servicing function” within the meaning of Item 1122 of Regulation AB, to
      deliver to the Securities Administrator and the Depositor an Assessment of
      Compliance and Attestation Report as and when provided above along with an
      indication of what Servicing Criteria are addressed in such
      assessment.

     

    Such
      Assessment of Compliance, as to any subservicer, shall at a minimum address
      each
      of the Servicing Criteria specified on Exhibit O hereto which are indicated
      as
      applicable to any “primary servicer.” The Securities Administrator shall confirm
      that the assessments, taken as a whole, address all of the Servicing Criteria
      and taken individually address the Servicing Criteria for each party as set
      forth on Exhibit O and notify the Depositor of any exceptions. Notwithstanding
      the foregoing, as to any subcontractor (as defined in the related servicing
      agreement), an Assessment of Compliance is not required to be delivered unless
      it is required as part of a Form 10-K with respect to the Trust
      Fund.

     

    In
      addition, for the avoidance of doubt and without duplication, the Company as
      a
      Servicer shall (and shall cause each subservicer engaged by it to) provide
      to
      the Depositor and the Securities Administrator information concerning the
      following: (A) any Company Default hereunder and any subservicer event of
      default under the terms of the related Subservicing Agreement, (B) any merger,
      consolidation or sale of substantially all of the assets of the Company or,
      to
      the best of the Company’s knowledge, any such subservicer, and (C) the Company’s
      entry into an agreement with a subservicer to perform or assist in the
      performance of any of the Company’s obligations as Servicer. 

     

    In
      addition, the Company as a Servicer, shall cause each subservicer engaged by
      it
      to provide the following information to the Depositor and the Securities
      Administrator, to the extent applicable, within the timeframes that the Company
      would otherwise have to provide such information:

     

    (A) any
      material modifications, extensions or waivers of pool asset terms, fees,
      penalties or payments during the distribution period or that have cumulatively
      become material over time (Item 1121(a)(11) of Regulation AB);

     

    (B) information
      regarding material breaches of pool asset representations or warranties or
      transaction covenants (Item 1121(a)(12) of Regulation AB); and

     

    (C) information
      regarding new asset-backed securities issuances backed by the same pool assets,
      any pool asset changes (such as, additions, substitutions or repurchases),
      and
      any material changes in origination, underwriting or other criteria for
      acquisition or selection of pool assets (Item 1121(a)(14) of Regulation
      AB).

     

    Failure
      of the Master Servicer or the Company, as applicable, to comply with this
      Section 3.17 (including with respect to the timeframes required in this Section)
      shall be deemed an Event of Default with respect to the Master Servicer and
      a
      Company Default with respect to the Company, and the Master Servicer or the
      Trustee at the direction of the Depositor shall, in addition to whatever rights
      the Master Servicer or the Trustee, as applicable, may have under this Agreement
      and at law or in equity or to damages, including injunctive relief and specific
      performance, upon notice immediately terminate all the rights and obligations
      of
      the applicable party under this Agreement and in and to the Mortgage Loans
      and
      the proceeds thereof without compensating the applicable party for the same.
      This paragraph shall supersede any other provision in this Agreement or any
      other agreement to the contrary.

     

    In
      the
      event the Company, the Master Servicer, each Custodian, the Securities
      Administrator or any subservicer or subcontractor engaged by any such party
      is
      terminated, assigns its rights and obligations under, or resigns pursuant to,
      the terms of the Agreement, the related Custodial Agreement, or any other
      applicable agreement in the case of a subservicer or subcontractor, as the
      case
      may be, such party shall provide an Assessment of Compliance and cause to be
      provided an Attestation Report pursuant to this Section 3.17 or to the related
      section of such other applicable agreement, as the case may be, notwithstanding
      any such termination, assignment or resignation.

     

    Section
      3.18  Reports
      Filed with Securities and Exchange Commission.

     

    (a)  (i)Within
      15
      days after each Distribution Date (subject to permitted exceptions under the
      Exchange Act), the Securities Administrator shall, in accordance with industry
      standards, prepare and file with the Commission via the Electronic Data
      Gathering and Retrieval System (“EDGAR”), a Form 10-D, signed by the Master
      Servicer, with a copy of the Monthly Statement to be furnished by the Securities
      Administrator to the Certificateholders for such Distribution Date attached
      thereto; provided that the Securities Administrator shall have received no
      later
      than seven (7) calendar days after the related Distribution Date, all
      information required to be provided to the Securities Administrator as described
      in clause (a)(ii) below. Any disclosure in addition to the Monthly Statement
      that is required to be included on Form 10-D (“Additional Form 10-D Disclosure”)
shall
      be
      reported by the parties set forth on Exhibit P and by the Trustee to the
      Securities Administrator and the Depositor and approved by the Depositor
      pursuant to the paragraph immediately below, and the Securities Administrator
      will have no duty or liability for any failure hereunder to determine or prepare
      any Additional Form 10-D Disclosure absent such reporting (other than with
      respect to when it is the reporting party as set forth in Exhibit P) and
      approval.

     

    (ii)  (A)
      Within seven (7) calendar days after the related Distribution Date, (i) the
      parties set forth in Exhibit P and the Trustee shall be required to provide,
      pursuant to section 3.18(a)(v) below, to the Securities Administrator and the
      Depositor, to the extent known by a responsible officer thereof, in
      EDGAR-compatible format, or in such other format as otherwise agreed upon by
      the
      Securities Administrator and the Depositor and such party, the form and
      substance of any Additional Form 10-D Disclosure, if applicable, 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.
Subject
      to the foregoing, the Securities Administrator has no duty under this Agreement
      to monitor or enforce the performance by the other parties listed on Exhibit
      P
      or by the Trustee of their duties under this paragraph or to proactively solicit
      or procure from such parties any Additional Form 10-D Disclosure information.
      The Depositor will be responsible for any reasonable out-of-pocket expenses
      incurred by the Securities
      Administrator in connection with including any Additional Form 10-D Disclosure
      on Form 10-D pursuant to this Section. 

     

    After
      preparing the Form 10-D, the Securities Administrator shall forward
      electronically a draft copy of the Form 10-D to the Depositor and the Master
      Servicer for review. No later than two (2) Business Days prior to the 15th
      calendar day after the related Distribution Date, a duly authorized officer
      of
      the Master Servicer shall sign the Form 10-D and return an electronic or fax
      copy of such signed Form 10-D (with an original executed hard copy to follow
      by
      overnight mail) to the Securities Administrator. If a Form 10-D cannot be filed
      on time or if a previously filed Form 10-D needs to be amended, the Securities
      Administrator will follow the procedures set forth in Section 3.18(a)(vi).
      Promptly (but no later than one (1) Business Day) after filing with the
      Commission, the Securities Administrator will make available on its internet
      website identified in Section 6.06 a final executed copy of each Form 10-D.
      The
      signing party at the Master Servicer can be contacted as set forth in Section
      12.05. 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 shall notify the
      Securities Administrator in writing, no later than the fifth calendar day after
      the related Distribution Date with respect to the filing of a report on Form
      10-D, if the answer to either question should be "no." The Securities
      Administrator shall be entitled to rely on the representations made by the
      Depositor in Section 2.04(vi) in preparing, executing and/or filing any such
      Form 10-D. 

    

    (B)  The
      parties to this Agreement acknowledge that the performance by the Securities
      Administrator of its duties under Sections 3.18(a)(i) and (vi) related to the
      timely preparation and filing of Form 10-D is contingent upon such parties
      strictly observing all applicable deadlines in the performance of their duties
      under such Sections. The parties to this Agreement acknowledge that the
      performance by each of the Master Servicer and the Securities Administrator
      of
      its duties under this Section 3.18(a)(ii) related to the timely preparation,
      execution and filing of Form 10-D is also contingent upon the Servicers, the
      Custodians and any subservicers or subcontractors strictly observing deadlines
      no later than those set forth in this paragraph that are applicable to the
      parties to this Agreement in the delivery to the Securities Administrator of
      any
      necessary Additional Form 10-D Disclosure pursuant to the related Servicing
      Agreements, Custodial Agreements or any other applicable agreement. The
      Securities Administrator shall have no liability for any loss, expense, damage
      or claim arising out of or with respect to any failure to properly prepare
      and/or timely file such Form 10-D, where such failure results from the failure
      of any party hereto to deliver on a timely basis, any information needed by
      the
      Securities Administrator to prepare, arrange for execution or file such Form
      10-D. 

     

    (iii)  (A)
      Within four (4) Business Days after the occurrence of an event requiring
      disclosure on Form 8-K (each such event, a “Reportable Event”), the Securities
      Administrator shall prepare and file, on behalf of the Trust, at the direction
      of the Depositor, any Form 8-K, as required by the Exchange Act; provided that,
      the Depositor shall file the initial Form 8-K in connection with the issuance
      of
      the Certificates. Any disclosure or information related to a Reportable Event
      or
      that is otherwise required to be included on Form 8-K (“Form 8-K Disclosure
      Information”) shall be, pursuant to the paragraph immediately below, reported by
      the parties set forth on Exhibit P and by the Trustee to the Securities
      Administrator and the Depositor 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 8-K Disclosure absent such reporting (other than with respect
      to
      when it is the reporting party as set forth in Exhibit P) and
      approval.

     

    (B)  For
      so
      long as the Trust is subject to the Exchange Act reporting requirements, (i)
      no
      later than 12:00 p.m. New York City time on the 2nd Business Day after the
      occurrence of a Reportable Event the parties set forth in Exhibit P and the
      Trustee shall be required pursuant to Section 3.18(a)(v) below to provide to
      the
      Securities Administrator and the Depositor, to the extent known by a responsible
      officer thereof, in EDGAR-compatible format, or in such other form as otherwise
      agreed upon by the Securities Administrator and the Depositor and such party,
      the form and substance of any Form 8-K Disclosure Information, if applicable,
      and (ii) the Depositor will approve, as to form and substance, or disapprove,
      as
      the case may be, the inclusion of the Form 8-K Disclosure Information on Form
      8-K. Subject to the foregoing, the Securities Administrator has no duty under
      this Agreement to monitor or enforce the performance by the other parties listed
      on Exhibit P or by the Trustee of their duties under this paragraph or to
      proactively solicit or procure from such parties any Form 8-K Disclosure
      Information. The Depositor will be responsible for any reasonable out-of-pocket
      expenses incurred by the Securities Administrator in connection with including
      any Form 8-K Disclosure Information on Form 8-K pursuant to this Section.

     

    (C)  After
      preparing the Form 8-K, the Securities Administrator shall forward
      electronically a draft copy of the Form 8-K to the Depositor and the Master
      Servicer for review. No later than the end of business New York City time on
      the
      3rd Business Day after the Reportable Event, a duly authorized officer of the
      Master Servicer shall sign the Form 8-K and return an electronic or fax copy
      of
      such signed Form 8-K (with an original executed hard copy to follow by overnight
      mail) to the 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 Section 3.18(a)(vi). Promptly (but
      no
      later than one (1) Business Day) after filing with the Commission, the
      Securities Administrator will, make available on its internet website identified
      in Section 6.06 a final executed copy of each Form 8-K. The signing party at
      the
      Master Servicer can be contacted as set forth in Section 12.05. The parties
      to
      this Agreement acknowledge that the performance by the Securities Administrator
      of its duties under this Section 3.18(a)(iii) related to the timely preparation
      and filing of Form 8-K is contingent upon such parties strictly observing all
      applicable deadlines in the performance of their duties under this Section
      3.18(a)(iii). It is understood by the parties hereto that the performance by
      each of the Master Servicer and the Securities Administrator of its duties
      under
      this Section 3.18(a)(iii) related to the timely preparation, execution and
      filing of Form 8-K is also contingent upon the Servicers, the Custodians and
      any
      subservicers or subcontractors strictly observing deadlines no later than those
      set forth in this paragraph that are applicable to the parties to this Agreement
      in the delivery to the Securities Administrator of any necessary Form 8-K
      Disclosure Information pursuant to the related Servicing Agreements, Custodial
      Agreements or any other applicable agreement. The Securities Administrator
      shall
      have no liability for any loss, expense, damage or claim arising out of or
      with
      respect to any failure to properly prepare and/or timely file such Form 8-K,
      where such failure results from the failure of any party hereto to deliver
      on a
      timely basis, any information needed by the Securities Administrator to prepare,
      arrange for execution or file such Form 8-K. 

     

    (iv)  (A)
      On or
      prior to the 90th
      day
      after the end of each fiscal year of the Trust or such earlier date as may
      be
      required by the Exchange Act (the “10-K Filing Deadline”) (it being understood
      that the fiscal year for the Trust ends on December 31st of each year),
      commencing in March 2007, the Securities Administrator shall prepare and file
      on
      behalf of the Trust a Form 10-K, in form and substance as required by the
      Exchange Act. Each such Form 10-K shall include the following items, in each
      case to the extent they have been delivered to the Securities Administrator
      within the applicable timeframes set forth in this Agreement, (I) an Annual
      Statement of Compliance for the Master Servicer, the Securities Administrator,
      the Company, the Servicers and any subservicer or subcontractor (to the extent
      Regulation AB requires the Annual Statement of Compliance of any such
      subservicer and subcontractor to be attached to Form 10-K), as described under
      Section 3.16, (II)(A) the Assessment of Compliance with Servicing Criteria
      for
      the Master Servicer, the Company, the Servicers, each subservicer and
      subcontractor participating in the servicing function, the Securities
      Administrator and the Custodian, as described under Section 3.17, and (B) if
      the
      Assessment of Compliance of the Master Servicer, the Company, the Servicers,
      each subservicer and subcontractor, the Securities Administrator or the
      Custodian described under Section 3.17 identifies any material instance of
      noncompliance, disclosure identifying such instance of noncompliance, or if
      the
      Assessment of Compliance of the Master Servicer, the Servicers, the subservicer,
      the subcontractor, the Securities Administrator or the Custodian described
      under
      Section 3.17 is not included as an exhibit to such Form 10-K, disclosure that
      such report is not included and an explanation why such report is not included,
      (III)(A) the registered public accounting firm Attestation Report for the Master
      Servicer, the subservicer, the subcontractor, the Company, the Servicers, the
      Securities Administrator and the Custodian, as described under Section 3.17,
      and
      (B) if any registered public accounting firm Attestation Report described under
      Section 3.17 identifies any material instance of noncompliance, disclosure
      identifying such instance of noncompliance, or if any such registered public
      accounting firm Attestation Report is not included as an exhibit to such Form
      10-K, disclosure that such report is not included and an explanation why such
      report is not included, and (IV) a Sarbanes-Oxley Certification (“Sarbanes-Oxley
      Certification”) as described in this Section 3.18 (a)(iv)(D) below. Any
      disclosure or information in addition to (I) through (IV) above that is required
      to be included on Form 10-K (“Additional Form 10-K Disclosure”) shall be
      reported by the parties set forth on Exhibit P and by the Trustee to the
      Securities Administrator and the Depositor and, pursuant to the paragraph
      immediately below, approved by the Depositor, and the Securities Administrator
      will have no duty or liability for any failure hereunder to determine or prepare
      any Additional Form 10-K Disclosure absent such reporting (other than with
      respect to when it is the reporting party as set forth in Exhibit P) and
      approval.

     

    (B)  No
      later
      than March 15th of each year that the Trust is subject to the Exchange Act
      reporting requirements, commencing in 2007, (i) the parties set forth in Exhibit
      P and the Trustee shall be required to provide pursuant to Section 3.18(a)(v)
      below to the Securities Administrator and the Depositor, to the extent known,
      in
      EDGAR-compatible format, or in such other format as otherwise agreed upon by
      the
      Securities Administrator and the Depositor and such party, the form and
      substance of any Additional Form 10-K Disclosure, if applicable, 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. Subject
      to the foregoing, the Securities Administrator has no duty under this Agreement
      to monitor or enforce the performance by the other parties listed on Exhibit
      P
      and the Trustee of their duties under this paragraph or to proactively solicit
      or procure from such parties any Additional Form 10-K Disclosure information.
      The Depositor will be responsible for any reasonable out-of-pocket expenses
      incurred by the Securities Administrator in connection with including any
      Additional Form 10-K Disclosure on Form 10-K pursuant to this
      Section.

     

    (C)  After
      preparing the Form 10-K, the Securities Administrator shall forward
      electronically a draft copy of the Form 10-K to the Depositor and the Master
      Servicer for review. 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
      shall notify the Securities Administrator in writing, no later than the 15th
      calendar day of March in any year in which the Trust is subject to the reporting
      requirements of the Exchange Act, if the answer to either question should be
      "no." The Securities Administrator shall be entitled to rely on the
      representations made by the Depositor in Section 2.04(vi) in preparing,
      executing and/or filing any such Form 10-K. No later than 12:00 p.m. New York
      City time on the 4th Business Day prior to the 10-K Filing Deadline, a senior
      officer of the Master Servicer in charge of the master servicing function shall
      sign the Form 10-K and return an electronic or fax copy of such signed Form
      10-K
      (with an original executed hard copy to follow by overnight mail) to the
      Securities Administrator. If a Form 10-K cannot be filed on time or if a
      previously filed Form 10-K needs to be amended, the Securities Administrator
      will follow the procedures set forth in Section 3.18(a)(vi). Promptly (but
      no
      later than one (1) Business Day) after filing with the Commission, the
      Securities Administrator will make available on its internet website identified
      in Section 6.06 a final executed copy of each Form 10-K. The signing party
      at
      the Master Servicer can be contacted as set forth in Section 12.05. The parties
      to this Agreement acknowledge that the performance by the Securities
      Administrator of its duties under Section 3.18(a)(iv) related to the timely
      preparation and filing of Form 10-K is contingent upon such parties strictly
      observing all applicable deadlines in the performance of their duties under
      such
      Section and Section 3.16 and Section 3.17. It is understood by the parties
      hereto that the performance by the Master Servicer and the Securities
      Administrator of its duties under this Section 3.18(a)(iv) related to the timely
      preparation, execution and filing of Form 10-K is also contingent upon the
      Servicers, the Custodians and any subservicer or subcontractor strictly
      observing deadlines no later than those set forth in this paragraph that are
      applicable to the parties to this Agreement in the delivery to the Securities
      Administrator of any necessary Additional Form 10-K Disclosure, any annual
      statement of compliance and any Assessment of Compliance and attestation
      pursuant to the related Servicing Agreements, the Custodial Agreements or any
      other applicable agreement. The Securities Administrator shall have no liability
      for any loss, expense, damage or claim arising out of or with respect to any
      failure to properly prepare and/or timely file such Form 10-K, where such
      failure results from the failure of any party hereto to deliver on a timely
      basis, any information needed by the Securities Administrator to prepare,
      arrange for execution or file such Form 10-K. 

     

    (D)  Each
      Form
      10-K shall include a certification (the “Sarbanes-Oxley Certification”) required
      to be included therewith pursuant to the Sarbanes-Oxley Act. The Securities
      Administrator and the Company shall, and each such party shall cause any
      subservicer or subcontractor engaged by it to, provide to the Person who signs
      the Sarbanes-Oxley Certification (the “Certifying Person”), by March 15 of each
      year in which the Trust is subject to the reporting requirements of the Exchange
      Act and otherwise within a reasonable period of time upon request, a
      certification (a “Back-Up Certification”), in the form attached hereto as
      Exhibit M upon which the Certifying Person, the entity for which the Certifying
      Person acts as an officer, and such entity’s officers, directors and Affiliates
      (collectively with the Certifying Person, “Certification Parties”) can
      reasonably rely; provided, however, that the Securities Administrator and the
      Company shall not be required to undertake an analysis of any accountant’s
      report attached as an exhibit to the Form 10-K. The senior officer of the Master
      Servicer in charge of the master servicing function shall serve as the
      Certifying Person on behalf of the Trust. Such officer of the Certifying Person
      can be contacted as set forth in Section 12.05. In the event the Securities
      Administrator is terminated or resigns pursuant to the terms of this Agreement
      or any subcontractor or subservicer is terminated pursuant to the related
      servicing agreement, the Securities Administrator, subcontractor or subservicer,
      as applicable, shall provide a Back-Up Certification to the Certifying Person
      pursuant to this Section 3.18(a)(iv) with respect to the period of time it
      was
      subject to this Agreement or the related servicing agreement, as applicable.
      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.

     

    (v)  With
      respect to any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure
      or any Form 8-K Disclosure Information (collectively, the “Additional
      Disclosure”) relating to the Trust Fund in the form attached hereto as Exhibit
      Q, the Securities Administrator’s obligation to include such Additional
      Information in the applicable Exchange Act report is subject to receipt from
      the
      entity that is indicated in Exhibit P as the responsible party for providing
      that information, if other than the Securities Administrator, as and when
      required as described in Section 3.18(a)(i) through (iv) above. Each of the
      Master Servicer, Custodian, Seller, Company and the Depositor hereby agree
      to
      notify and provide (to the extent known) to the Securities Administrator and
      the
      Depositor all Additional Disclosure relating to the Trust Fund, with respect
      to
      which such party is indicated in Exhibit P as the responsible party for
      providing that information. Within
      five Business Days prior to each Distribution Date of each year that the Trust
      is subject to the Exchange Act reporting requirements, the Depositor shall
      make
      available to the Securities
      Administrator the
      Significance Estimate and the Securities Administrator shall use such
      information to calculate the Significance Percentage. The
      Securities Administrator shall provide the Significance Percentage to the
      Depositor by the later of the Distribution Date or (3) three Business Days
      after
      the receipt of the Significance Estimate from the Depositor.
      If the
      Significance Percentage meets either of the threshold levels detailed in Item
      1115(b)(1) or 1115(b)(2) of Regulation AB, the Securities Administrator shall
      deliver written notification to the Depositor and the Swap Provider to that
      effect. The
      Securities Administrator shall request and the Depositor shall obtain from
      the
      Swap Provider any information required under Regulation AB to the extent
      required under the Swap Agreement. The Depositor shall be obligated to provide
      to the Securities Administrator (no later than, in the case of Form 10-D, the
      seventh calendar day after the Distribution Date and in the case of Form 10-K,
      March 15th in any year in which a Form 10-K is filed for the Trust) any
      information that may be required to be included in any Form 10-D, Form 8-K
      or
      Form 10-K or written notification instructing the Securities Administrator
      that
      such Additional Disclosure regarding the Swap Provider is not necessary for
      such
      Distribution Date. 

     

    So
      long
      as the Depositor is subject to the filing requirements of the Exchange Act
      with
      respect to the Trust Fund, the Trustee shall notify the Securities Administrator
      and the Depositor of any bankruptcy or receivership with respect to the Trustee
      or of any proceedings of the type described under Item 1117 of Regulation AB
      that have occurred as of the end of the related Due Period, together with a
      description thereof, no later than the date on which such information is
      required to be reported to the Securities Administrator and the Depositor by
      the
      other parties hereto as set forth under this Section 3.18. In addition, the
      Trustee shall notify the Securities Administrator and the Depositor of (i)
      any
      affiliations or relationships that develop after the Closing Date between the
      Trustee and the Depositor, the Seller, the Securities Administrator, the Master
      Servicer or the Custodian of the type described under Item 1119 of Regulation
      AB, and (ii) the occurrence of an Event of Default (with respect to the Master
      Servicer) actually
      known to a Responsible Officer of the Trustee
      together, in each case, with a description thereof, no later than the date
      on
      which such information is required to be reported to the Securities
      Administrator and the Depositor by the other parties hereto as set forth under
      this Section 3.18. Any notice required to be given by the Trustee to the
      Securities Administrator and the Depositor pursuant to this paragraph shall
      be
      accompanied by an Additional Disclosure Notification form attached hereto as
      Exhibit Q and shall be submitted in EDGAR-compatible format. Should
      the identification of any of the Depositor, the Seller, the Securities
      Administrator, the Master Servicer or the Custodian change, the Depositor shall
      promptly notify the Trustee.

     

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

     

    (B)  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 the Depositor and the Master Servicer. In the case of Form
      10-D
      and 10-K, the parties hereto 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,
      the Securities Administrator will notify the Depositor and the Master Servicer
      and the parties hereto will cooperate to prepare any necessary 8-K/A, 10-D/A
      or
      10-K/A. Any Form 15, Form 12b-25 or any amendment to Form 8-K, Form 10-D or
      Form
      10-K shall be signed by the appropriate officer of the Master Servicer. The
      parties hereto acknowledge that the performance by the Securities Administrator
      of its duties under this Section 3.18(a)(vi) related to the timely preparation
      and filing of Form 15, a Form 12b-25 or any amendment to Form 8-K, Form 10-D
      or
      Form 10-K is contingent upon such parties performing their duties under this
      Section. The Securities Administrator shall have no liability for any loss,
      expense, damage, claim arising out of or with respect to any failure to properly
      prepare and/or timely file any such Form 15, Form 12b-25 or any amendments
      to
      Form 8-K, Form 10-D or Form 10-K, where such failure results from the failure
      of
      any party hereto to deliver on a timely basis, any information needed by the
      Securities Administrator to prepare, arrange for execution or file such Form
      15,
      Form 12b-25 or any amendments to Forms 8-K, Form 10-D or Form 10-K.

     

    The
      parties hereto agree to promptly furnish to the Securities Administrator, from
      time to time upon request, such further information, reports and financial
      statements within its control or possession related to this Agreement and the
      Mortgage Loans as the Securities Administrator reasonably deems appropriate
      to
      prepare and file all necessary reports with the Commission. The Securities
      Administrator shall have no responsibility to file any items other than those
      specified in this Section 3.18; provided, however, the Securities Administrator
      shall cooperate with the Depositor in connection with any additional filings
      with respect to the Trust Fund as the Depositor deems necessary under the
      Exchange Act. Copies of all reports filed by the Securities Administrator under
      the Exchange Act shall be sent to: the Depositor c/o Bear, Stearns & Co.
      Inc., Attn: Managing Director Analysis and Control, One Metrotech Center North,
      Brooklyn, New York 11202-3859. Fees and expenses incurred by the Securities
      Administrator in connection with this Section 3.18 shall not be reimbursable
      from the Trust Fund. The Depositor shall be responsible for any reasonable
      fees
      and expenses assessed or incurred by the Securities Administrator to the extent
      set forth in this Section 3.18.

     

    (b)  The
      Securities Administrator shall indemnify and hold harmless each of the Company,
      the Depositor and the Master Servicer (if the Master Servicer is unaffiliated
      with the Securities Administrator) and their respective officers, directors
      and
      affiliates from and against any losses, damages, penalties, fines, forfeitures,
      reasonable and necessary legal fees and related costs, judgments and other
      costs
      and expenses arising out of or based upon a breach of the Securities
      Administrator’s obligations under Sections 3.16, 3.17 and 3.18 or the Securities
      Administrator’s negligence, bad faith or willful misconduct in connection
      therewith. In addition, the Securities Administrator shall indemnify and hold
      harmless the Depositor and the Master Servicer (if the Master Servicer is
      unaffiliated with the Securities Administrator) and each of their officers,
      directors and affiliates from and against any losses, damages, penalties, fines,
      forfeitures, reasonable and necessary legal fees and related costs, judgments
      and other costs and expenses arising out of or based upon (i) any untrue
      statement or alleged untrue statement of any material fact contained in any
      Back-Up Certification, the Annual Statement of Compliance, the Assessment of
      Compliance, any Additional Disclosure or other information provided by the
      Securities Administrator pursuant to Section 3.16, 3.17 and 3.18 (the
“Securities Administrator Information”), or (ii) the omission or alleged
      omission to state therein a material fact required to be stated therein or
      necessary to make the statements therein, in light of the circumstances in
      which
      they were made, not misleading; provided, by way of clarification, that clause
      (ii) of this paragraph shall be construed solely by reference to the Securities
      Administrator Information and not to any other information communicated in
      connection with the Certificates, without regard to whether the Securities
      Administrator Information or any portion thereof is presented together with
      or
      separately from such other information.

     

    The
      Depositor shall indemnify and hold harmless each of the Company, the Securities
      Administrator and the Master Servicer and their officers, directors and
      affiliates from and against any losses, damages, penalties, fines, forfeitures,
      reasonable and necessary legal fees and related costs, judgments and other
      costs
      and expenses arising out of or based upon a breach of the obligations of the
      Depositor under Sections 3.16, 3.17 and 3.18 or the Depositor’s negligence, bad
      faith or willful misconduct in connection therewith.

     

    The
      Master Servicer shall indemnify and hold harmless each of the Company, the
      Securities Administrator (if the Securities Administrator is unaffiliated with
      the Master Servicer) and the Depositor and their respective officers, directors
      and affiliates from and against any losses, damages, penalties, fines,
      forfeitures, reasonable and necessary legal fees and related costs, judgments
      and other costs and expenses arising out of or based upon a breach of the
      obligations of the Master Servicer under Sections 3.16, 3.17 and 3.18 or the
      Master Servicer’s negligence, bad faith or willful misconduct in connection
      therewith. In addition, the Master Servicer shall indemnify and hold harmless
      the Depositor and each of its officers, directors and affiliates from and
      against any losses, damages, penalties, fines, forfeitures, reasonable and
      necessary legal fees and related costs, judgments and other costs and expenses
      arising out of or based upon (i) any untrue statement or alleged untrue
      statement of any material fact contained in any Annual Statement of Compliance,
      any Assessment of Compliance, any Attestation Report, any Additional Disclosure
      or other information provided by the Master Servicer pursuant to Section 3.16,
      3.17 and 3.18 (the “Master Servicer Information”), or (ii) the omission or
      alleged omission to state therein a material fact required to be stated therein
      or necessary to make the statements therein, in light of the circumstances
      in
      which they were made, not misleading; provided, by way of clarification, that
      clause (ii) of this paragraph shall be construed solely by reference to the
      Master Servicer Information and not to any other information communicated in
      connection with the Certificates, without regard to whether the Master Servicer
      Information or any portion thereof is presented together with or separately
      from
      such other information.

     

    The
      Company shall indemnify and hold harmless each of the Depositor, the Securities
      Administrator and the Master Servicer and their respective officers, directors
      and affiliates from and against any losses, damages, penalties, fines,
      forfeitures, reasonable and necessary legal fees and related costs, judgments
      and other costs and expenses arising out of or based upon a breach of the
      obligations of the Company under Sections 3.16, 3.17 and 3.18 or the Company’s
      negligence, bad faith or willful misconduct in connection therewith. In
      addition, the Company shall indemnify and hold harmless each of the Depositor,
      the Securities Administrator and the Master Servicer and their respective
      officers, directors and affiliates from and against any losses, damages,
      penalties, fines, forfeitures, reasonable and necessary legal fees and related
      costs, judgments and other costs and expenses arising out of or based upon
      (i)
      any untrue statement or alleged untrue statement of any material fact contained
      in any Back-Up Certification, the Annual Statement of Compliance, the Assessment
      of Compliance, any Attestation Report, any Additional Disclosure or other
      information provided by or on behalf of the Company or on behalf of any
      subservicer or subcontractor of the Company pursuant to Section 3.16, 3.17
      and
      3.18 (the “Company Information”), or (ii) the omission or alleged omission to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein, in light of the circumstances in which they were made,
      not misleading; provided, by way of clarification, that clause (ii) of this
      paragraph shall be construed solely by reference to the Company Information
      and
      not to any other information communicated in connection with the Certificates,
      without regard to whether the Company Information or any portion thereof is
      presented together with or separately from such other information.

     

    If
      the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless the Depositor, the Securities Administrator or the Master Servicer,
      as
      applicable, then the defaulting party, in connection with any conduct for which
      it is providing indemnification for under this Section 3.18(b), agrees that
      it
      shall contribute to the amount paid or payable by the other parties as a result
      of the losses, claims, damages or liabilities of the other party in such
      proportion as is appropriate to reflect the relative fault and the relative
      benefit of the respective parties.

     

    The
      indemnification provisions set forth in this Section 3.18(b) shall survive
      the
      termination of this Agreement or the termination of any party to this
      Agreement.

     

    (c)  Nothing
      shall be construed from the foregoing subsections (a) and (b) to require the
      Securities Administrator or any officer, director or Affiliate thereof to sign
      any Form 10-K or any certification contained therein. Furthermore, the inability
      of the Securities Administrator to file a Form 10-K as a result of the lack
      of
      required information as set forth in Section 3.18(a) or required signatures
      on
      such Form 10-K or any certification contained therein shall not be regarded
      as a
      breach by the Securities Administrator of any obligation under this
      Agreement.

     

    (d)  Notwithstanding
      the provisions of Section 11.01, this Section 3.18 may be amended without the
      consent of the Certificateholders.

     

    (e)  Any
      report, notice or notification to be delivered by the Company, the Master
      Servicer or the Securities Administrator to the Depositor pursuant to this
      Section 3.18, may be delivered via facsimile to Reg AB Compliance Manager,
      via
      email to RegABNotifications@bear.com or, in the case of a notification,
      telephonically by calling Reg AB Compliance Manager at
      212-272-7525.

     

    Section
      3.19  Intention
      of the Parties and Interpretation. 

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Sections 3.16, 3.17
      and
      3.18 of this Agreement is to facilitate compliance by the Seller, the Depositor,
      the Master Servicer and the Securities Administrator with the provisions of
      Regulation AB promulgated by the SEC under the 1934 Act (17 C.F.R. §§ 229.1100 -
      229.1123), as such may be amended from time to time and subject to clarification
      and interpretive advice as may be issued by the staff of the SEC 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 requests
      made by the Sponsor, the Depositor or other applicable parties hereto for
      delivery of additional or different information as the Securities Administrator,
      the Master Servicer, the Sponsor or the Depositor may determine in good faith
      is
      necessary to comply with the provisions of Regulation AB, 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.

     

    

     

    ARTICLE
      IV

    MASTER
      SERVICING OF MORTGAGE LOANS BY MASTER SERVICER

     

    Section
      4.01  Master
      Servicer.

     

    The
      Master Servicer shall, beginning on the Closing Date, supervise, monitor and
      oversee the obligation of the Company and the related Servicer to service and
      administer their respective Mortgage Loans in accordance with the terms of
      this
      Agreement and the related Servicing Agreement, respectively 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. In performing its
      obligations hereunder, the Master Servicer shall act in a manner consistent
      with
      Accepted Master Servicing Practices. Furthermore, the Master Servicer shall
      oversee and consult with the Company and the related Servicer as necessary
      from
      time-to-time to carry out the Master Servicer’s obligations hereunder, shall
      receive and review certain reports, information and other data provided to
      the
      Master Servicer by the Company and the related Servicer and shall enforce the
      obligations, conditions and covenants of the Company and related Servicer to
      the
      extent set forth in this Agreement and the related Servicing Agreement,
      respectively. The Master Servicer shall monitor the Company and the related
      Servicer’s servicing activities with respect to each related Mortgage Loan,
      reconcile the results of such monitoring with such information described in
      the
      previous sentence and received by the Master Servicer on a monthly basis and
      coordinate corrective adjustments to the Company’s, the Servicer’s and Master
      Servicer’s records, and based on such reconciled and corrected information, the
      Master Servicer shall provide such information to the Securities Administrator
      as shall be necessary in order for it to prepare the statements specified in
      Section 6.06 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 Company and each Servicer pursuant to this
      Agreement and the related Servicing Agreement, respectively. The Master Servicer
      shall be entitled to conclusively rely on the Mortgage Loan data provided by
      the
      Company and the related Servicer and shall have no liability for any errors
      in
      such Mortgage Loan data.

     

    The
      Master Servicer, the Trustee and the Securities Administrator shall provide
      access to the records and documentation in possession of the Master Servicer,
      the Trustee or the Securities Administrator regarding the related Mortgage
      Loans
      and REO Property to the Certificateholders, the FDIC, and the supervisory agents
      and examiners of the FDIC, such access being afforded only upon reasonable
      prior
      written request and during normal business hours at the office of the Master
      Servicer, the Trustee or the Securities Administrator; provided, however, that,
      unless otherwise required by law, neither the Master Servicer, the Trustee
      nor
      the Securities Administrator shall be required to provide access to such records
      and documentation if the provision thereof would violate the legal right to
      privacy of any Mortgagor. The Master Servicer, the Trustee and the Securities
      Administrator shall allow representatives of the above entities to photocopy
      any
      of the records and documentation and shall provide equipment for that purpose
      at
      a charge that covers the Master Servicer’s, the Trustee’s or the Securities
      Administrator’s actual costs.

     

    The
      Trustee shall execute and deliver to the Company, the related Servicer or the
      Master Servicer, as applicable, 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 security
      instrument; (iii) obtain a deficiency judgment against the Mortgagor; or (iv)
      enforce any other rights or remedies provided by the Mortgage Note or security
      instrument or otherwise available at law or equity.

     

    Section
      4.02  Monitoring
      of Company and Servicers. 

     

    (a) In
      the
      review of the Company’s and the related Servicer’s activities, the Master
      Servicer may rely upon the Annual Statement of Compliance of the Company and
      the
      related Servicer with regard to such Person’s compliance with the terms of this
      Agreement or the related Servicing Agreement; provided that no such reliance
      will relieve the Master Servicer of its obligations pursuant to this Agreement.
      In the event that the Master Servicer, in its judgment, determines that the
      Company or the related Servicer should be terminated in accordance with this
      Agreement or the related Servicing Agreement, or that a notice should be sent
      pursuant to this Agreement or the related 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 Trustee
      thereof and the Master Servicer shall issue such notice or take such other
      action as it deems appropriate.

     

    (b) The
      Master Servicer, for the benefit of the Trustee and the Certificateholders,
      shall enforce the obligations of the Company under this Agreement and of the
      related Servicer under the related Servicing Agreement, and shall, in the event
      that the Company or the related Servicer fails to perform its obligations in
      accordance with this Agreement or the related Servicing Agreement, subject
      to
      the preceding paragraph, terminate the rights and obligations of such Person
      thereunder and act as servicer of the related Mortgage Loans or to instruct
      the
      Trustee to enter into a new Servicing Agreement with a successor Servicer
      selected by the Master Servicer; provided, however, it is understood and
      acknowledged by the parties hereto that there shall be a period of transition
      (not to exceed 90 days) before the actual servicing functions can be fully
      transferred to such successor Servicer; provided further, if the Servicer or
      the
      Company has failed to advance or failed to make a payment so that the Master
      Servicer has had to advance its own funds, then the Master Servicer may
      terminate the Servicer or the Company. Such enforcement, including, without
      limitation, the legal prosecution of claims, termination of the related
      Servicing Agreement 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, subject to its right of reimbursement pursuant
      to the provisions of this Agreement or the related Servicing Agreement, 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.

     

    (c) To
      the
      extent that the costs and expenses of the Master Servicer related to any
      termination of the Company or the related Servicer, appointment of a successor
      Servicer or the transfer and assumption of servicing by the Master Servicer
      with
      respect to this Agreement or the related 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
      Company or the related Servicer as a result of an alleged or actual breach
      of
      contract or an event of default by such Person 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 this
      Agreement or the related Servicing Agreement) are not fully and timely
      reimbursed by the Company or the terminated Servicer, the Master Servicer shall
      be entitled to reimbursement of such costs and expenses from the Master Servicer
      Collection Account.

     

    (d) The
      Master Servicer shall require the Company and the related Servicer to comply
      with the remittance requirements and other obligations set forth in this
      Agreement or the related Servicing Agreement, as applicable.

     

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

     

    Section
      4.03  Fidelity
      Bond.

     

    The
      Master Servicer, at its expense, shall (i) 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 or (ii) self insure if LaSalle
      maintains with any Rating Agency the equivalent of a long term unsecured debt
      rating of “A”. The errors and omissions insurance policy and the fidelity bond
      referred to in (i) above shall be in such form and amount generally acceptable
      for entities serving as master servicers.

     

    Section
      4.04  Power
      to
      Act; Procedures.

     

    The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority, subject to the REMIC Provisions and the provisions of
      Article XI hereof, to do any and all things that it may deem necessary or
      desirable in connection with the master servicing and administration of the
      Mortgage Loans, including but not limited to the power and authority (i) to
      execute and deliver, on behalf of the Certificateholders, the Trustee and the
      Securities Administrator, customary consents or waivers and other instruments
      and documents, (ii) to consent to transfers of any Mortgaged Property and
      assumptions of the Mortgage Notes and related Mortgages, (iii) to collect any
      Insurance Proceeds and Liquidation Proceeds, and (iv) to effectuate foreclosure
      or other conversion of the ownership of the Mortgaged Property securing any
      Mortgage Loan, in each case, in accordance with the provisions of this Agreement
      and the related Servicing Agreement, as applicable; provided, however, that
      the
      Master Servicer shall not (and, consistent with its responsibilities under
      Section 4.02, shall not permit the Company or the related Servicer to) knowingly
      or intentionally take any action, or fail to take (or fail to cause to be taken)
      any action reasonably within its control and the scope of duties more
      specifically set forth herein, that, under the REMIC Provisions, if taken or
      not
      taken, as the case may be, would cause REMIC I, REMIC II, REMIC III, REMIC
      IV or
      REMIC V to fail to qualify as a REMIC or result in the imposition of a tax
      upon
      the Trust Fund (including but not limited to the tax on prohibited transactions
      as defined in Section 860F(a)(2) of the Code and the tax on contributions to
      a
      REMIC set forth in Section 860G(d) of the Code) unless the Master Servicer
      has
      received an Opinion of Counsel (but not at the expense of the Master Servicer)
      to the effect that the contemplated action, or failure to take action, will
      not
      cause REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V to fail to qualify
      as a
      REMIC or result in the imposition of a tax upon REMIC I, REMIC II, REMIC III,
      REMIC IV or REMIC V, as the case may be. 

     

    The
      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 Trustee shall have no
      liability for misuse of any such powers of attorney by the Master Servicer,
      the
      Company or the related Servicer). If the Master Servicer or the Trustee has
      been
      advised that it is likely that the laws of the state in which action is to
      be
      taken prohibit such action if taken in the name of the Trustee or that the
      Trustee would be adversely affected under the “doing business” or tax laws of
      such state if such action is taken in its name, the Master Servicer shall join
      with the Trustee in the appointment of a co-trustee pursuant to Section 10.11
      hereof. In the performance of its duties hereunder, the Master Servicer shall
      be
      an independent contractor and shall not, except in those instances where it
      is
      taking action in the name of the Trustee, be deemed to be the agent of the
      Trustee.

     

    Section
      4.05  Due-on-Sale
      Clauses; Assumption Agreements.

     

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

     

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

     

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

     

    (b) All
      Mortgage Files and funds collected or held by, or under the control of, the
      Master Servicer, in respect of any Mortgage Loans, whether from the collection
      of principal and interest payments or from Liquidation Proceeds or Insurance
      Proceeds, shall be held by the Master Servicer for and on behalf of the Trustee
      and the Certificateholders and shall be and remain the sole and exclusive
      property of the Trustee; provided, however, that the Master Servicer, the
      Company and the related 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 related Servicing
      Agreement.

     

    Section
      4.07  Presentment
      of Claims and Collection of Proceeds.

     

    The
      Master Servicer shall (to the extent provided in this Agreement and the
      Servicing Agreement) enforce the obligation of the Company or the related
      Servicer to, prepare and present on behalf of the Trustee and the
      Certificateholders 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 the Company
      or
      the related Servicer and remitted to the Master Servicer) in respect of such
      policies, bonds or contracts shall be promptly deposited in the Master Servicer
      Collection Account upon receipt, except that any amounts that are to be applied
      upon receipt to the repair or restoration of the related Mortgaged Property,
      which repair or restoration the owner of such Mortgaged Property or EMC, as
      applicable, has agreed to make as a condition precedent to the presentation
      of
      its claims on the related EMC Mortgage Loan under the applicable Insurance
      Policy, need not be so deposited (or remitted).

     

    Section
      4.08  Realization
      Upon Defaulted Mortgage Loans.

     

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

     

    Section
      4.09  Compensation
      of the Master Servicer.

     

    The
      Master Servicer shall be entitled to the Master Servicing Fee on each
      Distribution Date as compensation for the performance of its obligations
      hereunder. 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
      4.10  REO
      Property.

     

    (a)  In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      related Mortgage Loan, the deed or certificate of sale shall be issued to the
      Trustee, or to its nominee, on behalf of the related Certificateholders. The
      Master Servicer shall, to the extent provided in this Agreement and the
      Servicing Agreements, as applicable, cause the Company and the related 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.
      The Master Servicer shall enforce any obligations of the Company or the related
      Servicer to protect and conserve, such REO Property in the manner and to the
      extent required by this Agreement or the related Servicing Agreement, in
      accordance with the REMIC Provisions and in a manner that does not result in
      a
      tax on “net income from foreclosure property” or cause such REO Property to fail
      to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of
      the Code.

     

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

     

    Section
      4.11  [Reserved].

     

    Section
      4.12  [Reserved].

     

    Section
      4.13  UCC. 

     

    EMC
      shall
      file any financing statements, continuation statements or amendments thereto
      required by any change in the Uniform Commercial Code.

     

    Section
      4.14   Reserve
      Fund; Payments to and from Swap Administrator; Supplemental Interest
      Trust. 

     

    (a)  As
      of the
      Closing Date, the Securities Administrator shall establish and maintain in
      the
      name of the Supplemental Interest Trust Trustee, a separate trust for the
      benefit of the Holders of the Class A, Class M and Class B Certificates and
      the
      Swap Provider. The Supplemental Interest Trust shall hold the Swap Agreement,
      the Swap Administration Agreement, the Swap Account and REMIC V Regular Interest
      IO. The
      Swap
      Account shall be an Eligible Account, and funds on deposit therein shall be
      held
      separate and apart from, and shall not be commingled with, any other moneys,
      including, without limitation, other moneys of the Securities Administrator
      held
      pursuant to this Agreement. Amounts in the Swap Account shall, at the direction
      of the Majority Class C Certificateholder, be invested in Permitted Investments
      that mature no later than the Business Day prior to the next succeeding
      Distribution Date. All net income and gain from such investments shall be
      distributed to the Majority Class C Certificateholder, not as a distribution
      in
      respect of any interest in any REMIC, on such Distribution Date. In the absence
      of written instructions to the Securities Administrator, amounts on deposit
      in
      the Swap Account shall remain uninvested. All amounts earned on amounts on
      deposit in the Swap Account shall be taxable to the Majority Class C
      Certificateholder. Any losses on such investments shall be deposited in the
      Swap
      Account by the Class C Certificateholder out of its own funds immediately as
      realized. In performing its duties hereunder and under the Swap Agreement and
      the rights in respect of the Swap Administration Agreement, the Supplemental
      Interest Trust Trustee shall be entitled to the same rights, protections and
      indemnities as provided to the Securities Administrator hereunder.

     

    (b)  On
      or
      before the Closing Date, the Securities Administrator shall establish a Reserve
      Fund on behalf of the Holders of the Certificates. On the Closing Date, the
      Depositor shall cause an amount equal to the Reserve Fund Deposit to be
      deposited into the Reserve Fund. The Reserve Fund must be an Eligible Account.
      The Reserve Fund shall be titled “ Reserve Fund, LaSalle Bank National
      Association, as Securities Administrator on behalf of Citibank, N.A. as Trustee
      for the benefit of holders of SACO I Trust 2006-9, Mortgage-Backed Certificates,
      Series 2006-9, Certificates”. The Securities Administrator shall deposit in the
      Reserve Fund all payments received from the Swap Administrator that are payable
      to the Trust Fund pursuant to the Swap Administration Agreement. On each
      Distribution Date, the Securities Administrator shall remit such amounts
      received from the Swap Administrator to the Holders of the Class A, Class M
      and
      Class B Certificates in the manner provided in clause (d) below. In addition,
      on
      each Distribution Date as to which there is a Basis Risk Shortfall Carry Forward
      Amount payable to any Class of Class A, Class M or Class B Certificates, the
      Securities Administrator shall deposit the amounts distributable pursuant to
      clauses (C) and (D) of Section 6.04(a)(3) into the Reserve Fund, and the
      Securities Administrator has been directed by the Class C Certificateholder
      to
      distribute any amounts then on deposit in the Reserve Fund to the Holders of
      the
      Class A, Class M or Class B Certificates in respect of the Basis Risk Shortfall
      Carry Forward Amounts for each such Class in the priorities set forth in clauses
      (C) and (D) of Section 6.04(a)(3). Any amount paid to the Holders of Class
      A,
      Class M or Class B Certificates from amounts distributable pursuant to clauses
      (C) and (D) of Section 6.04(a)(3) pursuant to the preceding sentence in respect
      of Basis Risk Shortfall Carry Forward Amounts shall be treated as distributed
      to
      the Class C Certificateholder in respect of the Class C Certificates and paid
      by
      the Class C Certificateholder to the Holders of the Class A, Class M and Class
      B
      Certificates, as applicable. Any payments to the Holders of the Class A, Class
      M
      and Class B Certificates in respect of Basis Risk Shortfall Carry Forward
      Amounts, whether pursuant to the second preceding sentence or pursuant to clause
      (d) below, shall not be payments with respect to a Regular Interest in a REMIC
      within the meaning of Section 860G(a)(1) of the Code.

     

    (c)  Net
      Swap
      Payments and Swap Termination Payments (other than Swap Termination Payments
      resulting from a Swap Provider Trigger Event and to the extent not paid by
      the
      Swap Administrator on behalf of the Supplemental Interest Trust Trustee from
      any
      upfront payment received pursuant to any replacement interest rate swap
      agreement that may be entered into by the Supplemental Interest Trust Trustee)
      payable by the Swap Administrator, on behalf of the Supplemental Interest Trust
      Trustee, to the Swap Provider pursuant to the Swap Agreement shall be deducted
      from Interest Funds, and to the extent of any such remaining amounts due, from
      Principal Funds, prior to any distributions to the Certificateholders. On or
      before each Distribution Date, such amounts shall be remitted to the Swap
      Administrator, and deposited into the Swap Account, first to make any Net Swap
      Payment owed to the Swap Provider pursuant to the Swap Agreement for such
      Distribution Date and for prior Distribution Dates, if any, and second to make
      any Swap Termination Payment (not due to a Swap Provider Trigger Event and
      to
      the extent not paid by the Swap Administrator on behalf of the Supplemental
      Interest Trust Trustee from any upfront payment received pursuant to any
      replacement interest rate swap agreement that may be entered into by the
      Supplemental Interest Trust Trustee) owed to the Swap Provider pursuant to
      the
      Swap Agreement for such Distribution Date and for prior Distribution Dates,
      if
      any. For federal income tax purposes, such amounts paid to the Supplemental
      Interest Trust on each Distribution Date shall first be deemed paid to the
      Supplemental Interest Trust in respect of REMIC V Regular Interest IO to the
      extent of the amount distributable on such REMIC V Regular Interest IO on such
      Distribution Date, and any remaining amount shall be deemed paid to the
      Supplemental Interest Trust in respect of a Class IO Distribution Amount. Any
      Swap Termination Payment triggered by a Swap Provider Trigger Event owed to
      the
      Swap Provider pursuant to the Swap Agreement will be subordinated to
      distributions to the Holders of the Class A, Class M and Class B Certificates,
      and the Swap Administrator shall pay the amount set forth in Section 6.04(a)(3)
      to the Swap Provider. In addition, the Swap Administrator shall remit to the
      Swap Provider any Swap Optional Termination Payment paid as part of the Mortgage
      Loan Purchase Price and remitted to the Supplemental Interest Trust pursuant
      to
      Section 11.01.

     

    (d)  On
      or
      before each Distribution Date, Net Swap Payments payable by the Swap Provider
      pursuant to the Swap Agreement to the Swap Administrator, on behalf of the
      Supplemental Interest Trust Trustee, will be deposited by the Swap
      Administrator, acting on behalf of the Supplemental Interest Trust Trustee,
      into
      the Swap Account pursuant to the Swap Administration Agreement. The Swap
      Administrator shall, to the extent provided in the Swap Administration
      Agreement, remit amounts on deposit in the Swap Account to the Securities
      Administrator for deposit into the Reserve Fund. On each Distribution Date,
      to
      the extent required, the Securities Administrator shall withdraw such amounts
      from the Reserve Fund to distribute to the Certificates in the following order
      of priority:

     

    (i)  first,
      to the
      Class A Certificates to pay (a) Current Interest and any Interest Carry Forward
      Amount to the extent due to the interest portion of a Realized Loss, in each
      case to the extent not fully paid pursuant to Section 6.04(a)(1) and (b) any
      Unpaid Realized Loss Amounts for such Class;

     

    (ii)  second,
      sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class
      M-6, Class B-1, Class B-2, Class B-3 and Class B-4 Certificates, in that order,
      to pay Current Interest to the extent not fully paid pursuant to Section
      6.04(a)(1) and any Interest Carry Forward Amount, in each case to the extent
      due
      to the interest portion of a Realized Loss;

     

    (iii)  third,
      to pay
      sequentially, to the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5, Class M-6, Class B-1, Class B-2, Class B-3 and Class B-4 Certificates,
      in
      that order, any Basis Risk Shortfall Carry Forward Amounts for such Distribution
      Date; and
       

    

    (iv)  fourth,
      to pay
      as principal to the Class A, Class M and Class B Certificates as part of the
      Extra
      Principal Distribution Amount
      payable
      under Section 6.04(a)(2) until the Overcollateralization Target Amount has
      been
      reached, to the extent not paid from Excess Cashflow pursuant to Section
      6.04(a)(3) for such Distribution Date. For the avoidance of doubt, any amounts
      distributable pursuant to this clause (iv) shall be limited to rebuilding
      overcollateralization related to Loan to the extent overcollateralization has
      been reduced through Realized Losses related to Loan .

     

    (e)  The
      Reserve Fund is an “outside reserve fund” within the meaning of Treasury
      Regulation Section 1.860G-2(h) and shall be an asset of the Trust Fund but
      not
      an asset of any REMIC. The Securities Administrator on behalf of the Trust
      shall
      be the nominal owner of the Reserve Fund. The Majority Class C Certificateholder
      shall be the beneficial owner of the Reserve Fund, subject to the power of
      the
      Securities Administrator on behalf of the Securities Administrator to transfer
      amounts under Section 6.04. Amounts in the Reserve Fund shall, at the written
      direction of the Majority Class C Certificateholder to the Securities
      Administrator, be invested in Permitted Investments that mature no later than
      the Business Day prior to the next succeeding Distribution Date. All net income
      and gain from such investments shall be distributed to the Majority Class C
      Certificateholders, not as a distribution in respect of any interest in any
      REMIC, on such Distribution Date. In the absence of written instructions to
      the
      Securities Administrator, amounts on deposit in the Reserve Fund shall remain
      uninvested. All amounts earned on amounts on deposit in the Reserve Fund shall
      be taxable to the Majority Class C Certificateholder. Any losses on such
      investments shall be deposited in the Reserve Fund by the Majority Class C
      Certificateholder out of its own funds immediately as realized. The
      Swap
      Account, which is created and maintained by the Swap Administrator pursuant
      to
      the Swap Administration Agreement, is an “outside reserve fund” within the
      meaning of Treasury Regulation Section 1.860G-2(h) and shall not be an asset
      of
      any REMIC created hereunder. The beneficial owner of the Swap Account is
      identified, and other matters relating to the Swap Account are addressed, in
      the
      Swap Administration Agreement.

     

    (f)  The
      Securities Administrator shall treat the Holders of Certificates (other than
      the
      Class C Certificates and Class R Certificates) as having entered into a notional
      principal contract with respect to the Holders of the Class C Certificates.
      Pursuant to each such notional principal contract, all Holders of Certificates
      (other than the Class C Certificates and Class R Certificates) shall be treated
      as having agreed to pay, on each Distribution Date, to the Holder of the Class
      C
      Certificates an aggregate amount equal to the excess, if any, of (i) the amount
      payable on such Distribution Date on the REMIC III Regular Interest
      corresponding to such Class of Certificates over (ii) the amount payable on
      such
      Class of Certificates on such Distribution Date (such excess, a “Class IO
      Distribution Amount”). A Class IO Distribution Amount payable from interest
      collections shall be allocated pro
      rata
      among
      such Certificates based on the excess of, with respect to each such Certificate,
      (i) the amount of interest otherwise payable to the REMIC III Regular Interest
      relating to such Certificate over (ii) the amount of interest payable to such
      Certificate at a per annum rate equal to the Net WAC Cap Rate, and a Class
      IO
      Distribution Amount payable from principal collections shall be allocated to
      the
      most subordinate Class of Certificates with an outstanding principal balance
      to
      the extent of such balance. In addition, pursuant to such notional principal
      contract, the Holder of the Class C Certificates shall be treated as having
      agreed to pay Basis Risk Shortfall Carry Forward Amounts with respect to the
      Holders of the Certificates (other than the Class C Certificates and Class
      R
      Certificates) in accordance with the terms of this Agreement. Any payments
      to
      the Certificates from amounts deemed received in respect of this notional
      principal contract shall not be payments with respect to a Regular Interest
      in a
      REMIC within the meaning of Code Section 860G(a)(1). However, any payment from
      the Certificates (other than the Class C Certificates and Class R Certificates)
      of a Class IO Distribution Amount shall be treated for tax purposes as having
      been received by the Holders of such Certificates in respect of their interests
      in REMIC III and as having been paid by such Holders to the Swap Administrator
      pursuant to the notional principal contract. Thus, each Certificate (other
      than
      the Class R Certificates) shall be treated as representing not only ownership
      of
      a Regular Interest in REMIC III, but also ownership of an interest in, and
      obligations with respect to, a notional principal contract.

     

    Section
      4.15  Reserved. 

     

    Section
      4.16  Tax
      Treatment of Class IO Distribution Amounts in the Event of Resecuritization
      of
      Class A, Class M or Class B Certificates. 

     

    In
      the
      event that any Class A, Class M or Class B Certificate is resecuritized in
      a
      REMIC (the “Resecuritization REMIC”), for federal income tax purposes, (i)
      payments on the REMIC III Regular Interest corresponding to such Class A, Class
      M or Class B Certificate shall, for the avoidance of doubt, be deemed to include
      the related Class IO Distribution Amount, and (ii) to the extent provided in
      the
      operative documents for the Resecuritization REMIC, (a) payments on the “regular
      interests” issued by the Resecuritization REMIC shall be deemed to include in
      the aggregate such Class IO Distribution Amount, and (b) such Class IO
      Distribution Amount shall be deemed paid to the Holder of the Class C
      Certificates pursuant to a notional principal contract entered into by the
      holders of one or more “regular interests” issued by the Resecuritization REMIC
      (“Resecuritization Holders”) and the Holder of the Class C Certificates. In such
      event, Class IO Distribution Amounts deemed paid by Resecuritization Holders
      under clause (b) of the immediately preceding sentence shall be paid on behalf
      of such holders pursuant to Section 4.14(c) hereof.

     

    ARTICLE
      V

     

    ACCOUNTS

     

    Section
      5.01  Collection
      of Mortgage Loan Payments; Protected Account. 

     

    (a)  The
      Company shall make reasonable efforts in accordance with customary and usual
      standards of practice of prudent mortgage lenders in the respective states
      in
      which the Mortgaged Properties related to the EMC Mortgage Loans are located
      to
      collect all payments called for under the terms and provisions of the EMC
      Mortgage Loans to the extent such procedures shall be consistent with this
      Agreement and the terms and provisions of any related Required Insurance Policy.
      Consistent with the foregoing, the Company may in its discretion (i) waive
      any
      late payment charge and (ii) extend the Due Dates for payments due on a Mortgage
      Note related to an EMC Mortgage Loan for a period not greater than 125 days,
      provided that, EMC shall not extend the payment date of any Mortgage Loan beyond
      the date of its final maturity date. In the event of any such arrangement,
      the
      Company shall make Advances on the related EMC Mortgage Loan during the
      scheduled period in accordance with the amortization schedule of such EMC
      Mortgage Loan without modification thereof by reason of such arrangements,
      and
      shall be entitled to reimbursement therefor in accordance with Section 6.01.
      The
      Company shall not be required to institute or join in litigation with respect
      to
      collection of any payment (whether under a Mortgage, Mortgage Note or otherwise
      or against any public or governmental authority with respect to a taking or
      condemnation) if it reasonably believes that enforcing the provision of the
      Mortgage or other instrument pursuant to which such payment is required is
      prohibited by applicable law. In addition, if (x) an EMC Mortgage Loan is in
      default or default is reasonably foreseeable, the Company may also waive, modify
      or vary any term of any EMC Mortgage Loan or
      consent to the postponement of strict compliance with any such term or in any
      manner grant indulgence to any mortgagor, including without limitation, to
      (1)
      capitalize any amounts owing on the EMC Mortgage Loan by adding such amount
      to
      the outstanding principal balance of the EMC Mortgage Loan, (2) defer such
      amounts to a later date or the final payment date of such Mortgage Loan, (3)
      extend the maturity of any such EMC Mortgage Loan, but in no instance past
      the
      date on which the final payment is due on the latest maturing Mortgage Loan
      as
      of the Cut-off Date, and/or (4) reduce the related Mortgage Rate (subject to
      clause (y) below), provided that, in the Company’s determination, such waiver,
      modification, postponement or indulgence is not materially adverse to the
      interests of the Certificateholders (taking into account any estimated Realized
      Loss that might result absent such action), or (y)
      the
      Company delivers to the Trustee, Securities Administrator and Master Servicer
      a
      certification addressed to the Trustee and the Securities Administrator, based
      on the advice of counsel or certified public accountants, in either case, that
      have a national reputation with respect to taxation of REMICs, that a
      modification of such EMC Mortgage Loan will not result in the imposition of
      taxes on or disqualify from REMIC status any of REMIC I, REMIC II, REMIC III,
      REMIC IV or REMIC V, the Company may if it reasonably believes that undertaking
      such actions would be in the best interest of the Certificateholders, (A) amend
      the related Mortgage Note to reduce the Mortgage Rate applicable thereto,
      provided that such reduced Mortgage Rate shall in no event be lower than 5.00%
      with respect to any EMC Mortgage Loan and (B) amend any Mortgage Note related
      to
      an EMC Mortgage Loan to extend the maturity thereof; provided that, EMC shall
      not extend the payment date of any Mortgage Loan beyond its final maturity
      date.

     

    In
      accordance with the standards of the first paragraph of Section 3.01, the
      Company shall not waive (or permit a sub-servicer to waive) any Prepayment
      Charge related to an EMC Mortgage Loan unless: (i) the enforceability thereof
      shall have been limited by bankruptcy, insolvency, moratorium, receivership
      and
      other similar laws relating to creditors’ rights generally, (ii) the enforcement
      thereof is illegal, or any local, state or federal agency has threatened legal
      action if the prepayment penalty is enforced, (iii) the mortgage debt has been
      accelerated in connection with a foreclosure or other involuntary payment or
      (iv) such waiver is standard and customary in servicing similar Mortgage Loans
      and relates to a default or a reasonably foreseeable default and would, in
      the
      reasonable judgment of the Company, maximize recovery of total proceeds taking
      into account the value of such Prepayment Charge and the related EMC Mortgage
      Loan. If a Prepayment Charge is waived, but does not meet the standards
      described above, then the Company is required to pay the amount of such waived
      Prepayment Charge, for the benefit of the Class C Certificates, by remitting
      such amount to the Master Servicer by the Remittance Date.
      Payments
      of such waived charges shall not be payments in respect of any Regular
      Interest.

     

    (b)  The
      Company shall establish and maintain a Protected Account (which shall at all
      times be an Eligible Account) with a depository institution in the name of
      the
      Company for the benefit of the Trustee on behalf of the Certificateholders
      and
      designated “EMC Mortgage Corporation, as servicer on behalf of Citibank, N.A.,
      as Trustee, for the benefit of the certificateholders, in trust for registered
      Holders of SACO I Trust 2006-9, Mortgage-Backed Certificates, Series 2006-9”.
      The Company shall deposit or cause to be deposited into the Protected Account
      on
      a daily basis within one Business Day of receipt, except as otherwise
      specifically provided herein, the following payments and collections remitted
      by
      subservicers or received by it in respect of the EMC Mortgage Loans subsequent
      to the Cut-off Date (other than in respect of principal and interest due on
      the
      EMC Mortgage Loans on or before the Cut-off Date) and the following amounts
      required to be deposited hereunder:

     

    (i)  all

      payments on account of principal, including Principal Prepayments, on the EMC
      Mortgage Loans;

     

    (ii)  all
      payments on account of interest on the EMC Mortgage Loans net of the related
      Servicing Fee permitted under Section 3.13, if any;

     

    (iii)  all
      Liquidation Proceeds, Subsequent Recoveries and Insurance Proceeds with respect
      to any EMC Mortgage Loans, other than proceeds to be applied to the restoration
      or repair of the Mortgaged Property or released to the Mortgagor in accordance
      with the Company’s normal servicing procedures;

     

    (iv)  any
      amount required to be deposited by the Company pursuant to Section 5.01(c)
      in
      connection with any losses on Permitted Investments;

     

    (v)  any
      amounts required to be deposited by the Company pursuant to Section
      3.07;

     

    (vi)  any
      Prepayment Charges collected on the EMC Mortgage Loans; and

     

    (vii)  any
      other
      amounts required to be deposited hereunder.

     

    The
      foregoing requirements for deposit by the Company
      into the
      Protected Account shall be exclusive, it being understood and agreed that,
      without limiting the generality of the foregoing, payments in the nature of
      late
      payment charges or assumption fees, if collected, need not be deposited by
      the
      Company. In the event that the Company shall deposit any amount not required
      to
      be deposited and not otherwise subject to withdrawal pursuant to Section 5.02,
      it may at any time withdraw or direct the institution maintaining the Protected
      Account, to withdraw such amount from the Protected Account, any provision
      herein to the contrary notwithstanding. Such withdrawal or direction may be
      accomplished by delivering written notice thereof to the institution maintaining
      the Protected Account, that describes the amounts deposited in error in the
      Protected Account. The Company shall maintain adequate records with respect
      to
      all withdrawals made pursuant to this Section. All funds deposited in the
      Protected Account shall be held in trust for the Certificateholders until
      withdrawn in accordance with Section 5.02.

     

    (c)  The
      institution that maintains the Protected Account shall invest the funds in
      the
      Protected Account, in the manner directed by the Company,
      in
      Permitted Investments which shall mature not later than the Business Day
      immediately preceding the Remittance Date and shall not be sold or disposed
      of
      prior to its maturity. All such Permitted Investments shall be made in the
      name
      of the Trustee, for the benefit of the Certificateholders. All income and gain
      net of any losses realized from any such investment shall be for the benefit
      of
      the Company
      as
      servicing compensation and shall be remitted to it monthly as provided herein.
      The amount of any losses incurred in the Protected Account in respect of any
      such investments shall be deposited by the Company
      into the
      Protected Account, out of the Company’s
      own
      funds.

     

    (d)  The
      Company
      shall
      give at least 30 days advance notice to the Trustee, the Securities
      Administrator, the Seller, the Master Servicer, each Rating Agency and the
      Depositor of any proposed change of location of the Protected Account prior
      to
      any change thereof.

     

    Section
      5.02  Permitted
      Withdrawals From the Protected Account. 

     

    (a)  The
      Company
      may from
      time to time make withdrawals from the Protected Account for the following
      purposes:

     

    (i)  to
      pay
      itself (to the extent not previously paid to or withheld by the Company),
      as
      servicing compensation in accordance with Section 3.13, that portion of any
      payment of interest that equals the Servicing Fee for the period with respect
      to
      which such interest payment was made, and, as additional servicing compensation,
      those other amounts set forth in Section 3.13;

     

    (ii)  to
      reimburse the Company
      for
      Advances made by it with respect to the Mortgage Loans, provided, however,
      that
      the Company’s
      right
      of reimbursement pursuant to this subclause (ii) shall be limited to amounts
      received on particular EMC Mortgage Loan(s) (including, for this purpose,
      Liquidation Proceeds and Insurance Proceeds and Subsequent Recoveries) that
      represent late recoveries of payments of principal and/or interest on such
      particular EMC Mortgage Loan(s) in respect of which any such Advance was
      made;

     

    (iii)  to
      reimburse the Company
      for any
      previously made portion of a Servicing Advance or an Advance made by the
Company
      that, in
      the good faith judgment of the Company,
      will
      not be ultimately recoverable by it from the related Mortgagor, any related
      Liquidation Proceeds, Insurance Proceeds or otherwise (a “Nonrecoverable
      Advance”), to the extent not reimbursed pursuant to clause (ii) or clause
      (v);

     

    (iv)  to
      pay
      the Company
      any
      unpaid Servicing Fees and to reimburse it for any unreimbursed Servicing
      Advances, provided, however, that the Company’s
      right
      to reimbursement for Servicing Advances pursuant to this subclause (v) with
      respect to any Mortgage Loan shall be limited to amounts received on particular
      Mortgage Loan(s) (including, for this purpose, Liquidation Proceeds, Insurance
      Proceeds, Subsequent Recoveries and purchase and repurchase proceeds) that
      represent late recoveries of the payments for which such Servicing Advances
      were
      made;

     

    (v)  to
      pay to
      EMC (in its capacity as Seller), the Depositor or itself, as applicable, with
      respect to each EMC Mortgage Loan or property acquired in respect thereof that
      has been purchased pursuant to Section 2.02, 2.03 or 3.05 of this Agreement,
      all
      amounts received thereon and not taken into account in determining the related
      Stated Principal Balance of such repurchased EMC Mortgage Loan;

     

    (vi)  to
      pay
      any expenses recoverable by the Company
      pursuant
      to Section 8.04 of this Agreement;

     

    (vii)  to
      withdraw pursuant to Section 5.01 any amount deposited in the Protected Account
      and not required to be deposited therein; and

     

    (viii)  to
      clear
      and terminate the Protected Account upon termination of this Agreement pursuant
      to Section 11.01 hereof.

     

    In
      addition, no later than 1:00 p.m. New York City time on the Remittance Date,
      the
      Company shall withdraw from the Protected Account and remit to the Master
      Servicer, for deposit in the Master Servicer Collection Account the amount
      required to be withdrawn therefrom pursuant to Section 5.05 hereof.

     

    With
      respect to any remittance received by the Master Servicer from EMC after the
      date on which such remittance was due, EMC shall pay to the Master Servicer
      interest on any such late payment at an annual rate equal to the Prime Rate,
      adjusted as of the date of each change, plus two percentage points, but in
      no
      event greater that the maximum amount permitted by applicable law. Such interest
      shall be remitted to the Master Servicer on the date such late payment is made
      and shall cover the period commencing with the day following the date on which
      such remittance was due and ending with the Business Day on which such
      remittance is made, both inclusive. The payment by EMC of any such interest
      shall not be deemed an extension of time for payment or a waiver of any Event
      of
      Default with respect to EMC.

     

    The
      Company
      shall
      keep and maintain separate accounting, on a Mortgage Loan by Mortgage Loan
      basis, for the purpose of justifying any withdrawal from the Protected Account
      pursuant to subclauses (i), (ii), (iv), (v) and (vi) above. Prior to making
      any
      withdrawal from the Protected Account pursuant to subclause (iii), the Company
      shall deliver to the Master Servicer an Officer’s Certificate of a Servicing
      Officer indicating the amount of any previous Advance or Servicing Advance
      determined by the Company to be a Nonrecoverable Advance and identifying the
      related EMC Mortgage Loan(s), and their respective portions of such
      Nonrecoverable Advance.

     

    Section
      5.03  Reports
      to the Master Servicer.

     

    (a)
       On
      or
      before the tenth calendar day of each month, the Company shall furnish to the
      Master Servicer electronically in a format acceptable to the Master Servicer
      loan accounting reports in the investor’s assigned loan number order to document
      the payment activity on each EMC Mortgage Loan on an individual mortgage loan
      basis. With respect to each month, such loan accounting reports shall be in
      the
      format agreed to by the Company and the Master Servicer, including but not
      limited to the following information with respect to each EMC Mortgage
      Loan:

     

    (i)  with
      respect to each Scheduled Payment (on both an actual and scheduled basis with
      respect to Mortgage Loan balances and on an actual basis with respect to
      paid-through dates), the amount of such remittance allocable to principal
      (including a separate breakdown of any Principal Prepayment, including the
      amount of any Prepayment Interest Shortfall);

     

    (ii)  with
      respect to each Monthly Payment, the amount of such remittance allocable to
      scheduled interest;

     

    (iii)  the
      amount of servicing compensation received by the Company during the prior
      calendar month;

     

    (iv)  the
      aggregate stated principal balance of the EMC Mortgage Loans;

     

    (v)  the
      aggregate amount of Advances made by the Company pursuant to Section
      6.01;

     

    (vi)  the
      aggregate of any expenses reimbursed to the Company during the prior calendar
      month pursuant to Section 5.02;

     

    (vii)  the
      number and aggregate Stated Principal Balance of the Mortgage Loans (A)
      Delinquent (exclusive of Mortgage Loans in foreclosure and bankruptcy) (1)
      30
      days Delinquent, (2) 60 days Delinquent and (3) 90 days or more Delinquent,
      (B)
      in foreclosure and delinquent and (1) 30 days Delinquent, (2) 60 days Delinquent
      and (3) 90 days or more Delinquent (C) in bankruptcy and delinquent (1) 30
      days
      Delinquent, (2) 60 days Delinquent and (3) 90 days or more Delinquent, in each
      case as of the close of business on the last day of the calendar month preceding
      such Distribution Date; 

     

    (viii)  the
      amount of any Prepayment Charges collected by the Company and the amount of
      Prepayment Charges paid by the Company in connection with a waiver that is
      not
      permitted under this Agreement, and

     

    (ix)  any
      other
      information necessary for the Securities Administrator to prepare the Monthly
      Statement pursuant to Section 6.06, including any information required to be
      provided pursuant to Item 1121 of Regulation AB.

     

    On
      or
      before the seventeenth calendar day of each month, or if such day is not a
      Business

    Day,
      the
      succeeding Business Day, the Company shall furnish to the Master Servicer
      electronically in a format acceptable to the Master Servicer a report of all
      Principal Prepayments made during the related Prepayment Period.

    

    (b) The
      Master Servicer and the Securities Administrator shall be entitled to rely
      conclusively on the data provided by the Company and the related Servicer
      pursuant to Section 5.03(a) above and shall have no liability for any errors
      in
      such Mortgage Loan data.

     

    Section
      5.04  Collection
      of Taxes; Assessments and Similar Items; Escrow Accounts. 

     

    With
      respect to each EMC Mortgage Loan, to the extent required by the related
      Mortgage Note, the Company shall establish and maintain one or more accounts
      (each, an “Escrow Account”) and deposit and retain therein all collections from
      the Mortgagors (or Servicing Advances by the Company) for the payment of taxes,
      assessments, hazard insurance premiums or comparable items for the account
      of
      the Mortgagors. Nothing herein shall require the Company to compel a Mortgagor
      to establish an Escrow Account in violation of applicable law.

     

    Withdrawals
      of amounts so collected from the Escrow Accounts may be made only to effect
      timely payment of taxes, assessments, hazard insurance premiums, condominium
      or
      PUD association dues, or comparable items, to reimburse the Company out of
      related collections for any payments made with respect to each EMC Mortgage
      Loan
      pursuant to Section 3.01 (with respect to taxes and assessments and insurance
      premiums) and Section 3.07 (with respect to hazard insurance), to refund to
      any
      Mortgagors for any EMC Mortgage Loans any sums as may be determined to be
      overages, to pay interest, if required by law or the terms of the related
      Mortgage or Mortgage Note, to such Mortgagors on balances in the Escrow Account
      or to clear and terminate the Escrow Account at the termination of this
      Agreement in accordance with Section 11.01 thereof. The Escrow Account shall
      not
      be a part of the Trust Fund.

     

    Section
      5.05  Protected
      Accounts. 

     

    (a) The
      Master Servicer shall enforce the obligation of the Company and the related
      Servicers to establish and maintain a Protected Account in accordance with
      this
      Agreement and the Servicing Agreements, with records to be kept with respect
      thereto on a Mortgage Loan by Mortgage Loan basis, into which accounts shall
      be
      deposited within one Business Day (or as of such other time specified in the
      Servicing Agreements) of receipt all collections of principal and interest
      on
      any Mortgage Loan and with respect to any REO Property received by the Company
      or the related Servicer, including Principal Prepayments, Insurance Proceeds,
      Liquidation Proceeds, Subsequent Recoveries, and advances made from the
      Company’s or such Servicer’s own funds (less servicing compensation as permitted
      by this Agreement or the related Servicing Agreement) and all other amounts
      to
      be deposited in the Protected Accounts. Each of the Company and the related
      Servicers is hereby authorized to make withdrawals from and deposits to the
      related Protected Account for purposes required or permitted by this Agreement.
      To the extent provided in this Agreement or any Servicing Agreement, the
      Protected Account shall be held in a Designated Depository Institution and
      segregated on the books of such institution in the name of the Company or
      Servicer, as applicable on behalf of the Trustee for the benefit of
      Certificateholders.

     

    (b) To
      the
      extent provided in this Agreement or any Servicing Agreement, amounts on deposit
      in a Protected Account may be invested in Permitted Investments in the name
      of
      the Trustee for the benefit of Certificateholders and, except as provided in
      the
      preceding paragraph, not commingled with any other funds, such Permitted
      Investments to mature, or to be subject to redemption or withdrawal, no later
      than the date on which such funds are required to be withdrawn for deposit
      in
      the Master Servicer Collection Account, and shall be held until required for
      such deposit. The income earned from Permitted Investments made pursuant to
      this
      Section 5.05 shall be paid to the Company or the related Servicer under this
      Agreement or the related Servicing Agreement, and the risk of loss of moneys
      required to be distributed to the Certificateholders resulting from such
      investments shall be borne by and be the risk of the Company or the related
      Servicer, as the case may be. The Company or the related Servicer (to the extent
      provided in this Agreement or the related Servicing Agreement) shall deposit
      the
      amount of any such loss in the Protected Account within two Business Days of
      receipt of notification of such loss but not later than the second Business
      Day
      prior to the Distribution Date on which the moneys so invested are required
      to
      be distributed to the Certificateholders.

     

    (c) To
      the
      extent provided in this Agreement or the related Servicing Agreement and subject
      to this Article V, on or before 1:00 p.m. New York City time on each Remittance
      Date, the Company or the related Servicer shall withdraw or shall cause to
      be
      withdrawn from its Protected Account and shall immediately deposit or cause
      to
      be deposited in the Master Servicer 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):

     

    (i) Scheduled
      Payments on the Mortgage Loans received or any related portion thereof advanced
      by the Company or the related Servicer pursuant to the related Servicing
      Agreement which were due on or before the related Due Date, net of the amount
      thereof comprising the Servicing Fees;

     

    (ii) Full
      Principal Prepayments and any Liquidation Proceeds received by the Company
      or
      the related Servicer 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;

     

    (iii) Partial
      Principal Prepayments received by the Company or the related Servicer for such
      Mortgage Loans in the related Prepayment Period, together with any related
      payments of Compensating Interest;

     

    (iv) Any
      amount to be used as an Advance; and

     

    (v) The
      amount of any Prepayment Charges collected with respect to the Mortgage Loans
      and the amount of any Prepayment Charges paid by the Company or the related
      Servicer in connection with the waiver of a Prepayment Charge in a manner that
      is not permitted under this Agreement or the related Servicing
      Agreement.

     

    (d) Withdrawals
      may be made from a Protected Account by the Company as described in Section
      5.02
      hereof and by the Master Servicer or the related Servicer only to make
      remittances as provided in Section 5.05(c), 5.08 and 5.09; to reimburse the
      Master Servicer or the related 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 11.01. As provided in Sections 5.05(c)
      and
      5.06(b) certain amounts otherwise due to the related Servicer may be retained
      by
      the related Servicer and need not be deposited in the Master Servicer Collection
      Account.

     

    Section
      5.06  Master
      Servicer Collection Account. 

     

    (a)  The
      Master Servicer shall establish and maintain in the name of LaSalle Bank
      National Association, as Master Servicer, on behalf of the Trustee, for the
      benefit of the Certificateholders, the Master Servicer Collection Account which
      shall be an Eligible Account. The Master Servicer will deposit in the Master
      Servicer Collection Account as identified by the Master Servicer and as received
      by the Master Servicer, the following amounts:

     

    (i)  any
      Advance and any Compensating Interest Payments;

     

    (ii)  any
      Insurance Proceeds, Liquidation Proceeds or Subsequent Recoveries received
      by
      the Master Servicer;

     

    (iii)  the
      Repurchase Price with respect to any Mortgage Loans purchased by the Seller
      pursuant to Section 2.02 or 2.03, the Repurchase Price with respect to any
      Mortgage Loans purchased by EMC pursuant to Section 3.05, and all proceeds
      of
      any Mortgage Loans or property acquired with respect thereto repurchased by
      the
      Seller or its designee pursuant to Section 11.01;

     

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

     

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

     

    (b)  All
      amounts deposited to the Master Servicer Collection Account shall be held by
      the
      Master Servicer in the name of the Trustee in trust for the benefit of the
      Certificateholders in accordance with the terms and provisions of this
      Agreement. The requirements for crediting the Master Servicer Collection Account
      shall be exclusive, it being understood and agreed that, without limiting the
      generality of the foregoing, payments in the nature of late payment charges
      or
      assumption, tax service, statement account or payoff, substitution,
      satisfaction, release and other like fees and charges, need not be credited
      by
      the Master Servicer to the Master Servicer Collection Account. 

     

    (c)  The
      amount at any time credited to the Master Servicer Collection Account may be
      invested, in the name of the Trustee, or its nominee, for the benefit of the
      Certificateholders, in Permitted Investments or be held in cash as directed
      by
      the Securities Administrator. All Permitted Investments shall mature or be
      subject to redemption or withdrawal on or before, and shall be held until,
      the
      next succeeding Distribution Account Deposit Date. Any and all investment
      earnings from the Master Servicer Collection Account shall be paid to the
      Securities Administrator. The risk of loss of moneys required to be distributed
      to the Certificateholders resulting from such investments shall be borne by
      and
      be the risk of the Securities Administrator. The Securities Administrator shall
      deposit the amount of any such loss in the Master Servicer Collection Account
      within two Business Days of receipt of notification of such loss but not later
      than the second Business Day prior to the Distribution Date on which the moneys
      so invested are required to be distributed to the
      Certificateholders.

     

    Section
      5.07  Permitted
      Withdrawals and Transfers from the Master Servicer Collection
      Account. 

     

    (a)  The
      Master Servicer will make such withdrawals or transfers from the Master Servicer
      Collection Account as the Master Servicer has designated for such transfer
      or
      withdrawal pursuant to this Agreement. The Master Servicer may clear and
      terminate the Master Servicer Collection Account pursuant to Section 11.01
      and
      from time to time remove amounts deposited in error.

     

    (b)  On
      an
      ongoing basis, the Master Servicer shall withdraw from the Master Servicer
      Collection Account to pay itself as provided in Section 4.09 and to pay any
      expenses, costs and liabilities recoverable by the Trustee, the Swap Provider,
      the Master Servicer, each Custodian or the Securities Administrator pursuant
      to
      Sections 4.02, 8.03, 8.04, 9.05 and 10.05; provided however, that the Master
      Servicer shall be obligated to pay from its own funds any amounts which it
      is
      required to pay under Section 8.03(a).

     

    (c)  In
      addition, on or before each Distribution Account Deposit Date, the Master
      Servicer shall remit to the Securities Administrator for deposit in the
      Distribution Account any Advances required to be made by the Master Servicer
      with respect to the Mortgage Loans.

     

    (d)  No
      later
      than 3:00 p.m. New York time on each Distribution Account Deposit Date (or
      at
      such other time and date as is mutually agreed upon between the Master Servicer
      and the Securities Administrator), the Master Servicer will transfer all
      available funds on deposit in the Master Servicer Collection Account with
      respect to the related Distribution Date to the Securities Administrator for
      deposit in the Distribution Account. In the event that the Master Servicer
      shall
      deposit or cause to be deposited to the Distribution Account any amount not
      required to be credited thereto, the Securities Administrator, upon receipt
      of a
      written request therefor signed by a Master Servicing Officer of the Master
      Servicer, shall promptly transfer such amount to the Master Servicer, any
      provision herein to the contrary notwithstanding.

     

    Section
      5.08  Distribution
      Account. 

     

    (a)  The
      Securities Administrator shall establish and maintain in the name of the
      Securities Administrator, on behalf of the Trustee, for the benefit of the
      Certificateholders, the Distribution Account as a segregated trust account
      or
      accounts.

     

    (b)  All
      amounts deposited to the Distribution Account shall be held by the Securities
      Administrator in the name of the Trustee in trust for the benefit of the
      Certificateholders in accordance with the terms and provisions of this
      Agreement.

     

    (c)  The
      Distribution Account shall constitute an Eligible Account of the Trust Fund
      segregated on the books of the Securities Administrator and held by the
      Securities Administrator, and the Distribution 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 Securities Administrator
      (whether made directly, or indirectly through a liquidator or receiver of the
      Securities Administrator). The amount at any time credited to the Distribution
      Account may be, as directed by the Securities Administrator, held either
      uninvested or invested in the name of the Trustee, in such Permitted Investments
      as may be selected by the Securities Administrator on such direction which
      mature not later than the Business Day immediately preceding the next
      Distribution Date. Permitted Investments in respect of the Distribution Account
      shall not be sold or disposed of prior to their maturity. All investment
      earnings on amounts on deposit in the Distribution Account or benefit from
      funds
      uninvested therein from time to time shall be for the account of the Securities
      Administrator. The Securities Administrator shall be permitted to receive
      distribution of any and all investment earnings from the Distribution Account
      on
      each Distribution Date. If there is any loss on a Permitted Investment or demand
      deposit, the Securities Administrator shall deposit the amount of the loss
      in
      the Distribution Account from its own funds. With respect to the Distribution
      Account and the funds deposited therein, the Securities Administrator shall
      take
      such action as may be necessary to ensure that the Certificateholders shall
      be
      entitled to the priorities afforded to such a trust account (in addition to
      a
      claim against the estate of the Trustee) as provided by 12 U.S.C. § 92a(e), and
      applicable regulations pursuant thereto, if applicable.

     

    Section
      5.09  Permitted
      Withdrawals and Transfers from the Distribution Account. 

     

    (a)  The
      Securities Administrator will from time to time make or cause to be made such
      withdrawals or transfers from the Distribution Account as are designated for
      such transfer or withdrawal pursuant to this Agreement any the Servicing
      Agreement (limited in the case of amounts due the Master Servicer to those
      not
      withdrawn from the Master Servicer Collection Account in accordance with the
      terms of this Agreement):

     

    (i)  to
      reimburse the Master Servicer, the Company or the related Servicer for any
      unreimbursed Advance or Servicing Advance of its own funds pursuant to this
      Agreement or the related Servicing Agreement, such right of the Master Servicer,
      the Company or the related Servicer to reimbursement pursuant to this subclause
      (i) being limited to amounts received on a particular Mortgage Loan (including,
      for this purpose, the Repurchase 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
      or
      Servicing Advance was made;

     

    (ii)  to
      reimburse the Master Servicer, the Company or the related Servicer from
      Insurance Proceeds or Liquidation Proceeds relating to a particular Mortgage
      Loan for unreimbursed amounts expended by the Master Servicer, the Company
      or
      the related 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, the Company or the related Servicer from
      Insurance Proceeds relating to a particular Mortgage Loan for unreimbursed
      expenses incurred with respect to such Mortgage Loan and to reimburse the Master
      Servicer, the Company or the related Servicer from Liquidation Proceeds from
      a
      particular Mortgage Loan for Liquidation Expenses incurred with respect to
      such
      Mortgage Loan; provided that the Master Servicer shall not be entitled to
      reimbursement for Liquidation Expenses with respect to a Mortgage Loan to the
      extent that (i) any amounts with respect to such Mortgage Loan were paid as
      Excess Liquidation Proceeds pursuant to clause (x) of this Subsection (a) to
      the
      Master Servicer; and (ii) such Liquidation Expenses were not included in the
      computation of such Excess Liquidation Proceeds;

     

    (iv)  to
      reimburse the Master Servicer, the Company or a Servicer for any Advance or
      Servicing Advance, after a Realized Loss has been allocated with respect to
      the
      related Mortgage Loan if the Advance or Servicing Advance has not been
      reimbursed pursuant to clauses (i) through (iii);

     

    (v)  to
      pay
      the Master Servicer as set forth in Section 4.09;

     

    (vi)  to
      reimburse the Master Servicer for expenses, costs and liabilities incurred
      by
      and reimbursable to it pursuant to Sections 4.02, 8.04(c) and (d) and 12.02
      or
      otherwise reimbursable to it pursuant to this Agreement;

     

    (vii)  to
      pay to
      the Master Servicer, as additional master servicing compensation, any Excess
      Liquidation Proceeds to the extent not retained by the Company or the related
      Servicer;

     

    (viii)  to
      reimburse or pay the Company or the related Servicer any such amounts as are
      due
      thereto under this Agreement or the related Servicing Agreement and have not
      been retained by or paid to the Company or the related Servicer, to the extent
      provided herein and in the related Servicing Agreement;

     

    (ix)  to
      reimburse the Trustee, the Custodian or the Securities Administrator for
      expenses, costs and liabilities incurred by or reimbursable to it pursuant
      to
      this Agreement (to the extent not reimbursed from the Master Servicer Collection
      Account in accordance with Section 5.07);

     

    (x)  to
      remove
      amounts deposited in error; 

     

    (xi)  to
      make
      distributions to the Swap Administrator for payment to the Swap Provider as
      provided in this Agreement; and

     

    (xii)  to
      clear
      and terminate the Distribution Account pursuant to Section 11.01.

     

    (b)  The
      Master Servicer shall keep and maintain separate accounting, on a Mortgage
      Loan
      by Mortgage Loan basis, for the purpose of accounting for any reimbursement
      from
      the Distribution Account pursuant to subclauses (i) through (iv), inclusive,
      and
      (vi) 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 Distribution Account under Section 5.08.

     

    (c)  On
      each
      Distribution Date, the Securities Administrator shall distribute the related
      Interest Remittance Amount and Principal Distribution Amount to the extent
      of
      funds on deposit in the Distribution Account to the holders of the related
      Certificates in accordance with Section 6.04.

     

    

     

    ARTICLE
      VI

     

    DISTRIBUTIONS
      AND ADVANCES

     

    Section
      6.01  Advances. 

     

    (a) The
      Company shall make an Advance with respect to any EMC Mortgage Loan and deposit
      such Advance in the Master Servicer Collection Account no later than 1:00 p.m.
      Eastern time on the Remittance Date in immediately available funds. The Company
      or the related Servicer, as applicable, shall be obligated to make any such
      Advance only to the extent that such advance would not be a Nonrecoverable
      Advance. If the Company or the related Servicer shall have determined that
      it
      has made a Nonrecoverable Advance or that a proposed Advance or a lesser portion
      of such Advance would constitute a Nonrecoverable Advance, the Company or the
      related Servicer, as the case may be, shall deliver (i) to the Securities
      Administrator for the benefit of the Certificateholders constituting the
      remaining portion of such Advance, if applicable, and (ii) to the Depositor,
      the
      Master Servicer, each Rating Agency, and the Trustee an Officer’s Certificate
      setting forth the basis for such determination. 

     

    In
      lieu
      of making all or a portion of such Advance from its own funds, the Company
      may
      (i) cause to be made an appropriate entry in its records relating to the
      Protected Account that any Amounts Held for Future Distribution has been used
      by
      the Company in discharge of its obligation to make any such Advance and (ii)
      transfer such funds from the Protected Account to the Distribution Account.
      Any
      funds so applied and transferred shall be replaced by the Company by deposit
      in
      the Distribution Account, no later than the close of business on the Remittance
      Date immediately preceding the Distribution Account Deposit Date on which such
      funds are required to be distributed pursuant to this Agreement.

     

    Unless
      otherwise described in this Pooling and Servicing Agreement, each Servicer
      shall
      discontinue making advances with respect to any Mortgage Loan that becomes
      90
      days delinquent. In addition, subject to Section 4.08 of the Agreement, each
      Servicer will charge off a related Mortgage Loan at the time such Mortgage
      Loan becomes 180 days delinquent unless such Servicer reasonably believes that
      it may be able to obtain a net recovery through foreclosure proceedings or
      other
      conversion of the related Mortgage Loan. Once a Mortgage Loan is charged off,
      the related Servicer shall not be entitled to any additional Servicing Fee
      for
      such Mortgage Loan, except to the extent of any unpaid Servicing Fees and
      expenses which shall be reimbursable from any recoveries on such Mortgage Loan,
      and the Mortgage Loan shall be treated as a Liquidated Mortgage Loan giving
      rise
      to a Realized Loss. If the related Servicer determines that a net recovery
      is
      possible through foreclosure proceedings or other disposition of the Mortgage
      Loan that becomes 90 days Delinquent, the related Servicer may continue making
      advances on such Mortgage Loan.

     

    The
      Company shall be entitled to be reimbursed from the Protected Account for all
      Advances of its own funds made pursuant to this Section as provided in Section
      5.02. The obligation to make Advances with respect to any EMC Mortgage Loan
      shall continue until such EMC Mortgage Loan is paid in full or the related
      Mortgaged Property or related REO Property has been liquidated or until the
      purchase or repurchase thereof (or substitution therefor) from the Trust Fund
      pursuant to any applicable provision of this Agreement, except as otherwise
      provided in this Section 6.01.

     

    (b) If
      the
      Scheduled 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 and for
      which
      the Company or the related Servicer was required to make an Advance pursuant
      to
      this Agreement or the related Servicing Agreement exceeds the amount deposited
      in the Master Servicer Collection Account which shall be used for an Advance
      with respect to such Mortgage Loan, the Master Servicer will deposit in the
      Master Servicer Collection Account not later than the Distribution Account
      Deposit Date immediately preceding the related Distribution Date an amount
      equal
      to such deficiency, net of the Master Servicing Fee and the 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 Company or the related Servicer is required to do so under
      this Agreement or the related Servicing Agreement, as applicable. If applicable,
      on the Distribution Account Deposit Date, the Master Servicer shall present
      an
      Officer’s Certificate to the Trustee (i) stating that the Master Servicer elects
      not to make an Advance in a stated amount and (ii) detailing the reason it
      deems
      the advance to be nonrecoverable. The Master Servicer may rely on any
      non-recoverability determination of the Company or any Servicer.

     

    Subject
      to and in accordance with the provisions of Article IX hereof, in the event
      the
      Master Servicer fails to make such Advance, then the Trustee, as Successor
      Master Servicer, shall be obligated to make such Advance, subject to the
      provisions of this Section 6.01.

     

    Section
      6.02  Compensating
      Interest Payments. 

     

    (a)  In
      the
      event that there is a Prepayment Interest Shortfall arising from a voluntary
      Principal Prepayment in part or in full by the Mortgagor with respect to any
      EMC
      Mortgage Loan, the Company shall, to the extent of the Servicing Fee for such
      Distribution Date, remit to the Master Servicer for deposit into the Master
      Servicer Collection Account, as a reduction of the Servicing Fee for such
      Distribution Date, no later than the close of business on the Remittance Date
      immediately preceding such Distribution Date, an amount equal to such Prepayment
      Interest Shortfall; and in case of such deposit, the Company shall not be
      entitled to any recovery or reimbursement from the Depositor, the Trustee,
      the
      Seller, the Master Servicer, the Securities Administrator, the Trust Fund or
      the
      Certificateholders.

     

    (b)  The
      Master Servicer shall enforce the obligation of each Servicer under the related
      Servicing Agreement to remit any required Compensating Interest to the Master
      Servicer Collection Account on the Remittance Date.

     

    (c)  The
      Master Servicer shall be required to remit to the Securities Administrator
      for
      deposit in the Distribution Account the amount of any Compensating Interest,
      to
      the extent of the Master Servicing Compensation for such Distribution Date,
      in
      the event the Company or the related Servicer is required to make such payment
      but fails to do so.

     

    Section
      6.03  REMIC
      Distributions.

     

    On
      each
      Distribution Date, the Securities Administrator shall be deemed to have
      allocated distributions to the REMIC Regular Interests and the REMIC III Regular
      Interests in accordance with Section 6.07 hereof.

     

    Section
      6.04  Distributions. 

     

    (a)  Subject
      to Section 4.14(c), on each Distribution Date, an amount equal to the Interest
      Funds and Principal Funds for such Distribution Date shall be withdrawn by
      the
      Securities Administrator to the extent of any such funds in the Distribution
      Account and distributed in the following order of priority:

     

    (1)  Interest
      Funds shall be distributed in the following manner and order of
      priority:

     

    (A)  To
      the
      Class A Certificates, the Current Interest and any Interest Carry Forward
      Amount; and

     

    (B)  From
      remaining Interest Funds, sequentially, to the Class M-1, Class M-2, Class
      M-3,
      Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3 and Class
      B-4
      Certificates, in that order, the Current Interest for each such
      Class.

     

    Any
      Excess Spread to the extent necessary to meet a level of overcollateralization
      equal to the Overcollateralization Target Amount will be the Extra Principal
      Distribution Amount and will be included as part of the Principal Distribution
      Amount. Any Remaining Excess Spread together with any Overcollateralization
      Release Amount will be applied as Excess Cashflow and distributed pursuant
      to
      clauses (a)(3)(A) through (H) below.

     

    On
      any
      Distribution Date, any Relief Act Interest Shortfalls and any related Prepayment
      Interest Shortfalls to the extent not covered by Compensating Interest will
      be
      allocated as set forth in the definition of “Current Interest”
herein.

     

    (2)  Principal
      Funds, including any Extra Principal Distribution Amount, shall be distributed
      in the following manner and order of priority:

     

    (A)  For
      each
      Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger
      Event is in effect:

     

    (i)  To
      the
      Class A Certificates, the Principal Distribution Amount for such Distribution
      Date, until the Certificate Principal Balance thereof is reduced to
      zero;

     

    (ii)  To
      the
      Class M-1 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero;

     

    (iii)  To
      the
      Class M-2 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero;

     

    (iv)  To
      the
      Class M-3 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero;

     

    (v)  To
      the
      Class M-4 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero;

     

    (vi)  To
      the
      Class M-5 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero;

     

    (vii)  To
      the
      Class M-6 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero; 

     

    (viii)  To
      the
      Class B-1 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero; 

     

    (ix)  To
      the
      Class B-2 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero; 

     

    (x)  To
      the
      Class B-3 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero; and

     

    (xi)  To
      the
      Class B-4 Certificates, from any remaining Principal Funds for such Distribution
      Date, the remaining Principal Distribution Amount, until the Certificate
      Principal Balance thereof is reduced to zero.

     

    (B)  For
      each
      Distribution Date on or after the Stepdown Date, so long as a Trigger Event
      is
      not in effect:

     

    (i)  To
      the
      Class A Certificates, the Class A Principal Distribution Amount for such
      Distribution Date, until the Certificate Principal Balance thereof is reduced
      to
      zero;

     

    (ii)  To
      the
      Class M-1 Certificates, from any remaining Principal
      Distribution Amount for such Distribution Date, the Class M-1 Principal
      Distribution Amount, until the Certificate Principal Balance thereof is reduced
      to zero;

     

    (iii)  To
      the
      Class M-2 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-2 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (iv)  To
      the
      Class M-3 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-3 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (v)  To
      the
      Class M-4 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-4 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (vi)  To
      the
      Class M-5 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-5 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (vii)  To
      the
      Class M-6 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-6 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (viii)  To
      the
      Class B-1 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-1 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero; 

     

    (ix)  To
      the
      Class B-2 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-2 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (x)  To
      the
      Class B-3 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-3 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero; and

     

    (xi)  To
      the
      Class B-4 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-4 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero.

     

    (3)  Any
      Excess Cashflow shall be distributed in the following manner and order of
      priority:

     

    (A)  to
      the
      Class A Certificates, (a) first,
      any
      remaining Interest Carry Forward Amount due with respect to such Class to the
      extent not fully paid pursuant to clause (a)(1)(A) above and Section 4.14(d)
      and
      (b) second,
      any
      Unpaid Realized Loss Amount for such Class for such Distribution Date in
      accordance with the Applied Realized Loss Amount allocated to such Class to
      the
      extent not fully paid pursuant to Section 4.14(d);

     

    (B)  from
      any
      remaining Excess Cashflow, sequentially, to the Class M-1, Class M-2, Class
      M-3,
      Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3 and Class
      B-4
      Certificates, in that order, an amount equal to the Interest Carry Forward
      Amount for each such Class for such Distribution Date, to the extent not fully
      paid pursuant to Section 4.14(d);

     

    (C)  from
      any
      remaining Excess Cashflow otherwise distributable to the Class C Interest and
      the Class C Certificates, to the Reserve Fund, (i) first, to pay to the Class
      A
      Certificates any Basis Risk Shortfall Carry Forward Amount for such Class for
      such Distribution Date, if any, to the extent not fully paid pursuant to Section
      4.14(d) and to the extent such amount exceeds the amounts then on deposit in
      the
      Reserve Fund, and (ii) second, to maintain a balance in the Reserve Fund equal
      to the Reserve Fund Deposit;

     

    (D)  from
      any
      remaining Excess Cashflow otherwise distributable to the Class C Interest and
      the Class C Certificates, to the Reserve Fund, (i) first, to pay to the Class
      M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class
      B-2, Class B-3 and Class B-4 Certificates, sequentially in that order, any
      Basis
      Risk Shortfall Carry Forward Amount for each such Class for such Distribution
      Date,
      if any,
to
      the
      extent not fully paid pursuant to Section 4.14(d) and to the extent such amount
      exceeds the amounts then on deposit in the Reserve Fund, and (ii) second, to
      maintain a balance in the Reserve Fund equal to the Reserve Fund
      Deposit;

     

    (E)  from
      any
      remaining Excess Cashflow, sequentially to the Class A, Class M-1, Class M-2,
      Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class B-2, Class B-3
      and
      Class B-4 Certificates, in that order, the amount of Relief Act Shortfalls
      and
      any Prepayment Interest Shortfalls allocated to such Classes of Certificates,
      to
      the extent not previously reimbursed;

     

    (F)  from
      any
      remaining Excess Cashflow, to the Swap Administrator for payment to the Swap
      Provider, any Swap Termination Payments due to a Swap Provider Trigger Event
      owed by the Trust Fund (to the extent not paid by the Swap Administrator from
      any upfront payment received pursuant to any replacement interest rate swap
      agreement that may be entered into by the Supplemental Interest Trust
      Trustee);

     

    (G)  from
      any
      remaining Excess Cashflow, to the Class C Interest and Class C Certificates,
      an
      amount equal to the Class C Distribution Amount reduced by amounts distributed
      in clauses (C) and (D) above; and

     

    (H)  from
      any
      remaining Excess Cashflow to each of the Class R-1, Class R-2, Class R-3 and
      Class RX Certificates, based on the related REMIC in which such amounts
      remain.

     

    On
      each
      Distribution Date, all amounts in respect of Prepayment Charges shall be
      distributed to the Holders of the Class C Certificates, provided that such
      distributions shall not be in reduction of the principal balance thereof.

     

    In
      addition, notwithstanding the foregoing clause (a)(2), to the extent a Class
      IO
      Distribution Amount is payable from principal collections, Principal
      Distribution Amounts will be deemed paid to the most subordinate Class of
      Regular Certificates, until the Certificate Principal Balance thereof has been
      reduced to zero, and such amount will be paid pursuant to Section
      4.14(f).

     

    In
      addition, notwithstanding the foregoing, on any Distribution Date after the
      Distribution Date on which the Certificate Principal Balance of a Class of
      Class
      A, Class M or Class B Certificates has been reduced to zero, that Class of
      Certificates will be retired and will no longer be entitled to distributions,
      including distributions in respect of Prepayment Interest Shortfalls or Basis
      Risk Shortfall Carry Forward Amounts.

     

    (b)  In
      addition to the foregoing distributions, with respect to any Subsequent
      Recoveries, the Company or the related Servicer, as applicable, shall deposit
      such funds into the Protected Account pursuant to Section 5.01(b)(iii). If,
      after taking into account such Subsequent Recoveries, the amount of a Realized
      Loss is reduced, the amount of such Subsequent Recoveries will be applied to
      increase the Certificate Principal Balance of the related Class of Certificates
      with the highest payment priority to which Realized Losses have been allocated,
      but not by more than the amount of Realized Losses previously allocated to
      that
      Class of Certificates pursuant to Section 6.05; provided, however, to the extent
      that no reductions to a Certificate Principal Balance of any Class of
      Certificates currently exists as the result of a prior allocation of a Realized
      Loss, such Subsequent Recoveries will be applied as Excess Cashflow. The amount
      of any remaining Subsequent Recoveries will be applied to increase the
      Certificate Principal Balance of the Class of Certificates with the next highest
      payment priority, up to the amount of such Realized Losses previously allocated
      to that Class of Certificates pursuant to Section 6.05, and so on. Holders
      of
      such Certificates will not be entitled to any payment in respect of Current
      Interest on the amount of such increases for any Interest Accrual Period
      preceding the Distribution Date on which such increase occurs. Any such
      increases shall be applied to the Certificate Principal Balance of each
      Certificate of such Class in accordance with its respective Percentage
      Interest.

     

    (c)  Subject
      to Section 11.02 hereof respecting the final distribution, on each Distribution
      Date the Securities Administrator shall make distributions to each
      Certificateholder of record on the preceding Record Date either by wire transfer
      in immediately available funds to the account of such Holder at a bank or other
      entity having appropriate facilities therefor, if such Holder has so notified
      the Securities Administrator at least 5 Business Days prior to the related
      Record Date, or, if not, by check mailed by first class mail to such
      Certificateholder at the address of such Holder appearing in the Certificate
      Register. Notwithstanding the foregoing, but subject to Section 11.02 hereof
      respecting the final distribution, distributions with respect to Certificates
      registered in the name of a Depository shall be made to such Depository in
      immediately available funds.

     

    (d)  On
      or
      before 5:00 p.m. Eastern time on the fourth Business Day immediately preceding
      each Distribution Date (or at a time and date as is mutually agreed upon by
      the
      Securities Administrator and the Master Servicer), the Master Servicer shall
      deliver the Remittance Report to the Securities Administrator.

     

    Section
      6.05  Allocation
      of Realized Losses. 

     

    (a)  All
      Realized Losses on the Mortgage Loans shall be allocated by the Trustee on
      each
      Distribution Date as follows: first, to Excess Spread as part of the payment
      in
      respect of the Extra Principal Distribution Amount for such Distribution Date;
      second, to the Class C Interest and Class C Certificates, until the Certificate
      Principal Balance or Uncertificated Principal Balance thereof, as applicable,
      has been reduced to zero; third, to the Class B-4 Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero; fourth, to
      the
      Class B-3 Certificates, until the Certificate Principal Balance thereof has
      been
      reduced to zero; fifth, to the Class B-2 Certificates, until the Certificate
      Principal Balance thereof has been reduced to zero; sixth, to the Class B-1
      Certificates, until the Certificate Principal Balance thereof has been reduced
      to zero; seventh, to the Class M-6 Certificates, until the Certificate Principal
      Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates,
      until the Certificate Principal Balance thereof has been reduced to zero; ninth,
      to the Class M-4 Certificates, until the Certificate Principal Balance thereof
      has been reduced to zero; tenth, to the Class M-3 Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero; eleventh, to
      the
      Class M-2 Certificates, until the Certificate Principal Balance thereof has
      been
      reduced to zero; twelfth, to the Class M-1 Certificates, until the Certificate
      Principal Balance thereof has been reduced to zero and thirteenth, to the Class
      A Certificates. All Realized Losses to be allocated to the Certificate Principal
      Balances of all Classes on any Distribution Date shall be so allocated after
      the
      actual distributions to be made on such date as provided above. All references
      above to the Certificate Principal Balance of any Class of Certificates shall
      be
      to the Certificate Principal Balance of such Class immediately prior to the
      relevant Distribution Date, before reduction thereof by any Realized Losses,
      in
      each case to be allocated to such Class of Certificates, on such Distribution
      Date.

     

    (b)  Any
      allocation of Realized Losses to a Class of Certificates or the Class C Interest
      on any Distribution Date shall be made by reducing the Certificate Principal
      Balance or Uncertificated Principal Balance thereof by the amount so allocated;
      any allocation of Realized Losses to the Excess Spread shall be made by reducing
      the amount otherwise payable in respect of the Class C Interest and the Class
      C
      Certificates pursuant to clause (G) of Section 6.04(a)(3). 

     

    Once
      Realized Losses have been allocated to a Class of Class A, Class M or Class
      B
      Certificates, such amounts with respect to such Certificates will no longer
      accrue interest nor will such amounts in respect of interest be reinstated
      thereafter. 

     

    As
      used
      herein, an allocation of a Realized Loss on a “pro rata basis” among two or more
      specified Classes of Certificates means an allocation on a pro rata basis,
      among
      the various Classes so specified, to each such Class of Certificates on the
      basis of their then outstanding Certificate Principal Balances prior to giving
      effect to distributions to be made on such Distribution Date. All Realized
      Losses and all other losses allocated to a Class of Certificates hereunder
      will
      be allocated among the Certificates of such Class in proportion to the
      Percentage Interests evidenced thereby.

     

    (c) (i) All
      Realized Losses on the Mortgage Loans shall be allocated on each Distribution
      Date to REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-45-B,
      starting with the lowest numerical denomination until the Uncertificated
      Principal Balance of each such REMIC I Regular Interest has been reduced to
      zero; provided that, for REMIC I Regular Interests with the same numerical
      denomination, such Realized Losses shall be allocated pro
      rata
      between
      such REMIC I Regular Interests. 

     

    (ii) All
      Realized Losses on the Mortgage Loans shall be allocated on each Distribution
      Date to the following REMIC II Regular Interests in the following specified
      percentages: first, to Uncertificated Accrued Interest payable to REMIC II
      Regular Interest AA and REMIC II Regular Interest ZZ up to an aggregate amount
      equal to the REMIC II Interest Loss Allocation Amount (without duplication
      of
      shortfalls allocated pursuant to Section 1.02), 98.00% and 2.00%, respectively;
      second, to the Uncertificated Principal Balances of REMIC II Regular Interest
      AA
      and REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC
      II
      Principal Loss Allocation Amount, 98.00% and 2.00%, respectively; third, to
      the
      Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II
      Regular Interest B-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest B-4 has been reduced to zero; fourth, to the Uncertificated Principal
      Balances of REMIC II Regular Interest AA, REMIC II Regular Interest B-3 and
      REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until
      the
      Uncertificated Principal Balance of REMIC II Regular Interest B-3 has been
      reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC II
      Regular Interest AA, REMIC II Regular Interest B-2 and REMIC II Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest B-2 has been reduced to zero; sixth, to
      the
      Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II
      Regular Interest B-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest B-1 has been reduced to zero; seventh, to the Uncertificated Principal
      Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 and
      REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until
      the
      Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been
      reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC
      II
      Regular Interest AA, REMIC II Regular Interest M-5 and REMIC II Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest M-5 has been reduced to zero; ninth, to
      the
      Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II
      Regular Interest M-4 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest M-4 has been reduced to zero; tenth, to the Uncertificated Principal
      Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-3 and
      REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until
      the
      Uncertificated Principal Balance of REMIC II Regular Interest M-3 has been
      reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC
      II
      Regular Interest AA, REMIC II Regular Interest M-2 and REMIC II Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest M-2 has been reduced to zero; twelfth,
      to
      the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC
      II
      Regular Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest M-1 has been reduced to zero; and thirteenth, to the Uncertificated
      Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest
      A
      and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until
      the Uncertificated Principal Balance of REMIC II Regular Interest A has been
      reduced to zero.

     

    Section
      6.06  Monthly
      Statements to Certificateholders. 

     

    (a)  Not
      later
      than each Distribution Date, the Securities Administrator shall prepare and
      make
      available to each Holder of Certificates, the Trustee, the Swap Provider, the
      Master Servicer and the Depositor a statement setting forth for the
      Certificates:

     

    (i)  the
      applicable record dates, accrual periods, determination dates for calculating
      distributions and general distribution dates;

     

    (ii)  the
      total
      cash flows received and the general sources thereof;

     

    (iii)  the
      amount, if any, of fees or expenses accrued and paid, with an identification
      of
      the payee and the general purpose of such fees including the related amount
      of
      the Servicing Fees paid to or retained by the applicable Servicer for the
      related Due Period;

     

    (iv)  the
      amount of the related distribution to Holders of the Class A, Class M and Class
      B Certificates (by class) allocable to principal, separately identifying (A)
      the
      aggregate amount of any Principal Prepayments included therein, (B) the
      aggregate of all scheduled payments of principal included therein and (C) the
      Extra Principal Distribution Amount (if any);

     

    (v)  the
      amount of such distribution to Holders of the Class A, Class M and Class B
      Certificates allocable to interest and the portion thereof (if any), provided
      by
      the Swap Agreement and the amount of coverage remaining;

     

    (vi)  the
      Interest Carry Forward Amounts and any Basis Risk Shortfall Carry Forward
      Amounts for the Class A, Class M and Class B Certificates (if any);

     

    (vii)  the
      Pass-Through Rate for each Class of Class A, Class M and Class B Certificates
      with respect to the current Accrual Period, and, if applicable, whether such
      Pass-Through Rate was limited by the related Net
      WAC
      Cap Rate;

     

    (viii)  the
      Certificate Principal Balance of the Class A, Class M and Class B Certificates
      before and after giving effect (i) to all distributions allocable to principal
      on such Distribution Date and (ii) the allocation of any Applied Realized Loss
      Amounts for such Distribution Date;

     

    (ix)  the
      number and Stated Principal Balance of all the Mortgage Loans for such
      Distribution Date, together with updated pool composition information including
      the following: weighted average mortgage rate and weighted average remaining
      term;

     

    (x)  the
      aggregate amount of Advances included in the distribution on such Distribution
      Date (including the general purpose of such Advances), the aggregate amount
      of
      unreimbursed Advances as of the end of the Due Period, and the general source
      of
      funds for reimbursements;

     

    (xi)  the
      number and aggregate Stated Principal Balance of the Mortgage Loans (A)
      Delinquent, exclusive of Mortgage Loans in foreclosure, (1) 30 days Delinquent,
      (2) 60 days Delinquent and (3) 90 days or more Delinquent, (B) in foreclosure
      and Delinquent (1) 30 days Delinquent, (2) 60 days Delinquent and (3) 90 days
      or
      more Delinquent, in each case as of the close of business on the last day of
      the
      calendar month preceding such Distribution Date and (C) in bankruptcy and
      delinquent (1) 30 days Delinquent, (2) 60 days Delinquent and (3) 90 days or
      more Delinquent, in each case as of the close of business on the last day of
      the
      calendar month preceding such Distribution Date;

     

    (xii)  the
      amount of, if any, of excess cashflow or excess spread and the application
      of
      such excess cashflow;

     

    (xiii)  with
      respect to any Mortgage Loan that was liquidated during the preceding calendar
      month, the aggregate Stated Principal Balance of, and Realized Loss on, such
      Mortgage Loans as of the end of the Due Period;

     

    (xiv)  whether
      a
      Trigger Event exists;

     

    (xv)  information
      on loss, delinquency or other tests used for determining early amortization,
      liquidation, stepdowns or other performance triggers as more completely
      described in the prospectus supplement and whether the trigger was
      met;

     

    (xvi)  the
      total
      number and principal balance of any real estate owned or REO Properties as
      of
      the end of the related Due Period;

     

    (xvii)  the
      cumulative Realized Losses through the end of the preceding month;

     

    (xviii)  the
      amount of the distribution made on such Distribution Date to the Holders of
      the
      Class C Certificates allocable to Prepayment Charges;

     

    (xix)  the
      Sixty-Day Plus Delinquency Percentage

     

    (xx)  if
      applicable, material modifications, extensions or waivers to Mortgage Loan
      terms, fees, penalties or payments during the preceding calendar month or that
      have become material over time;

     

    (xxi)  material
      breaches of Mortgage Loan representations or warranties or transaction
      covenants; 

     

    (xxii)  the
      amount of the Prepayment Charges remitted by the master servicer and the amount
      on deposit in
      the
      reserve fund; 

     

    (xxiii)  the
      amount of any Net Swap Payment payable to the Trust, any Net Swap Payment
      payable to the Swap Provider, any Swap Termination Payment payable to the Trust
      and any Swap Termination Payment payable to the Swap Provider.

     

    (xxiv)  information
      regarding any new issuance of securities backed by the same asset pool, any
      pool
      asset changes, such as additions or removals of Mortgage Loans from the Trust
      Fund, if applicable; and

     

    (xxv)  any
      material changes in the solicitation, credit-granting, underwriting,
      origination, acquisition or Mortgage Loan selection criteria or procedures,
      as
      applicable, used to originate, acquire or select Mortgage Loans for the Trust
      Fund.

     

    The
      Depositor covenants that if there is a material change in the solicitation,
      credit-granting, underwriting, origination, acquisition or Mortgage Loan
      selection criteria or procedures, as applicable, used to originate, acquire
      or
      select Mortgage Loans for the Trust Fund that it will notify the Securities
      Administrator five calendar days before each Distribution Date, and if no such
      notification occurs, the Securities Administrator has no obligation to report
      with respect to (xxv). The Depositor covenants to the Securities Administrator
      that there will be no new issuance of securities backed by the same asset pool,
      so the Securities Administrator will only be responsible in (xxiv) above for
      reporting any pool asset changes, such as additions or removals of Mortgage
      Loans from the Trust Fund.

     

    The
      foregoing information and reports shall be prepared and determined by the
      Securities Administrator based solely on Mortgage Loan data provided to the
      Securities Administrator by the Master Servicer (in a format agreed to by the
      Securities Administrator and the Master Servicer) no later than four (4)
      Business Days (or at a time and date as is mutually agreed upon by the
      Securities Administrator and the Master Servicer), prior to the Distribution
      Date. In preparing or furnishing the foregoing information, the Securities
      Administrator 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 Securities Administrator by the Master Servicer,
      and the Securities Administrator shall not be obligated to verify, recompute,
      reconcile or recalculate any such information or data. The Securities
      Administrator 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. 

     

    The
      Securities Administrator will make such statement (and, at its option, any
      additional files containing the same information in an alternative format)
      available each month to the parties hereto, the Certificateholders and each
      Rating Agency via the Securities Administrator’s internet website. The
      Securities Administrator’s internet website shall initially be located at
      www.etrustee.net.
      Assistance in using the website can be obtained by calling the Securities
      Administrator at (312) 992-2745. 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 Securities Administrator and indicating such. The
      Securities Administrator shall have the right to change the way such statements
      are distributed in order to make such distribution more convenient and/or more
      accessible to the above parties and the Securities Administrator shall provide
      timely and adequate notification to all above parties regarding any such
      changes.

     

    As
      a
      condition to access the Securities Administrator’s internet website, the
      Securities Administrator may require registration and the acceptance of a
      disclaimer. The Securities Administrator will not be liable for the
      dissemination of information in accordance with this Agreement.

     

    (b)  The
      Securities Administrator’s responsibility for making the above information
      available to the Certificateholders is limited to the availability, timeliness
      and accuracy of the information derived from the Master Servicer, the Company
      and the related Servicers. The Securities Administrator will make available
      a
      copy of each statement provided pursuant to this Section 6.06 to each Rating
      Agency on its website at www.etrustee.net.

     

    (c)  Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall cause to be furnished upon written request to each Person
      who at any time during the calendar year was a Certificateholder, a statement
      containing the information set forth in clauses (a)(i) and (a)(ii) of this
      Section 6.06 aggregated for such calendar year or applicable portion thereof
      during which such Person was a Certificateholder. Such obligation of the
      Securities Administrator shall be deemed to have been satisfied to the extent
      that substantially comparable information shall be provided by the Securities
      Administrator pursuant to any requirements of the Code as from time to time
      in
      effect.

     

    (d)  The
      Securities Administrator shall furnish quarterly to the Holders of the Residual
      Certificates each applicable Form 1066Q and shall respond promptly to written
      requests made not more frequently than quarterly by any Holder of a Residual
      Certificate with respect to the following matters:

     

    (i) The
      original projected principal and interest cash flows on the Closing Date on
      each
      class of Regular Interests and Residual Interests created hereunder and on
      the
      related Mortgage Loans, based on the Prepayment Assumption;

     

    (ii) The
      projected remaining principal and interest cash flows as of the end of any
      calendar quarter with respect to each class of Regular Interests and Residual
      Interests created hereunder and the related Mortgage Loans, based on the
      Prepayment Assumption;

     

    (iii) The
      applicable Prepayment Assumption and any interest rate assumptions used in
      determining the projected principal and interest cash flows described
      above;

     

    (iv) The
      original issue discount (or, in the case of the Mortgage Loans, market discount)
      or premium accrued or amortized through the end of such calendar quarter with
      respect to each class of Regular Interests or Residual Interests created
      hereunder and to the related Mortgage Loans, together with each constant yield
      to maturity used in computing the same;

     

    (v) The
      treatment of losses realized with respect to the related Mortgage Loans or
      the
      Regular Interests created hereunder, including the timing and amount of any
      cancellation of indebtedness income of a REMIC with respect to such Regular
      Interests or bad debt deductions claimed with respect to the related Mortgage
      Loans;

     

    (vi) The
      amount and timing of any non-interest expenses of a REMIC; and

     

    (vii) Any
      taxes
      (including penalties and interest) imposed on the REMIC, including, without
      limitation, taxes on “prohibited transactions,” “contributions” or “net income
      from foreclosure property” or state or local income or franchise
      taxes.

     

    The
      information pursuant to clauses (i), (ii), (iii) and (iv) above shall be
      provided by the Depositor pursuant to Section 10.12.

     

    Section
      6.07  REMIC
      Designations and REMIC Distributions. 

     

    (a)  The
      Securities Administrator on behalf of the Trustee shall elect that each of
      REMIC
      I, REMIC II, REMIC III, REMIC IV and REMIC V shall be treated as a REMIC under
      Section 860D of the Code. Any inconsistencies or ambiguities in this Agreement
      or in the administration of this Agreement shall be resolved in a manner that
      preserves the validity of such REMIC elections. The assets of REMIC I shall
      include the Mortgage Loans and all interest owing in respect of and principal
      due thereon, the Distribution Account, the Master Servicer Collection Account,
      the Protected Accounts maintained by the Company and the related Servicer,
      any
      REO Property, any proceeds of the foregoing and any other assets related to
      the
      Mortgage Loans subject to this Agreement (other than the Reserve Fund, any
      Prepayment Charge Waiver Amounts and, for the avoidance of doubt, the
      Supplemental Interest Trust, the Swap Agreement, the Swap Account and any rights
      or obligations in respect of the Swap Administration Agreement). The REMIC
      I
      Regular Interests shall constitute the assets of REMIC II. The REMIC II Regular
      Interests shall constitute the assets of REMIC III. The Class C Interest shall
      constitute the assets of REMIC IV. The Class IO Interest shall constitute the
      assets of REMIC V.

     

    (b)  (1)On
      each
      Distribution Date, the following amounts, in the following order of priority,
      shall be distributed by REMIC I to REMIC II on account of the REMIC I Regular
      Interests or withdrawn from the Distribution Account and distributed to the
      Holders of the Class R-1 Certificates, as the case may be:

     

    (i)  from
      Interest Funds and Principal Funds, in each case determined without regard
      to
      the related clause (2)(ii) of the definitions thereof, to holders of each of
      the
      REMIC I Regular Interests I-1-A through I-45-B, pro
      rata,
      in an
      amount equal to (A) the Uncertificated Accrued Interest for such REMIC I Regular
      Interests for such Distribution Date, plus (B) any amounts payable in respect
      thereof remaining unpaid from previous Distribution Dates;

     

    (ii)  to
      the
      extent of Interest Funds and Principal Funds, in each case determined without
      regard to the related clause (2)(ii) of the definitions thereof, remaining
      after
      the distribution made pursuant to clause (i) above, to REMIC I Regular Interests
      I-1-A through I-45-B, starting with the lowest numerical denomination, until
      the
      Uncertificated Principal Balances of each such REMIC I Regular Interest is
      reduced to zero; provided that, for REMIC I Regular Interests with the same
      numerical denomination, such payments of principal shall be allocated
pro
      rata
      between
      such REMIC I Regular Interests; and

     

    (iii)  any
      remaining amount to the Holders of the Class R-1 Certificates.

     

    (2) On
      each
      Distribution Date, amounts representing Prepayment Charges on the Mortgage
      loans
      shall be deemed distributed to the REMIC I Regular Interests, pro
      rata, provided
      that such amounts shall not reduce the Uncertificated Principal Balances of
      the
      REMIC I Regular Interests. 

     

    (c) (1) On
      each
      Distribution Date, the following amounts, in the following order of priority,
      shall be distributed by REMIC II to REMIC III on account of the REMIC II Regular
      Interests or withdrawn from the Distribution Account and distributed to the
      Holders of the Class R-2 Certificates, as the case may be:

     

    (i)  from
      Interest Funds and Principal Funds, in each case determined without regard
      to
      the related clause (2)(ii) of the definitions thereof, to the holders of REMIC
      II Regular Interest IO, in an amount equal to (A) the Uncertificated Accrued
      Interest for such REMIC II Regular Interest for such Distribution Date, plus
      (B)
      any amounts in respect thereof remaining unpaid from previous Distribution
      Dates; 

     

    (ii)  to
      the
      extent of the Interest Funds and Principal Funds, in each case determined
      without regard to the related clause (2)(ii) of the definitions thereof,
      remaining after the distribution pursuant to clause (i), to the holders of
      each
      REMIC II Regular Interest (other than REMIC II Regular Interest IO),
pro
      rata,
      in an
      amount equal to (A) the Uncertificated Accrued Interest for such REMIC II
      Regular Interest for such Distribution Date, plus (B) any amounts in respect
      thereof remaining unpaid from previous Distribution Dates. Amounts payable
      as
      Uncertificated Accrued Interest in respect of REMIC II Regular Interest ZZ
      shall
      be reduced when the REMIC II Overcollateralization Amount is less than the
      REMIC
      II Required Overcollateralization Amount, by the lesser of (x) the amount of
      such difference and (y) the Maximum Uncertificated Accrued Interest Deferral
      Amount, and such amount will be payable to the holders of each REMIC II Regular
      Interest for which a Class A, Class M or Class B Certificate is the
      Corresponding Certificate in the same proportion as the Extra Principal
      Distribution Amount is allocated to the Corresponding Certificates for each
      such
      REMIC II Regular Interest, and the Uncertificated Principal Balance of REMIC
      II
      Regular Interest ZZ shall be increased by such amount;

     

    (iii)  to
      the
      holders of REMIC II Regular Interests (other than REMIC II Regular Interest
      IO)
      in an amount equal to the remainder of the Interest Funds and Principal Funds,
      in each case determined without regard to the related clause (2)(ii) of the
      definitions thereof, for such Distribution Date after the distributions made
      pursuant to clauses (i) and (ii) above, allocated as follows:

     

    (A)  98%
      of
      such remainder to the holders of REMIC II Regular Interest AA, until the
      Uncertificated Principal Balance of such REMIC II Regular Interest is reduced
      to
      zero;

     

    (B)  2%
      of
      such remainder, first, to the holders of each REMIC II Regular Interest for
      which a Class A, Class M or Class B Certificate is the Corresponding
      Certificate, in an aggregate amount equal to 1% of and in the same proportion
      as
      principal payments are allocated to the Corresponding Certificates for each
      such
      REMIC II Regular Interest, until the Uncertificated Principal Balances of such
      REMIC II Regular Interests are reduced to zero; and second, to the holders
      of
      REMIC II Regular Interest ZZ, until the Uncertificated Principal Balance of
      such
      REMIC II Regular Interest is reduced to zero; and

     

    (C) any
      remaining amount to the Holders of the Class R-2 Certificates.

     

    (2) On
      each
      Distribution Date, 100% of the Prepayment Charges deemed distributed on the
      REMIC I Regular Interests shall be distributed, pro
      rata, to
      the
      holders of the REMIC II Regular Interests (other than REMIC II Regular Interest
      IO), provided that such amounts shall not reduce the Uncertificated Principal
      Balances of the REMIC II Regular Interests.

     

    (d) On
      each
      Distribution Date, interest shall be deemed payable from REMIC III to the
      holders of each REMIC III Regular Interest the ownership of which is represented
      by the Class A, Class M and Class B Certificates at a pass-through rate equal
      to
      the lesser of (i) the Pass-Through Rate for the Corresponding Certificate
      determined without regard to the Net WAC Cap Rate and (ii) the Net WAC Cap
      Rate
      for the REMIC III Regular Interest the ownership of which is represented by
      the
      Corresponding Certificate for such Distribution Date, in each case on a
      principal balance equal to the Certificate Principal Balance of the
      Corresponding Certificate for such Distribution Date. For the avoidance of
      doubt, principal shall be payable to, and shortfalls, losses and prepayments
      shall be allocable to, the REMIC III Regular Interests the ownership of which
      is
      represented by the Class A, Class M and Class B Certificates as such amounts
      are
      payable and allocable to the Corresponding Certificates. 

     

    (e) On
      each
      Distribution Date, an amount equal to the aggregate amount distributed pursuant
      to Sections 6.04(a)(3)(C), (D) and (G) on such date shall be deemed distributed
      from REMIC III to REMIC IV in respect of the Class C Distribution Amount
      distributable to the Class C Interest, and 100% of the Prepayment Charges deemed
      distributed on the REMIC II Regular Interests shall be deemed distributed from
      REMIC III to REMIC IV in respect of the Class C Interest.

     

    (f) On
      each
      Distribution Date, 100% of the amounts deemed distributed on REMIC II Regular
      Interest IO on such date shall be deemed distributed by REMIC III to REMIC
      V in
      respect of the Class IO Interest. Such amounts shall be deemed distributed
      by
      REMIC V in respect of REMIC V Regular Interest IO for deposit into the
      Supplemental Interest Trust.

     

    

    ARTICLE
      VII

     

    THE
      CERTIFICATES

     

    Section
      7.01  The
      Certificates. 

     

    The
      Certificates shall be substantially in the forms attached hereto as Exhibits
      A-1
      through A-5. The Certificates shall be issuable in registered form, in the
      minimum dollar denominations, integral dollar multiples in excess thereof
      (except that one Certificate of each Class may be issued in a different amount
      which must be in excess of the applicable minimum dollar denomination) and
      aggregate dollar denominations as set forth in the following table:

     

    
      	
              Class

            	
              Minimum

              Denomination

            	
              Integral

              Multiple
                in

              Excess
                of

              Minimum

            	
              Original

              Certificate

              Principal
                Balance or Notional Amount

            
	
              A

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	$	
               351,075,000.00

            
	
              M-1

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	$	
               20,108,000.00

            
	
              M-2

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	$	
               20,108,000.00

            
	
              M-3

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	$ 	
               7,165,000.00

            
	
              M-4

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	$ 	
               6,471,000.00

            
	
              M-5

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	$ 	
               6,240,000.00

            
	
              M-6

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	$ 	
               6,009,000.00

            
	
              B-1

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	$ 	
               5,316,000.00

            
	
              B-2

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	$ 	
               4,622,000.00

            
	
              B-3

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	$ 	
               5,778,000.00

            
	
              B-4

            	
              $

            	
              100,000

            	
              $

            	
              1.00

            	$ 	
               6,240,000.00

            
	
              C

            	
              $

            	
              10%

            	
              $

            	
              1%

            	$ 	
               
                462,245,008.63 (1)

            
	
              R-1

            	
              $

            	
              100%

            	
              $

            	
              N/A

            	 	
              N/A

            
	
              R-2

            	
              $

            	
              100%

            	
              $

            	
              N/A

            	 	
              N/A

            
	
              R-3

            	
              $

            	
              100%

            	
              $

            	
              N/A

            	 	
              N/A

            
	
              RX

            	
              $

            	
              100%

            	
              $

            	
              N/A

            	 	
              N/A

            

    

    (1) This
      is a
      Notional Amount.

     

    

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

     

    The
      Depositor shall provide, or cause to be provided, to the Securities
      Administrator on a continuous basis, an adequate inventory of Certificates
      to
      facilitate transfers.

     

    Section
      7.02  Certificate
      Register; Registration of Transfer and Exchange of Certificates.

     

    (a)  The
      Securities Administrator shall maintain, or cause to be maintained in accordance
      with the provisions of Section 7.09 hereof, a Certificate Register for the
      Trust
      Fund in which, subject to the provisions of subsections (b) and (c) below and
      to
      such reasonable regulations as it may prescribe, the Securities Administrator
      shall provide for the registration of Certificates and of Transfers and
      exchanges of Certificates as herein provided. Upon surrender for registration
      of
      Transfer of any Certificate, the Securities Administrator shall authenticate
      and
      deliver, in the name of the designated transferee or transferees, one or more
      new Certificates of the same Class and of like aggregate Percentage
      Interest.

     

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

     

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

     

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

     

    (b)  Subject
      to Section 7.07 and, in the case of any Global Certificate or Private
      Certificate upon the satisfaction of the conditions set forth below, upon
      surrender for registration of transfer of any Certificate at any office or
      agency of the Securities Administrator maintained for such purpose, the
      Securities Administrator shall sign, countersign and shall deliver, in the
      name
      of the designated transferee or transferees, a new Certificate of a like Class
      and aggregate Percentage Interest, but bearing a different number.

     

    (c)  Subject
      to Section 7.02(g), so long as a Global Certificate of such Class is outstanding
      and is held by or on behalf of the Depository, transfers of beneficial interests
      in such Global Certificate, or transfers by Holders of Individual Certificates
      of such Class to transferees that take delivery in the form of beneficial
      interests in the Global Certificate, may be made only in accordance with this
      Section 7.02(c) and in accordance with the rules of the Depository:

     

    (i)  In
      the
      case of a beneficial interest in the Global Certificate being transferred to
      an
      Institutional Accredited Investor, such transferee shall be required to take
      delivery in the form of an Individual Certificate or Certificates and the
      Securities Administrator shall register such transfer only upon compliance
      with
      the provisions of Section 7.02(h).

     

    (ii)  In
      the
      case of a beneficial interest in a Class of Global Certificates being
      transferred to a transferee that takes delivery in the form of an Individual
      Certificate or Certificates of such Class, except as set forth in clause (i)
      above, the Securities Administrator shall register such transfer only upon
      compliance with the provisions of Section 7.02(h).

     

    (iii)  In
      the
      case of an Individual Certificate of a Class being transferred to a transferee
      that takes delivery in the form of a beneficial interest in a Global Certificate
      of such Class, the Securities Administrator shall register such transfer if
      the
      transferee has provided the Securities Administrator with a Rule 144A and
      Related Matters Certificate or comparable evidence as to its QIB
      status.

     

    (iv)  No
      restrictions shall apply with respect to the transfer or registration of
      transfer of a beneficial interest in the Global Certificate of a Class to a
      transferee that takes delivery in the form of a beneficial interest in the
      Global Certificate of such Class; provided that each such transferee shall
      be
      deemed to have made such representations and warranties contained in the Rule
      144A and Related Matters Certificate as are sufficient to establish that it
      is a
      QIB.

     

    (d)  Subject
      to Section 7.02(g), an exchange of a beneficial interest in a Global Certificate
      of a Class for an Individual Certificate or Certificates of such Class, an
      exchange of an Individual Certificate or Certificates of a Class for a
      beneficial interest in the Global Certificate of such Class and an exchange
      of
      an Individual Certificate or Certificates of a Class for another Individual
      Certificate or Certificates of such Class (in each case, whether or not such
      exchange is made in anticipation of subsequent transfer, and, in the case of
      the
      Global Certificate of such Class, so long as such Certificate is outstanding
      and
      is held by or on behalf of the Depository) may be made only in accordance with
      this Section 7.02(d) and in accordance with the rules of the
      Depository:

     

    (i)  A
      Holder
      of a beneficial interest in a Global Certificate of a Class may at any time
      exchange such beneficial interest for an Individual Certificate or Certificates
      of such Class.

     

    (ii)  A
      Holder
      of an Individual Certificate or Certificates of a Class may exchange such
      Certificate or Certificates for a beneficial interest in the Global Certificate
      of such Class if such holder furnishes to the Securities Administrator a Rule
      144A and Related Matters Certificate or comparable evidence as to its QIB
      status.

     

    (iii)  A
      Holder
      of an Individual Certificate of a Class may exchange such Certificate for an
      equal aggregate principal amount of Individual Certificates of such Class in
      different authorized denominations without any certification.

     

    (e)  (i)Upon
      acceptance for exchange or transfer of an Individual Certificate of a Class
      for
      a beneficial interest in a Global Certificate of such Class as provided herein,
      the Securities Administrator shall cancel such Individual Certificate and shall
      (or shall request the Depository to) endorse on the schedule affixed to the
      applicable Global Certificate (or on a continuation of such schedule affixed
      to
      the Global Certificate and made a part thereof) or otherwise make in its books
      and records an appropriate notation evidencing the date of such exchange or
      transfer and an increase in the certificate balance of the Global Certificate
      equal to the certificate balance of such Individual Certificate exchanged or
      transferred therefor.

     

    (ii) Upon
      acceptance for exchange or transfer of a beneficial interest in a Global
      Certificate of a Class for an Individual Certificate of such Class as provided
      herein, the Securities Administrator shall (or shall request the Depository
      to)
      endorse on the schedule affixed to such Global Certificate (or on a continuation
      of such schedule affixed to such Global Certificate and made a part thereof)
      or
      otherwise make in its books and records an appropriate notation evidencing
      the
      date of such exchange or transfer and a decrease in the certificate balance
      of
      such Global Certificate equal to the certificate balance of such Individual
      Certificate issued in exchange therefor or upon transfer thereof.

     

    (f)  Any
      Individual Certificate issued in exchange for or upon transfer of another
      Individual Certificate or of a beneficial interest in a Global Certificate
      shall
      bear the applicable legends set forth in Exhibit A-2.

     

    (g)  Subject
      to the restrictions on transfer and exchange set forth in this Section 7.02,
      the
      Holder of any Individual Certificate may transfer or exchange the same in whole
      or in part (in an initial certificate balance equal to the minimum authorized
      denomination set forth in Section 7.01 above or any integral multiple of $1.00
      in excess thereof) by surrendering such Certificate at the Corporate Trust
      Office, or at the office of any transfer agent, together with an executed
      instrument of assignment and transfer satisfactory in form and substance to
      the
      Securities Administrator in the case of transfer and a written request for
      exchange in the case of exchange. The Holder of a beneficial interest in a
      Global Certificate may, subject to the rules and procedures of the Depository,
      cause the Depository (or its nominee) to notify the Securities Administrator
      in
      writing of a request for transfer or exchange of such beneficial interest for
      an
      Individual Certificate or Certificates. Following a proper request for transfer
      or exchange, the Securities Administrator shall, within five Business Days
      of
      such request made at the Corporate Trust Office, sign, countersign and deliver
      at the Corporate Trust Office, to the transferee (in the case of transfer)
      or
      Holder (in the case of exchange) or send by first class mail at the risk of
      the
      transferee (in the case of transfer) or Holder (in the case of exchange) to
      such
      address as the transferee or Holder, as applicable, may request, an Individual
      Certificate or Certificates, as the case may require, for a like aggregate
      Percentage Interest and in such authorized denomination or denominations as
      may
      be requested. The presentation for transfer or exchange of any Individual
      Certificate shall not be valid unless made at the Corporate Trust Office by
      the
      registered Holder in person, or by a duly authorized
      attorney-in-fact.

     

    (h)  No
      Transfer of a Private Certificate shall be made unless such Transfer is made
      pursuant to an effective registration statement under the Securities Act and
      any
      applicable state securities laws or is exempt from the registration requirements
      under the Securities Act and such state securities laws. In the event that
      a
      Transfer is to be made in reliance upon an exemption from the Securities Act
      and
      such laws, in order to assure compliance with the Securities Act and such laws,
      the Certificateholder desiring to effect such Transfer and such
      Certificateholder’s prospective transferee shall each certify to the Trustee and
      the Securities Administrator in writing the facts (or shall be deemed to certify
      in the case of a Book-Entry Certificate) surrounding the Transfer by (x)(i)
      the
      delivery to the Securities Administrator by the Certificateholder desiring
      to
      effect such transfer of a certificate substantially in the form set forth in
      Exhibit D (the “Transferor Certificate”) and (ii) the delivery by the
      Certificateholder’s prospective transferee of (A) a letter in substantially the
      form of Exhibit E (the “Investment Letter”) if the prospective transferee is an
      Institutional Accredited Investor or (B) a letter in substantially the form
      of
      Exhibit F (the “Rule 144A and Related Matters Certificate”) if the prospective
      transferee is a QIB or (y) there shall be delivered to the Trustee and the
      Securities Administrator an Opinion of Counsel addressed to the Trustee and
      the
      Securities Administrator that such Transfer may be made pursuant to an exemption
      from the Securities Act, which Opinion of Counsel shall not be an expense of
      the
      Depositor, the Seller, the Master Servicer, the Securities
      Administrator
      or the
      Trustee. Notwithstanding the provisions of the immediately preceding sentence,
      no restrictions shall apply with respect to the transfer or registration of
      transfer of a beneficial interest in any Certificate that is a Global
      Certificate of a Class to a transferee that takes delivery in the form of a
      beneficial interest in the Global Certificate of such Class provided that each
      such transferee shall be deemed to have made such representations and warranties
      contained in the Rule 144A and Related Matters Certificate as are sufficient
      to
      establish that it is a QIB. The Securities Administrator shall provide to any
      Holder of a Private Certificate and any prospective transferee designated by
      any
      such Holder, information regarding the Certificates and the Mortgage Loans
      and
      such other information as shall be necessary to satisfy the condition to
      eligibility set forth in Rule 144A(d)(4) for Transfer of any such Certificate
      without registration thereof under the Securities Act pursuant to the
      registration exemption provided by Rule 144A. The Trustee, the Securities
      Administrator and the Master Servicer shall cooperate with the Depositor in
      providing the Rule 144A information referenced in the preceding sentence,
      including providing to the Depositor such information regarding the
      Certificates, the Mortgage Loans and other matters regarding the Trust Fund
      as
      the Depositor shall reasonably request to meet its obligation under the
      preceding sentence. Each Holder of a Private Certificate desiring to effect
      such
      Transfer shall, and does hereby agree to, indemnify the Trustee, the Depositor,
      the Seller, the Securities Administrator and the Master Servicer against any
      liability that may result if the Transfer is not so exempt or is not made in
      accordance with such federal and state laws.

     

    No
      transfer of any Class C Certificate shall be made unless the transferee of
      such
      Class C Certificate provides to the Securities Administrator the appropriate
      tax
      certification form (i.e., IRS Form W-9 or IRS Form W-8BEN, W-8IMY, or W-8ECI,
      as
      applicable (or any successor form thereto)), as a condition to such transfer
      and
      agrees to update such forms (i) upon expiration of any such form, (ii) as
      required under then applicable U.S. Treasury regulations and (iii) promptly
      upon
      learning that any IRS Form W-9 or IRS Form W-8BEN, W-8IMY, or W-8ECI, as
      applicable (or any successor form thereto), has become obsolete or incorrect.
      Upon receipt of any such tax certification form from a transferee of any Class
      C
      Certificate, the Securities Administrator shall provide a copy of such tax
      certification form to the Supplemental Interest Trust Trustee. The Supplemental
      Interest Trust Trustee shall provide a copy of any such tax certification form
      to the Swap Provider. 

     

    The
      Securities Administrator shall be entitled to rely conclusively on any
      certificate required by this Section 7.02 to be executed in connection with
      the
      transfer of any Certificate, and shall be entitled to presume conclusively
      the
      continuing accuracy thereof from time to time, in each case without further
      inquiry or investigation.

     

    The
      Securities Administrator shall not be responsible for ascertaining whether
      any
      transfer complies with, or for otherwise monitoring or determining compliance
      with, the requirements or terms of the 1933 Act, applicable state securities
      laws, ERISA or the Code; except that if a Certificate is required by the terms
      of this Section 7.02 to be provided to the Securities Administrator by a
      prospective transferor or transferee, the Securities Administrator shall examine
      the same to determine whether it conforms substantially on its face to the
      applicable requirements of this Section 7.02 and that if an opinion of counsel
      is provided, the Securities Administrator shall examine the same to determine
      whether it meets the requirements hereof.

     

    No
      Transfer of an ERISA Restricted Certificate or Class B-4 Certificate shall
      be
      made at any time unless either (i) the transferee of such Certificate provides
      a
      representation, or is deemed to represent in the case of a Global Certificate,
      to the Securities Administrator acceptable to and in form and substance
      satisfactory to the Securities Administrator to the effect that such transferee
      is not a Plan, or a Person acting on behalf of a Plan or using the assets of
      a
      Plan, or (ii) in the case of any such Certificate presented for registration
      in
      the name of a Plan, or a trustee of a Plan or any other person acting on behalf
      of a Plan, the Securities Administrator shall have received an Opinion of
      Counsel for the benefit of the Trustee, the Securities Administrator and the
      Master Servicer and on which they may rely, satisfactory to the Securities
      Administrator, to the effect that the purchase and holding of such Certificate
      are permissible under applicable law, will not result in any prohibited
      transactions under ERISA or Section 4975 of the Code and will not subject the
      Trustee, the Securities Administrator, the Master Servicer or the Depositor
      to
      any obligation in addition to those expressly undertaken in this Agreement,
      which Opinion of Counsel shall not be an expense of the Trustee, the Securities
      Administrator, the Master Servicer or the Depositor, or (iii) in the case of
      a
      Class B-4 Certificate, the transferee provides a representation, or is deemed
      to
      represent in the case of the Global Certificate, or an opinion of counsel to
      the
      effect that the proposed transfer or holding of such Class B-4 Certificate
      and
      the servicing, management and operation of the Trust and its assets: (I) will
      not result in any prohibited transaction which is not covered under a prohibited
      transaction exemption (“PTE”), including but not limited to PTE 84-14, PTE
      91-38, PTE 90-1, PTE 95-60 or PTE 96-23 and (II) will not give rise to any
      obligation on the part of the Depositor, the Master Servicer, the Securities
      Administrator or the Trustee in addition to those expressly undertaken in this
      Agreement. Notwithstanding anything else to the contrary herein, any purported
      transfer of an ERISA Restricted Certificate to or on behalf of a Plan without
      the delivery of the Opinion of Counsel as described above shall be void and
      of
      no effect; provided that the restriction set forth in this sentence shall not
      be
      applicable if there has been delivered to the Trustee and the Securities
      Administrator an Opinion of Counsel meeting the requirements of clause (ii)
      of
      the first sentence of this paragraph. Neither the Trustee, the Securities
      Administrator nor the Master Servicer shall be required to monitor, determine
      or
      inquire as to compliance with the transfer restrictions with respect to any
      ERISA Restricted Certificate that is a Book-Entry Certificate, and neither
      the
      Trustee nor the Master Servicer shall have any liability for transfers of any
      such Book-Entry Certificates made through the book-entry facilities of any
      Depository or between or among participants of the Depository or Certificate
      Owners made in violation of the transfer restrictions set forth herein. Neither
      the Trustee, the Securities Administrator nor the Master Servicer shall be
      under
      any liability to any Person for any registration of transfer of any ERISA
      Restricted Certificate that is in fact not permitted by this Section 7.02(h)
      or
      for making any payments due on such Certificate to the Holder thereof or taking
      any other action with respect to such Holder under the provisions of this
      Agreement.

    
       

      Prior
        to
        the termination of the related Supplemental Interest Trust, no Transfer of
        a
        related Class A Certificate or Class M or Class B Certificate (other than a
        Class B-4 Certificate) shall be made unless either (i) the Securities
        Administrator shall have received a representation from the transferee
        of such Certificate acceptable to and in form and substance satisfactory
        to the
        Securities Administrator, or is deemed to represent in the case of a Global
        Certificate, that such transferee is not an employee benefit plan subject
        to
        Section 406 of ERISA or a plan subject to Section 4975 of the Code (either
        a
        "Plan"), or a Person acting on behalf of a Plan or using the assets a Plan,
        or
        (ii) the transferee provides a representation, or is deemed to represent
        in the
        case of the Global Certificate that (A) such plan is an accredited investor
        within the meaning of the Exemption and (B) the proposed transfer or holding
        of
        such Certificate are eligible for exemptive relief under Prohibited Transaction
        Class Exemption ("PTCE") 84-14, PTCE 91-38, PTCE 90-1, PTCE 95-60 or PTCE
        96-23.

       

      Subsequent
        to the termination of the Supplemental Interest Trust, each beneficial owner
        of
        a related Class M or Class B Certificate (other than a Class B-4
        Certificate) or any interest therein shall be deemed to have represented,
        by
        virtue of its acquisition or holding of that certificate or interest therein,
        that either (a)(i) it is not a Plan or investing with "Plan Assets", (ii)
        it has
        acquired and is holding such certificate in reliance on the Exemption, and
        that
        it understands that there are certain conditions to the availability of the
        Exemption, including that the certificate must be rated, at the time of
        purchase, not lower than "BBB-" (or its equivalent) by S&P, Fitch or
        Moody’s, and the certificate is so rated or (iii) (1) it is an insurance
        company, (2) the source of funds used to acquire or hold the certificate
        or
        interest therein is an "insurance company general account," as such term
        is
        defined in PTCE 95-60, and (3) the conditions in Sections I and III of PTCE
        95-60 have been satisfied.

       

    

    Neither
      the Trustee, the Securities Administrator nor the Master Servicer will be
      required to monitor, determine or inquire as to compliance with the transfer
      restrictions with respect to the Global Certificates. Any attempted or purported
      transfer of any Certificate in violation of the provisions of this Section
      7.02
      shall be void ab initio and such Certificate shall be considered to have been
      held continuously by the prior permitted Certificateholder. Any transferor
      of
      any Certificate in violation of such provisions, shall indemnify and hold
      harmless the Trustee, the Securities Administrator and the Master Servicer
      from
      and against any and all liabilities, claims, costs or expenses incurred by
      the
      Trustee, the Securities Administrator or the Master Servicer as a result of
      such
      attempted or purported transfer. Neither the Securities Administrator shall
      have
      any liability for transfer of any such Global Certificates in or through
      book-entry facilities of any Depository or between or among Depository
      Participants or Certificate Owners made in violation of the transfer
      restrictions set forth herein. The Securities Administrator shall be entitled,
      but not obligated, to recover from any Holder of any ERISA Restricted
      Certificate that was in fact a Plan or a Person acting on behalf of a Plan
      at
      the time it became a Holder or, at such subsequent time as it became a Plan
      or
      Person acting on behalf of a Plan, all payments made on such ERISA Restricted
      Certificate at and after either such time. Any such payments so recovered by
      the
      Securities Administrator shall be paid and delivered by the Securities
      Administrator to the last preceding Holder of such Certificate that is not
      a
      Plan or Person acting on behalf of a Plan.

     

    (i)  Each
      Person who has or who acquires any Ownership Interest in a Residual Certificate
      shall be deemed by the acceptance or acquisition of such Ownership Interest
      to
      have agreed to be bound by the following provisions, and the rights of each
      Person acquiring any Ownership Interest in a Residual Certificate are expressly
      subject to the following provisions:

     

    (i)  Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall be a Permitted Transferee and shall promptly notify the Securities
      Administrator
      of any
      change or impending change in its status as a Permitted Transferee.

     

    (ii)  No
      Ownership Interest in a Residual Certificate may be registered on the Closing
      Date or thereafter transferred, and the Securities
      Administrator
      shall
      not register the Transfer of any Residual Certificate unless, in addition to
      the
      certificates required to be delivered to the Securities
      Administrator
      under
      subsection (b) above, the Securities
      Administrator
      shall
      have been furnished with an affidavit (a “Transfer Affidavit”) of the initial
      owner or the proposed transferee in the form attached hereto as Exhibit
      C.

     

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

     

    (iv)  Any
      attempted or purported Transfer of any Ownership Interest in a Residual
      Certificate in violation of the provisions of this Section 7.02(i) shall be
      absolutely null and void and shall vest no rights in the purported Transferee.
      If any purported transferee shall become a Holder of a Residual Certificate
      in
      violation of the provisions of this Section 7.02(i), then the last preceding
      Permitted Transferee shall be restored to all rights as Holder thereof
      retroactive to the date of registration of Transfer of such Residual
      Certificate. Neither the Securities Administrator nor the Trustee shall be
      under
      liability to any Person for any registration of Transfer of a Residual
      Certificate that is in fact not permitted by Section 7.02(h) and this Section
      7.02(i) or for making any payments due on such Certificate to the Holder thereof
      or taking any other action with respect to such Holder under the provisions
      of
      this Agreement so long as the Transfer was registered after receipt of the
      related Transfer Affidavit. The Securities Administrator shall be entitled
      but
      not obligated to recover from any Holder of a Residual Certificate that was
      in
      fact not a Permitted Transferee at the time it became a Holder or, at such
      subsequent time as it became other than a Permitted Transferee, all payments
      made on such Residual Certificate at and after either such time. Any such
      payments so recovered by the Securities
      Administrator
      shall be
      paid and delivered by the Securities Administrator to the last preceding
      Permitted Transferee of such Certificate.

     

    (v)  The
      Master Servicer shall make available within 60 days of written request from
      the
Securities
      Administrator,
      all
      information necessary to compute any tax imposed under Section 860E(e) of the
      Code as a result of a Transfer of an Ownership Interest in a Residual
      Certificate to any Holder who is not a Permitted Transferee.

     

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

     

    (j)  The
      preparation and delivery of all certificates and opinions referred to above
      in
      this Section 7.02 shall not be an expense of the Trust Fund, the Trustee, the
      Depositor, the Seller, the Securities
      Administrator
      or the
      Master Servicer.

     

    Section
      7.03  Mutilated,
      Destroyed, Lost or Stolen Certificates. 

     

    If
      (a)
      any mutilated Certificate is surrendered to the Securities Administrator, or
      the
      Securities Administrator receives evidence to its satisfaction of the
      destruction, loss or theft of any Certificate and of the ownership thereof
      and
      (b) there is delivered to the Securities Administrator such security or
      indemnity as may be required by them to save the Securities Administrator and
      the Trustee harmless, then, in the absence of notice to the Securities
      Administrator that such Certificate has been acquired by a bona fide purchaser,
      the Securities Administrator shall execute, authenticate and deliver, in
      exchange for or in lieu of any such mutilated, destroyed, lost or stolen
      Certificate, a new Certificate of like Class, tenor and Percentage Interest.
      In
      connection with the issuance of any new Certificate under this Section 7.03,
      the
      Securities Administrator may require the payment of a sum sufficient to cover
      any tax or other governmental charge that may be imposed in relation thereto
      and
      any other expenses (including the fees and expenses of the Securities
      Administrator) connected therewith. Any replacement Certificate issued pursuant
      to this Section 7.03 shall constitute complete and indefeasible evidence of
      ownership in the Trust Fund, as if originally issued, whether or not the lost,
      stolen or destroyed Certificate shall be found at any time. All Certificates
      surrendered to the Securities Administrator under the terms of this Section
      7.03
      shall be canceled and destroyed by the Securities Administrator in accordance
      with its standard procedures without liability on its part.

     

    Section
      7.04  Persons
      Deemed Owners. 

     

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

     

    Section
      7.05  Access
      to
      List of Certificateholders’ Names and Addresses. 

     

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

     

    Section
      7.06  Book-Entry
      Certificates. 

     

    The
      Regular Certificates (other than the Class C Certificates), upon original
      issuance, shall be issued in the form of one or more typewritten Certificates
      representing the Book-Entry Certificates, to be delivered to the Depository
      by
      or on behalf of the Depositor. Such Certificates shall initially be registered
      on the Certificate Register in the name of the Depository or its nominee, and
      no
      Certificate Owner of such Certificates will receive a definitive certificate
      representing such Certificate Owner’s interest in such Certificates, except as
      provided in Section 7.08. Unless and until definitive, fully registered
      Certificates (“Definitive Certificates”) have been issued to the Certificate
      Owners of such Certificates pursuant to Section 7.08:

     

    (a)  the
      provisions of this Section shall be in full force and effect;

     

    (b)  the
      Depositor, the Securities
      Administrator
      and the
      Trustee may deal with the Depository and the Depository Participants for all
      purposes (including the making of distributions) as the authorized
      representative of the respective Certificate Owners of such
      Certificates;

     

    (c)  registration
      of the Book-Entry Certificates may not be transferred by the Securities
      Administrator except to another Depository;

     

    (d)  the
      rights of the respective Certificate Owners of such Certificates shall be
      exercised only through the Depository and the Depository Participants and shall
      be limited to those established by law and agreements between the Owners of
      such
      Certificates and the Depository and/or the Depository Participants. Pursuant
      to
      the Depository Agreement, unless and until Definitive Certificates are issued
      pursuant to Section 7.08, the Depository will make book-entry transfers among
      the Depository Participants and receive and transmit distributions of principal
      and interest on the related Certificates to such Depository
      Participants;

     

    (e)  the
      Depository may collect its usual and customary fees, charges and expenses from
      its Depository Participants;

     

    (f)  the
      Securities
      Administrator
      may rely
      and shall be fully protected in relying upon information furnished by the
      Depository with respect to its Depository Participants; and

     

    (g)  to
      the
      extent that the provisions of this Section conflict with any other provisions
      of
      this Agreement, the provisions of this Section shall control.

     

    For
      purposes of any provision of this Agreement requiring or permitting actions
      with
      the consent of, or at the direction of, Certificateholders evidencing a
      specified percentage of the aggregate unpaid principal amount of any Class
      of
      Certificates, such direction or consent may be given by Certificate Owners
      (acting through the Depository and the Depository Participants) owning
      Book-Entry Certificates evidencing the requisite percentage of principal amount
      of such Class of Certificates.

     

    The
      Private Certificates shall initially be held in fully registered certificated
      form. If at any time the Holders of all of the Certificates of one or more
      such
      Classes request that the Securities Administrator cause such Class to become
      Global Certificates, the Depositor (with the assistance of the Securities
      Administrator) will take such action as may be reasonably required to cause
      the
      Depository to accept such Class or Classes for trading if it may legally be
      so
      traded. If at anytime there are to be Global Certificates, the Global
      Certificates shall be delivered to the Depository by the Depositor or deposited
      with the Securities Administrator as custodian for the Depository.

     

    All
      transfers by Certificate Owners of such respective Classes of Book-Entry
      Certificates and any Global Certificates shall be made in accordance with the
      procedures established by the Depository Participant or brokerage firm
      representing such Certificate Owners. Each Depository Participant shall only
      transfer Book-Entry Certificates of Certificate Owners it represents or of
      brokerage firms for which it acts as agent in accordance with the Depository’s
      normal procedures.

     

    Section
      7.07  Notices
      to Depository. 

     

    Whenever
      any notice or other communication is required to be given to Certificateholders
      of a Class with respect to which Book-Entry Certificates have been issued,
      unless and until Definitive Certificates shall have been issued to the related
      Certificate Owners, the Securities Administrator shall give all such notices
      and
      communications to the Depository.

     

    Section
      7.08  Definitive
      Certificates. 

     

    If,
      after
      Book-Entry Certificates have been issued with respect to any Certificates,
      (a)
      the Depositor or the Depository advises the Securities Administrator that the
      Depository is no longer willing or able to discharge properly its
      responsibilities under the Depository Agreement with respect to such
      Certificates and the Depositor is unable to locate a qualified successor or
      (b)
      the Depositor, with the consent of Depository Participants, advises the
      Securities Administrator that it elects to terminate the book-entry system
      with
      respect to such Certificates through the Depository, then the Securities
      Administrator shall notify all Certificate Owners of such Certificates, through
      the Depository, of the occurrence of any such event and of the availability
      of
      Definitive Certificates to applicable Certificate Owners requesting the same.
      The Depositor shall provide the Securities Administrator with an adequate
      inventory of certificates to facilitate the issuance and transfer of Definitive
      Certificates. Upon surrender to the Securities Administrator of any such
      Certificates by the Depository, accompanied by registration instructions from
      the Depository for registration, the Securities Administrator shall countersign
      and deliver such Definitive Certificates. Neither the Depositor nor the
      Securities Administrator shall be liable for any delay in delivery of such
      instructions and each may conclusively rely on, and shall be protected in
      relying on, such instructions. 

     

    In
      addition, if an Event of Default has occurred and is continuing, each
      Certificate Owner materially adversely affected thereby may at its option
      request a Definitive Certificate evidencing such Certificate Owner’s Voting
      Rights in the related Class of Certificates. In order to make such request,
      such
      Certificate Owner shall, subject to the rules and procedures of the Depository,
      provide the Depository or the related Depository Participant with directions
      for
      the Securities Administrator to exchange or cause the exchange of the
      Certificate Owner’s interest in such Class of Certificates for an equivalent
      Voting Right in fully registered definitive form. Upon receipt by the Securities
      Administrator of instructions from the Depository directing the Securities
      Administrator to effect such exchange (such instructions to contain information
      regarding the Class of Certificates and the Certificate Principal Balance being
      exchanged, the Depository Participant account to be debited with the decrease,
      the registered holder of and delivery instructions for the definitive
      Certificate, and any other information reasonably required by the Securities
      Administrator), (i) the Securities Administrator shall instruct the Depository
      to reduce the related Depository Participant’s account by the aggregate
      Certificate Principal Balance of the definitive Certificate, (ii) the Securities
      Administrator shall execute, authenticate and deliver, in accordance with the
      registration and delivery instructions provided by the Depository, a definitive
      Certificate evidencing such Certificate Owner’s Voting Rights in such Class of
      Certificates and (iii) the Securities Administrator shall execute and
      authenticate a new Book-Entry Certificate reflecting the reduction in the
      Certificate Principal Balance of such Class of Certificates by the amount of
      the
      definitive Certificates.

     

    Section
      7.09  Maintenance
      of Office or Agency. 

     

    The
      Securities Administrator will maintain or cause to be maintained at its expense
      an office or offices or agency or agencies located at LaSalle Bank National
      Association, 135
      South
      LaSalle Street, Suite 1625, Chicago, IL 60603, Attn: Global Securities and
      Trust
      Services Group - SACO 2006-9,
      where
      Certificates may be surrendered for registration of transfer or exchange. The
      Securities Administrator initially designates its Corporate Trust Office, as
      the
      office for such purposes. The Securities Administrator will give prompt written
      notice to the Certificateholders of any change in such location of any such
      office or agency.

    

    ARTICLE
      VIII

    THE
      DEPOSITOR, THE COMPANY AND THE MASTER SERVICER

     

    Section
      8.01  Liabilities
      of the Depositor, the Company and the Master Servicer. 

     

    Each
      of
      the Depositor, the Company and 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
      8.02  Merger
      or
      Consolidation of the Depositor, the Company or the Master Servicer. 

     

    (a)  Each
      of
      the Depositor, the Company and the Master Servicer will keep in full force
      and
      effect its existence, rights and franchises as a limited liability company
      under
      the laws of the state of its formation, a corporation under the laws of the
      state of its incorporation or as a national banking association under federal
      law, as applicable, 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 Certificates or any of the Mortgage Loans
      and to perform its duties under this Agreement.

     

    (b)  Any
      Person into which the Depositor, the Company or the Master Servicer may be
      merged or consolidated, or any corporation resulting from any merger or
      consolidation to which the Depositor, the Company or the Master Servicer shall
      be a party, or any Person succeeding to the business of the Depositor, the
      Company or the Master Servicer, shall be the successor of the Depositor, the
      Company or 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
      8.03  Indemnification
      of the Trustee, the Master Servicer and the Securities
      Administrator.

     

    (a)  The
      Master Servicer agrees to indemnify the Indemnified Persons for, and to hold
      them harmless against, any loss, liability or expense (including reasonable
      legal fees and disbursements of counsel) incurred on their part that may be
      sustained in connection with, arising out of, or relating to, any claim or
      legal
      action (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 its 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), the affected Indemnified Person shall have given the Master
      Servicer and EMC written notice thereof promptly after such Person shall have
      with respect to such claim or legal action knowledge thereof; provided, however
      that the failure to give such notice shall not relieve the Master Servicer
      of
      its indemnification obligations hereunder except to the extent the Master
      Servicer is prejudiced thereby. This indemnity shall survive the resignation
      or
      removal of the Trustee, Master Servicer or the Securities Administrator and
      the
      termination of this Agreement.

     

    (b)  The
      Company agrees to indemnify the Indemnified Persons and to hold them harmless
      from and against any and all claims, losses, damages, penalties, fines,
      forfeitures, legal fees and related costs, judgments, and any other costs,
      fees
      and expenses that the Indemnified Persons may sustain in any way related to
      (i)
      the failure of the Company to perform in any way its duties hereunder and
      service the EMC Mortgage Loans in strict compliance with the terms of this
      Agreement, (ii) breach of any representation or warranty of the Company
      contained herein or (iii) incurred by reason of the Company’s willful
      misfeasance, bad faith or negligence in the performance of its duties hereunder
      or by reason of reckless disregard of its obligations and duties hereunder.
      The
      Company shall immediately notify the Master Servicer and the Trustee if a claim
      is made by a third party with respect to this Agreement or the EMC Mortgage
      Loans, assume (with the consent of the Master Servicer and the Trustee and
      with
      counsel reasonably satisfactory to the Master Servicer and the Trustee) 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 any Indemnified Person in respect
      of
      such claim but failure of the Company to give such notice shall not limit its
      obligations hereunder. The Company agrees that it will not enter into any
      settlement of any such claim without the consent of the Indemnified Persons
      unless such settlement includes an unconditional release of such Indemnified
      Persons from all liability that is the subject matter of such claim. The
      provisions of this Section 8.03(b) shall survive termination of this
      Agreement.

     

    (c)  EMC
      will
      indemnify any Indemnified Person for any loss, liability or expense of any
      Indemnified Person not otherwise paid or covered pursuant to subsection (b)
      above. Such indemnification shall survive termination of this
      Agreement.

     

    Section
      8.04  Limitations
      on Liability of the Depositor, the Company, the Master Servicer and
      Others. 

     

    (a)  Subject
      to the obligation of the Company and the Master Servicer to indemnify the
      Indemnified Persons pursuant to Section 8.03, neither the Depositor, the
      Company, the Master Servicer nor any of the directors, officers, employees
      or
      agents of the Depositor, the Company and the Master Servicer shall be under
      any
      liability to the Indemnified Persons, the Trust Fund or the Certificateholders
      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 Depositor, the Company, 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
      Depositor, the Company, the Master Servicer and the Securities Administrator
      and
      any of their respective directors, officers, employees or agents may rely in
      good faith on any document of any kind prima facie properly executed and
      submitted by any Person respecting any matters arising hereunder.

     

    (c)  The
      Depositor, the Company, the Master Servicer, the Securities Administrator,
      the
      Trustee, each Custodian, LaSalle Bank National Association in its individual
      capacity and any director, officer, employee or agent of the Depositor, the
      Company, the Master Servicer, the Securities Administrator, the Trustee and
      each
      Custodian shall be indemnified by the Trust and held harmless thereby against
      any loss, liability or expense (including reasonable legal fees and
      disbursements of counsel) incurred on their part that may be sustained in
      connection with, arising out of, or related to, any claim or legal action
      (including any pending or threatened claim or legal action) relating to, or
      the
      performance of its obligations under, this Agreement, the Assignment Agreement,
      the Custodial Agreements, the Certificates or Servicing Agreements, other than
      (i) in the case of the Company, the Master Servicer or the Securities
      Administrator, any such loss, liability or expense related to the Company’s or
      the Master Servicer’s or Securities Administrator’s failure to perform its
      respective duties in compliance with this Agreement or (ii) in the case of
      the
      Company, the Master Servicer or the Securities Administrator, any such loss,
      liability or expense incurred by reason of the Company’s or the Master
      Servicer’s or the Securities Administrator’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 or under the Custodial
      Agreement, as applicable, (iii) in the case of the Trustee, any such loss,
      liability or expense incurred by reason of the Trustee’s willful misfeasance,
      bad faith or negligence in the performance of its duties hereunder, or by reason
      of its reckless disregard of obligations and duties hereunder and (iv) in the
      case of either Custodian, any such loss, liability or expense incurred by reason
      of such Custodian’s willful misfeasance, bad faith or negligence in the
      performance of its duties under the related Custodial Agreement, or by reason
      of
      its reckless disregard of obligations and duties thereunder. Such
      indemnification shall survive termination of this Agreement.

     

    (d)  None
      of
      the Depositor, the Company, the Master Servicer or the Securities Administrator
      shall be under any obligation to appear in, prosecute or defend any legal action
      that is not incidental to its duties under this Agreement and that in its
      opinion may involve it in any expense or liability; provided, however, the
      Master Servicer may in its discretion, undertake any such action which it may
      deem necessary or desirable with respect to this Agreement and the rights and
      duties of the parties hereto and the interests of the Certificateholders
      hereunder. In such event, the legal expenses and costs of such action and any
      liability resulting therefrom (except any loss, liability or expense incurred
      by
      reason of willful misfeasance, bad faith or negligence in the performance of
      duties hereunder or by reason of reckless disregard of obligations and duties
      hereunder) shall be expenses, costs and liabilities of the Trust Fund, and
      the
      Master Servicer shall be entitled to be reimbursed therefor out of the Master
      Servicer Collection Account as provided by Section 5.02. Nothing in this
      Subsection 8.04(d) shall affect the Master Servicer’s obligation to master
      service the Mortgage Loans pursuant to Section 4.01.

     

    (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 Trust 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 Trustee if it has notice of such potential
      liabilities.

     

    (f)  The
      Master Servicer shall not be liable for any acts or omissions of the Company
      or
      the related Servicers.

     

    (g)  The
      Master Servicer may perform any of its duties hereunder or exercise its rights
      hereunder either directly of through Affiliates, agents or
      attorneys.

     

    Section
      8.05  Master
      Servicer and Company Not to Resign.

     

    (a)  Except
      as
      provided in Section 8.07, the Master Servicer shall not resign from the
      obligations and duties hereby imposed on it except (i) with the prior consent
      of
      the Trustee (which
      consent shall not be unreasonably withheld or delayed)
      or (ii)
      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 Opinion of Counsel, addressed to and delivered to, the Trustee.
      No such resignation by the Master Servicer shall become effective until the
      Trustee or a successor to the Master Servicer reasonably satisfactory to the
      Trustee shall have assumed the responsibilities and obligations of the Master
      Servicer in accordance with Section 9.02 hereof. The Trustee shall notify each
      Rating Agency of the resignation of the Master Servicer.

     

    (b)  The
      Company shall not resign from the obligations and duties hereby imposed on
      it
      except (i) upon the assignment of its servicing duties with respect to all
      or a
      portion of the EMC Mortgage Loans to an institution that is a Fannie Mae and
      Freddie Mac approved seller/servicer in good standing that has a net worth
      of
      not less than $15,000,000 and with the prior written consent of the Master
      Servicer (which consent shall not be unreasonably withheld or delayed) or (ii)
      upon the determination that its duties hereunder are no longer permissible
      under
      applicable law and such incapacity cannot be cured by the Company. Any
      determination permitting the resignation of the Company shall be evidenced
      by an
      Opinion of Counsel to such effect addressed to and delivered, to the Master
      Servicer and the Trustee which Opinion of Counsel shall be in form and substance
      acceptable to the Master Servicer and the Trustee. No appointment of a successor
      to the Company shall be effective hereunder unless (a) the Rating Agencies
      have
      confirmed in writing that such appointment will not result in a downgrade,
      qualification or withdrawal of the then current ratings assigned to the
      Certificates, (b) such successor shall have represented that it is meets the
      eligibility criteria set forth in clause (i) above, and (c) such successor
      has
      agreed to assume the obligations of the Company hereunder to the extent of
      the
      EMC Mortgage Loans to be serviced by such successor. The Company shall provide
      a
      copy of the written confirmation of the Rating Agencies and the agreement
      executed by such successor to the Master Servicer and the Trustee. No such
      resignation shall become effective until a qualified successor or the Master
      Servicer shall have assumed the Company’s responsibilities and obligations
      hereunder. The Company shall notify the Master Servicer, the Trustee and the
      Rating Agencies of the resignation of the Company or the assignment of all
      or a
      portion of its servicing duties hereunder in accordance with this Section
      8.05.

     

    Section
      8.06  Successor
      Master Servicer.

     

    In
      connection with the appointment of any Successor Master Servicer or the
      assumption of the duties of the Master Servicer, EMC or the Trustee may make
      such arrangements for the compensation of such Successor Master Servicer out
      of
      payments on the Mortgage Loans as EMC or the Trustee and such Successor Master
      Servicer shall agree. If the Successor Master Servicer does not agree that
      such
      market value is a fair price, such Successor Master Servicer shall obtain two
      quotations of market value from third parties actively engaged in the servicing
      of single-family mortgage loans. In no event shall the compensation of any
      Successor Master Servicer exceed that permitted the Master Servicer hereunder
      without the consent of all of the Certificateholders.

     

    Section
      8.07  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 and EMC
      may terminate the Master Servicer without cause and select a new Master
      Servicer; provided, however, 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 $15,000,000 (unless otherwise approved by each Rating Agency
      pursuant to clause (ii) below) and meets the eligibility requirements herein
      to
      serve as Master Servicer and Securities Administrator; (c) shall be reasonably
      satisfactory to the Trustee (as evidenced in a writing signed by the Trustee);
      and (d) shall execute and deliver to the Trustee an agreement, in form and
      substance reasonably satisfactory to the Trustee, which contains an assumption
      by such Person of the due and punctual performance and observance of each
      responsibility, covenant and condition of the Master Servicer and the Securities
      Administrator under this Agreement and each Custodial Agreement from and after
      the effective date of such assumption agreement; (ii) each Rating Agency shall
      be given prior written notice of the identity of the proposed successor to
      the
      Master Servicer and each Rating Agency’s rating of the Certificates in effect
      immediately prior to such assignment, sale and delegation will not be
      downgraded, qualified or withdrawn as a result of such assignment, sale and
      delegation, as evidenced by a letter to such effect delivered to the Master
      Servicer, the Securities Administrator and the Trustee; and (iii) the Master
      Servicer assigning and selling the master servicing shall deliver to the Trustee
      an Officer’s Certificate and an Opinion of Counsel addressed to the Trustee,
      each stating that all conditions precedent to such action under this Agreement
      have been satisfied and such action is permitted by and complies with the terms
      of this Agreement.

     

    

    ARTICLE
      IX

     

    DEFAULT;
      TERMINATION OF MASTER SERVICER; TERMINATION OF COMPANY

     

    Section
      9.01  Events
      of
      Default. 

     

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

     

    (i)  any
      failure by the Master Servicer to remit to the Securities Administrator any
      amounts received or collected by the Master Servicer in respect of the Mortgage
      Loans and required to be remitted by it hereunder (other than any Advance),
      which failure shall continue unremedied for one Business Day after the date
      on
      which written notice of such failure shall have been given to the Master
      Servicer by the Trustee or the Depositor, or to the Trustee and the Master
      Servicer by the Holders of Certificates evidencing not less than 25% of the
      Voting Rights evidenced by the Certificates; or

     

    (ii)  other
      than with respect to clause (viii) below, any failure by the Master Servicer
      to
      observe or perform in any material respect any other of the covenants or
      agreements on the part of the Master Servicer contained in this Agreement or
      any
      breach of a representation or warranty by the Master Servicer, which failure
      or
      breach shall continue unremedied for a period of 60 days after the date on
      which
      written notice of such failure shall have been given to the Master Servicer
      by
      the Trustee or the Depositor, or to the Trustee and the Master Servicer by
      the
      Holders of Certificates evidencing not less than 25% of the Voting Rights
      evidenced by the Certificates; or

     

    (iii)  a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises for the appointment of a 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 consecutive days;
      or

     

    (iv)  the
      Master Servicer shall consent to the appointment of a receiver or liquidator
      in
      any insolvency, readjustment of debt, marshalling of assets and liabilities
      or
      similar proceedings of or relating to the Master Servicer or all or
      substantially all of the property of the Master Servicer; 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, or commence a
      voluntary case under, any applicable insolvency or reorganization statute,
      make
      an assignment for the benefit of its creditors, or voluntarily suspend payment
      of its obligations; or

     

    (vi)  the
      Master Servicer assigns or delegates its duties or rights under this Agreement
      in contravention of the provisions permitting such assignment or delegation
      under Sections 8.05 or 8.07;

     

    (vii)  The
      Master Servicer fails to deposit or cause to be deposited in the Distribution
      Account any Advance (other than a Nonrecoverable Advance) by 5:00 p.m. New
      York
      City time on the first Business Day preceding the Distribution Date;
      or

     

    (viii)  failure
      by the Master Servicer to duly perform, within the required time period, its
      obligations under Sections 3.16, 3.17 or 3.18 which failure continues unremedied
      at the end of the cure period set forth under such Sections.

     

    If
      an
      Event of Default shall occur, then, and in each and every such case, so long
      as
      such Event of Default shall not have been remedied, the Trustee may, and at
      the
      written direction of the Holders of Certificates evidencing not less than 25%
      of
      the Voting Rights evidenced by the Certificates or at the written direction
      of
      the Trustee shall in the case of any Event of Default described in clauses
      (i)
      through (vi) and clause (viii) above, by notice in writing to the Master
      Servicer and the Swap Provider, with a copy to each
      Rating
      Agency may,
      terminate all of the rights and obligations (but not the liabilities) of the
      Master Servicer (and the Securities Administrator if the Master Servicer and
      the
      Securities Administrator are the same entity) under this Agreement and in and
      to
      the Mortgage Loans and the proceeds thereof, other than its rights as a
      Certificateholder hereunder. On or after the receipt by the Master Servicer
      of
      such written notice, all authority and power of the Master Servicer (and, if
      applicable, the Securities Administrator) hereunder, whether with respect to
      the
      Mortgage Loans or otherwise, shall pass to and be vested in the Trustee, or
      any
      Successor Master Servicer appointed pursuant to Section 9.02 (a “Successor
      Master Servicer” and, if applicable, “Successor Securities Administrator”). Such
      Successor Master Servicer shall thereupon if such Successor Master Servicer
      is a
      successor to the Master Servicer, make any Advance required by Article IV,
      subject, in the case of the Trustee, to Section 9.02. The Trustee is hereby
      authorized and empowered to execute and deliver, on behalf of the terminated
      Master Servicer and, if applicable, the terminated Securities Administrator,
      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 any Mortgage Loans and related documents, or
      otherwise. Unless expressly provided in such written notice, no such termination
      shall affect any obligation of the Master Servicer to pay amounts owed pursuant
      to Article VIII or Article X. The Master Servicer and, if applicable, the
      Securities Administrator agrees to cooperate with the Trustee in effecting
      the
      termination of the Master Servicer’s and, if applicable, the Securities
      Administrator’s responsibilities and rights hereunder, including, without
      limitation, the transfer to the applicable Successor Master Servicer of all
      cash
      amounts which shall at the time be credited to the Master Servicer Collection
      Account maintained pursuant to Section 5.05, or thereafter be received with
      respect to the applicable Mortgage Loans. The Trustee shall promptly notify
      each
      Rating
      Agency
      of the
      occurrence of an Event of Default actually
      known to a Responsible Officer of the Trustee.

     

    Notwithstanding
      any termination of the activities of the Master Servicer hereunder, the Master
      Servicer shall be entitled to receive, out of any late collection of a Scheduled
      Payment on a Mortgage Loan that was due prior to the notice terminating the
      Master Servicer’s rights and obligations as Master Servicer hereunder and
      received after such notice, that portion thereof to which the Master Servicer
      would have been entitled pursuant to Section 5.02 and to receive any other
      amounts payable to the Master Servicer hereunder the entitlement to which arose
      prior to the termination of its activities hereunder.

     

    Notwithstanding
      the foregoing, if an Event of Default described in clause (vii) of this Section
      9.01 shall occur, the Trustee shall, by notice in writing to the Master
      Servicer, which may be delivered by telecopy, immediately terminate 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 Holder of the
      Certificates or to reimbursement of Monthly Advances and other advances of
      its
      own funds, and the Trustee shall act as provided in Section 9.02 to carry out
      the duties of the Master Servicer, including the obligation to make any Monthly
      Advance the nonpayment of which was an Event of Default described in clause
      (vii) of this Section 9.01. Any such action taken by the Trustee must be prior
      to the distribution on the relevant Distribution Date.

     

    Section
      9.02  Trustee
      to Act; Appointment of Successor. 

     

    On
      and
      after the time the Master Servicer receives a notice of termination pursuant
      to
      Section 9.01 hereof the Trustee shall automatically become the successor to
      the
      Master Servicer with respect to the transactions set forth or provided for
      herein and after a transition period (not to exceed 90 days), shall be subject
      to all the responsibilities, duties and liabilities relating thereto placed
      on
      the Master Servicer by the terms and provisions hereof; provided, however,
      that
      the
      Company shall have the right to either (a) immediately assume the duties of
      the
      Master Servicer or (b) select a Successor Master Servicer;
      provided, further, however that, pursuant to Article V hereof, the Trustee
      in
      its capacity as Successor Master Servicer shall be responsible for making any
      Advances required to be made by the Master Servicer immediately upon the
      termination of the Master Servicer and any such Advance shall be made on the
      Distribution Date on which such Advance was required to be made by the
      predecessor Master Servicer. Effective on the date of such notice of
      termination, as compensation therefor, the Trustee shall be entitled to all
      compensation, reimbursement of expenses and indemnification that the Master
      Servicer would have been entitled to if it had continued to act hereunder,
      provided, however, that the Trustee shall not be (i) liable for any acts or
      omissions of the Master Servicer, (ii) obligated to make Advances if it is
      prohibited from doing so under applicable law, (iii) responsible for expenses
      of
      the Master Servicer pursuant to Section 2.03 or (iv) obligated to deposit losses
      on any Permitted Investment directed by the Master Servicer. Notwithstanding
      the
      foregoing, the Trustee may, if it shall be unwilling to so act, or shall, if
      it
      is prohibited by applicable law from making Advances pursuant to Article VI
      or
      if it is otherwise unable to so act, appoint, or petition a court of competent
      jurisdiction to appoint, any established mortgage loan servicing institution
      the
      appointment of which does not adversely affect the then current rating of the
      Certificates by each
      Rating
      Agency
      as the
      successor to the Master Servicer hereunder in the assumption of all or any
      part
      of the responsibilities, duties or liabilities of the Master Servicer hereunder.
      Any Successor Master Servicer shall (i) be an institution that is a Fannie
      Mae
      and Freddie Mac approved seller/servicer in good standing, that has a net worth
      of at least $15,000,000, and (ii) be willing to act as successor servicer of
      any
      Mortgage Loans under this Agreement or the related Servicing Agreement with
      respect to which the Company or the original Servicer has been terminated as
      servicer, and shall have executed and delivered to the Depositor and the Trustee
      an agreement accepting such delegation and assignment, that contains an
      assumption by such Person of the rights, powers, duties, responsibilities,
      obligations and liabilities of the Master Servicer (other than any liabilities
      of the Master Servicer hereof incurred prior to termination of the Master
      Servicer under Section 9.01 or as otherwise set forth herein), with like effect
      as if originally named as a party to this Agreement, provided that each Rating
      Agency shall have acknowledged in writing that its rating of the Certificates
      in
      effect immediately prior to such assignment and delegation will not be qualified
      or reduced as a result of such assignment and delegation. If the Trustee assumes
      the duties and responsibilities of the Master Servicer in accordance with this
      Section 9.02, the Trustee shall not resign as Master Servicer until a Successor
      Master Servicer has been appointed and has accepted such appointment. Pending
      appointment of a successor to the Master Servicer hereunder, the Trustee, unless
      the Trustee is prohibited by law from so acting, shall act in such capacity
      as
      hereinabove provided. In connection with such appointment and assumption, the
      Trustee may make such arrangements for the compensation of such successor out
      of
      payments on Mortgage Loans or otherwise as it and such successor shall agree;
      provided that no such compensation unless agreed to by the Certificateholders
      shall be in excess of that permitted the Master Servicer hereunder. The Trustee
      and such successor shall take such action, consistent with this Agreement,
      as
      shall be necessary to effectuate any such succession. Neither the Trustee nor
      any other Successor Master Servicer shall be deemed to be in default hereunder
      by reason of any failure to make, or any delay in making, any distribution
      hereunder or any portion thereof or any failure to perform, or any delay in
      performing, any duties or responsibilities hereunder, in either case caused
      by
      the failure of the Master Servicer and the Securities Administrator to deliver
      or provide, or any delay in delivering or providing, any monies, information,
      documents or records to it.

     

    The
      costs
      and expenses of the Trustee in connection with the termination of the Master
      Servicer, appointment of a Successor Master Servicer and, if applicable, any
      transfer of master servicing, including, without limitation, all costs and
      expenses associated with the complete transfer of all master servicing data
      and
      the completion, correction or manipulation of such master servicing data as
      may
      be required by the Trustee to correct any errors or insufficiencies in the
      master servicing data or otherwise to enable the Trustee or the Successor Master
      Servicer to master service the Mortgage Loans properly and effectively, to
      the
      extent not previously paid by the terminated Master Servicer, shall be payable
      to the Trustee pursuant to Section 10.05.

     

    Section
      9.03  Notification
      to Certificateholders. 

     

    (a)  Upon
      any
      termination of or appointment of a successor to the Master Servicer, the Trustee
      shall give prompt written notice thereof to Certificateholders, the Swap
      Provider and to each Rating Agency.

     

    (b)  Within
      60
      days after the occurrence of any Event of Default, the Trustee shall transmit
      by
      mail to all Certificateholders and the Swap Provider notice of each such Event
      of Default hereunder actually known to a Responsible Officer of the Trustee,
      unless such Event of Default shall have been cured or waived.

     

    Section
      9.04  Waiver
      of
      Defaults. 

     

    The
      Trustee shall transmit by mail to all Certificateholders and the Swap Provider,
      within 60 days after the occurrence of any Event of Default actually known
      to a
      Responsible Officer of the Trustee, unless such Event of Default shall have
      been
      cured, notice of each such Event of Default hereunder known to the Trustee.
      The
      Holders of Certificates evidencing not less than 51% of the Voting Rights
      may,
      on
      behalf of all Certificateholders, waive any default by the Master Servicer
      in
      the performance of its obligations hereunder and the consequences thereof,
      except a default in the making of or the causing to be made of any required
      remittances to the Securities Administrator. Upon any such waiver of a past
      default, such default shall be deemed to cease to exist, and any Event of
      Default arising therefrom shall be deemed to have been timely 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. The Trustee shall give notice of any such waiver to
      each
      Rating
      Agency.

     

    Section
      9.05  Company
      Default.

     

    In
      case
      one or more of the following events of default by the Company (each, a “Company
      Default”) shall occur and be continuing, that is to say:

     

    (i)  any
      failure by the Company to remit to the Master Servicer any payment required
      to
      be made under the terms of this Agreement on any Remittance Date;
      or

     

    (ii)  failure
      on the part of the Company duly to observe or perform in any material respect
      any other of the covenants or agreements on the part of the Company set forth
      in
      this Agreement (other than Sections 3.16, 3.17 or 3.18) on the part of the
      Company set forth in this Agreement, the breach of which has a material adverse
      effect and which continue unremedied for a period of sixty days (except that
      such number of days shall be fifteen in the case of a failure to pay any premium
      for any insurance policy required to be maintained under this Agreement and
      such
      failure shall be deemed to have a material adverse effect) after the date on
      which written notice of such failure, requiring the same to be remedied, shall
      have been given to the Company by the Master Servicer; or

     

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

     

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

     

    (v)  the
      Company shall admit in writing its inability to pay its debts generally as
      they
      become due, file a petition to take advantage of any applicable insolvency
      or
      reorganization statute, make an assignment for the benefit of its creditors,
      or
      voluntarily suspend payment of its obligations; or

     

    (vi)  the
      Company attempts to assign its right to servicing compensation hereunder or
      the
      Company attempts to sell or otherwise dispose of all or substantially all of
      its
      property or assets or to assign this Agreement or the servicing responsibilities
      hereunder or to delegate its duties hereunder or any portion thereof except
      as
      otherwise permitted herein; or

     

    (vii)  the
      Company ceases to be qualified to transact business in any jurisdiction where
      it
      is currently so qualified, but only to the extent such non-qualification
      materially and adversely affects the Company’s ability to perform its
      obligations hereunder; or

     

    (viii)  failure
      by the Company to duly perform, within the required time period, its obligations
      under Section 3.16, Section 3.17 or Section 3.18;

     

    then,
      and
      in each and every such case, so long as a Company Default shall not have been
      remedied, the Master Servicer, by notice in writing to the Company may, in
      addition to whatever rights the Master Servicer and the Trustee on behalf of
      the
      Certificateholders may have under Section 8.03 and at law or equity to damages,
      including injunctive relief and specific performance, terminate all the rights
      and obligations of the Company under this Agreement and in and to the EMC
      Mortgage Loans and the proceeds thereof without compensating the Company for
      the
      same. On or after the receipt by the Company of such written notice, all
      authority and power of Company under this Agreement, whether with respect to
      the
      EMC Mortgage Loans or otherwise, shall pass to and be vested in the Master
      Servicer after a transition period (not to exceed 90 days). Upon written request
      from the Master Servicer, the Company shall prepare, execute and deliver, any
      and all documents and other instruments, place in the Master Servicer’s
      possession all Mortgage Files relating to the EMC Mortgage Loans, and do or
      accomplish all other acts or things necessary or appropriate to effect the
      purposes of such notice of termination, whether to complete the transfer and
      endorsement or assignment of the EMC Mortgage Loans and related documents,
      or
      otherwise, at the Company’s sole expense. The Company agrees to cooperate with
      the Master Servicer in effecting the termination of the Company’s
      responsibilities and rights hereunder, including, without limitation, the
      transfer to such successor for administration by it of all cash amounts which
      shall at the time be credited by the Company to its Protected Account or Escrow
      Account or thereafter received with respect to the EMC Mortgage Loans or any
      related REO Property.

     

    The
      costs
      and expenses of the Master Servicer in connection with the termination of the
      Company, appointment of a successor to the Company, and, if applicable, any
      transfer of servicing, including, without limitation, all costs and expenses
      associated with the complete transfer of all servicing data and the completion,
      correction or manipulation of such servicing data as may be required by the
      Master Servicer or other successor to the Company to correct any errors or
      insufficiencies in the servicing data or otherwise to enable the Master Servicer
      or such successor to service the related Mortgage Loans properly and
      effectively, to the extent not previously paid by the terminated Company, shall
      be payable to the Master Servicer or such successor pursuant to Section
      5.07.

     

    Section
      9.06  Waiver
      of
      Company Defaults. 

     

    The
      Master Servicer, may waive only by written notice any default by the Company
      in
      the performance of its obligations hereunder and its consequences. Upon any
      such
      waiver of a past default, such default shall cease to exist, and any Company
      Default arising therefrom shall be deemed to have been remedied for every
      purpose of this Agreement. No such waiver shall extend to any subsequent or
      other default or impair any right consequent thereon except to the extent
      expressly so waived in writing.

     

    

     

    ARTICLE
      X

    CONCERNING
      THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     

    Section
      10.01  Duties
      of
      Trustee and the Securities Administrator. 

     

    (a)  The
      Trustee, prior to the occurrence of an Event of Default and after the curing
      or
      waiver of all Events of Default which may have occurred, and the Securities
      Administrator each undertake to perform such duties and only such duties as
      are
      specifically set forth in this Agreement as duties of the Trustee and the
      Securities Administrator, respectively. If an Event of Default has occurred
      and
      has not been cured or waived, the Trustee shall exercise such of the rights
      and
      powers vested in it by this Agreement, and the same degree of care and skill
      in
      their exercise, as a prudent person would exercise under the circumstances
      in
      the conduct of such Person’s own affairs.

     

    (b)  Upon
      receipt of all resolutions, certificates, statements, opinions, reports,
      documents, orders or other instruments which are specifically required to be
      furnished to the Trustee or the Securities Administrator pursuant to any
      provision of this Agreement, the Trustee or the Securities Administrator,
      respectively, shall examine them to determine whether they are in the form
      required by this Agreement; provided, however, that neither the Trustee or
      the
      Securities Administrator shall be responsible for the accuracy or content of
      any
      resolution, certificate, statement, opinion, report, document, order or other
      instrument furnished by the Master Servicer, the Company or pursuant to any
      provision of this Agreement; provided, further, that neither the Trustee nor
      the
      Securities Administrator shall be responsible for the accuracy or verification
      of any calculation provided to it pursuant to this Agreement.

     

    (c)  On
      each
      Distribution Date, the Securities Administrator shall make monthly distributions
      and the final distribution to the Certificateholders from funds in the
      Distribution Account as provided in Sections 6.04 and 11.01 herein.

     

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

     

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

     

    (ii)  Neither
      the Trustee nor the Securities Administrator shall be liable in its individual
      capacity for an error of judgment made in good faith by a Responsible Officer
      or
      Responsible Officers of the Trustee or the Securities Administrator,
      respectively, unless it shall be proved that the Trustee or the Securities
      Administrator, respectively, was negligent in ascertaining the pertinent
      facts;

     

    (iii)  Neither
      the Trustee nor the Securities Administrator shall be liable with respect to
      any
      action taken, suffered or omitted to be taken by it in good faith in accordance
      with the directions of the Holders of Certificates evidencing not less than
      25%
      of the aggregate Voting Rights of the Certificates (or such other percentage
      as
      specifically set forth herein), if such action or non-action relates to the
      time, method and place of conducting any proceeding for any remedy available
      to
      the Trustee or the Securities Administrator, respectively, or exercising any
      trust or other power conferred upon the Trustee or the Securities Administrator,
      respectively, under this Agreement;

     

    (iv)  The
      Trustee shall not be required to take notice or be deemed to have notice or
      knowledge of any default or Event of Default unless a Responsible Officer of
      the
      Trustee shall have actual knowledge thereof. In the absence of such knowledge,
      the Trustee may conclusively assume there is no such default or Event of
      Default;

     

    (v)  Anything
      in this Agreement to the contrary notwithstanding, in no event shall the Trustee
      or the Securities Administrator be liable for special, indirect or consequential
      loss or damage of any kind whatsoever (including but not limited to lost
      profits), even if the Trustee or the Securities Administrator, respectively, has
      been advised of the likelihood of such loss or damage and regardless of the
      form
      of action; and

     

    (vi)  None
      of
      the Securities Administrator, the Master Servicer, the Company, the Seller,
      the
      Depositor, the Trustee or the Custodians shall be responsible for the acts
      or
      omissions of the other, it being understood that this Agreement shall not be
      construed to render them partners, joint venturers or agents of one
      another.

     

    Neither
      the Trustee nor the Securities
      Administrator
      shall be
      required to expend or risk its own funds or otherwise incur financial 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 adequate indemnity against such risk or liability
      is
      not reasonably assured to it, and none of the provisions contained in this
      Agreement shall in any event require the Trustee or the Securities
      Administrator
      to
      perform, or be responsible for the manner of performance of, any of the
      obligations of the Master Servicer or the Company hereunder or the related
      Servicer under the related Servicing Agreement. The Trustee is here by
      authorized and directed to enter into the Assignment Agreements.

     

    (e)  All
      funds
      received by the Securities Administrator and required to be deposited in the
      Distribution Account pursuant to this Agreement will be promptly so deposited
      by
      the Securities Administrator.

     

    Section
      10.02  Certain
      Matters Affecting the Trustee and the Securities Administrator. 

     

    (a)  Except
      as
      otherwise provided in Section 10.01:

     

    (i)  The
      Trustee and the Securities Administrator may rely and shall be protected in
      acting or refraining from acting in reliance on any resolution or certificate
      of
      the Depositor, the Seller, the Company or the Master Servicer or the related
      Servicer, any certificates of auditors or any other certificate, statement,
      instrument, opinion, report, notice, request, consent, order, appraisal, bond
      or
      other paper or document believed by it to be genuine and to have been signed
      or
      presented by the proper party or parties;

     

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

     

    (iii)  Neither
      the Trustee nor the Securities Administrator shall be under any obligation
      to
      exercise any of the trusts or powers vested in it by this Agreement, other
      than
      its obligation to give notices pursuant to this Agreement, or to institute,
      conduct or defend any litigation hereunder or in relation hereto at the request,
      order or direction of any of the Certificateholders pursuant to the provisions
      of this Agreement, unless such Certificateholders shall have offered to the
      Trustee or the Securities Administrator, as applicable, security or indemnity
      reasonable to it against the costs, expenses and liabilities which may be
      incurred therein or thereby. Nothing contained herein shall, however, relieve
      the Trustee of the obligation, upon the occurrence of an Event of Default of
      which a Responsible Officer of the Trustee has actual knowledge (which has
      not
      been cured or waived), to exercise such of the rights and powers vested in
      it by
      this Agreement, and to use the same degree of care and skill in their exercise,
      as a prudent person would exercise under the circumstances in the conduct of
      his
      own affairs;

     

    (iv)  Neither
      the Trustee nor the Securities Administrator shall be liable in its individual
      capacity 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)  Neither
      the Trustee nor the Securities Administrator shall be bound to make any
      investigation into the facts or matters stated in any resolution, certificate,
      statement, instrument, opinion, report, notice, request, consent, order,
      approval, bond or other paper or document, unless requested in writing to do
      so
      by Holders of Certificates evidencing not less than 25% of the aggregate Voting
      Rights of the Certificates and provided that the payment within a reasonable
      time to the Trustee or the Securities Administrator, as applicable, of the
      costs, expenses or liabilities likely to be incurred by it in the making of
      such
      investigation is, in the opinion of the Trustee or the Securities Administrator,
      as applicable, reasonably assured to the Trustee or the Securities
      Administrator, as applicable, by the security afforded to it by the terms of
      this Agreement. The Trustee or the Securities Administrator may require
      reasonable indemnity against such expense or liability as a condition to taking
      any such action. The reasonable expense of every such examination shall be
      paid
      by the Certificateholders requesting the investigation;

     

    (vi)  The
      Trustee and the Securities Administrator may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or through Affiliates,
      agents or attorneys; provided, however, that the Trustee may not appoint any
      paying agent other than the Securities Administrator to perform any paying
      agent
      functions under this Agreement without the express written consent of the Master
      Servicer, which consents will not be unreasonably withheld. Neither the Trustee
      nor the Securities Administrator shall be liable or responsible for the
      misconduct or negligence of any of the Trustee’s or the Securities
      Administrator’s agents or attorneys or paying agent appointed hereunder by the
      Trustee or the Securities Administrator with due care and, when required, with
      the consent of the Master Servicer;

     

    (vii)  Should
      the Trustee or the Securities Administrator deem the nature of any action
      required on its part to be unclear or ambiguous, the Trustee or the Securities
      Administrator, respectively, may require prior to such action that it be
      provided by the Depositor with reasonable further instructions; the right of
      the
      Trustee or the Securities Administrator to perform any discretionary act
      enumerated in this Agreement shall not be construed as a duty, and neither
      the
      Trustee nor the Securities Administrator shall not be accountable for other
      than
      its negligence or willful misconduct in the performance of any such
      act;

     

    (viii)  Neither
      the Trustee nor the Securities Administrator shall be required to give any
      bond
      or surety with respect to the execution of the trust created hereby or the
      powers granted hereunder, except as provided in Section 10.07; and

     

    (ix)  Neither
      the Trustee nor the Securities Administrator shall have any duty to conduct
      any
      affirmative investigation as to the occurrence of any condition requiring the
      repurchase of any Mortgage Loan by any Person pursuant to this Agreement, or
      the
      eligibility of any Mortgage Loan for purposes of this Agreement.

     

    (b)  The
      Securities Administrator is hereby directed by the Depositor to execute and
      deliver the Swap Administration Agreement (and any amendments or supplements
      to
      the Swap Administration Agreement as may be requested by the Majority Class
      C
      Certificateholder, regarding the distributions to be made to it or its designees
      thereunder). Amounts payable by the Securities Administrator on any Distribution
      Date to the Swap Administrator shall be paid by the Securities Administrator
      as
      provided herein. The Securities Administrator in its individual capacity shall
      have no responsibility for any of the undertakings, agreements or
      representations with respect to the Swap Agreement or the Swap Administration
      Agreement, including, without limitation, for making any payments
      thereunder.

     

    It
      is
      acknowledged and agreed that the Person serving as Securities Administrator
      hereunder shall also serve as Swap Administrator under the Swap Administration
      Agreement and act as Supplemental Interest Trust Trustee under the Swap
      Agreement. The Securities Administrator, the Swap Administrator and the
      Supplemental Interest Trust Trustee are hereby directed by the Depositor to
      execute and deliver the Swap Administration Agreement (and any amendments or
      supplements to the Swap Administration Agreement as may be requested by the
      Majority Class C Certificateholder, regarding the distributions to be made
      to it
      or its designees thereunder) and the Supplemental Interest Trust Trustee is
      hereby directed to execute and deliver the Swap Agreement and to make the
      representations required therein. The Swap Administrator shall not have any
      liability for any failure or delay in payments to the Trust which are required
      under the Swap Administration Agreement where such failure or delay is due
      to
      the failure or delay of the Swap Provider in making such payment to the Swap
      Administrator. LaSalle in its individual capacity and as Swap Administrator,
      the
      Securities Administrator and the Supplemental Interest Trust Trustee shall
      be
      entitled to be indemnified and held harmless by the Trust from and against
      any
      and all losses, claims, expenses or other liabilities that arise by reason
      of or
      in connection with the performance or observance by each of the Swap
      Administrator, the Securities Administrator and the Supplemental Interest Trust
      Trustee of its duties or obligations under the Swap Agreement or the Swap
      Administration Agreement, except to the extent that the same is due to the
      Swap
      Administrator’s, the Securities Administrator’s or the Supplemental Interest
      Trust Trustee’s gross negligence, willful misconduct or fraud. Any Person
      appointed as successor trustee pursuant to Section 9.02 shall also be required
      to serve as successor Swap Administrator and successor supplemental interest
      trust trustee under the Swap Agreement and the Swap Administration
      Agreement.

     

    Section
      10.03  Trustee
      and Securities Administrator Not Liable for Certificates or Mortgage
      Loans. 

     

    The
      recitals contained herein and in the Certificates (other than the signature
      and
      countersignature of the Securities
      Administrator
      on the
      Certificates) shall be taken as the statements of the Depositor, and neither
      the
      Trustee nor the Securities Administrator shall have any responsibility for
      their
      correctness. Neither the Trustee nor the Securities Administrator makes any
      representation as to the validity or sufficiency of, the Certificates (other
      than the signature and countersignature of the Securities Administrator on
      the
      Certificates), any Custodial Agreement or of any Mortgage Loan. The Securities
      Administrator’s signature and countersignature (or countersignature of its
      agent) on the Certificates shall be solely in its capacity as Securities
      Administrator and shall not constitute the Certificates an obligation of the
      Securities Administrator in any other capacity. Neither the Trustee nor the
      Securities Administrator shall be accountable for the use or application by
      the
      Depositor of any of the Certificates or of the proceeds of such Certificates,
      or
      for the use or application of any funds paid to the Depositor with respect
      to
      the Mortgage Loans. Subject to Section 2.06, neither the Trustee nor the
      Securities Administrator shall be responsible for the legality or validity
      of
      this Agreement, any Custodial Agreement or any document or instrument relating
      to this Agreement, the validity of the execution of this Agreement or of any
      supplement hereto or instrument of further assurance, or the validity, priority,
      perfection or sufficiency of the security for the Certificates issued hereunder
      or intended to be issued hereunder. Neither the 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 Trust Fund or its ability to generate the payments to be distributed
      to
      Certificateholders, under this Agreement. The Trustee shall not be responsible
      for filing any financing or continuation statement in any public office at
      any
      time or to otherwise perfect or maintain the perfection of any security interest
      or lien granted to the Trustee hereunder or to record this
      Agreement.

     

    Section
      10.04  Trustee
      and Securities Administrator May Own Certificates. 

     

    Each
      of
      the Trustee and the Securities Administrator in its individual capacity or
      in
      any capacity other than as Trustee or the Securities Administrator hereunder
      may
      become the owner or pledgee of any Certificates with the same rights it would
      have if it were not the Trustee or the Securities Administrator, as applicable,
      and may otherwise deal with the parties hereto.

     

    Section
      10.05  Trustee’s
      and Securities Administrator’s Fees and Expenses. 

     

    The
      fees
      and expenses of the Trustee and the Securities Administrator shall be paid
      in
      accordance with a side letter agreement with the Master Servicer and at the
      expense of the Master Servicer. In addition, the Securities Administrator shall
      be entitled to any investment income on amounts on deposit in the Master
      Servicer Collection Account and the Distribution Account. In addition, the
      Trustee and the Securities Administrator will be entitled to recover from the
      Master Servicer Collection Account pursuant to Section 5.07 all reasonable
      out-of-pocket expenses, disbursements and advances and the expenses of the
      Trustee and the Securities Administrator, respectively, incurred in the course
      of its respective engagement hereunder, 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 Trustee or the Securities Administrator, respectively,
      in the administration of the trusts hereunder (including the reasonable
      compensation, expenses and disbursements of its counsel) except any such
      expense, disbursement or advance as may arise from its negligence or intentional
      misconduct or which is the responsibility of the Certificateholders hereunder.
      If funds in the Master Servicer Collection Account are insufficient therefor,
      the Trustee and the Securities Administrator shall recover such expenses,
      disbursements or advances from EMC and EMC hereby agrees to pay such expenses,
      disbursements or advances upon demand. 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
      10.06  Eligibility
      Requirements for Trustee and Securities Administrator. 

     

    The
      Trustee and any successor Trustee and the Securities Administrator and any
      successor Securities Administrator shall during the entire duration of this
      Agreement be a state bank or trust company or a national banking association
      organized and doing business under the laws of a state or the United States
      of
      America, authorized under such laws to exercise corporate trust powers, having
      a
      combined capital and surplus and undivided profits of at least $50,000,000,
      subject to supervision or examination by federal or state authority and rated
      “Baa2” or higher by Moody’s
      with
      respect to any outstanding long-term unsecured unsubordinated debt, and, in
      the
      case of a successor Trustee or successor Securities Administrator other than
      pursuant to Section 10.10, rated in one of the two highest long-term debt
      categories by each
      Rating
      Agency
      or
      otherwise acceptable to each
      Rating Agency.
      The
      Trustee shall not be an Affiliate of the Master Servicer. If the Trustee
      publishes reports of condition at least annually, pursuant to law or to the
      requirements of the aforesaid supervising or examining authority, then for
      the
      purposes of this Section 10.06 the combined capital and surplus of such
      corporation shall be deemed to be its total equity capital (combined capital
      and
      surplus) as set forth in its most recent report of condition so published.
      In
      case at any time the Trustee or the Securities Administrator, as applicable,
      shall cease to be eligible in accordance with the provisions of this Section
      10.06, the Trustee or the Securities Administrator shall resign immediately
      in
      the manner and with the effect specified in Section 10.08.

     

    Section
      10.07  Insurance. 

     

    The
      Trustee
      and the
      Securities Administrator, at their own expense,
      shall
      at all times (A) maintain and keep in full force and effect: (i) fidelity
      insurance, (ii) theft of documents insurance and (iii) forgery insurance (which
      may be collectively satisfied by a “Financial Institution Bond” and/or a
“Bankers’ Blanket Bond”) or (B) in the case of the Securities Administrator,
      self insure if LaSalle Bank National Association maintains with any Rating
      Agency the equivalent of a long term unsecured debt rating of “A”. All such
      insurance shall be in amounts, with standard coverage and subject to
      deductibles, as are customary for insurance typically maintained by banks or
      their affiliates which act as custodians for investor-owned mortgage pools.
      A
      certificate of an officer of the Trustee or
      the
      Securities Administrator
      as to
      the Trustee’s or
      the
      Securities Administrator’s, respectively,
      compliance with this Section 10.07 shall be furnished to any Certificateholder
      upon reasonable written request.

     

    Section
      10.08  Resignation
      and Removal of Trustee and Securities Administrator. 

     

    The
      Trustee and the Securities Administrator may at any time resign (including,
      in
      the case of the Securities Administrator being affiliated with the Master
      Servicer, in connection with the resignation or termination of the Master
      Servicer) and be discharged from the Trust hereby created by giving written
      notice thereof to the Depositor, the Swap Provider, the Seller, the Securities
      Administrator (or the Trustee, if the Securities Administrator resigns) and
      the
      Master Servicer, with a copy to each
      Rating
      Agency.
      Upon
      receiving such notice of resignation, the Depositor shall promptly appoint
      a
      successor trustee or successor securities administrator, as applicable, (and
      in
      the case of the Securities Administrator’s removal, the Trustee may appoint a
      successor securities administrator) by written instrument, in triplicate, one
      copy of which instrument shall be delivered to each of the resigning trustee
      or
      securities administrator, as applicable, and the successor trustee or securities
      administrator, as applicable. If no successor trustee or successor securities
      administrator shall have been so appointed and have accepted appointment within
      30 days after the giving of such notice of resignation, the resigning Trustee
      or
      Securities Administrator may petition any court of competent jurisdiction for
      the appointment of a successor trustee or securities administrator.

     

    If
      at any
      time (i) the Trustee or the Securities Administrator shall cease to be eligible
      in accordance with the provisions of Section 10.06 hereof and shall fail to
      resign after written request thereto by the Depositor, (ii) the Trustee or
      the
      Securities Administrator shall become incapable of acting, or shall be adjudged
      as bankrupt or insolvent, or a receiver of the Trustee or the Securities
      Administrator or of its property shall be appointed, or any public officer
      shall
      take charge or control of the Trustee or the Securities Administrator or of
      its
      property or affairs for the purpose of rehabilitation, conservation or
      liquidation, or (iii)(A) a tax is imposed with respect to the Trust Fund by
      any
      state in which the Trustee or the Securities Administrator or the Trust Fund
      is
      located, (B) the imposition of such tax would be avoided by the appointment
      of a
      different trustee or securities administrator and (C) the Trustee or the
      Securities Administrator, as applicable, fails to indemnify the Trust Fund
      against such tax, then the Depositor or the Master Servicer may remove the
      Trustee or the Securities Administrator , as applicable, (and in the case of
      the
      Securities Administrator’s ineligibility, the Trustee may appoint a successor
      securities administrator) and appoint a successor trustee or successor
      securities administrator, as applicable, by written instrument, in multiple
      copies, a copy of which instrument shall be delivered to the Trustee, the
      Securities Administrator, the Master Servicer and the successor trustee or
      successor securities administrator, as applicable.

     

    The
      Holders evidencing at least 51% of the Voting Rights of each Class of
      Certificates may at any time remove the Trustee or Securities Administrator
      and
      appoint a successor trustee or securities administrator by written instrument
      or
      instruments, in multiple copies, signed by such Holders or their
      attorneys-in-fact duly authorized, one complete set of which instruments shall
      be delivered by the successor trustee or successor securities administrator
      to
      each of the Master Servicer, the Trustee or Securities Administrator so removed
      and the successor trustee or securities administrator so appointed. Notice
      of
      any removal of the Trustee or Securities Administrator shall be given to each
      Rating Agency by the related successor.

     

    Any
      resignation or removal of the Trustee or the Securities Administrator and
      appointment of a successor trustee or securities administrator pursuant to
      any
      of the provisions of this Section 10.08 shall become effective upon acceptance
      of appointment by the successor trustee or securities administrator as provided
      in Section 10.09 hereof.

     

    Section
      10.09  Successor
      Trustee or Securities Administrator. 

     

    Any
      successor trustee or securities administrator appointed as provided in Section
      10.08 hereof shall execute, acknowledge and deliver to the Depositor, to its
      predecessor trustee or predecessor securities administrator, as applicable,
      and
      the Master Servicer an instrument accepting such appointment hereunder and
      thereupon the resignation or removal of the predecessor trustee or securities
      administrator shall become effective and such successor trustee or securities
      administrator without any further act, deed or conveyance, shall become fully
      vested with all the rights, powers, duties and obligations of its predecessor
      hereunder, with the like effect as if originally named as trustee or securities
      administrator herein.

     

    No
      successor trustee or securities administrator shall accept appointment as
      provided in this Section 10.09 unless at the time of such acceptance such
      successor trustee or securities administrator shall be eligible under the
      provisions of Section 10.07 hereof and its appointment shall not adversely
      affect the then current rating of the Certificates.

     

    Upon
      acceptance of appointment by a successor trustee or securities administrator
      as
      provided in this Section 10.09, the successor trustee or securities
      administrator shall mail notice of the succession of such trustee or securities
      administrator hereunder to all Holders of Certificates. If the successor trustee
      or securities administrator fails to mail such notice within ten days after
      acceptance of appointment, the Depositor shall cause such notice to be mailed
      at
      the expense of the Trust Fund.

     

    Section
      10.10  Merger
      or
      Consolidation of Trustee or Securities Administrator. 

     

    Any
      corporation, state bank or national banking association into which the Trustee
      or the Securities Administrator may be merged or converted or with which it
      may
      be consolidated or any corporation, state bank or national banking association
      resulting from any merger, conversion or consolidation to which the Trustee
      or
      the Securities Administrator shall be a party, or any corporation, state bank
      or
      national banking association succeeding to substantially all of the corporate
      trust business of the Trustee or of the business of the Securities
      Administrator, shall be the successor of the Trustee or the Securities
      Administrator hereunder, provided that such corporation shall be eligible under
      the provisions of Section 10.06 hereof without the execution or filing of any
      paper or further act on the part of any of the parties hereto, anything herein
      to the contrary notwithstanding.

     

    Section
      10.11  Appointment
      of Co-Trustee or Separate Trustee. 

     

    Notwithstanding
      any other provisions of this Agreement, at any time, for the purpose of meeting
      any legal requirements of any jurisdiction in which any part of the Trust Fund
      or property securing any Mortgage Note may at the time be located, the Master
      Servicer and the Trustee acting jointly shall have the power and shall execute
      and deliver all instruments to appoint one or more Persons approved by the
      Trustee to act as co-trustee or co-trustees jointly with the Trustee, or
      separate trustee or separate trustees, of all or any part of the Trust Fund,
      and
      to vest in such Person or Persons, in such capacity and for the benefit of
      the
      Certificateholders, such title to the Trust Fund or any part thereof, whichever
      is applicable, and, subject to the other provisions of this Section 10.11,
      such
      powers, duties, obligations, rights and trusts as the Master Servicer and the
      Trustee may consider necessary or desirable. If the Master Servicer shall not
      have joined in such appointment within 15 days after the receipt by it of a
      request to do so, or in the case an Event of Default shall have occurred and
      be
      continuing, the Trustee alone shall have the power to make such appointment.
      No
      co-trustee or separate trustee hereunder shall be required to meet the terms
      of
      eligibility as a successor trustee under Section 10.06 and no notice to
      Certificateholders of the appointment of any co-trustee or separate trustee
      shall be required under Section 10.09.

     

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

     

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

     

    (ii)  No
      trustee hereunder shall be held personally liable by reason of any act or
      omission of any other trustee hereunder; and

     

    (iii)  The
      Trustee may at any time accept the resignation of or remove any separate trustee
      or co-trustee.

     

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

     

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

     

    Section
      10.12  Tax
      Matters. 

     

    It
      is
      intended that the Trust Fund shall constitute, and that the affairs of the
      Trust
      Fund shall be conducted so that each REMIC formed hereunder qualifies as, a
      “real estate mortgage investment conduit” as defined in and in accordance with
      the REMIC Provisions. In furtherance of such intention, the Securities
      Administrator covenants and agrees that it shall act as agent (and the
      Securities Administrator is hereby appointed to act as agent) on behalf of
      the
      Trust Fund. The Securities Administrator, as agent on behalf of the Trust Fund,
      shall do or refrain from doing, as applicable, the following: (a) the Securities
      Administrator shall prepare and file, or cause to be prepared and filed, in
      a
      timely manner, U.S. Real Estate Mortgage Investment Conduit Income Tax Returns
      (Form 1066 or any successor form adopted by the Internal Revenue Service) and
      prepare and file or cause to be prepared and filed with the Internal Revenue
      Service and applicable state or local tax authorities income tax or information
      returns for each taxable year with respect to each such REMIC containing such
      information and at the times and in the manner as may be required by the Code
      or
      state or local tax laws, regulations, or rules, and furnish, or cause to be
      furnished, to Certificateholders the schedules, statements or information at
      such times and in such manner as may be required thereby; (b) the Securities
      Administrator shall apply for an employer identification number with the
      Internal Revenue Service via a Form SS-4 or other comparable method for each
      REMIC that is or becomes a taxable entity, and within thirty days of the Closing
      Date, furnish or cause to be furnished to the Internal Revenue Service, on
      Forms
      8811 or as otherwise may be required by the Code, the name, title, address,
      and
      telephone number of the Person that the Holders of the Certificates may contact
      for tax information relating thereto, together with such additional information
      as may be required by such Form, and update such information at the time or
      times in the manner required by the Code for the Trust Fund; (c) the Securities
      Administrator on behalf of the Trustee shall make, or cause to be made
      elections, on behalf of each REMIC formed hereunder to be treated as a REMIC
      on
      the federal tax return of such REMIC for its first taxable year (and, if
      necessary, under applicable state law); (d) the Securities Administrator shall
      prepare and forward, or cause to be prepared and forwarded, to the
      Certificateholders and to the Internal Revenue Service and, if necessary, state
      tax authorities, all information returns and reports as and when required to
      be
      provided to them in accordance with the REMIC Provisions, including without
      limitation, the calculation of any original issue discount using the Prepayment
      Assumption; (e) the Securities Administrator shall provide information necessary
      for the computation of tax imposed on the transfer of a Residual Certificate
      to
      a Person that is not a Permitted Transferee, or an agent (including a broker,
      nominee or other middleman) of a Person that is not a Permitted Transferee,
      or a
      pass-through entity in which a Person that is not a Permitted Transferee is
      the
      record holder of an interest (the reasonable cost of computing and furnishing
      such information may be charged to the Person liable for such tax); (f) each
      of
      the Securities Administrator and the Trustee shall, to the extent under its
      control, conduct the affairs of the Trust Fund at all times that any
      Certificates are outstanding so as to maintain the status of each REMIC formed
      hereunder as a REMIC under the REMIC Provisions; (g) neither the
      Trustee nor the Securities Administrator shall knowingly or intentionally take
      any action or omit to take any action that could (i) cause the termination
      of
      the REMIC status of any REMIC formed hereunder or (ii) result in the imposition
      of a tax upon the Trust Fund (including but not limited to the tax on prohibited
      transactions as defined in Section 860F(a)(2) of the Code and the tax on
      contributions to a REMIC set forth in Section 860G(d) of the Code);
      (h) the
      Securities Administrator shall pay, from the sources specified in this Section
      10.12, the amount of any federal, state and local taxes, including prohibited
      transaction taxes as described below, imposed on any REMIC formed hereunder
      prior to the termination of the Trust Fund when and as the same shall be due
      and
      payable (but such obligation shall not prevent the Securities Administrator
      or
      any other appropriate Person from contesting any such tax in appropriate
      proceedings and shall not prevent the Securities Administrator from withholding
      payment of such tax, if permitted by law, pending the outcome of such
      proceedings); (i) the Trustee shall sign or cause to be signed federal, state
      or
      local income tax or information returns or any other document prepared by the
      Securities Administrator pursuant to this Section 10.12 requiring a signature
      thereon by the Trustee; (j) the Securities Administrator shall maintain records
      relating to each REMIC formed hereunder including but not limited to the income,
      expenses, assets and liabilities of each such REMIC and adjusted basis of the
      Trust Fund property determined at such intervals as may be required by the
      Code,
      as may be necessary to prepare the foregoing returns, schedules, statements
      or
      information; (k) the Securities Administrator shall, for federal income tax
      purposes, maintain books and records with respect to the REMICs on a calendar
      year and on an accrual basis; (l) none of the Trustee, the Master Servicer
      or
      the Securities Administrator shall enter into any arrangement not otherwise
      provided for in this Agreement by which the REMICs will receive a fee or other
      compensation for services nor permit the REMICs to receive any income from
      assets other than “qualified mortgages” as defined in Section 860G(a)(3) of the
      Code or “permitted investments” as defined in Section 860G(a)(5) of the Code;
      and (l) as and when necessary and appropriate, the Securities Administrator,
      at
      the expense of the Trust Fund, shall represent the Trust Fund in any
      administrative or judicial proceedings relating to an examination or audit
      by
      any governmental taxing authority, request an administrative adjustment as
      to
      any taxable year of any REMIC formed hereunder, enter into settlement agreements
      with any governmental taxing agency, extend any statute of limitations relating
      to any tax item of the Trust Fund, and otherwise act on behalf of each REMIC
      formed hereunder in relation to any tax matter involving any such
      REMIC.

     

    In
      order
      to enable each of the Trustee and the Securities Administrator to perform its
      duties as set forth herein, the Depositor shall provide, or cause to be
      provided, to the Trustee or the Securities Administrator within 10 days after
      the Closing Date all information or data that the Trustee or the Securities
      Administrator requests in writing and determines to be relevant for tax purposes
      to the valuations and offering prices of the Certificates, including, without
      limitation, the price, yield, prepayment assumption and projected cash flows
      of
      the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide
      to the Trustee or the Securities Administrator promptly upon written request
      therefor, any such additional information or data that the Trustee or the
      Securities Administrator may, from time to time, request in order to enable
      the
      Trustee or the Securities Administrator to perform its duties as set forth
      herein. The Depositor hereby indemnifies each of the Trustee and the Securities
      Administrator for any losses, liabilities, damages, claims or expenses of the
      Trustee or the Securities Administrator arising from any errors or
      miscalculations of the Trustee or the Securities Administrator that result
      from
      any failure of the Depositor to provide, or to cause to be provided, accurate
      information or data to the Trustee or the Securities Administrator, as
      applicable, on a timely basis.

     

    In
      the
      event that any tax is imposed on “prohibited transactions” of any of REMIC I,
      REMIC II, REMIC III, REMIC IV or REMIC V as defined in Section 860F(a)(2) of
      the
      Code, on the “net income from foreclosure property” of the Trust Fund as defined
      in Section 860G(c) of the Code, on any contribution to any of REMIC I, REMIC
      II,
      REMIC III, REMIC IV or REMIC V after the Startup Day pursuant to Section 860G(d)
      of the Code, or any other tax is imposed, including, without limitation, any
      federal, state or local tax or minimum tax imposed upon any of REMIC I, REMIC
      II, REMIC III, REMIC IV or REMIC V, and is not paid as otherwise provided for
      herein, such tax shall be paid (i) by the Master Servicer or the Securities
      Administrator, if any such tax arises out of or results from a breach by the
      Master Servicer or the Securities Administrator of any of its obligations under
      this Agreement, provided, however, in no event shall the Master Servicer or
      the
      Securities Administrator have any liability (1) for any action or omission
      that
      is taken in accordance with and compliance with the express terms of, or which
      is expressly permitted by the terms of, this Agreement, (2) for any losses
      other
      than arising out of a negligent performance by the Master Servicer or the
      Securities Administrator of its duties and obligations set forth herein, or
      (3)
      for any special or consequential damages to Certificateholders (in addition
      to
      payment of principal and interest on the Certificates), (ii) by any party hereto
      (other than the Master Servicer or the Securities Administrator) to the extent
      any such tax arises out of or results from a breach by such other party of
      any
      of its obligations under this Agreement or (iii) in all other cases, or in
      the
      event that any liable party hereto fails to honor its obligations under the
      preceding clauses (i) or (ii), first, with amounts otherwise to be distributed
      to the Class R Certificateholders (pro rata), and second, with amounts otherwise
      to be distributed to the Holders of the following other Certificates in the
      following order of priority: first, to the Class B-4 Certificates, second,
      to
      the Class B-3 Certificates, third, to the Class B-2 Certificates, fourth, to
      the
      Class B-1 Certificates, fifth, to the Class M-6 Certificates, sixth, to the
      Class M-5 Certificates, seventh, to the Class M-4 Certificates, eighth, to
      the
      Class M-3 Certificates, ninth, to the Class M-2 Certificates, tenth, to the
      Class M-1 Certificates, and eleventh, to the Class A Certificates.
      Notwithstanding anything to the contrary contained herein, to the extent that
      any taxes described in the preceding sentence are payable by the Holder of
      any
      such Certificates, the Securities Administrator is hereby authorized to retain
      on any Distribution Date from the Holders of the Class R Certificates (and,
      if
      necessary, second, from the Holders of the other relevant Certificates in the
      priority specified in the preceding sentence), funds otherwise distributable
      to
      such Holders in an amount sufficient to pay such taxes. The Securities
      Administrator shall include in its Monthly Statement amounts allocated to the
      relevant Certificates, taking into account the priorities described in the
      second preceding sentence. The Securities Administrator shall promptly notify
      in
      writing the party liable for any such tax of the amount thereof and the due
      date
      for the payment thereof.

     

    The
      Trustee, the Master Servicer and the Securities Administrator each agree that,
      in the event it should obtain any information necessary for the other party
      to
      perform its obligations pursuant to this Section 10.12, it will promptly notify
      and provide such information to such other party.

     

    Notwithstanding
      the foregoing, with respect to the preparation and filing of tax returns in
      the
      event that the right to receive payments in respect of Basis Risk Shortfall
      Carry Forward Amounts could be treated as a partnership among the Holders of
      the
      Class A, Class M, Class B and Class C Certificates, the Securities Administrator
      shall not be required to prepare and file partnership tax returns on behalf
      of
      the Trust Fund or portion thereof unless it receives additional reasonable
      compensation for the preparation of such filings and written notification from
      either an officer or tax counsel for the Depositor recognizing the creation
      of a
      partnership for federal income tax purposes.

     

    Notwithstanding
      any other provision of this Agreement, the Securities Administrator shall comply
      with all federal withholding requirements respecting payments to
      Certificateholders of interest or original issue discount that the Securities
      Administrator reasonably believes are applicable under the Code. The consent
      of
      Certificateholders shall not be required for such withholding. In the event
      the
      Securities Administrator does withhold any amount from interest or original
      issue discount payments or advances thereof to any Certificateholder pursuant
      to
      federal withholding requirements, the Securities Administrator shall indicate
      the amount withheld to such Certificateholders.

     

    Section
      10.13  REMIC-Related
      Covenants.

     

    For
      as
      long as each REMIC shall exist, the Trustee and the Securities Administrator
      shall act in accordance herewith to assure continuing treatment of such REMIC
      as
      a REMIC, and the Trustee and the Securities Administrator shall comply with
      any
      directions of the Seller, the Company, the Servicer or the Master Servicer
      to
      assure such continuing treatment. In furtherance, but not in limitation, of
      the
      foregoing, neither the Trustee nor the Securities Administrator shall (a) sell
      or permit the sale of all or any portion of the Mortgage Loans or of any
      investment of deposits in an Account unless such sale is as a result of a
      repurchase of the Mortgage Loans pursuant to this Agreement or the Trustee
      and
      the Securities Administrator has received a REMIC Opinion addressed to the
      Securities Administrator and the Trustee prepared at the expense of the Trust
      Fund; (b) other than with respect to a substitution pursuant to the Mortgage
      Loan Purchase Agreement or Section 2.03 of this Agreement, as applicable, accept
      any contribution to any REMIC after the Startup Day without receipt of a REMIC
      Opinion; or (c) acquire any assets for any REMIC other than any REO Property
      after the Startup Day without receipt of a REMIC Opinion.

     

    ARTICLE
      XI

     

    TERMINATION

     

    Section
      11.01  Termination
      upon Liquidation or Repurchase of all Mortgage Loans. 

     

    Subject
      to Section 11.03, the obligations and responsibilities of the Depositor, the
      Master Servicer, the Securities Administrator, the Seller and the Trustee
      created hereby with respect to the Trust Fund shall terminate upon the earlier
      of (a) the exercise by the Majority Class C Certificateholder of its right
      to
      purchase all of the Mortgage Loans (and REO Properties) remaining in the Trust
      Fund at a price (the “Mortgage Loan Purchase Price”) equal to the sum of (i)
      100% of the Stated Principal Balance of each Mortgage Loan (other than in
      respect of REO Property), (ii) accrued interest thereon at the applicable
      Mortgage Rate to, but not including, the first day of the month of such
      purchase, (iii) the appraised value of any REO Property in the Trust Fund (up
      to
      the Stated Principal Balance of the related Mortgage Loan), such appraisal
      to be
      conducted by an appraiser mutually agreed upon by the related servicer and
      the
      Trustee and (iv) unreimbursed out-of pocket costs of the Company, the Servicers
      or the Master Servicer, including unreimbursed Servicing Advances and the
      principal portion of any unreimbursed Advances made on the Mortgage Loans prior
      to the exercise of such repurchase right (v) any unreimbursed costs and expenses
      of the Trustee and the Securities Administrator payable pursuant to Section
      10.05 or of the Custodian pursuant to the Custodial Agreement and (vi)
any
      Swap
      Termination Payment (which shall include any Net Swap Payment payable by the
      Trust Fund for the final Distribution Date) payable to the Swap Provider which
      remains unpaid or which is due to the exercise of such option (the “Swap
      Optional Termination Payment”) and
      (b)
      the later of (i) the maturity or other liquidation (or any Advance with respect
      thereto) of the last Mortgage Loan remaining in the Trust Fund and the
      disposition of all REO Property and (ii) the distribution to Certificateholders
      of all amounts required to be distributed to them pursuant to this Agreement.
      In
      no
      event shall the Trust Fund created hereby continue beyond the earlier of (i)
      the
      expiration of 21 years from the death of the last survivor of the descendants
      of
      Joseph P. Kennedy, the late Ambassador of the United States to the Court of
      St.
      James, living on the date hereof and (ii) the Latest Possible Maturity
      Date.

     

    The
      right
      to repurchase all Mortgage Loans and REO Properties by the Majority Class C
      Certificateholder pursuant to clause (a) in the preceding paragraph shall be
      conditioned upon the Stated Principal Balance of all of the Mortgage Loans
      in
      the Trust Fund, at the time of any such repurchase, aggregating 20% or less
      of
      the aggregate Cut-off Date Principal Balance of all of the Mortgage Loans.
      If
      the Majority Class C Certificateholder elects to terminate the Trust Fund
      pursuant to this Section 11.01, at least 20 days prior to the date notice is
      to
      be mailed to the Certificateholders, the Majority Class C Certificateholder
      shall notify the Depositor, the Master Servicer, the Securities Administrator,
      the Trustee and the Swap Provider of the date the Majority Class C
      Certificateholder intends to terminate the Trust Fund. The Master Servicer
      shall
      remit the related Mortgage Loan Purchase Price to the Securities Administrator
      on the Business Day prior to the Distribution Date for such Optional Termination
      by the Majority Class C Certificateholder, as applicable. 

     

    Only
      an
      amount equal to the Mortgage Loan Purchase Price less any Swap Optional
      Termination Payment shall be made available for distribution to the Regular
      Certificates. Any Swap Optional Termination Payment paid as part of the Mortgage
      Loan Purchase Price and deposited into the Distribution Account shall be
      withdrawn by the Securities Administrator from the Distribution Account and
      remitted to the Supplemental Interest Trust to be paid in accordance with
      Section 4.14(c). The Swap Optional Termination Payment shall not be part of
      any
      REMIC and shall not be paid into any account which is part of any REMIC.

     

    Notwithstanding
      the foregoing, the provisions of Section 8.03 hereof shall survive the
      termination of this Agreement.

     

    Section
      11.02  Final
      Distribution on the Certificates. 

     

    (i) If
      on any
      Determination Date, (i) the Master Servicer determines that there are no related
      Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
      than the funds in the Master Servicer Collection Account, the Master Servicer
      shall direct the Securities Administrator to send a final distribution notice
      promptly to each related Certificateholder or (ii) the Securities Administrator
      determines that a Class of Certificates shall be retired after a final
      distribution on such Class, the Securities Administrator shall notify the
      related Certificateholders within five (5) Business Days after such
      Determination Date that the final distribution in retirement of such Class
      of
      Certificates is scheduled to be made on the immediately following Distribution
      Date. Any final distribution made pursuant to the immediately preceding sentence
      shall be made only upon presentation and surrender of the related Certificates
      at the Corporate Office of the Securities Administrator. 

     

    (ii) Notice
      of
      any termination of the Trust Fund, specifying the Distribution Date on which
      related Certificateholders may surrender their Certificates for payment of
      the
      final distribution and cancellation, shall be given promptly by the Securities
      Administrator by letter to Certificateholders mailed not later than two Business
      Days after the Determination Date in the month of such final distribution.
      Any
      such notice shall specify (a) the Distribution Date upon which final
      distribution on the Certificates shall be made upon presentation and surrender
      of Certificates at the office therein designated, (b) the amount of such final
      distribution, (c) the location of the office or agency at which such
      presentation and surrender must be made and (d) that the Record Date otherwise
      applicable to such Distribution Date is not applicable, distributions being
      made
      only upon presentation and surrender of the Certificates at the office therein
      specified. The Securities Administrator will give such notice to each Rating
      Agency at the time such notice is given to Certificateholders.

     

    (iii) In
      the
      event such notice is given, the Master Servicer shall cause all funds in the
      Master Servicer Collection Account to be remitted to the Securities
      Administrator for deposit in the Distribution Account on the second Business
      Day
      prior to the applicable Distribution Date in an amount equal to the final
      distribution in respect of the Certificates. Upon such final deposit with
      respect to the Trust Fund and the receipt by the Custodian of a Request for
      Release therefor, the Custodian shall promptly release to the Master Servicer,
      as applicable the Mortgage Files for the Mortgage Loans and the Trustee shall
      execute and deliver any documents prepared and delivered to it which are
      necessary to transfer any REO Property.

     

    (iv) Upon
      presentation and surrender of the Certificates, the Securities Administrator
      shall cause to be distributed to Certificateholders of each Class in accordance
      with the Remittance Report the amounts allocable to such Certificates held
      in
      the Distribution Account in the order and priority set forth in Section 6.04
      hereof on the final Distribution Date and in proportion to their respective
      Percentage Interests.

     

    (v) In
      the
      event that any affected Certificateholders shall not surrender Certificates
      for
      cancellation within six months after the date specified in the above mentioned
      written notice, the Securities Administrator shall give a second written notice
      to the remaining Certificateholders to surrender their Certificates for
      cancellation and receive the final distribution with respect thereto. If within
      six months after the second notice all the applicable Certificates shall not
      have been surrendered for cancellation, the Securities Administrator may take
      appropriate steps, or may appoint an agent to take appropriate steps, to contact
      the remaining Certificateholders concerning surrender of their Certificates,
      and
      the cost thereof shall be paid out of the funds and other assets that remain
      a
      part of the Trust Fund. If within one year after the second notice all related
      Certificates shall not have been surrendered for cancellation, the related
      Residual Certificateholders shall be entitled to all unclaimed funds and other
      assets of the Trust Fund that remain subject hereto.

     

    Section
      11.03  Additional
      Termination Requirements. 

     

    (a) Upon
      exercise by the Majority Class C Certificateholder of its purchase option as
      provided in Section 11.01, the Trust Fund shall be terminated in accordance
      with
      the following additional requirements, unless each of the Trustee and the
      Securities Administrator have been supplied with an Opinion of Counsel addressed
      to the Trustee and the Securities Administrator, at the expense of the Majority
      Class C Certificateholder, to the effect that the failure of the Trust Fund
      to
      comply with the requirements of this Section 11.03 will not (i) result in the
      imposition of taxes on “prohibited transactions” of a REMIC, or (ii) cause a
      REMIC to fail to qualify as a REMIC at any time that any Certificates are
      outstanding:

     

    (1) The
      Majority Class C Certificateholder shall establish a 90-day liquidation period
      for REMIC I, REMIC II, REMIC III, REMIC IV and REMIC V and notify the Trustee
      and Securities Administrator thereof, and the Securities Administrator shall
      in
      turn specify the first day of such period in a statement attached to the tax
      returns for REMIC I, REMIC II, REMIC III, REMIC IV and REMIC V pursuant to
      Treasury Regulation Section 1.860F-1. The Majority Class C Certificateholder
      shall satisfy all the requirements of a qualified liquidation under Section
      860F
      of the Code and any regulations thereunder with respect to each REMIC related
      to
      the terminated Trust Fund, as evidenced by an Opinion of Counsel addressed
      to
      the Securities Administrator and the Trustee obtained at the expense of the
      Majority Class C Certificateholder;

     

    (2) During
      such 90-day liquidation period, and at or prior to the time of making the final
      payment on the Certificates, the Securities Administrator on behalf of the
      Trustee shall sell all of the assets of REMIC I for cash; and

     

    (3) At
      the
      time of the making of the final payment on the Certificates, the Securities
      Administrator shall distribute or credit, or cause to be distributed or
      credited, to the Holders of the Residual Certificates all cash on hand (other
      than cash retained to meet claims), and REMIC I shall terminate at that
      time.

     

    (b) By
      their
      acceptance of the Certificates, the Holders thereof hereby authorize the
      adoption of a 90-day liquidation period and plan of complete liquidation for
      the
      each related REMIC, which authorization shall be binding upon all successor
      Certificateholders.

     

    (c) The
      Securities Administrator, as agent for each REMIC, hereby agrees to adopt and
      sign such a plan of complete liquidation meeting the requirements for a
      qualified liquidation under Section 860F of the Code and any regulations
      thereunder upon the written request of the Majority Class C Certificateholder
      and the receipt of the Opinion of Counsel referred to in Section 11.03(a)(1),
      and to take such other action in connection therewith as may be reasonably
      requested by the Majority Class C Certificateholder.

     

    

    

     

    ARTICLE
      XII

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      12.01  Amendment.

     

    This
      Agreement may be amended from time to time by parties hereto without the consent
      of any of the Certificateholders to cure any ambiguity, to correct or supplement
      any provisions herein (including to give effect to the expectations of
      investors), to
      comply
      with any changes in the Code, to revise any provisions to reflect the
      obligations of the parties to this Agreement as they relate to Regulation
      AB,
      to
      change the manner in which the Master Servicer Collection Account maintained
      by
      the Master Servicer or the Protected Account maintained by the Company is
      maintained or to make such other provisions with respect to matters or questions
      arising under this Agreement as shall not be inconsistent with any other
      provisions herein if such action shall not, as evidenced by an Opinion of
      Counsel addressed to the Trustee (which opinion shall be an expense of the
      party
      requesting such opinion but in any case shall not be an expense of the Trustee),
      adversely affect in any material respect the interests of any Certificateholder;
      provided that any such amendment shall be deemed not to adversely affect in
      any
      material respect the interests of the Certificateholders and no such Opinion
      of
      Counsel shall be required if the Person requesting such amendment obtains a
      letter from each
      Rating
      Agency
      stating
      that such amendment would not result in the downgrading or withdrawal of the
      respective ratings then assigned to the Certificates.

     

    Notwithstanding
      the foregoing, without the consent of the Certificateholders, the parties hereto
      may at any time and from time to time amend this Agreement to modify, eliminate
      or add to any of its provisions to such extent as shall be necessary or
      appropriate to maintain the qualification of any of REMIC
      I,
      REMIC II, REMIC III, REMIC IV or REMIC V as
      a
      REMIC under the Code or to avoid or minimize the risk of the imposition of
      any
      tax on any of REMIC
      I,
      REMIC II, REMIC III, REMIC IV or REMIC V pursuant
      to the Code that would be a claim against any of REMIC
      I,
      REMIC II, REMIC III, REMIC IV or REMIC V
      at any
      time prior to the final redemption of the Certificates, provided that the
      Trustee, the Securities Administrator have been provided an Opinion of Counsel
      addressed to the Trustee and the Securities Administrator, which opinion shall
      be an expense of the party requesting such opinion but in any case shall not
      be
      an expense of the Trustee, the Securities Administrator or the Trust Fund,
      to
      the effect that such action is necessary or appropriate to maintain such
      qualification or to avoid or minimize the risk of the imposition of such a
      tax.

     

    This
      Agreement may also be amended from time to time by the parties hereto with
      the
consent
      of Holders of the Certificates evidencing over 50% of the aggregate Certificate
      Principal Balance of the Certificates, or with the consent of the holders of
      each Class of Certificates affected thereby evidencing over 50% of the aggregate
      Certificate Principal Balance of that Class, as applicable, for
      the
      purpose of adding any provisions to or changing in any manner or eliminating
      any
      of the provisions of this Agreement or of modifying in any manner the rights
      of
      the Holders of Certificates; provided that no such amendment shall (i) reduce
      in
      any manner the amount of, or delay the timing of, payments required to be
      distributed on any Certificate without the consent of the Holder of such
      Certificate, (ii) cause any of REMIC
      I,
      REMIC II, REMIC III, REMIC IV or REMIC V to
      cease
      to qualify as a REMIC or (iii) reduce the aforesaid percentages of Certificates
      of each Class the Holders of which are required to consent to any such amendment
      without the consent of the Holders of all Certificates of such Class then
      outstanding.

     

    Notwithstanding
      any contrary provision of this Agreement, the Trustee shall not consent to
      any
      amendment to this Agreement unless it shall have first received an Opinion
      of
      Counsel addressed to the Trustee and the Securities Administrator, which opinion
      shall be an expense of the party requesting such amendment but in any case
      shall
      not be an expense of the Trustee or the Securities Administrator, to the effect
      that such amendment will not (other than an amendment pursuant to clause (ii)
      of, and in accordance with, the preceding paragraph) cause the imposition of
      any
      tax on any of REMIC I, REMIC II, REMIC III, REMIC IV or REMIC V or the
      Certificateholders or cause any of REMIC I, REMIC II, REMIC III, REMIC IV or
      REMIC V to cease to qualify as a REMIC at any time that any Certificates are
      outstanding. Further, nothing in this Agreement shall require the Trustee to
      enter into an amendment without receiving an Opinion of Counsel, satisfactory
      to
      the Trustee (i) that such amendment is permitted and is not prohibited by this
      Agreement and (ii) that all requirements for amending this Agreement (including
      any consent of the applicable Certificateholders) have been complied
      with.

     

    Notwithstanding
      any of the other provisions of this Section 12.01, none of the Depositor, the
      Master Servicer, the Company, the Securities Administrator or the Trustee shall
      enter into any amendment to Section 4.14 or Section 6.04(a)(3)(F) of this
      Agreement without the prior written consent of the Swap Provider, which consent
      shall not be unreasonably withheld, and shall not enter into an amendment that
      has a materially adverse effect on the Swap Provider without the prior written
      consent of the Swap Provider, which consent shall not be unreasonably
      withheld.

    

    Promptly
      after the execution of any amendment to this Agreement requiring the consent
      of
      Certificateholders, the Securities Administrator shall furnish written
      notification of the substance of such amendment to each Certificateholder,
      the
      Swap Provider and each
      Rating
      Agency.

     

    It
      shall
      not be necessary for the consent of Certificateholders under this Section to
      approve the particular form of any proposed amendment, but it shall be
      sufficient if such consent shall approve the substance thereof. The manner
      of
      obtaining such consents and of evidencing the authorization of the execution
      thereof by Certificateholders shall be subject to such reasonable regulations
      as
      the Trustee may prescribe.

     

    Section
      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 of the counties
      or other comparable jurisdictions in which any or all of the Mortgaged
      Properties are situated, and in any other appropriate public recording office
      or
      elsewhere. The Master Servicer shall effect such recordation at the Trust’s
      expense upon the request in writing of a Certificateholder, but only if such
      direction is accompanied by an Opinion of Counsel (provided at the expense
      of
      the Certificateholder requesting recordation) to the effect that such
      recordation would materially and beneficially affect the interests of the
      Certificateholders or is required by law.

     

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts shall constitute but one and the same
      instrument.

     

    Section
      12.03  Governing
      Law. 

     

    THIS
      AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
      HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
      LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF (OTHER THAN
      SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAWS).

     

    Section
      12.04  Intention
      of Parties. 

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Notes,
      Mortgages, assignments of Mortgages, title insurance policies and any
      modifications, extensions and/or assumption agreements and private mortgage
      insurance policies relating to the Mortgage Loans by the Seller to the
      Depositor, and by the Depositor to the Trustee be, and be construed as, an
      absolute sale thereof to the Depositor or the Trustee, as applicable. It is,
      further, not the intention of the parties that such conveyance be deemed a
      pledge thereof by each Seller to the Depositor, or by the Depositor to the
      Trustee. However, in the event that, notwithstanding the intent of the parties,
      such assets are held to be the property of the Seller or the Depositor, as
      applicable, or if for any other reason the Mortgage Loan Purchase Agreement
      or
      this Agreement is held or deemed to create a security interest in such assets,
      then (i) the Mortgage Loan Purchase Agreement and this Agreement shall each
      be
      deemed to be a security agreement within the meaning of the Uniform Commercial
      Code of the State of New York and (ii) the conveyance provided for in the
      Mortgage Loan Purchase Agreement from the Seller to the Depositor, and the
      conveyance provided for in this Agreement from the Depositor to the Trustee,
      shall be deemed to be an assignment and a grant by the Seller or the Depositor,
      as applicable, for the benefit of the Certificateholders of a security interest
      in all of the assets that constitute the Trust Fund, whether now owned or
      hereafter acquired.

     

    The
      Depositor for the benefit of the Certificateholders shall, to the extent
      consistent with this Agreement, take such actions as may be necessary to ensure
      that, if this Agreement were deemed to create a security interest in the assets
      of the Trust Fund, such security interest would be deemed to be a perfected
      security interest of first priority under applicable law and will be maintained
      as such throughout the term of the Agreement.

     

    Section
      12.05  Notices. 

     

    (a)  The
      Securities Administrator shall use
      its
      best efforts to
      promptly
      provide notice to each Rating Agency and the Swap Provider 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;

     

    (iii)  The
      resignation or termination of the Master Servicer, the Securities Administrator
      or the Trustee and the appointment of any successor;

     

    (iv)  The
      repurchase or substitution of Mortgage Loans pursuant to Sections 2.02, 2.03,
      3.05 and 11.01; and

     

    (v)  The
      final
      payment to Certificateholders.

     

    (b)  All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given when delivered at or mailed by registered mail,
      return receipt requested, postage prepaid, or by recognized overnight courier,
      or by facsimile transmission to a number provided by the appropriate party
      if
      receipt of such transmission is confirmed to (i) in the case of the Depositor,
      Bear Stearns Asset Backed Securities I LLC, 383 Madison Avenue, New York, New
      York 10179, Attention: Chief Counsel and with respect to Regulation AB
      notifications to the Depositor at regabnotifications@bear.com; (ii) in the
      case
      of EMC or the Company, EMC Mortgage Corporation, 2780 Lake Vista Drive,
      Lewisville, Texas 75067 (Facsimile: (972) 444-2880), attention: President or
      General Counsel or such other address as may be hereafter furnished to the
      other
      parties hereto by the Master Servicer in writing; (iii) in the case of the
      Trustee, at its Corporate Trust Office or such other address as the Trustee
      may
      hereafter furnish to the other parties hereto, (iv) in the case of the Master
      Servicer or the Securities Administrator, 135 South LaSalle Street, Suite 1625,
      Chicago, Illinois 60603, Attention: Global Securities and Trust Services
      Group-SACO 2006-9 or such other address as may be hereafter furnished to the
      other parties hereto by the Securities Administrator in writing, (v) in the
      case
      of Moody’s, 99 Church Street, New York, New York 10007, Attention: Home Equity
      Monitoring, or such other address as may be hereafter furnished to the other
      parties hereto by Moody’s in writing, (vi) in the case of Standard & Poor’s,
      a division of The McGraw-Hill Companies, Inc., 55 Water Street, 41st Floor,
      New
      York, New York 10041 or such other address as may be hereafter furnished to
      the
      other parties hereto by Standard & Poor’s in writing and (vii) in the case
      of the Swap Provider, Wachovia Bank, N.A., 301
      South
      College Street, DC-8, Charlotte, NC 28202-0600, Attention: Bruce M.
      Young.
      Any
      notice delivered to EMC, the Master Servicer, the Securities Administrator
      or
      the Trustee under this Agreement shall be effective only upon receipt. Any
      notice required or permitted to be mailed to a Certificateholder, unless
      otherwise provided herein, shall be given by first-class mail, postage prepaid,
      at the address of such Certificateholder as shown in the Certificate Register;
      any notice so mailed within the time prescribed in this Agreement shall be
      conclusively presumed to have been duly given, whether or not the
      Certificateholder receives such notice.

     

    Section
      12.06  Severability
      of Provisions. 

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Certificates or the rights of the Holders thereof.

     

    Section
      12.07  Assignment. 

     

    Notwithstanding
      anything to the contrary contained herein, except as provided pursuant to
      Section 8.02, this Agreement may not be assigned by the Master Servicer,
EMC
      or the
      Depositor.

     

    Section
      12.08  Limitation
      on Rights of Certificateholders. 

     

    The
      death
      or incapacity of any Certificateholder shall not operate to terminate this
      Agreement or the Trust Fund, nor entitle such Certificateholder’s legal
      representative or heirs to claim an accounting or to take any action or commence
      any proceeding in any court for a petition or winding up of the Trust Fund,
      or
      otherwise affect the rights, obligations and liabilities of the parties hereto
      or any of them.

     

    No
      Certificateholder shall have any right to vote (except as provided herein)
      or in
      any manner otherwise control the operation and management of the Trust Fund,
      or
      the obligations of the parties hereto, nor shall anything herein set forth
      or
      contained in the terms of the Certificates be construed so as to constitute
      the
      Certificateholders from time to time as partners or members of an association;
      nor shall any Certificateholder be under any liability to any third party by
      reason of any action taken by the parties to this Agreement pursuant to any
      provision hereof.

     

    No
      Certificateholder shall have any right by virtue or by availing itself of any
      provisions of this Agreement to institute any suit, action or proceeding in
      equity or at law upon or under or with respect to this Agreement, unless such
      Holder previously shall have given to the Trustee a written notice of an Event
      of Default and of the continuance thereof, as hereinbefore provided, the Holders
      of Certificates evidencing not less than 25% of the Voting Rights evidenced
      by
      the Certificates shall also have made written request to the Trustee to
      institute such action, suit or proceeding in its own name as Trustee hereunder
      and shall have offered to the Trustee such reasonable indemnity as it may
      require against the costs, expenses, and liabilities to be incurred therein
      or
      thereby, and the Trustee for 60 days after its receipt of such notice, request
      and offer of indemnity shall have neglected or refused to institute any such
      action, suit or proceeding; it being understood and intended, and being
      expressly covenanted by each Certificateholder with every other
      Certificateholder and the Trustee, that no one or more Holders of Certificates
      shall have any right in any manner whatever by virtue or by availing itself
      or
      themselves of any provisions of this Agreement to affect, disturb or prejudice
      the rights of the Holders of any other of the Certificates, or to obtain or
      seek
      to obtain priority over or preference to any other such Holder or to enforce
      any
      right under this Agreement, except in the manner herein provided and for the
      common benefit of all Certificateholders. For the protection and enforcement
      of
      the provisions of this Section 12.08, each and every Certificateholder and
      the
      Trustee shall be entitled to such relief as can be given either at law or in
      equity.

     

    Section
      12.09  Inspection
      and Audit Rights. 

     

    The
      Master Servicer agrees that, on reasonable prior notice, it will permit any
      representative of the Depositor or the Trustee during the Master Servicer’s
      normal business hours, to examine all the books of account, records, reports
      and
      other papers of the Master Servicer relating to the Mortgage Loans, to make
      copies and extracts therefrom, to cause such books to be audited by independent
      certified public accountants selected by the Depositor and the Trustee and
      to
      discuss its affairs, finances and accounts relating to such Mortgage Loans
      with
      its officers, employees and independent public accountants (and by this
      provision the Master Servicer hereby authorizes such accountants to discuss
      with
      such representative such affairs, finances and accounts), all at such reasonable
      times and as often as may be reasonably requested. Any out-of-pocket expense
      incident to the exercise by the Depositor or the Trustee of any right under
      this
      Section 12.09 shall be borne by the party requesting such inspection, subject
      to
      such party’s right to reimbursement hereunder (in the case of the Trustee,
      pursuant to Section 10.05 hereof.

     

    Section
      12.10  Certificates
      Nonassessable and Fully Paid. 

     

    It
      is the
      intention of the Depositor that Certificateholders shall not be personally
      liable for obligations of the Trust Fund, that the interests in the Trust Fund
      represented by the Certificates shall be nonassessable for any reason
      whatsoever, and that the Certificates, upon due authentication thereof by the
      Securities Administrator pursuant to this Agreement, are and shall be deemed
      fully paid.

     

    Section
      12.11  Third
      Party Rights. 

     

    The
      Swap
      Provider shall be an express third-party beneficiary of this Agreement to the
      extent of its express rights to receive any payments under this Agreement
or
      any
      other express rights of
      the
      Swap Provider explicitly
      stated in this Agreement,
      and
      shall have the right to enforce  such rights under this
      Agreement as if it were a party hereto. The Swap Administrator shall be an
      express third-party beneficiary of this Agreement to the extent of its express
      rights to receive any payments under this Agreement or
      any
      other express rights of
      the
      Swap Administrator explicitly
      stated in this Agreement,
      and
      shall have the right to enforce  such rights under this
      Agreement as if it were a party hereto.

    

    

     

    *
      *
      *

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, the Depositor, the Seller, the Company, the Master Servicer,
      the Securities Administrator and the Trustee have caused their names to be
      signed hereto by their respective officers thereunto duly authorized as of
      the
      day and year first above written.

     

    
      	 	 	 	 	 	 	 	
              BEAR
                STEARNS ASSET BACKED

              SECURITIES
                I LLC,

              as
                Depositor

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	
              /s/
                Joseph T. Jurkowski, Jr.

            
	 	 	 	 	 	 	 	
              Name:

            	
              Joseph
                T. Jurkowski, Jr.

            
	 	 	 	 	 	 	 	
              Title:

            	
              Vice
                President

            

    

    

     

    
      	 	 	 	 	 	 	 	
              EMC
                MORTGAGE CORPORATION,

              as
                Seller and Company

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	/s/
              William Glasgow, Jr.
	 	 	 	 	 	 	 	
              Name:

            	William
              Glasgow, Jr.    
	 	 	 	 	 	 	 	
              Title:

            	Executive
              Vice President

    

    

     

    
      	 	 	 	 	 	 	 	
              LASALLE
                BANK NATIONAL

              ASSOCIATION,

              as
                Master Servicer and Securities Administrator

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	/s/
              Rita Lopez
	 	 	 	 	 	 	 	
              Name:

            	Rita
              Lopez    
	 	 	 	 	 	 	 	
              Title:

            	Vice
              President

    

    

     

    
      	 	 	 	 	 	 	 	
              CITIBANK,
                N.A.,

              as
                Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	/s/
              John Hannon
	 	 	 	 	 	 	 	
              Name:

            	John
              Hannon    
	 	 	 	 	 	 	 	
              Title:

            	Assistant
              Vice President

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK

               

            	
              )

               

            

    

    

     

    On
      this
      30th
      day of
      August, 2006, before me, a notary public in and for said State, appeared Joseph
      T. Jurkowski, Jr., personally known to me on the basis of satisfactory evidence
      to be an authorized representative of Bear Stearns Asset Backed Securities
      I
      LLC, one of the companies that executed the within instrument, and also known
      to
      me to be the person who executed it on behalf of such limited liability company
      and acknowledged to me that such limited liability company 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

            

    

    

     

    [Notarial
      Seal]

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    
      	
              STATE
                OF TEXAS

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF DALLAS

               

            	
              )

               

            

    

    

     

    On
      this
      30th
      day of
      August, 2006, before me, a notary public in and for said State, appeared
      _______________________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of EMC Mortgage Corporation, one
      of
      the corporations that executed the within instrument, and also known to me
      to be
      the person who executed it on behalf of such 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

            

    

    

     

    [Notarial
      Seal]

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

    
      	
              STATE
                OF ILLINOIS

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF

               

            	
              )

               

            

    

    

     

    On
      this
      30th
      day of
      August, 2006, before me, a notary public in and for said State, appeared
      ___________, personally known to me on the basis of satisfactory evidence to
      be
      a(n) __________________ of LaSalle Bank National Association that executed
      the
      within instrument, and also known to me to be the person who executed it on
      behalf of such national banking association, and acknowledged to me that such
      national banking association executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    

    
      	 	 
	 	
              Notary
                Public

            

    

    

     

    [Notarial
      Seal]

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK

               

            	
              )

               

            

    

    

     

    On
      this
      30th
      day of
      August, 2006, before me, a notary public in and for said State, appeared
      ________________, personally known to me on the basis of satisfactory evidence
      to be an authorized representative of Citibank, N.A. that executed the within
      instrument, and also known to me to be the person who executed it on behalf
      of
      such national banking association, and acknowledged to me that such national
      banking association executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    

    
      	 	 
	 	
              Notary
                Public

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      EXHIBIT
        A-1

       

      FORM
        OF CLASS A CERTIFICATES

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR
        INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE
        DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE
        CODE OF
        1986 (THE “CODE”).

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
        PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY,
        FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL
        BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN
        BELOW.
        ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL
        BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED
        HEREIN.

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
        OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
        TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

       

      PRIOR
        TO THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, ANY PERSON ACQUIRING
        A
        CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS IN SECTION 7.02(h)
        OF THE POOLING AND SERVICING AGREEMENT

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      
        	
                Certificate
                  No. 1

              	
                Adjustable
                  Rate

              
	 	 
	
                Class
                  A

              	 
	 	 
	
                Date
                  of Pooling and Servicing Agreement

                and
                  Cut-off Date:

                August
                  1, 2006

              	
                Aggregate
                  Initial Certificate Principal

                Balance
                  of this Certificate as of the Cut-off

                Date:

                $[__________]

              
	 	 
	
                First
                  Distribution Date:

                September
                  25, 2006

              	
                Initial
                  Certificate Principal Balance of this

                Certificate
                  as of the Cut-off Date:

                $[__________]

              
	 	 
	
                Master
                  Servicer and Securities Administrator:

                LaSalle
                  Bank National Association

              	
                CUSIP:
                  [__________]

              
	 	 
	
                Last
                  Scheduled Distribution Date:

                September
                  25, 2036

              	 

      

      

       

      SACO
        I
        TRUST 2006-9

      MORTGAGE-BACKED
        CERTIFICATE

      SERIES
        2006-9

       

      evidencing
        a Percentage Interest in the distributions allocable to the Class A Certificates
        with respect to a Trust Fund consisting primarily of a pool of certain fixed
        rate, junior lien one- to four-family fixed and adjustable interest rate
        mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES I LLC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Bear Stearns Asset Backed Securities
        I
        LLC, the Master Servicer, the Securities Administrator or the Trustee referred
        to below or any of their affiliates or any other person. Neither this
        Certificate nor the underlying Mortgage Loans are guaranteed or insured by
        any
        governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
        Master
        Servicer, the Securities Administrator or the Trustee or any of their affiliates
        or any other person. None of Bear Stearns Asset Backed Securities I LLC,
        the
        Master Servicer or any of their affiliates will have any obligation with
        respect
        to any certificate or other obligation secured by or payable from payments
        on
        the Certificates.

       

      This
        certifies that Cede & Co. is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional, closed-end, second lien, fixed and adjustable
        rate
        mortgage loans secured by one- to four- family residences (collectively,
        the
“Mortgage Loans”) sold by Bear Stearns Asset Backed Securities I LLC (“BSABS
        I”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS
        I. LaSalle Bank National Association will act as master servicer of the Mortgage
        Loans (in that capacity, the “Master Servicer,” which term includes any
        successors thereto under the Agreement referred to below). The Trust Fund
        was
        created pursuant to the Pooling and Servicing Agreement, dated as of the
        Cut-off
        Date specified above (the “Agreement”), among BSABS I, as depositor (the
“Depositor”), EMC Mortgage Corporation as seller and company, LaSalle Bank
        National Association, as Master Servicer and securities administrator (the
        “Securities Administrator”) and Citibank, N.A., as trustee (the “Trustee”), a
        summary of certain of the pertinent provisions of which is set forth hereafter.
        To the extent not defined herein, capitalized terms used herein shall have
        the
        meaning ascribed to them in the Agreement. This Certificate is issued under
        and
        is subject to the terms, provisions and conditions of the Agreement, to which
        Agreement the Holder of this Certificate by virtue of its acceptance hereof
        assents and by which such Holder is bound.

       

      Interest
        on this Certificate will accrue from and including the 25th day of the calendar
        month preceding the month in which a Distribution Date (as hereinafter defined)
        occurs to and including the 24th day of the calendar month in which that
        Distribution Date occurs on the Certificate Principal Balance hereof at a
        per
        annum rate equal to the Pass-Through Rate set forth above. The Securities
        Administrator will distribute on the 25th day of each month, or, if such
        25th
        day is not a Business Day, the immediately following Business Day (each,
        a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered at the close of
        business on the Business Day immediately preceding such Distribution Date,
        an
        amount equal to the product of the Percentage Interest evidenced by this
        Certificate and the amount (of interest and principal, if any) required to
        be
        distributed to the Holders of Certificates of the same Class as this
        Certificate. The Assumed Final Distribution Date is the Distribution Date
        in the
        month following the latest scheduled maturity date of any Mortgage Loan and
        is
        not likely to be the date on which the Certificate Principal Balance of this
        Class of Certificates will be reduced to zero.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. The initial Certificate Principal Balance of this
        Certificate is set forth above. The Certificate Principal Balance hereof
        will be
        reduced to the extent of distributions allocable to principal hereon and
        any
        Realized Losses allocable hereto.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that neither the
        Trustee
        nor the Securities Administrator is liable to the Certificateholders for
        any
        amount payable under this Certificate or the Agreement or, except as expressly
        provided in the Agreement, subject to any liability under the
        Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator and the Trustee.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Certificates
        evidencing over 50% of the aggregate Certificate Principal Balance of the
        Certificates, or with the consent of the Holders of each Class of Certificates
        affected thereby evidencing over 50% of the aggregate Certificate Principal
        Balance of that class, as applicable. Any such consent by the Holder of this
        Certificate shall be conclusive and binding on such Holder and upon all future
        Holders of this Certificate and of any Certificate issued upon the transfer
        hereof or in lieu hereof whether or not notation of such consent is made
        upon
        this Certificate. The Agreement also permits the amendment thereof, in certain
        limited circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      Prior
        to
        the termination of the Supplemental Interest Trust, any transferee of this
        Certificate shall be deemed to make the representations in Section 7.02(h)
        of
        the Agreement.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        and in
        the Classes and denominations specified in the Agreement. As provided in
        the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Securities Administrator,
        the
        Trustee and any agent of any of them may treat the Person in whose name this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund in accordance with the
        terms
        of the Agreement. Such optional repurchase may be made only on or after the
        first Distribution Date on which the aggregate Stated Principal Balance of
        the
        Mortgage Loans is less than or equal to a certain percentage of the aggregate
        Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as
        set
        forth in the Agreement. The exercise of such right will effect the early
        retirement of the Certificates. In no event, however, will the Trust Fund
        created by the Agreement continue beyond the earlier of (i) the expiration
        of 21
        years after the death of certain persons identified in the Agreement and
        (ii)
        the Latest Possible Maturity Date (as defined in the Agreement).

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:
                  ____________, 2006

              	 	
                LASALLE
                  BANK NATIONAL ASSOCIATION,
                  not in its individual capacity but
                  solely as Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class A Certificates referred to in the within-mentioned
        Agreement.

      

      
        	 	 	
                LASALLE
                  BANK NATIONAL ASSOCIATION,
                  Authorized signatory of LaSalle
                  Bank National Association , not in its individual
                  capacity but solely as Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

       

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 
	 

      

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      DISTRIBUTION
        INSTRUCTIONS

      

      
        	
                The
                  assignee should include the following for purposes of
                  distribution:

              
	 
	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        A-2

       

      Form
        of
        Class M-[1][2][3][4][5][6] Certificates

       

      THIS
        CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES
        [,]
        [THE CLASS M-1 CERTIFICATES] [,] [THE CLASS M-2 CERTIFICATES] [,] [THE CLASS
        M-3
        CERTIFICATES] [,] [THE CLASS M-4 CERTIFICATES] [,] [THE CLASS M-5 CERTIFICATES]
        [,] [AND] [THE CLASS M-6 CERTIFICATES] AS DESCRIBED IN THE AGREEMENT (AS
        DEFINED
        BELOW).

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR
        INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE
        DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE
        CODE OF
        1986 (THE “CODE”).

       

      EACH
        HOLDER OF A CERTIFICATE OR BENEFICIAL OWNERSHIP SHALL BE DEEMED TO HAVE MADE
        THE
        REPRESENTATIONS SET FORTH IN SECTION 7.02(h) OF THE POOLING AND SERVICING
        AGREEMENT.

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
        PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY,
        FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL
        BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN
        BELOW.
        ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL
        BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED
        HEREIN.

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
        OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
        TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

       

      

      
        	
                Certificate
                  No.1

              	
                Adjustable
                  Rate

              
	 	 
	
                Class
                  M-[1][2][3][4][5][6] Subordinate

              	 
	 	 
	
                Date
                  of Pooling and Servicing Agreement

                and
                  Cut-off Date:

                August
                  1, 2006

              	
                Aggregate
                  Initial Certificate Principal

                Balance
                  of this Certificate as of the Cut-off

                Date:

                $[__________]

              
	 	 
	
                First
                  Distribution Date:

                September
                  25, 2006

              	
                Initial
                  Certificate Principal Balance of this

                Certificate
                  as of the Cut-off Date:

                $[__________]

              
	 	 
	
                Master
                  Servicer and Securities Administrator:

                LaSalle
                  Bank National Association

              	
                CUSIP:
                  [__________]

              
	 	 
	
                Last
                  Scheduled Distribution Date:

                September
                  25, 2036

              	 
	 	 

      

      

       

      SACO
        I
        TRUST 2006-9

      MORTGAGE-BACKED
        CERTIFICATE

      SERIES
        2006-9

       

      evidencing
        a Percentage Interest in the distributions allocable to the Class
        M-[1][2][3][4][5][6] Certificates with respect to a Trust Fund consisting
        primarily of a pool of certain fixed rate, junior lien one- to four-family
        fixed
        and adjustable interest rate mortgage loans sold by BEAR STEARNS ASSET BACKED
        SECURITIES I LLC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Bear Stearns Asset Backed Securities
        I
        LLC, the Master Servicer, the Securities Administrator or the Trustee referred
        to below or any of their affiliates or any other person. Neither this
        Certificate nor the underlying Mortgage Loans are guaranteed or insured by
        any
        governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
        Master
        Servicer, the Securities Administrator or the Trustee or any of their affiliates
        or any other person. None of Bear Stearns Asset Backed Securities I LLC,
        the
        Master Servicer or any of their affiliates will have any obligation with
        respect
        to any certificate or other obligation secured by or payable from payments
        on
        the Certificates.

       

      This
        certifies that Cede & Co. is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional, closed-end, second lien, fixed and adjustable
        rate
        mortgage loans secured by one- to four- family residences (collectively,
        the
“Mortgage Loans”) sold by Bear Stearns Asset Backed Securities I LLC (“BSABS
        I”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS
        I. LaSalle Bank National Association will act as master servicer of the Mortgage
        Loans (in that capacity, the “Master Servicer,” which term includes any
        successors thereto under the Agreement referred to below). The Trust Fund
        was
        created pursuant to the Pooling and Servicing Agreement, dated as of the
        Cut-off
        Date specified above (the “Agreement”), among BSABS I, as depositor (the
“Depositor”), EMC Mortgage Corporation as seller and company, LaSalle Bank
        National Association, as Master Servicer and securities administrator (the
        “Securities Administrator”) and Citibank, N.A., as trustee (the “Trustee”), a
        summary of certain of the pertinent provisions of which is set forth hereafter.
        To the extent not defined herein, capitalized terms used herein shall have
        the
        meaning ascribed to them in the Agreement. This Certificate is issued under
        and
        is subject to the terms, provisions and conditions of the Agreement, to which
        Agreement the Holder of this Certificate by virtue of its acceptance hereof
        assents and by which such Holder is bound.

       

      Interest
        on this Certificate will accrue from and including the 25th day of the calendar
        month preceding the month in which a Distribution Date (as hereinafter defined)
        occurs to and including the 24th day of the calendar month in which that
        Distribution Date occurs on the Certificate Principal Balance hereof at a
        per
        annum rate equal to the Pass-Through Rate set forth above. The Securities
        Administrator will distribute on the 25th day of each month, or, if such
        25th
        day is not a Business Day, the immediately following Business Day (each,
        a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered at the close of
        business on the Business Day immediately preceding such Distribution Date,
        an
        amount equal to the product of the Percentage Interest evidenced by this
        Certificate and the amount (of interest and principal, if any) required to
        be
        distributed to the Holders of Certificates of the same Class as this
        Certificate. The Assumed Final Distribution Date is the Distribution Date
        in the
        month following the latest scheduled maturity date of any Mortgage Loan and
        is
        not likely to be the date on which the Certificate Principal Balance of this
        Class of Certificates will be reduced to zero.

       

      Each
        holder of a Certificate or beneficial ownership shall be deemed to have made
        the
        representations set forth in Section 7.02(h) of the Pooling and Servicing
        Agreement.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. The initial Certificate Principal Balance of this
        Certificate is set forth above. The Certificate Principal Balance hereof
        will be
        reduced to the extent of distributions allocable to principal hereon and
        any
        Realized Losses allocable hereto.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that neither the
        Trustee
        nor the Securities Administrator is liable to the Certificateholders for
        any
        amount payable under this Certificate or the Agreement or, except as expressly
        provided in the Agreement, subject to any liability under the
        Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator and the Trustee.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Certificates
        evidencing over 50% of the aggregate Certificate Principal Balance of the
        Certificates, or with the consent of the Holders of each Class of Certificates
        affected thereby evidencing over 50% of the aggregate Certificate Principal
        Balance of that class, as applicable. Any such consent by the Holder of this
        Certificate shall be conclusive and binding on such Holder and upon all future
        Holders of this Certificate and of any Certificate issued upon the transfer
        hereof or in lieu hereof whether or not notation of such consent is made
        upon
        this Certificate. The Agreement also permits the amendment thereof, in certain
        limited circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Securities Administrator,
        the
        Trustee and any agent of any of them may treat the Person in whose name this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund in accordance with the
        terms
        of the Agreement. Such optional repurchase may be made only on or after the
        first Distribution Date on which the aggregate Stated Principal Balance of
        the
        Mortgage Loans is less than or equal to a certain percentage of the aggregate
        Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as
        set
        forth in the Agreement. The exercise of such right will effect the early
        retirement of the Certificates. In no event, however, will the Trust Fund
        created by the Agreement continue beyond the earlier of (i) the expiration
        of 21
        years after the death of certain persons identified in the Agreement and
        (ii)
        the Latest Possible Maturity Date (as defined in the Agreement).

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:
                  ____________, 2006

              	 	
                LASALLE
                  BANK NATIONAL ASSOCIATION,
                  not in its individual capacity but
                  solely as Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class M-[1][2][3][4][5][6] Certificates referred to in the
        within-mentioned Agreement.

      
        	 	 	
                 

                LASALLE
                  BANK NATIONAL ASSOCIATION,
                  Authorized signatory of LaSalle
                  Bank National Association , not in its individual
                  capacity but solely as Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

       

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 
	 

      

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      DISTRIBUTION
        INSTRUCTIONS

      

      
        	
                The
                  assignee should include the following for purposes of
                  distribution:

              
	 
	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A-3

       

      

      FORM
        OF
        CLASS B-[1][2][3][4]
        CERTIFICATES

       

      THIS
        CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES,
        CLASS M CERTIFICATES [,] [AND] [CLASS B-2 CERTIFICATES] [,] [AND] [CLASS
        [,] B-3
        CERTIFICATES] AS DESCRIBED IN THE AGREEMENT (AS DEFINED
        BELOW).

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
        PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE THERETO. ACCORDINGLY,
        FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL
        BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN
        BELOW.
        ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL
        BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED
        HEREIN.

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR
        INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE
        DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE
        CODE OF
        1986, AS AMENDED (THE “CODE”).

       

      EACH
        HOLDER OF A CERTIFICATE OR BENEFICIAL OWNERSHIP SHALL BE DEEMED TO HAVE MADE
        THE
        REPRESENTATIONS SET FORTH IN SECTION 7.02(h) OF THE POOLING AND SERVICING
        AGREEMENT.

       

      [For
        Class B-4] [THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
        THE
        SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND
        MAY
        NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT
        AND
        LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION
        UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE
        WITH THE PROVISIONS OF SECTION 7.02(h) OF THE AGREEMENT.]

       

      [For
        Class B-4] [NOTWITHSTANDING THE PREVIOUS PARAGRAPH, A CERTIFICATION WILL
        NOT BE
        REQUIRED WITH RESPECT TO THE TRANSFER OF THIS CERTIFICATE TO A DEPOSITORY,
        OR
        FOR ANY SUBSEQUENT TRANSFER OF THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE
        IS A BOOK-ENTRY CERTIFICATE. ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED
        TO HAVE REPRESENTED BY VIRTUE OF ITS PURCHASE OR HOLDING OF THIS CERTIFICATE
        (OR
        INTEREST HEREIN) THAT SUCH TRANSFEREE IS A “QUALIFIED INSTITUTIONAL BUYER”
WITHIN THE MEANING OF RULE 144A UNDER THE 1933 ACT.]

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
        OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
        TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

       

      [For
        Class B-4] [THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY,
        OR
        ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH
        IS
        SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
        AS
        AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED,
        UNLESS THE TRANSFEREE CERTIFIES OR REPRESENTS THAT THE PROPOSED TRANSFER
        AND
        HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT AND OPERATION OF THE
        TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY PROHIBITED TRANSACTION WHICH
        IS
        NOT COVERED UNDER AN INDIVIDUAL OR CLASS PROHIBITED TRANSACTION EXEMPTION,
        INCLUDING, BUT NOT LIMITED TO, PROHIBITED TRANSACTION EXEMPTION (“PTE”) 84-14,
        PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23 AND (II) WILL NOT GIVE RISE TO
        ANY
        DIFFERENT OR ADDITIONAL OBLIGATIONS ON THE PART OF THE DEPOSITOR, THE MASTER
        SERVICER, THE SECURITIES ADMINISTRATOR OR THE TRUSTEE, WHICH WILL BE DEEMED
        REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE
        OR
        UNLESS THE OPINION SPECIFIED IN SECTION 7.02 OF THE AGREEMENT IS
        PROVIDED.]

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No. [_]

              	
                Adjustable
                  Rate

              
	 	 
	
                Class
                  B-[1][2][3][4] Subordinate

              	 
	 	 
	
                Date
                  of Pooling and Servicing Agreement

                and
                  Cut-off Date:

                August
                  1, 2006

              	
                Aggregate
                  Initial Certificate Principal

                Balance
                  of this Certificate as of the Cut-off

                Date:

                $[__________]

              
	 	 
	
                First
                  Distribution Date:

                September
                  25, 2006

              	
                Initial
                  Certificate Principal Balance of this

                Certificate
                  as of the Cut-off Date:

                $[__________]

              
	 	 
	
                Master
                  Servicer and Securities Administrator:

                LaSalle
                  Bank National Association

              	
                CUSIP:
                  [__________]

              
	 	 
	
                Last
                  Scheduled Distribution Date:

                September
                  25, 2036

              	 
	 	 

      

      

       

      SACO
        I
        TRUST 2006-9

      MORTGAGE-BACKED
        CERTIFICATE

      SERIES
        2006-9

       

      evidencing
        a Percentage Interest in the distributions allocable to the Class B-[1][2][3][4]
        Certificates with respect to a Trust Fund consisting primarily of a pool
        of
        certain fixed rate, junior lien one- to four-family fixed and adjustable
        interest rate mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES
        I
        LLC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Bear Stearns Asset Backed Securities
        I
        LLC, the Master Servicer or the Trustee referred to below or any of their
        affiliates or any other person. Neither this Certificate nor the underlying
        Mortgage Loans are guaranteed or insured by any governmental entity or by
        Bear
        Stearns Asset Backed Securities I LLC, the Master Servicer or the Trustee
        or any
        of their affiliates or any other person. None of Bear Stearns Asset Backed
        Securities I LLC, the Master Servicer or any of their affiliates will have
        any
        obligation with respect to any certificate or other obligation secured by
        or
        payable from payments on the Certificates.

       

      This
        certifies that Cede & Co. is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional, closed-end, second lien, fixed and adjustable
        rate
        mortgage loans secured by one- to four- family residences (collectively,
        the
“Mortgage Loans”) sold by Bear Stearns Asset Backed Securities I LLC (“BSABS
        I”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS
        I. LaSalle Bank National Association will act as master servicer of the Mortgage
        Loans (in that capacity, the “Master Servicer,” which term includes any
        successors thereto under the Agreement referred to below). The Trust Fund
        was
        created pursuant to the Pooling and Servicing Agreement, dated as of the
        Cut-off
        Date specified above (the “Agreement”), among BSABS I, as depositor (the
“Depositor”), EMC Mortgage Corporation as seller and company, LaSalle Bank
        National Association, as Master Servicer and securities administrator (the
        “Securities Administrator”) and Citibank, N.A., as trustee (the “Trustee”), a
        summary of certain of the pertinent provisions of which is set forth hereafter.
        To the extent not defined herein, capitalized terms used herein shall have
        the
        meaning ascribed to them in the Agreement. This Certificate is issued under
        and
        is subject to the terms, provisions and conditions of the Agreement, to which
        Agreement the Holder of this Certificate by virtue of its acceptance hereof
        assents and by which such Holder is bound.

       

      [For
        Class B-1, Class B-2 and Class B-3] [Interest
        on this Certificate will accrue from and including the 25th day of the calendar
        month preceding the month in which a Distribution Date (as hereinafter defined)
        occurs to and including the 24th day of the calendar month in which that
        Distribution Date occurs on the Certificate Principal Balance hereof at a
        per
        annum rate equal to the Pass-Through Rate set forth above. The Securities
        Administrator will distribute on the 25th day of each month, or, if such
        25th
        day is not a Business Day, the immediately following Business Day (each,
        a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered at the close of
        business on the Business Day immediately preceding such Distribution Date,
        an
        amount equal to the product of the Percentage Interest evidenced by this
        Certificate and the amount (of interest and principal, if any) required to
        be
        distributed to the Holders of Certificates of the same Class as this
        Certificate. The Assumed Final Distribution Date is the Distribution Date
        in the
        month following the latest scheduled maturity date of any Mortgage Loan and
        is
        not likely to be the date on which the Certificate Principal Balance of this
        Class of Certificates will be reduced to zero.]

       

      [For
        Class B-4] [Interest on this Certificate will accrue from and including the
        25th
        day of the calendar month preceding the month in which a Distribution Date
        (as
        hereinafter defined) occurs (or, with respect to the first accrual period,
        the
        Closing Date) to and including the 24th day of the calendar month in which
        that
        Distribution Date occurs on the Certificate Principal Balance hereof at a
        per
        annum rate equal to the Pass-Through Rate set forth above and as further
        described in the Agreement. The Securities Administrator will distribute
        on the
        25th day of each month, or, if such 25th day is not a Business Day, the
        immediately following Business Day (each, a “Distribution Date”), commencing on
        the First Distribution Date specified above, to the Person in whose name
        this
        Certificate is registered at the close of business on the Business Day
        immediately preceding such Distribution Date so long as this Certificate
        remains
        in book-entry form (and otherwise, the close of business on the last Business
        Day of the month immediately preceding the month of such Distribution date),
        an
        amount equal to the product of the Percentage Interest evidenced by this
        Certificate and the amount (of interest and principal, if any) required to
        be
        distributed to the Holders of Certificates of the same Class as this
        Certificate.  The Assumed Final Distribution Date is the Distribution Date
        in the month following the latest scheduled maturity date of any Mortgage
        Loan.]

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. The initial Certificate Principal Balance of this
        Certificate is set forth above. The Certificate Principal Balance hereof
        will be
        reduced to the extent of distributions allocable to principal hereon and
        any
        Realized Losses allocable hereto. 

       

      [For
        Class B-4] [No
        transfer of this Class B-4 Certificate will be made unless such transfer
        is (i)
        exempt from the registration requirements of the Securities Act of 1933,
        as
        amended, and any applicable state securities laws or is made in accordance
        with
        said Act and laws and (ii) made in accordance with Section 7.02 of the
        Agreement. Notwithstanding the foregoing, the certifications will not be
        required with respect to the transfer of this Certificate to a Depository,
        or
        for any subsequent transfer of this Certificate for so long as this Certificate
        is a Book-Entry Certificate.] 

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement. 

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that neither the
        Trustee
        nor the Securities Administrator is liable to the Certificateholders for
        any
        amount payable under this Certificate or the Agreement or, except as expressly
        provided in the Agreement, subject to any liability under the
        Agreement.

       

      Each
        holder of a Certificate or beneficial ownership shall be deemed to have made
        the
        representations set forth in Section 7.02(h) of the Agreement.

       

      [For
        Class B-4] [This Certificate may not be acquired directly or indirectly by,
        or
        on behalf of, an employee benefit plan or other retirement arrangement which
        is
        subject to Title I of the Employee Retirement Income Security Act of 1974,
        as
        amended, or Section 4975 of the Internal Revenue Code of 1986, as amended,
        unless the transferee certifies or represents that the proposed transfer
        and
        holding of a Certificate and the servicing, management and operation of the
        trust and its assets: (i) will not result in any prohibited transaction which
        is
        not covered under an individual or class prohibited transaction exemption,
        including, but not limited to, Prohibited Transaction Exemption (“PTE”) 84-14,
        PTE 91-38, PTE 90-1, PTE 95-60 or PTE 96-23 and (ii) will not give rise to
        any
        additional obligations on the part of the Depositor, the Master Servicer
        or the
        Trustee, which will be deemed represented by an owner of a Book-Entry
        Certificate or a Global Certificate or unless an opinion specified in section
        7.02 of the Agreement is provided.]

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator and the Trustee.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Certificates
        evidencing over 50% of the aggregate Certificate Principal Balance of the
        Certificates, or with the consent of the Holders of each Class of Certificates
        affected thereby evidencing over 50% of the aggregate Certificate Principal
        Balance of that class, as applicable. Any such consent by the Holder of this
        Certificate shall be conclusive and binding on such Holder and upon all future
        Holders of this Certificate and of any Certificate issued upon the transfer
        hereof or in lieu hereof whether or not notation of such consent is made
        upon
        this Certificate. The Agreement also permits the amendment thereof, in certain
        limited circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Securities Administrator,
        the
        Trustee and any agent of any of them may treat the Person in whose name this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund in accordance with the
        terms
        of the Agreement. Such optional repurchase may be made only on or after the
        first Distribution Date on which the aggregate Stated Principal Balance of
        the
        Mortgage Loans is less than or equal to a certain percentage of the aggregate
        Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as
        set
        forth in the Agreement. The exercise of such right will effect the early
        retirement of the Certificates. In no event, however, will the Trust Fund
        created by the Agreement continue beyond the earlier of (i) the expiration
        of 21
        years after the death of certain persons identified in the Agreement and
        (ii)
        the Latest Possible Maturity Date (as defined in the Agreement).

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:
                  ____________, 2006

              	 	
                LASALLE
                  BANK NATIONAL ASSOCIATION,
                  not in its individual capacity but
                  solely as Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class B-[1][2][3][4] Certificates referred to in the within-mentioned
        Agreement.

      

      
        	 	 	
                LASALLE
                  BANK NATIONAL ASSOCIATION,
                  Authorized signatory of LaSalle
                  Bank National Association , not in its individual
                  capacity but solely as Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

       

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 
	 

      

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      DISTRIBUTION
        INSTRUCTIONS

      

      
        	
                The
                  assignee should include the following for purposes of
                  distribution:

              
	 
	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

      

      

      EXHIBIT
        A-4

       

      FORM
        OF CLASS C CERTIFICATES

       

      THIS
        CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES,
        THE
        CLASS M CERTIFICATES AND THE CLASS B CERTIFICATES AS DESCRIBED IN THE AGREEMENT
        (AS DEFINED BELOW).

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “REGULAR
        INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE
        DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE
        CODE OF
        1986 (THE “CODE”).

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
        HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
        MAY
        BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE
        WITH
        THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE
        144A
        UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
        BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
        (A
“QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF
        A
        QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
        PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT
        TO
        AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
        ACT (IF
        AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR”
WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION
        D
        UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN
        SUCH
        PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES
        ACT,
        SUBJECT TO (A) THE RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER
        SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY
        THE
        SECURITIES ADMINISTRATOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES
        ADMINISTRATOR THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE
        WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE
        WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER
        APPLICABLE JURISDICTION.

       

      NO
        TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 7.02(h) OF THE AGREEMENT
        OR
        AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR THAT THE
        PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE
        LAW,
        WILL NOT CONSTITUTE OR RESULT IN ANY NON-EXEMPT PROHIBITED TRANSACTIONS UNDER
        SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”) OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE
        SECURITIES ADMINISTRATOR, THE MASTER SERVICER OR THE DEPOSITOR TO ANY OBLIGATION
        OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
        AGREEMENT.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No.1

              	
                Percentage
                  Interest: 100%

              
	 	 
	
                Class
                  C

              	 
	 	 
	
                Date
                  of Pooling and Servicing Agreement

                and
                  Cut-off Date:

                August
                  1, 2006

              	
                Initial
                  Certificate Notional Amount of this

                Certificate
                  as of the Cut-off Date:

                $[__________]

              
	 	 
	
                First
                  Distribution Date:

                September
                  25, 2006

              	
                Aggregate
                  Certificate Notional Amount of this

                Certificate
                  as of the Cut-off Date:

                $[__________]

              
	 	 
	
                Master
                  Servicer and Securities Administrator:

                LaSalle
                  Bank National Association

              	
                CUSIP:
                  [__________]

              
	 	 
	
                Last
                  Scheduled Distribution Date:

                September
                  25, 2036

              	 
	 	 

      

      

       

      SACO
        I
        TRUST 2006-9

      MORTGAGE-BACKED
        CERTIFICATE

      SERIES
        2006-9

       

      evidencing
        a Percentage Interest in the distributions allocable to the Class C Certificates
        with respect to a Trust Fund consisting primarily of a pool of certain fixed
        rate, junior lien one- to four-family fixed and adjustable interest rate
        mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES I LLC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Bear Stearns Asset Backed Securities
        I
        LLC, the Master Servicer, the Securities Administrator or the Trustee referred
        to below or any of their affiliates or any other person. Neither this
        Certificate nor the underlying Mortgage Loans are guaranteed or insured by
        any
        governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
        Master
        Servicer, the Securities Administrator or the Trustee or any of their affiliates
        or any other person. None of Bear Stearns Asset Backed Securities I LLC,
        the
        Master Servicer or any of their affiliates will have any obligation with
        respect
        to any certificate or other obligation secured by or payable from payments
        on
        the Certificates.

       

      This
        certifies that ______________ is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional, closed-end, second lien, fixed and adjustable
        rate
        mortgage loans secured by one- to four- family residences (collectively,
        the
“Mortgage Loans”) sold by Bear Stearns Asset Backed Securities I LLC (“BSABS
        I”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS
        I. LaSalle Bank National Association will act as master servicer of the Mortgage
        Loans (in that capacity, the “Master Servicer,” which term includes any
        successors thereto under the Agreement referred to below). The Trust Fund
        was
        created pursuant to the Pooling and Servicing Agreement, dated as of the
        Cut-off
        Date specified above (the “Agreement”), among BSABS I, as depositor (the
“Depositor”), EMC Mortgage Corporation as seller and company, LaSalle Bank
        National Association, as Master Servicer and securities administrator (the
        “Securities Administrator”) and Citibank, N.A., as trustee (the “Trustee”), a
        summary of certain of the pertinent provisions of which is set forth hereafter.
        To the extent not defined herein, capitalized terms used herein shall have
        the
        meaning ascribed to them in the Agreement. This Certificate is issued under
        and
        is subject to the terms, provisions and conditions of the Agreement, to which
        Agreement the Holder of this Certificate by virtue of its acceptance hereof
        assents and by which such Holder is bound.

       

      The
        Securities Administrator will distribute on the 25th day of each month, or,
        if
        such 25th day is not a Business Day, the immediately following Business Day
        (each, a “Distribution Date”), commencing on the First Distribution Date
        specified above, to the Person in whose name this Certificate is registered
        at
        the close of business on the last day (or if such last day is not a Business
        Day, the Business Day immediately preceding such last day) of the calendar
        month
        immediately preceding the month in which the Distribution Date occurs, an
        amount
        equal to the product of the Percentage Interest evidenced by this Certificate
        and the amounts required to be distributed to the Holders of Certificates
        of the
        same Class as this Certificate. 

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. 

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the Securities Act of 1933,
        as
        amended (the “1933 Act”), and an effective registration or qualification under
        applicable state securities laws, or is made in a transaction that does not
        require such registration or qualification. In the event that such a transfer
        of
        this Certificate is to be made without registration or qualification, the
        Securities Administrator shall require receipt of (i) if such transfer is
        purportedly being made in reliance upon Rule 144A under the 1933 Act, written
        certifications from the Holder of the Certificate desiring to effect the
        transfer, and from such Holder’s prospective transferee, substantially in the
        forms attached to the Agreement as Exhibit D and either Exhibit E or Exhibit
        F,
        as applicable, and (ii) in all other cases, an Opinion of Counsel satisfactory
        to it that such transfer may be made without such registration or qualification
        (which Opinion of Counsel shall not be an expense of the Trust Fund or of
        the
        Depositor, the Securities Administrator, the Trustee, or the Master Servicer
        in
        their respective capacities as such), together with copies of the written
        certification(s) of the Holder of the Certificate desiring to effect the
        transfer and/or such Holder’s prospective transferee upon which such Opinion of
        Counsel is based. Neither the Depositor, the Trustee nor the Securities
        Administrator is obligated to register or qualify the Class of Certificates
        specified on the face hereof under the 1933 Act or any other securities law
        or
        to take any action not otherwise required under the Agreement to permit the
        transfer of such Certificates without registration or qualification. Any
        Holder
        desiring to effect a transfer of this Certificate shall be required to indemnify
        the Trustee, the Securities Administrator, the Depositor, the Seller and
        the
        Master Servicer against any liability that may result if the transfer is
        not so
        exempt or is not made in accordance with such federal and state
        laws.

       

      No
        transfer of this Class C Certificate will be made unless the Securities
        Administrator shall have received either (i) the opinion of counsel set forth
        in
        Section 7.02(h) of the Agreement or (ii) a representation letter under Section
        7.02 of the Agreement, in the form as described by the Agreement, stating
        that
        the transferee is not an employee benefit or other plan subject to the
        prohibited transaction provisions of ERISA or Section 4975 of the Code (a
        “Plan”), or any other person acting, directly or indirectly, on behalf of or
        purchasing any Certificate with “plan assets” of any Plan.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that neither the
        Trustee
        nor the Securities Administrator is liable to the Certificateholders for
        any
        amount payable under this Certificate or the Agreement or, except as expressly
        provided in the Agreement, subject to any liability under the
        Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Trustee and Securities Administrator.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Certificates
        evidencing over 50% of the aggregate Certificate Principal Balance of the
        Certificates, or with the consent of the Holders of each Class of Certificates
        affected thereby evidencing over 50% of the aggregate Certificate Principal
        Balance of that class, as applicable. Any such consent by the Holder of this
        Certificate shall be conclusive and binding on such Holder and upon all future
        Holders of this Certificate and of any Certificate issued upon the transfer
        hereof or in lieu hereof whether or not notation of such consent is made
        upon
        this Certificate. The Agreement also permits the amendment thereof, in certain
        limited circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Securities Administrator,
        the
        Trustee and any agent of any of them may treat the Person in whose name this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund in accordance with the
        terms
        of the Agreement. Such optional repurchase may be made only on or after the
        first Distribution Date on which the aggregate Stated Principal Balance of
        the
        Mortgage Loans is less than or equal to a certain percentage of the aggregate
        Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as
        set
        forth in the Agreement. The exercise of such right will effect the early
        retirement of the Certificates. In no event, however, will the Trust Fund
        created by the Agreement continue beyond the earlier of (i) the expiration
        of 21
        years after the death of certain persons identified in the Agreement and
        (ii)
        the Latest Possible Maturity Date (as defined in the Agreement).

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:
                  ____________, 2006

              	 	
                LASALLE
                  BANK NATIONAL ASSOCIATION,
                  not in its individual capacity but
                  solely as Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class C Certificates referred to in the within-mentioned
        Agreement.

      
        	 	 	
                 

                LASALLE
                  BANK NATIONAL ASSOCIATION,
                  Authorized signatory of LaSalle
                  Bank National Association , not in its individual
                  capacity but solely as Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

       

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 
	 

      

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      DISTRIBUTION
        INSTRUCTIONS

      

      
        	
                The
                  assignee should include the following for purposes of
                  distribution:

              
	 
	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

      

       

      

      EXHIBIT
        A-5

       

      Form
        of Class R-[1][2][3][X] Certificates

       

      THIS
        CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON
        OR A
        DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
        (THE “CODE”).

       

      NO
        TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 7.02(h) OF THE AGREEMENT
        OR
        AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE THAT THE PURCHASE AND HOLDING
        OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE
        OR
        RESULT IN ANY NON EXEMPT PROHIBITED TRANSACTIONS UNDER SECTION 406 OF THE
        EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION
        4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, MASTER SERVICER OR THE
        DEPOSITOR TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN
        IN THE
        AGREEMENT.

       

      ANY
        RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
        IF
        THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE SECURITIES
        ADMINISTRATOR THAT (1) SUCH TRANSFEREE IS NOT (A) THE UNITED STATES, ANY
        STATE
        OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES, OR
        ANY
        AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY
        WHICH IS A CORPORATION IF ALL OF ITS ACTIVITIES ARE SUBJECT TO TAX AND EXCEPT
        FOR FREDDIE MAC, A MAJORITY OF ITS BOARD OF DIRECTORS IS NOT SELECTED BY
        SUCH
        GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION,
        OR
        ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING, (C) ANY ORGANIZATION
        (OTHER THAN CERTAIN FARMERS’ COOPERATIVES DESCRIBED IN SECTION 521 OF THE CODE)
        WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH
        ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING
        THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE
        INCOME), (D) RURAL ELECTRIC AND TELEPHONE COOPERATIVES DESCRIBED IN SECTION
        1381(a)(2)(C) OF THE CODE, (E) AN ELECTING LARGE PARTNERSHIP UNDER SECTION
        775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A),
        (B),
        (C), (D) OR (E) BEING HEREIN REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR
        (F) AN AGENT OF A DISQUALIFIED ORGANIZATION, (2) SUCH TRANSFEREE IS A UNITED
        STATES PERSON UNDER SECTION 7701 OF THE CODE, (3) NO PURPOSE OF SUCH TRANSFER
        IS
        TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND (4) SUCH TRANSFEREE SATISFIES
        CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE
        PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE
        REGISTER OR ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO
        A
        DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION OR A
        NON-UNITED STATES PERSON, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL
        FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
        CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO,
        THE
        RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE
        BY
        ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE
        PROVISIONS OF THIS PARAGRAPH.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No.1

              	 
	 	 
	
                Class
                  R-[1][2][3][X]

              	
                Percentage
                  Interest: 100%

              
	 	 
	
                Date
                  of Pooling and Servicing Agreement

                and
                  Cut-off Date:

                August
                  1, 2006

              	 
	 	 
	
                First
                  Distribution Date:

                September
                  25, 2006

              	 
	 	 
	
                Master
                  Servicer and Securities Administrator:

                LaSalle
                  Bank National Association

              	
                CUSIP:
                  [__________]

              
	 	 
	
                Last
                  Scheduled Distribution Date:

                September
                  25, 2036

              	 
	 	 

      

      

       

      SACO
        I
        TRUST 2006-9

      MORTGAGE-BACKED
        CERTIFICATE

      SERIES
        2006-9

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        R-[1][2][3][X] Certificates with respect to a Trust Fund consisting primarily
        of
        a pool of certain fixed rate, junior lien one- to four-family fixed and
        adjustable interest rate mortgage loans sold by BEAR STEARNS ASSET BACKED
        SECURITIES I LLC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Bear Stearns Asset Backed Securities
        I
        LLC, the Master Servicer, the Securities Administrator or the Trustee referred
        to below or any of their affiliates or any other person. Neither this
        Certificate nor the underlying Mortgage Loans are guaranteed or insured by
        any
        governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
        Master
        Servicer, the Securities Administrator or the Trustee or any of their affiliates
        or any other person. None of Bear Stearns Asset Backed Securities I LLC,
        the
        Master Servicer or any of their affiliates will have any obligation with
        respect
        to any certificate or other obligation secured by or payable from payments
        on
        the Certificates.

       

      This
        certifies that Bear, Stearns Securities Corp is the registered owner of the
        Percentage Interest evidenced hereby in the beneficial ownership interest
        of
        Certificates of the same Class as this Certificate in a trust (the “Trust Fund”)
        generally consisting of conventional, closed-end, second lien, fixed and
        adjustable rate mortgage loans secured by one- to four- family residences
        (collectively, the “Mortgage Loans”) sold by Bear Stearns Asset Backed
        Securities I LLC (“BSABS I”). The Mortgage Loans were sold by EMC Mortgage
        Corporation (“EMC”) to BSABS I. LaSalle Bank National Association will act as
        master servicer of the Mortgage Loans (in that capacity, the “Master Servicer,”
which term includes any successors thereto under the Agreement referred to
        below). The Trust Fund was created pursuant to the Pooling and Servicing
        Agreement, dated as of the Cut-off Date specified above (the “Agreement”), among
        BSABS I, as depositor (the “Depositor”), EMC Mortgage Corporation as seller and
        company, LaSalle Bank National Association, as Master Servicer and securities
        administrator (the “Securities Administrator”) and Citibank, N.A., as trustee
        (the “Trustee”), a summary of certain of the pertinent provisions of which is
        set forth hereafter. To the extent not defined herein, capitalized terms
        used
        herein shall have the meaning ascribed to them in the Agreement. This
        Certificate is issued under and is subject to the terms, provisions and
        conditions of the Agreement, to which Agreement the Holder of this Certificate
        by virtue of its acceptance hereof assents and by which such Holder is
        bound.

       

      Each
        Holder of this Certificate will be deemed to have agreed to be bound by the
        restrictions set forth in the Agreement to the effect that (i) each person
        holding or acquiring any Ownership Interest in this Certificate must be a
        Permitted Transferee, (ii) the transfer of any Ownership Interest in this
        Certificate will be conditioned upon the delivery to the Trustee of, among
        other
        things, an affidavit to the effect that it is a Permitted Transferee, (iii)
        any
        attempted or purported transfer of any Ownership Interest in this Certificate
        in
        violation of such restrictions will be absolutely null and void and will
        vest no
        rights in the purported transferee, and (iv) if any person other than a
        Permitted Transferee acquires any Ownership Interest in this Certificate
        in
        violation of such restrictions, then the Depositor will have the right, in
        its
        sole discretion and without notice to the Holder of this Certificate, to
        sell
        this Certificate to a purchaser selected by the Depositor, which purchaser
        may
        be the Depositor, or any affiliate of the Depositor, on such terms and
        conditions as the Depositor may choose.

       

      The
        Securities Administrator will distribute on the 25th day of each month, or,
        if
        such 25th day is not a Business Day, the immediately following Business Day
        (each, a “Distribution Date”), commencing on the First Distribution Date
        specified above, to the Person in whose name this Certificate is registered
        at
        the close of business on the last day (or if such last day is not a Business
        Day, the Business Day immediately preceding such last day) of the calendar
        month
        immediately preceding the month in which the Distribution Date occurs, an
        amount
        equal to the product of the Percentage Interest evidenced by this Certificate
        and the amounts required to be distributed to the Holders of Certificates
        of the
        same Class as this Certificate.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice.

       

      No
        transfer of this Class R-[1][2][3][X] Certificate will be made unless the
        Trustee and Securities Administrator shall have received either (i) the opinion
        of counsel set forth in Section 7.02(h) of the Agreement or (ii) a
        representation letter under Section 7.02 of the Agreement, in the form as
        described by the Agreement, stating that the transferee is not an employee
        benefit or other plan subject to the prohibited transaction provisions of
        ERISA
        or Section 4975 of the Code (a “Plan”), or any other person acting, directly or
        indirectly, on behalf of or purchasing any Certificate with “plan assets” of any
        Plan.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Trustee
        and the
        Securities Administrator are not liable to the Certificateholders for any
        amount
        payable under this Certificate or the Agreement or, except as expressly provided
        in the Agreement, subject to any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator and the Trustee.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Certificates
        evidencing over 50% of the aggregate Certificate Principal Balance of the
        Certificates, or with the consent of the Holders of each Class of Certificates
        affected thereby evidencing over 50% of the aggregate Certificate Principal
        Balance of that class, as applicable. Any such consent by the Holder of this
        Certificate shall be conclusive and binding on such Holder and upon all future
        Holders of this Certificate and of any Certificate issued upon the transfer
        hereof or in lieu hereof whether or not notation of such consent is made
        upon
        this Certificate. The Agreement also permits the amendment thereof, in certain
        limited circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Securities Administrator,
        the
        Trustee and any agent of any of them may treat the Person in whose name this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto) of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund in accordance with the
        terms
        of the Agreement. Such optional repurchase may be made only on or after the
        first Distribution Date on which the aggregate Stated Principal Balance of
        the
        Mortgage Loans is less than or equal to a certain percentage of the aggregate
        Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as
        set
        forth in the Agreement. The exercise of such right will effect the early
        retirement of the Certificates. In no event, however, will the Trust Fund
        created by the Agreement continue beyond the earlier of (i) the expiration
        of 21
        years after the death of certain persons identified in the Agreement and
        (ii)
        the Latest Possible Maturity Date (as defined in the Agreement).

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:
                  ____________, 2006

              	 	
                LASALLE
                  BANK NATIONAL ASSOCIATION,
                  not in its individual capacity but
                  solely as Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class R-[1][2][3][X] Certificates referred to in the within-mentioned
        Agreement.

      
        	 	 	
                LASALLE
                  BANK NATIONAL ASSOCIATION,
                  Authorized signatory of LaSalle
                  Bank National Association , not in its individual
                  capacity but solely as Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

       

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 
	 

      

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      DISTRIBUTION
        INSTRUCTIONS

      

      
        	
                The
                  assignee should include the following for purposes of
                  distribution:

              
	 
	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B

       

      MORTGAGE
        LOAN SCHEDULE

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        C

       

      FORM
        OF
        TRANSFER AFFIDAVIT

       

      

       

      
        	 	
                Affidavit
                  pursuant to Section 860E(e)(4) of the Internal Revenue Code of
                  1986, as
                  amended, and for other purposes

              

      

      

       

      
        	
                STATE
                  OF

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF

              	
                )

              	 

      

       

      [NAME
        OF
        OFFICER], being first duly sworn, deposes and says:

       

      1. That
        he/she is [Title of Officer] of [Name of Investor] (the “Investor”), a [savings
        institution] [corporation] duly organized and existing under the laws of
        [the
        State of _____] [the United States], on behalf of which he makes this
        affidavit.

       

      2. That
        (i)
        the Investor is not a “disqualified organization” as defined in Section
        860E(e)(5) of the Internal Revenue Code of 1986, as amended (the “Code”), or an
        electing large partnership as defined in Section 775(a) of the Code, and
        will
        not be a disqualified organization or an electing large partnership as of
        [Closing Date] [date of purchase]; (ii) it is not acquiring the SACO I Trust
        2006-9, Series 2006-9, Class R[-1][-2][-3][X] Certificates (the “Residual
        Certificates”) for the account of a disqualified organization or an electing
        large partnership; (iii) it consents to any amendment of the Pooling and
        Servicing Agreement that shall be deemed necessary by Bear Stearns Asset
        Backed
        Securities I LLC (upon advice of counsel) to constitute a reasonable arrangement
        to ensure that the Residual Certificates will not be owned directly or
        indirectly by a disqualified organization or an electing large partnership;
        and
        (iv) it will not transfer such Residual Certificates unless (a) it has received
        from the transferee an affidavit in substantially the same form as this
        affidavit containing these same seven representations and (b) as of the time
        of
        the transfer, it does not have actual knowledge that such affidavit is
        false.

       

      3. That
        the
        Investor is one of the following: (i) a citizen or resident of the United
        States, (ii) a corporation or partnership (including an entity treated as
        a
        corporation or partnership for federal income tax purposes) created or organized
        in, or under the laws of, the United States or any state thereof or the District
        of Columbia (except, in the case of a partnership, to the extent provided
        in
        regulations), provided that no partnership or other entity treated as a
        partnership for United States federal income tax purposes shall be treated
        as a
        United States person within the meaning of the Code unless all persons that
        own
        an interest in such partnership either directly or through any entity that
        is
        not a corporation for United States federal income tax purposes are United
        States persons, (iii) an estate whose income is subject to United States
        federal
        income tax regardless of its source, or (iv) a trust other than a “foreign
        trust” as defined in Section 7701 (a)(31) of the Code.

       

      4. That
        the
        Investor’s taxpayer identification number is
        ______________________.

       

      5. That
        no
        purpose of the acquisition of the Residual Certificates is to avoid or impede
        the assessment or collection of tax.

       

      6. That
        the
        Investor understands that, as the holder of the Residual Certificates, the
        Investor may incur tax liabilities in excess of any cash flows generated
        by such
        Residual Certificates.

       

      7. That
        the
        Investor intends to pay taxes associated with holding the Residual Certificates
        as they become due.

       

      IN
        WITNESS WHEREOF, the Investor has caused this instrument to be executed on
        its
        behalf, pursuant to authority of its Board of Directors, by its [Title of
        Officer] this ____ day of _________, 20__.

       

      
        	 	 	 	 	 	 	 	
                [NAME
                  OF INVESTOR]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	
                [Name
                  of Officer]

              
	 	 	 	 	 	 	 	
                Title:

              	
                [Title
                  of Officer]

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	
                [Address
                  of Investor for receipt of distributions]

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	
                Address
                  of Investor for receipt of tax
                  information:

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Personally
        appeared before me the above-named [Name of Officer], known or proved to
        me to
        be the same person who executed the foregoing instrument and to be the [Title
        of
        Officer] of the Investor, and acknowledged to me that he/she executed the
        same
        as his/her free act and deed and the free act and deed of the
        Investor.

       

      Subscribed
        and sworn before me this ___ day of _________, 20___.

       

      NOTARY
        PUBLIC

       

      COUNTY
        OF

       

      STATE
        OF

       

      My
        commission expires the ___ day of ___________________, 20___.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        D

       

      FORM
        OF
        TRANSFEROR CERTIFICATE

       

      ______________,
        200___

       

      Bear
        Stearns Asset Backed Securities I LLC

      383
        Madison Avenue

      New
        York,
        New York 10179

       

      LaSalle
        Bank National Association

      135
        South
        LaSalle Street, Suite 1625

      Chicago,
        Illinois 60603

       

      Attention:
        SACO I Trust 2006-9

       

      
        	
                Re:

              	
                SACO
                  I Trust 2006-9, Mortgage-Backed Certificates, Series 2006-9 (the
                  “Certificates”), including the Class [__] Certificates
                  (the “Privately Offered
                  Certificates”)

              

      

      Ladies
        and Gentlemen:

       

      In
        connection with the sale by ___________ (the “Seller”) to ________ (the
“Purchaser”) of $_________ Initial Certificate Principal Balance of
        Mortgage-Backed Certificates, Series 2006-9, Class _____ (the “Certificates”),
        issued pursuant to the Pooling and Servicing Agreement (the “Pooling and
        Servicing Agreement”), dated as of August 1, 2006, among Bear Stearns Asset
        Backed Securities I LLC, as depositor (the “Depositor”), EMC Mortgage
        Corporation, as seller and as company, LaSalle Bank National Association
        as
        master servicer and securities administrator and Citibank, N.A., as trustee
        (the
“Trustee”). The Seller hereby certifies, represents and warrants to, a covenants
        with, the Depositor and the Trustee that:

       

      Neither
        the Seller nor anyone acting on its behalf (a) has offered, pledged, sold,
        disposed of or otherwise transferred any Certificate, any interest in any
        Certificate or any other similar security to any person in any manner, (b)
        has
        solicited any offer to buy or to accept a pledge, disposition or other transfer
        of any Certificate, any interest in any Certificate or any other similar
        security from any person in any manner, (c) has otherwise approached or
        negotiated with respect to any Certificate, any interest in any Certificate
        or
        any other similar security with any person in any manner, (d) has made any
        general solicitation by means of general advertising or in any other manner,
        or
        (e) has taken any other action, that (as to any of (a) through (e) above)
        would
        constitute a distribution of the Certificates under the Securities Act of
        1933
        (the “Act”), that would render the disposition of any Certificate a violation of
        Section 5 of the Act or any state securities law, or that would require
        registration or qualification pursuant thereto. The Seller will not act in
        any
        manner set forth in the foregoing sentence with respect to any Certificate.
        The
        Seller has not and will not sell or otherwise transfer any of the Certificates,
        except in compliance with the provisions of the Pooling and Servicing
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                (Seller)

              	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        E

       

      FORM
        OF
        INVESTMENT LETTER (NON-RULE 144A)

       

      [Date]

      [SELLER]

       

      Bear
        Stearns Asset Backed Securities I LLC

      383
        Madison Avenue

      New
        York,
        New York 10179

       

      LaSalle
        Bank National Association

      135
        South
        LaSalle Street, Suite 1625

      Chicago,
        Illinois 60603

       

      
        	
                Re:

              	
                SACO
                  I Trust 2006-9, Mortgage-Backed Certificates, Series 2006-9 (the
                  “Certificates”), including the Class [__] Certificates
                  (the “Privately Offered
                  Certificates”)

              

      

      Dear
        Ladies and Gentlemen:

       

      In
        connection with our purchase of Privately Offered Certificates, we confirm
        that:

       

      
        	
                (i)

              	
                we
                  understand that the Privately Offered Certificates are not being
                  registered under the Securities Act of 1933, as amended (the “Act”) or any
                  applicable state securities or “Blue Sky” laws, and are being sold to us
                  in a transaction that is exempt from the registration requirements
                  of such
                  laws;

              
	 	 
	
                (ii)

              	
                any
                  information we desired concerning the Certificates, including the
                  Privately Offered Certificates, the trust in which the Certificates
                  represent the entire beneficial ownership interest (the “Trust”) or any
                  other matter we deemed relevant to our decision to purchase Privately
                  Offered Certificates has been made available to us;

              
	 	 
	
                (iii)

              	
                we
                  are able to bear the economic risk of investment in Privately Offered
                  Certificates; we are an institutional “accredited investor” as defined in
                  Section 501(a) of Regulation D promulgated under the Act and a
                  sophisticated institutional investor;

              
	 	 
	
                (iv)

              	
                we
                  are acquiring Privately Offered Certificates for our own account,
                  not as
                  nominee for any other person, and not with a present view to any
                  distribution or other disposition of the Privately Offered
                  Certificates;

              
	 	 
	
                (v)

              	
                we
                  agree the Privately Offered Certificates must be held indefinitely
                  by us
                  (and may not be sold, pledged, hypothecated or in any way disposed
                  of)
                  unless subsequently registered under the Act and any applicable
                  state
                  securities or “Blue Sky” laws or an exemption from the registration
                  requirements of the Act and any applicable state securities or
“Blue Sky”
                  laws is available;

              
	 	 
	
                (vi)

              	
                we
                  agree that in the event that at some future time we wish to dispose
                  of or
                  exchange any of the Privately Offered Certificates (such disposition
                  or
                  exchange not being currently foreseen or contemplated), we will
                  not
                  transfer or exchange any of the Privately Offered Certificates
                  unless:

              
	 	 
	 	
                (A)
                  (1) the sale is to an Eligible Purchaser (as defined below), (2)
                  if
                  required by the Pooling and Servicing Agreement (as defined below)
                  a
                  letter to substantially the same effect as either this letter or,
                  if the
                  Eligible Purchaser is a Qualified Institutional Buyer as defined
                  under
                  Rule 144A of the Act, the Rule 144A and Related Matters Certificate
                  in the
                  form attached to the Pooling and Servicing Agreement (as defined
                  below)
                  (or such other documentation as may be acceptable to the Trustee)
                  is
                  executed promptly by the purchaser and delivered to the addressees
                  hereof
                  and (3) all offers or solicitations in connection with the sale,
                  whether
                  directly or through any agent acting on our behalf, are limited
                  only to
                  Eligible Purchasers and are not made by means of any form of general
                  solicitation or general advertising whatsoever; and

              
	 	 
	 	
                (B)
                  if the Privately Offered Certificate is not registered under the
                  Act (as
                  to which we acknowledge you have no obligation), the Privately
                  Offered
                  Certificate is sold in a transaction that does not require registration
                  under the Act and any applicable state securities or “blue sky” laws and,
                  if LaSalle Bank National Association. (the “Securities Administrator”) so
                  requests, a satisfactory Opinion of Counsel is furnished to such
                  effect,
                  which Opinion of Counsel shall be an expense of the transferor
                  or the
                  transferee;

              
	 	 
	
                (vii)

              	
                we
                  agree to be bound by all of the terms (including those relating
                  to
                  restrictions on transfer) of the Pooling and Servicing, pursuant
                  to which
                  the Trust was formed; we have reviewed carefully and understand
                  the terms
                  of the Pooling and Servicing Agreement;

              
	 	 
	
                (viii)

              	
                we
                  either: (i) are not acquiring the Privately Offered Certificate
                  directly
                  or indirectly by, or on behalf of, an employee benefit plan or
                  other
                  retirement arrangement which is subject to Title I of the Employee
                  Retirement Income Security Act of 1974, as amended, and/or section
                  4975 of
                  the Internal Revenue Code of 1986, as amended, or (ii) have provided
                  the
                  Opinion of Counsel required by the Agreement,
                  or
                  (iii) in the case of the Class B-4 Certificates, the transfer (1)
                  will not
                  result in a prohibited transaction which is not covered by Prohibited
                  Transaction Exemption (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60 or PTE
                  96-23 and (2) will not give rise to any additional obligations
                  on the part
                  of the Depositor, the Securities Administrator, the Master Servicer
                  or the
                  Trustee. 

              
	 	 
	
                (ix)

              	
                We
                  understand that each of the Privately Offered Certificates bears,
                  and will
                  continue to bear, a legend to substantiate the following effect:
                  THIS
                  CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
                  ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE
                  SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE,
                  AGREES
                  THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE
                  TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER
                  APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES
                  ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A
                  QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A
“QIB”),
                  PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT
                  OF A
                  QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER,
                  RESALE,
                  PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
                  (2)
                  PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
                  UNDER THE
                  SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
                  “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN RULE
                  501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT OR ANY
                  ENTITY IN
                  WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING
                  NOT
                  FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO
                  (A) THE
                  RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY
                  IN THE
                  FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE SECURITIES
                  ADMINISTRATOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES
                  ADMINISTRATOR THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS
                  IN
                  COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR
                  IN EACH
                  CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED
                  STATES AND ANY OTHER APPLICABLE JURISDICTION. [In
                  the case of the Class B-4 Certificates]: THIS
                  CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON
                  BEHALF
                  OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH
                  IS
                  SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
                  OF 1974,
                  AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
                  AS
                  AMENDED, UNLESS THE TRANSFEREE CERTIFIES OR REPRESENTS THAT THE
                  PROPOSED
                  TRANSFER AND HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT
                  AND
                  OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY
                  PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER PROHIBITED TRANSACTION
                  EXEMPTION (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23 AND
                  (II) WILL NOT GIVE RISE TO ANY ADDITIONAL OBLIGATIONS ON THE PART
                  OF THE
                  DEPOSITOR, THE MASTER SERVICER OR THE SECURITIES ADMINISTRATOR,
                  WHICH WILL
                  BE DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE OR
                  A GLOBAL
                  CERTIFICATE OR UNLESS AN OPINION SPECIFIED IN SECTION 7.02 OF THE
                  AGREEMENT IS PROVIDED.

              
	 	 

      

      

       

      “Eligible
        Purchaser”
        means a
        corporation, partnership or other entity which we have reasonable grounds
        to
        believe and do believe (i) can make representations with respect to itself
        to
        substantially the same effect as the representations set forth herein, and
        (ii)
        is either a Qualified Institutional Buyer as defined under Rule 144A of the
        Act
        or an institutional “Accredited Investor” as defined under Rule 501 of the
        Act.

       

      Terms
        not
        otherwise defined herein shall have the meanings assigned to them in the
        Pooling
        and Servicing Agreement, dated as of August 1, 2006, among Bear Stearns Asset
        Backed Securities I LLC, as depositor (the “Depositor”), EMC Mortgage
        Corporation, as seller and as company, LaSalle Bank National Association
        as
        master servicer and securities administrator and Citibank, N.A., as Trustee
        (the
“Pooling and Servicing Agreement”).

       

      If
        the
        Purchaser proposes that its Certificates be registered in the name of a nominee
        on its behalf, the Purchaser has identified such nominee below, and has caused
        such nominee to complete the Nominee Acknowledgment at the end of this
        letter.

       

      Name
        of
        Nominee (if any): __________________________

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, this document has been executed by the undersigned who is
        duly
        authorized to do so on behalf of the undersigned Eligible Purchaser on the
        ___
        day of ________, 20___.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                [PURCHASER]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Attorney-in-fact)

              

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Nominee
        Acknowledgment

       

      The
        undersigned hereby acknowledges and agrees that as to the Certificates being
        registered in its name, the sole beneficial owner thereof is and shall be
        the
        Purchaser identified above, for whom the undersigned is acting as
        nominee.

       

      
        	 	 	 	 	 	 	 	
                [NAME
                  OF NOMINEE]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Attorney-in-fact)

              

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        F

       

      FORM
        OF
        RULE 144A AND RELATED MATTERS CERTIFICATE

       

      [SELLER]

       

      Bear
        Stearns Asset Backed Securities I LLC

      383
        Madison Avenue

      New
        York,
        New York 10179

       

      LaSalle
        Bank National Association

      135
        South
        LaSalle Street, Suite 1625

      Chicago,
        Illinois 60603

       

      
        	
                Re:

              	
                SACO
                  I Trust 2006-9, Mortgage-Backed Certificates, Series 2006-9 (the
                  “Certificates”), including the Class [__] Certificates
                  (the “Privately Offered
                  Certificates”)

              

      

      

      Dear
        Ladies and Gentlemen:

       

      In
        connection with our purchase of Privately Offered Certificates, the undersigned
        certifies to each of the parties to whom this letter is addressed that it
        is a
        qualified institutional buyer (as defined in Rule 144A under the Securities
        Act
        of 1933, as amended (the “Act”)) as follows:

       

      1. It
        owned
        and/or invested on a discretionary basis eligible securities (excluding
        affiliate’s securities, bank deposit notes and CD’s, loan participations,
        repurchase agreements, securities owned but subject to a repurchase agreement
        and swaps), as described below:

       

      Date:
        ______________, 20__ (must be on or after the close of its most recent fiscal
        year)

       

      Amount:
        $
        _____________________; and

       

      2. The
        dollar amount set forth above is:

       

      
        	 	
                a.

              	
                greater
                  than $100 million and the undersigned is one of the following
                  entities:

              

      

       

      
        	
                (1)

              	
                [_]

              	
                an
                  insurance company as defined in Section 2(13) of the Act1 ;
                  or

              
	 	 	 
	
                (2)

              	
                [_]

              	
                an
                  investment company registered under the Investment Company Act
                  or any
                  business development company as defined in Section 2(a)(48) of
                  the
                  Investment Company Act of 1940; or

              
	 	 	 
	
                (3)

              	
                [_]

              	
                a
                  Small Business Investment Company licensed by the U.S. Small Business
                  Administration under Section 301(c) or (d) of the Small Business
                  Investment Act of 1958; or

              
	 	 	 
	
                (4)

              	
                [_]

              	
                a
                  plan (i) established and maintained by a state, its political
                  subdivisions, or any agency or instrumentality of a state or its
                  political
                  subdivisions, the laws of which permit the purchase of securities
                  of this
                  type, for the benefit of its employees and (ii) the governing investment
                  guidelines of which permit the purchase of securities of this type;
                  or

              
	 	 	 
	
                (5)

              	
                [_]

              	
                a
                  business development company as defined in Section 202(a)(22) of
                  the
                  Investment Advisers Act of 1940; or

              
	 	 	 
	
                (6)

              	
                [_]

              	
                a
                  corporation (other than a U.S. bank, savings and loan association
                  or
                  equivalent foreign institution), partnership, Massachusetts or
                  similar
                  business trust, or an organization described in Section 501(c)(3)
                  of the
                  Internal Revenue Code; or

              
	 	 	 
	
                (7)

              	
                [_]

              	
                a
                  U.S. bank, savings and loan association or equivalent foreign institution,
                  which has an audited net worth of at least $25 million as demonstrated
                  in
                  its latest annual financial statements; or

              
	 	 	 
	
                (8)

              	
                [_]

              	
                an
                  investment adviser registered under the Investment Advisers Act;
                  or

              
	 	 	 
	 	
                b.

              	
                [_]

              	
                greater
                  than $10 million, and the undersigned is a broker-dealer registered
                  with
                  the SEC; or

              
	 	 	 	 
	 	
                c.

              	
                [_]

              	
                less
                  than $10 million, and the undersigned is a broker-dealer registered
                  with
                  the SEC and will only purchase Rule 144A securities in transactions
                  in
                  which it acts as a riskless principal (as defined in Rule 144A);
                  or

              
	 	 	 	 
	 	
                d.

              	
                [_]

              	
                less
                  than $100 million, and the undersigned is an investment company
                  registered
                  under the Investment Company Act of 1940, which, together with
                  one or more
                  registered investment companies having the same or an affiliated
                  investment adviser, owns at least $100 million of eligible securities;
                  or

              
	 	 	 	 
	 	
                e.

              	
                [_]

              	
                less
                  than $100 million, and the undersigned is an entity, all the equity
                  owners
                  of which are qualified institutional
                  buyers.

              

      

      

       

      The
        undersigned further certifies that it is purchasing a Privately Offered
        Certificate for its own account or for the account of others that independently
        qualify as “Qualified Institutional Buyers” as defined in Rule 144A. It is aware
        that the sale of the Privately Offered Certificates is being made in reliance
        on
        its continued compliance with Rule 144A. It is aware that the transferor
        may
        rely on the exemption from the provisions of Section 5 of the Act provided
        by
        Rule 144A. The undersigned understands that the Privately Offered Certificates
        may be resold, pledged or transferred only to (i) a person reasonably believed
        to be a Qualified Institutional Buyer that purchases for its own account
        or for
        the account of a Qualified Institutional Buyer to whom notice is given that
        the
        resale, pledge or transfer is being made in reliance in Rule 144A, or (ii)
        an
        institutional “accredited investor,” as such term is defined under Rule 501 of
        the Act in a transaction that otherwise does not constitute a public
        offering.

       

      The
        undersigned agrees that if at some future time it wishes to dispose of or
        exchange any of the Privately Offered Certificates, it will not transfer
        or
        exchange any of the Privately Offered Certificates to a Qualified Institutional
        Buyer without first obtaining a Rule 144A and Related Matters Certificate
        in the
        form hereof from the transferee and delivering such certificate to the
        addressees hereof. Prior to making any transfer of Privately Offered
        Certificates, if the proposed Transferee is an institutional “accredited
        investor,” the transferor shall obtain from the transferee and deliver to the
        addressees hereof an Investment Letter in the form attached to the Pooling
        and
        Servicing Agreement, dated as of August 1, 2006, among Bear Stearns Asset
        Backed
        Securities I LLC, as depositor (the “Depositor”), EMC Mortgage Corporation, as
        seller and as company, LaSalle Bank National Association as master servicer
        and
        securities administrator and Citibank, N.A., as Trustee, pursuant to which
        the
        Certificates were issued.

       

      The
        undersigned certifies that it either: (i) is not acquiring the Privately
        Offered
        Certificates directly or indirectly by, or on behalf of, an employee benefit
        plan or other retirement arrangement which is subject to Title I of the Employee
        Retirement Income Security Act of 1974, as amended, and/or section 4975 of
        the
        Internal Revenue Code of 1986, as amended, or (ii) has provided the Opinion
        of
        Counsel required by the Agreement or (iii) in the case of the Class B-4
        Certificates, the transfer (1) will not result in a prohibited transaction
        which
        is not covered by Prohibited Transaction Exemption (“PTE”) 84-14, PTE 91-38, PTE
        90-1, PTE 95-60 or PTE 96-23 and (2) will not give rise to any additional
        obligations on the part of the Depositor, the Securities Administrator, the
        Master Servicer or the Trustee. 

       

      If
        the
        Purchaser proposes that its Certificates be registered in the name of a nominee
        on its behalf, the Purchaser has identified such nominee below, and has caused
        such nominee to complete the Nominee Acknowledgment at the end of this
        letter.

       

      Name
        of
        Nominee (if any): ________________________

      

        

          

          
            1 A
              purchase by an insurance company for one or more of its separate accounts,
              as
              defined by Section 2(a)(37) of the Investment Company Act of 1940,
              which are
              neither registered nor required to be registered thereunder, shall
              be deemed to
              be a purchase for the account of such insurance company.

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, this document has been executed by the undersigned who is
        duly
        authorized to do so on behalf of the undersigned Eligible Purchaser on the
        ____
        day of ___________, 20___.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                [PURCHASER]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Attorney-in-fact)

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Nominee
        Acknowledgment

       

      The
        undersigned hereby acknowledges and agrees that as to the Certificates being
        registered in its name, the sole beneficial owner thereof is and shall be
        the
        Purchaser identified above, for whom the undersigned is acting as
        nominee.

       

      
        	 	 	 	 	 	 	 	
                [NAME
                  OF NOMINEE]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Attorney-in-fact)

              

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        G

       

      FORM
        OF
        REQUEST FOR RELEASE

       

      
        	
                To:

              	
                LaSalle
                  Bank National Association

              

      

      135
        South
        LaSalle Street, Suite 1625

      Chicago,
        Illinois 60603

      

       

      
        	
                RE:

              	
                Pooling
                  and Servicing Agreement, dated as of August 1, 2006, among Bear
                  Stearns
                  Asset Backed Securities I LLC, as Depositor, EMC Mortgage Corporation,
                  as
                  seller and as company, LaSalle Bank National Association as master
                  servicer and securities administrator and Citibank, N.A., as
                  Trustee

              

      

      

      In
        connection with the administration of the Mortgage Loans held by you pursuant
        to
        the above-captioned Pooling and Servicing Agreement, we request the release,
        and
        hereby acknowledge receipt, of the Mortgage File for the Mortgage Loan described
        below, for the reason indicated.

       

      Mortgage
        Loan Number:

       

      Mortgagor
        Name, Address & Zip Code:

       

      Reason
        for Requesting Documents (check one):

       

      
        	
                _____

              	 	
                1.

              	
                Mortgage
                  Paid in Full and proceeds have been deposited into the Custodial
                  Account

              
	 	 	 	 
	
                _____

              	 	
                2.

              	
                Foreclosure

              	 
	 	 	 	 	 
	
                _____

              	 	
                3.

              	
                Substitution

              	 
	 	 	 	 	 
	
                _____

              	 	
                4.

              	
                Other
                  Liquidation

              	 
	 	 	 	 	 
	
                _____

              	 	
                5.

              	
                Nonliquidation

              	
                Reason:_________________________________

              
	 	 	 	 	 
	
                _____

              	 	
                6.

              	
                California
                  Mortgage Loan paid in full

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (authorized
                  signer)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                Issuer:

              	 
	 	 	 	 	 	 	 	
                Address:

              	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                Date:

              	 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        H

       

      DTC
        LETTER OF REPRESENTATIONS

      

      [Provided
        Upon Request]

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        I

       

      SCHEDULE
        OF MORTGAGE LOANS WITH LOST NOTES

      

      [Provided
        Upon Request]

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        J

       

      FORM
        OF
        LASALLE CUSTODIAL AGREEMENT

       

      THIS
        CUSTODIAL AGREEMENT (as amended and supplemented from time to time, the
“Agreement”), dated as of August 30, 2006, by and among CITIBANK, N.A., not
        individually but solely as trustee under the Pooling and Servicing Agreement
        defined below (in such capacity, including its successors under the Pooling
        and
        Servicing Agreement defined below, the “Trustee”), BEAR STEARNS ASSET BACKED
        SECURITIES I LLC, as depositor (together with any successor in interest,
        the
“Depositor”), EMC MORTGAGE CORPORATION, as seller (in such capacity, “EMC” or
        the “Seller”) and as company (in such capacity, together with any successor in
        interest or successor under the Pooling and Servicing Agreement referred
        to
        below, the “Company”) and LASALLE BANK NATIONAL ASSOCIATION, as master servicer
        (together with any successor in interest, the “Master Servicer”), securities
        administrator (in that capacity, the “Securities Administrator”) and as
        custodian (in such capacity, together with any successor in interest or any
        successor in interest or any successor appointed hereunder, the
“Custodian”).

       

      WITNESSETH
        THAT:

       

      WHEREAS,
        the Depositor, EMC, the Master Servicer, the Securities Administrator and
        the
        Trustee have entered into a Pooling and Servicing Agreement, dated as of
        August
        1, 2006, relating to the issuance of SACO I Trust 2006-9, Mortgage-Backed
        Certificates, Series 2006-9 (as in effect on the date of this Agreement,
        and as
        amended and supplemented from time to time, the “Pooling and Servicing
        Agreement”).

       

      WHEREAS,
        the Custodian has agreed to act as agent for the Trustee on behalf of the
        Certificateholders for the purposes of receiving and holding certain documents
        and other instruments delivered by the Depositor, the Seller or the Master
        Servicer under the Pooling and Servicing Agreement and the Servicers, if
        any,
        under their respective Servicing Agreements, all upon the terms, conditions
        and
        obligations and subject to the limitations hereinafter set forth. In the
        event
        any custodian terms, conditions and obligations are defined in the Pooling
        and
        Servicing Agreement, this custodial agreement shall supercede;

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants and
        agreements hereinafter set forth, the Trustee, the Depositor, the Seller,
        the
        Master Servicer, the Company and the Custodian hereby agree as
        follows:

       

       

      ARTICLE
        I

      DEFINITIONS

       

      Section
        1.1  Definitions.
        For
        purposes of this Agreement, the following terms shall have the indicated
        meanings unless the context or use indicates another or different meaning
        and
        intent, the definitions of such terms are equally applicable to the singular
        and
        the plural forms of such terms, the words “herein,” “hereof” and “hereunder” and
        other words of similar import refer to this Agreement as a whole and not
        to any
        particular section or other subdivision, and section references refer to
        sections of this Agreement.

       

      “Agreement”
        shall mean this Custodial Agreement, as further supplemented or amended from
        time to time.

       

      “Business
        Day” shall mean any day other than (i) a Saturday or a Sunday, or (ii) a day on
        which banking institutions in The City of New York, New York, Chicago, Illinois,
        Minneapolis, Minnesota or the city in which the Corporate Trust Office of
        the
        Trustee or the principal office of the Master Servicer is located are authorized
        or obligated by law or executive order to be closed.

       

      “Closing
        Date” shall mean August 30, 2006.

       

      “EMC
        Flow
        Loans” shall mean the Mortgage Loans purchased by EMC pursuant to a flow loan
        purchase agreement.

       

      “Master
        Servicer” shall mean LaSalle Bank National Association, in its capacity as
        master servicer, and its successors and assigns.

       

      “MERS”
        shall mean 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” shall mean any Mortgage Loan registered with MERS on the MERS®
system.

       

      “MERS®
        System” shall mean the system of recording transfers of Mortgages electronically
        maintained by MERS.

       

      “MIN”
        shall mean the Mortgage Identification Number for Mortgage Loans registered
        with
        MERS on the MERS System.

       

      “MOM
        Loan” shall mean with respect to any Mortgage Loan, MERS acting as the mortgagee
        of such Mortgage Loan, solely as nominee for the originator of such Mortgage
        Loan and its successors and assigns, at the origination thereof.

       

      “Mortgage”
        shall mean the mortgage, deed of trust or other instrument creating a first
        or
        second lien on or first or second priority ownership interest in an estate
        in
        fee simple in real property securing a Mortgage Note.

       

      “Mortgage
        Assignment” shall mean an assignment of the Mortgage in recordable form,
        sufficient under the laws of the jurisdiction wherein the related Mortgaged
        Property is located to reflect the sale of the Mortgage.

       

      “Mortgage
        File” shall have the meaning set forth in Section 2 hereof.

       

      “Mortgage
        Loan” shall mean a first or subordinate lien mortgage loan or a first or
        subordinate lien home equity line of credit on a one-to-four family residential
        property.

       

      “Mortgage
        Loan Schedule” shall mean the electronic schedule of Mortgage Loans identified
        in Schedule A.

       

      “Mortgaged
        Property” shall mean the real property securing repayment of a Mortgage
        Loan.

       

      “Mortgagor”
        shall mean the obligor on a Mortgage Note.

       

      “Note”
        shall mean any promissory note or other evidence of indebtedness evidencing
        the
        indebtedness of a Mortgagor under a Mortgage Loan.

       

      “Servicer”
        shall mean the related servicer of the Mortgage Loans.

       

      “Trustee”
        shall mean Citibank, N.A., a national banking association, not in its individual
        capacity, but solely in its capacity as trustee for the benefit of the
        Certificateholders under this Agreement, and any successor thereto, and any
        corporation or national banking association resulting from or surviving any
        consolidation or merger to which it or its successors may be a party and
        any
        successor trustee as may from time to time be serving as successor trustee
        hereunder.

       

      Any
        Capitalized terms used in this Agreement and not defined herein shall have
        the
        meanings assigned in the Pooling and Servicing Agreement, unless otherwise
        required by the context herein.

       

      ARTICLE
        II

      CUSTODY
        OF MORTGAGE DOCUMENTS

       

      Section
        2.1  Custodian
        to Act as Agent: Acceptance of Mortgage Files.
        The
        Custodian, as the duly appointed custodial agent of the Trustee for these
        purposes, acknowledges (subject to any exceptions noted in the Initial
        Certification referred to in Section 2.3(a)) receipt of the Mortgage Files
        relating to the Mortgage Loans identified on Schedule A attached hereto (the
        “Mortgage Loan Schedule”) and declares that it holds and will hold such Mortgage
        Files as agent for the Trustee, in trust, for the use and benefit of all
        present
        and future Certificateholders.

       

      Section
        2.2  Recordation
        of Assignments.
        If any
        Mortgage File includes one or more assignments of Mortgage that have not
        been
        recorded and the related Mortgage Loan is not a MERS Loan or the Custodian
        has
        not received written instructions from the Seller or the Trustee that the
        related Mortgaged Properties are located in jurisdictions under the laws
        of
        which the recordation of such assignment is not necessary to protect the
        Trustee’s interest therein, each such assignment shall be delivered by the
        Custodian to the Seller for the purpose of recording it in the appropriate
        public office for real property records, and the Seller, at no expense to
        the
        Custodian, shall promptly cause to be recorded in the appropriate public
        office
        for real property records each such assignment of Mortgage and, upon receipt
        thereof from such public office, shall return each such assignment of Mortgage
        to the Custodian.

       

      Section
        2.3  Review
        of Mortgage Files.

       

      (a)  The
        documents set forth in the definition “Mortgage File” herein shall be delivered
        and released to the Custodian relating to each of the Mortgage Loans to be
        purchased on a Closing Date. The related Mortgage Loans shall be identified
        in
        the Mortgage Loan Schedule in electronic format which shall be delivered
        to the
        Custodian by EMC at least two Business Days prior to each Closing Date. On
        or
        prior to the Closing Date, the Custodian shall deliver to EMC, the Master
        Servicer and the Trustee an Initial Certification in the form annexed hereto
        as
        Exhibit One evidencing receipt (subject to any exceptions noted therein)
        of a
        Mortgage File for each of the Mortgage Loans listed on Schedule A attached
        hereto (the “Mortgage Loan Schedule”).

       

      (b)  Within
        90
        days thereafter, the Custodian agrees, for the benefit of Certificateholders
        to
        review each such document, and shall deliver to EMC, the Master Servicer
        and the
        Trustee an Interim Certification in the form annexed hereto as Exhibit Two
        to
        the effect that all such documents have been executed and received and that
        such
        documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule,
        except for any exceptions listed on Schedule A attached to such Interim
        Certification. The Custodian shall be under no duty or obligation to inspect,
        review or examine said documents, instruments, certificates or other papers
        to
        determine that the same 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.

       

      (c)  Not
        later
        than 180 days after the Closing Date, the Custodian shall review, for the
        benefit of Certificateholders, the Mortgage Files and deliver to EMC, the
        Master
        Servicer and the Trustee a Final Certification in the form annexed hereto
        as
        Exhibit Three evidencing whether each document required to be recorded has
        been
        returned from the recording office with evidence of recording thereon and
        the
        Custodian has received either an original or a copy thereof. If the Custodian
        finds any document missing, or to be unrelated, determined on the basis of
        the
        mortgagor name, original principal balance and loan number, to the mortgage
        loans identified on the Mortgage Loan Schedule or to appear defective on
        its
        face, the Custodian shall note such defect in the exception report attached
        to
        the Final Certification and shall promptly notify the Trustee. 

       

      (d)  In
        reviewing the Mortgage Files as provided herein, the Custodian shall make
        no
        representation as to and shall not be responsible to verify (i) the validity,
        legality, enforceability, due authorization, recordability, sufficiency or
        genuineness of any of the documents included in any Mortgage File or (ii)
        the
        collectibility, insurability, effectiveness or suitability of any of the
        documents in any Mortgage File.

       

      In
        performing any such review, the Custodian may conclusively rely on the purported
        due execution and genuineness of any such document and on the purported
        genuineness of any signature thereon.

       

      Upon
        receipt of written request from EMC, the Master Servicer, the Securities
        Administrator or the Trustee, the Custodian shall as soon as practicable
        supply
        such entity with a list of all of the documents relating to the Mortgage Loans
        missing from the Mortgage Files.

       

      Section
        2.4  Custodian
        to Cooperate: Release of Mortgage Files.
        Upon
        receipt of written notice per Exhibit Four or Electronic Release Request
        per
        Exhibit Five from the Trustee that EMC has repurchased a Mortgage Loan pursuant
        to Article II of the Pooling and Servicing Agreement, and a request for release
        (a “Request for Release”) confirming that the purchase price therefor has been
        paid as required under the Pooling and Servicing Agreement, then the Custodian
        agrees to promptly release to EMC the related Mortgage File.

       

      Upon
        the
        Custodian’s receipt of a Request for Release from the Master Servicer
        substantially in the form of Exhibit Four attached hereto or Electronic Release
        Request per Exhibit Five, stating that it has received payment in full of
        a
        Mortgage Loan or that payment in full will be escrowed in a manner customary
        for
        such purposes, the Custodian agrees promptly to release to the Company or
        the
        related Servicer, the related Mortgage File. The Depositor shall deliver
        to the
        Custodian and the Custodian agrees to review in accordance with the provisions
        of the Custodial Agreement the Mortgage Note and other documents constituting
        the Mortgage File with respect to any Replacement Mortgage Loan.

       

      From
        time
        to time as is appropriate for the servicing or foreclosure of any Mortgage
        Loan,
        the Company or the related Servicer, as applicable, shall deliver to the
        Custodian a Request for Release per Exhibit Four or Electronic Release Request
        per Exhibit Five requesting that possession of all of the Mortgage File be
        released to the Company or the related Servicer, as applicable, and certifying
        as to the reason for such release. Upon receipt of the foregoing, the Custodian
        shall deliver the Mortgage File to the Company or the related Servicer, as
        applicable. All Mortgage Files so released to the Company or the related
        Servicer, as applicable, shall be held by it in trust for the Trustee for
        the
        use and benefit of all present and future Certificateholders. The Company
        or the
        related Servicer, as applicable, shall cause each Mortgage File or any document
        therein so released to be returned to the Custodian when the need therefore
        by
        the Company or the related Servicer, as applicable, no longer exists, unless
        (i)
        the Mortgage Loan has been liquidated, or (ii) the Mortgage File or such
        document has been delivered to an attorney, or to a public trustee or other
        public official as required by law, for purposes of initiating or pursuing
        legal
        action or other proceedings for the foreclosure of the Mortgaged Property
        either
        judicially or non-judicially, and the Company or the related Servicer, as
        applicable, has delivered to the Custodian a certificate of a Servicing Officer
        certifying as to the name and address of the Person to which such Mortgage
        File
        or such document was delivered and the purpose or purposes of such
        delivery.

       

      At
        any
        time that the Company, the Master Servicer or the related Servicer is required
        to deliver to the Custodian a Request for Release, the Company, the Master
        Servicer or the related Servicer, as applicable, shall deliver two copies
        of the
        Request for Release if delivered in hard copy or the Company, the Master
        Servicer or the related Servicer, as applicable, may furnish such Request
        for
        Release electronically to the Custodian, in which event the Servicing Officer
        or
        the Master Servicing Officer, as applicable, transmitting the same shall
        be
        deemed to have signed the Request for Release. In connection with any Request
        for Release of a Mortgage File because of a repurchase of a Mortgage Loan,
        such
        Request for Release shall be accompanied by an assignment of mortgage, without
        recourse, representation or warranty from the Trustee to EMC (unless such
        Mortgage Loan is a MOM Loan) and the related Mortgage Note shall be endorsed
        without recourse, representation or warranty by the Trustee (unless such
        Mortgage Loans is registered on the MERS System) and be returned to EMC.
        In
        connection with any Request for Release of a Mortgage File because of the
        payment in full of a Mortgage Loan, such Request for Release shall be
        accompanied by a certificate of satisfaction or other similar instrument
        to be
        executed by or on behalf of the Trustee and returned to the Company, the
        Master
        Servicer or the related Servicer, as applicable.

       

      Section
        2.5  Assumption
        Agreements.
        In the
        event that any assumption agreement, substitution of liability agreement
        or sale
        of servicing agreement is entered into with respect to any Mortgage Loan
        subject
        to this Agreement, the Master Servicer shall enforce any obligation of the
        related Servicer, to the extent set forth in the Servicing Agreement or with
        respect to EMC as company, the Pooling and Servicing Agreement, to notify
        the
        Custodian that such assumption or substitution agreement has been completed
        by
        forwarding to the Custodian the original of such assumption or substitution
        agreement, which shall be added to the related Mortgage File and, for all
        purposes, shall be considered a part of such Mortgage File to the same extent
        as
        all other documents and instruments constituting parts thereof.

       

      ARTICLE
        III

      CONCERNING
        THE CUSTODIAN

       

      Section
        3.1  Custodian
        as Bailee and Agent of the Trustee.
        With
        respect to each Mortgage Note, Mortgage and other documents constituting
        each
        Mortgage File which are delivered to the Custodian, the Custodian is exclusively
        the bailee and custodial agent of the Trustee and has no instructions to
        hold
        any Mortgage Note or Mortgage for the benefit of any person other than the
        Trustee and the Certificateholders and undertakes to perform such duties
        and
        only such duties as are specifically set forth in this Agreement. Except
        upon
        compliance with the provisions of Section 2.4 of this Agreement, no Mortgage
        Note, Mortgage or Mortgage File shall be delivered by the Custodian to the
        Seller, the Depositor, any Servicer, the Securities Administrator or the
        Master
        Servicer or otherwise released from the possession of the
        Custodian.

       

      Section
        3.2  Custodian
        May Own Certificates.
        The
        Custodian in its individual or any other capacity may become the owner or
        pledgee of interests in the Mortgage Loans with the same rights it would
        have if
        it were not Custodian.

       

      Section
        3.3  Master
        Servicer to Pay Custodian’s Fees and Expenses.
        The
        Master Servicer covenants and agrees to pay pursuant to a separate fee schedule
        to the Custodian from time to time, and the Custodian shall be entitled to,
        reasonable compensation for all services rendered by it in the exercise and
        performance of any of the powers and duties hereunder of the Custodian, and
        the
        Master Servicer will pay or reimburse the Custodian (which payment or
        reimbursement shall be reimbursed to the Master Servicer pursuant to the
        Pooling
        and Servicing Agreement) upon its request for all reasonable expenses,
        disbursements and advances incurred or made by the Custodian in accordance
        with
        any of the provisions of this Agreement (including the reasonable compensation
        and the expenses and disbursements of its counsel and of all persons not
        regularly in its employ), except any such expense, disbursement or advance
        as
        may arise from its negligence or bad faith. 

       

      Section
        3.4  Custodian
        May Resign; Trustee May Remove Custodian.
        The
        Custodian may resign from the obligations and duties hereby imposed upon
        it as
        such obligations and duties relate to its acting as Custodian of the Mortgage
        Loans. Upon receiving such written notice of resignation, the Trustee shall
        either take custody of the Mortgage Files itself and give prompt written
        notice
        thereof to the Depositor, the Master Servicer, the Securities Administrator
        and
        the Custodian, or promptly appoint a successor Custodian by written instrument,
        in duplicate, one copy of which instrument shall be delivered to the resigning
        Custodian and one copy to the successor Custodian. If the Trustee shall not
        have
        taken custody of the Mortgage Files and no successor Custodian shall have
        been
        so appointed and have accepted appointment within 30 days after the giving
        of
        such written notice of resignation, the resigning Custodian may petition
        any
        court of competent jurisdiction for the appointment of a successor
        Custodian.

       

      The
        Trustee may remove the Custodian at any time upon 60 days prior written notice
        to the Custodian. In such event, the Trustee shall appoint, or petition a
        court
        of competent jurisdiction to appoint, a successor Custodian hereunder. Any
        successor Custodian shall be a depository institution subject to supervision
        or
        examination by federal or state authority, shall be able to satisfy the other
        requirements contained in Section 3.6 and shall be unaffiliated with the
        Master
        Servicer, Securities Administrator and the Depositor.

       

      Any
        resignation or removal of the Custodian and appointment of a successor Custodian
        pursuant to any of the provisions of this Section 3.4 shall become effective
        upon acceptance of appointment by the successor Custodian. The Trustee shall
        give prompt notice to the Depositor and the Master Servicer of the appointment
        of any successor Custodian. Notwithstanding anything to the contrary set
        forth
        herein, no successor Custodian shall be appointed by the Trustee without
        the
        prior approval of the Depositor and the Master Servicer. 

       

      Section
        3.5  Merger
        or Consolidation of Custodian.
        Any
        Person into which the Custodian may be merged or converted or with which
        it may
        be consolidated, or any Person resulting from any merger, conversion or
        consolidation to which the Custodian shall be a party, or any Person succeeding
        to the business of the Custodian, shall be the successor of the Custodian
        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 that such successor is a depository institution
        subject to supervision or examination by federal or state authority and is
        able
        to satisfy the other requirements contained in Section 3.6.

       

      Section
        3.6  Representations
        of the Custodian.
        The
        Custodian hereby represents that it is a depository institution subject to
        supervision or examination by a federal or state authority, has a combined
        capital and surplus of at least $15,000,000 and is qualified to do business
        in
        the jurisdictions in which it will hold any Mortgage File.

       

      Section
        3.7  Limitation
        on Liability.
        Neither
        the Custodian nor any of its directors, officers, agents or employees, shall
        be
        liable for any action taken or omitted to be taken by it or them hereunder
        or in
        connection herewith in good faith and believed (which belief may be based
        upon
        the opinion or advice of counsel selected by it in the exercise of reasonable
        care) by it or them to be within the purview of this Agreement, except for
        its
        or their own negligence, lack of good faith or willful misconduct. The Custodian
        and any director, officer, employee or agent of the Custodian 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. In no event shall the
        Custodian or its directors, officers, agents and employees be held liable
        for
        any special, indirect or consequential damages resulting from any action
        taken
        or omitted to be taken by it or them hereunder or in connection herewith
        even if
        advised of the possibility of such damages.

       

      Notwithstanding
        anything herein to the contrary, the Custodian agrees to indemnify the Trust
        Fund and the Trustee and each of their respective officers, directors and
        agents
        for any and all liabilities, obligations, losses, damages, payments, costs
        or
        expenses of any kind whatsoever that may be imposed on, incurred by or asserted
        against the Trustee or the Trust Fund, due to any negligent performance by
        the
        Custodian of its duties and responsibilities under this Agreement; provided,
        however, that the Custodian shall not be liable to any of the foregoing Persons
        for any amount and any portion of any such amount resulting from the willful
        misfeasance, bad faith or negligence of such person, or the Custodian’s reliance
        on instructions from the Trustee, the Securities Administrator or the Master
        Servicer. The provisions of this Section 3.7 shall survive the termination
        of
        this Custodial Agreement.

       

      LaSalle
        Bank National Association, as Custodian and in its individual capacity, and
        its
        directors, officers, employees and agents shall be entitled to indemnification
        and defense from the Trust Fund for any loss, liability or expense incurred
        without negligence, willful misconduct, bad faith on their part, arising
        out of,
        or in connection with, the acceptance or administration of the custodial
        arrangement created hereunder, including the costs and expenses of defending
        themselves against any claim or liability in connection with the exercise
        or
        performance of any of their powers or duties hereunder.

       

      Section
        3.8  Limitation
        of Duties.
        The
        Custodian in its capacity as such:

       

      (a)  in
        the
        course of its review of the Mortgage Files, shall not be required to make
        determinations (1) of a legal nature or (2) as to the authority of any officer
        or agent of the Master Servicer, Trustee or other entity who has executed
        (or
        certified with respect to) any document which is part of the Mortgage File;
        

       

      (b)  shall
        have no duties or obligations other than those specifically set forth herein
        or
        as may subsequently be agreed upon in writing by the parties hereto and shall
        use the same degree of care and skill as is reasonably expected of financial
        institutions acting in comparable capacities;

       

      (c)  will
        be
        regarded as making no representations and having no responsibilities as to
        the
        validity, sufficiency, value, genuineness, ownership or transferability of
        any
        Mortgage Loans and will not be required to and will not make any representations
        as to the validity, value or genuineness of the Mortgage Loans;

       

      (d)  shall
        not
        be obligated to take any legal action hereunder which might in its judgment
        involve any expense or liability unless it has been furnished with reasonable
        indemnity;

       

      (e)  may
        rely
        on and shall be protected in acting upon any certificate, instrument, opinion,
        notice, letter, telegram or other document, or any security, delivered to
        it and
        reasonably believed by it to be genuine and to have been signed by the Master
        Servicer, the Securities Administrator or the Trustee;

       

      (f)  may
        rely
        on and shall be protected in acting upon the written instructions of the
        Master
        Servicer or the Trustee and such employees and representatives of the Master
        Servicer, the Securities Administrator and the Trustee, as applicable, may
        hereinafter designate in writing;

       

      (g)  may
        consult counsel satisfactory to it (including counsel for the Trustee or
        the
        Master Servicer) and the opinion of such counsel shall be full and complete
        authorization and protection in respect of any action taken, suffered, or
        omitted by it hereunder in good faith and in accordance with the opinion
        of such
        counsel (provided that the fees of such counsel in connection with such
        consultation and opinion shall be paid by the Custodian); and

       

      (h)  shall
        not
        be liable for any error of judgment, or for any act done or step taken or
        omitted by it, in good faith, or for any mistake of fact or law, or for anything
        which it may do or refrain from doing in connection therewith, except in
        the
        case of a breach of any of the Custodian’s obligations hereunder, negligence or
        willful misconduct.

       

      The
        Custodian shall be held to the same standard of conduct, and shall be entitled
        to the same protections, privileges and immunities as other custodians acting
        in
        a custodial capacity are generally afforded.

       

      No
        covenant or agreement contained herein shall be deemed to be the covenant
        or
        agreement of any member of the Board of Directors, or any director, officer,
        agent, employee or representative of the Trustee, Master Servicer, Securities
        Administrator or the Custodian in his or her individual capacity and none
        of
        such persons shall be subject to any personal liability or accountability
        by
        reason of the execution of this Agreement, whether by virtue of any
        constitution, statute or rule of law or by the enforcement of any assessment
        or
        penalty, or otherwise.

       

      ARTICLE
        IV

      COMPLIANCE
        WITH REGULATION AB

       

      Section
        4.1  Intent
        of the Parties; Reasonableness.
        The
        parties hereto acknowledge and agree that the purpose of this Article IV
        is to
        facilitate compliance by the Depositor with the provisions of Regulation
        AB and
        related rules and regulations of the Commission. The Depositor shall not
        exercise its right to request delivery of information or other performance
        under
        these provisions other than in good faith, or for purposes other than compliance
        with the Securities Act, the Exchange Act and the rules and regulations of
        the
        Commission under the Securities Act and the Exchange Act. Each of the parties
        hereto acknowledges that interpretations of the requirements of Regulation
        AB
        may change over time, whether due to interpretive guidance provided by the
        Commission or its staff, consensus among participants in the mortgage-backed
        securities markets, advice of counsel, or otherwise, and agrees to comply
        with
        requests made by the Depositor in good faith for delivery of information
        under
        these provisions on the basis of evolving interpretations of Regulation AB.
        The
        Custodian shall cooperate reasonably with the Depositor to deliver to the
        Depositor (including any of its assignees or designees), any and all disclosure,
        statements, reports, certifications, records and any other information necessary
        in the reasonable, good faith determination of the Depositor to permit the
        Depositor to comply with the provisions of Regulation AB.

       

      Section
        4.2  Additional
        Representations and Warranties of the Custodian.

       

      (a)  The
        Custodian shall be deemed to represent to the Depositor as of the date hereof
        and on each date on which information is provided to the Depositor under
        Section
        4.3 that, except as disclosed in writing to the Depositor prior to such date:
        (i) there are no aspects of its financial condition that could have a material
        adverse effect on the performance by it of its Custodian obligations under
        this
        Agreement or any other Securitization Transaction as to which it is the
        custodian; (ii) there are no material legal or governmental proceedings pending
        (or known to be contemplated) against it; and (iii) there are no affiliations,
        relationships or transactions relating to the Custodian with respect to the
        Depositor or any sponsor, issuing entity, servicer, trustee, originator,
        significant obligor, enhancement or support provider or other material
        transaction party (other than the master servicer and the securities
        administrator) (as such terms are used in Regulation AB) relating to the
        Securitization Transaction contemplated by the Agreement, as identified by
        the
        Depositor to the Custodian in writing as of the Closing Date (each, a
“Transaction Party”).

       

      (b)  If
        so
        requested by the Depositor on any date following the Closing Date, the Custodian
        shall, within five Business Days following such request, confirm in writing
        the
        accuracy of the representations and warranties set forth in paragraph (a)
        of
        this Section or, if any such representation and warranty is not accurate
        as of
        the date of such confirmation, provide reasonably adequate disclosure of
        the
        pertinent facts, in writing, to the requesting party. Any such request from
        the
        Depositor shall not be given more than once each calendar quarter, unless
        the
        Depositor shall have a reasonable basis for a determination that any of the
        representations and warranties may not be accurate.

       

      Section
        4.3  Additional
        Information to Be Provided by the Custodian.
        For so
        long as the Trust is subject to the reporting obligations under the Exchange
        Act, for the purpose of satisfying the Depositor 's reporting obligation
        under
        the Exchange Act with respect to any class of publicly offered Certificates,
        the
        Custodian shall (a) notify the Depositor in writing of any material litigation
        or governmental proceedings pending against the Custodian that would be material
        to Certificateholders, and (b) provide to the Depositor (and the Securities
        Administrator) unless the Custodian and the Securities Administrator are
        the
        same party a written description of such proceedings. Any notices and
        descriptions required under this Section 4.3 shall be given no later than
        five
        Business Days prior to the Determination Date following the month in which
        the
        Custodian has knowledge of the occurrence of the relevant event. As of the
        date
        the Depositor, the Securities Administrator files each Report on Form 10-D
        or
        Form 10-K with respect to the Certificates, the Custodian will be deemed
        to
        represent that any information previously provided under this Section 4.3,
        if
        any, is materially correct and does not have any material omissions unless
        the
        Custodian has provided an update to such information.

       

      Section
        4.4  Report
        on Assessment of Compliance and Attestation.
        On or
        before March 15th of each calendar year that the Trust is subject to the
        reporting requirements of the Exchange Act beginning in 2007, the Custodian
        shall:

       

      (a)  deliver
        to the Securities Administrator and the Depositor a report regarding the
        Custodian’s assessment of compliance (an “Assessment of Compliance”) with the
        Servicing Criteria during the preceding calendar year, as required under
        Rules
        13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. The
        Assessment of Compliance, as set forth in Regulation AB, must contain (i)
        a
        statement by such officer of its responsibility for assessing compliance
        with
        the Servicing Criteria applicable to the Custodian, (ii) a statement by such
        officer that the Custodian used the Servicing Criteria attached as Exhibit
        Six
        hereto, and which will also be attached to the Assessment of Compliance,
        to
        assess compliance with the Servicing Criteria applicable to the Custodian,
        (iii)
        an assessment by such officer of the Custodian’s compliance with the applicable
        Servicing Criteria for the period consisting of the preceding calendar year,
        including disclosure of any material instance of noncompliance with respect
        thereto during such period, which assessment shall be based on the activities
        the Custodian performs with respect to asset-based securities transactions
        taken
        as a whole involving the Custodian, that are backed by the same asset type
        as
        the Mortgage Loans, (iv) a statement that a registered public accounting
        firm
        has issued an attestation report on the Custodian’s Assessment of Compliance for
        the period consisting of the preceding calendar year, and (v) a statement
        as to
        which of the Servicing Criteria, if any, are not applicable to the Custodian,
        which statement shall be based on the activities the Custodian performs with
        respect to asset-backed securities transactions taken as a whole involving
        the
        Custodian, that are backed by the same asset type as the Mortgage Loans.
        Such
        report at a minimum shall address each of the Servicing Criteria specified
        on
        Exhibit Six hereto which are indicated as applicable to the Custodian;
        and

       

      (b)  deliver
        to the Securities Administrator and the Depositor an Attestation Report (an
        “Attestation Report”) by a registered public accounting firm that attests to,
        and reports on, the Assessment of Compliance made by the Custodian, as required
        by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of Regulation
        AB, which Attestation Report must be made in accordance with standards for
        attestation reports issued or adopted by the Public Company Accounting Oversight
        Board.

       

      (c)  Notwithstanding
        the foregoing, an Assessment of Compliance is not required to be delivered
        by
        the Custodian unless it is required as part of a Form 10-K with respect to
        the
        Trust Fund.

       

      Section
        4.5  Indemnification;
        Remedies.

       

      (a)  The
        Custodian shall indemnify the Depositor, each affiliate of the Depositor,
        the
        Securities Administrator, the Master Servicer and each broker dealer acting
        as
        underwriter, placement agent or initial purchaser of the Certificates or
        each
        Person who controls any of such parties (within the meaning of Section 15
        of the
        Securities Act and Section 20 of the Exchange Act); and the respective present
        and former directors, officers, employees and agents of each of the foregoing,
        and shall hold each of them harmless from and against any losses, damages,
        penalties, fines, forfeitures, legal fees and expenses and related costs,
        judgments, and any other costs, fees and expenses that any of them may sustain
        arising out of or based upon any failure by the Custodian to deliver any
        report
        on assessment of compliance or accountants’ attestation when and as required
        under this Article IV.

       

      (b)  In
        the
        case of any failure of performance described in clause (ii) of Section 4.5(a),
        the Custodian shall promptly reimburse the Depositor for all costs reasonably
        incurred by the Depositor in order to obtain the information, report,
        certification, accountants’ letter or other material not delivered as required
        by the Custodian.

       

      ARTICLE
        V

      MISCELLANEOUS
        PROVISIONS

       

      Section
        5.1  Notices.  All
        notices, requests, consents and demands and other communications required
        under
        this Agreement or pursuant to any other instrument or document delivered
        hereunder shall be in writing and, unless otherwise specifically provided,
        may
        be delivered personally, by telegram or telex, or by registered or certified
        mail, postage prepaid, return receipt requested, at the addresses specified
        on
        the signature page hereof (unless changed by the particular party whose address
        is stated herein by similar notice in writing), in which case the notice
        will be
        deemed delivered when received.

       

      Section
        5.2  Amendments.
        No
        modification or amendment of or supplement to this Agreement shall be valid
        or
        effective unless the same is in writing and signed by all parties hereto.
        The
        Trustee shall give prompt notice to the Custodian of any amendment or supplement
        to the Pooling and Servicing Agreement and furnish the Custodian with written
        copies thereof.

       

      Section
        5.3  GOVERNING
        LAW.
        THIS
        AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
        OF
        THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF
        OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

       

      Section
        5.4  Recordation
        of Agreement.
        To the
        extent permitted by applicable law, this Agreement is subject to recordation
        in
        all appropriate public offices for real property records in all the counties
        or
        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 and at the
        Trust’s expense, but only upon direction accompanied by an Opinion of Counsel
        reasonably satisfactory to the Depositor to the effect that the failure to
        effect such recordation is likely to materially and adversely affect the
        interests of the Certificateholders.

       

      For
        the
        purpose of facilitating the recordation of this Agreement as herein provided
        and
        for other purposes, this Agreement may be executed simultaneously in any
        number
        of counterparts, each of which counterparts shall be deemed to be an original,
        and such counterparts shall constitute but one and the same
        instrument.

       

      Section
        5.5  Severability
        of Provisions.  If
        any one or more of the covenants, agreements, provisions or terms of this
        Agreement shall be for any reason whatsoever held invalid, then such covenants,
        agreements, provisions or terms shall be deemed severable from the remaining
        covenants, agreements, provisions or terms of this Agreement and shall in
        no way
        affect the validity or enforceability of the other provisions of this Agreement
        or of the Certificates or the rights of the holders thereof.

       

      [Signature
        Page Attached]

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, this Agreement is executed as of the date first above
        written.

      

      
        	
                Address:

                388
                  Greenwich Street, 14th Floor

                New
                  York, New York 10013

                 

                Attention:
                  SACO I Trust, Series 2006-9

                Telecopy:
                  (212) 816-5527

              	
                CITIBANK,
                  N.A., not individually but solely as Trustee

                 

                By:__________________________________

                Name:

                Title:

              
	 	 
	
                Address:

                383
                  Madison Avenue

                New
                  York, New York 10179

              	
                BEAR
                  STEARNS ASSET BACKED SECURITIES I LLC

                 

                By:__________________________________

                Name: 

                Title: 

              
	 	 
	
                Address:

                2780
                  Lake Vista Drive

                Lewisville,
                  Texas 75067

                (Facsimile:
                  (469) 759-4714)

                Attention:
                  President or General Counsel

              	
                EMC
                  MORTGAGE CORPORATION

                 

                By:__________________________________

                Name: 

                Title:
                  

              
	 	 
	
                Address:

                2571
                  Busse Rd., Suite 200

                Elk
                  Grove Village, Illinois 60007

              	
                LASALLE
                  BANK NATIONAL ASSOCIATION,
                  as Custodian

                 

                By:__________________________________

                Name: 

                Title: 

              
	 	 
	
                Address:

                135
                  South
                  LaSalle Street, Suite 1625

                Chicago,
                  Illinois 60603

              	
                LASALLE
                  BANK NATIONAL ASSOCIATION, as Master Servicer and Securities 

                Administrator

                 

                By:__________________________________

                Name: 

                Title: 

              

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        August 2006 before me, a notary public in and for said State, personally
        appeared _________________ known to me to be a(n) __________________of Citibank,
        N.A., one of the parties that executed the within agreement, and also known
        to
        me to be the person who executed the within agreement on behalf of said party
        and acknowledged to me that such party 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

              

      

      [SEAL]

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        August 2006 before me, a notary public in and for said State, personally
        appeared ____________, known to me to be a _________________ of Bear Stearns
        Asset Backed Securities I LLC, and also known to me to be the person who
        executed the within instrument on behalf of said party, and acknowledged
        to me
        that such party 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

              

      

      [SEAL]

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF TEXAS

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF DALLAS

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        August 2006 before me, a notary public in and for said State, personally
        appeared ____________________, known to me to be a(n)
        _____________________ of EMC Mortgage Corporation, one of the parties that
        executed the within instrument, and also known to me to be the person who
        executed the within instrument on behalf of said party, and acknowledged
        to me
        that such party 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

              

      

      [Notarial
        Seal]

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF ILLINOIS

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        August 2006 before me, a notary public in and for said State, personally
        appeared ___________________, known to me to be a(n) __________________ of
        LaSalle Bank National Association, one of the parties that executed the within
        instrument, and also known to me to be the person who executed it on behalf
        of
        said party, and acknowledged to me that such party 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

              

      

      [Notarial
        Seal] 

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF ILLINOIS

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        August 2006 before me, a notary public in and for said State, personally
        appeared _______________, known to me to be an _______________ of LaSalle
        Bank
        National Association, one of the parties that executed the within instrument,
        and also known to me to be the person who executed it on behalf of said party,
        and acknowledged to me that such party 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

              

      

      [Notarial
        Seal] 

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        A

      

      MORTGAGE
        LOAN SCHEDULE

      

      (Provided
        upon request)

      

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        ONE

       

      FORM
        OF
        CUSTODIAN INITIAL CERTIFICATION

       

                                                  August
        30,
        2006

       

      Citibank,
        N.A.

      388
        Greenwich Street, 14th Floor

      New
        York,
        New York 10013

      Attn:
        Structured Finance - SACO I Trust, Series 2006-9

      

      LaSalle
        Bank National Association

      135
        South
        LaSalle Street, Suite 1625

      Chicago,
        Illinois 60603F

      Attn:
        Global Securities and Trust Services - SACO I Trust 2006-9

      

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067

       

      Attention:
        SACO I Inc., Series 2006-9

       

      
        	
                Re:

              	
                Custodial
                  Agreement, dated as of August 30, 2006, by and among Citibank,
                  N.A.,
                  LaSalle Bank National Association, Bear Stearns Asset Backed Securities
                  I
                  LLC and EMC Mortgage Corporation relating to SACO I Trust 2006-9,
                  Mortgage-Backed Certificates, Series
                  2006-9

              

      

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.3(a) of the above-captioned Custodial Agreement,
        the
        undersigned, as Custodian, hereby certifies that it has received the following
        documents with respect to each Mortgage Loan listed in the Mortgage Loan
        Schedule, with any exceptions listed on Schedule A attached hereto: (i) an
        original note, including any riders thereto, endorsed without recourse to
        the
        order of blank or to “Citibank, N.A., as Trustee for certificateholders of SACO
        I Trust 2006-9, Mortgage Pass-Through Certificates, Series 2006-9 under the
        Pooling and Servicing Agreement dated as of August 1, 2006 for SACO I Trust
        2006-9 Mortgage Pass-Through Certificates, Series 2006-9,” and showing an
        unbroken chain of endorsements from the original payee thereof to the person
        endorsing it to the Trustee; (ii) an original mortgage and, if the related
        mortgage loan is a MERS Loan, registered with MERS, noting the presence of
        the
        mortgage identification number and language indicating that such mortgage
        loan
        is a MERS Loan, which shall have been recorded (or, for Mortgage Loans other
        than the EMC Flow Loans, if the original is not available, a copy) with evidence
        of such recording indicated thereon (or if clause (x) in the proviso below
        applies, shall be in recordable form); (iii) unless the mortgage loan is
        a MERS
        Loan, the assignment (either an original or a copy, which may be in the form
        of
        a blanket assignment if permitted in the jurisdiction in which the mortgage
        property is located) to the Trustee of the mortgage with respect to each
        mortgage loan in the name of ___________________________, which shall have
        been
        recorded (of if clause (x) in the proviso below applies, shall be in recordable
        form); (iv) an original or a copy of all intervening assignments of the
        mortgage, if any, with evidence of recording thereon; (v) the original policy
        of
        title insurance or mortgagee’s certificate of title insurance or commitment or
        binder for title insurance, if available, or a copy thereof, or, in the event
        that such original title insurance policy is unavailable, a photocopy thereof,
        or in lieu thereof, a current lien search on the related mortgaged property;
        and
        (vi) originals or copies of all available assumption, modification or
        substitution agreements, if any; provided, however, that in lieu of the
        foregoing, the Seller may deliver the following documents, under the
        circumstances set forth below: (x) if any mortgage (other than the mortgages
        related to the EMC Flow Loans), assignment thereof to the Trustee or intervening
        assignments thereof have been delivered or are being delivered to recording
        offices for recording and have not been returned in time to permit their
        delivery as specified above, the Depositor may deliver a true copy thereof
        with
        a certification by the Seller or the title company issuing the commitment
        for
        title insurance, on the face of such copy, substantially as follows: “Certified
        to be a true and correct copy of the original, which has been transmitted
        for
        recording”; and (y) in lieu of the mortgage notes relating to the Mortgage Loans
        identified in the list attached hereto, the Depositor may deliver a lost
        note
        affidavit and indemnity and a copy of the original note, if
        available.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the above-captioned Custodial Agreement.

       

      
        	
                LASALLE
                  BANK NATIONAL ASSOCIATION, as Custodian

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        A

       

      (PROVIDED
        UPON REQUEST)

       

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        TWO

       

      FORM
        OF
        CUSTODIAN INTERIM CERTIFICATION

       

                                              [DATE]

       

      Citibank,
        N.A.

      388
        Greenwich Street, 14th Floor

      New
        York,
        New York 10013

      Attn:
        Structured Finance - SACO I Trust, Series 2006-9

      

      LaSalle
        Bank National Association

      135
        South
        LaSalle Street, Suite 1625

      Chicago,
        Illinois 60603

      Attn:
        Global Securities and Trust Services - SACO I Trust 2006-9

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067

       

      Attention:
        SACO I Inc., Series 2006-9

       

      
        	
                Re:

              	
                Custodial
                  Agreement, dated as of August 30, 2006, by and among Citibank,
                  N.A.,
                  LaSalle Bank National Association, Bear Stearns Asset Backed Securities
                  I
                  LLC and EMC Mortgage Corporation relating to SACO I Trust 2006-9,
                  Mortgage-Backed Certificates, Series
                  2006-9

              

      

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.3(b) of the above-captioned Custodial Agreement,
        the
        undersigned, as Custodian, hereby certifies that it has received and reviewed
        the documents described in its initial certification dated August 30, 2006
        and
        has determined that: all documents have been executed and received and that
        such
        documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule,
        with any exceptions listed on Schedule A attached hereto.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the above-captioned Custodial Agreement.

       

      
        	
                LASALLE
                  BANK NATIONAL ASSOCIATION, as Custodian

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        A

       

      (PROVIDED
        UPON REQUEST)

       

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        THREE

       

      FORM
        OF
        CUSTODIAN FINAL CERTIFICATION

       

      [DATE]

       

      Citibank,
        N.A.

      388
        Greenwich Street, 14th Floor

      New
        York,
        New York 10013

      Attn:
        Structured Finance - SACO I Trust, Series 2006-9

      

      LaSalle
        Bank National Association

      135
        South
        LaSalle Street, Suite 1625

      Chicago,
        Illinois 60603

      Attn:
        Global Securities and Trust Services - SACO I Trust 2006-9

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067

       

      Attention:
        SACO I Inc., Series 2006-9

       

      
        	
                Re:

              	
                Custodial
                  Agreement, dated as of August 30, 2006, by and among Citibank,
                  N.A.,
                  LaSalle Bank National Association, Bear Stearns Asset Backed Securities
                  I
                  LLC and EMC Mortgage Corporation relating to SACO I Trust 2006-9,
                  Mortgage-Backed Certificates, Series
                  2006-9

              

      

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.3(c) of the above-captioned Custodial Agreement,
        the
        undersigned, as Custodian, hereby certifies that it has received and reviewed
        the documents described in its initial certification dated August 30, 2006
        and
        has determined that: all documents have been executed and received and that
        such
        documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule,
        with any exceptions listed on Schedule A attached hereto.

      

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the above-captioned Custodial Agreement.

       

      
        	
                LASALLE
                  BANK NATIONAL ASSOCIATION, as Custodian

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        A

       

      (PROVIDED
        UPON REQUEST)

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        FOUR

       

      FORM
        OF
        REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPT

       

      

      

      To: [Name/Address
        of Owner]

       

      

      

      Attention:
        

       

      
        	
                Re:

              	
                Custodial
                  Agreement, dated as of August 30, 2006, by and among Citibank,
                  N.A.,
                  LaSalle Bank National Association, Bear Stearns Asset Backed Securities
                  I
                  LLC and EMC Mortgage Corporation relating to SACO I Trust 2006-9,
                  Mortgage-Backed Certificates, Series
                  2006-9

              

      

      

      In
        connection with the Mortgage Files that you hold pursuant to the Custodial
        Agreement, we request the release, and acknowledge receipt of the Mortgage
        file/[specify document] for the Mortgage Loan described below, the reason
        indicated.

      

      Mortgagor’s
        Name, Address and Zip Code:

       

      Mortgage
        Loan Number:

       

      Reason
        for Requesting Documents: (check one)

      

      _____
        1.
        Mortgage Loan paid in full. ([The Master Servicer] [A Servicer] [the Trustee]
        hereby certifies that all amounts received in connection therewith have been
        credited to
        __________________________________________________________________________.)

      

      _____
        2.
        Mortgage Loan in foreclosure.

      

      _____
        3.
        Repurchase. (The [Master Servicer] [Trustee] hereby certifies that the
        repurchase price has been credited to
        _____________________________________________.)

      

      _____
        4.
        Mortgage Loan liquidated by _______________________________________. ([The
        Master Servicer] [A Servicer] [The Trustee] hereby certifies that all proceeds
        of the foreclosure, insurance, condemnation or other liquidation have been
        finally received and credited to
        _____________________________________.

      

      _____
        5.
        Other (explain):  

       

      

        
          	
                  By:

                	 
	 	
                  (authorized
                    signer)

                
	
                  Issuer:

                	 
	
                  Address:

                	 
	
                  Date:

                	 

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        FIVE

      

      ELECTRONIC
        RELEASE REQUEST (Excel)

      
        	
                Collateral
                  Release Tasks 

              	
                 

              
	
                 

              	
                 

              
	
                Required
                  Field Header

              	
                Description

              
	
                 

              	
                 

              
	
                customer

              	
                Value
                  can be constant of '1018'
                  

              
	
                 

              	
                 

              
	
                poolnum

              	
                pool
                  number if available, can be left blank as well

              
	
                 

              	
                 

              
	
                loanid

              	
                EMC
                  loan#, required field

              
	
                 

              	
                 

              
	
                loc_code

              	
                Codes
                  must be mutually agreed upon with custodian. Examples are PDPO=
                  loans
                  released for payoff, FORC = loans released for foreclosure, OLIQ=
                  loans
                  released for repurchase, NLIQ = loans released for
                  non-liquidation/correction.

              
	
                 

              	
                 

              
	
                rel_code

              	
                Codes
                  must be mutually agreed upon with custodian. Examples are 

                1
                  =
                  payoff, 2 = foreclosure, 4 = repurchase, 5 =
                  non-liquidation.

              
	
                 

              	
                 

              
	
                rel_doclist

              	
                Can
                  be left blank

              
	
                 

              	
                 

              
	
                notation

              	
                “Name
                  of Person File Being Released To @ Company Name” (i.e. Sharon
                  Ayers@EMC)

              
	
                 

              	
                 

              
	
                reqstr

              	
                Can
                  be left blank

              
	
                 

              	
                 

              
	
                reqstr_sig

              	
                Signatory
                  code assigned to requestor, TBD

              
	
                 

              	
                 

              
	
                amend

              	
                0
                  =
                  new release request, 1= amend an existing released record (i.e.
                  FORC to
                  PDPO)

              

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        SIX

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      

      The
        assessment of compliance to be delivered by the Custodian shall address,
        at a
        minimum, the criteria identified below as “Applicable Servicing
        Criteria”:

      

      
        	
                Servicing
                  Criteria

              	
                Applicable

                Servicing
                  Criteria

              
	
                Reference

              	
                Criteria

              	 
	 	
                General
                  Servicing Considerations

              	 
	
                1122(d)(1)(i)

              	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction
                  agreements

              	 
	
                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

              	 
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the pool assets 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.

              	 
	 	
                Cash
                  Collection and Administration

              	 
	
                1122(d)(2)(i)

              	
                Payments
                  on pool assets are deposited into the appropriate custodial bank
                  accounts
                  and related bank clearing accounts no more than two business days
                  following receipt, or such other number of days specified in the
                  transaction agreements.

              	 
	
                1122(d)(2)(ii)

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel.

              	 
	
                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.

              	 
	
                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.

              	 
	
                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 institutions” 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. 

              	 
	
                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
                  reconciliations; 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.

              	 
	 	
                Investor
                  Remittances and Reporting

              	 
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements, (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors; or the trustee’s records as to the total unpaid principal
                  balance and number of pool assets serviced by the
                  servicer.

              	 
	
                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.

              	 
	
                1122(d)(3)(iii)

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements.

              	 
	
                1122(d)(3)(iv)

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank
                  statements.

              	 
	 	
                Pool
                  Asset Administration

              	 
	
                1122(d)(4)(i)

              	
                Collateral
                  or security on pool assets is maintained as required by the transaction
                  agreements or related asset pool documents.

              	
                √

              
	
                1122(d)(4)(ii)

              	
                Pool
                  assets and related documents are safeguarded as required by the
                  transaction agreements.

              	
                √

              
	
                1122(d)(4)(iii)

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements

              	
                √1

              
	
                1122(d)(4)(iv)

              	
                Payments
                  on pool assets, including any payoffs, made in accordance with
                  the related
                  pool asset documents are posted to the servicer’s obligor records
                  maintained no more than two business days after receipt, or such
                  other
                  number of days specified in the transaction agreements, and allocated
                  to
                  principal, interest or other items (e.g., escrow) in accordance
                  with the
                  related pool asset documents.

              	 
	
                1122(d)(4)(v)

              	
                The
                  servicer’s records regarding the pool assets agree with the servicer’s
                  records with respect to an obligor’s unpaid principal
                  balance.

              	 
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor’s pool asset (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 of recovery actions (e.g., forbearance plans, modifications
                  and
                  deed 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
                  documents.

              	 
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a pool
                  asset is delinquent in accordance with the transaction agreements.,
                  Such
                  records are maintained in at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent pool assets including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or
                  unemployment).

              	 
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for pool assets with variable
                  rates
                  are computed based on the related pool asset documents.

              	 
	
                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts);
                  (A) such
                  funds are analyzed, in accordance with the obligor’s pool asset documents,
                  on at least an annual basis, or such other period specified in
                  the
                  transaction agreements; (B) interest on such funds is paid, or
                  credited,
                  to obligors in accordance with applicable pool asset documents
                  and state
                  laws; and (C) such funds are returned to the obligor within 3-
                  calendar
                  days of full repayment of the related pool asset, or such other
                  number of
                  days specified in the transaction agreements.

              	 
	
                1122(d)(4)(xi)

              	
                Payments
                  made on behalf of an obligor (such as tax ore 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 service 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 funds are recognized and recorded
                  in
                  accordance with the transaction agreements.

              	 
	
                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.

              	 

      

      

      

      

      

        

        
          1 
            Only
            with respect to the logistics of adding, removing or substituting loan
            files.

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        K

       

      FORM
        OF
        WELLS FARGO CUSTODIAL AGREEMENT

       

      THIS
        CUSTODIAL AGREEMENT (as amended and supplemented from time to time, the
“Agreement”), dated as of August 30, 2006, by and among CITIBANK, N.A., not
        individually but solely as trustee under the Pooling and Servicing Agreement
        defined below (in such capacity, including its successors under the Pooling
        and
        Servicing Agreement defined below, the “Trustee”), BEAR STEARNS ASSET BACKED
        SECURITIES I LLC, as depositor (together with any successor in interest,
        the
“Depositor”), EMC MORTGAGE CORPORATION as seller (in such capacity, “EMC” or the
“Seller”) and as company (together with any successor in interest or successor
        under the Pooling and Servicing Agreement referred to below, the “Company”),
LASALLE
        BANK NATIONAL ASSOCIATION, as master servicer (together
        with any successor in interest or successor under the Pooling and Servicing
        Agreement referred to below, the “Master Servicer”) and securities administrator
        (together with any successor in interest or successor under the Pooling and
        Servicing Agreement referred to below, the “Securities Administrator”) and WELLS
        FARGO BANK, N.A., as custodian (together with any successor in interest or
        any
        successor appointed hereunder, the “Custodian”).

       

      WITNESSETH
        THAT:

       

      WHEREAS,
        the Depositor, EMC, the Master Servicer, the Securities Administrator and
        the
        Trustee have entered into a Pooling and Servicing Agreement, dated as of
        August
        1, 2006, relating to the issuance of SACO I Trust 2006-9, Mortgage-Backed
        Certificates, Series 2006-9 (as in effect on the date of this Agreement,
        and as
        amended and supplemented from time to time, the “Pooling and Servicing
        Agreement”) and all custodian obligations are defined herein. In the event any
        custodian obligations are defined in the Pooling and Servicing Agreement,
        this
        custodial agreement shall supercede.

       

      WHEREAS,
        the Custodian has agreed to act as agent for the Trustee on behalf of the
        Certificateholders for the purposes of receiving and holding certain documents
        and other instruments delivered by the Depositor, the Seller or the Master
        Servicer under the Pooling and Servicing Agreement and the Servicers under
        their
        respective Servicing Agreements, all upon the terms and conditions and subject
        to the limitations hereinafter set forth. In the event any custodian terms,
        conditions and obligations are defined in the Pooling and Servicing Agreement,
        this custodial agreement shall supercede;

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants and
        agreements hereinafter set forth, the Trustee, the Depositor, the Seller,
        the
        Master Servicer, the Company and the Custodian hereby agree as
        follows:

       

      ARTICLE
        I

      DEFINITIONS

       

      Capitalized
        terms used in this Agreement and not defined herein shall have the meanings
        assigned in the Pooling and Servicing Agreement, unless otherwise required
        by
        the context herein.

       

      ARTICLE
        II

      CUSTODY
        OF MORTGAGE DOCUMENTS

       

      Section
        2.1  Custodian
        to Act as Agent: Acceptance of Mortgage Files.
        The
        Custodian, as the duly appointed custodial agent of the Trustee for these
        purposes, acknowledges (subject to any exceptions noted in the Initial
        Certification referred to in Section 2.3(a)) receipt of the Mortgage Files
        relating to the Mortgage Loans identified on the schedule attached hereto
        (the
“Mortgage Files”) and declares that it holds and will hold such Mortgage Files
        as agent for the Trustee, in trust, for the use and benefit of all present
        and
        future Certificateholders.

       

      Section
        2.2  Recordation
        of Assignments.
        If any
        Mortgage File includes one or more assignments of Mortgage that have not
        been
        recorded pursuant to the provisions of Section 2.01 of the Pooling and Servicing
        Agreement and the related Mortgage Loan is not a MOM Loan or the related
        Mortgaged Properties are located in jurisdictions specifically excluded by
        the
        Opinion of Counsel delivered to the Trustee pursuant to Section 2.01 of the
        Pooling and Servicing Agreement, each such assignment shall be delivered
        by the
        Custodian to the related Seller for the purpose of recording it in the
        appropriate public office for real property records, and the Sellers, at
        no
        expense to the Custodian, shall promptly cause to be recorded in the appropriate
        public office for real property records each such assignment of Mortgage
        and,
        upon receipt thereof from such public office, shall return each such assignment
        of Mortgage to the Custodian.

       

      Section
        2.3  Review
        of Mortgage Files.

       

      (a)  On
        or
        prior to the Closing Date, in accordance with Section 2.02 of the Pooling
        and
        Servicing Agreement, the Custodian shall deliver to EMC, the Master Servicer
        and
        the Trustee an Initial Certification in the form annexed hereto as Exhibit
        One
        evidencing receipt (subject to any exceptions noted therein) of a Mortgage
        File
        for each of the Mortgage Loans listed on Schedule A attached hereto (the
        “Mortgage Loan Schedule”).

       

      (b)  Within
        90
        days of the Closing Date, the Custodian agrees, for the benefit of
        Certificateholders, to review, in accordance with the provisions of Section
        2.02
        of the Pooling and Servicing Agreement, each such document, and shall deliver
        to
        EMC, the Master Servicer and the Trustee an Interim Certification in the
        form
        annexed hereto as Exhibit Two to the effect that all such documents have
        been
        executed and received and that such documents relate to the Mortgage Loans
        identified on the Mortgage Loan Schedule, except for any exceptions listed
        on
        Schedule A attached to such Interim Certification. The Custodian shall be
        under
        no duty or obligation to inspect, review or examine said documents, instruments,
        certificates or other papers to determine that the same 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.

       

      (c)  Not
        later
        than 180 days after the Closing Date, the Custodian shall review, for the
        benefit of Certificateholders, the Mortgage Files as provided in Section
        2.02 of
        the Pooling and Servicing Agreement and deliver to the Seller, the Master
        Servicer and the Trustee a Final Certification in the form annexed hereto
        as
        Exhibit Three evidencing the completeness of the Mortgage Files. 

       

      (d)  In
        reviewing the Mortgage Files as provided herein and in the Pooling and Servicing
        Agreement, the Custodian shall make no representation as to and shall not
        be
        responsible to verify (i) the validity, legality, enforceability, due
        authorization, recordability, sufficiency or genuineness of any of the documents
        included in any Mortgage File or (ii) the collectability, insurability,
        effectiveness or suitability of any of the documents in any Mortgage
        File.

       

      Upon
        receipt of written request from EMC, the Master Servicer or the Trustee,
        the
        Custodian shall as soon as practicable supply such Person with a list of
        all of
        the documents relating to the Mortgage Loans missing from the Mortgage
        Files.

       

      Section
        2.4  Notification
        of Breaches of Representations and Warranties.
        Upon
        discovery by the Custodian of a breach of any representation or warranty
        made by
        the Depositor as set forth in the Pooling and Servicing Agreement with respect
        to a Mortgage Loan relating to a Mortgage File, the Custodian shall give
        prompt
        written notice to the Depositor, the Master Servicer and the
        Trustee.

       

      Section
        2.5  Custodian
        to Cooperate: Release of Mortgage Files.
        Upon
        receipt of written notice from the Master Servicer or Trustee that EMC has
        repurchased one or more Mortgage Loans pursuant to Article II of the Pooling
        and
        Servicing Agreement, and a request for release (a “Request for Release”)
        confirming that the purchase price therefor has been deposited in the Master
        Servicer Collection Account or the Distribution Account, then the Custodian
        agrees to promptly release to EMC the related Mortgage Files.

       

      Upon
        the
        Custodian’s receipt of a Request for Release substantially in the form of
        Exhibit G to the Pooling and Servicing Agreement signed by a Servicing Officer
        of a Servicer, stating that it has received payment in full of a Mortgage
        Loan
        or that payment in full will be escrowed in a manner customary for such
        purposes, the Custodian agrees promptly to release to such Servicer, the
        related
        Mortgage File. The Depositor shall deliver to the Custodian and the Custodian
        agrees to review in accordance with the provisions of this Agreement the
        Mortgage Note and other documents constituting the Mortgage File with respect
        to
        any Replacement Mortgage Loan.

       

      From
        time
        to time as is appropriate for the servicing or foreclosure of any Mortgage
        Loan,
        including, for this purpose, the Company or the related Servicer, as applicable,
        shall deliver to the Custodian a Request for Release signed by a Servicing
        Officer requesting that possession of all of the Mortgage File be released
        to
        the Company or the related Servicer, as applicable, and certifying as to
        the
        reason for such release and that such release will not invalidate any insurance
        coverage provided in respect of the Mortgage Loan. Upon receipt of the
        foregoing, the Custodian shall deliver the Mortgage File to the Company or
        the
        related Servicer, as applicable. All Mortgage Files so released to the Company
        or the related Servicer, as applicable, shall be held by it in trust for
        the
        Trustee for the use and benefit of all present and future Certificateholders.
        The Company or the related Servicer, as applicable, shall cause each Mortgage
        File or any document therein so released to be returned to the Custodian
        when
        the need therefore by the Company or the related Servicer, as applicable,
        no
        longer exists, unless (i) the Mortgage Loan has been liquidated and the
        Liquidation Proceeds relating to the Mortgage Loan have been deposited in
        the
        Master Servicer Collection Account or the Distribution Account or (ii) the
        Mortgage File or such document has been delivered to an attorney, or to a
        public
        trustee or other public official as required by law, for purposes of initiating
        or pursuing legal action or other proceedings for the foreclosure of the
        Mortgaged Property either judicially or non-judicially, and the Company or
        the
        related Servicer, as applicable, has delivered to the Custodian a certificate
        of
        a Servicing Officer certifying as to the name and address of the Person to
        which
        such Mortgage File or such document was delivered and the purpose or purposes
        of
        such delivery.

       

      At
        any
        time that the Company or the related Servicer is required to deliver to the
        Custodian a Request for Release, the Company or the related Servicer, as
        applicable, shall deliver two copies of the Request for Release if delivered
        in
        hard copy or the Company or the related Servicer, as applicable, may furnish
        such Request for Release electronically to the Custodian, in which event
        the
        Servicing Officer transmitting the same shall be deemed to have signed the
        Request for Release. In connection with any Request for Release of a Mortgage
        File because of a repurchase of a Mortgage Loan, such Request for Release
        shall
        be accompanied by an assignment of mortgage, without recourse, representation
        or
        warranty from the Trustee to EMC (unless such Mortgage Loan is a MOM Loan)
        and
        the related Mortgage Note shall be endorsed without recourse, representation
        or
        warranty by the Trustee and be returned to EMC; provided, however, that in
        the
        case of a Mortgage Loan that is registered on the MERS System, no assignment
        of
        mortgage or endorsement of the Mortgage Note by the Trustee shall be required.
        In connection with any Request for Release of a Mortgage File because of
        the
        payment in full of a Mortgage Loan, such Request for Release shall be
        accompanied by a certificate of satisfaction or other similar instrument
        to be
        executed by or on behalf of the Trustee and returned to the Company or the
        related Servicer, as applicable.

       

      Section
        2.6  Assumption
        Agreements.
        In the
        event that any assumption agreement, substitution of liability agreement
        or sale
        of servicing agreement is entered into with respect to any Mortgage Loan
        subject
        to this Agreement in accordance with the terms and provisions of the Pooling
        and
        Servicing Agreement, the Master Servicer shall enforce any obligation of
        the
        related Servicer under the related Servicing Agreement, or in the case of
        EMC as
        company, the Pooling and Servicing Agreement, to notify the Custodian that
        such
        assumption or substitution agreement has been completed by forwarding to
        the
        Custodian the original of such assumption or substitution agreement, which
        shall
        be added to the related Mortgage File and, for all purposes, shall be considered
        a part of such Mortgage File to the same extent as all other documents and
        instruments constituting parts thereof.

       

      ARTICLE
        III

      CONCERNING
        THE CUSTODIAN

       

      Section
        3.1  Custodian
        as Bailee and Agent of the Trustee.
        With
        respect to each Mortgage Note, Mortgage and other documents constituting
        each
        Mortgage File which are delivered to the Custodian, the Custodian is exclusively
        the bailee and custodial agent of the Trustee and has no instructions to
        hold
        any Mortgage Note or Mortgage for the benefit of any person other than the
        Trustee and the Certificateholders and undertakes to perform such duties
        and
        only such duties as are specifically set forth in this Agreement and in the
        Pooling and Servicing Agreement. Except upon compliance with the provisions
        of
        Section 2.5 of this Agreement, no Mortgage Note, Mortgage or Mortgage File
        shall
        be delivered by the Custodian to the Company, the Depositor, any Servicer,
        the
        Securities Administrator or the Master Servicer or otherwise released from
        the
        possession of the Custodian.

       

      Section
        3.2  Custodian
        May Own Certificates.
        The
        Custodian and its affiliates in their individual or any other capacity may
        become the owner or pledgee of Certificates with the same rights such persons
        would have if the Custodian were not Custodian hereunder.

       

      Section
        3.3  Custodian’s
        Fees and Expenses.
        The
        Master Servicer covenants and agrees to pay to the Custodian from time to
        time a
        fee as agreed upon by such parties as reasonable compensation for all services
        rendered by it in the exercise and performance of any of the powers and duties
        hereunder of the Custodian. Upon its request, the Custodian shall be paid
        or
        reimbursed from the Trust Fund for all reasonable expenses, disbursements
        and
        advances incurred or made by the Custodian in accordance with any of the
        provisions of this Agreement (including the reasonable compensation and the
        expenses and disbursements of its legal counsel and of all persons not regularly
        in its employ), except any such expense, disbursement or advance as may arise
        from the Custodian’s negligence or bad faith or to the extent that such cost or
        expense is indemnified by the Depositor pursuant to the Pooling and Servicing
        Agreement.

       

      Section
        3.4  Custodian
        May Resign; Trustee May Remove Custodian.
        The
        Custodian may resign from the obligations and duties hereby imposed upon
        it as
        such obligations and duties relate to its acting as Custodian of the Mortgage
        Loans hereunder. Upon receiving such written notice of resignation, the Trustee
        shall either take custody of the Mortgage Files itself and give prompt written
        notice thereof to the Depositor, the Master Servicer and the Custodian, or
        promptly appoint a successor Custodian by written instrument, in duplicate,
        one
        copy of which instrument shall be delivered to the resigning Custodian and
        one
        copy to the successor Custodian. If the Trustee shall not have taken custody
        of
        the Mortgage Files and no successor Custodian shall have been so appointed
        and
        have accepted appointment within 30 days after the giving of such written
        notice
        of resignation, the resigning Custodian may petition any court of competent
        jurisdiction for the appointment of a successor Custodian.

       

      The
        Trustee, at the direction of 25% of the Certificateholders, shall remove
        the
        Custodian at any time upon 60 days prior written notice to Custodian. In
        such
        event, the Trustee shall appoint, or petition a court of competent jurisdiction
        to appoint, a successor Custodian hereunder. Any successor Custodian shall
        be a
        depository institution subject to supervision or examination by federal or
        state
        authority shall be able to satisfy the other requirements contained in Section
        3.6 and shall be unaffiliated with the Master Servicer, the Company and the
        Depositor.

       

      Any
        resignation or removal of the Custodian and appointment of a successor Custodian
        pursuant to any of the provisions of this Section 3.4 shall become effective
        upon acceptance of appointment by the successor Custodian. The Trustee shall
        give prompt notice to the Depositor and the Master Servicer of the appointment
        of any successor Custodian. Notwithstanding anything to the contrary set
        forth
        herein, no successor Custodian shall be appointed by the Trustee without
        the
        prior approval of the Depositor and the Master Servicer.

       

      Section
        3.5  Merger
        or Consolidation of Custodian.
        Any
        Person into which the Custodian may be merged or converted or with which
        it may
        be consolidated, or any Person resulting from any merger, conversion or
        consolidation to which the Custodian shall be a party, or any Person succeeding
        to the business of the Custodian (by sale of assets, stock or a combination
        of
        both), shall be the successor of the Custodian 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 that such
        successor is a depository institution subject to supervision or examination
        by
        federal or state authority and is able to satisfy the other requirements
        contained in Section 3.6.

       

      Section
        3.6  Representations
        of the Custodian.
        The
        Custodian hereby represents that it is a depository institution subject to
        supervision or examination by a federal or state authority, has a combined
        capital and surplus of at least $15,000,000 and is qualified to do business
        in
        the jurisdictions in which it will hold any Mortgage File.

       

      Section
        3.7  Limitation
        on Liability.
        Neither
        the Custodian nor any of its directors, officers, agents or employees, shall
        be
        liable for any action taken or omitted to be taken by it or them hereunder
        or in
        connection herewith in good faith and believed (which belief may be based
        upon
        the opinion or advice of counsel selected by it in the exercise of reasonable
        care) by it or them to be within the purview of this Agreement, except for
        its
        or their own negligence, bad faith or willful misconduct. The Custodian and
        any
        director, officer, employee or agent of the Custodian 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. In no event shall the Custodian
        or its directors, officers, agents and employees be held liable for any special,
        indirect or consequential damages (“Special Damages”) resulting from any action
        taken or omitted to be taken by it or them hereunder or in connection herewith
        even if advised of the possibility of such damages.

       

      Notwithstanding
        anything herein to the contrary, the Custodian agrees to indemnify the Trust
        Fund and the Trustee and each of their respective officers, directors and
        agents
        for any and all liabilities, obligations, losses, damages, payments, costs
        or
        expenses of any kind whatsoever (except Special Damages) that may be imposed
        on,
        incurred by or asserted against the Trustee or the Trust Fund, due to any
        act or
        omission by the Custodian with respect to the Mortgage Files; provided, however,
        that the Custodian shall not be liable to any of the foregoing Persons for
        any
        amount and any portion of any such amount resulting from the willful
        misfeasance, bad faith or negligence of such Person. The provisions of this
        Section 3.7 shall survive the termination of this Custodial
        Agreement.

       

      The
        Custodian and its directors, officers, employees and agents shall be entitled
        to
        indemnification and defense from the Trust Fund for any loss, liability damages,
        payments, costs or expense incurred without negligence, willful misconduct,
        bad
        faith on their part, arising out of, or in connection with, the acceptance
        or
        administration of the custodial arrangement created hereunder, including
        without
        limitation the costs and expenses of defending themselves against any claim
        or
        liability in connection with the exercise or performance of any of their
        powers
        or duties hereunder.

       

      ARTICLE
        IV

      COMPLIANCE
        WITH REGULATION AB

       

      Section
        4.1  Intent
        of the Parties; Reasonableness.
        The
        parties hereto acknowledge and agree that the purpose of this Article IV
        is to
        facilitate compliance by the Depositor with the provisions of Regulation
        AB and
        related rules and regulations of the Commission. The Depositor shall not
        exercise its right to request delivery of information or other performance
        under
        these provisions other than in good faith, or for purposes other than compliance
        with the Securities Act, the Exchange Act and the rules and regulations of
        the
        Commission under the Securities Act and the Exchange Act. Each of the parties
        hereto acknowledges that interpretations of the requirements of Regulation
        AB
        may change over time, whether due to interpretive guidance provided by the
        Commission or its staff, consensus among participants in the mortgage-backed
        securities markets, advice of counsel, or otherwise, and agrees to comply
        with
        requests made by the Depositor in good faith for delivery of information
        under
        these provisions on the basis of evolving interpretations of Regulation AB.
        The
        Custodian shall cooperate reasonably with the Depositor to deliver to the
        Depositor (including any of its assignees or designees), any and all disclosure,
        statements, reports, certifications, records and any other information necessary
        in the reasonable, good faith determination of the Depositor to permit the
        Depositor to comply with the provisions of Regulation AB.

       

      Section
        4.2  Additional
        Representations and Warranties of the Custodian.

       

      (a)  The
        Custodian hereby represents and warrants that the information set forth in
        the
        Prospectus Supplement under the caption “Description of the Certificates - The
        Custodians” (the “Custodian Disclosure”) does not contain any untrue statement
        of a material fact or omit to state a material fact required to be stated
        therein or necessary in order to make the statements therein, in the light
        of
        the circumstances under which they were made, not misleading.

       

      (e)  The
        Custodian shall be deemed to represent to the Depositor as of the date hereof
        and on each date on which information is provided to the Depositor under
        Section
        4.3 that, except as disclosed in writing to the Depositor prior to such date:
        (i) there are no aspects of its financial condition that could have a material
        adverse effect on the performance by it of its Custodian obligations under
        this
        Agreement or any other Securitization Transaction as to which it is the
        custodian; (ii) there are no material legal or governmental proceedings pending
        (or known to be contemplated) against it; and (iii) there are no affiliations,
        relationships or transactions relating to the Custodian with respect to the
        Depositor or any sponsor, issuing entity, servicer, trustee, originator,
        significant obligor, enhancement or support provider or other material
        transaction party (as such terms are used in Regulation AB) relating to the
        Securitization Transaction contemplated by the Agreement, as identified by
        the
        Depositor to the Custodian in writing as of the Closing Date (each, a
“Transaction Party”).

       

      (f)  If
        so
        requested by the Depositor on any date following the Closing Date, the Custodian
        shall, within five Business Days following such request, confirm in writing
        the
        accuracy of the representations and warranties set forth in paragraph (a)
        of
        this Section or, if any such representation and warranty is not accurate
        as of
        the date of such confirmation, provide reasonably adequate disclosure of
        the
        pertinent facts, in writing, to the requesting party. Any such request from
        the
        Depositor shall not be given more than once each calendar quarter, unless
        the
        Depositor shall have a reasonable basis for a determination that any of the
        representations and warranties may not be accurate.

       

      Section
        4.3  Additional
        Information to Be Provided by the Custodian.
        For so
        long as the Certificates are outstanding, for the purpose of satisfying the
        Depositor's reporting obligation under the Exchange Act with respect to any
        class of Certificates, the Custodian shall (a) notify the Depositor in writing
        of any material litigation or governmental proceedings pending against the
        Custodian that would be material to Certificateholders, and (b) provide to
        the
        Depositor a written description of such proceedings. Any notices and
        descriptions required under this Section 4.3 shall be given no later than
        five
        Business Days prior to the Determination Date following the month in which
        the
        Custodian has knowledge of the occurrence of the relevant event. As of the
        date
        the Depositor, the Securities Administrator or Master Servicer files each
        Report
        on Form 10-D or Form 10-K with respect to the Certificates, the Custodian
        will
        be deemed to represent that any information previously provided under this
        Section 4.3, if any, is materially correct and does not have any material
        omissions unless the Custodian has provided an update to such
        information.

       

      Section
        4.4  Report
        on Assessment of Compliance and Attestation.
        On or
        before March 15th of each calendar year, the Custodian shall:

       

      (a)  deliver
        to Securities Administrator and the Depositor a report regarding the Custodian’s
        assessment of compliance (an “Assessment of Compliance”) with the Servicing
        Criteria during the preceding calendar year, as required under Rules 13a-18
        and
        15d-18 of the Exchange Act and Item 1122 of Regulation AB. The Assessment
        of
        Compliance, as set forth in Regulation AB, must contain (i) a statement by
        such
        officer of its responsibility for assessing compliance with the Servicing
        Criteria applicable to the Custodian, (ii) a statement by such officer that
        the
        Custodian used the Servicing Criteria attached as Exhibit Four hereto, and
        which
        will also be attached to the Assessment of Compliance, to assess compliance
        with
        the Servicing Criteria applicable to the Custodian, (iii) an assessment by
        such
        officer of the Custodian’s compliance with the applicable Servicing Criteria for
        the period consisting of the preceding calendar year, including disclosure
        of
        any material instance of noncompliance with respect thereto during such period,
        which assessment shall be based on the activities the Custodian performs
        with
        respect to asset-based securities transactions taken as a whole involving
        the
        Custodian, that are backed by the same asset type as the Mortgage Loans,
        (iv) a
        statement that a registered public accounting firm has issued an attestation
        report on the Custodian’s Assessment of Compliance for the period consisting of
        the preceding calendar year, and (v) a statement as to which of the Servicing
        Criteria, if any, are not applicable to the Custodian, which statement shall
        be
        based on the activities the Custodian performs with respect to asset-backed
        securities transactions taken as a whole involving the Custodian, that are
        backed by the same asset type as the Mortgage Loans. Such report at a minimum
        shall address each of the Servicing Criteria specified on Exhibit Four hereto
        which are indicated as applicable to the Custodian; and

       

      (b)  deliver
        to the Securities Administrator and the Depositor an Attestation Report (an
        “Attestation Report”) by a registered public accounting firm that attests to,
        and reports on, the Assessment of Compliance made by the Custodian, as required
        by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of Regulation
        AB, which Attestation Report must be made in accordance with standards for
        attestation reports issued or adopted by the Public Company Accounting Oversight
        Board.

       

      (c)  Notwithstanding
        the foregoing, an Assessment of Compliance is not required to be delivered
        by
        the Custodian unless it is required as part of a Form 10-K with respect to
        the
        Trust Fund.

       

      Section
        4.5  Indemnification;
        Remedies.

       

      (a)  The
        Custodian shall indemnify the Depositor, each affiliate of the Depositor,
        the
        Securities Administrator, the Master Servicer and each broker dealer acting
        as
        underwriter, placement agent or initial purchaser of the Certificates or
        each
        Person who controls any of such parties (within the meaning of Section 15
        of the
        Securities Act and Section 20 of the Exchange Act); and the respective present
        and former directors, officers, employees and agents of each of the foregoing,
        and shall hold each of them harmless from and against any losses, damages,
        penalties, fines, forfeitures, legal fees and expenses and related costs,
        judgments, and any other costs, fees and expenses that any of them may sustain
        arising out of or based upon:

       

      (i)  (A)
        any
        untrue statement of a material fact contained or alleged to be contained
        in the
        Custodian Disclosure and any information, report, certification, accountants’
attestation or other material provided under this Article IV by or on behalf
        of
        the Custodian (collectively, the “Custodian Information”), or (B) the omission
        or alleged omission to state in the Custodian Information a material fact
        required to be stated in the Custodian Information or necessary in order
        to make
        the statements therein, in the light of the circumstances under which they
        were
        made, not misleading; or

       

      (ii)  any
        failure by the Custodian to deliver any information, report, certification,
        accountants’ attestation or other material when and as required under this
        Article IV.

       

      (b)  In
        the
        case of any failure of performance described in clause (ii) of Section 4.5(a),
        the Custodian shall promptly reimburse the Depositor for all costs reasonably
        incurred by the Depositor in order to obtain the information, report,
        certification, accountants’ letter or other material not delivered as required
        by the Custodian.

       

      ARTICLE
        V

      MISCELLANEOUS
        PROVISIONS

       

      Section
        5.1  Notices.
        All
        notices, requests, consents and demands and other communications required
        under
        this Agreement or pursuant to any other instrument or document delivered
        hereunder shall be in writing and, unless otherwise specifically provided,
        may
        be delivered personally, by telegram or telex, or by registered or certified
        mail, postage prepaid, return receipt requested, at the addresses specified
        on
        the signature page hereof (unless changed by the particular party whose address
        is stated herein by similar notice in writing), in which case the notice
        will be
        deemed delivered when received.

       

      Section
        5.2  Amendments.
        No
        modification or amendment of or supplement to this Agreement shall be valid
        or
        effective unless the same is in writing and signed by all parties hereto.
        The
        Trustee shall give prompt notice to the Custodian of any amendment or supplement
        to the Pooling and Servicing Agreement and furnish the Custodian with written
        copies thereof.

       

      Section
        5.3  GOVERNING
        LAW.
        THIS
        AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
        OF
        THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF
        OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

       

      Section
        5.4  Recordation
        of Agreement.
        To the
        extent permitted by applicable law, this Agreement is subject to recordation
        in
        all appropriate public offices for real property records in all the counties
        or
        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 and at the
        Trust’s expense, but only upon direction accompanied by an Opinion of Counsel
        reasonably satisfactory to the Depositor to the effect that the failure to
        effect such recordation is likely to materially and adversely affect the
        interests of the Certificateholders.

       

      For
        the
        purpose of facilitating the recordation of this Agreement as herein provided
        and
        for other purposes, this Agreement may be executed simultaneously in any
        number
        of counterparts, each of which counterparts shall be deemed to be an original,
        and such counterparts shall constitute but one and the same
        instrument.

       

      Section
        5.5  Severability
        of Provisions.
        If any
        one or more of the covenants, agreements, provisions or terms of this Agreement
        shall be for any reason whatsoever held invalid, then such covenants,
        agreements, provisions or terms shall be deemed severable from the remaining
        covenants, agreements, provisions or terms of this Agreement and shall in
        no way
        affect the validity or enforceability of the other provisions of this Agreement
        or of the Certificates or the rights of the holders thereof.

       

      [Signature
        Page Follows]

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, this Agreement is executed as of the date first above
        written.

       

      
        	
                Address:

                388
                  Greenwich Street, 14th Floor

                New
                  York, New York 10013

                Attention:
                  SACO I Trust, Series 2006-9

                Telecopy
                  (212) 816-5527

              	
                CITIBANK,
                  N.A., as Trustee

                By:__________________________________

                Name:
                  

                Title:
                  

              
	 	 
	
                Address:

                383
                  Madison Avenue

                New
                  York, New York 10179

              	
                BEAR
                  STEARNS ASSET BACKED SECURITIES I LLC

                By:__________________________________

                Name: 

                Title: 

              
	 	 
	
                Address:

                2780
                  Lake Vista Drive

                Lewisville,
                  Texas 75067

                (Facsimile:
                  (469) 759-4714)

                Attention:
                  President or General Counsel

              	
                EMC
                  MORTGAGE CORPORATION

                By:__________________________________

                Name: 

                Title:

              
	 	 
	
                Address:

                1015
                  10th Avenue Southeast, MS 0031

                Minneapolis,
                  MN 55414

                Attention:
                  SACO I 2006-9

              	
                WELLS
                  FARGO BANK, N.A., as Custodian

                By:__________________________________

                Name:

                Title:

              
	 	 
	
                Address:

                135
                  South
                  LaSalle Street, Suite 1625

                Chicago,
                  IL 60603

              	
                LASALLE
                  BANK NATIONAL ASSOCIATION, as Master Servicer and Securities
                  Administrator

                By:__________________________________

                Name: 

                Title: 

              

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        August 2006 before me, a notary public in and for said State, personally
        appeared _________________ known to me to be a(n) __________________of Citibank,
        N.A., one of the parties that executed the within agreement, and also known
        to
        me to be the person who executed the within agreement on behalf of said party
        and acknowledged to me that such party 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

              

      

      [SEAL]

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        August 2006 before me, a notary public in and for said State, personally
        appeared _____________, known to me to be a _________________ of Bear Stearns
        Asset Backed Securities I LLC, and also known to me to be the person who
        executed the within instrument on behalf of said party, and acknowledged
        to me
        that such party 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

              

      

      [SEAL]

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF TEXAS

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF DALLAS

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        August 2006 before me, a notary public in and for said State, personally
        appeared _______________________, known to me to be a(n) __________________
        of
        EMC Mortgage Corporation, one of the parties that executed the within
        instrument, and also known to me to be the person who executed the within
        instrument on behalf of said party, and acknowledged to me that such party
        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

              

      

      [SEAL]

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF MINNESOTA

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF HENNEPIN

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        August 2006 before me, a notary public in and for said State, personally
        appeared _________________ known to me to be a(n) __________________of Wells
        Fargo Bank, N.A., one of the parties that executed the within agreement,
        and
        also known to me to be the person who executed the within agreement on behalf
        of
        said party and acknowledged to me that such party 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

              

      

      [SEAL]

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF ILLINOIS

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        August 2006 before me, a notary public in and for said State, personally
        appeared ____________________ known to me to be a(n) ____________________of
        LaSalle Bank National Association, one of the parties that executed the within
        agreement, and also known to me to be the person who executed the within
        agreement on behalf of said party and acknowledged to me that such party
        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

              

      

      [SEAL]

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        A

      

      MORTGAGE
        LOAN SCHEDULE

      

      (Provided
        upon request)

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        ONE

       

      FORM
        OF
        CUSTODIAN INITIAL CERTIFICATION

       

                                              August
        30,
        2006

       

      Citibank,
        N.A.

      388
        Greenwich Street, 14th Floor

      New
        York,
        New York 10013

      Attn:
        Structured Finance - SACO I Trust, Series 2006-9

       

      LaSalle
        Bank National Association

      135
        South
        LaSalle Street, Suite 1625

      Chicago,
        Illinois 60603

      Attn:
        Global Securities and Trust Services - SACO I Trust 2006-9

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067

      (Facsimile:
        (469) 759-4714)

      Attention:
        President or General Counsel

       

      Attention:
        SACO I Inc., Series 2006-9

       

      
        	
                Re:

              	
                Custodial
                  Agreement, dated as of August 30, 2006, by and among Bear Stearns
                  Asset
                  Backed Securities I LLC, EMC Mortgage Corporation, Citibank, N.A.,
                  LaSalle
                  Bank National Association and Wells Fargo Bank, N.A. relating to
                  SACO I
                  Trust 2006-9, Mortgage-Backed Certificates, Series 2006-9

              

      

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.3(a) of the above-captioned Custodial Agreement,
        and
        subject to Section 2.02(a) of the Pooling and Servicing Agreement, the
        undersigned, as Custodian, hereby certifies that it has received a Mortgage
        File
        (which contains an original Mortgage Note or lost note affidavit) to the
        extent
        required in Section 2.01 of the Pooling and Servicing Agreement with respect
        to
        each Mortgage Loan listed in the Mortgage Loan Schedule, with any exceptions
        listed on Schedule A attached hereto.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the above-captioned Custodial Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      
        	
                WELLS
                  FARGO BANK, N.A.

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        A

       

      (PROVIDED
        UPON REQUEST)

       

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        TWO

       

      FORM
        OF
        CUSTODIAN INTERIM CERTIFICATION

       

                                                  [DATE]

       

      Citibank,
        N.A.

      388
        Greenwich Street, 14th Floor

      New
        York,
        New York 10013

      Attn:
        Structured Finance - SACO I Trust, Series 2006-9

       

      LaSalle
        Bank National Association

      135
        South
        LaSalle Street, Suite 1625

      Chicago,
        Illinois 60603

      Attn:
        Global Securities and Trust Services - SACO I Trust 2006-9

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067

      (Facsimile:
        (469) 759-4714)

      Attention:
        President or General Counsel

       

      Attention:
        SACO I Inc., Series 2006-9

       

      
        	
                Re:

              	
                Custodial
                  Agreement, dated as of August 30, 2006, by and among Bear Stearns
                  Asset
                  Backed Securities I LLC, EMC Mortgage Corporation, Citibank, N.A.,
                  LaSalle
                  Bank National Association and Wells Fargo Bank, N.A. relating to
                  SACO I
                  Trust 2006-9, Mortgage-Backed Certificates, Series 2006-9

              

      

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.3(b) of the above-captioned Custodial Agreement
        and
        subject to Section 2.02(a) of the Pooling and Servicing Agreement, the
        undersigned, as Custodian, hereby certifies that it has received a Mortgage
        File
        to the extent required pursuant to Section 2.01 of the Pooling and Servicing
        Agreement with respect to each Mortgage Loan listed in the Mortgage Loan
        Schedule, and it has reviewed the Mortgage File and the Mortgage Loan Schedule
        and has determined that: all required documents have been executed and received
        and that such documents relate to the Mortgage Loans identified on the Mortgage
        Loan Schedule, with any exceptions listed on Schedule A attached
        hereto.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the above-captioned Custodial Agreement.

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                WELLS
                  FARGO BANK, N.A.

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        A

       

      (PROVIDED
        UPON REQUEST)

       

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        THREE

       

      FORM
        OF
        CUSTODIAN FINAL CERTIFICATION

       

      [DATE]

       

      Citibank,
        N.A.

      388
        Greenwich Street, 14th Floor

      New
        York,
        New York 10013

      Attn:
        Structured Finance - SACO I Trust, Series 2006-9

       

      LaSalle
        Bank National Association

      135
        South
        LaSalle Street, Suite 1625

      Chicago,
        Illinois 60603

      Attn:
        Global Securities and Trust Services - SACO I Trust 2006-9

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067

      (Facsimile:
        (469) 759-4714)

      Attention:
        President or General Counsel

       

      Attention:
        SACO I Inc., Series 2006-9

       

      
        	
                Re:

              	
                Custodial
                  Agreement, dated as of August 30, 2006, by and among Bear Stearns
                  Asset
                  Backed Securities I LLC, EMC Mortgage Corporation, Citibank, N.A.,
                  LaSalle
                  Bank National Association and Wells Fargo Bank, N.A. relating to
                  SACO I
                  Trust 2006-9, Mortgage-Backed Certificates, Series
                  2006-9

              

      

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.3(c) of the above-captioned Custodial
        Agreement

      and,
        subject to Section 2.02(a) of the Pooling and Servicing Agreement, the
        undersigned, as Custodian, hereby certifies that it has received a Mortgage
        File
        to the extent required pursuant to Section 2.01 of the Pooling and Servicing
        Agreement with respect to each Mortgage Loan listed in the Mortgage Loan
        Schedule, and it has reviewed the Mortgage File and the Mortgage Loan Schedule
        and has determined that: all required documents have been executed and received
        and that such documents relate to the Mortgage Loans identified on the Mortgage
        Loan Schedule, with any exceptions listed on Schedule A attached
        hereto.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the above-captioned Custodial Agreement or in the Pooling and Servicing
        Agreement, as applicable.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      
        	
                WELLS
                  FARGO BANK, N.A.

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        A

       

      (PROVIDED
        UPON REQUEST)

       

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        FOUR

       

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

       

      The
        assessment of compliance to be delivered by the Custodian shall address,
        at a
        minimum, the criteria identified below as “Applicable Servicing
        Criteria”:

       

      
        	
                 

                Servicing
                  Criteria

              	
                Applicable

                Servicing
                  Criteria

              
	
                Reference

              	
                Criteria

              	 
	 	
                General
                  Servicing Considerations

              	 
	
                1122(d)(1)(i)

              	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction
                  agreements

              	 
	
                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

              	 
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the pool assets 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.

              	 
	 	
                Cash
                  Collection and Administration

              	 
	
                1122(d)(2)(i)

              	
                Payments
                  on pool assets are deposited into the appropriate custodial bank
                  accounts
                  and related bank clearing accounts no more than two business days
                  following receipt, or such other number of days specified in the
                  transaction agreements.

              	 
	
                1122(d)(2)(ii)

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel.

              	 
	
                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.

              	 
	
                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.

              	 
	
                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 institutions” 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. 

              	 
	
                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
                  reconciliations; 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.

              	 
	 	
                Investor
                  Remittances and Reporting

              	 
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements, (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors; or the trustee’s records as to the total unpaid principal
                  balance and number of pool assets serviced by the
                  servicer.

              	 
	
                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.

              	 
	
                1122(d)(3)(iii)

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements.

              	 
	
                1122(d)(3)(iv)

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank
                  statements.

              	 
	 	
                Pool
                  Asset Administration

              	 
	
                1122(d)(4)(i)

              	
                Collateral
                  or security on pool assets is maintained as required by the transaction
                  agreements or related asset pool documents.

              	
                √

              
	
                1122(d)(4)(ii)

              	
                Pool
                  assets and related documents are safeguarded as required by the
                  transaction agreements.

              	
                √

              
	
                1122(d)(4)(iii)

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements

              	 
	
                1122(d)(4)(iv)

              	
                Payments
                  on pool assets, including any payoffs, made in accordance with
                  the related
                  pool asset documents are posted to the servicer’s obligor records
                  maintained no more than two business days after receipt, or such
                  other
                  number of days specified in the transaction agreements, and allocated
                  to
                  principal, interest or other items (e.g., escrow) in accordance
                  with the
                  related pool asset documents.

              	 
	
                1122(d)(4)(v)

              	
                The
                  servicer’s records regarding the pool assets agree with the servicer’s
                  records with respect to an obligor’s unpaid principal
                  balance.

              	 
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor’s pool asset (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 of recovery actions (e.g., forbearance plans, modifications
                  and
                  deed 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
                  documents.

              	 
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a pool
                  asset is delinquent in accordance with the transaction agreements.,
                  Such
                  records are maintained in at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent pool assets including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or
                  unemployment).

              	 
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for pool assets with variable
                  rates
                  are computed based on the related pool asset documents.

              	 
	
                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts);
                  (A) such
                  funds are analyzed, in accordance with the obligor’s pool asset documents,
                  on at least an annual basis, or such other period specified in
                  the
                  transaction agreements; (B) interest on such funds is paid, or
                  credited,
                  to obligors in accordance with applicable pool asset documents
                  and state
                  laws; and (C) such funds are returned to the obligor within 3-
                  calendar
                  days of full repayment of the related pool asset, or such other
                  number of
                  days specified in the transaction agreements.

              	 
	
                1122(d)(4)(xi)

              	
                Payments
                  made on behalf of an obligor (such as tax ore 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 service 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 funds are recognized and recorded
                  in
                  accordance with the transaction agreements.

              	 
	
                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.

              	 

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        L

      

      FORM
        OF
        MORTGAGE LOAN PURCHASE AGREEMENT

       

      MORTGAGE
        LOAN PURCHASE AGREEMENT, dated as of August 30, 2006, as amended and
        supplemented by any and all amendments hereto (collectively, “this
        Agreement”),
        by
        and between EMC MORTGAGE CORPORATION, a Delaware corporation (the “Mortgage Loan
        Seller”) and BEAR STEARNS ASSET BACKED SECURITIES I LLC, a Delaware limited
        liability company (the “Purchaser”).

       

      Upon
        the
        terms and subject to the conditions of this Agreement, the Mortgage Loan
        Seller
        agrees to sell, and the Purchaser agrees to purchase, certain conventional,
        closed-end, fixed rate junior-lien mortgage loans secured by one- to four-family
        residences (collectively, the “Mortgage
        Loans”)
        as
        described herein. The Purchaser intends to deposit the Mortgage Loans into
        a
        trust fund (the “Trust
        Fund”)
        and
        create SACO I Trust 2006-9, Mortgage-Backed Certificates, Series 2006-9 (the
        “Certificates”),
        under
        a pooling and servicing agreement, to be dated as of August 1, 2006 (the
        “Pooling
        and Servicing Agreement”),
        among
        the Purchaser, as depositor, EMC, as seller and as company, LaSalle Bank
        National Association, as master servicer (in that capacity, the “Master
        Servicer”)
        and
        securities administrator (in that capacity, the “Securities Administrator”) and
        Citibank, N.A., as trustee (the “Trustee”).

       

      The
        Purchaser has filed with the Securities and Exchange Commission (the
“Commission”)
        a
        registration statement on Form S-3 (Number 333-131374) relating to its
        Mortgage-Backed Certificates and the offering of certain series thereof
        (including certain classes of the Certificates) from time to time in accordance
        with Rule 415 under the Securities Act of 1933, as amended, and the rules
        and
        regulations of the Commission promulgated thereunder (the “Securities
        Act”).
        Such
        registration statement, when it became effective under the Securities Act,
        and
        the prospectus relating to the public offering of certain classes of the
        Certificates by the Purchaser (the “Public
        Offering”),
        as
        each may be amended or supplemented from time to time pursuant to the Securities
        Act or otherwise, are referred to herein as the “Registration
        Statement”
and
        the
“Prospectus,”
        respectively. The “Free
        Writing Prospectus”
shall
        mean the free writing prospectus, dated August 10, 2006. The
        “Prospectus
        Supplement”
        shall mean that supplement, dated August [__], 2006 to the Prospectus, dated
        June 7, 2006, relating to certain classes of Certificates. With
        respect to the Public Offering of certain classes of the Certificates, Bear,
        Stearns & Co. Inc. (“Bear
        Stearns”)
        and the
        Purchaser have entered into a terms agreement, dated as of August 10, 2006,
        to
        an underwriting agreement, dated April 13, 2006 (together, the “Underwriting
        Agreement”)
        between
        Bear Stearns and the Purchaser.

       

      Now,
        therefore, in consideration of the premises and the mutual agreements set
        forth
        herein, the parties hereto agree as follows:

       

      SECTION
        1.   Definitions.
        Certain
        terms are defined herein. Capitalized terms used herein but not defined herein
        shall have the meanings specified in the Pooling and Servicing Agreement.
        The
        following other terms are defined as follows:

       

      Acquisition
        Price:
        With
        respect to the Mortgage Loan Seller and the sale of the Mortgage Loans, cash
        in
        an amount equal to $            *          
        (plus
        $         *         
        in
        accrued interest) and the retained certificates. 

       

      Bear
        Stearns:
        Bear,
        Stearns & Co. Inc.

       

      Closing
        Date:
        August
        30, 2006.

       

      Custodial
        Agreement:
        Any of
        the LaSalle Custodial Agreement or Wells Fargo Custodial Agreement.

       

      Custodian:
        Any of
        LaSalle, as custodian under the LaSalle Custodial Agreement or Wells Fargo,
        as
        custodian under the Wells Fargo Custodial Agreement.

       

      Cut-off
        Date:
        August
        1, 2006.

       

      Cut-off
        Date Balance:
        Shall
        mean $[__________].

       

      Deleted
        Mortgage Loan:
        A
        Mortgage Loan replaced or to be replaced by a Replacement Mortgage
        Loan.

       

      Due
        Date:
        As to
        any Mortgage Loan, the date in each month on which the related Scheduled
        Payment
        is due, as set forth in the related Mortgage Note.

       

      EMC:
        EMC
        Mortgage Corporation.

       

      EMC
        Flow Loans:
        The
        Mortgage Loans purchased by EMC pursuant to a flow loan purchase
        agreement.

       

      LaSalle:
        LaSalle
        Bank National Association, or its successors in interest.

       

      LaSalle
        Custodial Agreement:
        The
        custodial agreement, dated as of August 30, 2006, among the Depositor, the
        Mortgage Loan Seller, the Master Servicer and the Securities Administrator,
        the
        Trustee and LaSalle Bank National Association as Custodian relating to the
        Mortgage Loans identified in such custodial agreement. 

       

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

       

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

       

      Moody’s:
        Moody’s
        Investors Service, Inc., or its successors in interest.

       

      Mortgage:
        The
        mortgage or deed of trust or other instrument creating a first or junior
        lien on
        an interest in an estate in fee simple in real property securing a Mortgage
        Note.

       

      
        

        
          * Please
            contact Bear Stearns for pricing information.

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

       

      Mortgage
        File:
        The
        items referred to in Exhibit
        1
        pertaining to a particular Mortgage Loan and any additional documents required
        to be added to such documents pursuant to this Agreement.

       

      Mortgage
        Rate:
        The
        annual rate of interest borne by a Mortgage Note as stated herein.

       

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

       

      Net
        Mortgage Rate:
        As to
        each Mortgage Loan, and at any time, the per annum rate equal to the Mortgage
        Rate less the sum of (i) the Servicing Fee Rate, (ii) the Trustee Fee Rate
        and
        (iii) the rate at which the LPMI Fee is calculated, if any.

       

      Opinion
        of Counsel:
        A
        written opinion of counsel, who may be counsel for the Mortgage Loan Seller
        or
        the Purchaser, reasonably acceptable to the Trustee.

       

      Person:
        Any
        legal person, including any individual, corporation, partnership, joint venture,
        association, joint stock company, trust, unincorporated organization or
        government or any agency or political subdivision thereof.

       

      Purchase
        Price:
        With
        respect to any Mortgage Loan required to be purchased by the Mortgage Loan
        Seller pursuant to the applicable provisions of this Agreement, an amount
        equal
        to the sum of (i) 100% of the principal remaining unpaid on such Mortgage
        Loan
        as of the date of purchase (including if a foreclosure has already occurred,
        the
        principal balance of the related Mortgage Loan at the time the Mortgaged
        Property was acquired), (ii) accrued and unpaid interest thereon at the Mortgage
        Rate through and including the last day of the month of purchase and (iii)
        any
        costs and damages (if any) incurred by the Trust in connection with any
        violation of such Mortgage Loan of any anti-predatory lending laws.

       

      Rating
        Agencies:
        Moody’s
        and Standard & Poor’s, each a “Rating Agency”.

       

      Replacement
        Mortgage Loan:
        A
        mortgage loan substituted for a Deleted Mortgage Loan which must meet on
        the
        date of such substitution the requirements stated herein and in the Pooling
        and
        Servicing Agreement; upon such substitution, such mortgage loan shall be
        a
“Mortgage Loan” hereunder.

       

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

       

      Standard
        & Poor’s:
        Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. or its
        successors in interest.

       

      Value:
        The
        value of the Mortgaged Property at the time of origination of the related
        Mortgage Loan, such value being the lesser of (i) the value of such property
        set
        forth in an appraisal accepted by the applicable originator of the Mortgage
        Loan
        or (ii) the sales price of such property at the time of
        origination.

       

      Wells
        Fargo:
        Wells
        Fargo Bank, National Association, or its successor in interest.

       

      Wells
        Fargo Custodial Agreement:
        The
        custodial agreement, dated as of August 30, 2006, among the Depositor, the
        Mortgage Loan Seller, the Master Servicer and Securities Administrator, the
        Trustee and Wells Fargo Bank, National Association as Custodian relating
        to the
        Mortgage Loans identified in such custodial agreement.

       

      SECTION
        2.   Purchase
        and Sale of the Mortgage Loans and Related Rights. 

       

      (a)  Upon
        satisfaction of the conditions set forth in Section 10 hereof, the Mortgage
        Loan
        Seller agrees to sell, and the Purchaser agrees to purchase Mortgage Loans sold
        by the Mortgage Loan Seller having an aggregate outstanding principal balance
        as
        of the Cut-off Date equal to the Cut-off Date Balance.

       

      (b)  The
        closing for the purchase and sale of the Mortgage Loans and the closing for
        the
        issuance of the Certificates will take place on the Closing Date at the office
        of the Purchaser’s counsel in New York, New York or such other place as the
        parties shall agree.

       

      (c)  Upon
        the
        satisfaction of the conditions set forth in Section 10 ereof, on the Closing
        Date, the Purchaser shall pay to the Mortgage Loan Seller the Acquisition
        Price
        for the Mortgage Loans sold by the Mortgage Loan Seller in immediately available
        funds by wire transfer to such account or accounts as shall be designated
        by the
        Mortgage Loan Seller.

       

      SECTION
        3.   Mortgage
        Loan Schedules.
        The
        Mortgage Loan Seller agrees to provide to the Purchaser as of the date hereof
        a
        preliminary listing of the Mortgage Loans (the “Preliminary
        Mortgage Loan Schedule”)
        setting forth the information listed on Exhibit 2 to this Agreement with
        respect
        to each of the Mortgage Loans being sold by the Mortgage Loan Seller. If
        there
        are changes to the Preliminary Mortgage Loan Schedule, the Mortgage Loan
        Seller
        shall provide to the Purchaser as of the Closing Date a final schedule (the
        “Final
        Mortgage Loan Schedule”)
        setting forth the information listed on Exhibit
        2
        to this
        Agreement with respect to each of the Mortgage Loans being sold by the Mortgage
        Loan Seller to the Purchaser. The Final Mortgage Loan Schedule shall be
        delivered to the Purchaser on the Closing Date, shall be attached to an
        amendment to this Agreement to be executed on the Closing Date by the parties
        hereto and shall be in form and substance mutually agreed to by the Mortgage
        Loan Seller and the Purchaser (the “Amendment”).
        If
        there are no changes to the Preliminary Mortgage Loan Schedule, the Preliminary
        Mortgage Loan Schedule shall be the Final Mortgage Loan Schedule for all
        purposes hereof.

       

      SECTION
        4.   Mortgage
        Loan Transfer. 

       

      (a)  The
        Purchaser will be entitled to all scheduled payments of principal and interest
        on the Mortgage Loans due after the Cut-off Date (regardless of when actually
        collected) and all payments thereof. The Mortgage Loan Seller will be entitled
        to all scheduled payments of principal and interest on the Mortgage Loans
        sold
        by it to the Purchaser due on or before the Cut-off Date (including payments
        collected after the Cut-off Date) and all payments thereof. Such principal
        amounts and any interest thereon belonging to the Mortgage Loan Seller as
        described above will not be included in the aggregate outstanding principal
        balance of the Mortgage Loans as of the Cut-off Date as set forth on the
        Final
        Mortgage Loan Schedule.

       

      (b)  Pursuant
        to various conveyancing documents to be executed on the Closing Date and
        pursuant to the Pooling and Servicing Agreement, the Purchaser will assign
        on
        the Closing Date all of its right, title and interest in and to the Mortgage
        Loans to the Trustee for the benefit of the Certificateholders. In connection
        with the transfer and assignment of the Mortgage Loans, the Mortgage Loan
        Seller
        has delivered or will deliver or cause to be delivered to the Trustee, or
        the
        Custodian on behalf of the Trustee, by the Closing Date or such later date
        as is
        agreed to by the Purchaser and the Mortgage Loan Seller (each of the Closing
        Date and such later date is referred to as a “Mortgage
        File Delivery Date”),
        the
        items of the respective Custodian’s Mortgage File, provided,
        however,
        that in
        lieu of the foregoing, the Mortgage Loan Seller may deliver the following
        documents, under the circumstances set forth below: (x) in lieu of the original
        Mortgage (other than the Mortgages related to the EMC Flow Loans), assignments
        to the Trustee or intervening assignments thereof which have been delivered,
        are
        being delivered or will upon receipt of recording information relating to
        the
        Mortgage required to be included thereon, be delivered to recording offices
        for
        recording and have not been returned in time to permit their delivery as
        specified above, the Mortgage Loan Seller may deliver a true copy thereof
        with a
        certification by the Mortgage Loan Seller or the Master Servicer, on the
        face of
        such copy, substantially as follows: “Certified to be a true and correct copy of
        the original, which has been transmitted for recording;” (y) in lieu of the
        Mortgage (other than the Mortgages related to the EMC Flow Loans), assignments
        to the Trustee or intervening assignments thereof, if the applicable
        jurisdiction retains the originals of such documents or if the originals
        are
        lost (in each case, as evidenced by a certification from the Mortgage Loan
        Seller or the Master Servicer to such effect), the Mortgage Loan Seller may
        deliver photocopies of such documents containing an original certification
        by
        the judicial or other governmental authority of the jurisdiction where such
        documents were recorded; and (z) in lieu of the Mortgage Notes relating to
        the
        Mortgage Loans, each identified in the list delivered by the Purchaser to
        the
        Trustee on the Closing Date and attached hereto as Exhibit
        5
        the
        Mortgage Loan Seller may deliver lost note affidavits and indemnities of
        the
        Mortgage Loan Seller; and provided further, however, that in the case of
        Mortgage Loans which have been prepaid in full after the Cut-off Date and
        prior
        to the Closing Date, the Mortgage Loan Seller, in lieu of delivering the
        above
        documents, may deliver to the Trustee a certification by the Mortgage Loan
        Seller or the Master Servicer to such effect. The Mortgage Loan Seller shall
        deliver such original documents (including any original documents as to which
        certified copies had previously been delivered) or such certified copies
        to the
        Trustee, or the related Custodian on behalf of the Trustee, promptly after
        they
        are received. The Mortgage Loan Seller shall cause the Mortgage and intervening
        assignments, if any, and the assignment of the Mortgage to be recorded not
        later
        than 180 days after the Closing Date unless such assignment is not required
        to
        be recorded under the terms set forth in Section 6(a) hereof.

       

      (c)  In
        connection with the assignment of any Mortgage Loan registered on the MERS®
System, the Mortgage Loan Seller further agrees that it will cause, at the
        Mortgage Loan Seller’s own expense, within 30 days after the Closing Date, the
        MERS® System to indicate that such Mortgage Loans have been assigned by the
        Mortgage Loan Seller to the Purchaser and by the Purchaser to the Trustee
        in
        accordance with this Agreement for the benefit of the Certificateholders
        by
        including (or deleting, in the case of Mortgage Loans which are repurchased
        in
        accordance with this Agreement) in such computer files (a) the code in the
        field
        which identifies the specific Trustee and (b) the code in the field “Pool Field”
which identifies the series of the Certificates issued in connection with
        such
        Mortgage Loans. The Mortgage Loan Seller further agrees that it will not,
        and
        will not permit the Master Servicer or related Servicer to, alter the codes
        referenced in this paragraph with respect to any Mortgage Loan during the
        term
        of the Pooling and Servicing Agreement unless and until such Mortgage Loan
        is
        repurchased in accordance with the terms of the Pooling and Servicing
        Agreement.

       

      (d)  The
        Mortgage Loan Seller and the Purchaser acknowledge hereunder that all of
        the
        Mortgage Loans will ultimately be assigned to Citibank, N.A., as Trustee
        for the
        benefit of the Certificateholders, on the date hereof.

       

      SECTION
        5.   Examination
        of Mortgage Files. 

       

      (a)  On
        or
        before the Mortgage File Delivery Date, the Mortgage Loan Seller will have
        made
        the Mortgage Files available to the Purchaser or its agent for examination
        which
        may be at the offices of the Trustee or the Mortgage Loan Seller and/or the
        Mortgage Loan Seller’s custodian. The fact that the Purchaser or its agent has
        conducted or has failed to conduct any partial or complete examination of
        the
        Mortgage Files shall not affect the Purchaser’s rights to demand cure,
        repurchase, substitution or other relief as provided in this Agreement. In
        furtherance of the foregoing, the Mortgage Loan Seller shall make the Mortgage
        Files available to the Purchaser or its agent from time to time so as to
        permit
        the Purchaser to confirm the Mortgage Loan Seller’s compliance with the delivery
        and recordation requirements of this Agreement and the Pooling and Servicing
        Agreement. In addition, upon request of the Purchaser, the Mortgage Loan
        Seller
        agrees to provide to the Purchaser, Bear Stearns and to any investors or
        prospective investors in the Certificates information regarding the Mortgage
        Loans and their servicing, to make the Mortgage Files available to the
        Purchaser, Bear Stearns and to such investors or prospective investors (which
        may be at the offices of the related Mortgage Loan Seller and/or the Mortgage
        Loan Seller’s custodian) and to make available personnel knowledgeable about the
        Mortgage Loans for discussions with the Purchaser, Bear Stearns and such
        investors or prospective investors, upon reasonable request during regular
        business hours, sufficient to permit the Purchaser, Bear Stearns and such
        investors or potential investors to conduct such due diligence as any such
        party
        reasonably believes is appropriate.

       

      (b)  Pursuant
        to the Pooling and Servicing Agreement, on the Closing Date the Trustee (or
        the
        Custodian as obligated under the applicable Custodial Agreement), for the
        benefit of the Certificateholders, will review items of the Mortgage Files
        as
        set forth on Exhibit
        1
        and will
        deliver to the Mortgage Loan Seller an initial certification in the form
        attached as Exhibit One to the applicable Custodial Agreement.

       

      (c)  Within
        90
        days of the Closing Date, the Trustee or the related Custodian on its behalf
        shall, in accordance with the provisions of Section 2.02 of the Pooling and
        Servicing Agreement, deliver to the Mortgage Loan Seller and the Trustee
        an
        Interim Certification in the form attached as Exhibit Two to the applicable
        Custodial Agreement to the effect that all such documents have been executed
        and
        received and that such documents relate to the Mortgage Loans identified
        on the
        Mortgage Loan Schedule, except for any exceptions listed on Schedule A attached
        to such Interim Certification. The related Custodian shall be under no duty
        or
        obligation to inspect, review or examine said documents, instruments,
        certificates or other papers to determine that the same 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.

       

      (d)  The
        Trustee or the related Custodian on its behalf will review the Mortgage Files
        within 180 days of the Closing Date and will deliver to the Mortgage Loan
        Seller
        and the Master Servicer, and if reviewed by the related Custodian, the Trustee,
        a final certification substantially in the form of Exhibit 3 to the applicable
        Custodial Agreement. If the Trustee or the related Custodian on its behalf
        is
        unable to deliver a final certification with respect to the items listed
        in
Exhibit
        1
        due to
        any document that is missing, has not been executed, is unrelated, determined
        on
        the basis of the Mortgagor name, original principal balance and loan number,
        to
        the Mortgage Loans identified in the Final Mortgage Loan Schedule (a
“Material
        Defect”),
        the
        Trustee or the related Custodian on its behalf shall notify the Mortgage
        Loan
        Seller of such Material Defect. The Mortgage Loan Seller shall correct or
        cure
        any such Material Defect within 90 days from the date of notice from the
        Trustee, the Depositor or the Master Servicer of the Material Defect and
        if the
        Mortgage Loan Seller does not correct or cure such Material Defect within
        such
        period and such defect materially and adversely affects the interests of
        the
        Certificateholders in the related Mortgage Loan, the Mortgage Loan Seller
        will,
        in accordance with the terms of the Pooling and Servicing Agreement, within
        90
        days of the date of notice, provide the Trustee with a Replacement Mortgage
        Loan
        (if within two years of the Closing Date) or purchase the related Mortgage
        Loan
        at the applicable Purchase Price; provided,
        however,
        that if
        such defect relates solely to the inability of the Mortgage Loan Seller to
        deliver the original security instrument or intervening assignments thereof,
        or
        a certified copy because the originals of such documents, or a certified
        copy,
        have not been returned by the applicable jurisdiction, the Mortgage Loan
        Seller
        shall not be required to purchase such Mortgage Loan if the Mortgage Loan
        Seller
        delivers such original documents or certified copy promptly upon receipt,
        but in
        no event later than 360 days after the Closing Date. The foregoing repurchase
        obligation shall not apply in the event that the Mortgage Loan Seller cannot
        deliver such original or copy of any document submitted for recording to
        the
        appropriate recording office in the applicable jurisdiction because such
        document has not been returned by such office; provided that the Mortgage
        Loan
        Seller shall instead deliver a recording receipt of such recording office
        or, if
        such receipt is not available, a certificate of the Mortgage Loan Seller
        or a
        Servicing Officer confirming that such documents have been accepted for
        recording, and delivery to the Trustee shall be effected by the Mortgage
        Loan
        Seller within thirty days of its receipt of the original recorded
        document.

       

      (e)  At
        the
        time of any substitution, the Mortgage Loan Seller shall deliver or cause
        to be
        delivered the Replacement Mortgage Loan, the related Mortgage File and any
        other
        documents and payments required to be delivered in connection with a
        substitution pursuant to the Pooling and Servicing Agreement. At the time
        of any
        purchase or substitution, the Trustee shall (i) assign the selected Mortgage
        Loan to the Mortgage Loan Seller and shall release or cause the related
        Custodian to release the documents (including, but not limited to, the Mortgage,
        Mortgage Note and other contents of the Mortgage File) in the possession
        of the
        Trustee or the related Custodian, as applicable relating to the Deleted Mortgage
        Loan and (ii) execute and deliver such instruments of transfer or assignment,
        in
        each case without recourse, as shall be necessary to vest in the Mortgage
        Loan
        Seller title to such Deleted Mortgage Loan.

       

      SECTION
        6.   Recordation
        of Assignments of Mortgage. 

       

      (a)  The
        Mortgage Loan Seller will, promptly after the Closing Date, cause each Mortgage
        and each assignment of Mortgage from the Mortgage Loan Seller to the Trustee,
        and all unrecorded intervening assignments, if any, delivered on or prior
        to the
        Closing Date, to be recorded in all recording offices in the jurisdictions
        where
        the related Mortgaged Properties are located; provided,
        however,
        the
        Mortgage Loan Seller need not cause to be recorded any assignment which relates
        to a Mortgage Loan that is a MOM Loan or for which the related Mortgaged
        Property is located in any jurisdiction under the laws of which, as evidenced
        by
        an Opinion of Counsel delivered by the Mortgage Loan Seller to the Trustee
        and
        the Rating Agencies, the recordation of such assignment is not necessary
        to
        protect the Trustee’s interest in the related Mortgage Loan; provided,
        however,
        notwithstanding the delivery of any Opinion of Counsel, each assignment of
        Mortgage shall be submitted for recording by the Mortgage Loan Seller in
        the
        manner described above, at no expense to the Trust Fund or Trustee, upon
        the
        earliest to occur of (i) reasonable direction by the Holders of Certificates
        evidencing Percentage Interests aggregating not less than 25% of the Trust,
        (ii)
        the occurrence of an Event of Default, (iii) the occurrence of a bankruptcy,
        insolvency or foreclosure relating to the Mortgage Loan Seller under the
        Pooling
        and Servicing Agreement, (iv) the occurrence of a servicing transfer or an
        assignment of the servicing as described in Section 8.05(b) of the Pooling
        and
        Servicing Agreement or (iv) with respect to any one assignment of Mortgage,
        the
        occurrence of a bankruptcy, insolvency or foreclosure relating to the Mortgagor
        under the related Mortgage.

       

      While
        each such Mortgage or assignment is being recorded, if necessary, the Mortgage
        Loan Seller shall leave or cause to be left with the Trustee or the related
        Custodian on its behalf a certified copy of such Mortgage or assignment.
        In the
        event that, within 180 days of the Closing Date, the Trustee has not been
        provided with an Opinion of Counsel as described above or received evidence
        of
        recording with respect to each Mortgage Loan delivered to the Purchaser pursuant
        to the terms hereof or as set forth above and the related Mortgage Loan is
        not a
        MOM Loan, the failure to provide evidence of recording or such Opinion of
        Counsel shall be considered a Material Defect, and the provisions of Section
        5(c) and (d) shall apply. All customary recording fees and reasonable expenses
        relating to the recordation of the assignments of mortgage to the Trustee
        or the
        Opinion of Counsel, as the case may be, shall be borne by the Mortgage Loan
        Seller.

       

      (b)  It
        is the
        express intent of the parties hereto that the conveyance of the Mortgage
        Loans
        by the Mortgage Loan Seller to the Purchaser, as contemplated by this Agreement
        be, and be treated as, a sale. It is, further, not the intention of the parties
        that such conveyance be deemed a pledge of the Mortgage Loans by the Mortgage
        Loan Seller to the Purchaser to secure a debt or other obligation of the
        Mortgage Loan Seller. However, in the event that, notwithstanding the intent
        of
        the parties, the Mortgage Loans are held by a court to continue to be property
        of the Mortgage Loan Seller, then (a) this Agreement shall also be deemed
        to be
        a security agreement within the meaning of Articles 8 and 9 of the applicable
        Uniform Commercial Code; (b) the transfer of the Mortgage Loans provided
        for
        herein shall be deemed to be a grant by the Mortgage Loan Seller to the
        Purchaser of a security interest in all of the Mortgage Loan Seller’s right,
        title and interest in and to the Mortgage Loans and all amounts payable to
        the
        holders of the Mortgage Loans in accordance with the terms thereof and all
        proceeds of the conversion, voluntary or involuntary, of the foregoing into
        cash, instruments, securities or other property, to the extent the Purchaser
        would otherwise be entitled to own such Mortgage Loans and proceeds pursuant
        to
        Section 4 hereof, including all amounts, other than investment earnings,
        from
        time to time held or invested in any accounts created pursuant to the Pooling
        and Servicing Agreement, whether in the form of cash, instruments, securities
        or
        other property; (c) the possession by the Purchaser or the Trustee (or the
        related Custodian on its behalf) 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” for purposes of
        perfecting the security interest pursuant to Section 9-305 (or comparable
        provision) of the applicable Uniform Commercial Code; 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 Purchaser for the purpose of perfecting
        such security interest under applicable law. Any assignment of the interest
        of
        the Purchaser pursuant to any provision hereof or pursuant to the Pooling
        and
        Servicing Agreement shall also be deemed to be an assignment of any security
        interest created hereby. The Mortgage Loan Seller and the Purchaser shall,
        to
        the extent consistent with this Agreement, take such actions as may be
        reasonably necessary to ensure that, if this Agreement were deemed to create
        a
        security interest in the Mortgage Loans, such security interest would be
        deemed
        to be a perfected security interest of first priority under applicable law
        and
        will be maintained as such throughout the term of the Pooling and Servicing
        Agreement.

       

      SECTION
        7.   Representations
        and Warranties of the Mortgage Loan Seller Concerning the Mortgage
        Loans.
        The
        Mortgage Loan Seller hereby represents and warrants to the Purchaser as of
        the
        Closing Date or such other date as may be specified below with respect to
        each
        Mortgage Loan:

       

      (a)  the
        information set forth in the Mortgage Loan Schedule hereto is true and correct
        in all material respects;

       

      (b)  immediately
        prior to the transfer to the Purchaser, the Mortgage Loan Seller was the
        sole
        owner of beneficial title and holder of each Mortgage and Mortgage Note relating
        to the Mortgage Loans and is conveying the same free and clear of any and
        all
        liens, claims, encumbrances, participation interests, equities, pledges,
        charges
        or security interests of any nature and the Mortgage Loan Seller has full
        right
        and authority to sell or assign the same pursuant to this
        Agreement;

       

      (c)  each
        Mortgage Loan at the time it was made complied in all material respects with
        all
        applicable local, state and federal laws and regulations, including, without
        limitation, usury, equal credit opportunity, disclosure and recording laws
        and
        all applicable predatory abusive and fair lending laws; and each Mortgage
        Loan
        has been serviced in all material respects in accordance with all applicable
        local, state and federal laws and regulations, including, without limitation,
        usury, equal credit opportunity, disclosure and recording laws and all
        applicable anti-predatory lending laws and the terms of the related Mortgage
        Note, the Mortgage and other loan documents;

       

      (d)  there
        is
        no monetary default existing under any Mortgage or the related Mortgage Note
        and
        there is no material event which, with the passage of time or with notice
        and
        the expiration of any grace or cure period, would constitute a default, breach
        or event of acceleration; and neither the Mortgage Loan Seller, any of its
        affiliates nor any servicer of any related Mortgage Loan has taken any action
        to
        waive any default, breach or event of acceleration; and no foreclosure action
        is
        threatened or has been commenced with respect to the Mortgage Loan;

       

      (e)  the
        terms
        of the Mortgage Note and the Mortgage have not been impaired, waived, altered
        or
        modified in any respect, except by written instruments, (i) if required by
        law
        in the jurisdiction where the Mortgaged Property is located, or (ii) to protect
        the interests of the Trustee on behalf of the Certificateholders;

       

      (f)  no
        selection procedure reasonably believed by the Mortgage Loan Seller to be
        adverse to the interests of the Certificateholders was utilized in selecting
        the
        Mortgage Loans;

       

      (g)  each
        Mortgage is a valid and enforceable junior lien on the property securing
        the
        related Mortgage Note and each Mortgaged Property is owned by the Mortgagor
        in
        fee simple (except with respect to common areas in the case of condominiums,
        PUDs and de minimis
        PUDs) or
        by leasehold for a term longer than the term of the related Mortgage, subject
        only to (i) the lien of current real property taxes and assessments, (ii)
        covenants, conditions and restrictions, rights of way, easements and other
        matters of public record as of the date of recording of such Mortgage, such
        exceptions being acceptable to mortgage lending institutions generally or
        specifically reflected in the appraisal obtained in connection with the
        origination of the related Mortgage Loan or referred to in the lender’s title
        insurance policy delivered to the originator of the related Mortgage Loan
        and
        (iii) other matters to which like properties are commonly subject which do
        not
        materially interfere with the benefits of the security intended to be provided
        by such Mortgage;

       

      (h)  there
        is
        no mechanics’ lien or claim for work, labor or material affecting the premises
        subject to any Mortgage which is or may be a lien prior to, or equal with,
        the
        lien of such Mortgage except those which are insured against by the title
        insurance policy referred to in clause (m) below;

       

      (i)  there
        was
        no delinquent tax or assessment lien against the property subject to any
        Mortgage, except where such lien was being contested in good faith and a
        stay
        had been granted against levying on the property;

       

      (j)  there
        is
        no valid offset, defense or counterclaim to any Mortgage Note or Mortgage,
        including the obligation of the Mortgagor to pay the unpaid principal and
        interest on such Mortgage Note;

       

      (k)  the
        physical property subject to any Mortgage is free of material damage and
        is in
        good repair and there is no proceeding pending or threatened for the total
        or
        partial condemnation of any Mortgaged Property;

       

      (l)  the
        Mortgaged Property and all improvements thereon comply with all requirements
        of
        any applicable zoning and subdivision laws and ordinances;

       

      (m)  with
        respect to any junior lien Mortgage Loan, other than any Piggyback Loan that
        has
        an initial principal amount less than or equal to $200,000, (a) a lender’s title
        insurance policy or binder, or other assurance of title customary in the
        relevant jurisdiction therefore in a form acceptable to Fannie Mae or Freddie
        Mac, was issued on the date that each Mortgage Loan was created by a title
        insurance company which, to the best of the related Mortgage Loan Seller’s
        knowledge, was qualified to do business in the jurisdiction where the related
        Mortgaged Property is located, insuring the related seller and its successors
        and assigns. The related Mortgage Loan Seller is the sole insured under such
        lender’s title insurance policy, and such policy, binder or assurance is valid
        and remains in full force and effect, and each such policy, binder or assurance
        shall contain all applicable endorsements including a negative amortization
        endorsement, if applicable, or (b) a lien search was conducted at the time
        of
        origination with respect to the related Mortgaged Property.;

       

      (n)  at
        the
        time of origination, each Mortgaged Property was the subject of an appraisal
        which conformed to the underwriting requirements of the originator of the
        Mortgage Loan and, the appraisal is in a form acceptable to Fannie Mae or
        Freddie Mac;

       

      (o)  the
        improvements on each Mortgaged Property securing a Mortgage Loan are insured
        (by
        an insurer which is acceptable to the Mortgage Loan Seller) against loss
        by fire
        and such hazards as are covered under a standard extended coverage endorsement
        in the locale in which the Mortgaged Property is located, in an amount which
        is
        not less than the lesser of the maximum insurable value of the improvements
        securing such Mortgage Loan or the outstanding principal balance of the Mortgage
        Loan, but in no event in an amount less than an amount that is required to
        prevent the Mortgagor from being deemed to be a co-insurer thereunder; if
        the
        improvement on the Mortgaged Property is a condominium unit, it is included
        under the coverage afforded by a blanket policy for the condominium project;
        if
        upon origination of the related Mortgage Loan, the improvements on the Mortgaged
        Property were in an area identified as a federally designated flood area,
        a
        flood insurance policy is in effect in an amount representing coverage not
        less
        than the least of (i) the outstanding principal balance of the Mortgage Loan,
        (ii) the restorable cost of improvements located on such Mortgaged Property
        or
        (iii) the maximum coverage available under federal law; and each Mortgage
        obligates the Mortgagor thereunder to maintain the insurance referred to
        above
        at the Mortgagor’s cost and expense;

       

      (p)  each
        Mortgage Loan constitutes a "qualified mortgage" under Section 860G(a)(3)(A)
        of
        the Code and Treasury Regulation Section 1.860G-2(a)(1), (2), (4), (5), (6),
        (7)
        and (9) without reliance on the provisions of Treasury Regulation Section
        1.860G-2(a)(3) or Treasury Regulation Section 1.860G-2(f)(2) or any other
        provision that would allow a Mortgage Loan to be treated as a “qualified
        mortgage” notwithstanding its failure to meet the requirements of Section
        860G(a)(3)(A) of the Code and Treasury Regulation Section 1.860G-2(a)(1),
        (2),
        (4), (5), (6), (7) and (9);

       

      (q)  none
        of
        the Mortgage Loans are (a) loans subject to 12 CFR Part 226.31, 12 CFR Part
        226.32 or 12 CFR Part 226.34 of Regulation Z, the regulation implementing
        TILA,
        which implements the Home Ownership and Equity Protection Act of 1994, as
        amended or (b) “high cost home,” “covered” (excluding home loans defined as
“covered home loans” in the New Jersey Home
        Ownership Security Act of 2002 that were originated between November 26,
        2003
        and July 7, 2004), “high risk home” or “predatory” loans under any applicable
        state, federal or local law (or a similarly classified loan using different
        terminology under a law imposing heightened regulatory scrutiny or additional
        legal liability for residential mortgage loans having high interest rates,
        points and/or fees);

       

      (r)  the
        information set forth in Schedule A of the Prospectus Supplement with respect
        to
        the Mortgage Loans
        is true
        and correct in all material respects; 

       

      (s)  no
        Mortgage Loan (a) is a “high cost loan” or “covered loan” as applicable (as such
        terms are defined in the then current Standard & Poor’s LEVELS® Glossary,
        which is now Version 5.6(d), Appendix E, attached hereto as Exhibit 6) or
        (b)
        was originated on or after October 1, 2002 through March 6, 2003 and is governed
        by the Georgia Fair Lending Act;

       

      (t)  each
        Mortgage Loan was originated in accordance with the underwriting guidelines
        of
        the related originator;

       

      (u)  each
        original Mortgage has been recorded or is in the process of being recorded
        in
        accordance with the requirements of Section 2.01 of the Pooling and Servicing
        Agreement in the appropriate jurisdictions wherein such recordation is required
        to perfect the lien thereof for the benefit of the Trust Fund; 

       

      (v)  the
        related Mortgage File contains each of the documents and instruments listed
        in
        Section 2.01 of the Pooling and Servicing Agreement, subject to any exceptions,
        substitutions and qualifications as are set forth in such Section;

       

      (w)  the
        Mortgage Loans are currently being serviced in accordance with accepted
        servicing practices;

       

      (x)  with
        respect to each Mortgage Loan that has a prepayment penalty feature, each
        such
        prepayment penalty is enforceable and will be enforced by the Mortgage Loan
        Seller and each prepayment penalty
        is
        permitted pursuant to federal, state and local law. In addition, with respect
        to
        each Mortgage Loan (i) no Mortgage Loan will impose a prepayment penalty
        for a
        term in excess of five years from the date such Mortgage Loan was originated
        and
        (ii) such prepayment penalty is at least equal to the lesser of (A) the maximum
        amount permitted under applicable law and (B) six months interest at the
        related
        Mortgage Rate on the amount prepaid in excess of 20% of the original principal
        balance of such Mortgage Loan; and

       

      (y)  If
        any of
        the Mortgage Loans are secured by a leasehold interest, with respect to each
        leasehold interest: the use of leasehold estates for residential properties
        is
        an accepted practice in the area where the related Mortgaged Property is
        located; residential property in such area consisting of leasehold estates
        is
        readily marketable; the lease is recorded and no party is in any way in breach
        of any provision of such lease; the leasehold is in full force and effect
        and is
        not subject to any prior lien or encumbrance by which the leasehold could
        be
        terminated or subject to any charge or penalty; and the remaining term of
        the
        lease does not terminate less than ten years after the maturity date of such
        Mortgage Loan.

       

      It
        is
        understood and agreed that the representations and warranties set forth in
        this
        Section 7 will inure to the benefit of the Purchaser, its successors and
        assigns, notwithstanding any restrictive or qualified endorsement on any
        Mortgage Note or assignment of Mortgage or the examination of any Mortgage
        File.
        Upon any substitution for a Mortgage Loan, the representations and warranties
        set forth above shall be deemed to be made by the Mortgage Loan Seller as
        to any
        Replacement Mortgage Loan as of the date of substitution.

       

      Upon
        discovery or receipt of notice by the Mortgage Loan Seller, the Purchaser
        or the
        Trustee of a breach of any representation or warranty of the Mortgage Loan
        Seller set forth in this Section 7 which materially and adversely affects
        the
        value of the interests of the Purchaser, the Certificateholders or the Trustee
        in any of the Mortgage Loans delivered to the Purchaser pursuant to this
        Agreement, the party discovering or receiving notice of such breach shall
        give
        prompt written notice to the others. In the case of any such breach of a
        representation or warranty set forth in this Section 7, within 90 days from
        the
        date of discovery by the Mortgage Loan Seller, or the date the Mortgage Loan
        Seller is notified by the party discovering or receiving notice of such breach
        (whichever occurs earlier), the Mortgage Loan Seller will (i) cure such breach
        in all material respects, (ii) purchase the affected Mortgage Loan at the
        applicable Purchase Price or (iii) if within two years of the Closing Date,
        substitute a qualifying Replacement Mortgage Loan in exchange for such Mortgage
        Loan; provided that, (A) in the case of a breach of the representation and
        warranty concerning the Mortgage Loan Schedule contained in clause (a) of
        this
        Section 7, if such breach is material and relates to any field on the Mortgage
        Loan Schedule which identifies any Prepayment Charge or (B) in the case of
        a
        breach of the representation contained in clause (x) of this Section 7, then,
        in
        each case, in lieu of purchasing such Mortgage Loan from the Trust Fund at
        the
        Purchase Price, the Mortgage Loan Seller shall pay the amount of the Prepayment
        Charge (net of any amount previously collected by or paid to the Trust Fund
        in
        respect of such Prepayment Charge) from its own funds and without reimbursement
        therefor, and the Mortgage Loan Seller shall have no obligation to repurchase
        or
        substitute for such Mortgage Loan. The obligations of the Mortgage Loan Seller
        to cure, purchase or substitute a qualifying Replacement Mortgage Loan shall
        constitute the Purchaser’s, the Trustee’s and the Certificateholder’s sole and
        exclusive remedy under this Agreement or otherwise respecting a breach of
        representations or warranties hereunder with respect to the Mortgage Loans,
        except for the obligation of the Mortgage Loan Seller to indemnify the Purchaser
        for such breach as set forth in and limited by Section 13 hereof.

       

      Any
        cause
        of action against the Mortgage Loan Seller or relating to or arising out
        of a
        breach by the Mortgage Loan Seller of any representations and warranties
        made in
        this Section 7 shall accrue as to any Mortgage Loan upon (i) discovery of
        such
        breach by the Mortgage Loan Seller or notice thereof by the party discovering
        such breach and (ii) failure by the Mortgage Loan Seller to cure such breach,
        purchase such Mortgage Loan or substitute a qualifying Replacement Mortgage
        Loan
        pursuant to the terms hereof.

       

      SECTION
        8.   Representations
        and Warranties Concerning the Mortgage Loan Seller.
        As of
        the date hereof and as of the Closing Date, the Mortgage Loan Seller represents
        and warrants to the Purchaser as to itself in the capacity indicated as
        follows:

       

      (a)  the
        Mortgage Loan Seller (i) is a corporation duly organized, validly existing
        and
        in good standing under the laws of the State of Delaware and (ii) is qualified
        and in good standing to do business in each jurisdiction where such
        qualification is necessary, except where the failure so to qualify would
        not
        reasonably be expected to have a material adverse effect on the Mortgage
        Loan
        Seller’s business as presently conducted or on the Mortgage Loan Seller’s
        ability to enter into this Agreement and to consummate the transactions
        contemplated hereby;

       

      (b)  the
        Mortgage Loan Seller has full power to own its property, to carry on its
        business as presently conducted and to enter into and perform its obligations
        under this Agreement;

       

      (c)  the
        execution and delivery by the Mortgage Loan Seller of this Agreement has
        been
        duly authorized by all necessary action on the part of the Mortgage Loan
        Seller;
        and neither the execution and delivery of this Agreement, nor the consummation
        of the transactions herein contemplated, nor compliance with the provisions
        hereof or thereof, will conflict with or result in a breach of, or constitute
        a
        default under, any of the provisions of any law, governmental rule, regulation,
        judgment, decree or order binding on the Mortgage Loan Seller or its properties
        or the charter or by-laws of the Mortgage Loan Seller, except those conflicts,
        breaches or defaults which would not reasonably be expected to have a material
        adverse effect on the Mortgage Loan Seller’s ability to enter into this
        Agreement and to consummate the transactions contemplated hereby;

       

      (d)  the
        execution, delivery and performance by the Mortgage Loan Seller of this
        Agreement and the consummation of the transactions contemplated hereby do
        not
        require the consent or approval of, the giving of notice to, the registration
        with, or the taking of any other action in respect of, any state, federal
        or
        other governmental authority or agency, except those consents, approvals,
        notices, registrations or other actions as have already been obtained, given
        or
        made and, in connection with the recordation of the Mortgages, powers of
        attorney or assignments of Mortgages not yet completed;

       

      (e)  this
        Agreement has been duly executed and delivered by the Mortgage Loan Seller
        and,
        assuming due authorization, execution and delivery by the Purchaser or the
        parties thereto, constitutes a valid and binding obligation of the Mortgage
        Loan
        Seller enforceable against it in accordance with its terms (subject to
        applicable bankruptcy and insolvency laws and other similar laws affecting
        the
        enforcement of the rights of creditors generally);

       

      (f)  there
        are
        no actions, suits or proceedings pending or, to the knowledge of the Mortgage
        Loan Seller, threatened against the Mortgage Loan Seller, before or by any
        court, administrative agency, arbitrator or governmental body (i) with respect
        to any of the transactions contemplated by this Agreement or (ii) with respect
        to any other matter which in the judgment of the Mortgage Loan Seller could
        reasonably be expected to be determined adversely to the Mortgage Loan Seller
        and if determined adversely to the Mortgage Loan Seller materially and adversely
        affect the Mortgage Loan Seller’s ability to perform its obligations under this
        Agreement and the Mortgage Loan Seller is not in default with respect to
        any
        order of any court, administrative agency, arbitrator or governmental body
        so as
        to materially and adversely affect the transactions contemplated by this
        Agreement; and

       

      (g)  the
        Mortgage Loan Seller’s Information (as defined in Section 13(a) hereof) does not
        include any untrue statement of a material fact or omit to state a material
        fact
        necessary in order to make the statements made, in light of the circumstances
        under which they were made, not misleading.

       

      SECTION
        9.   Representations
        and Warranties Concerning the Purchaser.
        As of
        the date hereof and as of the Closing Date, the Purchaser represents and
        warrants to the Mortgage Loan Seller as follows:

       

      (a)  the
        Purchaser (i) is a limited liability company duly organized, validly existing
        and in good standing under the laws of the State of Delaware and (ii) is
        qualified and in good standing to do business in each jurisdiction where
        such
        qualification is necessary, except where the failure so to qualify would
        not
        reasonably be expected to have a material adverse effect on the Purchaser’s
        business as presently conducted or on the Purchaser’s ability to enter into this
        Agreement and to consummate the transactions contemplated hereby;

       

      (b)  the
        Purchaser has full power to own its property, to carry on its business as
        presently conducted and to enter into and perform its obligations under this
        Agreement;

       

      (c)  the
        execution and delivery by the Purchaser of this Agreement has been duly
        authorized by all necessary action on the part of the Purchaser; and neither
        the
        execution and delivery of this Agreement, nor the consummation of the
        transactions herein contemplated, nor compliance with the provisions hereof,
        will conflict with or result in a breach of, or constitute a default under,
        any
        of the provisions of any law, governmental rule, regulation, judgment, decree
        or
        order binding on the Purchaser or its properties or the certificate of formation
        or limited liability company agreement of the Purchaser, except those conflicts,
        breaches or defaults which would not reasonably be expected to have a material
        adverse effect on the Purchaser’s ability to enter into this Agreement and to
        consummate the transactions contemplated hereby or thereby;

       

      (d)  the
        execution, delivery and performance by the Purchaser of this Agreement and
        the
        consummation of the transactions contemplated hereby or thereby do not require
        the consent or approval of, the giving of notice to, the registration with,
        or
        the taking of any other action in respect of, any state, federal or other
        governmental authority or agency, except those consents, approvals, notices,
        registrations or other actions as have already been obtained, given or
        made;

       

      (e)  this
        Agreement has been duly executed and delivered by the Purchaser and, assuming
        due authorization, execution and delivery by the Mortgage Loan Seller,
        constitutes a valid and binding obligation of the Purchaser enforceable against
        it in accordance with its terms (subject to applicable bankruptcy and insolvency
        laws and other similar laws affecting the enforcement of the rights of creditors
        generally);

       

      (f)  there
        are
        no actions, suits or proceedings pending or, to the knowledge of the Purchaser,
        threatened against the Purchaser, before or by any court, administrative
        agency,
        arbitrator or governmental body (i) with respect to any of the transactions
        contemplated by this Agreement or (ii) with respect to any other matter which
        in
        the judgment of the Purchaser could reasonably be expected to be determined
        adversely to the Purchaser and if determined adversely to the Purchaser
        materially and adversely affect the Purchaser’s ability to perform its
        obligations under this Agreement; and the Purchaser is not in default with
        respect to any order of any court, administrative agency, arbitrator or
        governmental body so as to materially and adversely affect the transactions
        contemplated by this Agreement; and

       

      (g)  the
        Purchaser’s Information (as defined in Section 13(b) hereof) does not include
        any untrue statement of a material fact or omit to state a material fact
        necessary in order to make the statements made, in light of the circumstances
        under which they were made, not misleading.

       

      SECTION
        10.   Conditions
        to Closing. 

       

      (a)  The
        obligations of the Purchaser under this Agreement will be subject to the
        satisfaction, on or prior to the Closing Date, of the following
        conditions:

       

      (1)  Each
        of
        the obligations of the Mortgage Loan Seller required to be performed at or
        prior
        to the Closing Date pursuant to the terms of this Agreement shall have been
        duly
        performed and complied with in all material respects; all of the representations
        and warranties of the Mortgage Loan Seller under this Agreement shall be
        true
        and correct as of the date or dates specified in all material respects; and
        no
        event shall have occurred which, with notice or the passage of time, would
        constitute a default under this Agreement or the Pooling and Servicing
        Agreement; and the Purchaser shall have received certificates to that effect
        signed by authorized officers of each of the Mortgage Loan Seller.

       

      (2)  The
        Purchaser shall have received all of the following closing documents, in
        such
        forms as are agreed upon and reasonably acceptable to the Purchaser, duly
        executed by all signatories other than the Purchaser as required pursuant
        to the
        respective terms thereof:

       

      (i)  If
        required pursuant to Section 3 hereof, the Amendment dated as of the Closing
        Date and any documents referred to therein;

       

      (ii)  If
        required pursuant to Section 3 hereof, the Final Mortgage Loan Schedule
        containing the information set forth on Exhibit
        2
        hereto,
        one copy to be attached to each counterpart of the Amendment;

       

      (iii)  The
        Pooling and Servicing Agreement, in form and substance reasonably satisfactory
        to the Trustee and the Purchaser, and all documents required thereby duly
        executed by all signatories;

       

      (iv)  A
        certificate of an officer of the Mortgage Loan Seller dated as of the Closing
        Date, in a form reasonably acceptable to the Purchaser, and attached thereto
        the
        resolutions of the Mortgage Loan Seller authorizing the transactions
        contemplated by this Agreement, together with copies of the articles of
        incorporation, by-laws and certificate of good standing of the Mortgage Loan
        Seller;

       

      (v)  One
        or
        more opinions of counsel from the Mortgage Loan Seller’s counsel otherwise in
        form and substance reasonably satisfactory to the Purchaser the Trustee and
        each
        Rating Agency;

       

      (vi)  A
        letter
        from each of the Rating Agencies giving each Class of Certificates set forth
        on
        Schedule A hereto the rating set forth therein; and

       

      (vii)  Such
        other documents, certificates (including additional representations and
        warranties) and opinions as may be reasonably necessary to secure the intended
        ratings from each Rating Agency for the Certificates.

       

      (3)  The
        Certificates to be sold to Bear Stearns pursuant to the Underwriting Agreement
        and the Purchase Agreement shall have been issued and sold to Bear
        Stearns.

       

      (4)  The
        Mortgage Loan Seller shall have furnished to the Purchaser such other
        certificates of its officers or others and such other documents and opinions
        of
        counsel to evidence fulfillment of the conditions set forth in this Agreement
        and the transactions contemplated hereby as the Purchaser and their respective
        counsel may reasonably request.

       

      (b)  The
        obligations of the Mortgage Loan Seller under this Agreement shall be subject
        to
        the satisfaction, on or prior to the Closing Date, of the following
        conditions:

       

      (1)  The
        obligations of the Purchaser required to be performed by it on or prior to
        the
        Closing Date pursuant to the terms of this Agreement shall have been duly
        performed and complied with in all material respects, and all of the
        representations and warranties of the Purchaser under this Agreement shall
        be
        true and correct in all material respects as of the date hereof and as of
        the
        Closing Date, and no event shall have occurred which would constitute a breach
        by it of the terms of this Agreement or the Pooling and Servicing Agreement,
        and
        the Mortgage Loan Seller shall have received a certificate to that effect
        signed
        by an authorized officer of the Purchaser.

       

      (2)  The
        Mortgage Loan Seller shall have received copies of all of the following closing
        documents, in such forms as are agreed upon and reasonably acceptable to
        the
        Mortgage Loan Seller, duly executed by all signatories other than the related
        Mortgage Loan Seller as required pursuant to the respective terms
        thereof:

       

      (i)  If
        required pursuant to Section 3 hereof, the Amendment dated as of the Closing
        Date and any documents referred to therein;

       

      (ii)  The
        Pooling and Servicing Agreement, in form and substance reasonably satisfactory
        to the Mortgage Loan Seller and the Trustee, and all documents required thereby
        duly executed by all signatories;

       

      (iii)  A
        certificate of an officer of the Purchaser dated as of the Closing Date,
        in a
        form reasonably acceptable to the Mortgage Loan Seller and attached thereto
        the
        written consent of the member of the Purchaser authorizing the transactions
        contemplated by this Agreement, the Pooling and Servicing Agreement, together
        with copies of the Purchaser’s certificate of formation, limited liability
        company agreement and evidence as to the good standing of the Purchaser dated
        as
        of a recent date;

       

      (iv)  One
        or
        more opinions of counsel from the Purchaser’s counsel in form and substance
        reasonably satisfactory to the Mortgage Loan Seller, the Trustee and the
        Rating
        Agencies; and

       

      (v)  Such
        other documents, certificates (including additional representations and
        warranties) and opinions as may be reasonably necessary to secure the intended
        rating from each Rating Agency for the Certificates.

       

      SECTION
        11.   Fees
        and Expenses.
        Subject
        to Section 16 hereof, the Mortgage Loan Seller shall pay on the Closing Date
        or
        such later date as may be agreed to by the Purchaser (i) the fees and expenses
        of the Mortgage Loan Seller’s attorneys and the reasonable fees and expenses of
        the Purchaser’s attorneys, (ii) the fees and expenses of Deloitte & Touche
        LLP, (iii) the fee for the use of Purchaser’s Registration Statement based on
        the aggregate original principal amount of the Certificates and the filing
        fee
        of the Commission as in effect on the date on which the Registration Statement
        was declared effective, (iv) the fees and expenses including counsel’s fees and
        expenses in connection with any “blue sky” and legal investment matters, (v) the
        fees and expenses of the Trustee which shall include without limitation the
        fees
        and expenses of the Trustee (and the fees and disbursements of its counsel)
        with
        respect to (A) legal and document review of this Agreement, the Pooling and
        Servicing Agreement, the Certificates and related agreements, (B) attendance
        at
        the Closing and (C) review of the Mortgage Loans to be performed by the Trustee
        or the related Custodian on its behalf, (vi) the expenses for printing or
        otherwise reproducing the Certificates, the Prospectus and the Prospectus
        Supplement, (vii) the fees and expenses of each Rating Agency (both initial
        and
        ongoing), (viii) the fees and expenses relating to the preparation and
        recordation of mortgage assignments (including intervening assignments, if
        any
        and if available, to evidence a complete chain of title from the originator
        to
        the Trustee) from the Mortgage Loan Seller to the Trustee or the expenses
        relating to the Opinion of Counsel referred to in Section 6(a) hereof, as
        the
        case may be and (ix) Mortgage File due diligence expenses and other
        out-of-pocket expenses incurred by the Purchaser in connection with the purchase
        of the Mortgage Loans and by Bear Stearns in connection with the sale of
        the
        Certificates. The Mortgage Loan Seller additionally agrees to pay directly
        to
        any third party on a timely basis the fees provided for above which are charged
        by such third party and which are billed periodically.

       

      SECTION
        12.   Accountants’
        Letters. 

       

      (a)  Deloitte
        & Touche LLP
        will
        review the characteristics of a sample of the Mortgage Loans described in
        the
        Final Mortgage Loan Schedule and will compare those characteristics to the
        description of the Mortgage Loans contained in the Free Writing Prospectus
        under
        the captions “Summary—The Mortgage Loans” and “The Mortgage Pool” and in
        Schedule A thereto. Deloitte & Touche LLP
        will
        review the characteristics of a sample of the Mortgage Loans described in
        the
        Final Mortgage Loan Schedule and will compare those characteristics to the
        description of the Mortgage Loans contained in the Prospectus Supplement
        under
        the captions “Summary—The Mortgage Loans” and “The Mortgage Pool” and in
        Schedule A thereto. The Mortgage Loan Seller will cooperate with the Purchaser
        in making available all information and taking all steps reasonably necessary
        to
        permit such accountants to complete the review and to deliver the letters
        required of them under the Underwriting Agreement. Deloitte & Touche
LLP
        will
        also confirm certain calculations as set forth under the caption “Yield,
        Prepayment and Maturity Considerations” in the Prospectus
        Supplement.

       

      (b)  To
        the
        extent statistical information with respect to the Mortgage Loan Seller’s
        servicing portfolio is included in the Prospectus Supplement under the caption
        “Master
        Servicing and Servicing of the Mortgage Loans,”
a
        letter from the certified public accountant for the Mortgage Loan Seller
        will be
        delivered to the Purchaser dated the date of the Prospectus Supplement, in
        the
        form previously agreed to by the Mortgage Loan Seller and the Purchaser,
        with
        respect to such statistical information.

       

      SECTION
        13.   Indemnification. 

       

      (a)  The
        Mortgage Loan Seller shall indemnify and hold harmless the Purchaser and
        its
        directors, officers and controlling persons (as defined in Section 15 of
        the
        Securities Act) from and against any loss, claim, damage or liability or
        action
        in respect thereof, to which they or any of them may become subject, under
        the
        Securities Act or otherwise, insofar as such loss, claim, damage, liability
        or
        action arises out of, or is based upon any untrue statement of a material
        fact
        contained in the Mortgage
        Loan Seller’s Information
        as
        identified in Exhibit
        3,
        the
        omission to state in the Free Writing Prospectus, the Prospectus Supplement
        or
        Prospectus (or any amendment thereof or supplement thereto approved by the
        Mortgage Loan Seller and in which additional Mortgage Loan Seller’s Information
        is identified), in reliance upon and in conformity with Mortgage Loan Seller’s
        Information a material fact required to be stated therein or necessary to
        make
        the statements therein in light of the circumstances in which they were made,
        not misleading; and the Mortgage Loan Seller shall reimburse the Purchaser
        and
        each other indemnified party for any legal and other expenses reasonably
        incurred by them in connection with investigating or defending or preparing
        to
        defend against any such loss, claim, damage, liability or action.

       

      (b)  The
        foregoing indemnity agreement is in addition to any liability which the Mortgage
        Loan Seller otherwise may have to the Purchaser or any other such indemnified
        party.

       

      (c)  The
        Purchaser shall indemnify and hold harmless the Mortgage Loan Seller and
        its
        respective directors, officers and controlling persons (as defined in Section
        15
        of the Securities Act) from and against any loss, claim, damage or liability
        or
        action in respect thereof, to which they or any of them may become subject,
        under the Securities Act or otherwise, insofar as such loss, claim, damage,
        liability or action arises out of, or is based upon any untrue statement
        of a
        material fact contained in the Purchaser’s
        Information
        as
        identified in Exhibit
        4,
        the
        omission to state in the Prospectus Supplement or Prospectus (or any amendment
        thereof or supplement thereto approved by the Purchaser and in which additional
        Purchaser’s Information is identified), in reliance upon and in conformity with
        the Purchaser’s Information, a material fact required to be stated therein or
        necessary to make the statements therein in light of the circumstances in
        which
        they were made, not misleading; and the Purchaser shall reimburse the Mortgage
        Loan Seller and each other indemnified party for any legal and other expenses
        reasonably incurred by them in connection with investigating or defending
        or
        preparing to defend any such loss, claim, damage, liability or action. The
        foregoing indemnity agreement is in addition to any liability which the
        Purchaser otherwise may have to the Mortgage Loan Seller or any other such
        indemnified party.

       

      (d)  Promptly
        after receipt by an indemnified party under subsection (a) or (b) above of
        notice of the commencement of any action, such indemnified party shall, if
        a
        claim in respect thereof is to be made against the indemnifying party under
        such
        subsection, notify each party against whom indemnification is to be sought
        in
        writing of the commencement thereof (but the failure so to notify an
        indemnifying party shall not relieve it from any liability which it may have
        under this Section 13 except to the extent that it has been prejudiced in
        any
        material respect by such failure or from any liability which it may have
        otherwise). In case any such action is brought against any indemnified party,
        and it notifies an indemnifying party of the commencement thereof, the
        indemnifying party will be entitled to participate therein and, to the extent
        it
        may elect by written notice delivered to the indemnified party promptly (but,
        in
        any event, within 30 days) after receiving the aforesaid notice from such
        indemnified party, to assume the defense thereof with counsel reasonably
        satisfactory to such indemnified party. Notwithstanding the foregoing, the
        indemnified party or parties shall have the right to employ its or their
        own
        counsel in any such case, but the fees and expenses of such counsel shall
        be at
        the expense of such indemnified party or parties unless (i) the employment
        of
        such counsel shall have been authorized in writing by one of the indemnifying
        parties in connection with the defense of such action, (ii) the indemnifying
        parties shall not have employed counsel to have charge of the defense of
        such
        action within a reasonable time after notice of commencement of the action,
        or
        (iii) such indemnified party or parties shall have reasonably concluded that
        there is a conflict of interest between itself or themselves and the
        indemnifying party in the conduct of the defense of any claim or that the
        interests of the indemnified party or parties are not substantially co-extensive
        with those of the indemnifying party (in which case the indemnifying parties
        shall not have the right to direct the defense of such action on behalf of
        the
        indemnified party or parties), in any of which events such fees and expenses
        shall be borne by the indemnifying parties (provided,
        however,
        that
        the indemnifying party shall be liable only for the fees and expenses of
        one
        counsel in addition to one local counsel in the jurisdiction involved. Anything
        in this subsection to the contrary notwithstanding, an indemnifying party
        shall
        not be liable for any settlement or any claim or action effected without
        its
        written consent; provided,
        however,
        that
        such consent was not unreasonably withheld.

       

      (e)  If
        the
        indemnification provided for in paragraphs (a) and (b) of this Section 13
        shall
        for any reason be unavailable to an indemnified party in respect of any loss,
        claim, damage or liability, or any action in respect thereof, referred to
        in
        Section 13, then the indemnifying party shall in lieu of indemnifying the
        indemnified party contribute to the amount paid or payable by such indemnified
        party as a result of such loss, claim, damage or liability, or action in
        respect
        thereof, in such proportion as shall be appropriate to reflect the relative
        benefits received by the Mortgage Loan Seller on the one hand and the Purchaser
        on the other from the purchase and sale of the Mortgage Loans, the offering
        of
        the Certificates and the other transactions contemplated hereunder. No person
        found liable for a fraudulent misrepresentation shall be entitled to
        contribution from any person who is not also found liable for such fraudulent
        misrepresentation.

       

      (f)  The
        parties hereto agree that reliance by an indemnified party on any publicly
        available information or any information or directions furnished by an
        indemnifying party shall not constitute negligence, bad faith or willful
        misconduct by such indemnified party.

       

      SECTION
        14.   Notices.
        All
        demands, notices and communications hereunder shall be in writing but may
        be
        delivered by facsimile transmission subsequently confirmed in writing. Notices
        to the Mortgage Loan Seller shall be directed to EMC Mortgage Corporation,
        2780
        Lake Vista Drive, Lewisville, Texas 75067, (Telecopy: (972-444-2880)),
        attention: President or General Counsel; notices to the Purchaser shall be
        directed to Bear Stearns Asset Backed Securities I LLC, 383 Madison Avenue,
        New
        York, New York 10179, (Telecopy: (212-272-7206)), Attention: Chief Counsel;
        or
        to any other address as may hereafter be furnished by one party to the other
        party by like notice.  Any such demand, notice or communication
        hereunder shall be deemed to have been received on the date received at the
        premises of the addressee (as evidenced, in the case of registered or certified
        mail, by the date noted on the return receipt) provided that it is received
        on a
        business day during normal business hours and, if received after normal business
        hours, then it shall be deemed to be received on the next business
        day.

       

      SECTION
        15.   Transfer
        of Mortgage Loans.
        The
        Purchaser retains the right to assign the Mortgage Loans and any or all of
        its
        interest under this Agreement to the Trustee without the consent of the Mortgage
        Loan Seller, and, upon such assignment, the Trustee shall succeed to the
        applicable rights and obligations of the Purchaser hereunder; provided, however,
        the Purchaser shall remain entitled to the benefits set forth in Sections
        11, 13
        and 17 hereto and as provided in Section 2(a). Notwithstanding the foregoing,
        the sole and exclusive right and remedy of the Trustee with respect to a
        breach
        of representation or warranty of the Mortgage Loan Seller shall be the cure,
        purchase or substitution obligations of the Mortgage Loan Seller contained
        in
        Sections 5 and 7 hereof.

       

      SECTION
        16.   Termination.
        This
        Agreement may be terminated (a) by the mutual consent of the parties hereto
        prior to the Closing Date, (b) by the Purchaser, if the conditions to the
        Purchaser’s obligation to close set forth under Section 10(a) hereof are not
        fulfilled as and when required to be fulfilled or (c) by the Mortgage Loan
        Seller, if the conditions to the Mortgage Loan Seller’s obligation to close set
        forth under Section 10(b) hereof are not fulfilled as and when required to
        be
        fulfilled. In the event of termination pursuant to clause (b), the Mortgage
        Loan
        Seller shall pay, and in the event of termination pursuant to clause (c),
        the
        Purchaser shall pay, all reasonable out-of-pocket expenses incurred by the
        other
        in connection with the transactions contemplated by this Agreement. In the
        event
        of a termination pursuant to clause (a), each party shall be responsible
        for its
        own expenses.

       

      SECTION
        17.   Representations,
        Warranties and Agreements to Survive Delivery.
        All
        representations, warranties and agreements contained in this Agreement, or
        contained in certificates of officers of the Mortgage Loan Seller submitted
        pursuant hereto, shall remain operative and in full force and effect and
        shall
        survive delivery of the Mortgage Loans to the Purchaser (and by the Purchaser
        to
        the Trustee). Subsequent to the delivery of the Mortgage Loans to the Purchaser,
        the Mortgage Loan Seller’s representations and warranties contained herein with
        respect to the Mortgage Loans shall be deemed to relate to the Mortgage Loans
        actually delivered to the Purchaser and included in the Final Mortgage Loan
        Schedule and any Replacement Mortgage Loan and not to those Mortgage Loans
        deleted from the Preliminary Mortgage Loan Schedule pursuant to Section 3
        hereof
        prior to the Closing.

       

      SECTION
        18.   Severability.
        If any
        provision of this Agreement shall be prohibited or invalid under applicable
        law,
        this Agreement shall be ineffective only to such extent, without invalidating
        the remainder of this Agreement.

       

      SECTION
        19.   Counterparts.
        This
        Agreement may be executed in counterparts, each of which will be an original,
        but which together shall constitute one and the same agreement.

       

      SECTION
        20.   Amendment.
        This
        Agreement cannot be amended or modified in any manner without the prior written
        consent of each party.

       

      SECTION
        21.   GOVERNING
        LAW.
        THIS
        AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
        OF
        THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF
        OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

       

      SECTION
        22.   Further
        Assurances.
        Each of
        the parties agrees to execute and deliver such instruments and take such
        actions
        as another party may, from time to time, reasonably request in order to
        effectuate the purpose and to carry out the terms of this Agreement including
        any amendments hereto which may be required by either Rating
        Agency.

       

      SECTION
        23.   Successors
        and Assigns. 

       

      (a)  This
        Agreement shall bind and inure to the benefit of and be enforceable by the
        Mortgage Loan Seller and the Purchaser and their permitted successors and
        assigns and, to the extent specified in Section 13 hereof, Bear Stearns,
        and
        their directors, officers and controlling persons (within the meaning of
        federal
        securities laws), to the extent of its rights as a third party beneficiary
        hereunder. The Mortgage Loan Seller acknowledges and agrees that the Purchaser
        may assign its rights under this Agreement (including, without limitation,
        with
        respect to the Mortgage Loan Seller’s representations and warranties respecting
        the Mortgage Loans) to the Trustee. Any person into which the Mortgage Loan
        Seller may be merged or consolidated (or any person resulting from any merger
        or
        consolidation involving the Mortgage Loan Seller), any person resulting from
        a
        change in form of the Mortgage Loan Seller or any person succeeding to the
        business of the Mortgage Loan Seller, shall be considered the “successor” of the
        Mortgage Loan Seller hereunder and shall be considered a party hereto without
        the execution or filing of any paper or any further act or consent on the
        part
        of any party hereto. Except as provided in the two preceding sentences, this
        Agreement cannot be assigned, pledged or hypothecated by either party hereto
        without the written consent of the other parties to this Agreement and any
        such
        assignment or purported assignment shall be deemed null and void.

       

      SECTION
        24.   The
        Mortgage Loan Seller.
        The
        Mortgage Loan Seller will keep in full force and effect its existence, all
        rights and franchises as a corporation or a limited liability company, as
        the
        case may be, under the laws of the State of its incorporation and will obtain
        and preserve its qualification to do business as a foreign corporation or
        a
        limited liability company, as the case may be, in each jurisdiction in which
        such qualification is necessary to perform its obligations under this
        Agreement.

       

      SECTION
        25.   Entire
        Agreement.
        This
        Agreement contains the entire agreement and understanding between the parties
        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.

       

      SECTION
        26.   No
        Partnership.
        Nothing
        herein contained shall be deemed or construed to create a partnership or
        joint
        venture between the parties hereto.

       

      

      [Signature
        Page Follows]

      

      

      

        
           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have caused their names to be signed
        hereto
        by their respective duly authorized officers as of the date first above
        written.

       

      
        	
                EMC
                  MORTGAGE CORPORATION

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 
	 
	 
	
                BEAR
                  STEARNS ASSET BACKED SECURITIES I LLC

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

      

      EXHIBIT
        1

      CONTENTS
        OF MORTGAGE FILE

       

      With
        respect to each Mortgage Loan, the Mortgage File shall include each of the
        following items, which shall be available for inspection by the Purchaser
        or its
        designee, and which shall be delivered to the Purchaser or its designee pursuant
        to the terms of this Agreement.

       

      (i)  The
        original Mortgage Note, including any riders thereto, endorsed without recourse
        to the order of blank or to “Citibank, N.A.”, as Trustee for certificateholders
        of SACO I Trust, Mortgage-Backed Certificates, Series 2006-9,” and showing to
        the extent available to the Mortgage Loan Seller an unbroken chain of
        endorsements from the original payee thereof to the Person endorsing it to
        the
        Trustee;

       

      (ii)  the
        original Mortgage and, if the related Mortgage Loan is a MOM Loan, noting
        the
        presence of the MIN and language indicating that such Mortgage Loan is a
        MOM
        Loan, which shall have been recorded (or, for Mortgage Loans other than the
        EMC
        Flow Loans, if the original is not available, a copy), with evidence of such
        recording indicated thereon (or if clause (x) in the proviso below applies,
        shall be in recordable form);

       

      (iii)  unless
        the Mortgage Loan is a MOM Loan, the assignment (either an original or a
        copy,
        which may be in the form of a blanket assignment if permitted in the
        jurisdiction in which the Mortgaged Property is located) to the Trustee of
        the
        Mortgage with respect to each Mortgage Loan in the name of “Citibank, N.A., as
        Trustee for certificateholders of SACO I Trust, Mortgage-Backed Certificates,
        Series 2006-9,” which shall have been recorded (or if clause (x) in the proviso
        below applies, shall be in recordable form);

       

      (iv)  an
        original or a copy of all intervening assignments of the Mortgage, if any,
        to
        the extent available to the Mortgage Loan Seller, with evidence of recording
        thereon;

       

      (v)  the
        original policy of title insurance or mortgagee’s certificate of title insurance
        or commitment or binder for title insurance, if available, or a copy thereof,
        or, in the event that such original title insurance policy is unavailable,
        a
        photocopy thereof, or in lieu thereof, a current lien search on the related
        Mortgaged Property and

       

      (vi)  originals
        or copies of all available assumption, modification or substitution agreements,
        if any; provided, however, that in lieu of the foregoing, the related Mortgage
        Loan Seller may deliver the following documents, under the circumstances
        set
        forth below: (x) if any Mortgage, assignment thereof to the Trustee or
        intervening assignments thereof have been delivered or are being delivered
        to
        recording offices for recording and have not been returned in time to permit
        their delivery as specified above, the Mortgage Loan Seller may deliver or
        may
        cause to be delivered a true copy thereof with a certification by the related
        Mortgage Loan Seller or the Master Servicer, on the face of such copy,
        substantially as follows: “Certified to be a true and correct copy of the
        original, which has been transmitted for recording”; (y) in lieu of the
        Mortgage, assignments to the Trustee or intervening assignments thereof,
        if the
        applicable jurisdiction retains the originals of such documents or if the
        originals are lots (in each case, as evidenced by a certification from the
        Mortgage Loan Seller or the Master Servicer to such effect), the Mortgage
        Loan
        Seller may deliver photocopies of such documents containing an original
        certification by the judicial or other governmental authority of the
        jurisdiction where such documents were recorded; and (z) in lieu of the Mortgage
        Notes relating to the Mortgage Loans identified in the list set forth in
        Exhibit
        J to the Pooling and Servicing Agreement, the Mortgage Loan Seller may deliver
        a
        lost note affidavit and indemnities of the Mortgage Loan Seller; and provided,
        further, however, that in the case of Mortgage Loans which have been prepaid
        in
        full after the Cut-Off Date and prior to the Closing Date, the Mortgage Loan
        Seller, in lieu of delivering the above documents, may deliver to the Trustee
        a
        certification by the Mortgage Loan Seller or the Master Servicer to such
        effect.
        In the case of the documents referred to in clause (x) above, the Mortgage
        Loan
        Seller shall deliver such documents to the Trustee or its Custodian promptly
        after they are received. The Mortgage Loan Seller shall cause, at its expense,
        the Mortgage and intervening assignments, if any, and to the extent required
        in
        accordance with the foregoing, the assignment of the Mortgage to the Trustee
        to
        be submitted for recording promptly after the Closing Date; provided that
        the
        Mortgage Loan Seller need not cause to be recorded any assignment (a) in
        any
        jurisdiction under the laws of which, as evidenced by an Opinion of Counsel
        addressed to the Trustee delivered by the Mortgage Loan Seller to the Trustee
        and the Rating Agencies, the recordation of such assignment is not necessary
        to
        protect the Trustee’s interest in the related Mortgage Loan or (b) if MERS is
        identified on the Mortgage or on a properly recorded assignment of the Mortgage
        as mortgagee of record solely as nominee for the Mortgage Loan Seller and
        its
        successors and assigns. In the event that the Mortgage Loan Seller, the
        Purchaser or the Master Servicer gives written notice to the Trustee that
        a
        court has recharacterized the sale of the Mortgage Loans as a financing,
        the
        Mortgage Loan Seller shall submit or cause to be submitted for recording
        as
        specified above or, should the Mortgage Loan Seller fail to perform such
        obligations, the Master Servicer shall cause each such previously unrecorded
        assignment to be submitted for recording as specified above at the expense
        of
        the Trust. In the event a Mortgage File is released to the Mortgage Loan
        Seller
        or the Master Servicer as a result of such Person having completed a Request
        for
        Release, the Custodian shall, if not so completed, complete the assignment
        of
        the related Mortgage in the manner specified in clause (iii) above.

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        2

       

      MORTGAGE
        LOAN SCHEDULE INFORMATION

       

      The
        Preliminary and Final Mortgage Loan Schedules shall set forth the following
        information with respect to each Mortgage Loan:

       

      (a)  the
        city,
        state and zip code of the Mortgaged Property; 

      (b)  the
        property type;

      (c)  the
        Mortgage Rate;

      (d)  the
        Servicing Fee Rate;

      (e)  the
        Master Servicer’s Fee Rate;

      (f)  the
        LPMI
        Fee, if applicable;

      (g)  the
        Trustee Fee Rate, if applicable;

      (h)  the
        Net
        Rate;

      (i)  the
        maturity date;

      (j)  the
        stated original term to maturity;

      (k)  the
        stated remaining term to maturity;

      (l)  the
        original Principal Balance;

      (m)  the
        first
        payment date;

      (n)  the
        principal and interest payment in effect as of the Cut-off Date;

      (o)  the
        unpaid Principal Balance as of the Cut-off Date;

      (p)  the
        Loan-to-Value Ratio at origination;

      (q)  the
        insurer of any Primary Mortgage Insurance Policy;

      (r)  the
        MIN
        with respect to each MOM Loan;

      (s)  the
        Gross
        Margin, if applicable;

      (t)  the
        next
        Adjustment Date, if applicable;

      (u)  the
        Maximum Lifetime Mortgage Rate, if applicable;

      (v)  the
        Minimum Lifetime Mortgage Rate, if applicable;

      (w)  the
        Periodic Rate Cap, if applicable; 

      (x)  the
        Loan
        Group, if applicable;

      (y)  a
        code
        indicating whether the Mortgage Loan is negatively amortizing;

         
        (z)      which
        Mortgage Loans adjust after an initial fixed-rate period of one, two, three,
        five, seven or ten years or any other period; 

      (aa)  the
        Prepayment Charge, if any;

      (bb)  lien
        position (e.g., first lien or second lien);

      (cc)  a
        code
        indicating whether the Mortgage Loan is has a balloon payment;

      (dd)  a
        code
        indicating whether the Mortgage Loan is an interest-only loan; 

      (ee)  the
        interest-only term, if applicable;

      (ff)  the
        Mortgage Loan Seller; and

      (gg)  the
        original amortization term.

      

      Such
        schedule also shall set forth for all of the Mortgage Loans, the total number
        of
        Mortgage Loans, the total of each of the amounts described under (n) and
        (j)
        above, the weighted average by principal balance as of the Cut-off Date of
        each
        of the rates described under (c) through (h) above, and the weighted average
        remaining term to maturity by unpaid principal balance as of the Cut-off
        Date.

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        3

       

      MORTGAGE
        LOAN SELLER’S INFORMATION

       

       

      All
        information in the Prospectus Supplement described under the following captions:
        “SUMMARY — The Mortgage Loans,” “THE MORTGAGE POOL”, “THE SPONSOR” and “SCHEDULE
        A — Mortgage Loan Statistical Data.”

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        4

       

      PURCHASER’S
        INFORMATION

       

      All
        information in the Prospectus Supplement and the Prospectus, except the Mortgage
        Loan Seller’s Information.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        5

       

      SCHEDULE
        OF LOST NOTES

       

      Available
        Upon Request

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      EXHIBIT
        6

       

      REVISED
        April 18, 2006

      

      APPENDIX
        E - Standard & Poor’s Predatory Lending Categories

       

      Standard
        & Poor’s has categorized loans governed by anti-predatory lending laws in
        the Jurisdictions listed below into three categories based upon a combination
        of
        factors that include (a) the risk exposure associated with the assignee
        liability and (b) the tests and thresholds set forth in those laws. Note
        that
        certain loans classified by the relevant statute as Covered are included
        in
        Standard & Poor’s High Cost Loan Category because they included thresholds
        and tests that are typical of what is generally considered High Cost by the
        industry.

       

      Standard
        & Poor’s High Cost Loan Categorization

       

      
         

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending

                  Law/Effective
                    Date

                	
                  Category
                    under

                  Applicable
                    Anti- 

                  Predatory
                    Lending Law

                
	
                  Arkansas

                	
                  Arkansas
                    Home Loan Protection Act,

                  Ark.
                    Code Ann. §§ 23-53-101 et
                    seq.

                   

                  Effective
                    July 16, 2003

                	
                  High
                    Cost Home Loan

                
	
                  Cleveland
                    Heights, OH

                	
                  Ordinance
                    No. 72-2003 (PSH), Mun.

                  Code
                    §§ 757.01 et
                    seq.

                   

                  Effective
                    June 2, 2003

                	
                  Covered
                    Loan

                
	
                  Colorado

                	
                  Consumer
                    Equity Protection, Colo. Stat.

                  Ann.
                    §§ 5-3.5-101 et
                    seq.

                   

                  Effective
                    for covered loans offered or entered into on or after January
                    1, 2003.
                    Other provisions of the Act took effect on June 7, 2002

                	
                  Covered
                    Loan

                
	
                  Connecticut

                	
                  Connecticut
                    Abusive Home Loan

                  Lending
                    Practices Act, Conn. Gen. Stat.

                  §§
                    36a-746 et
                    seq.

                   

                  Effective
                    October 1, 2001

                	
                  High
                    Cost Home Loan

                
	
                  District
                    of Columbia

                	
                  Home
                    Loan Protection Act, D.C. Code

                  §§
                    26-1151.01 et
                    seq.

                   

                  Effective
                    for loans closed on or after January 28, 2003

                	
                  Covered
                    Loan

                
	
                  Florida

                	
                  Fair
                    Lending Act, Fla. Stat. Ann. §§

                  494.0078
                    et
                    seq.

                  Effective
                    October 2, 2002

                	
                  High
                    Cost Home Loan

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending

                  Law/Effective
                    Date

                	
                  Category
                    under

                  Applicable
                    Anti- 

                  Predatory
                    Lending Law

                
	
                  Georgia
                    (Oct. 1, 2002 -

                  Mar.
                    6, 2003)

                	
                  Georgia
                    Fair Lending Act, Ga. Code

                  Ann.
                    §§ 7-6A-1 et
                    seq.

                   

                  Effective
                    October 1, 2002 - March 6 2003

                	
                  High
                    Cost Home Loan

                
	
                  Georgia
                    as amended

                  (Mar.
                    7, 2003 - current)

                	
                  Georgia
                    Fair Lending Act, Ga. Code

                  Ann.
                    §§ 7-6A-1 et
                    seq.

                   

                  Effective
                    for loans closed on or after

                  March
                    7, 2003

                	
                  High
                    Cost Home Loan

                
	
                  HOEPA
                    Section 32

                	
                  Home
                    Ownership and Equity Protection

                  Act
                    of 1994, 15 U.S.C. § 1639, 12

                  C.F.R.
                    §§ 226.32 and 226.34

                   

                  Effective
                    October 1, 1995, amendments

                  October
                    1, 2002

                	
                  High
                    Cost Loan

                
	
                  Illinois

                	
                  High
                    Risk Home Loan Act, Ill. Comp.

                  Stat.
                    tit. 815, §§ 137/5 et
                    seq.

                   

                  Effective
                    January 1, 2004 (prior to this date, regulations under
                    Residential

                  Mortgage
                    License Act effective from May 14, 2001)

                	
                  High
                    Risk Home Loan

                
	
                  Kansas

                	
                  Consumer
                    Credit Code, Kan. Stat. Ann.

                  §§
                    16a-1-101 et
                    seq.

                   

                  Sections
                    16a-1-301 and 16a-3-207 became effective April 14, 1999;

                  Section
                    16a-3-308a became effective July 1, 1999

                	
                  High
                    Loan to Value Consumer Loan (id.
§
                    16a-3-207) and;

                
	
                  High
                    APR Consumer Loan (id.
§
                    16a-3-308a)

                
	
                  Kentucky

                	
                  2003
                    KY H.B. 287 - High Cost Home

                  Loan
                    Act, Ky. Rev. Stat. §§ 360.100 et seq.

                   

                  Effective
                    June 24, 2003

                	
                  High
                    Cost Home Loan

                
	
                  Maine

                	
                  Truth
                    in Lending, Me. Rev. Stat. tit. 9-

                  A,
                    §§ 8-101 et
                    seq.

                   

                  Effective
                    September 29, 1995 and as amended from time to time

                	
                  High
                    Rate High Fee Mortgage

                
	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending

                  Law/Effective
                    Date

                	
                  Category
                    under

                  Applicable
                    Anti- 

                  Predatory
                    Lending Law

                
	
                  Massachusetts

                	
                  Part
                    40 and Part 32, 209 C.M.R. §§

                  32.00
                    et
                    seq.
                    and 209 C.M.R. §§ 40.01 et
                    seq.

                   

                  Effective
                    March 22, 2001 and amended from time to time

                	
                  High
                    Cost Home Loan

                
	
                  Nevada

                	
                  Assembly
                    Bill No. 284, Nev. Rev. Stat.

                  §§
                    598D.010 et
                    seq.

                   

                  Effective
                    October 1, 2003

                	
                  Home
                    Loan

                
	
                  New
                    Jersey

                	
                  New
                    Jersey Home Ownership Security

                  Act
                    of 2002, N.J. Rev. Stat. §§ 46:10B- 22 et
                    seq.

                   

                  Effective
                    for loans closed on or after November 27, 2003

                	
                  High
                    Cost Home Loan

                
	
                  New
                    Mexico

                	
                  Home
                    Loan Protection Act, N.M. Rev.

                  Stat.
                    §§ 58-21A-1 et
                    seq.

                   

                  Effective
                    as of January 1, 2004; Revised

                  as
                    of February 26, 2004

                	
                  High
                    Cost Home Loan

                
	
                  New
                    York

                	
                  N.Y.
                    Banking Law Article 6-1

                   

                  Effective
                    for applications made on or after April 1, 2003

                	
                  High
                    Cost Home Loan

                
	
                  North
                    Carolina

                	
                  Restrictions
                    and Limitations on High

                  Cost
                    Home Loans, N.C. Gen. Stat. §§ 24-1.1E et
                    seq.

                   

                  Effective
                    July 1, 2000; amended October 1, 2003 (adding open-end lines
                    of
                    credit)

                	
                  High
                    Cost Home Loan

                
	
                  Ohio

                	
                  H.B.
                    386 (codified in various sections of the Ohio Code), Ohio Rev.
                    Code Ann.
                    §§ 1349.25 et
                    seq.

                   

                  Effective
                    May 24, 2002

                	
                  Covered
                    Loan

                
	
                  Oklahoma

                	
                  Consumer
                    Credit Code (codified in various sections of Title 14A)

                   

                  Effective
                    July 1, 2000; amended effective January 1, 2004

                   

                   

                   

                	
                  Subsection
                    10 Mortgage

                
	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending

                  Law/Effective
                    Date

                	
                  Category
                    under

                  Applicable
                    Anti- 

                  Predatory
                    Lending Law

                
	
                  South
                    Carolina

                	
                  South
                    Carolina High Cost and

                  Consumer
                    Home Loans Act, S.C. Code

                  Ann.
                    §§ 37-23-10 et
                    seq.

                   

                  Effective
                    for loans taken on or after January 1, 2004

                	
                  High
                    Cost Home Loan

                
	
                  West
                    Virginia

                	
                  West
                    Virginia Residential Mortgage Lender, Broker and Servicer Act,
                    W.

                  Va.
                    Code Ann. §§ 31-17-1 et
                    seq.

                   

                  Effective
                    June 5, 2002

                	
                  West
                    Virginia Mortgage Loan Act Loan

                

        

        

        Standard
          & Poor’s Covered Loan Categorization

         

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending

                  Law/Effective
                    Date

                	
                  Category
                    under

                  Applicable
                    Anti- 

                  Predatory
                    Lending Law

                
	
                  Georgia
                    (Oct. 1, 2002 -

                  Mar.
                    6, 2003)

                	
                  Georgia
                    Fair Lending Act, Ga. Code

                  Ann.
                    §§ 7-6A-1 et
                    seq.

                   

                  Effective
                    October 1, 2002 - March 6, 2003

                	
                  Covered
                    Loan

                
	
                  New
                    Jersey

                	
                  New
                    Jersey Home Ownership Security

                  Act
                    of 2002, N.J. Rev. Stat. §§ 46:10B 22 et
                    seq.

                   

                  Effective
                    November 27, 2003 - July 5, 2004

                	
                  Covered
                    Home Loan

                

        

        

        Standard
          & Poor’s Home Loan Categorization

         

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending

                  Law/Effective
                    Date

                	
                  Category
                    under

                  Applicable
                    Anti- 

                  Predatory
                    Lending Law

                
	
                  Georgia
                    (Oct. 1, 2002 -

                  Mar.
                    6, 2003)

                	
                  Georgia
                    Fair Lending Act, Ga. Code

                  Ann.
                    §§ 7-6A-1 et
                    seq.

                   

                  Effective
                    October 1, 2002 - March 6, 2003

                	
                  Home
                    Loan

                
	
                  New
                    Jersey

                	
                  New
                    Jersey Home Ownership Security

                  Act
                    of 2002, N.J. Rev. Stat. §§ 46:10B- 22 et
                    seq.

                   

                  Effective
                    for loans closed on or after November 27, 2003

                	
                  Home
                    Loan

                
	
                  New
                    Mexico

                	
                  Home
                    Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et
                    seq.

                   

                  Effective
                    as of January 1, 2004; Revised as of February 26, 2004

                	
                  Home
                    Loan

                
	
                  North
                    Carolina

                	
                  Restrictions
                    and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§

                  24-1.1E
                    et
                    seq.

                   

                  Effective
                    July 1, 2000; amended October 1, 2003 (adding open-end lines
                    of
                    credit)

                	
                  Consumer
                    Home Loan

                
	
                  South
                    Carolina

                	
                  South
                    Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                    et
                    seq.

                   

                  Effective
                    for loans taken on or after January 1, 2004

                	
                  Consumer
                    Home Loan 

                

        

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      SCHEDULE
        A

       

      REQUIRED
        RATINGS FOR EACH CLASS OF CERTIFICATES

       

      Public
        Certificates

       

      
        	
                Class

              	
                Standard
                  & Poor’s

              	
                Moody’s

              
	
                A

              	
                AAA

              	
                Aaa

              
	
                M-1

              	
                AA+

              	
                Aa1

              
	
                M-2

              	
                AA

              	
                Aa2

              
	
                M-3

              	
                AA-

              	
                Aa3

              
	
                M-4

              	
                A+

              	
                A1

              
	
                M-5

              	
                A

              	
                A2

              
	
                M-6

              	
                A-

              	
                A3

              
	
                B-1

              	
                BBB+

              	
                Baa1

              
	
                B-2

              	
                BBB

              	
                Baa2

              
	
                B-3

              	
                BBB-

              	
                Baa3

              

      

      

      None
        of
        the above ratings has been lowered, qualified or withdrawn since the dates
        of
        issuance of such ratings by the Rating Agencies.

       

      Private
        Certificates

       

      
        	
                Class

              	
                Standard
                  & Poor’s

              	
                Moody’s

              
	
                B-4

              	
                [BB+]

              	
                [Ba1]

              
	
                C

              	
                Not
                  Rated

              	
                Not
                  Rated

              
	
                R-1

              	
                Not
                  Rated

              	
                Not
                  Rated

              
	
                R-2

              	
                Not
                  Rated

              	
                Not
                  Rated

              
	
                R-3

              	
                Not
                  Rated

              	
                Not
                  Rated

              
	
                RX

              	
                Not
                  Rated

              	
                Not
                  Rated

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        M

      

      FORM
        OF
        BACK-UP CERTIFICATION

      

       

      Re:  The
        [         ]
        agreement dated as of [     ],
        200[  ] (the “Agreement”), among [IDENTIFY PARTIES]

       

      I,
        ________________________________, the _______________________ of [NAME OF
        COMPANY], certify to [the Purchaser], [the Depositor], and the [Master Servicer]
        [Securities Administrator] [Trustee], and their officers, with the knowledge
        and
        intent that they will rely upon this certification, that:

       

      (1) I
        have
        reviewed the servicer compliance statement of the Company provided in accordance
        with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
        assessment of the Company’s compliance with the servicing criteria set forth in
        Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance
        with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended
        (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing
        Assessment”), the registered public accounting firm’s attestation report
        provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act
        and
        Section 1122(b) of Regulation AB (the “Attestation
        Report”), and all servicing reports, officer’s certificates and other
        information relating to the servicing of the Mortgage Loans by the Company
        during 200[ ] that were delivered by the Company to the [Depositor] [Master
        Servicer] [Securities Administrator] [Trustee] pursuant to the Agreement
        (collectively, the “Company Servicing Information”);

       

      (2) Based
        on
        my knowledge, the Company Servicing Information, taken as a whole, does not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Company Servicing Information;

       

      (3) Based
        on
        my knowledge, all of the Company Servicing Information required to be provided
        by the Company under the Agreement has been provided to the [Depositor] [Master
        Servicer] [Securities Administrator] [Trustee];

       

      (4) I
        am
        responsible for reviewing the activities performed by the Company as servicer
        under the Agreement, and based on my knowledge and the compliance review
        conducted in preparing the Compliance Statement and except as disclosed in
        the
        Compliance Statement, the Servicing Assessment or the Attestation Report,
        the
        Company has fulfilled its obligations under the Agreement in all material
        respects; and

       

      (5) The
        Compliance Statement required to be delivered by the Company pursuant to
        the
        Agreement, and the Servicing Assessment and Attestation Report required to
        be
        provided by the Company and by any Subservicer or Subcontractor pursuant
        to the
        Agreement, have been provided to the [Depositor] [Master Servicer]. Any material
        instances of noncompliance described in such reports have been disclosed
        to the
        [Depositor] [Master Servicer]. Any material instance of noncompliance with
        the
        Servicing Criteria has been disclosed in such reports.

       

      

       

      Date: _________________________

       

       

      By:

       

      Name:
         ________________________________
        

       

      Title:
         ________________________________

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        N

       

      INTEREST
        RATE SWAP AGREEMENT

       

      

      
        	
                

              	
                 

                SWAP
                  TRANSACTION CONFIRMATION 

              
	
              

      

      

      
        	
                 
                  

              	
                 
                  

              
	
                Date:
                  

              	
                August
                  30, 2006 

              
	
                To:
                  

              	
                LaSalle
                  Bank National Association, not individually, but solely as Supplemental
                  Interest Trust Trustee on behalf of the Supplemental Interest
                  Trust (each as defined herein) with respect to SACO I Trust 2006-9,
                  Mortgage-Backed Certificates, Series 2006-9

              
	
                Phone:
                  

              	
                312-992-2745

              
	
                Fax:
                  

              	
                312-904-1368

              
	
                Attention:
                  

              	
                Global
                  Securities and Trust Services Group - SACO I Trust
                  2006-9

              
	
                From:
                  

              	
                Wachovia
                  Bank, N.A. 

              
	
                Ref.
                  No: 

              	
                1555475

              

      

      

      The
        purpose of this letter agreement ("Agreement") is to confirm the terms and
        conditions of the current Transaction entered into on the Trade Date specified
        below (the "Transaction") between Wachovia Bank, N.A. ("Wachovia") and
        LaSalle Bank National Association, not individually, but solely as trustee
        (the
“Supplemental Interest Trust Trustee”) on behalf of the supplemental interest
        trust with respect to the SACO I Trust 2006-9, Mortgage-Backed Certificates,
        Series 2006-9 (the “Supplemental Interest Trust”) (“Counterparty”) created under
        the Pooling and Servicing Agreement, dated as of August 1, 2006, among Bear
        Stearns Asset Backed Securities I LLC, a Delaware limited liability company,
        as
        depositor (the “Depositor”), EMC Mortgage Corporation, a Delaware corporation,
        as seller (in such capacity, the “Seller”) and as company (in such capacity, the
“Company”), LaSalle Bank National Association, a national banking association,
        as master servicer (in such capacity, the “Master Servicer”) and as securities
        administrator (in such capacity, the “Securities Administrator”), and Citibank,
        N.A., a national banking association, as trustee (the “Trustee”) (the
        “Pooling and Servicing Agreement”). This Agreement, which evidences a complete
        and binding agreement between you and us to enter into the Transaction on
        the
        terms set forth below, constitutes a "Confirmation" as referred to in the
        "ISDA
        Form Master Agreement" (as defined below), as well as a “Schedule” as referred
        to in the ISDA Form Master Agreement.

      

      1. This
        Agreement is subject to the 2000
        ISDA Definitions (the
        “Definitions”), as published by the International Swaps and Derivatives
        Association, Inc. (“ISDA”). Any reference to a “Swap Transaction” in the
        Definitions is deemed to be a reference to a “Transaction” for purposes of this
        Agreement, and any reference to a “Transaction” in this Agreement is deemed to
        be a reference to a “Swap Transaction” for purposes of the Definitions. You and
        we have agreed to enter into this Agreement in lieu of negotiating a Schedule
        to
        the 1992 ISDA Master Agreement (Multicurrency—Cross Border) form (the "ISDA Form
        Master Agreement"); rather, an ISDA Form Master Agreement with such elections
        and modifications as set forth herein shall be deemed to have been executed
        by
        you and us on the date we entered into the Transaction, and this Agreement
        shall
        form part of, supplement and be subject to such ISDA Form Master Agreement.
        For
        the avoidance of doubt, the Transaction described herein shall be the sole
        Transaction governed by such ISDA Form Master Agreement. Each term capitalized
        but not defined herein or
        in the Definitions
        shall
        have the meaning assigned thereto in the Pooling and Servicing Agreement.
        In the
        event of any inconsistency between the provisions of this Agreement and the
        Definitions or the ISDA Form Master Agreement, this Agreement shall prevail
        for
        purposes of the Transaction. Each reference to a “Section” (unless specifically
        referencing the Pooling and Servicing Agreement) or to a “Section” “of this
        Agreement” will be construed as a reference to a Section of the ISDA Form Master
        Agreement.

      

      2. The
        terms
        of the particular Transaction to which this Confirmation relates are as
        follows:

      

      
        	
                Type
                  of Transaction:

              	
                Interest
                  Rate Swap

              
	 	 
	
                Notional
                  Amount:

              	
                With
                  respect to any Calculation Period, the amount set forth for such
                  period on
                  Schedule I attached hereto.

              
	 	 
	
                Trade
                  Date:

              	
                August
                  16, 2006

              
	 	 
	
                Effective
                  Date:

              	
                August
                  30, 2006

              
	 	 
	
                Termination
                  Date:

              	
                May
                  25, 2010, subject to adjustment in accordance with the Business
                  Day
                  Convention; provided, however, that for the purpose of determining
                  the
                  final Fixed Rate Payer Period End Date, Termination Date shall
                  be subject
                  to No Adjustment.

              

      

      

      Fixed
        Amount:

      

      
        	
                Fixed
                  Rate Payer:

              	
                Counterparty

              
	 	 
	
                Fixed
                  Rate Payer

              	 
	
                Period
                  End Dates:

              	
                The
                  25th
                  calendar day of each month during the Term of this Transaction,
                  commencing
                  September 25, 2006, and ending on the Termination Date, with No
                  Adjustment.

              
	 	 
	
                Fixed
                  Rate Payer

              	 
	
                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. The Fixed Rate Payer Payment Date
                  shall be
                  one (1) Business Day preceding each Fixed Rate Payer Period End
                  Date.

              
	 	 
	
                Fixed
                  Rate:

              	
                5.265%

              
	 	 
	
                Fixed
                  Amount:

              	
                To
                  be determined in accordance with the following formula:

              
	 	 
	 	
                100*Fixed
                  Rate*Notional Amount*Fixed Rate Day Count
                  Fraction

              

      

      

      Fixed
        Rate Day 

      Count
        Fraction:                               30/360

      

      

      Floating
        Amounts: 

      

      
        	
                Floating
                  Rate Payer:

              	
                Wachovia

              
	 	 
	
                Floating
                  Rate Payer

              	 
	
                Period
                  End Dates:

              	
                The
                  25th
                  calendar day of each month during the Term of this Transaction,
                  commencing
                  September 25, 2006, and ending on the Termination Date, subject
                  to
                  adjustment in accordance with the Business Day
                  Convention.

              
	 	 
	
                Floating
                  Rate Payer 

              	 
	
                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. The Floating Rate Payer Payment Date
                  shall be
                  one (1) Business Day preceding each Floating Rate Payer Period
                  End
                  Date.

              
	 	 
	
                Floating
                  Rate Option:

              	
                USD-LIBOR-BBA

              
	 	 
	
                Floating
                  Amount:

              	
                To
                  be determined in accordance with the following formula:

              
	 	 
	 	
                100*Floating
                  Rate Option*Notional Amount*Floating Rate Day Count
                  Fraction

              
	 	 
	
                Designated
                  Maturity:

              	
                One
                  month

              
	 	 
	
                Floating
                  Rate Day 

              	 
	
                Count
                  Fraction:

              	
                Actual/360

              
	 	 
	
                Reset
                  Dates:

              	
                The
                  first day of each Calculation Period.

              
	 	 
	
                Compounding:

              	
                Inapplicable

              

      

      

      
        	
                Business
                  Days:

              	
                 
                  New York and Illinois

              
	 	 
	
                Business
                  Day Convention:

              	
                 
                  Following

              
	 	 
	
                Calculation
                  Agent:

              	
                 
                  Wachovia

              

      

      

      
        	
                3.

              	
                Provisions
                  Deemed Incorporated in a Schedule to the Master
                  Agreement:

              

      

      

      Part
        1. Termination
        Provisions.
        For
        purposes of the Master Agreement:

      

      (a) “Specified
        Entity” is not applicable to Wachovia or Counterparty for any purpose.

      

      (b) “Breach
        of Agreement” provision of Section 5(a)(ii) will not apply to Wachovia or
        Counterparty.

      

      (c) “Credit
        Support Default” provisions of Section 5(a)(iii) will apply to Wachovia (if
        Wachovia enters into or delivers a Credit Support Document and posts collateral
        or provides a guarantee or other contingent agreement pursuant to Part 5(h)
        below), and will not apply to Counterparty.

      

      (d) “Misrepresentation”
        provisions of Section 5(a)(iv) will not apply to Wachovia or
        Counterparty.

      

      (e) “Specified
        Transaction” is not applicable to Wachovia or Counterparty for any purpose, and,
        accordingly, Section 5(a)(v) shall not apply to Wachovia or
        Counterparty.

      

      (f) The
        “Cross Default” provisions of Section 5(a)(vi) will not apply to Wachovia or to
        Counterparty. 

      

      (g) The
        “Bankruptcy” provision of Section 5(a)(vii)(2) will not apply to
        Counterparty.

       

      (h) The
        “Credit Event Upon Merger” provisions of Section 5(b)(iv) will not apply to
        Wachovia or Counterparty.

      

      (i) The
        “Automatic Early Termination” provision of Section 6(a) will not apply to
        Wachovia or to Counterparty.

      

      (j) Payments
        on Early Termination. For the purpose of Section 6(e) of this
        Agreement:

      

      (i) Market
        Quotation will apply.

      

      (ii) the
        Second Method will apply. 

      

      (k) “Termination
        Currency” means United States Dollars. 

      

      
        	
                (l)

              	
                Gross
                  Up. The provisions of Section 2(d)(i)(4) and 2(d)(ii) of the printed
                  ISDA
                  Form Master Agreement shall not apply to Counterparty and Counterparty
                  shall not be required to pay any additional amounts referred to
                  therein.
                  

              

      

       

      Part
        2. Tax
        Representations. 

      

      
        	 	
                (a)
                  Payer Representations. For the purpose of Section 3(e) of this
                  Agreement,
                  each of Wachovia and the Counterparty makes the following
                  representation:

              

      

       

      
        	 	
                It
                  is not required by any applicable law, as modified by the practice
                  of any
                  relevant governmental revenue authority, of any Relevant Jurisdiction
                  to
                  make any deduction or withholding for or on account of any Tax
                  from any
                  payment (other than interest under Section 2(e), 6(d)(ii) or 6(e)
                  of this
                  Agreement) to be made by it to the other party under this Agreement.
                  In
                  making this representation, it may rely on:

              

      

       

      (i) the
        accuracy of any representations made by the other party pursuant to Section
        3(f)
        of this Agreement;

      

      (ii) the
        satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of
        this
        Agreement and the accuracy and effectiveness of any document provided by
        the
        other party pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement;
        and

      

      
        	 	 	
                 
                  (iii) the satisfaction of the agreement of the other party contained
                  in
                  Section 4(d) of this Agreement, provided that it shall not be a
                  breach of
                  this representation where reliance is placed on clause (ii) and
                  the other
                  party does not deliver a form or document under Section 4(a)(iii)
                  by
                  reason of material prejudice to its legal or commercial position.
                  

              

      

      

      (b)
        Payee
        Representations. For the purpose of Section 3(f) of this Agreement:

       

      (i) Party
        A
        makes the following representation(s):

      

      (A) It
        is a
        national banking association organized or formed under the laws of the United
        States and is a United States resident for United States federal income tax
        purposes.

      

      (B) Party
        A
        makes no other Payee Tax Representations.

      

      
        	 	
                (ii)

              	
                Party
                  B makes the following
                  representation(s):

              

      

      

      (A) Party
        B
        is a common law trust formed under the laws of the State of New
        York.

      

      Part
        3.
Agreement
        to Deliver Documents. For
        the
        purpose of Section 4(a):

      

      (1) Tax
        forms, documents, or certificates to be delivered are:

      

      
        	
                Party
                  required to deliver document

              	
                Form/Document/

                Certificate

              	
                Date
                  by which to

                be
                  delivered

              
	
                Wachovia

              	
                A
                  correct, complete and duly executed U.S. Internal Revenue Service
                  Form W-9
                  (or successor thereto), together with appropriate attachments,
                  that
                  eliminates U.S. federal withholding and backup withholding tax
                  on payments
                  to Wachovia under this Agreement.

              	
                (A)
                  before the first Payment Date under this Agreement, (B) promptly
                  upon
                  reasonable demand by the other party and (C) promptly upon learning
                  that
                  any such form previously provided by the party has become obsolete
                  or
                  incorrect.

              
	 	 	 
	
                Counterparty

              	
                A
                  correct, complete and duly executed U.S. Internal Revenue Service
                  Form W-9
                  (or successor thereto), together with appropriate attachments,
                  that
                  eliminates U.S. federal withholding and backup withholding tax
                  on payments
                  to Counterparty under this Agreement.

              	
                (A)
                  before the first Payment Date under this Agreement, (B) promptly
                  upon
                  reasonable demand by the other party and (C) promptly upon learning
                  that
                  any such form previously provided by the party has become obsolete
                  or
                  incorrect.

              

      

      

      (2) Other
        documents to be delivered are:

      

      
        	
                Party
                  required to deliver document

              	
                Form/Document/

                Certificate

              	 	
                Date
                  by which to

                be
                  delivered

              	
                Covered
                  by Section 3(d) Representation

              
	
                Wachovia
                  and

                the
                  Counterparty

              	
                Any
                  documents required by the receiving party to evidence the authority
                  of the
                  delivering party or its Credit Support Provider, if any, for it
                  to execute
                  and deliver this Agreement, any Confirmation , and any Credit Support
                  Documents to which it is a party, and to evidence the authority
                  of the
                  delivering party or its Credit Support Provider to perform its
                  obligations
                  under this Agreement, such Confirmation and/or Credit Support Document,
                  as
                  the case may be

              	 	
                Upon
                  the execution and delivery of this Agreement and such
                  Confirmation

              	
                Yes

              
	 	 	 	 	 
	
                Wachovia
                  and

                the
                  Counterparty

              	
                A
                  certificate of an authorized officer of the party, as to the incumbency
                  and authority of the respective officers of the party signing this
                  Agreement, any relevant Credit Support Document, or any Confirmation,
                  as
                  the case may be

              	 	
                Upon
                  the execution and delivery of this Agreement and such
                  Confirmation

              	
                Yes

              
	 	 	 	 	 
	
                Wachovia

              	
                Annual
                  Report of Wachovia Corporation containing consolidated financial
                  statements certified by independent certified public accountants
                  and
                  prepared in accordance with generally accepted accounting principles
                  in
                  the country in which such party is organized

              	 	
                To
                  be made available on
                  http://wachovia.com/inside/page/0,,133_202_270,00.html as soon
                  as
                  available and in any event within 90 days after the end of each
                  fiscal
                  year of Party A

              	
                Yes

              
	 	 	 	 	 
	
                Wachovia

              	
                Quarterly
                  Financial Statements of Wachovia Corporation containing unaudited,
                  consolidated financial statements of such party’s fiscal quarter prepared
                  in accordance with generally accepted accounting principles in
                  the country
                  in which such party is organized

              	 	
                To
                  be made available on
                  http://wachovia.com/inside/page/0,,133_202_270,00.html as soon
                  as
                  available and in any event within 30 days after the end of each
                  fiscal
                  quarter of Party A

              	
                Yes

              
	 	 	 	 	 
	
                Wachovia
                  and the Counterparty 

              	
                An
                  opinion of counsel with respect to the due authorization, execution
                  and
                  enforceability of this Agreement, acceptable to the other party
                  hereto.

              	 	
                Upon
                  the execution and delivery of this Agreement

              	
                Yes

              

      

      

      

      Part
        4.
 Miscellaneous.
        

      

      
        	
                (a)

              	
                Address
                  for Notices: For the purposes of Section 12(a) of this
                  Agreement:

              

      

      

      Address
        for notices or communications to Wachovia:

      

      Wachovia
        Bank, National Association

      301
        South
        College, DC-8

      Charlotte,
        NC 28202-0600

      Attention:
        Bruce M. Young

      Senior
        Vice President, Risk Management

      Fax:
        (704) 383-0575

      Phone:
        (704) 383-8778

      

      (For
        all
        purposes)

      

      Address
        for notices or communications to the Counterparty:

      

      Address:
        LaSalle Bank National Association

      135
        South
        LaSalle Street, Suite 1625

      Chicago,
        IL 60603

      Attention:
        Global Securities and Trust Services Group

      SACO
        I
        Trust 2006-9

      Facsimile:
        312-904-1368

      Phone:
        312-992-2745

      

      (For
        all
        purposes)

      

      (b) Process
        Agent. For the purpose of Section 13(c):

      

      Wachovia
        appoints as its 

      Process
        Agent:          Not
        Applicable

      

      Counterparty
        appoints as its 

      Process
        Agent:           
Not
        Applicable

      

      (c) Offices.
        The provisions of Section 10(a) will not apply to this Agreement; neither
        Wachovia nor the Counterparty has any Offices other than as set forth in
        the
        Notices Section and Wachovia agrees that, for purposes of Section 6(b) of
        this
        Agreement, it shall not in future have any Office other than one in the United
        States.

      

      
        	
                (d)

              	
                Multibranch
                  Party. For the purpose of Section 10(c) of this
                  Agreement:

              

      

      

      Wachovia
        is not a Multibranch Party.

      

      
        	 	
                Counterparty
                  is not a Multibranch Party.

              

      

      

      (e) Credit
        Support Document. 

       

      

      
        	
                Wachovia:
                  

              	
                None
                  or, in that event that Wachovia posts collateral under a Credit
                  Support
                  Annex or provides a guarantee or other contingent agreement pursuant
                  to
                  Part 5(h) below, such Credit Support Annex or guarantee or other
                  contingent agreement.

              
	 	 
	
                Counterparty:
                  

              	
                Not
                  Applicable

              

      

      

      
        	
                (f)

              	
                Credit
                  Support Provider.

              

      

      

      
        	
                Wachovia:

              	
                None
                  or, in that event that Wachovia provides a guarantee or other contingent
                  agreement pursuant to Part 5(h) below, such guarantor or other
                  provider of
                  credit support.

              
	 	 
	
                Counterparty:
                  

              	
                Not
                  Applicable

              

      

      

      (g) Governing
        Law. The parties to this Agreement hereby agree that the law of the State
        of New
        York shall govern their rights and duties in whole, without regard to the
        conflict of law provisions thereof other than New York General Obligations
        Law
        Sections 5-1401 and 5-1402. 

      

      (h) Netting
        of Payments. The parties agree that subparagraph (ii) of Section 2(c) of
        the
        ISDA Form Master Agreement will apply to any Transaction.

      

      (i) “Affiliate”.
        Counterparty shall be deemed not to have any Affiliates for purposes of this
        Agreement.

      

      

      Part
        5.
Others
        Provisions.

      

      (a) Severability. If
        any
        term, provision, covenant, or condition of this Agreement, or the application
        thereof to any party or circumstance, shall be held to be invalid or
        unenforceable (in whole or in part) for any reason, the remaining terms,
        provisions, covenants, and conditions hereof shall continue in full force
        and
        effect as if this Agreement had been executed with the invalid or unenforceable
        portion eliminated, so long as this Agreement as so modified continues to
        express, without material change, the original intentions of the parties
        as to
        the subject matter of this Agreement and the deletion of such portion of
        this
        Agreement will not substantially impair the respective benefits or expectations
        of the parties; provided, however, that this severability provision shall
        not be
        applicable if any provision of Section 2, 5, 6, or 13 (or any definition
        or
        provision in Section 14 to the extent it relates to, or is used in or in
        connection with any such Section) shall be so held to be invalid or
        unenforceable. 

      

      The
        parties shall endeavor to engage in good faith negotiations to replace any
        invalid or unenforceable term, provision, covenant or condition with a valid
        or
        enforceable term, provision, covenant or condition, the economic effect of
        which
        comes as close as possible to that of the invalid or unenforceable term,
        provision, covenant or condition. 

      

      (b) Consent
        to Recording. Each party hereto consents to the monitoring or recording,
        at any
        time and from time to time, by the other party of any and all communications
        between officers or employees of the parties, waives any further notice of
        such
        monitoring or recording, and agrees to notify its officers and employees
        of such
        monitoring or recording. 

      

      (c) Waiver
        of
        Jury Trial. Each
        party waives any right it may have to a trial by jury in respect of any
        Proceedings relating to this Agreement or any Credit Support Document.

      

      (d) Set-Off.
        Notwithstanding any provision of this Agreement or any other existing or
        future
        agreement, each party irrevocably waives any and all rights it may have to
        set
        off, net, recoup or otherwise withhold or suspend or condition payment or
        performance of any obligation between it and the other party hereunder against
        any obligation between it and the other party under any other agreements;
        provided that nothing herein shall be construed to waive or otherwise limit
        the
        netting provisions contained in Sections 2(c)(ii) or Section 6(e) of this
        Agreement or the setoff rights contained in the Credit Support Annex. The
        provisions for Set-off set forth in Section 6(e) of the ISDA Form Master
        Agreement shall not apply for purposes of this Transaction. 

       

      (e) Additional
        Definitional Provisions. 

       

      As
        used
        in this Agreement, the following terms shall have the meanings set forth
        below,
        unless the context clearly requires otherwise: 

       

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

       

      “S&P”
        means Standard & Poor's Ratings Services, or any successor.

       

      (f) Supplemental
        Interest Trust Trustee Liability Limitations. It is expressly understood
        and
        agreed by the parties hereto that (a) this Agreement is executed by LaSalle
        Bank
        National Association (“LaSalle”) not
        in
        its individual capacity, but solely as Supplemental Interest Trust Trustee
        under
        the Pooling and Servicing Agreement in the exercise of the powers and authority
        conferred and invested in it thereunder; (b) LaSalle has been directed pursuant
        to the Pooling and Servicing Agreement to enter into this Agreement and to
        perform its obligations hereunder; (c) each of the representations, undertakings
        and agreements herein made on behalf of the Trust is made and intended not
        as
        personal representations of the Trustee but is made and intended for the
        purpose
        of binding only the Trust; and (d) under no circumstances shall LaSalle
        in its individual capacity be personally liable for any payments hereunder
        or
        for the breach or failure of any obligation, representation, warranty or
        covenant made or undertaken under this Agreement.

      

      (g)
        Additional Termination Events. Additional Termination Events will apply:
        

      

      (i)
        If a
        Rating Agency Downgrade has occurred and Wachovia has not complied with Part
        5(h) below, then an Additional Termination Event shall have occurred with
        respect to Wachovia and Wachovia shall be the sole Affected Party with respect
        to such Additional Termination Event. 

      

      (ii)
        If,
        at any time, a mandatory redemption, auction call redemption, optional
        redemption, tax redemption, clean-up call, termination upon liquidation or
        repurchase in full of all mortgage loans or other prepayment in full or
        repayment in full of all Certificates outstanding occurs under the Pooling
        and
        Servicing Agreement (or any notice is given to that effect and such notice
        is
        not capable of being rescinded), then an Additional Termination Event shall
        have
        occurred with respect to Counterparty and Counterparty shall be the sole
        Affected Party with respect to such Additional Termination Event.; provided,
        however, that notwithstanding Section 6(b)(iv) of the ISDA Form Master
        Agreement, both Wachovia and Counterparty shall have the right to designate
        an
        Early Termination Date in respect of this Additional Termination Event;
        provided, further, that the Early Termination Date in respect of this Additional
        Termination Event shall not be prior to the final distribution date for the
        Certificates.

      

      (iii)
        If,
        upon the occurrence of a Swap Disclosure Event (as defined in Part 5(n) below)
        Wachovia has not complied with any of the provisions set forth in clause
        (iii)
        of Part 5(n) below, then an Additional Termination Event shall have occurred
        with respect to Wachovia and Wachovia shall be the sole Affected Party with
        respect to such Additional Termination Event.

      

      (iv)
        If
        the Trustee is unable to pay with respect to the Class A Certificates either
        (i)
        any related Current Interest or (ii) any amount in respect of principal required
        to be paid pursuant to the terms of the Pooling and Servicing Agreement,
        then an
        Additional Termination Event shall have occurred with respect to Counterparty
        and Counterparty shall be the sole Affected Party with respect to such
        Additional Termination Event.

       

      (v)
        If
        the Pooling and Servicing Agreement is amended in a manner which could have
        a
        material adverse effect on Wachovia without the prior written consent of
        Wachovia, where such consent is required under the Pooling and Servicing
        Agreement (such consent not to be unreasonably withheld), then an Additional
        Termination Event shall have occurred with respect to Counterparty and
        Counterparty shall be the sole Affected Party with respect to such Additional
        Termination Event.

      

      (h)
        Rating Agency Downgrade. In the event that (i) Wachovia’s short-term unsecured
        and unsubordinated debt rating is reduced below “A-1” by S&P, or if such
        short-term debt rating is below “A-1” or Wachovia does not have a short-term
        debt rating from S&P, Wachovia’s long-term unsecured and unsubordinated debt
        rating is reduced below “A+” by S&P, or (ii) Wachovia’s long-term unsecured
        and unsubordinated debt rating is reduced below “A1” by Moody’s or its
        short-term unsecured and unsubordinated debt rating is reduced below “P1” by
        Moody’s, or, in the event that Wachovia does not have a short-term rating from
        Moody’s, if Wachovia’s long-term unsecured and unsubordinated debt rating is
        reduced below “Aa3” by Moody’s (and together with S&P, the “Swap Rating
        Agencies” and such rating thresholds, “Approved Rating Thresholds” and any such
        reduction below the Approved Rating Thresholds, a “Collateral Rating Downgrade
        Event”), then within 30 days after such Collateral Rating Downgrade Event by one
        or more Swap Rating Agencies (unless, within 30 days after such Collateral
        Rating Downgrade Event, each such Swap Rating Agency, as applicable, has
        reconfirmed the rating of the SACO I Trust 2006-9, Mortgage-Backed Certificates,
        Series 2006-9 (the
        “Certificates”) and any notes backed by the Certificates (the “Notes”), which
        was in effect immediately prior to such Collateral Rating Downgrade Event),
        Wachovia shall, at its own expense, subject to the Rating Agency Condition,
        either (i) seek another entity to replace Wachovia as party to this Agreement
        that meets or exceeds the Approved Rating Thresholds on terms substantially
        similar to this Agreement, (ii) obtain a guaranty of, or a contingent agreement
        of another person with the Approved Rating Thresholds, to honor, Wachovia’s
        obligations under this Agreement, or (iii) post collateral which will be
        sufficient to restore the ratings of the Certificates and any Notes in effect
        immediately prior to such Collateral Rating Downgrade Event (assuming for
        this
        purpose that no rating downgrade or withdrawal of the Certificates or Notes
        unrelated to the Collateral Rating Downgrade Event has occurred since the
        Collateral Rating Downgrade Event). In the event that Wachovia’s long-term
        unsecured and unsubordinated debt rating is withdrawn or reduced below “BBB-” by
        S&P (a “Required Rating Downgrade Event”), then within 10 Business Days
        after such rating withdrawal or downgrade, Wachovia shall, subject to the
        Rating
        Agency Condition and at its own expense, either (i) secure another entity
        to
        replace Wachovia as party to this Agreement that meets or exceeds the Approved
        Rating Thresholds on terms substantially similar to this Agreement or (ii)
        obtain a guaranty of, or a contingent agreement of another person with the
        Approved Rating Thresholds, to honor, Wachovia’s obligations under this
        Agreement. For purposes of this provision, “Rating Agency Condition” means, with
        respect to any particular proposed act or omission to act hereunder that
        the
        party acting or failing to act must consult with each of the Swap Rating
        Agencies then providing a rating of the Certificates and any Notes and receive
        from each of the Swap Rating Agencies a prior written confirmation that the
        proposed action or inaction would not cause a downgrade or withdrawal of
        the
        then-current rating of any Certificates or Notes. For purposes of this
        Agreement, the occurrence of either a Collateral Rating Downgrade Event or
        a
        Required Rating Downgrade Event may be referred to as a rating agency downgrade
        (a “Rating Agency Downgrade”).

      

      (i)
        Payment Instructions. Wachovia hereby agrees that, unless notified in writing
        by
        the Supplemental Interest Trust Trustee of other payment instructions, any
        and
        all amounts payable by Wachovia to the Counterparty under this Agreement
        shall
        be paid to the Swap Administrator at the account specified in paragraph 4
        below.
        Wachovia shall be entitled to rely on any written notice or communication
        from
        the Supplemental Interest Trust Trustee to that effect which is delivered
        to
        Wachovia in accordance with Section 12 hereof. 

      

      (j)
        Section 3 of the ISDA Form Master Agreement is hereby amended by adding at
        the
        end thereof the following subsection (g): 

      

      “(g) Relationship
        Between Parties.
        

      

      Each
        party represents to the other party on each date when it enters into a
        Transaction that:--

      

        
        (1) Nonreliance.
        (i) It
        is not relying on any statement or representation of the other party regarding
        the Transaction (whether written or oral), other than the representations
        expressly made in this Agreement or the Confirmation in respect of that
        Transaction and (ii) it has consulted with its own legal, regulatory, tax,
        business, investment, financial and accounting advisors to the extent it
        has
        deemed necessary, and it has made its own investment, hedging and trading
        decisions based upon its own judgment and upon any advice from such advisors
        as
        it has deemed necessary and not upon any view expressed by the other
        party.

       

      (2)
        Evaluation
        and Understanding.
        

      

      (i)
        It
        has the capacity to evaluate (internally or through independent professional
        advice) the Transaction and has made its own decision subject to Section
        6(n) of
        this Agreement to enter into the Transaction; and

      

      (ii)
        It
        understands the terms, conditions and risks of the Transaction and is willing
        and able to accept those terms and conditions and to assume those risks,
        financially and otherwise. 

      

      (3)
        Purpose.
        It is
        entering into the Transaction for the purposes of managing its borrowings
        or
        investments, hedging its underlying assets or liabilities or in connection
        with
        a line of business. 

      

      (4)
        Status
        of Parties.
        The
        other party is not acting as an agent, fiduciary or advisor for it in respect
        of
        the Transaction.

      

      (5)
        Eligible
        Contract Participant.
        It is
        an “eligible swap participant” as such term is defined in Section 35.1(b)(2) of
        the regulations (17 C.F.R. 35) promulgated under, and an “eligible contract
        participant” as defined in Section 1(a)(12) of the Commodity Exchange Act, as
        amended.”

      

      (k)
        Non-Recourse. Notwithstanding any provision herein or in the ISDA Form Master
        Agreement to the contrary, the obligations of Counterparty hereunder are
        limited
        recourse obligations of Counterparty, payable solely from the Supplemental
        Interest Trust, including the Derivative Account and the proceeds thereof,
        in
        accordance with the terms of the Pooling and Servicing Agreement. In the
        event
        that the Supplemental Interest Trust, including the Derivative Account and
        the
        proceeds thereof, should be insufficient to satisfy all claims outstanding
        and
        following the realization of the Derivative Account and the proceeds thereof,
        any claims against or obligations of Counterparty under the ISDA Form Master
        Agreement or any other confirmation thereunder still outstanding shall be
        extinguished and thereafter not revive. The Supplemental Interest Trust Trustee
        shall not have liability for any failure or delay in making a payment hereunder
        to Wachovia due to any failure or delay in receiving amounts in the Derivative
        Account from the Trust created pursuant to the Pooling and Servicing Agreement.
        

      

      (l) Transfer,
        Amendment and Assignment. No transfer, amendment, waiver, supplement, assignment
        or other modification of this Agreement shall be permitted by either party
        unless each of Moody’s and S&P has
        been
        provided prior notice of the same and confirms in writing (including by
        facsimile transmission) that it will not downgrade, withdraw or otherwise
        modify
        its then-current ratings of any Certificates or Notes.

       

      (m)
        Proceedings. Wachovia shall not institute against, or cause any other person
        to
        institute against, or join any other person in instituting against Counterparty,
        the Supplemental Interest Trust, or the trust formed pursuant to the Pooling
        and
        Servicing Agreement, any bankruptcy, reorganization, arrangement, insolvency
        or
        liquidation proceedings or other proceedings under any federal or state
        bankruptcy or similar law for a period of one year (or, if longer, the
        applicable preference period) and one day following payment in full of the
        Certificates and any Notes; provided, that nothing herein shall preclude,
        or be
        deemed to estop, Wachovia from taking any action in any case or proceeding
        voluntarily filed or commenced by or on behalf of Counterparty, the Supplemental
        Interest Trust, or the trust formed pursuant to the Pooling and Servicing
        Agreement by a party other than Wachovia or in any involuntary case or
        proceeding after it has commenced. This provision will survive the termination
        of this Agreement. 

      

      (n)
         Compliance
        with Regulation AB. 

      

      (i)
        Wachovia agrees and acknowledges that Bear
        Stearns Asset Backed Securities I LLC

      (the
        “Depositor”) may be required under Regulation AB, as defined in the Pooling and
        Servicing Agreement, to disclose certain financial information regarding
        Wachovia or its group of affiliated entities, if applicable, depending on
        the
        aggregate “significance percentage” of this Agreement and any other derivative
        contracts between Wachovia or its group of affiliated entities, if applicable,
        and Counterparty, as calculated from time to time in accordance with Item
        1115
        of Regulation AB. 

      

      (ii)
        It
        shall be a swap disclosure event (“Swap Disclosure Event”) if, on any Business
        Day after the date hereof for so long as the Issuing Entity is required to
        file
        periodic reports under the Exchange Act with respect to the Certificates,
        Counterparty or the Depositor requests from Wachovia the applicable financial
        information described in Item 1115(b) of Regulation AB (such request to be
        based
        on a reasonable determination by the Depositor, based on "significance
        estimates" made in substantially the same manner as that used in the Sponsor's
        internal risk management process in respect of similar instruments and furnished
        by the Sponsor to the Depositor, or if the Sponsor does not furnish such
        significance estimates to the Depositor, based on a determination of such
        significance estimates by the Depositor in a manner that it deems reasonable)
        (the “Swap Financial Disclosure”).

      

      (iii)
        Upon the occurrence of a Swap Disclosure Event, Wachovia, at its own expense,
        within ten (10) calendar days, shall either (1)(a) either (i) provide to
        the
        Depositor the current Swap Financial Disclosure in an EDGAR-compatible format
        (for example, such information may be provided in Microsoft Word® or Microsoft
        Excel® format but not in .pdf format) or (ii) provide written consent to the
        Depositor to incorporation by reference of such current Swap Financial
        Disclosure that are filed with the Securities and Exchange Commission in
        the
        Exchange Act Reports of the Depositor, (b) if applicable, cause its outside
        accounting firm to provide its consent to filing or incorporation by reference
        in the Exchange Act Reports of the Depositor of such accounting firm’s report
        relating to their audits of such current Swap Financial Disclosure, and (c)
        provide to the Depositor any updated Swap Financial Disclosure with respect
        to
        Wachovia or any entity that consolidates Wachovia within five days of the
        release of any such updated Swap Financial Disclosure; (2) subject to the
        Rating
        Agency Condition, secure another entity to replace Wachovia as party to this
        Agreement on terms substantially similar to this Agreement, which entity
        (or a
        guarantor therefor) meets or exceeds the Approved Rating Thresholds and which
        entity complies with the requirements of Item 1115 of Regulation AB and clause
        (1) above, (3) subject to the Rating Agency Condition, obtain a guaranty
        of
        Wachovia’s obligations under this Agreement from an affiliate of Wachovia that
        complies with the financial information disclosure requirements of Item 1115
        of
        Regulation AB, and cause such affiliate to provide Swap Financial Disclosure
        and
        any future Swap Financial Disclosure and other information pursuant to clause
        (1), such that disclosure provided in respect of such affiliate will satisfy
        any
        disclosure requirements applicable to the Swap Provider, or (4) transfer
        Eligible Collateral to Counterparty's Custodian in an amount (taking into
        account any amount posted pursuant to paragraph (o) of this Agreement, if
        any)
        which is sufficient, as reasonably determined in good faith by the Depositor,
        to
        reduce the aggregate significance percentage below 10% (or, so long as Wachovia
        is able to provide the Swap Financial Disclosure required pursuant to Item
        1115(b)(1) of Regulation AB, below 20%, in the event Wachovia is requested
        to
        provide the Swap Financial Disclosure required pursuant to Item 1115(b)(2)
        of
        Regulation AB). 

      

      (iv)
        Third Party Beneficiary. Depositor shall be an express third party beneficiary
        of this Agreement as if a party hereto to the extent of Depositor’s rights
        explicitly specified herein.

      

      (o)
        The
        ISDA Form Master Agreement is hereby amended as follows:

      

      The
        word
“third” shall be replaced by the word “first” in the third line of Section
        5(a)(i) of the ISDA Form Master Agreement.

      

      (p)
        FDIC
        Requirements. Party A represents that it is a bank subject to the requirements
        of 12 U.S.C. § 1823(e), its execution, delivery and performance of this
        Agreement (including the Credit Support Annex and each Confirmation) have
        been
        approved by its board of directors or its loan committee, such approval is
        reflected in the minutes of said board of directors or loan committee, and
        this
        Agreement (including the Credit Support Annex and each Confirmation) will
        be
        maintained as one of its official records continuously from the time of its
        execution (or in the case of any Confirmation, continuously until such time
        as
        the relevant Transaction matures and the obligations therefor are satisfied
        in
        full).

      

      (q) Permitted
        Transfer upon Tax Events. Notwithstanding Section 7 of this Agreement, at
        any
        time at which a Tax Event or Tax Event Upon Merger exists with respect to
        Wachovia, Wachovia may, with prior written consent of Counterparty (such
        consent
        not to be unreasonably withheld) transfer, in whole but not in part, all
        of its
        rights and obligations under this Agreement in a transfer which meets all
        of the
        following requirements: 

      

      
        	 	
                (A)
                  The transferee is a recognized dealer in interest rate swaps organized
                  under the laws of the United States of America or a jurisdiction
                  located
                  in the United States of America (or another jurisdiction reasonably
                  acceptable to Counterparty that, at the time of the transfer, maintains
                  (or its proposed guarantor maintains) the Approved Rating Thresholds
                  from
                  each Rating Agency; 

              

      

      

      (B)
        The
        Rating Agency Condition is satisfied with respect to such transfer;

      

      (C)
        Neither an Event of Default with respect to the transferee nor a Termination
        Event would exist immediately after that transfer;

      

      (D)
        The
        transferee executes and delivers a written agreement reasonably satisfactory
        to
        Counterparty in which the transferee, among other things, legally and
        effectively accepts all the rights and assumes all the obligations of Wachovia
        under this Agreement; and

      

      (E)
        As of
        the date of such transfer neither the Transferee nor Counterparty will be
        required to withhold or deduct on account of any Tax from any payments under
        this Agreement in excess of what would have been required to be withheld
        or
        deducted in the absence of such transfer. 

      

      4. Account
        Details and

      Settlement
        Information:  Payments
        to Wachovia:

      

      Wachovia
        Bank, N.A.

      CIB
        Group, ABA 05300219

      Ref:
        Derivative Desk (Trade No: 1555475 )

      CIB
        Group, ABA 053000219

      Account
        #: 04659360006116

       

      Payments
        to Counterparty:

      

      Swap
        Account

      LaSalle
        Bank

      ABA
        #
        071000505

      LaSalle
        CHGO/CTR/BNF:/LaSalle Trust

      Acct
        #
        724032.3

      Attn:
        Carol A. Tilton 312-992-2745

      

      This
        Agreement may be executed in several counterparts, each of which shall be
        deemed
        an original but all of which together shall constitute one and the same
        instrument.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      We
        are
        very pleased to have executed this Transaction with you and we look forward
        to
        completing other transactions with you in the near future.

      

      Very
        truly yours,

      

      Wachovia
        Bank, N.A.

      

      

      
        	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

      Counterparty,
        acting through its duly authorized signatory, hereby agrees to, accepts and
        confirms the terms of the foregoing as of the Trade Date.

      

      LaSalle
        Bank National Association, not individually, but solely as Supplemental Interest
        Trust

      Trustee
        on behalf of the Supplemental Interest Trust with respect to SACO I Trust
        2006-9

      Mortgage-Backed
        Certificates, Series 2006-9 

      

      

      
        	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      SCHEDULE
        I

      (all
        such
        dates subject to No Adjustment with respect to Fixed Payments and adjustment
        in
        accordance with the Following Business Day Convention with respect to Floating
        Payments)

      

      
        	
                From
                  and including

              	
                To
                  but excluding

              	
                Notional
                  Amount (USD)

              
	
                Effective
                  Date

              	
                9/25/2006

              	
                4,622,450.09

              
	
                9/25/2006

              	
                10/25/2006

              	
                4,458,090.00

              
	
                10/25/2006

              	
                11/25/2006

              	
                4,299,560.00

              
	
                11/25/2006

              	
                12/25/2006

              	
                4,146,660.00

              
	
                12/25/2006

              	
                1/25/2007

              	
                3,999,180.00

              
	
                1/25/2007

              	
                2/25/2007

              	
                3,856,930.00

              
	
                2/25/2007

              	
                3/25/2007

              	
                3,719,740.00

              
	
                3/25/2007

              	
                4/25/2007

              	
                3,587,410.00

              
	
                4/25/2007

              	
                5/25/2007

              	
                3,459,780.00

              
	
                5/25/2007

              	
                6/25/2007

              	
                3,336,680.00

              
	
                6/25/2007

              	
                7/25/2007

              	
                3,217,950.00

              
	
                7/25/2007

              	
                8/25/2007

              	
                3,103,430.00

              
	
                8/25/2007

              	
                9/25/2007

              	
                2,992,980.00

              
	
                9/25/2007

              	
                10/25/2007

              	
                2,886,450.00

              
	
                10/25/2007

              	
                11/25/2007

              	
                2,783,710.00

              
	
                11/25/2007

              	
                12/25/2007

              	
                2,684,610.00

              
	
                12/25/2007

              	
                1/25/2008

              	
                2,589,030.00

              
	
                1/25/2008

              	
                2/25/2008

              	
                2,496,850.00

              
	
                2/25/2008

              	
                3/25/2008

              	
                2,407,940.00

              
	
                3/25/2008

              	
                4/25/2008

              	
                2,322,190.00

              
	
                4/25/2008

              	
                5/25/2008

              	
                2,239,480.00

              
	
                5/25/2008

              	
                6/25/2008

              	
                2,159,720.00

              
	
                6/25/2008

              	
                7/25/2008

              	
                2,082,780.00

              
	
                7/25/2008

              	
                8/25/2008

              	
                2,008,580.00

              
	
                8/25/2008

              	
                9/25/2008

              	
                1,937,020.00

              
	
                9/25/2008

              	
                10/25/2008

              	
                1,868,000.00

              
	
                10/25/2008

              	
                11/25/2008

              	
                1,801,430.00

              
	
                11/25/2008

              	
                12/25/2008

              	
                1,737,230.00

              
	
                12/25/2008

              	
                1/25/2009

              	
                1,675,310.00

              
	
                1/25/2009

              	
                2/25/2009

              	
                1,615,590.00

              
	
                2/25/2009

              	
                3/25/2009

              	
                1,557,990.00

              
	
                3/25/2009

              	
                4/25/2009

              	
                1,502,440.00

              
	
                4/25/2009

              	
                5/25/2009

              	
                1,448,870.00

              
	
                5/25/2009

              	
                6/25/2009

              	
                1,397,200.00

              
	
                6/25/2009

              	
                7/25/2009

              	
                1,347,370.00

              
	
                7/25/2009

              	
                8/25/2009

              	
                1,299,310.00

              
	
                8/25/2009

              	
                9/25/2009

              	
                1,252,960.00

              
	
                9/25/2009

              	
                10/25/2009

              	
                1,208,250.00

              
	
                10/25/2009

              	
                11/25/2009

              	
                1,165,140.00

              
	
                11/25/2009

              	
                12/25/2009

              	
                1,123,560.00

              
	
                12/25/2009

              	
                1/25/2010

              	
                1,083,460.00

              
	
                1/25/2010

              	
                2/25/2010

              	
                1,044,790.00

              
	
                2/25/2010

              	
                3/25/2010

              	
                1,007,490.00

              
	
                3/25/2010

              	
                4/25/2010

              	
                971,530.00

              
	
                4/25/2010

              	
                Termination
                  Date

              	
                936,840.00

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        O

       

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

       

      Definitions

      Primary
        Servicer - transaction party having borrower contact

      Master
        Servicer - aggregator of pool assets

      Securities
        Administrator - waterfall calculator

      Back-up
        Servicer - named in the transaction (in the event a Back up Servicer becomes
        the
        Primary Servicer, follow Primary Servicer obligations)

      Custodian
        - safe keeper of pool assets

      Trustee
        -
        fiduciary of the transaction

      

      Note:
        The
        definitions above describe the essential function that the party performs,
        rather than the party’s title. So, for example, in a particular transaction, the
        trustee may perform the “paying agent” and “securities administrator” functions,
        while in another transaction, the securities administrator may perform these
        functions.

      

      Where
        there are multiple checks for criteria the attesting party will identify
        in
        their management assertion that they are attesting only to the portion of
        the
        distribution chain they are responsible for in the related transaction
        agreements.

      

      Key: X
        - obligation

       

      

        
          	
                  Reg
                    AB Reference

                	
                  Servicing
                    Criteria

                	
                  Primary
                    Servicer

                	
                  Master
                    Servicer

                	
                  Securities
                    Admin

                	
                  Custodian

                	
                  Trustee

                  (nominal)

                
	 	
                  General
                    Servicing Considerations

                	 	 	 	 	 
	
                  1122(d)(1)(i)

                	
                  Policies
                    and procedures are instituted to monitor any performance or other
                    triggers
                    and events of default in accordance with the transaction
                    agreements.

                	
                  X

                	
                  X

                	
                  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

                	
                  X

                	 	 	 
	
                  1122(d)(1)(iii)

                	
                  Any
                    requirements in the transaction agreements to maintain a back-up
                    servicer
                    for the Pool Assets 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

                	
                  X

                	 	 	 
	 	
                  Cash
                    Collection and Administration

                	 	 	 	 	 
	
                  1122(d)(2)(i)

                	
                  Payments
                    on pool assets are deposited into the appropriate custodial bank
                    accounts
                    and related bank clearing accounts no more than two business
                    days
                    following receipt, or such other number of days specified in
                    the
                    transaction agreements. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(ii)

                	
                  Disbursements
                    made via wire transfer on behalf of an obligor or to an investor
                    are made
                    only by authorized personnel. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(iii)

                	
                  Advances
                    of funds or guarantees regarding collections, cash flows or distributions,
                    and any interest or other fees charged for such advances, are
                    made,
                    reviewed and approved as specified in the transaction agreements.
                    

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(iv)

                	
                  The
                    related accounts for the transaction, such as cash reserve accounts
                    or
                    accounts established as a form of over collateralization, are
                    separately
                    maintained (e.g., with respect to commingling of cash) as set
                    forth in the
                    transaction agreements. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(v)

                	
                  Each
                    custodial account is maintained at a federally insured depository
                    institution as set forth in the transaction agreements. For purposes
                    of
                    this criterion, “federally insured depository institution” with respect to
                    a foreign financial institution means a foreign financial institution
                    that
                    meets the requirements of Rule 13k-1(b)(1) of the Securities
                    Exchange Act.
                    

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(vi)

                	
                  Unissued
                    checks are safeguarded so as to prevent unauthorized access.
                    

                	
                  X

                	 	 	 	 
	
                  1122(d)(2)(vii)
                    

                	
                  Reconciliations
                    are prepared on a monthly basis for all asset-backed securities
                    related
                    bank accounts, including custodial accounts and related bank
                    clearing
                    accounts. These reconciliations are (A) mathematically accurate;
                    (B)
                    prepared within 30 calendar days after the bank statement cutoff
                    date, or
                    such other number of days specified in the transaction agreements;
                    (C)
                    reviewed and approved by someone other than the person who prepared
                    the
                    reconciliation; and (D) contain explanations for reconciling
                    items. These
                    reconciling items are resolved within 90 calendar days of their
                    original
                    identification, or such other number of days specified in the
                    transaction
                    agreements. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	 	
                  Investor
                    Remittances and Reporting

                	 	 	 	 	 
	
                  1122(d)(3)(i)

                	
                  Reports
                    to investors, including those to be filed with the Commission,
                    are
                    maintained in accordance with the transaction agreements and
                    applicable
                    Commission requirements. Specifically, such reports (A) are prepared
                    in
                    accordance with timeframes and other terms set forth in the transaction
                    agreements; (B) provide information calculated in accordance
                    with the
                    terms specified in the transaction agreements; (C) are filed
                    with the
                    Commission as required by its rules and regulations; and (D)
                    agree with
                    investors’ or the trustee’s records as to the total unpaid principal
                    balance and number of Pool Assets serviced by the Servicer.
                    

                	
                  X

                	
                  X

                	
                  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

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(3)(iii)

                	
                  Disbursements
                    made to an investor are posted within two business days to the
                    Servicer’s
                    investor records, or such other number of days specified in the
                    transaction agreements. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(3)(iv)

                	
                  Amounts
                    remitted to investors per the investor reports agree with cancelled
                    checks, or other form of payment, or custodial bank statements.
                    

                	
                  X

                	
                  X

                	
                  X

                	 	 
	 	
                  Pool
                    Asset Administration

                	 	 	 	 	 
	
                  1122(d)(4)(i)
                    

                	
                  Collateral
                    or security on pool assets is maintained as required by the transaction
                    agreements or related pool asset documents. 

                	
                  X

                	 	 	
                  X

                	 
	
                  1122(d)(4)(ii)

                	
                  Pool
                    assets and related documents are safeguarded as required by the
                    transaction agreements 

                	
                  X

                	 	 	
                  X

                	 
	
                  1122(d)(4)(iii)

                	
                  Any
                    additions, removals or substitutions to the asset pool are made,
                    reviewed
                    and approved in accordance with any conditions or requirements
                    in the
                    transaction agreements. 

                	
                  X

                	
                  X

                	
                  X

                	
                  X1   (only
                    with respect to LaSalle as Custodian)

                	 
	
                  1122(d)(4)(iv)

                	
                  Payments
                    on pool assets, including any payoffs, made in accordance with
                    the related
                    pool asset documents are posted to the Servicer’s obligor records
                    maintained no more than two business days after receipt, or such
                    other
                    number of days specified in the transaction agreements, and allocated
                    to
                    principal, interest or other items (e.g., escrow) in accordance
                    with the
                    related pool asset documents. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(v)

                	
                  The
                    Servicer’s records regarding the pool assets agree with the Servicer’s
                    records with respect to an obligor’s unpaid principal balance.
                    

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(vi)

                	
                  Changes
                    with respect to the terms or status of an obligor's pool assets
                    (e.g.,
                    loan modifications or re-agings) are made, reviewed and approved
                    by
                    authorized personnel in accordance with the transaction agreements
                    and
                    related pool asset documents. 

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(4)(vii)

                	
                  Loss
                    mitigation or recovery actions (e.g., forbearance plans, modifications
                    and
                    deeds in lieu of foreclosure, foreclosures and repossessions,
                    as
                    applicable) are initiated, conducted and concluded in accordance
                    with the
                    timeframes or other requirements established by the transaction
                    agreements. 

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(4)(viii)

                	
                  Records
                    documenting collection efforts are maintained during the period
                    a pool
                    asset is delinquent in accordance with the transaction agreements.
                    Such
                    records are maintained on at least a monthly basis, or such other
                    period
                    specified in the transaction agreements, and describe the entity’s
                    activities in monitoring delinquent pool assets including, for
                    example,
                    phone calls, letters and payment rescheduling plans in cases
                    where
                    delinquency is deemed temporary (e.g., illness or unemployment).
                    

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(ix)

                	
                  Adjustments
                    to interest rates or rates of return for pool assets with variable
                    rates
                    are computed based on the related pool asset documents. 

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(4)(x)

                	
                  Regarding
                    any funds held in trust for an obligor (such as escrow accounts):
                    (A) such
                    funds are analyzed, in accordance with the obligor’s pool asset documents,
                    on at least an annual basis, or such other period specified in
                    the
                    transaction agreements; (B) interest on such funds is paid, or
                    credited,
                    to obligors in accordance with applicable pool asset documents
                    and state
                    laws; and (C) such funds are returned to the obligor within 30
                    calendar
                    days of full repayment of the related pool assets, or such other
                    number of
                    days specified in the transaction agreements. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xi)

                	
                  Payments
                    made on behalf of an obligor (such as tax or insurance payments)
                    are made
                    on or before the related penalty or expiration dates, as indicated
                    on the
                    appropriate bills or notices for such payments, provided that
                    such support
                    has been received by the servicer at least 30 calendar days prior
                    to these
                    dates, or such other number of days specified in the transaction
                    agreements. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xii)

                	
                  Any
                    late payment penalties in connection with any payment to be made
                    on behalf
                    of an obligor are paid from the Servicer’s funds and not charged to the
                    obligor, unless the late payment was due to the obligor’s error or
                    omission. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xiii)

                	
                  Disbursements
                    made on behalf of an obligor are posted within two business days
                    to the
                    obligor’s records maintained by the servicer, or such other number of
                    days
                    specified in the transaction agreements. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xiv)
                    

                	
                  Delinquencies,
                    charge-offs and uncollectible accounts are recognized and recorded
                    in
                    accordance with the transaction agreements. 

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(4)(xv)

                	
                  Any
                    external enhancement or other support, identified in Item 1114(a)(1)
                    through (3) or Item 1115 of Regulation AB, is maintained as set
                    forth in
                    the transaction agreements. 

                	
                  X

                	 	
                  X

                	 	 

        

        

          

          
            1
              Only with respect to the logistics
              of adding,
              removing or substituting loan files.

          

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        P

       

      FORM
        10-D, FORM 8-K AND FORM 10-K

      REPORTING
        RESPONSIBILITY

      

      As
        to
        each item described below, the entity indicated as the Responsible Party
        shall
        be primarily responsible for reporting the information to the party identified
        as responsible for preparing the Securities Exchange Act Reports pursuant
        to
        Section 3.18 of the Pooling and Servicing Agreement.

      

      Under
        Item 1 of Form 10-D: a) items marked “monthly statements to certificateholders”
are required to be included in the periodic Distribution Date statement under
        Section 6.06 of the Pooling and Servicing Agreement, provided by the Securities
        Administrator based on information received from the party providing such
        information to the Securities Administrator; and b) items marked “Form 10-D
        report” are required to be in the Form 10-D report but not the monthly
        statements to certificateholders, provided by the party indicated. Information
        under all other Items of Form 10-D is to be included in the Form 10-D report.
        All such information and any other Items of Form 8-K and Form 10-K set forth
        in
        this exhibit shall be sent to the Securities Administrator and the
        Depositor.

      

      

        
          	
                  Form

                	
                  Item

                	
                  Description

                	
                  Servicers

                	
                  Master
                    Servicer

                	
                  Securities
                    Administrator

                	
                  Custodian

                	
                  Trustee
                    (nominal)

                	
                  Depositor

                	
                  Sponsor

                
	
                  10-D

                	
                  Must
                    be filed within 15 days of the distribution date for the asset-backed
                    securities.

                	 	 	 	 
	
                  1

                	
                  Distribution
                    and Pool Performance Information

                	 	 	 	 	 	 	 
	
                  Item
                    1121(a) - Distribution and Pool Performance
                    Information

                	 	 	 	 	 	 	 
	
                  (1)
                    Any applicable record dates, accrual dates, determination dates
                    for
                    calculating distributions and actual distribution dates for the
                    distribution period.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (2)
                    Cash flows received and the sources thereof for distributions,
                    fees and
                    expenses.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (3)
                    Calculated amounts and distribution of the flow of funds for
                    the period
                    itemized by type and priority of payment, including:

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (i)
                    Fees or expenses accrued and paid, with an identification of
                    the general
                    purpose of such fees and the party receiving such fees or
                    expenses.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (ii)
                    Payments accrued or paid with respect to enhancement or other
                    support
                    identified in Item 1114 of Regulation AB (such as insurance premiums
                    or
                    other enhancement maintenance fees), with an identification of
                    the general
                    purpose of such payments and the party receiving such
                    payments.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (iii)
                    Principal, interest and other distributions accrued and paid
                    on the
                    asset-backed securities by type and by class or series and any
                    principal
                    or interest shortfalls or carryovers.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (iv)
                    The amount of excess cash flow or excess spread and the disposition
                    of
                    excess cash flow.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (4)
                    Beginning and ending principal balances of the asset-backed
                    securities.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (5)
                    Interest rates applicable to the pool assets and the asset-backed
                    securities, as applicable. Consider providing interest rate information
                    for pool assets in appropriate distributional groups or incremental
                    ranges.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (6)
                    Beginning and ending balances of transaction accounts, such as
                    reserve
                    accounts, and material account activity during the period.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                   

                  (only
                    with respect to reserve accounts)

                	 	 	 	 
	
                  (7)
                    Any amounts drawn on any credit enhancement or other support
                    identified in
                    Item 1114 of Regulation AB, as applicable, and the amount of
                    coverage
                    remaining under any such enhancement, if known and
                    applicable.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (8)
                    Number and amount of pool assets at the beginning and ending
                    of each
                    period, and updated pool composition information, such as weighted
                    average
                    coupon, weighted average remaining term, pool factors and prepayment
                    amounts.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	
                  Updated
                    pool composition information fields to be as specified by Depositor
                    from
                    time to time

                	 
	
                  (9)
                    Delinquency and loss information for the period.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  In
                    addition, describe any material changes to the information specified
                    in
                    Item 1100(b)(5) of Regulation AB regarding the pool assets.
                    (methodology)

                	
                  X

                	
                  X

                	 	 	 	 	 
	
                  (10)
                    Information on the amount, terms and general purpose of any advances
                    made
                    or reimbursed during the period, including the general use of
                    funds
                    advanced and the general source of funds for
                    reimbursements.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (11)
                    Any material modifications, extensions or waivers to pool asset
                    terms,
                    fees, penalties or payments during the distribution period or
                    that have
                    cumulatively become material over time.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (12)
                    Material breaches of pool asset representations or warranties
                    or
                    transaction covenants.

                	
                  X

                	
                  X

                	
                  X

                   

                  (if
                    agreed upon by the parties)

                	 	 	
                  X

                	 
	
                  (13)
                    Information on ratio, coverage or other tests used for determining
                    any
                    early amortization, liquidation or other performance trigger
                    and whether
                    the trigger was met.

                	 	 	
                  X

                   

                  (monthly
                    statements to certificateholders)

                	 	 	 	 
	
                  (14)
                    Information regarding any new issuance of asset-backed securities
                    backed
                    by the same asset pool, 

                	 	 	 	 	 	
                  X

                	 
	
                  information
                    regarding any pool asset changes (other than in connection with
                    a pool
                    asset converting into cash in accordance with its terms), such
                    as
                    additions or removals in connection with a prefunding or revolving
                    period
                    and pool asset substitutions and repurchases (and purchase rates,
                    if
                    applicable), and cash flows available for future purchases, such
                    as the
                    balances of any prefunding or revolving accounts, if
                    applicable.

                	
                  X

                	
                  X

                	
                  X

                	 	 	
                  X

                	 
	
                  Disclose
                    any material changes in the solicitation, credit-granting, underwriting,
                    origination, acquisition or pool selection criteria or procedures,
                    as
                    applicable, used to originate, acquire or select the new pool
                    assets.

                	 	 	 	 	 	
                  X

                	
                  X

                
	
                  Item
                    1121(b) - Pre-Funding or Revolving Period Information

                   

                  Updated
                    pool information as required under Item 1121(b).

                	 	 	 	 	 	
                  X

                	 
	
                  2

                	
                  Legal
                    Proceedings

                	 	 	 	 	 	 	 
	
                  Item
                    1117 - Legal proceedings pending against the following entities,
                    or their
                    respective property, that is material to Certificateholders,
                    including
                    proceedings known to be contemplated by governmental
                    authorities:

                	 	 	 	 	 	 	 
	
                  Sponsor
                    (Seller)

                	 	 	 	 	 	 	
                  X

                
	
                  Depositor

                	 	 	 	 	 	
                  X

                	 
	
                  Trustee

                	 	 	 	 	 	 	 
	
                  Issuing
                    entity

                	 	 	 	 	 	
                  X

                	 
	
                  Master
                    Servicer, affiliated Servicer, other Servicer servicing 20% or
                    more of
                    pool assets at time of report, other material servicers

                	
                  X

                	
                  X

                	 	 	 	 	 
	
                  Securities
                    Administrator

                	 	 	
                  X

                	 	 	 	 
	
                  Originator
                    of 20% or more of pool assets as of the Cut-off Date

                	 	 	 	 	 	
                  X

                	 
	
                  Custodian

                	 	 	 	
                  X

                	 	 	 
	
                  3

                	
                  Sales
                    of Securities and Use of Proceeds

                	 	 	 	 	 	 	 
	
                  Information
                    from Item 2(a) of Part II of Form 10-Q:

                   

                  With
                    respect to any sale of securities by the sponsor, depositor or
                    issuing
                    entity, that are backed by the same asset pool or are otherwise
                    issued by
                    the issuing entity, whether or not registered, provide the sales
                    and use
                    of proceeds information in Item 701 of Regulation S-K. Pricing
                    information
                    can be omitted if securities were not registered.

                	 	 	 	 	 	
                  X

                	 
	
                  4

                	
                  Defaults
                    Upon Senior Securities

                	 	 	 	 	 	 	 
	
                  Information
                    from Item 3 of Part II of Form 10-Q:

                   

                  Report
                    the occurrence of any Event of Default (after expiration of any
                    grace
                    period and provision of any required notice)

                	 	
                  X

                   

                  (only
                    with respect to any servicer event of default)

                	 	 	 	 	 
	
                  5

                	
                  Submission
                    of Matters to a Vote of Certificateholders

                	 	 	 	 	 	 	 
	
                  Information
                    from Item 4 of Part II of Form 10-Q

                	 	 	
                  X

                	 	 	 	 
	
                  6

                	
                  Significant
                    Obligors of Pool Assets

                	 	 	 	 	 	 	 
	
                  Item
                    1112(b) - Significant
                    Obligor Financial Information*

                	 	 	 	 	 	
                  X

                	 
	
                  *This
                    information need only be reported on the Form 10-D for the distribution
                    period in which updated information is required pursuant to the
                    Item.

                	 	 	 	 	 	 	 
	
                  7

                	
                  Significant
                    Enhancement Provider Information

                	 	 	 	 	 	 	 
	
                  Item
                    1114(b)(2) - Credit Enhancement Provider Financial
                    Information*

                	 	 	 	 	 	 	 
	
                  Determining
                    applicable disclosure threshold

                	 	 	
                  X

                	 	 	 	 
	
                  Requesting
                    required financial information or effecting incorporation by
                    reference

                	 	 	
                  X

                	 	 	 	 
	
                  Item
                    1115(b) - Derivative Counterparty Financial
                    Information*

                	 	 	 	 	 	 	 
	
                  Determining
                    current maximum probable exposure

                	 	 	 	 	 	
                  X

                	 
	
                  Determining
                    current significance percentage

                	 	 	
                  X

                	 	 	 	 
	
                  Requesting
                    required financial information or effecting incorporation by
                    reference

                	 	 	
                  X

                	 	 	 	 
	
                  *This
                    information need only be reported on the Form 10-D for the distribution
                    period in which updated information is required pursuant to the
                    Items.

                	 	 	 	 	 	 	 
	
                  8

                	
                  Other
                    Information

                	 	 	 	 	 	 	 
	
                  Disclose
                    any information required to be reported on Form 8-K during the
                    period
                    covered by the Form 10-D but not reported

                	
                  The
                    Responsible Party for the applicable Form 8-K item as indicated
                    below.

                
	
                  9

                	
                  Exhibits

                	 	 	 	 	 	 	 
	
                  Distribution
                    report

                	 	 	
                  X

                	 	 	 	 
	
                  Exhibits
                    required by Item 601 of Regulation S-K, such as material
                    agreements

                	 	 	 	 	 	
                  X

                	 
	
                  8-K

                	
                  Must
                    be filed within four business days of an event reportable on
                    Form
                    8-K.

                	 	 	 	 
	
                  1.01

                	
                  Entry
                    into a Material Definitive Agreement

                	 	 	 	 	 	 	 
	
                  Disclosure
                    is required regarding entry into or amendment of any definitive
                    agreement
                    that is material to the securitization, even if depositor is
                    not a
                    party.

                   

                  Examples:
                    servicing agreement, custodial agreement.

                   

                  Note:
                    disclosure not required as to definitive agreements that are
                    fully
                    disclosed in the prospectus

                	
                  X

                	
                  X

                	
                  X

                	 	 	
                  X

                	
                  X

                
	
                  1.02

                	
                  Termination
                    of a Material Definitive Agreement

                	
                  X

                	
                  X

                	
                  X

                	 	 	
                  X

                	
                  X

                
	
                  Disclosure
                    is required regarding termination of any definitive agreement
                    that is
                    material to the securitization (other than expiration in accordance
                    with
                    its terms), even if depositor is not a party.

                   

                   

                  Examples:
                    servicing agreement, custodial agreement.

                	 	 	 	 	 	 	 
	
                  1.03

                	
                  Bankruptcy
                    or Receivership

                	 	 	 	 	 	 	 
	
                  Disclosure
                    is required regarding the bankruptcy or receivership, if known
                    to the
                    Master Servicer, with respect to any of the following: 

                   

                  Sponsor
                    (Seller), Depositor, Master Servicer, affiliated Servicer, other
                    Servicer
                    servicing 20% or more of pool assets at time of report, other
                    material
                    servicers, Securities Administrator, Trustee, significant obligor,
                    credit
                    enhancer (10% or more), derivatives counterparty,
                    Custodian

                	
                  X

                	
                  X

                	
                  X

                	
                  X

                	 	
                  X

                	
                  X

                
	
                  2.04

                	
                  Triggering
                    Events that Accelerate or Increase a Direct Financial Obligation
                    or an
                    Obligation under an Off-Balance Sheet Arrangement

                  [in
                    this transaction there is no off-balance sheet
                    arrangement]

                	 	 	 	 	 	 	 
	
                  Includes
                    an early amortization, performance trigger or other event, including
                    event
                    of default, that would materially alter the payment priority/distribution
                    of cash flows/amortization schedule.

                   

                  Disclosure
                    will be made of events other than waterfall triggers which are
                    disclosed
                    in the monthly statements to certificateholders.

                  [in
                    this transaction there will be no events other than waterfall
                    triggers]

                	 	 	
                  X

                	 	 	 	 
	
                  3.03

                	
                  Material
                    Modification to Rights of Certificateholders

                	 	 	 	 	 	 	 
	
                  Disclosure
                    is required of any material modification to documents defining
                    the rights
                    of Certificateholders, including the Pooling and Servicing
                    Agreement

                	 	 	
                  X

                	 	 	
                  X

                	 
	
                  5.03

                	
                  Amendments
                    to Articles of Incorporation or Bylaws; Change in Fiscal
                    Year

                	 	 	 	 	 	 	 
	
                  Disclosure
                    is required of any amendment “to the governing documents of the issuing
                    entity”

                	 	 	 	 	 	
                  X

                	 
	
                  5.06

                	
                  Change
                    in Shell Company Status

                	 	 	 	 	 	 	 
	
                  [Not
                    applicable to ABS issuers]

                	 	 	 	 	 	
                  X

                	 
	
                  6.01

                	
                  ABS
                    Informational and Computational Material

                	 	 	 	 	 	 	 
	
                  [Not
                    included in reports to be filed under Section 3.18]

                	 	 	 	 	 	
                  X

                	 
	
                  6.02

                	
                  Change
                    of Servicer or Trustee

                	 	 	 	 	 	 	 
	
                  Requires
                    disclosure of any removal, replacement, substitution or addition
                    of any
                    master servicer, affiliated servicer, other servicer servicing
                    10% or more
                    of pool assets at time of report, other material servicers, securities
                    administrator or trustee.

                	
                  X

                	
                  X

                	
                  X

                	 	 	
                  X

                	 
	 	
                  Reg
                    AB disclosure about any new servicer is also required.

                	
                  X

                	 	 	 	 	 	 
	 	
                  Reg
                    AB disclosure about any new trustee is also required.

                	 	 	 	 	
                  X (to
                    the extent required by successor trustee)

                	 	 
	 	
                  Reg
                    AB disclosure about any new securities administrator is also
                    required.

                	 	 	
                  X

                	 	 	 	 
	
                  6.03

                	
                  Change
                    in Credit Enhancement or Other External Support

                	 	 	 	 	 	 	 
	
                  Covers
                    termination of any enhancement in manner other than by its terms,
                    the
                    addition of an enhancement, or a material change in the enhancement
                    provided. Applies to external credit enhancements as well as
                    derivatives.

                	 	 	
                  X

                	 	 	
                  X

                	 
	 	
                  Reg
                    AB disclosure about any new enhancement provider is also
                    required.

                	 	 	
                  X

                	 	 	
                  X

                	 
	
                  6.04

                	
                  Failure
                    to Make a Required Distribution

                	 	 	
                  X

                	 	 	 	 
	
                  6.05

                	
                  Securities
                    Act Updating Disclosure

                	 	 	 	 	 	 	 
	
                  If
                    any material pool characteristic differs by 5% or more at the
                    time of
                    issuance of the securities from the description in the final
                    prospectus,
                    provide updated Reg AB disclosure about the actual asset
                    pool.

                	 	 	 	 	 	
                  X

                	
                   

                
	
                  If
                    there are any new servicers or originators required to be disclosed
                    under
                    Regulation AB as a result of the foregoing, provide the information
                    called
                    for in Items 1108 and 1110 respectively.

                	 	 	 	 	 	
                  X

                	 
	
                  7.01

                	
                  Regulation
                    FD Disclosure

                	
                  X

                	
                  X

                	
                  X

                	
                  X

                	 	
                  X

                	 
	
                  8.01

                	
                  Other
                    Events

                	 	 	 	 	 	 	 
	
                  Any
                    event, with respect to which information is not otherwise called
                    for in
                    Form 8-K, that the registrant deems of importance to
                    Certificateholders.

                	 	 	 	 	 	
                  X

                	 
	
                  9.01

                	
                  Financial
                    Statements and Exhibits

                	
                  The
                    Responsible Party applicable to reportable event.

                
	
                  10-K

                	
                  Must
                    be filed within 90 days of the fiscal year end for the
                    registrant.

                	 	 	 	 
	
                  9B

                	
                  Other
                    Information

                	 	 	 	 	 	 	 
	 	 	
                  Disclose
                    any information required to be reported on Form 8-K during the
                    fourth
                    quarter covered by the Form 10-K but not reported

                	
                  The
                    Responsible Party for the applicable Form 8-K Item as indicated
                    above.

                
	 	
                  15

                	
                  Exhibits
                    and Financial Statement Schedules

                	 	 	 	 	 	 	 
	
                  Item
                    1112(b) - Significant
                    Obligor Financial Information

                	 	 	 	 	 	
                  X

                	 
	
                  Item
                    1114(b)(2) - Credit Enhancement Provider Financial
                    Information

                	 	 	 	 	 	 	 
	
                  Determining
                    applicable disclosure threshold

                	 	 	
                  X

                	 	 	 	 
	
                  Requesting
                    required financial information or effecting incorporation by
                    reference

                	 	 	
                  X

                	 	 	 	 
	
                  Item
                    1115(b) - Derivative Counterparty Financial
                    Information

                	 	 	 	 	 	 	 
	
                  Determining
                    current maximum probable exposure

                	 	 	 	 	 	
                  X

                	 
	 	 	
                  Determining
                    current significance percentage

                	 	 	
                  X

                	 	 	 	 
	
                  Requesting
                    required financial information or effecting incorporation by
                    reference

                	 	 	
                  X

                	 	 	 	 
	
                  Item
                    1117 - Legal proceedings pending against the following entities,
                    or their
                    respective property, that is material to Certificateholders,
                    including
                    proceedings known to be contemplated by governmental
                    authorities:

                	 	 	 	 	 	 	 
	
                  Sponsor
                    (Seller)

                	 	 	 	 	 	 	
                  X

                
	
                  Depositor

                	 	 	 	 	 	
                  X

                	 
	
                  Trustee

                	 	 	 	 	 	 	 
	
                  Issuing
                    entity

                	 	 	 	 	 	
                  X

                	 
	
                  Master
                    Servicer, affiliated Servicer, other Servicer servicing 20% or
                    more of
                    pool assets at time of report, other material servicers

                	
                  X

                	
                  X

                	 	 	 	 	 
	
                  Securities
                    Administrator

                	 	 	
                  X

                	 	 	 	 
	
                  Originator
                    of 20% or more of pool assets as of the Cut-off Date

                	 	 	 	 	 	
                  X

                	 
	
                  Custodian

                	 	 	 	
                  X

                	 	 	 
	
                  Item
                    1119 - Affiliations and relationships between the following entities,
                    or
                    their respective affiliates, that are material to
                    Certificateholders:

                	 	 	 	 	 	 	 
	
                  Sponsor
                    (Seller)

                	 	 	 	 	 	 	
                  X

                
	
                  Depositor

                	 	 	 	 	 	
                  X

                	 
	
                  Trustee

                	 	 	 	 	 	 	 
	
                  Master
                    Servicer, affiliated Servicer, other Servicer servicing 20% or
                    more of
                    pool assets at time of report, other material servicers

                	
                  X

                	
                  X

                	 	 	 	 	 
	
                  Securities
                    Administrator

                	 	 	
                  X

                	 	 	 	 
	
                  Originator

                	 	 	 	 	 	
                  X

                	 
	
                  Custodian

                	 	 	 	
                  X

                	 	 	 
	
                  Credit
                    Enhancer/Support Provider

                	 	 	 	 	 	
                  X

                	 
	
                  Significant
                    Obligor

                	 	 	 	 	 	
                  X

                	 
	
                  Item
                    1122 - Assessment of Compliance with Servicing
                    Criteria

                	
                  X

                	
                  X

                	
                  X

                	
                  X

                	 	 	 
	
                  Item
                    1123 - Servicer Compliance Statement

                	
                  X

                	
                  X

                	
                  X

                	 	 	 	 

        

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        Q

       

      ADDITIONAL
        DISCLOSURE NOTIFICATION

      

      Bear
        Stearns Asset Backed Securities I LLC

      383
        Madison Avenue

      New
        York,
        New York 10179

      Fax:
        (212) 272-2000

      E-mail:
        regabnotifications@bear.com

      

      LaSalle
        Bank National Association as Securities Administrator

      135
        S.
        LaSalle St., Suite 1625

      Chicago,
        Illinois 60603

      Fax:
        (312) 904-1368

      E-mail:
        edgar@abnamro.com

      

      Attn:
        Global Securities and Trust Services Group - SACO I TRUST 2006-9 - SEC REPORT
        PROCESSING

      

      RE:
        **Additional Form [     ]
        Disclosure**Required

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 3.18 of the Pooling and Servicing Agreement, dated
        as of
        August 1, 2006, among Bear Stearns Asset Backed Securities I LLC, as depositor,
        EMC Mortgage Corporation, as Seller and as company, LaSalle Bank National
        Association, as master servicer and as securities administrator, and Citibank,
        N.A., as trustee. The Undersigned, as [Name of Party], hereby notifies you
        that
        certain events have come to our attention that [will][may] need to be disclosed
        on Form [     ].

       

      Description
        of Additional Form [     ]
        Disclosure:

       

      List
        of
        Any Attachments hereto to be included in the Additional Form [     ]
        Disclosure:

       

      Any
        inquiries related to this notification should be directed to [     ], phone
        number: [     ]; email address:
        [    
].

       

      
        	
                [NAME
                  OF PARTY],

                as
                  [role]

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      EXHIBIT
        R-1

       

      FORM
        OF
        FIRST TENNESSEE SERVICING AGREEMENT

       

      

      
         

        

        

        

        EMC
          MORTGAGE CORPORATION 

        Purchaser,

        

        FIRST
          TENNESSEE MORTGAGE SERVICES, INC.

        Servicer,

        

        FIRST
          HORIZON HOME LOAN CORPORATION

        Seller,

        

        PURCHASE,
          WARRANTIES AND SERVICING AGREEMENT

        Dated
          as
          of September 1, 2003

        

        

        

        

        

        (Fixed
          and Adjustable Rate Mortgage Loans)

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        TABLE
          OF CONTENTS

        

        ARTICLE
          I

        

        

        Section
          1.01 Defined Terms2

        

        ARTICLE
          II

        

        Section
          2.01 Agreement to Purchase

        Section
          2.02 Purchase Price

        Section
          2.03 Servicing of Mortgage Loans

        Section
          2.04 Record Title and Possession of Mortgage Files; Maintenance
          of Servicing Files

        Section
          2.05 Books and Records

        Section
          2.06 Transfer of Mortgage Loans

        Section
          2.07 Delivery of Mortgage Loan Documents

        Section
          2.08 Quality Control Procedures

        Section
          2.09 Near-term Principal Prepayments; Near Term Payment Defaults

        Section
          2.10 Modification of Obligations

        ARTICLE
          III

        

        Section
          3.01 Representations and Warranties of the Company

        Section
          3.02 Representations and Warranties as to Individual
          Mortgage Loans

        Section
          3.03 Repurchase; Substitution

        Section
          3.04 Representations and Warranties of the Purchaser

        

        ARTICLE
          IV

        

        Section
          4.01 Company to Act as Servicer

        Section
          4.02 Collection of Mortgage Loan Payments

        Section
          4.03 Realization Upon Defaulted Mortgage Loans

        Section
          4.04 Establishment of Custodial Accounts; Deposits
          in Custodial Accounts

        Section
          4.05 Permitted Withdrawals from the Custodial
          Account

        Section
          4.06 Establishment of Escrow Accounts; Deposits
          in Escrow Accounts

        Section
          4.07 Permitted Withdrawals From Escrow Account

        Section
          4.08 Payment of Taxes, Insurance and Other Charges;
          Maintenance of Primary Mortgage Insurance
          Policies; Collections Thereunder

        Section
          4.09 Transfer of Accounts

        Section
          4.10 Maintenance of Hazard Insurance

        Section
          4.11 Maintenance of Mortgage Impairment Insurance
          Policy

        Section
          4.12 Fidelity Bond, Errors and Omissions Insurance

        Section
          4.13 Title, Management and Disposition of REO Property

        Section
          4.14 Notification of Maturity Date

        

        

          ARTICLE
            V

          

          Section
            5.01 Distributions

          Section
            5.02 Statements to the Purchaser

          Section
            5.03 Monthly Advances by the Company

          Section
            5.04 Liquidation Reports

          

          ARTICLE
            VI

          

          Section
            6.01 Assumption Agreements

          Section
            6.02 Satisfaction of Mortgages and Release of Mortgage Files

          Section
            6.03 Servicing Compensation

          Section
            6.04 Annual Statement as to Compliance

          Section
            6.05 Annual Independent Certified Public Accountants’ Servicing
            Report

          Section
            6.06 Purchaser’s Right to Examine Company Records

          

          ARTICLE
            VII

          

          Section
            7.01 Company Shall Provide Information as Reasonably Required

          

          ARTICLE
            VIII

          

          Section
            8.01 Indemnification; Third Party Claims

          Section
            8.02 Merger or Consolidation of the Company

          Section
            8.03 Limitation on Liability of the Company and Others

          Section
            8.04 Company Not to Assign or Resign

          Section
            8.05 No Transfer of Servicing

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          ARTICLE
            IX

          

          Section
            9.01 Events of Default

          Section
            9.02 Waiver of Defaults

          

          ARTICLE
            X

          

          Section
            10.01 Termination

          Section
            10.02 Termination without cause

          

          ARTICLE
            XI

          

          Section
            11.01 Successor to the Company

          Section
            11.02 Amendment

          Section
            11.03 Recordation of Agreement

          Section
            11.04 Governing Law

          Section
            11.05 Notices

          Section
            11.06 Severability of Provisions

          Section
            11.07 Exhibits

          Section
            11.08 General Interpretive Principles

          Section
            11.09 Reproduction of Documents

          Section
            11.10 Confidentiality of Information

          Section
            11.11 Recordation of Assignment of Mortgage

          Section
            11.12 Assignment by Purchaser

          Section
            11.13 No Partnership

          Section

            11.14 Execution: Successors and Assigns

          Section
            11.15 Entire Agreement

          Section
            11.16 No Solicitation

          Section
            11.17 Closing

          Section
            11.18 Cooperation of Company with Reconstitution

        EXHIBITS

        
          	A    	
                  Contents
                    of Mortgage File

                

        

        
          	B    	
                  Custodial
                    Account Letter Agreement

                

        

        
          	C    	
                  Escrow
                    Account Letter Agreement

                

        

        
          	D    	
                  Form
                    of Assignment, Assumption and Recognition
                    Agreement

                

        

        
          	E    	
                  Form
                    of Trial Balance

                

        

        
          	F    	
                  [reserved]

                

        

        
          	G    	
                  Request
                    for Release of Documents and
                    Receipt

                

        

        
          	H    	
                  Company’s
                    Underwriting Guidelines

                

        

        
          	I      
                  	
                  Form
                    of Term Sheet

                

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        

        This
          is a
          Purchase, Warranties and Servicing Agreement, dated as of September 1,
          2003 and
          is executed among EMC MORTGAGE CORPORATION, as Purchaser, with offices
          located
          at Mac Arthur Ridge II, 909 Hidden Ridge Drive, Suite 200, Irving, Texas
          75038
          (the "Purchaser"), FIRST TENNESSEE MORTGAGE SERVICES, INC., as servicer
          (the
“Servicer”) with offices located at 4000
          Horizon Way, Irving, Texas 75063 and FIRST HORIZON HOME LOAN CORPORATION,
          as
          seller (the “Seller”) with offices located at 4000 Horizon Way, Irving, Texas
          75063 (the Servicer and the Seller together referred to as the
          "Company").

        

        W I T N E S S E T H
          :

        

        WHEREAS,
          the Purchaser has heretofore agreed to purchase from the Company and the
          Company
          has heretofore agreed to sell to the Purchaser, from time to time, certain
          Mortgage Loans on a servicing retained basis; 

        

        WHEREAS,
          each of the Mortgage Loans is secured by a mortgage, deed of trust or other
          security instrument creating a first lien on a residential dwelling located
          in
          the jurisdiction indicated on the Mortgage Loan Schedule, which is annexed
          to
          the related Term Sheet; and

        

        WHEREAS,
          the Purchaser and the Company wish to prescribe the representations and
          warranties of the Company with respect to itself and the Mortgage Loans
          and the
          management, servicing and control of the Mortgage Loans;

        

        NOW,
          THEREFORE, in consideration of the mutual agreements hereinafter set forth,
          and
          for other good and valuable consideration, the receipt and adequacy of
          which is
          hereby acknowledged, the Purchaser and the Company agree as
          follows:

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        

        ARTICLE
          I

        

        DEFINITIONS

        

        Section
          1.01 Defined
          Terms.

        

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

        

        Accepted
          Servicing Practices:
          With
          respect to any Mortgage Loan, those mortgage servicing practices (including
          collection procedures) of prudent mortgage banking institutions which service
          mortgage loans of the same type as such Mortgage Loan in the jurisdiction
          where
          the related Mortgaged Property is located, and which are in accordance
          with
          Fannie Mae servicing practices and procedures, for MBS pool mortgages,
          as
          defined in the Fannie Mae Guides including future updates. 

        

        Adjustment
          Date:
          As to
          each adjustable rate Mortgage Loan, the date on which the Mortgage Interest
          Rate
          is adjusted in accordance with the terms of the related Mortgage
          Note.

        

        Agreement:
          This
          Purchase, Warranties and Servicing Agreement including all exhibits hereto,
          amendments hereof and supplements hereto.

        

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

        

        Assignment:
          An
          individual assignment of the Mortgage, notice of transfer or equivalent
          instrument, in recordable form, sufficient under the laws of the jurisdiction
          wherein the related Mortgaged Property is located to reflect of record
          the sale
          or transfer of the Mortgage Loan.

         

        BIF:
          The
          Bank Insurance Fund, or any successor thereto.

        

        Business
          Day:
          Any day
          other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the State
          of
          New York or State of Texas, or (iii) a day on which banks in the State
          of New
          York or State of Texas are authorized or obligated by law or executive
          order to
          be closed.

        

        Closing
          Date:
          With
          respect to any Mortgage Loan, the date stated on the related Term Sheet.
          

         

        Code: The
          Internal Revenue Code of 1986, or any successor statute thereto.

        

        Company:
           Reference
          to the Seller and Servicer.

        

        Company's
          Officer's Certificate:
          A
          certificate signed by the Chairman of the Board, President, any Vice President
          or Treasurer of Company stating the date by which Company expects to receive
          any
          missing documents sent for recording from the applicable recording
          office.

        

        Condemnation
          Proceeds:
          All
          awards or settlements in respect of a Mortgaged Property, whether permanent
          or
          temporary, partial or entire, by exercise of the power of eminent domain
          or
          condemnation, to the extent not required to be released to a Mortgagor
          in
          accordance with the terms of the related Mortgage Loan Documents.

        

        Confirmation:
          The
          trade confirmation letter between the Purchaser and the Company which relates
          to
          the Mortgage Loans.

        

        Co-op
          Lease:
          With
          respect to a Co-op Loan, the lease with respect to a dwelling unit occupied
          by
          the Mortgagor and relating to the stock allocated to the related dwelling
          unit.

        

        Co-op
          Loan:
          A
          Mortgage Loan secured by the pledge of stock allocated to a dwelling unit
          in a
          residential cooperative housing corporation and a collateral assignment
          of the
          related Co-op Lease.

        

        Current
          Appraised Value: With
          respect to any Mortgaged Property, the value thereof as determined by an
          appraisal made for the Company (by an appraiser who met the requirements
          of the
          Company and Fannie Mae) at the request of a Mortgagor for the purpose of
          canceling a Primary Mortgage Insurance Policy in accordance with federal,
          state
          and local laws and regulations or otherwise made at the request of the
          Company
          or Mortgagor.

        

        Current
          LTV: The
          ratio
          of the Stated Principal Balance of a Mortgage Loan to the Current Appraised
          Value of the Mortgaged Property.

        

        Custodial
          Account:
          Each
          separate demand account or accounts created and maintained pursuant to
          Section
          4.04 which shall be entitled "[_____________________], in trust for the
          [Purchaser], Owner of Adjustable Rate Mortgage Loans" and shall be established
          in an Eligible Account, in the name of the Person that is the "Purchaser"
          with
          respect to the related Mortgage Loans.

         

        Custodian:
          With
          respect to any Mortgage Loan, the entity stated on the related Term Sheet,
          and
          its successors and assigns, as custodian for the Purchaser.

        

        Cut-off
          Date:
          With
          respect to any Mortgage Loan, the date stated on the related Term Sheet.
          

        

        Determination
          Date:
          The
          15th day (or if such 15th day is not a Business Day, the Business Day
          immediately preceding such 15th day) of the month of the related Remittance
          Date.

        

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

        

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

        

        Eligible
          Account:
          An
          account established and maintained: (i) within FDIC insured accounts created,
          maintained and monitored by the Company so that all funds deposited therein
          are
          fully insured, or (ii) as a trust account with the corporate trust department
          of
          a depository institution or trust company organized under the laws of the
          United
          States of America or any one of the states thereof or the District of Columbia
          which is not affiliated with the Company (or any sub-servicer) or (iii)
          with an
          entity which is an institution whose deposits are insured by the FDIC,
          the
          unsecured and uncollateralized long-term debt obligations of which shall
          be
          rated “A2” or higher by Standard & Poor’s and “A” or higher by Fitch, Inc.
          or one of the two highest short-term ratings by any applicable Rating Agency,
          and which is either (a) a federal savings association duly organized, validly
          existing and in good standing under the federal banking laws, (b) an institution
          duly organized, validly existing and in good standing under the applicable
          banking laws of any state, (c) a national banking association under the
          federal
          banking laws, or (d) a principal subsidiary of a bank holding company,
          or (iv)
          if ownership of the Mortgage Loans is evidenced by mortgaged-backed securities,
          the equivalent required ratings of each Rating Agency, and held such that
          the
          rights of the Purchaser and the owner of the Mortgage Loans shall be fully
          protected against the claims of any creditors of the Company (or any
          sub-servicer) and of any creditors or depositors of the institution in
          which
          such account is maintained or (v) in a separate non-trust account without
          FDIC
          or other insurance in an Eligible Institution. In the event that a Custodial
          Account is established pursuant to clause (iii), (iv) or (v) of the preceding
          sentence, the Company shall provide the Purchaser with written notice on
          the
          Business Day following the date on which the applicable institution fails
          to
          meet the applicable ratings requirements.

        

        Eligible
          Institution:
           An
          institution having (i) the highest short-term debt rating, and one of the
          two
          highest long-term debt ratings of each Rating Agency; or (ii) with respect
          to
          any Custodial Account, an unsecured long-term debt rating of at least one
          of the
          two highest unsecured long-term debt ratings of each Rating Agency.

        

        Equity
          Take-Out Refinanced Mortgage Loan:
          A
          Refinanced Mortgage Loan the proceeds of which were in excess of the outstanding
          principal balance of the existing mortgage loan as defined in the Fannie
          Mae
          Guide(s). 

        

        Escrow
          Account:
          Each
          separate trust account or accounts created and maintained pursuant to Section
          4.06 which shall be entitled "[__________________], in trust for the
          [Purchaser], Owner of Adjustable Rate Mortgage Loans, and various Mortgagors"
          and shall be established in an Eligible Account, in the name of the Person
          that
          is the "Purchaser" with respect to the related Mortgage Loans.

        

        Escrow
          Payments:
          With
          respect to any Mortgage Loan, the amounts constituting ground rents, taxes,
          assessments, water rates, sewer rents, municipal charges, mortgage insurance
          premiums, fire and hazard insurance premiums, condominium charges, and
          any other
          payments required to be escrowed by the Mortgagor with the mortgagee pursuant
          to
          the Mortgage or any other document.

        

        Event
          of Default:
          Any one
          of the conditions or circumstances enumerated in Section 9.01.

        

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

        

        Fannie
          Mae Guide(s):
          The
          Fannie Mae Selling Guide and the Fannie Mae Servicing Guide and all amendments
          or additions thereto.

        

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

        

        FHLMC:
          The
          Federal Home Loan Mortgage Corporation, or any successor thereto.

        

        FHLMC
          Guide:
          The
          FHLMC Single Family Seller/Servicer Guide and all amendments or additions
          thereto.

        

        Fidelity
          Bond:
          A
          fidelity bond to be maintained by the Company pursuant to Section
          4.12.

        

        FIRREA:
          The
          Financial Institutions Reform, Recovery, and Enforcement Act of
          1989.

        

        First
          Remittance Date:
          With
          respect to any Mortgage Loan, the Remittance Date occurring in the month
          following the month in which the related Closing Date occurs.

        

        GAAP:
          Generally accepted accounting principles, consistently applied.

        

        HUD:
          The
          United States Department of Housing and Urban Development or any successor
          thereto.

        

        Index:
          With
          respect to any adjustable rate Mortgage Loan, the index identified on the
          Mortgage Loan Schedule and set forth in the related Mortgage Note for the
          purpose of calculating the interest rate thereon.

        

        Initial
          Rate Cap: As
          to
          each adjustable rate Mortgage Loan, where applicable, the maximum increase
          or
          decrease in the Mortgage Interest Rate on the first Adjustment
          Date.

        

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

        

        Lifetime
          Rate Cap:
          As to
          each adjustable rate Mortgage Loan, the maximum Mortgage Interest Rate
          over the
          term of such Mortgage Loan. 

        

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

        

        Loan-to-Value
          Ratio or LTV:
          With
          respect to any Mortgage Loan, the ratio of the original outstanding principal
          amount of the Mortgage Loan, to (i) the Appraised Value of the Mortgaged
          Property as of the Origination Date with respect to a Refinanced Mortgage
          Loan,
          and (ii) the lesser of the Appraised Value of the Mortgaged Property as
          of the
          Origination Date or the purchase price of the Mortgaged Property with respect
          to
          all other Mortgage Loans.

        

        Margin:
          With
          respect to each adjustable rate Mortgage Loan, the fixed percentage amount
          set
          forth in each related Mortgage Note which is added to the Index in order
          to
          determine the related Mortgage Interest Rate, as set forth in the Mortgage
          Loan
          Schedule.

        

        Monthly
          Advance:
          The
          aggregate of the advances made by the Company on any Remittance Date pursuant
          to
          Section 5.03.

        

        Monthly
          Payment:
          The
          scheduled monthly payment of principal and interest on a Mortgage Loan
          which is
          payable by a Mortgagor under the related Mortgage Note.

        

        Mortgage:
          The
          mortgage, deed of trust or other instrument securing a Mortgage Note which
          creates a first lien on an unsubordinated estate in fee simple in real
          property
          securing the Mortgage Note.

        

        Mortgage
          File:
          The
          mortgage documents pertaining to a particular Mortgage Loan which are specified
          in Exhibit A hereto and any additional documents required to be added to
          the
          Mortgage File pursuant to this Agreement.

        

        Mortgage
          Impairment Insurance Policy:
          A
          mortgage impairment or blanket hazard insurance policy as described in
          Section
          4.11.

        

        Mortgage
          Interest Rate:
          The
          annual rate at which interest accrues on any Mortgage Loan, which may be
          adjusted from time to time for an adjustable rate Mortgage Loan, in accordance
          with the provisions of the related Mortgage Note.

        

        Mortgage
          Loan:
          An
          individual mortgage loan which is the subject of this Agreement, each Mortgage
          Loan originally sold and subject to this Agreement being identified on
          the
          Mortgage Loan Schedule attached to the related Term Sheet, which Mortgage
          Loan
          includes without limitation the Mortgage File, the Monthly Payments, Principal
          Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds,
          REO Disposition Proceeds, and all other rights, benefits, proceeds and
          obligations arising from or in connection with such Mortgage Loan, excluding
          replaced or repurchased mortgage loans.

        

        Mortgage
          Loan Documents:
          The
          documents listed in
          Exhibit A.

        

        Mortgage
          Loan Remittance Rate:
          With
          respect to each Mortgage Loan, the annual rate of interest remitted to
          the
          Purchaser, which shall be equal to the Mortgage Interest Rate minus the
          Servicing Fee Rate.

        

        Mortgage
          Loan Schedule:
          The
          schedule of Mortgage Loans annexed to the related Term Sheet, such schedule
          setting forth the following information with respect to each Mortgage Loan
          in
          the related Mortgage Loan Package:

        

        (1) the
          Company's Mortgage Loan identifying number;

        

        (2) the
          Mortgagor's first and last name;

        

        (3)
           the
          street address of the Mortgaged Property including the city, state and
          zip
          code;

        

        (4) a
          code
          indicating whether the Mortgaged Property is owner-occupied, a second home
          or an
          investor property;

        

        (5) the
          type
          of residential property constituting the Mortgaged Property;

        

        
          	(6)
                    	
                  the
                    original months to maturity of the Mortgage
                    Loan;

                

        

        

        (7) the
          remaining months to maturity from the related Cut-off Date, based on the
          original amortization schedule and, if different, the maturity expressed
          in the
          same manner but based on the actual amortization schedule;

        

        (8) the
          Sales
          Price, if applicable, Appraised Value and Loan-to-Value Ratio, at
          origination;

        

        (9) the
          Mortgage Interest Rate as of origination and as of the related Cut-off
          Date;
          with respect to each adjustable rate Mortgage Loan, the initial Adjustment
          Date,
          the next Adjustment Date immediately following the related Cut-off Date,
          the
          Index, the Margin, the Initial Rate Cap, if any, Periodic Rate Cap, if
          any,
          minimum Mortgage Interest Rate under the terms of the Mortgage Note and
          the
          Lifetime Rate Cap;

        

        (10) the
          Origination Date of the Mortgage Loan;

        

        (11) the
          stated maturity date;

        

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

        

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

        

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

        

        (15) the
          scheduled Stated Principal Balance of the Mortgage Loan as of the close
          of
          business on the related Cut-off Date, after deduction of payments of principal
          due on or before the related Cut-off Date whether or not collected;

        

        (16)
           a
          code
          indicating the purpose of the Mortgage Loan (i.e., purchase, rate and term
          refinance, equity take-out refinance); 

        

        (17)
           a
          code
          indicating the documentation style (i.e. full, alternative, etc.); 

        

        (18) the
          number of times during the twelve (12) month period preceding the related
          Closing Date that any Monthly Payment has been received after the month
          of its
          scheduled due date;

        

        (19) the
          date
          on which the first payment is or was due; 

        

        
          	(20)  	
                  a
                    code indicating whether or not the Mortgage Loan is the subject
                    of a
                    Primary Mortgage Insurance Policy and the name of the related
                    insurance
                    carrier; 

                

        

        

        (21)
           a
          code
          indicating whether or not the Mortgage Loan is currently convertible and
          the
          conversion spread; 

        

        (22)
           the
          last
          Due Date on which a Monthly Payment was actually applied to the unpaid
          principal
          balance of the Mortgage Loan.

        

        (23)
           product
          type (i.e. fixed, adjustable, 3/1, 5/1, etc.); 

        

        
          	(24) 	
                  credit
                    score and/or mortgage score, if
                    applicable;

                

        

        

        (25) a
          code
          indicating whether or not the Mortgage Loan is the subject of a Lender
          Primary
          Mortgage Insurance Policy and the name of the related insurance carrier
          and the
          Lender Paid Mortgage Insurance Rate; 

        

        (26)a
          code
          indicating whether or not the Mortgage Loan has a prepayment penalty and
          if so,
          the amount and term thereof; and

        

        (27) the
          Current Appraised Value of the Mortgage Loan and Current LTV, if
          applicable.

        

        With
          respect to the Mortgage Loans in the aggregate, the Mortgage Loan Schedule
          attached to the related Term Sheet shall set forth the following information,
          as
          of the related Cut-off Date:

        

        (1) the
          number of Mortgage Loans;

        

        (2) the
          current aggregate outstanding principal balance of the Mortgage
          Loans;

        

        (3) the
          weighted average Mortgage Interest Rate of the Mortgage Loans; 

        

        (4) the
          weighted average maturity of the Mortgage Loans; and

        

        (5)
           the
          weighted average months to next Adjustment Date;

         

        Mortgage
          Note:
          The
          note or other evidence of the indebtedness of a Mortgagor secured by a
          Mortgage.

        

        Mortgaged
          Property:
          The
          underlying real property securing repayment of a Mortgage Note, consisting
          of a
          single parcel of real estate considered to be real estate under the laws
          of the
          state in which such real property is located which may include condominium
          units
          and planned unit developments, improved by a residential dwelling; except
          that
          with respect to real property located in jurisdictions in which the use
          of
          leasehold estates for residential properties is a widely-accepted practice,
          a
          leasehold estate of the Mortgage, the term of which is equal to or longer
          than
          the term of the Mortgage. 

        

        Mortgagor:
          The
          obligor on a Mortgage Note. 

        

        Nonrecoverable
          Advance:
          Any
          portion of a Monthly Advance or Servicing Advance previously made or proposed
          to
          be made by the Company pursuant to this Agreement, that, in the good faith
          judgment of the Company, will not or, in the case of a proposed advance,
          would
          not, be ultimately recoverable by it from the related Mortgagor or the
          related
          Liquidation Proceeds, Insurance Proceeds, Condemnation Proceeds or otherwise
          with respect to the related Mortgage Loan.

        

        OCC:
          Office
          of the Comptroller of the Currency, or any successor thereto.

        

        Officers'
          Certificate:
          A
          certificate signed by the Chairman of the Board, the Vice Chairman of the
          Board,
          the President, a Senior Vice President or a Vice President or by the Treasurer
          or the Secretary or one of the Assistant Treasurers or Assistant Secretaries
          of
          the Company, and delivered to the Purchaser as required by this
          Agreement.

        

        Opinion
          of Counsel:
          A
          written opinion of counsel, who may be an employee of the party on behalf
          of
          whom the opinion is being given, reasonably acceptable to the
          Purchaser.

        

        Origination
          Date:
          The
          date on which a Mortgage Loan funded, which date shall not, in connection
          with a
          Refinanced Mortgage Loan, be the date of the funding of the debt being
          refinanced, but rather the closing of the debt currently outstanding under
          the
          terms of the Mortgage Loan Documents. 

        

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

        

        Periodic
          Rate Cap:
          As to
          each adjustable rate Mortgage Loan, the maximum increase or decrease in
          the
          Mortgage Interest Rate on any Adjustment Date, as set forth in the related
          Mortgage Note and the related Mortgage Loan Schedule.

        

        Permitted
          Investments:
          Any one
          or more of the following obligations or securities:

        

        (i) direct
          obligations of, and obligations fully guaranteed 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; 

        

        
          	 	
                  (ii)
                    (a) demand or time deposits, federal funds or bankers' acceptances
                    issued
                    by any depository institu-tion or trust company 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 banking authorities,
                    provided that the commercial paper and/or the short-term deposit
                    rating
                    and/or the long-term unsecured debt obligations or deposits of
                    such
                    depository institution or trust company at the time of such investment
                    or
                    contractual commitment providing for such investment are rated
                    in one of
                    the two highest rating categories by each Rating Agency and (b)
                    any other
                    demand or time deposit or certificate of deposit that is fully
                    insured by
                    the FDIC;

                

        

        

        
          	 	
                  (iii)
                    repurchase obligations with a term not to exceed thirty (30)
                    days and with
                    respect to (a) any security described in clause (i) above and
                    entered into
                    with a depository institution or trust company (acting as principal)
                    described in clause (ii)(a) above;

                

        

        

        
          	 	
                  (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 that are rated in one of the two highest rating
                    categories by each Rating Agency at the time of such in-vestment
                    or
                    contractual commitment providing for such investment; provided,
                    however,
                    that securities issued by any particular corporation will not
                    be Permitted
                    Investments to the extent that investments therein will cause
                    the then
                    outstanding principal amount of secur-ities issued by such corporation
                    and
                    held as Permitted Investments to exceed 10% of the aggregate
                    outstand-ing
                    principal balances of all of the Mortgage Loans and Permitted
                    Investments;

                

        

        

        
          	 	
                  (v)
                    commercial paper (including both non-interest-bearing discount
                    obligations
                    and interest-bearing obliga-tions payable on demand or on a specified
                    date
                    not more than one year after the date of issuance there-of) which
                    are
                    rated in one of the two highest rating categories by each Rating
                    Agency at
                    the time of such investment;

                

        

        

        
          	 	
                  (vi)
                    any other demand, money market or time deposit, obligation, security
                    or
                    investment as may be acceptable to each Rating Agency as evidenced
                    in
                    writing by each Rating Agency; and

                

        

        

        
          	 	
                  (vii)
                    any money market funds the collateral of which consists of obligations
                    fully guaranteed by the United States of America or any agency
                    or
                    instru-ment-al-ity of the United States of America the obligations
                    of
                    which are backed by the full faith and credit of the United States
                    of
                    America (which may include repurchase obligations secured by
                    collateral
                    described in clause (i)) and other securities and which money
                    market funds
                    are rated in one of the two highest rating categories by each
                    Rating
                    Agency. 

                

        

        

        provided,
          however,
          that no
          instrument or security shall be a Permitted Investment if such instrument
          or
          security evidences a right to receive only interest payments with respect
          to the
          ob-li-ga-tions underlying such instrument or if such security provides
          for
          payment of both principal and interest with a yield to matur-ity in excess
          of
          120% of the yield to maturity at par or if such investment or security
          is
          purchased at a price greater than par.

        

        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.

        

        Prepayment
          Interest Shortfall:
          With
          respect to any Remittance Date, for each Mortgage Loan that was the subject
          of a
          Principal Prepayment during the related Prepayment Period, an amount equal
          to
          the excess of one month’s interest at the applicable Mortgage Loan Remittance
          Rate on the amount of such Principal Prepayment over the amount of interest
          (adjusted to the Mortgage Loan Remittance Rate) actually paid by the related
          Mortgagor with respect to such Prepayment Period.

        

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

        

        Primary
          Mortgage Insurance Policy:
          Each
          primary policy of mortgage insurance represented to be in effect pursuant
          to
          Section 3.02(hh), or any replacement policy therefor obtained by the Company
          pursuant to Section 4.08.

        

        Prime
          Rate:
          The
          prime rate announced to be in effect from time to time as published as
          the
          average rate in the Wall Street Journal (Northeast Edition).

        

        Principal
          Prepayment:
          Any
          payment or other recovery of principal on a Mortgage Loan full or partial
          which
          is received in advance of its scheduled Due Date, including any prepayment
          penalty or premium thereon and which is not accompanied by an amount of
          interest
          representing scheduled interest due on any date or dates in any month or
          months
          subsequent to the month of prepayment. 

         

        Purchase
          Price:
          As
          defined in Section 2.02.

        

        Purchaser:
          EMC
          Mortgage Corporation, its successors in interest and assigns.

        

        Qualified
          Appraiser:
          An
          appraiser, duly appointed by the Company, who had no interest, direct or
          indirect in the related Mortgaged Property or in any loan made on the security
          thereof, and whose compensation is not affected by the approval or disapproval
          of the Mortgage Loan, and such appraiser and the appraisal made by such
          appraiser both satisfy the requirements of Title XI of FIRREA and the
          regulations promulgated thereunder and the requirements of Fannie Mae,
          all as in
          effect on the date the Mortgage Loan was originated.

        

        Qualified
          Insurer:
          An
          insurance company duly qualified as such under the laws of the states in
          which
          the related Mortgaged Property is located, duly authorized and licensed
          in such
          states to transact the applicable insurance business and to write the insurance
          provided, approved as an insurer by Fannie Mae or FHLMC. 

        

        Rating
          Agency:
          Standard & Poor's, Fitch, Inc. or, in the event that some or all of the
          ownership of the Mortgage Loans is evidenced by mortgage-backed securities,
          the
          nationally recognized rating agencies issuing ratings with respect to such
          securities, if any.

         

        Refinanced
          Mortgage Loan:
          A
          Mortgage Loan which was made to a Mortgagor who owned the Mortgaged Property
          prior to the origination of such Mortgage Loan and the proceeds of which
          were
          used in whole or part to satisfy an existing mortgage.

        

        REMIC:
          A "real
          estate mortgage investment conduit," as such term is defined in Section
          860D of
          the Code.

        

        REMIC
          Provisions:
          The
          provisions of the federal income tax law relating to REMICs, which appear
          at
          Sections 860A through 860G of the Code, and the related provisions and
          regulations promulgated thereunder, as the foregoing may be in effect from
          time
          to time.

        

        Remittance
          Date:
          The
          18th day of any month, beginning with the First Remittance Date, or if
          such 18th
          day is not a Business Day, the first Business Day immediately preceding
          such
          18th day.

        

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

        

        REO
          Disposition Proceeds:
          Amounts
          received by the Company in connection with a related REO
          Disposition.

        

        REO
          Property:
          A
          Mortgaged Property acquired by the Company on behalf of the Purchaser as
          described in Section 4.13.

        

        Repurchase
          Price:
          With
          respect to any Mortgage Loan, a price equal to (i) the product of the greater
          of
          100% or the percentage of par as stated in the Confirmation multiplied
          by the
          Stated Principal
          Balance
          of such Mortgage Loan on the repurchase date, plus
          (ii)
          interest on such outstanding principal balance at the Mortgage Loan Remittance
          Rate from the last date through which interest has been paid and distributed
          to
          the Purchaser to the end of the month of repurchase, plus, (iii) third
          party
          expenses incurred in connection with the transfer of the Mortgage Loan
          being
          repurchased; less amounts received or advanced in respect of such repurchased
          Mortgage Loan which are being held in the Custodial Account for distribution
          in
          the month of repurchase.

        

        SAIF:
          The
          Savings Association Insurance Fund, or any successor thereto.

        

        Sales
          Price: With
          respect to any Mortgage Loan the proceeds of which were used by the Mortgagor
          to
          acquire the related Mortgaged Property, the amount paid by the related
          Mortgagor
          for such Mortgaged Property.

        

        Seller:
           First
          Horizon Home Loan Corporation, its successors in interest and assigns,
          as
          permitted by this Agreement.

        

        Servicer:
          First
          Tennessee Mortgage Services, Inc., its successors in interest and assigns,
          as
          permitted by this Agreement.

        

        Servicing
          Advances:
          All
          customary, reasonable and necessary "out of pocket" costs and expenses
          (including reasonable attorneys' fees and disbursements) incurred in the
          performance by the Company of its servicing obligations, including, but
          not
          limited to, the cost of (a) the preservation, restoration and protection
          of the
          Mortgaged Property, (b) any enforcement, administrative or judicial proceedings,
          or any legal work or advice specifically related to servicing the Mortgage
          Loans, including but not limited to, foreclosures, bankruptcies, condemnations,
          drug seizures, elections, foreclosures by subordinate or superior lienholders,
          and other legal actions incidental to the servicing of the Mortgage Loans
          (provided that such expenses are reasonable and that the Company specifies
          the
          Mortgage Loan(s) to which such expenses relate and, upon Purchaser’s request,
          provides documentation supporting such expense (which documentation would
          be
          acceptable to Fannie Mae), and provided further that any such enforcement,
          administrative or judicial proceeding does not arise out of a breach of
          any
          representation, warranty or covenant of the Company hereunder), (c) the
          management and liquidation of the Mortgaged Property if the Mortgaged Property
          is acquired in full or partial satisfaction of the Mortgage, (d) taxes,
          assessments, water rates, sewer rates and other charges which are or may
          become
          a lien upon the Mortgaged Property, and Primary Mortgage Insurance Policy
          premiums and fire and hazard insurance coverage, (e) any expenses reasonably
          sustained by the Company with respect to the liquidation of the Mortgaged
          Property in accordance with the terms of this Agreement and (f) compliance
          with
          the obligations under Section 4.08.

        

        Servicing
          Fee:
          With
          respect to each Mortgage Loan, the amount of the annual fee the Purchaser
          shall
          pay to the Company, which shall, for a period of one full month, be equal
          to
          one-twelfth of the product of (a) the Servicing Fee Rate and (b) the outstanding
          principal balance of such Mortgage Loan. Such fee shall be payable monthly,
          computed on the basis of the same principal amount and period respecting
          which
          any related interest payment on a Mortgage Loan is computed. The obligation
          of
          the Purchaser to pay the Servicing Fee is limited to, and the Servicing
          Fee is
          payable solely from, the interest portion of such Monthly Payment collected
          by
          the Company, or as otherwise provided under Section 4.05 and in accordance
          with
          the Fannie Mae Guide(s). Any fee payable to the Company for administrative
          services related to any REO Property as described in Section 4.13 shall
          be
          payable from Liquidation Proceeds of the related REO Property.

        

        Servicing
          Fee Rate:
          As set
          forth in the Term Sheet.

        

        Servicing
          File:
          With
          respect to each Mortgage Loan, the file retained by the Company consisting
          of
          originals of all documents in the Mortgage File which are not delivered
          to the
          Purchaser and copies of the Mortgage Loan Documents listed in Exhibit A,
          the
          originals of which are delivered to the Purchaser or its designee pursuant
          to
          Section 2.04.

        

        Servicing
          Officer:
          Any
          officer of the Company involved in, or responsible for, the administration
          and
          servicing of the Mortgage Loans whose name appears on a list of servicing
          officers furnished by the Company to the Purchaser upon request, as such
          list
          may from time to time be amended.

        

        Stated
          Principal Balance:
          As to
          each Mortgage Loan as of any date of determination, (i) the principal balance
          of
          such Mortgage Loan at the Cut-off Date after giving effect to payments
          of
          principal due on or before such date, whether or not received, minus (ii)
          all
          amounts previously distributed to the Purchaser with respect to the Mortgage
          Loan representing payments or recoveries of principal or advances in lieu
          thereof.

        

        Subservicer:
          Any
          subservicer which is subservicing the Mortgage Loans pursuant to a Subservicing
          Agreement. Any subservicer shall meet the qualifications set forth in Section
          4.01.

        

        Subservicing
          Agreement:
          An
          agreement between the Company and a Subservicer, if any, for the servicing
          of
          the Mortgage Loans.

        

        Term
          Sheet:
          A
          supplemental agreement in the form attached hereto as Exhibit I which shall
          be
          executed and delivered by the Company and the Purchaser to provide for
          the sale
          and servicing pursuant to the terms of this Agreement of the Mortgage Loans
          listed on Schedule I attached thereto, which supplemental agreement shall
          contain certain specific information relating to such sale of such Mortgage
          Loans and may contain additional covenants relating to such sale of such
          Mortgage Loans.

        

        

        ARTICLE
          II

        

        PURCHASE
          OF MORTGAGE LOANS; SERVICING OF MORTGAGE LOANS;

        RECORD
          TITLE AND POSSESSION OF MORTGAGE FILES;

        BOOKS
          AND RECORDS; CUSTODIAL AGREEMENT;

        DELIVERY
          OF MORTGAGE LOAN DOCUMENTS

        

        Section
          2.01 Agreement
          to Purchase.

        

        The
          Company agrees to sell and the Purchaser agrees to purchase the Mortgage
          Loans
          having an aggregate Stated Principal Balance on the related Cut-off Date
          set
          forth in the related Term Sheet in an amount as set forth in the Confirmation,
          or in such other amount as agreed by the Purchaser and the Company as evidenced
          by the actual aggregate Stated Principal Balance of the Mortgage Loans
          accepted
          by the Purchaser on the related Closing Date, with servicing retained by
          the
          Company. The Company shall deliver the related Mortgage Loan Schedule attached
          to the related Term Sheet for the Mortgage Loans to be purchased on the
          related
          Closing Date to the Purchaser at least two (2) Business Days prior to the
          related Closing Date. The Mortgage Loans shall be sold pursuant to this
          Agreement, and the related Term Sheet shall be executed and delivered on
          the
          related Closing Date.

        

        Section
          2.02 Purchase
          Price.

        

        The
          Purchase Price for each Mortgage Loan shall be the percentage of par as
          stated
          in the Confirmation (subject to adjustment as provided therein), multiplied
          by
          the Stated Principal Balance, as of the related Cut-off Date, of the Mortgage
          Loan listed on the related Mortgage Loan Schedule attached to the related
          Term
          Sheet, after application of scheduled payments of principal due on or before
          the
          related Cut-off Date whether or not collected. 

        

        In
          addition to the Purchase Price as described above, the Purchaser shall
          pay to
          the Company, at closing, accrued interest on the Stated Principal Balance
          of
          each Mortgage Loan as of the related Cut-off Date at the Mortgage Loan
          Remittance Rate of each Mortgage Loan from the related Cut-off Date through
          the
          day prior to the related Closing Date, inclusive.

        

        The
          Purchase Price plus accrued interest as set forth in the preceding paragraph
          shall be paid on the related Closing Date by wire transfer of immediately
          available funds.

        

        Purchaser
          shall be entitled to (1) all scheduled principal due after the related
          Cut-off
          Date, (2) all other recoveries of principal collected on or after the related
          Cut-off Date (provided, however, that all scheduled payments of principal
          due on
          or before the related Cut-off Date and collected by the Company or any
          successor
          servicer after the related Cut-off Date shall belong to the Company), and
          (3)
          all payments of interest on the Mortgage Loans net of applicable Servicing
          Fees
          (minus that portion of any such payment which is allocable to the period
          prior
          to the related Cut-off Date). The outstanding principal balance of each
          Mortgage
          Loan as of the related Cut-off Date is determined after application of
          payments
          of principal due on or before the related Cut-off Date whether or not collected,
          together with any unscheduled principal prepayments collected prior to
          the
          related Cut-off Date; provided, however, that payments of scheduled principal
          and interest prepaid for a Due Date beyond the related Cut-off Date shall
          not be
          applied to the principal balance as of the related Cut-off Date. Such prepaid
          amounts shall be the property of the Purchaser. The Company shall deposit
          any
          such prepaid amounts into the Custodial Account, which account is established
          for the benefit of the Purchaser for subsequent remittance by the Company
          to the
          Purchaser.

        

        Section
          2.03 Servicing
          of Mortgage Loans.

        

        Simultaneously
          with the execution and delivery of each Term Sheet, the Company does hereby
          agree to directly service the Mortgage Loans listed on the related Mortgage
          Loan
          Schedule attached to the related Term Sheet subject to the terms of this
          Agreement and the related Term Sheet. The rights of the Purchaser to receive
          payments with respect to the related Mortgage Loans shall be as set forth
          in
          this Agreement.

        

        Section
          2.04 Record
          Title and Possession of Mortgage Files; Maintenance of Servicing
          Files.

        

        As
          of the
          related Closing Date, the Company sold, transferred, assigned, set over
          and
          conveyed to the Purchaser, without recourse, on a servicing retained basis,
          and
          the Company hereby acknowledges that the Purchaser has, but subject to
          the terms
          of this Agreement and the related Term Sheet, all the right, title and
          interest
          of the Company in and to the Mortgage Loans. Company will deliver the Mortgage
          Files to the Custodian designated by Purchaser, on or before the related
          Closing
          Date, at the expense of the Company. The Company shall maintain a Servicing
          File
          consisting of a copy of the contents of each Mortgage File and the originals
          of
          the documents in each Mortgage File not delivered to the Purchaser. The
          Servicing File shall contain all documents necessary to service the Mortgage
          Loans. The possession of each Servicing File by the Company is at the will
          of
          the Purchaser, for the sole purpose of servicing the related Mortgage Loan,
          and
          such retention and possession by the Company is in a custodial capacity
          only.
          From the related Closing Date, the ownership of each Mortgage Loan, including
          the Mortgage Note, the Mortgage, the contents of the related Mortgage File
          and
          all rights, benefits, proceeds and obligations arising therefrom or in
          connection therewith, has been vested in the Purchaser. All rights arising
          out
          of the Mortgage Loans including, but not limited to, all funds received
          on or in
          connection with the Mortgage Loans and all records or documents with respect
          to
          the Mortgage Loans prepared by or which come into the possession of the
          Company
          shall be received and held by the Company in trust for the benefit of the
          Purchaser as the owner of the Mortgage Loans. Any portion of the Mortgage
          Files
          retained by the Company shall be appropriately identified in the Company's
          computer system to clearly reflect the ownership of the Mortgage Loans
          by the
          Purchaser. The Company shall release its custody of the contents of the
          Mortgage
          Files only in accordance with written instructions of the Purchaser, except
          when
          such release is required as incidental to the Company's servicing of the
          Mortgage Loans or is in connection with a repurchase of any Mortgage Loan
          or
          Loans with respect thereto pursuant to this Agreement and the related Term
          Sheet, such written instructions shall not be required.

        

        Section
          2.05  Books
          and Records.

        

        The
          sale
          of each Mortgage Loan shall be reflected on the Company's balance sheet
          and
          other financial statements as a sale of assets by the Company. The Company
          shall
          be responsible for maintaining, and shall maintain, a complete set of books
          and
          records for the Mortgage Loans that shall be appropriately identified in
          the
          Company's computer system to clearly reflect the ownership of the Mortgage
          Loan
          by the Purchaser. In particular, the Company shall maintain in its possession,
          available for inspection by the Purchaser, or its designee and shall deliver
          to
          the Purchaser upon demand, evidence of compliance with all federal, state
          and
          local laws, rules and regulations, and requirements of Fannie Mae or FHLMC,
          as
          applicable, including but not limited to documentation as to the method
          used in
          determining the applicability of the provisions of the Flood Disaster Protection
          Act of 1973, as amended, to the Mortgaged Property, documentation evidencing
          insurance coverage of any condominium project as required by Fannie Mae
          or
          FHLMC, and periodic inspection reports as required by Section 4.13. To
          the
          extent that original documents are not required for purposes of realization
          of
          Liquidation Proceeds or Insurance Proceeds, documents maintained by the
          Company
          may be in the form of microfilm or microfiche.

        

        The
          Company shall maintain with respect to each Mortgage Loan and shall make
          available for inspection by any Purchaser or its designee the related Servicing
          File during the time the Purchaser retains ownership of a Mortgage Loan
          and
          thereafter in accordance with applicable laws and regulations.

        

        In
          addition to the foregoing, Company shall provide to any supervisory agents
          or
          examiners that regulate Purchaser, including but not limited to, the OTS,
          the
          FDIC and other similar entities, access, during normal business hours,
          upon
          reasonable advance notice to Company and without cost to Company or such
          supervisory agents or examiners, to any documentation regarding the Mortgage
          Loans that may be required by any applicable regulator.

        

        Section
          2.06. Transfer
          of Mortgage Loans.

        

        The
          Company shall keep at its servicing office books and records in which,
          subject
          to such reasonable regulations as it may prescribe, the Company shall note
          transfers of Mortgage Loans. No transfer of a Mortgage Loan may be made
          unless
          such transfer is in compliance with the terms hereof. For the purposes
          of this
          Agreement, the Company shall be under no obligation to deal with any person
          with
          respect to this Agreement or any Mortgage Loan unless a notice of the transfer
          of such Mortgage Loan has been delivered to the Company in accordance with
          this
          Section 2.06 and the books and records of the Company show such person
          as the
          owner of the Mortgage Loan. The Purchaser may, subject to the terms of
          this
          Agreement, sell and transfer one or more of the Mortgage Loans, provided,
          however, that the transferee will not be deemed to be a Purchaser hereunder
          binding upon the Company unless such transferee shall agree in writing
          to be
          bound by the terms of this Agreement and an original counterpart of the
          instrument of transfer in an Assignment and Assumption of this Agreement
          substantially in the form of Exhibit D hereto executed by the transferee
          shall
          have been delivered to the Company. The Purchaser also shall advise the
          Company
          of the transfer. Upon receipt of notice of the transfer, the Company shall
          mark
          its books and records to reflect the ownership of the Mortgage Loans of
          such
          assignee, and the previous Purchaser shall be released from its obligations
          hereunder with respect to the Mortgage Loans sold or transferred.

        

        Section
          2.07 Delivery
          of Mortgage Loan Documents.

        

        The
          Company shall deliver and release to the Purchaser or its designee the
          Mortgage
          Loan Documents in accordance with the terms of this Agreement and the related
          Term Sheet. The documents enumerated as items (1), (2), (3), (4), (5),
          (6), (7),
          (8), (9) and (16) in Exhibit A hereto shall be delivered by the Company
          to the
          Purchaser or its designee no later than three (3) Business Days prior to
          the
          related Closing Date pursuant to a bailee letter agreement. All other documents
          in Exhibit A hereto, together with all other documents executed in connection
          with the Mortgage Loan that Company may have in its possession, shall be
          retained by the Company in trust for the Purchaser. If the Company cannot
          deliver the original recorded Mortgage Loan Documents or the original policy
          of
          title insurance, including riders and endorsements thereto, on the related
          Closing Date, the Company shall, promptly upon receipt thereof and in any
          case
          not later than 120 days from the related Closing Date, deliver such original
          documents, including original recorded documents, to the Purchaser or its
          designee (unless the Company is delayed in making such delivery by reason
          of the
          fact that such documents shall not have been returned by the appropriate
          recording office). If delivery is not completed within 120 days solely
          due to
          delays in making such delivery by reason of the fact that such documents
          shall
          not have been returned by the appropriate recording office, Company shall
          deliver such document to Purchaser, or its designee, within such time period
          as
          specified in a Company's Officer's Certificate. In the event that documents
          have
          not been received by the date specified in the Company's Officer's Certificate,
          a subsequent Company's Officer's Certificate shall be delivered by such
          date
          specified in the prior Company's Officer's Certificate, stating a revised
          date
          for receipt of documentation. The procedure shall be repeated until the
          documents have been received and delivered. If delivery is not completed
          within
          180 days solely due to delays in making such delivery by reason of the
          fact that
          such documents shall not have been returned by the appropriate recording
          office,
          the Company shall continue to use its best efforts to effect delivery as
          soon as
          possible thereafter, provided that if such documents are not delivered
          by the
          270th day from the date of the related Closing Date, the Company shall
          repurchase the related Mortgage Loans at the Repurchase Price in accordance
          with
          Section 3.03 hereof.

        

        The
          Company shall pay all initial recording fees, if any, for the assignments
          of
          mortgage and any other fees in connection with the transfer of all original
          documents to the Purchaser or its designee. Company shall prepare, in recordable
          form, all assignments of mortgage necessary to assign the Mortgage Loans
          to
          Purchaser, or its designee. Company shall be responsible for recording
          the
          assignments of mortgage.

        

        Company
          shall provide an original or duplicate original of the title insurance
          policy to
          Purchaser or its designee within ninety (90) days of the receipt of the
          recorded
          documents (required for issuance of such policy) from the applicable recording
          office.

        

        Any
          review by the Purchaser, or its designee, of the Mortgage Files shall in
          no way
          alter or reduce the Company's obligations hereunder.

        

        If
          the
          Purchaser or its designee discovers any defect with respect to a Mortgage
          File,
          the Purchaser shall, or shall cause its designee to, give written specification
          of such defect to the Company which may be given in the exception report
          or the
          certification delivered pursuant to this Section 2.07, or otherwise in
          writing
          and the Company shall cure or repurchase such Mortgage Loan in accordance
          with
          Section 3.03.

        

        The
          Company shall forward to the Purchaser, or its designee, original documents
          evidencing an assumption, modification, consolidation or extension of any
          Mortgage Loan entered into in accordance with Section 4.01 or 6.01 within
          one
          week of their execution; provided, however, that the Company shall provide
          the
          Purchaser, or its designee, with a certified true copy of any such document
          submitted for recordation within one week of its execution, and shall provide
          the original of any document submitted for recordation or a copy of such
          document certified by the appropriate public recording office to be a true
          and
          complete copy of the original within sixty (60) days of its submission
          for
          recordation.

        

        From
          time
          to time the Company may have a need for Mortgage Loan Documents to be released
          from Purchaser, or its designee. Purchaser shall, or shall cause its designee,
          upon the written request of the Company, within ten (10) Business Days,
          deliver
          to the Company, any requested documentation previously delivered to Purchaser
          as
          part of the Mortgage File, provided that such documentation is promptly
          returned
          to Purchaser, or its designee, when the Company no longer requires possession
          of
          the document, and provided that during the time that any such documentation
          is
          held by the Company, such possession is in trust for the benefit of Purchaser.
          Company shall indemnify Purchaser, and its designee, from and against any
          and
          all losses, claims, damages, penalties, fines, forfeitures, costs and expenses
          (including court costs and reasonable attorney's fees) resulting from or
          related
          to the loss, damage, or misplacement of any documentation delivered to
          Company
          pursuant to this paragraph.

        

        Section
          2.08 Quality
          Control Procedures.

        

        The
          Company must have an internal quality control program that verifies, on
          a
          regular basis, the existence and accuracy of the legal documents, credit
          documents, property appraisals, and underwriting decisions. The program
          must be
          capable of evaluating and monitoring the overall quality of its loan production
          and servicing activities. The program is to ensure that the Mortgage Loans
          are
          originated and serviced in accordance with prudent mortgage banking practices
          and accounting principles; guard against dishonest, fraudulent, or negligent
          acts; and guard against errors and omissions by officers, employees, or
          other
          authorized persons.

        

        Section
          2.09 Near-term
          Principal Prepayments in Full; Near Term Payment Defaults

        

        In
          the
          event any Principal Prepayment in full is made by a Mortgagor on or prior
          to
          three months after the related Closing Date, the Company shall remit to
          the
          Purchaser an amount equal to the excess, if any, of the Purchase Price
          Percentage over par multiplied by the amount of such Principal Prepayment
          in
          full. Such remittance shall be made by the Company to Purchaser not later
          than
          five (5) Business Days after notice to the Company.

        

        In
          the
          event either of the first three (3) scheduled Monthly Payments which are
          due
          under any Mortgage Loan after the related Cut-off Date are not made during
          the
          month in which such Monthly Payments are due, then not later than five
          (5)
          Business Days after notice to the Company by Purchaser (and at Purchaser’s sole
          option), the Company, shall repurchase such Mortgage Loan from the Purchaser
          pursuant to the repurchase provisions contained in this Subsection
          3.03.

        

        Section
          2.10  Modification
          of Obligations. 

        

        Purchaser
          may, without any notice to Company, extend, compromise, renew, release,
          change,
          modify, adjust or alter, by operation of law or otherwise, any of the
          obligations of the Mortgagors or other persons obligated under a Mortgage
          Loan
          without releasing or otherwise affecting the obligations of Company under
          this
          Agreement, or with respect to such Mortgage Loan, except to the extent
          Purchaser’s extension, compromise, release, change, modification, adjustment, or
          alteration affects Company’s ability to collect the Mortgage Loan or realize on
          the security of the Mortgage, but then only to the extent such action has
          such
          effect.

         

        ARTICLE
          III

        

        REPRESENTATIONS
          AND WARRANTIES OF

        THE
          COMPANY; REPURCHASE; REVIEW OF MORTGAGE LOANS

        

        Section
          3.01 Representations
          and Warranties of the Company. 

        

        Each
          the
          Seller and Servicer represents, warrants and covenants to the Purchaser
          that, as
          of the related Closing Date or as of such date specifically provided
          herein:

        

        (a) The
          Company is a corporation, duly organized, validly existing and in good
          standing
          under the laws of the State of Kansas and has all licenses necessary to
          carry
          out its business as now being conducted, and is licensed and qualified
          to
          transact business in and is in good standing under the laws of each state
          in
          which any Mortgaged Property is located or is otherwise exempt under applicable
          law from such licensing or qualification or is otherwise not required under
          applicable law to effect such licensing or qualification and no demand
          for such
          licensing or qualification has been made upon such Company by any such
          state,
          and in any event such Company is in compliance with the laws of any such
          state
          to the extent necessary to ensure the enforceability of each Mortgage Loan
          and
          the servicing of the Mortgage Loans in accordance with the terms of this
          Agreement. The Servicer is a wholly owned subsidiary of the Seller;

         

        (b)
          The
          Company has the full power and authority and legal right to hold, transfer
          and
          convey each Mortgage Loan, to sell each Mortgage Loan and to execute, deliver
          and perform, and to enter into and consummate all transactions contemplated
          by
          this Agreement and the related Term Sheet and to conduct its business as
          presently conducted, has duly authorized the execution, delivery and performance
          of this Agreement and the related Term Sheet and any agreements contemplated
          hereby, has duly executed and delivered this Agreement and the related
          Term
          Sheet, and any agreements contemplated hereby, and this Agreement and the
          related Term Sheet and each Assignment to the Purchaser and any agreements
          contemplated hereby, constitutes a legal, valid and binding obligation
          of the
          Company, enforceable against it in accordance with its terms, and all requisite
          corporate action has been taken by the Company to make this Agreement and
          the
          related Term Sheet and all agreements contemplated hereby valid and binding
          upon
          the Company in accordance with their terms; 

        

        (c)
          Neither the execution and delivery of this Agreement and the related Term
          Sheet,
          nor the origination or purchase of the Mortgage Loans by the Company, the
          sale
          of the Mortgage Loans to the Purchaser, the consummation of the transactions
          contemplated hereby, or the fulfillment of or compliance with the terms
          and
          conditions of this Agreement and the related Term Sheet will conflict with
          any
          of the terms, conditions or provisions of the Company's charter or by-laws
          or
          materially conflict with or result in a material breach of any of the terms,
          conditions or provisions of any legal restriction or any agreement or instrument
          to which the Company is now a party or by which it is bound, or constitute
          a
          default or result in an acceleration under any of the foregoing, or result
          in
          the material violation of any law, rule, regulation, order, judgment or
          decree
          to which the Company or its properties are subject, or impair the ability
          of the
          Purchaser to realize on the Mortgage Loans.

        

        (d)
          There
          is no litigation, suit, proceeding or investigation pending or, to the
          best of
          Company’s knowledge, threatened, or any order or decree outstanding, with
          respect to the Company which, either in any one instance or in the aggregate,
          is
          reasonably likely to have a material adverse effect on the sale of the
          Mortgage
          Loans, the execution, delivery, performance or enforceability of this Agreement
          and the related Term Sheet, or which is reasonably likely to have a material
          adverse effect on the financial condition of the Company.

        

        (e)
          No
          consent, approval, authorization or order of any court or governmental
          agency or
          body is required for the execution, delivery and performance by the Company
          of
          or compliance by the Company with this Agreement or the related Term Sheet,
          or
          the sale of the Mortgage Loans and delivery of the Mortgage Files to the
          Purchaser or the consummation of the transactions contemplated by this
          Agreement
          or the related Term Sheet, except for consents, approvals, authorizations
          and
          orders which have been obtained;

        

        (f)
          The
          consummation of the transactions contemplated by this Agreement or the
          related
          Term Sheet is in the ordinary course of business of the Company and Company,
          and
          the transfer, assignment and conveyance of the Mortgage Notes and the Mortgages
          by the Company pursuant to this Agreement or the related Term Sheet are
          not
          subject to bulk transfer or any similar statutory provisions in effect
          in any
          applicable jurisdiction;

        

        (g)
          The
          origination and servicing practices used by the Company and any prior originator
          or servicer with respect to each Mortgage Note and Mortgage have been legal
          and
          in accordance with applicable laws and regulations and the Mortgage Loan
          Documents, and in all material respects proper and prudent in the mortgage
          origination and servicing business. Each Mortgage Loan has been serviced
          in all
          material respects with Accepted Servicing Practices. With respect to escrow
          deposits and payments that the Company, on behalf of an investor, is entitled
          to
          collect, all such payments are in the possession of, or under the control
          of,
          the Company, and there exist no deficiencies in connection therewith for
          which
          customary arrangements for repayment thereof have not been made. All escrow
          payments have been collected in full compliance with state and federal
          law and
          the provisions of the related Mortgage Note and Mortgage. As to any Mortgage
          Loan that is the subject of an escrow, escrow of funds is not prohibited
          by
          applicable law and has been established in an amount sufficient to pay
          for every
          escrowed item that remains unpaid and has been assessed but is not yet
          due and
          payable. No escrow deposits or other charges or payments due under the
          Mortgage
          Note have been capitalized under any Mortgage or the related Mortgage
          Note;

        

        (h)
          The
          Company used no selection procedures that identified the Mortgage Loans
          as being
          less desirable or valuable than other comparable mortgage loans in the
          Company's
          portfolio at the related Cut-off Date; 

        

        (i) The
          Company will treat the sale of the Mortgage Loans to the Purchaser as a
          sale for
          reporting and accounting purposes and, to the extent appropriate, for federal
          income tax purposes; 

        

        (j) Company
          is an approved seller/servicer of residential mortgage loans for Fannie
          Mae,
          FHLMC and HUD, with such facilities, procedures and personnel necessary
          for the
          sound servicing of such mortgage loans. The Company is duly qualified,
          licensed,
          registered and otherwise authorized under all applicable federal, state
          and
          local laws, and regulations, if applicable, meets the minimum capital
          requirements set forth by the OCC, and is in good standing to sell mortgage
          loans to and service mortgage loans for Fannie Mae and FHLMC and no event
          has
          occurred which would make Company unable to comply with eligibility requirements
          or which would require notification to either Fannie Mae or FHLMC; 

        

        (k) The
          Company does not believe, nor does it have any cause or reason to believe,
          that
          it cannot perform each and every covenant contained in this Agreement or
          the
          related Term Sheet. The Company is solvent and the sale of the Mortgage
          Loans
          will not cause the Company to become insolvent. The sale of the Mortgage
          Loans
          is not undertaken with the intent to hinder, delay or defraud any of the
          Company's creditors;

        

        (l) No
          statement, tape, diskette, form, report or other document prepared by,
          or on
          behalf of, Company pursuant to this Agreement or the related Term Sheet
          or in
          connection with the transactions contemplated hereby, contains or will
          contain
          any statement that is or will be inaccurate or misleading in any material
          respect;

        

        (m)
           The
          Company acknowledges and agrees that the Servicing Fee represents reasonable
          compensation for performing such services and that the entire Servicing
          Fee
          shall be treated by the Company, for accounting and tax purposes, as
          compensation for the servicing and administration of the Mortgage Loans
          pursuant
          to this Agreement. In the opinion of Company, the consideration received
          by
          Company upon the sale of the Mortgage Loans to Purchaser under this Agreement
          and the related Term Sheet constitutes fair consideration for the Mortgage
          Loans
          under current market conditions. 

        

        (n)
           Company
          has delivered to the Purchaser financial statements of its parent, for
          its last
          two complete fiscal years. All such financial information fairly presents
          the
          pertinent results of operations and financial position for the period identified
          and has been prepared in accordance with GAAP consistently applied throughout
          the periods involved, except as set forth in the notes thereto. There has
          been
          no change in the business, operations, financial condition, properties
          or assets
          of the Company since the date of the Company’s financial information that would
          have a material adverse effect on its ability to perform its obligations
          under
          this Agreement;

        

        (o)
           The
          Company has not dealt with any broker, investment banker, agent or other
          person
          that may be entitled to any commission or compensation in connection with
          the
          sale of the Mortgage Loans; 

        

        Section
          3.02 Representations
          and Warranties as to Individual Mortgage Loans.

        

        References
          in this Section to percentages of Mortgage Loans refer in each case to
          the
          percentage of the aggregate Stated Principal Balance of the Mortgage Loans
          as of
          the related Cut-off Date, based on the outstanding Stated Principal Balances
          of
          the Mortgage Loans as of the related Cut-off Date, and giving effect to
          scheduled Monthly Payments due on or prior to the related Cut-off Date,
          whether
          or not received. References to percentages of Mortgaged Properties refer,
          in
          each case, to the percentages of expected aggregate Stated Principal Balances
          of
          the related Mortgage Loans (determined as described in the preceding sentence).
          The Company hereby represents and warrants to the Purchaser, as to each
          Mortgage
          Loan, as of the related Closing Date as follows:

        

              
          (a)
          The
          information set forth in the Mortgage Loan Schedule attached to the related
          Term
          Sheet is true, complete and correct in all material respects as of the
          related
          Cut-Off Date;

        

        (b) The
          Mortgage creates a valid, subsisting and enforceable first lien or a first
          priority ownership interest in an estate in fee simple in real property
          securing
          the related Mortgage Note subject to principles of equity, bankruptcy,
          insolvency and other laws of general application affecting the rights of
          creditors;

        

        (c)
          All
          payments due prior to the related Cut-off Date for such Mortgage Loan have
          been
          made as of the related Closing Date; the Mortgage Loan has not been dishonored;
          there are no material defaults under the terms of the Mortgage Loan; the
          Company
          has not advanced its own funds, or induced, solicited or knowingly received
          any
          advance of funds from a party other than the owner of the Mortgaged Property
          subject to the Mortgage, directly or indirectly, for the payment of any
          amount
          required by the Mortgage Loan. As of the related Closing Date, all of the
          Mortgage Loans will have an actual interest paid to date of their related
          Cut-off Date(or later) and will be due for the scheduled monthly payment
          next
          succeeding the Cut-off Date (or later), as evidenced by a posting to Company's
          servicing collection system. No payment under any Mortgage Loan is delinquent
          as
          of the related Closing Date nor has any scheduled payment been delinquent
          at any
          time during the twelve (12) months prior to the month of the related Closing
          Date. For purposes of this paragraph, a Mortgage Loan will be deemed delinquent
          if any payment due thereunder was not paid by the Mortgagor in the month
          such
          payment was due;

        

        (d)
          There
          are no defaults by Company in complying with the terms of the Mortgage,
          and all
          taxes, governmental assessments, insurance premiums, water, sewer and municipal
          charges, leasehold payments or ground rents which previously became due
          and
          owing have been paid, or escrow funds have been established in an amount
          sufficient to pay for every such escrowed item which remains unpaid and
          which
          has been assessed but is not yet due and payable;

        

        (e)
          The
          terms of the Mortgage Note and the Mortgage have not been impaired, waived,
          altered or modified in any respect, except by written instruments which
          have
          been recorded to the extent any such recordation is required by law, or,
          necessary to protect the interest of the Purchaser. No instrument of waiver,
          alteration or modification has been executed except in connection with
          a
          modification agreement and which modification agreement is part of the
          Mortgage
          File and the terms of which are reflected in the related Mortgage Loan
          Schedule,
          and no Mortgagor has been released, in whole or in part, from the terms
          thereof
          except in connection with an assumption agreement and which assumption
          agreement
          is part of the Mortgage File and the terms of which are reflected in the
          related
          Mortgage Loan Schedule; the substance of any such waiver, alteration or
          modification has been approved by the issuer of any related Primary Mortgage
          Insurance Policy and title insurance policy, to the extent required by
          the
          related policies;

        

        (f)
          The
          Mortgage Note and the Mortgage are not subject to any right of rescission,
          set-off, counterclaim or defense, including, without limitation, the defense
          of
          usury, nor will the operation of any of the terms of the Mortgage Note
          or the
          Mortgage, or the exercise of any right thereunder, render the Mortgage
          Note or
          Mortgage unenforceable, in whole or in part, or subject to any right of
          rescission, set-off, counterclaim or defense, including the defense of
          usury,
          and no such right of rescission, set-off, counterclaim or defense has been
          asserted with respect thereto; and as of the related Closing Date the Mortgagor
          was not a debtor in any state or federal bankruptcy or insolvency
          proceeding;

        

        (g)
          All
          buildings or other customarily insured improvements upon the Mortgaged
          Property
          are insured by a Qualified Insurer, against loss by fire, hazards of extended
          coverage and such other hazards as are provided for in the Fannie Mae or
          FHLMC
          Guide, as well as all additional requirements set forth in Section 4.10
          of this
          Agreement. All such standard hazard policies are in full force and effect
          and
          contain a standard mortgagee clause naming the Company and its successors
          in
          interest and assigns as loss payee and such clause is still in effect and
          all
          premiums due thereon have been paid. If required by the Flood Disaster
          Protection Act of 1973, as amended, the Mortgage Loan is covered by a flood
          insurance policy meeting the requirements of the current guidelines of
          the
          Federal Insurance Administration which policy conforms to Fannie Mae or
          FHLMC
          requirements, as well as all additional requirements set forth in Section
          4.10
          of this Agreement. Such policy was issued by a Qualified Insurer. The Mortgage
          obligates the Mortgagor thereunder to maintain all such insurance at the
          Mortgagor's cost and expense, and on the Mortgagor's failure to do so,
          authorizes the holder of the Mortgage to maintain such insurance at the
          Mortgagor's cost and expense and to seek reimbursement therefor from the
          Mortgagor. Neither the Company (nor any prior originator or servicer of
          any of
          the Mortgage Loans) nor any Mortgagor has engaged in any act or omission
          which
          has impaired or would impair the coverage of any such policy, the benefits
          of
          the endorsement provided for herein, or the validity and binding effect
          of
          either;

        

        (h)
          Any
          and all requirements of any federal, state or local law including, without
          limitation, usury, truth-in-lending, real estate settlement procedures,
          consumer
          credit protection, equal credit opportunity or disclosure laws applicable
          to the
          Mortgage Loan have been complied with in all material respects. None
          of
          the Mortgage Loans are (a) loans subject to 12 CFR Part 226.31, 12 CFR
          Part
          226.32 or 12 CFR Part 226.34 of Regulation Z, the regulation implementing
          TILA,
          which implements the Home Ownership and Equity Protection Act of 1994,
          as
          amended or (b) classified and/or defined as a “high cost”, "covered", or
“predatory” loan under any other state, federal or local law or regulation or
          ordinance, including, but not limited to, the States of Georgia and North
          Carolina and the City of New York. The
          Company maintains, and shall maintain, evidence of such compliance as required
          by applicable law or regulation and shall make such evidence available
          for
          inspection at the Company's office during normal business hours upon reasonable
          advance notice; 

        

        (i)
          The
          Mortgage has not been satisfied, canceled or subordinated, in whole or
          in part,
          or rescinded, and the Mortgaged Property has not been released from the
          lien of
          the Mortgage, in whole or in part nor has any instrument been executed
          that
          would effect any such release, cancellation, subordination or rescission.
          The
          Company has not waived the performance by the Mortgagor of any action,
          if the
          Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
          in default, nor has the Company waived any default resulting from any action
          or
          inaction by the Mortgagor;

        

        (j) The
          Mortgage is a valid, subsisting, enforceable and perfected first lien on
          the
          Mortgaged Property, including all buildings on the Mortgaged Property and
          all
          installations and mechanical, electrical, plumbing, heating and air conditioning
          systems affixed to such buildings, and all additions, alterations and
          replacements made at any time with respect to the foregoing securing the
          Mortgage Note's original principal balance subject to principles of equity,
          bankruptcy, insolvency and other laws of general application affecting
          the
          rights of creditors. The Mortgage and the Mortgage Note do not contain
          any
          evidence of any security interest or other interest or right thereto. Such
          lien
          is free and clear of all adverse claims, liens and encumbrances having
          priority
          over the first lien of the Mortgage subject only to (1) the lien of
          non-delinquent current real property taxes and assessments not yet due
          and
          payable, (2) covenants, conditions and restrictions, rights of way, easements
          and other matters of the public record as of the date of recording which
          are
          acceptable to mortgage lending institutions generally and either (A) which
          are
          referred to in the lender’s title insurance policy delivered to the originator
          or otherwise considered in the appraisal made for the originator of the
          Mortgage
          Loan, or (B) which do not adversely affect the residential use or Appraised
          Value of the Mortgaged Property as set forth in such appraisal, and (3)
          other
          matters to which like properties are commonly subject which do not individually
          or in the aggregate materially interfere with the benefits of the security
          intended to be provided by the Mortgage or the use, enjoyment, value or
          marketability of the related Mortgaged Property. Any security agreement,
          chattel
          mortgage or equivalent document related to and delivered in connection
          with the
          Mortgage Loan establishes and creates a valid, subsisting, enforceable
          and
          perfected first lien and first priority security interest on the property
          described therein, and the Company has the full right to sell and assign
          the
          same to the Purchaser;

        

        (k)
          The
          Mortgage Note and the related Mortgage are original and genuine and each
          is the
          legal, valid and binding obligation of the maker thereof, enforceable in
          all
          respects in accordance with its terms subject to principles of equity,
          bankruptcy, insolvency and other laws of general application affecting
          the
          rights of creditors, and the Company has taken all action necessary to
          transfer
          such rights of enforceability to the Purchaser. All parties to the Mortgage
          Note
          and the Mortgage had the legal capacity to enter into the Mortgage Loan
          and to
          execute and deliver the Mortgage Note and the Mortgage. The Mortgage Loan
          Documents are on forms acceptable to Fannie Mae and FHLMC. The Mortgage
          Note and
          the Mortgage have been duly and properly executed by such parties. No fraud,
          error, omission, misrepresentation, negligence or similar occurrence with
          respect to a Mortgage Loan has taken place on the part of Company or the
          Mortgagor, or on the part of any other party involved in the origination
          or
          servicing of the Mortgage Loan. The proceeds of the Mortgage Loan have
          been
          fully disbursed and there is no requirement for future advances thereunder,
          and
          any and all requirements as to completion of any on-site or off-site
          improvements and as to disbursements of any escrow funds therefor have
          been
          complied with. All costs, fees and expenses incurred in making or closing
          the
          Mortgage Loan and the recording of the Mortgage were paid, and the Mortgagor
          is
          not entitled to any refund of any amounts paid or due under the Mortgage
          Note or
          Mortgage;

        

        (l)
          The
          Company is the sole owner and holder of the Mortgage Loan and the indebtedness
          evidenced by the Mortgage Note. Upon the sale of the Mortgage Loan to the
          Purchaser, the Company will retain the Mortgage File or any part thereof
          with
          respect thereto not delivered to the Purchaser or the Purchaser’s designee in
          trust only for the purpose of servicing and supervising the servicing of
          the
          Mortgage Loan. Immediately prior to the transfer and assignment to the
          Purchaser, the Mortgage Loan, including the Mortgage Note and the Mortgage,
          were
          not subject to an assignment, sale or pledge to any person other than Purchaser,
          and the Company had good and marketable title to and was the sole owner
          thereof
          and had full right to transfer and sell the Mortgage Loan to the Purchaser
          free
          and clear of any encumbrance, equity, lien, pledge, charge, claim or security
          interest and has the full right and authority subject to no interest or
          participation of, or agreement with, any other party, to sell and assign
          the
          Mortgage Loan pursuant to this Agreement and following the sale of the
          Mortgage
          Loan, the Purchaser will own such Mortgage Loan free and clear of any
          encumbrance, equity, participation interest, lien, pledge, charge, claim
          or
          security interest. The Company intends to relinquish all rights to possess,
          control and monitor the Mortgage Loan, except for the purposes of servicing
          the
          Mortgage Loan as set forth in this Agreement. After the related Closing
          Date,
          the Company will not have any right to modify or alter the terms of the
          sale of
          the Mortgage Loan and the Company will not have any obligation or right
          to
          repurchase the Mortgage Loan or substitute another Mortgage Loan, except
          as
          provided in this Agreement, or as otherwise agreed to by the Company and
          the
          Purchaser;

        

        (m)
          Each
          Mortgage Loan is covered by an ALTA lender's title insurance policy or
          other
          generally acceptable form of policy or insurance acceptable to Fannie Mae
          or
          FHLMC (including adjustable rate endorsements), issued by a title insurer
          acceptable to Fannie Mae or FHLMC and qualified to do business in the
          jurisdiction where the Mortgaged Property is located, insuring (subject
          to the
          exceptions contained in (j)(1), (2) and (3) above) the Company, its successors
          and assigns, as to the first priority lien of the Mortgage in the original
          principal amount of the Mortgage Loan and against any loss by reason of
          the
          invalidity or unenforceability of the lien resulting from the provisions
          of the
          Mortgage providing for adjustment in the Mortgage Interest Rate and Monthly
          Payment. Where required by state law or regulation, the Mortgagor has been
          given
          the opportunity to choose the carrier of the required mortgage title insurance.
          The Company, its successors and assigns, is the sole insured of such lender's
          title insurance policy, such title insurance policy has been duly and validly
          endorsed to the Purchaser or the assignment to the Purchaser of the Company's
          interest therein does not require the consent of or notification to the
          insurer
          and such lender's title insurance policy is in full force and effect and
          will be
          in full force and effect upon the consummation of the transactions contemplated
          by this Agreement. No claims have been made under such lender's title insurance
          policy, and no prior holder or servicer of the related Mortgage, including
          the
          Company, nor any Mortgagor, has done, by act or omission, anything which
          would
          impair the coverage of such lender's title insurance policy;

        

        (n)
          There
          is no default, breach, violation or event of acceleration existing under
          the
          Mortgage or the related Mortgage Note and no event which, with the passage
          of
          time or with notice and the expiration of any grace or cure period, would
          constitute a default, breach, violation or event permitting acceleration;
          and
          neither the Company, nor any prior mortgagee has waived any default, breach,
          violation or event permitting acceleration;

        

        (o)
          There
          are no mechanics' or similar liens or claims which have been filed for
          work,
          labor or material (and no rights are outstanding that under law could give
          rise
          to such liens) affecting the related Mortgaged Property which are or may
          be
          liens prior to or equal to the lien of the related Mortgage;

        

        (p)
          All
          improvements subject to the Mortgage which were considered in determining
          the
          appraised value of the Mortgaged Property lie wholly within the boundaries
          and
          building restriction lines of the Mortgaged Property (and wholly within
          the
          project with respect to a condominium unit) and no improvements on adjoining
          properties encroach upon the Mortgaged Property except those which are
          insured
          against by the title insurance policy referred to in clause (m) above and
          all
          improvements on the property comply with all applicable zoning and subdivision
          laws and ordinances;

        

        (q)
          Each
          Mortgage Loan was originated by or for the Company pursuant to, and conforms
          with, the Company’s underwriting guidelines attached as Exhibit H hereto. The
          Mortgage Loan bears interest at an adjustable rate (if applicable) as set
          forth
          in the related Mortgage Loan Schedule, and Monthly Payments under the Mortgage
          Note are due and payable on the first day of each month. The Mortgage contains
          the usual and enforceable provisions of the Company at the time of origination
          for the acceleration of the payment of the unpaid principal amount of the
          Mortgage Loan if the related Mortgaged Property is sold without the prior
          consent of the mortgagee thereunder;

        

        (r)
          The
          Mortgaged Property is not subject to any material damage. At origination
          of the
          Mortgage Loan there was not, since origination of the Mortgage Loan there
          has
          not been, and there currently is no proceeding pending for the total or
          partial
          condemnation of the Mortgaged Property. The Company has not received
          notification that any such proceedings are scheduled to commence at a future
          date;

        

        (s)
          The
          related Mortgage contains customary and enforceable provisions such as
          to render
          the rights and remedies of the holder thereof adequate for the realization
          against the Mortgaged Property of the benefits of the security provided
          thereby,
          including, (1) in the case of a Mortgage designated as a deed of trust,
          by
          trustee's sale, and (2) otherwise by judicial foreclosure. There is no
          homestead
          or other exemption available to the Mortgagor which would interfere with
          the
          right to sell the Mortgaged Property at a trustee's sale or the right to
          foreclose the Mortgage;

        

        (t)
          If
          the Mortgage constitutes a deed of trust, a trustee, authorized and duly
          qualified if required under applicable law to act as such, has been properly
          designated and currently so serves and is named in the Mortgage, and no
          fees or
          expenses, except as may be required by local law, are or will become payable
          by
          the Purchaser to the trustee under the deed of trust, except in connection
          with
          a trustee's sale or attempted sale after default by the Mortgagor;

        

        (u)
          The
          Mortgage File contains an appraisal of the related Mortgaged Property signed
          prior to the final approval of the mortgage loan application by a Qualified
          Appraiser, approved by the Company, who had no interest, direct or indirect,
          in
          the Mortgaged Property or in any loan made on the security thereof, and
          whose
          compensation is not affected by the approval or disapproval of the Mortgage
          Loan, and the appraisal and appraiser both satisfy the requirements of
          Fannie
          Mae or FHLMC and Title XI of the Federal Institutions Reform, Recovery,
          and
          Enforcement Act of 1989 and the regulations promulgated thereunder, all
          as in
          effect on the date the Mortgage Loan was originated. The appraisal is in
          a form
          acceptable to Fannie Mae or FHLMC;

        

        (v)
          All
          parties which have had any interest in the Mortgage, whether as mortgagee,
          assignee, pledgee or otherwise, are (or, during the period in which they
          held
          and disposed of such interest, were) (A) in compliance with any and all
          applicable licensing requirements of the laws of the state wherein the
          Mortgaged
          Property is located, and (B) (1) organized under the laws of such state,
          or (2)
          qualified to do business in such state, or (3) federal savings and loan
          associations or national banks or a Federal Home Loan Bank or savings bank
          having principal offices in such state, or (4) not doing business in such
          state;

        

        (w)
          The
          related Mortgage Note is not and has not been secured by any collateral
          except
          the lien of the corresponding Mortgage and the security interest of any
          applicable security agreement or chattel mortgage referred to above and
          such
          collateral does not serve as security for any other obligation;

        

        (x)
          The
          Mortgagor has received and has executed, where applicable, all disclosure
          materials required by applicable law with respect to the making of such
          mortgage
          loans;

        

        (y)
          The
          Mortgage Loan does not contain balloon or "graduated payment" features.
          Unless
          otherwise indicated on the related Mortgage Loan Schedule, no Mortgage
          Loan is
          subject to a buydown agreement or contains any buydown provision;

        

        (z)
          The
          Mortgagor is not in bankruptcy and, the Mortgagor is not insolvent and
          the
          Company has no knowledge of any circumstances or conditions with respect
          to the
          Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor's credit
          standing that could reasonably be expected to cause investors to regard
          the
          Mortgage Loan as an unacceptable investment, cause the Mortgage Loan to
          become
          delinquent, or materially adversely affect the value or marketability of
          the
          Mortgage Loan;

        

        (aa)
          Each
          Mortgage Loan bears interest based upon a thirty (30) day month and a three
          hundred and sixty (360) day year. The Mortgage Loans have an original term
          to
          maturity of not more than thirty (30) years, with interest payable in arrears
          on
          the first day of each month. As to each adjustable rate Mortgage Loan,
          on each
          applicable Adjustment Date, the Mortgage Interest Rate will be adjusted
          to equal
          the sum of the Index, plus the applicable Margin; provided, that the Mortgage
          Interest Rate, on each applicable Adjustment Date, will not increase by
          more
          than the Initial Rate Cap or Periodic Rate Cap, as applicable. Over the
          term of
          each adjustable rate Mortgage Loan, the Mortgage Interest Rate will not
          exceed
          such Mortgage Loan's Lifetime Rate Cap. None of the Mortgage Loans are
          “interest-only” Mortgage Loans or “negative amortization” Mortgage Loans. With
          respect to each adjustable rate Mortgage Loan, each Mort-gage Note requires
          a
          monthly payment which is suffi-cient (a) during the period prior to the
          first
          adjust-ment to the Mortgage Interest Rate, to fully amortize the original
          principal balance over the original term thereof and to pay interest at
          the
          related Mortgage Interest Rate, and (b) during the period following each
          Adjust-ment Date, to fully amortize the outstanding principal balance as
          of the
          first day of such period over the then remaining term of such Mortgage
          Note and
          to pay interest at the related Mortgage Interest Rate. With respect to
          each
          adjustable rate Mortgage Loan, the Mortgage Note provides that when the
          Mortgage
          Interest Rate changes on an Adjustment Date, the then outstanding principal
          balance will be reamortized over the remaining life of the Mortgage Loan.
          No
          Mortgage Loan contains terms or provi-sions which would result in negative
          amortization. None of the Mortgage Loans contain a conversion feature which
          would cause the Mortgage Loan interest rate to convert to a fixed interest
          rate.
          None of the Mortgage Loans are considered agricultural loans; 

        

        (bb)
          (INTENTIONALLY LEFT BLANK)

        

        (cc)
          (INTENTIONALLY LEFT BLANK)

        

        (dd)
          (INTENTIONALLY LEFT BLANK)

         

        (ee)
          (INTENTIONALLY LEFT BLANK) 

        

        (ff)
          (INTENTIONALLY LEFT BLANK)

        

        (gg)
          (INTENTIONALLY LEFT BLANK)

        

        (hh) In
          the
          event the Mortgage Loan had an LTV at origination greater than 80.00%,
          the
          excess of the principal balance of the Mortgage Loan over 75.0% of the
          Appraised
          Value of the Mortgaged Property with respect to a Refinanced Mortgage Loan,
          or
          the lesser of the Appraised Value or the purchase price of the Mortgaged
          Property with respect to a purchase money Mortgage Loan was insured as
          to
          payment defaults by a Primary Mortgage Insurance Policy issued by a Qualified
          Insurer. No Mortgage Loan has an LTV over 95%. All provisions of such Primary
          Mortgage Insurance Policy have been and are being complied with, such policy
          is
          in full force and effect, and all premiums due thereunder have been paid.
          No
          Mortgage Loan requires payment of such premiums, in whole or in part, by
          the
          Purchaser. No action, inaction, or event has occurred and no state of facts
          exists that has, or will result in the exclusion from, denial of, or defense
          to
          coverage. Any Mortgage Loan subject to a Primary Mortgage Insurance Policy
          obligates the Mortgagor thereunder to maintain the Primary Mortgage Insurance
          Policy, subject to state and federal law, and to pay all premiums and charges
          in
          connection therewith. No action has been taken or failed to be taken, on
          or
          prior to the Closing Date which has resulted or will result in an exclusion
          from, denial of, or defense to coverage under any Primary Mortgage Insurance
          Policy (including, without limitation, any exclusions, denials or defenses
          which
          would limit or reduce the availability of the timely payment of the full
          amount
          of the loss otherwise due thereunder to the insured) whether arising out
          of
          actions, representations, errors, omissions, negligence, or fraud of the
          Company
          or the Mortgagor, or for any other reason under such coverage; The mortgage
          interest rate for the Mortgage Loan as set forth on the related Mortgage
          Loan
          Schedule is net of any such insurance premium. None of the Mortgage Loans
          are
          subject to “lender-paid” mortgage insurance;

         

        (ii) The
          Assignment is in recordable form and is acceptable for recording under
          the laws
          of the jurisdiction in which the Mortgaged Property is located;

        

        (jj) Unless
          otherwise indicated on the related Mortgage Loan Schedule, none of the
          Mortgage
          Loans are secured by an interest in a leasehold estate. The Mortgaged Property
          is located in the state identified in the related Mortgage Loan Schedule
          and
          consists of a single parcel of real property with a detached single family
          residence erected thereon, or a townhouse, or a two-to four-family dwelling,
          or
          an individual condominium unit in a condominium project, or an individual
          unit
          in a planned unit development or a de minimis planned unit development,
          provided, however, that no residence or dwelling is a single parcel of
          real
          property with a manufactured home not affixed to a permanent foundation,
          or a
          mobile home. Any
          non-warrantable condominium unit, condominium unit or planned unit development
          conforms with the Company’s underwriting guidelines. As
          of the
          date of origination, no portion of any Mortgaged Property was used for
          commercial purposes, and since the Origination Date, no portion of any
          Mortgaged
          Property has been, or currently is, used for commercial purposes;

        

        (kk) Payments
          on the Mortgage Loan commenced no more than sixty (60) days after the funds
          were
          disbursed in connection with the Mortgage Loan. The Mortgage Note is payable
          on
          the first day of each month in monthly installments of principal and interest,
          which installments are subject to change due to the adjustments to the
          Mortgage
          Interest Rate on each Adjustment Date, with interest calculated and payable
          in
          arrears. Each of the Mortgage Loans will amortize fully by the stated maturity
          date, over an original term of not more than thirty years from commencement
          of
          amortization;

        

        (ll) As
          of the
          Closing Date of the Mortgage Loan, the Mortgage Property was lawfully occupied
          under applicable law, and all inspections, licenses and certificates required
          to
          be made or issued with respect to all occupied portions of the Mortgaged
          Property and, with respect to the use and occupancy of the same, including
          but
          not limited to certificates of occupancy and fire underwriting certificates,
          have been made or obtained from the appropriate authorities;

        

        (mm) There
          is
          no pending action or proceeding directly involving the Mortgaged Property
          in
          which compliance with any environmental law, rule or regulation is an issue;
          there is no violation of any environmental law, rule or regulation with
          respect
          to the Mortgaged Property; and the Company has not received any notice
          of any
          environmental hazard on the Mortgaged Property and nothing further remains
          to be
          done to satisfy in full all requirements of each such law, rule or regulation
          constituting a prerequisite to use and enjoyment of said property;

        

        (nn) The
          Mortgagor has not notified the Company, and the Company has no knowledge
          of any
          relief requested or allowed to the Mortgagor under the Soldiers' and Sailors'
          Civil Relief Act of 1940;

        

        (oo)
           No
          Mortgage Loan is a construction or rehabilitation Mortgage Loan or was
          made to
          facilitate the trade-in or exchange of a Mortgaged Property;

        

        (pp) The
          Mortgagor for each Mortgage Loan is a natural person;

        

        (qq) None
          of
          the Mortgage Loans are Co-op Loans; 

        

        (rr)
           With
          respect to each Mortgage Loan that has a prepayment penalty feature, each
          such
          prepayment penalty is enforceable and will be enforced by the Company and
          each
          prepayment penalty is permitted pursuant to federal, state and local law.
          No
          Mortgage Loan will impose a prepayment penalty for a term in excess of
          five
          years from the date such Mortgage Loan was originated. Except as otherwise
          set
          forth on the Mortgage Loan Schedule, with respect to each Mortgage Loan
          that
          contains a prepayment penalty, such prepayment penalty is at least equal
          to the
          lesser of (A) the maximum amount permitted under applicable law and (B)
          six
          months interest at the related Mortgage Interest Rate on the amount prepaid
          in
          excess of 20% of the original principal balance of such Mortgage
          Loan;

        

        (ss)
           With
          respect to each Mortgage Loan either (i) the fair market value of the Mortgaged
          Property securing such Mortgage Loan was at least equal to 80 percent of
          the
          original principal balance of such Mortgage Loan at the time such Mortgage
          Loan
          was originated or (ii) (a) the Mortgage Loan is only secured by the Mortgage
          Property and (b) substantially all of the proceeds of such Mortgage Loan
          were
          used to acquire or to improve or protect the Mortgage Property. For the
          purposes
          of the preceding sentence, if the Mortgage Loan has been significantly
          modified
          other than as a result of a default or a reasonable foreseeable default,
          the
          modified Mortgage Loan will be viewed as having been originated on the
          date of
          the modification;

        

        (tt)
          The
          Mortgage Loan was originated by a mortgagee approved by the Secretary of
          Housing
          and Urban Development pursuant to sections 203 and 211 of the National
          Housing
          Act, a savings and loan association, a savings bank, a commercial bank,
          credit
          union, insurance company or similar institution which is supervised and
          examined
          by a federal or state authority; 

        

        (uu)
          None
          of the Mortgage Loans are simple interest Mortgage Loans and none of the
          Mortgaged Properties are timeshares; 

        

        (vv)
          All
          of the terms of the Mortgage pertaining to interest rate adjustments, payment
          adjustments and adjustments of the outstanding principal balance are
          enforceable, all such adjustments have been properly made, including the
          mailing
          of required notices, and such adjustments do not and will not affect the
          priority of the Mortgage lien. With respect to each Mortgage Loan which
          has
          passed its initial Adjustment Date, Company has performed an audit of the
          Mortgage Loan to determine whether all interest rate adjustments have been
          made
          in accordance with the terms of the Mortgage Note and Mortgage; and

        

        (ww)
          Each
          Mortgage Note, each Mortgage, each Assignment and any other documents required
          pursuant to this Agreement to be delivered to the Purchaser or its designee,
          or
          its assignee for each Mortgage Loan, have been, on or before the related
          Closing
          Date, delivered to the Purchaser or its designee, or its assignee.

        

        Section
          3.03 Repurchase;
          Substitution.

        

        It
          is
          understood and agreed that the representations and warranties set forth
          in
          Sections 3.01 and 3.02 shall survive the sale of the Mortgage Loans and
          delivery
          of the Mortgage Loan Documents to the Purchaser, or its designee, and shall
          inure to the benefit of the Purchaser, notwithstanding any restrictive
          or
          qualified endorsement on any Mortgage Note or Assignment or the examination,
          or
          lack of examination, of any Mortgage File. Upon discovery by either the
          Company
          or the Purchaser of a breach of any of the foregoing representations and
          warranties which materially and adversely affects the value of the Mortgage
          Loans or the interest of the Purchaser in any Mortgage Loan, the party
          discovering such breach shall give prompt written notice to the other.
          The
          Company shall have a period of sixty (60) days from the earlier of its
          discovery
          or its receipt of notice of any such breach within which to correct or
          cure such
          breach. The Company hereby covenants and agrees that if any such breach
          is not
          corrected or cured within such sixty day period, the Company shall, at
          the
          Purchaser's option and not later than ninety (90) days of its discovery
          or its
          receipt of notice of such breach, repurchase such Mortgage Loan at the
          Repurchase Price or, with the Purchaser's prior consent and at Purchaser’s sole
          option, substitute a Mortgage Loan as provided below. In the event that
          any such
          breach shall involve any representation or warranty set forth in Section
          3.01,
          and such breach is not cured within sixty (60) days of the earlier of either
          discovery by or notice to the Company of such breach, all Mortgage Loans
          shall,
          at the option of the Purchaser, be repurchased by the Company at the Repurchase
          Price. Any such repurchase shall be accomplished by wire transfer of immediately
          available funds to Purchaser in the amount of the Repurchase Price.

        

        If
          the
          Company is required to repurchase any Mortgage Loan pursuant to this Section
          3.03, the Company may, with the Purchaser's prior consent and at Purchaser’s
          sole option, within ninety (90) days from the related Closing Date, remove
          such
          defective Mortgage Loan from the terms of this Agreement and substitute
          another
          mortgage loan for such defective Mortgage Loan, in lieu of repurchasing
          such
          defective Mortgage Loan. Any substitute Mortgage Loan is subject to Purchaser
          acceptability. Any substituted Loans will comply with the representations
          and
          warranties set forth in this Agreement as of the substitution date

        

        The
          Company shall amend the related Mortgage Loan Schedule to reflect the withdrawal
          of the removed Mortgage Loan from this Agreement and the substitution of
          such
          substitute Mortgage Loan therefor. Upon such amendment, the Purchaser shall
          review the Mortgage File delivered to it relating to the substitute Mortgage
          Loan. In the event of such a substitution, accrued interest on the substitute
          Mortgage Loan for the month in which the substitution occurs and any Principal
          Prepayments made thereon during such month shall be the property of the
          Purchaser and accrued interest for such month on the Mortgage Loan for
          which the
          substitution is made and any Principal Prepayments made thereon during
          such
          month shall be the property of the Company. The principal payment on a
          substitute Mortgage Loan due on the Due Date in the month of substitution
          shall
          be the property of the Company and the principal payment on the Mortgage
          Loan
          for which the substitution is made due on such date shall be the property
          of the
          Purchaser.

        

        For
          any
          month in which the Company is permitted to substitute one or more substitute
          Mortgage Loans, the Company will determine the amount (if any) by which
          the
          aggregate Stated Principal Balance (after application of the principal
          portion
          of all scheduled payments due in the month of substitution) of all the
          substitute Mortgage Loans in the month of substitution is less then the
          aggregate Stated Principal Balance (after application of the principal
          portion
          of the scheduled payment due in the month of substitution) of the such
          replaced
          Mortgage Loan. An amount equal to the aggregate of such deficiencies described
          in the preceding sentence for any Remittance Date shall be deposited into
          the
          Custodial Account by the Company on the related Determination Date in the
          month
          following the calendar month during which the substitution occurred.

        

        It
          is
          understood and agreed that the obligation of the Company set forth in this
          Section 3.03 to cure, repurchase or substitute for a defective Mortgage
          Loan,
          and to indemnify Purchaser pursuant to Section 8.01, constitute the sole
          remedies of the Purchaser respecting a breach of the foregoing representations
          and warranties. If the Company fails to repurchase or substitute for a
          defective
          Mortgage Loan in accordance with this Section 3.03, or fails to cure a
          defective
          Mortgage Loan to Purchaser's reasonable satisfaction in accordance with
          this
          Section 3.03, or to indemnify Purchaser pursuant to Section 8.01, that
          failure
          shall be an Event of Default and the Purchaser shall be entitled to pursue
          all
          remedies available in this Agreement as a result thereof. No provision
          of this
          paragraph shall affect the rights of the Purchaser to terminate this Agreement
          for cause, as set forth in Sections 10.01 and 11.01.

        

        Any
          cause
          of action against the Company relating to or arising out of the breach
          of any
          representations and warranties made in Sections 3.01 and 3.02 shall accrue
          as to
          any Mortgage Loan upon (i) the earlier of discovery of such breach by the
          Company or notice thereof by the Purchaser to the Company, (ii) failure
          by the
          Company to cure such breach or repurchase such Mortgage Loan as specified
          above,
          and (iii) demand upon the Company by the Purchaser for compliance with
          this
          Agreement.

        

        In
          the
          event that any Mortgage Loan is held by a REMIC, notwithstanding any contrary
          provision of this Agreement, with respect to any Mortgage Loan that is
          not in
          default or as to which no default is imminent, no substitution pursuant
          to
          Subsection 3.03 shall be made after the applicable REMIC's "start up day"
          (as
          defined in Section 860G(a) (9) of the Code), unless the Company has obtained
          an
          Opinion of Counsel to the effect that such substitution will not (i) result
          in
          the imposition of taxes on "prohibited transactions" of such REMIC (as
          defined
          in Section 860F of the Code) or otherwise subject the REMIC to tax, or
          (ii)
          cause the REMIC to fail to qualify as a REMIC at any time.

        

        Section
          3.04 Representations
          and Warranties of the Purchaser.

         

        The
          Purchaser represents, warrants and convenants to the Company that, as of
          the
          related Closing Date or as of such date specifically provided
          herein:

        

        (a)The
          Purchaser is a corporation, dully organized validly existing and in good
          standing under the laws of the State of Delaware and is qualified to transact
          business in, is in good standing under the laws of, and possesses all licenses
          necessary for the conduct of its business in, each state in which any Mortgaged
          Property is located or is otherwise except or not required under applicable
          law
          to effect such qualification or license;

        

        (b)The
          Purchaser has full power and authority to hold each Mortgage Loan, to purchase
          each Mortgage Loan pursuant to this Agreement and the related Term Sheet
          and to
          execute, deliver and perform, and to enter into and consummate all transactions
          contemplated by this Agreement and the related Term Sheet and to conduct
          its
          business as presently conducted, has duly authorized the execution, delivery
          and
          performance of this Agreement and the related Term Sheet, has duly executed
          and
          delivered this Agreement and the related Term Sheet;

        

        (c) None
          of
          the execution and delivery of this Agreement and the related Term Sheet,
          the
          purchase of the Mortgage Loans, the consummation of the transactions
          contemplated hereby, or the fulfillment of or compliance with the terms
          and
          conditions of this Agreement and the related Term Sheet will conflict with
          any
          of the terms, conditions or provisions of the Purchaser’s charter or by-laws or
          materially conflict with or result in a material breach of any of the terms,
          conditions or provisions
          of any legal restriction or any agreement or instrument to which the Purchaser
          is now a party or by which it is bound, or constitute a default or result
          in an
          acceleration under any of the foregoing, or result in the material violation
          of
          any law, rule, regulation, order, judgment or decree to which the Purchaser
          or
          its property is subject;

        

        (d) There
          is
          no litigation pending or to the best of the Purchaser’s knowledge, threatened
          with respect to the Purchaser which is reasonably likely to have a material
          adverse effect on the purchase of the related Mortgage Loans, the execution,
          delivery or enforceability of this Agreement and the related Term Sheet,
          or
          which is reasonably likely to have a material adverse effect on the financial
          condition of the Purchaser;

        

        (e) No
          consent, approval, authorization or order of any court or governmental
          agency or
          body is required for the execution, delivery and performance by the Purchaser
          of
          or compliance by the Purchaser with this Agreement and the related Term
          Sheet,
          the purchase of the Mortgage Loans or the consummation of the transactions
          contemplated by this Agreement and the related Term Sheet except for consents,
          approvals, authorizations and orders which have been obtained;

        

        (f) The
          consummation of the transactions contemplated by this Agreement and the
          related
          Term Sheet is in the ordinary course of business of the Purchaser;

        

        (h) The
          Purchaser will treat the purchase of the Mortgage Loans from the Company
          as a
          purchase for reporting, tax and accounting purposes; and

        

        (i) The
          Purchaser does not believe, nor does it have any cause or reason to believe,
          that it cannot perform each and every of its covenants contained in this
          Agreement and the related Term Sheet.

        

        The
          Purchaser shall indemnify the Company and hold it harmless against any
          claims,
          proceedings, losses, damages, penalties, fines, forfeitures, reasonable
          and
          necessary legal fees and related costs, judgments, and other costs and
          expenses
          resulting from a breach by the Purchaser of the representations and warranties
          contained in this Section 3.04. It is understood and agreed that the obligations
          of the Purchaser set forth in this Section 3.04 to indemnify the Seller
          as
          provided herein constitute the sole remedies of the Seller respecting a
          breach
          of the foregoing representations and warranties.

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        ARTICLE
          IV

        

        ADMINISTRATION
          AND SERVICING OF MORTGAGE LOANS

        

        Section
          4.01 Company
          to Act as Servicer.

        

        The
          Company, as independent contract servicer, shall service and administer
          the
          Mortgage Loans in accordance with this Agreement and the related Term Sheet
          and
          with Accepted Servicing Practices, and shall have full power and authority,
          acting alone, to do or cause to be done any and all things in connection
          with
          such servicing and administration which the Company may deem necessary
          or
          desirable and consistent with the terms of this Agreement and the related
          Term
          Sheet and with Accepted Servicing Practices and exercise the same care
          that it
          customarily employs for its own account. Except as set forth in this Agreement
          and the related Term Sheet, the Company shall service the Mortgage Loans
          in
          strict compliance with the servicing provisions of the Fannie Mae Guides
          (special servicing option), which include, but are not limited to, provisions
          regarding the liquidation of Mortgage Loans, the collection of Mortgage
          Loan
          payments, the payment of taxes, insurance and other charges, the maintenance
          of
          hazard insurance with a Qualified Insurer, the maintenance of mortgage
          impairment insurance, the maintenance of fidelity bond and errors and omissions
          insurance, inspections, the restoration of Mortgaged Property, the maintenance
          of Primary Mortgage Insurance Policies, insurance claims, the title, management
          and disposition of REO Property, permitted withdrawals with respect to
          REO
          Property, liquidation reports, and reports of foreclosures and abandonments
          of
          Mortgaged Property, the transfer of Mortgaged Property, the release of
          Mortgage
          Files, annual statements, and examination of records and facilities. In
          the
          event of any conflict, inconsistency or discrepancy between any of the
          servicing
          provisions of this Agreement and the related Term Sheet and any of the
          servicing
          provisions of the Fannie Mae Guides, the provisions of this Agreement and
          the
          related Term Sheet shall control and be binding upon the Purchaser and
          the
          Company. 

        

        Consistent
          with the terms of this Agreement and the related Term Sheet, the Company
          may
          waive, modify or vary any term of any Mortgage Loan or consent to the
          postponement of any such term or in any manner grant indulgence to any
          Mortgagor
          if in the Company's reasonable and prudent determination such waiver,
          modification, postponement or indulgence is not materially adverse to the
          Purchaser, provided, however, that unless the Company has obtained the
          prior
          written consent of the Purchaser, the Company shall not permit any modification
          with respect to any Mortgage Loan that would change the Mortgage Interest
          Rate,
          defer for more than ninety days or forgive any payment of principal or
          interest,
          reduce or increase the outstanding principal balance (except for actual
          payments
          of principal) or change the final maturity date on such Mortgage Loan.
          In the
          event of any such modification which has been agreed to in writing by the
          Purchaser and which permits the deferral of interest or principal payments
          on
          any Mortgage Loan, the Company shall, on the Business Day immediately preceding
          the Remittance Date in any month in which any such principal or interest
          payment
          has been deferred, deposit in the Custodial Account from its own funds,
          in
          accordance with Section 4.04, the difference between (a) such month's principal
          and one month's interest at the Mortgage Loan Remittance Rate on the unpaid
          principal balance of such Mortgage Loan and (b) the amount paid by the
          Mortgagor. The Company shall be entitled to reimbursement for such advances
          to
          the same extent as for all other advances pursuant to Section 4.05. Without
          limiting the generality of the foregoing, the Company shall continue, and
          is
          hereby authorized and empowered, to prepare, execute and deliver, all
          instruments of satisfaction or cancellation, or of partial or full release,
          discharge and all other comparable instruments, with respect to the Mortgage
          Loans and with respect to the Mortgaged Properties. Notwithstanding anything
          herein to the contrary, the Company may not enter into a forbearance agreement
          or similar arrangement with respect to any Mortgage Loan which runs more
          than
          180 days after the first delinquent Due Date. Any such agreement shall
          be
          approved by Purchaser and, if required, by the Primary Mortgage Insurance
          Policy
          insurer, if required. 

        

        Notwithstanding
          anything to the contrary contained in this Agreement, the Company shall
          not make
          or permit any modification, waiver or amendment of any term of any Mortgage
          Loan
          that would cause any REMIC created under the trust agreement pursuant to
          any
          Reconstitution to fail to qualify as a REMIC or result in the imposition
          of any
          tax under Section 860F(a) or Section 860G(d) of the Code.

        

        The
          Company shall not permit the creation of any “interests” (within the meaning of
          Section 860G of the Code) in any REMIC. The Company shall not enter into
          any
          arrangement by which a REMIC will receive a fee or other compensation for
          services nor permit a REMIC to receive any income from assets other than
          “qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
          investments” as defined in Section 860G(a)(5) of the Code.

        

        In
          servicing and administering the Mortgage Loans, the Company shall employ
          Accepted Servicing Practices, giving due consideration to the Purchaser's
          reliance on the Company. Unless a different time period is stated in this
          Agreement or the related Term Sheet, Purchaser shall be deemed to have
          given
          consent in connection with a particular matter if Purchaser does not
          affirmatively grant or deny consent within five (5) Business Days from
          the date
          Purchaser receives a second written request for consent for such matter
          from
          Company as servicer. 

        

        The
          Mortgage Loans may be subserviced by a Subservicer on behalf of the Company
          provided that the Subservicer is an entity that engages in the business
          of
          servicing loans, and in either case shall be authorized to transact business,
          and licensed to service mortgage loans, in the state or states where the
          related
          Mortgaged Properties it is to service are situated, if and to the extent
          required by applicable law to enable the Subservicer to perform its obligations
          hereunder and under the Subservicing Agreement, and in either case shall
          be a
          FHLMC or Fannie Mae approved mortgage servicer in good standing, and no
          event
          has occurred, including but not limited to a change in insurance coverage,
          which
          would make it unable to comply with the eligibility requirements for lenders
          imposed by Fannie Mae or for seller/servicers imposed by Fannie Mae or
          FHLMC, or
          which would require notification to Fannie Mae or FHLMC. In addition, each
          Subservicer will obtain and preserve its qualifications to do business
          as a
          foreign corporation and its licenses to service mortgage loans, in each
          jurisdiction in which such qualifications and/or licenses are or shall
          be
          necessary to protect the validity and enforceability of this Agreement,
          or any
          of the Mortgage Loans and to perform or cause to be performed its duties
          under
          the related Subservicing Agreement. The Company may perform any of its
          servicing
          responsibilities hereunder or may cause the Subservicer to perform any
          such
          servicing responsibilities on its behalf, but the use by the Company of
          the
          Subservicer shall not release the Company from any of its obligations hereunder
          and the Company shall remain responsible hereunder for all acts and omissions
          of
          the Subservicer as fully as if such acts and omissions were those of the
          Company. The Company shall pay all fees and expenses of the Subservicer
          from its
          own funds, and the Subservicer's fee shall not exceed the Servicing Fee.
          Company
          shall notify Purchaser promptly in writing upon the appointment of any
          Subservicer.

        

        At
          the
          cost and expense of the Company, without any right of reimbursement from
          the
          Custodial Account, the Company shall be entitled to terminate the rights
          and
          responsibilities of the Subservicer and arrange for any servicing
          responsibilities to be performed by a successor subservicer meeting the
          requirements in the preceding paragraph, provided, however, that nothing
          contained herein shall be deemed to prevent or prohibit the Company, at
          the
          Company's option, from electing to service the related Mortgage Loans itself.
          In
          the event that the Company's responsibilities and duties under this Agreement
          are terminated pursuant to Section 4.13, 8.04, 9.01 or 10.01 and if requested
          to
          do so by the Purchaser, the Company shall at its own cost and expense terminate
          the rights and responsibilities of the Subservicer effective as of the
          date of
          termination of the Company. The Company shall pay all fees, expenses or
          penalties necessary in order to terminate the rights and responsibilities
          of the
          Subservicer from the Company's own funds without reimbursement from the
          Purchaser.

        

        Notwithstanding
          any of the provisions of this Agreement relating to agreements or arrangements
          between the Company and the Subservicer or any reference herein to actions
          taken
          through the Subservicer or otherwise, the Company shall not be relieved
          of its
          obligations to the Purchaser and shall be obligated to the same extent
          and under
          the same terms and conditions as if it alone were servicing and administering
          the Mortgage Loans. The Company shall be entitled to enter into an agreement
          with the Subservicer for indemnification of the Company by the Subservicer
          and
          nothing contained in this Agreement shall be deemed to limit or modify
          such
          indemnification. The Company will indemnify and hold Purchaser harmless
          from any
          loss, liability or expense arising out of its use of a Subservicer to perform
          any of its servicing duties, responsibilities and obligations
          hereunder.

        

        Any
          Subservicing Agreement and any other transactions or services relating
          to the
          Mortgage Loans involving the Subservicer shall be deemed to be between
          the
          Subservicer and Company alone, and the Purchaser shall have no obligations,
          duties or liabilities with respect to the Subservicer including no obligation,
          duty or liability of Purchaser to pay the Subservicer's fees and expenses.
          For
          purposes of distributions and advances by the Company pursuant to this
          Agreement, the Company shall be deemed to have received a payment on a
          Mortgage
          Loan when the Subservicer has received such payment.

        

        Section
          4.02 Collection
          of Mortgage Loan Payments.

        

        Continuously
          from the date hereof until the date each Mortgage Loan ceases to be subject
          to
          this Agreement, the Company will proceed diligently to collect all payments
          due
          under each Mortgage Loan when the same shall become due and payable and
          shall,
          to the extent such procedures shall be consistent with this Agreement,
          Accepted
          Servicing Practices, and the terms and provisions of any related Primary
          Mortgage Insurance Policy, follow such collection procedures as it follows
          with
          respect to mortgage loans comparable to the Mortgage Loans and held for
          its own
          account. Further, the Company will take special care in ascertaining and
          estimating annual escrow payments, and all other charges that, as provided
          in
          the Mortgage, will become due and payable, so that the installments payable
          by
          the Mortgagors will be sufficient to pay such charges as and when they
          become
          due and payable.

        

        In
          no
          event will the Company waive its right to any prepayment penalty or premium
          without the prior written consent of Purchaser and Company will use diligent
          efforts to collect same when due except as otherwise provided in the prepayment
          penalty provisions provided in the Mortgage Loan Documents. 

        

        Section
          4.03 Realization
          Upon Defaulted Mortgage

        

        The
          Company shall use its best efforts, consistent with the procedures that
          the
          Company would use in servicing loans for its own account, consistent with
          Accepted Servicing Practices, any Primary Mortgage Insurance Policies and
          the
          best interest of Purchaser, to foreclose upon or otherwise comparably convert
          the ownership of properties securing such of the Mortgage Loans as come
          into and
          continue in default and as to which no satisfactory arrangements can be
          made for
          collection of delinquent payments pursuant to Section 4.01. Foreclosure
          or
          comparable proceedings shall be initiated within ninety (90) days of default
          for
          Mortgaged Properties for which no satisfactory arrangements can be made
          for
          collection of delinquent payments, subject to state and federal law and
          regulation. The Company shall use its best efforts to realize upon defaulted
          Mortgage Loans in such manner as will maximize the receipt of principal
          and
          interest by the Purchaser, taking into account, among other things, the
          timing
          of foreclosure proceedings. The foregoing is subject to the provisions
          that, in
          any case in which a Mortgaged Property shall have suffered damage, the
          Company
          shall not be required to expend its own funds toward the restoration of
          such
          property unless it shall determine in its discretion (i) that such restoration
          will increase the proceeds of liquidation of the related Mortgage Loan
          to the
          Purchaser after reimbursement to itself for such expenses, and (ii) that
          such
          expenses will be recoverable by the Company through Insurance Proceeds
          or
          Liquidation Proceeds from the related Mortgaged Property, as contemplated
          in
          Section 4.05. Company shall obtain prior approval of Purchaser as to repair
          or
          restoration expenses in excess of ten thousand dollars ($10,000). The Company
          shall notify the Purchaser in writing of the commencement of foreclosure
          proceedings and not less than 5 days prior to the acceptance or rejection
          of any
          offer of reinstatement. The Company shall be responsible for all costs
          and
          expenses incurred by it in any such proceedings or functions; provided,
          however,
          that it shall be entitled to reimbursement thereof from the related property,
          as
          contemplated in Section 4.05. Notwithstanding anything to the contrary
          contained
          herein, in connection with a foreclosure or acceptance of a deed in lieu
          of
          foreclosure, in the event the Company has reasonable cause to believe that
          a
          Mortgaged Property is contaminated by hazardous or toxic substances or
          wastes,
          or if the Purchaser otherwise requests an environmental inspection or review
          of
          such Mortgaged Property, such an inspection or review is to be conducted
          by a
          qualified inspector at the Purchaser's expense. Upon completion of the
          inspection, the Company shall promptly provide the Purchaser with a written
          report of the environmental inspection. After reviewing the environmental
          inspection report, the Purchaser shall determine how the Company shall
          proceed
          with respect to the Mortgaged Property. 

        

        Notwithstanding
          anything to the contrary contained herein, the Purchaser may, at the Purchaser's
          sole option, terminate the Company as servicer of any Mortgage Loan which
          becomes ninety (90) days or greater delinquent in payment of a scheduled
          Monthly
          Payment, without payment of any termination fee with respect thereto, provided
          that the Company shall on the date said termination takes effect be reimbursed
          for any unreimbursed Monthly Advances of the Company's funds made pursuant
          to
          Section 5.03 and any unreimbursed Servicing Advances and Servicing Fees
          in each
          case relating to the Mortgage Loan underlying such delinquent Mortgage
          Loan
          notwithstanding anything to the contrary set forth in Section 4.05. In
          the event
          of any such termination, the provisions of Section 11.01 hereof shall apply
          to
          said termination and the transfer of servicing responsibilities with respect
          to
          such delinquent Mortgage Loan to the Purchaser or its designee.

        

        If
          a
          REMIC election has been made with respect to the arrangement under which
          the
          Mortgage Loans and REO Property are held, the Company shall not take any
          action,
          cause the REMIC to take any action or fail to take (or fail to cause to
          be
          taken) any action that, under the REMIC Provisions, if taken or not taken,
          as
          the case may be, could (i) endanger the status of the REMIC as a REMIC
          or (ii)
          result in the imposition of a tax upon the REMIC (including but not limited
          to
          the tax on “prohibited transactions” as defined Section 860G(a)(2) of the Code
          and the tax on “contributions” to a REMIC set forth in Section 860(D) of the
          Code) unless the Company has received an Opinion of Counsel (at the expense
          of
          the party seeking to take such action) to the effect that the contemplated
          action will not endanger such REMIC status or result in the imposition
          of any
          such tax.

        

        Section
          4.04 Establishment
          of Custodial Accounts; Deposits in Custodial Accounts.

        

        The
          Company shall segregate and hold all funds collected and received pursuant
          to
          each Mortgage Loan separate and apart from any of its own funds and general
          assets and shall establish and maintain one or more Custodial Accounts.
          The
          Custodial Account shall be an Eligible Account. Funds shall be deposited
          in the
          Custodial Account within 48 hours of receipt, and shall at all times be
          insured
          by the FDIC up to the FDIC insurance limits, or must be invested in Permitted
          Investments for the benefit of the Purchaser. Funds deposited in the Custodial
          Account may be drawn on by the Company in accordance with Section 4.05.
          The
          creation of any Custodial Account shall be evidenced by a letter agreement
          in
          the form shown in Exhibit B hereto. The original of such letter agreement
          shall
          be furnished to the Purchaser on the Closing Date, and upon the request
          of any
          subsequent Purchaser.

        

        The
          Company shall deposit in the Custodial Account on a daily basis, and retain
          therein the following payments and collections received or made by it subsequent
          to the Cut-off Date, or received by it prior to the Cut-off Date but allocable
          to a period subsequent thereto, other than in respect of principal and
          interest
          on the Mortgage Loans due on or before the Cut-off Date:

        

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

        

        (ii)
           all
          payments on account of interest on the Mortgage Loans adjusted to the Mortgage
          Loan Remittance Rate;

        

        (iii)
           all
          Liquidation Proceeds;

        

        (iv)
           any
          amounts required to be deposited by the Company in connection with any
          REO
          Property pursuant to Section 4.13 and in connection therewith, the Company
          shall
          provide the Purchaser with written detail itemizing all of such
          amounts;

        

        (v)
           all
          Insurance Proceeds including amounts required to be deposited pursuant
          to
          Sections 4.08, 4.10 and 4.11, other than proceeds to be held in the Escrow
          Account and applied to the restoration or repair of the Mortgaged Property
          or
          released to the Mortgagor in accordance with Accepted Servicing Practices,
          the
          Mortgage Loan Documents or applicable law;

        

        (vi)
           all
          Condemnation Proceeds affecting any Mortgaged Property which are not released
          to
          the Mortgagor in accordance with Accepted Servicing Practices, the loan
          documents or applicable law;

        

        (vii)
           any
          Monthly Advances;

        

        (viii)
           with
          respect to each full or partial Principal Prepayment, any Prepayment Interest
          Shortfalls, to the extent of the Company’s aggregate Servicing Fee received with
          respect to the related Prepayment Period;

        

        (ix)
           any
          amounts required to be deposited by the Company pursuant to Section 4.10
          in
          connection with the deductible clause in any blanket hazard insurance policy,
          such deposit shall be made from the Company's own funds, without reimbursement
          therefor; and

        

        (x)
           any
          amounts required to be deposited in the Custodial Account pursuant to Section
          4.01, 4.13 or 6.02.

        

        The
          foregoing requirements for deposit in the Custodial Account shall be exclusive,
          it being understood and agreed that, without limiting the generality of
          the
          foregoing, payments in the nature of late payment charges and assumption
          fees,
          to the extent permitted by Section 6.01, need not be deposited by the Company
          in
          the Custodial Account. Any interest paid on funds deposited in the Custodial
          Account by the depository institution shall accrue to the benefit of the
          Company
          and the Company shall be entitled to retain and withdraw such interest
          from the
          Custodial Account pursuant to Section 4.05 (iv). The Purchaser shall not
          be
          responsible for any losses suffered with respect to investment of funds
          in the
          Custodial Account.

         

        Section
          4.05 Permitted
          Withdrawals From the Custodial Account.

        

        The
          Company may, from time to time, withdraw from the Custodial Account for
          the
          following purposes:

        

        (i) to
          make
          payments to the Purchaser in the amounts and in the manner provided for
          in
          Section 5.01;

        

        (ii)
           to
          reimburse itself for Monthly Advances, the Company's right to reimburse
          itself
          pursuant to this subclause (ii) being limited to amounts received on the
          related
          Mortgage Loan which represent late collections (net of the related Servicing
          Fees) of principal and/or interest respecting (or
          to
          amounts received on the related Mortgage Loan as a whole if the Monthly
          Advance
          is made due to a shortfall in a Monthly Payment made by a Mortgagor entitled
          to
          relief under the Soldiers and Sailors Civil Relief Act of 1940)
          respecting which
          any
          such advance was made, it being understood that, in the case of such
          reimbursement, the Company's right thereto shall be prior to the rights
          of the
          Purchaser, except that, where the Company is required to repurchase a Mortgage
          Loan, pursuant to Section 3.03, the Company's right to such reimbursement
          shall
          be subsequent to the payment to the Purchaser of the Repurchase Price pursuant
          to such Section and all other amounts required to be paid to the Purchaser
          with
          respect to such Mortgage Loan;

        

        (iii)
           to
          reimburse itself for unreimbursed Servicing Advances and any unpaid Servicing
          Fees(or REO administration fees described in Section 4.13), the Company's
          right
          to reimburse itself pursuant to this subclause (iii) with respect to any
          Mortgage Loan being limited to related proceeds from Liquidation Proceeds,
          Condemnation Proceeds and Insurance Proceeds in accordance with the relevant
          provisions of the Fannie Mae Guides or as otherwise set forth in this Agreement;
          any recovery shall be made upon liquidation of the REO Property; 

        

        (iv) to
          pay to
          itself as part of its servicing compensation (a) any interest earned on
          funds in
          the Custodial Account (all such interest to be withdrawn monthly not later
          than
          each Remittance Date), and (b) the Servicing Fee from that portion of any
          payment or recovery as to interest with respect to a particular Mortgage
          Loan;

        

        (v) to
          pay to
          itself with respect to each Mortgage Loan that has been repurchased pursuant
          to
          Section 3.03 all amounts received thereon and not distributed as of the
          date on
          which the related repurchase price is determined,

        

        (vi) to
          transfer funds to another Eligible Account in accordance with Section 4.09
          hereof;

        

        (vii) to
          remove
          funds inadvertently placed in the Custodial Account by the Company;

        

        (vi) to
          clear
          and terminate the Custodial Account upon the termination of this Agreement;
          and

        

        (vii)to
          reimburse itself for Nonrecoverable Advances to the extent not reimbursed
          pursuant to clause (ii) or clause (iii).

        

        Section
          4.06 Establishment
          of Escrow Accounts; Deposits
          in Escrow Accounts.

        

        The
          Company shall segregate and hold all funds collected and received pursuant
          to
          each Mortgage Loan which constitute Escrow Payments separate and apart
          from any
          of its own funds and general assets and shall establish and maintain one
          or more
          Escrow Accounts. The Escrow Account shall be an Eligible Account. Funds
          deposited in each Escrow Account shall at all times be insured in a manner
          to
          provide maximum insurance under the insurance limitations of the FDIC,
          or must
          be invested in Permitted Investments. Funds
          deposited in the Escrow Account may be drawn on by the Company in accordance
          with Section 4.07. The creation of any Escrow Account shall be evidenced
          by a
          letter agreement in the form shown in Exhibit C. The original of such letter
          agreement shall be furnished to the Purchaser on the Closing Date, and
          upon
          request to any subsequent purchaser.

        

        The
          Company shall deposit in the Escrow Account or Accounts on a daily basis,
          and
          retain therein:

        

        (i) all
          Escrow Payments collected on account of the Mortgage Loans, for the purpose
          of
          effecting timely payment of any such items as required under the terms
          of this
          Agreement;

        

        (ii) all
          Insurance Proceeds which are to be applied to the restoration or repair
          of any
          Mortgaged Property; and

        

        (iii) all
          Servicing Advances for Mortgagors whose Escrow Payments are insufficient
          to
          cover escrow disbursements.

        

        The
          Company shall make withdrawals from the Escrow Account only to effect such
          payments as are required under this Agreement, and for such other purposes
          as
          shall be as set forth or in accordance with Section 4.07. The Company shall
          be
          entitled to retain any interest paid on funds deposited in the Escrow Account
          by
          the depository institution other than interest on escrowed funds required
          by law
          to be paid to the Mortgagor and, to the extent required by law, the Company
          shall pay interest on escrowed funds to the Mortgagor notwithstanding that
          the
          Escrow Account is non-interest bearing or that interest paid thereon is
          insufficient for such purposes. The
          Purchaser shall not be responsible for any losses suffered with respect
          to
          investment of funds in the Escrow Account.

         

        Section
          4.07 Permitted
          Withdrawals From Escrow Account.

        

        Withdrawals
          from the Escrow Account may be made by Company only:

        

        (i) to
          effect
          timely payments of ground rents, taxes, assessments, water rates, Primary
          Mortgage Insurance Policy premiums, if applicable, fire and hazard insurance
          premiums, condominium assessments and comparable items;

        

        (ii) to
          reimburse Company for any Servicing Advance made by Company with respect
          to a
          related Mortgage Loan but only from amounts received on the related Mortgage
          Loan which represent late payments or collections of Escrow Payments
          thereunder;

        

        (iii) to
          refund
          to the Mortgagor any funds as may be determined to be overages;

        

        (iv) for
          transfer to the Custodial Account in accordance with the terms of this
          Agreement;

        

        (v) for
          application to restoration or repair of the Mortgaged Property;

        

        (vi) to
          pay to
          the Company, or to the Mortgagor to the extent required by law, any interest
          paid on the funds deposited in the Escrow Account;

        

        (vii)
           to
          clear
          and terminate the Escrow Account on the termination of this Agreement.
          As part
          of its servicing duties, the Company shall pay to the Mortgagors interest
          on
          funds in Escrow Account, to the extent required by law, and to the extent
          that
          interest earned on funds in the Escrow Account is insufficient, shall pay
          such
          interest from its own funds, without any reimbursement therefor;
          and

        

        (viii)
           to
          pay to
          the Mortgagors or other parties Insurance Proceeds deposited in accordance
          with
          Section 4.06.

        

        Section
          4.08 Payment
          of Taxes, Insurance and Other Charges;
          Maintenance of Primary Mortgage Insurance
          Policies; Collections Thereunder.

         

        With
          respect to each Mortgage Loan, the Company shall maintain accurate records
          reflecting the status of ground rents, taxes, assessments, water rates
          and other
          charges which are or may become a lien upon the Mortgaged Property and
          the
          status of primary mortgage insurance premiums and fire and hazard insurance
          coverage and shall obtain, from time to time, all bills for the payment
          of such
          charges, including renewal premiums and shall effect payment thereof prior
          to
          the applicable penalty or termination date and at a time appropriate for
          securing maximum discounts allowable, employing for such purpose deposits
          of the
          Mortgagor in the Escrow Account which shall have been estimated and accumulated
          by the Company in amounts sufficient for such purposes, as allowed under
          the
          terms of the Mortgage or applicable law. To the extent that the Mortgage
          does
          not provide for Escrow Payments, the Company shall determine that any such
          payments are made by the Mortgagor at the time they first become due. The
          Company assumes full responsibility for the timely payment of all such
          bills and
          shall effect timely payments of all such bills irrespective of the Mortgagor's
          faithful performance in the payment of same or the making of the Escrow
          Payments
          and shall make advances from its own funds to effect such payments.

        

        The
          Company will maintain in full force and effect Primary Mortgage Insurance
          Policies issued by a Qualified Insurer with respect to each Mortgage Loan
          for
          which such coverage is herein required. Such coverage will be terminated
          only
          with the approval of Purchaser, or as required by applicable law or regulation.
          The Company will not cancel or refuse to renew any Primary Mortgage Insurance
          Policy in effect on the Closing Date that is required to be kept in force
          under
          this Agreement unless a replacement Primary Mortgage Insurance Policy for
          such
          canceled or nonrenewed policy is obtained from and maintained with a Qualified
          Insurer. The Company shall not take any action which would result in
          non-coverage under any applicable Primary Mortgage Insurance Policy of
          any loss
          which, but for the actions of the Company would have been covered thereunder.
          In
          connection with any assumption or substitution agreement entered into or
          to be
          entered into pursuant to Section 6.01, the Company shall promptly notify
          the
          insurer under the related Primary Mortgage Insurance Policy, if any, of
          such
          assumption or substitution of liability in accordance with the terms of
          such
          policy and shall take all actions which may be required by such insurer
          as a
          condition to the continuation of coverage under the Primary Mortgage Insurance
          Policy. If such Primary Mortgage Insurance Policy is terminated as a result
          of
          such assumption or substitution of liability, the Company shall obtain
          a
          replacement Primary Mortgage Insurance Policy as provided above.

        

        In
          connection with its activities as servicer, the Company agrees to prepare
          and
          present, on behalf of itself and the Purchaser, claims to the insurer under
          any
          Private Mortgage Insurance Policy in a timely fashion in accordance with
          the
          terms of such Primary Mortgage Insurance Policy and, in this regard, to
          take
          such action as shall be necessary to permit recovery under any Primary
          Mortgage
          Insurance Policy respecting a defaulted Mortgage Loan. Pursuant to Section
          4.04,
          any amounts collected by the Company under any Primary Mortgage Insurance
          Policy
          shall be deposited in the Custodial Account, subject to withdrawal pursuant
          to
          Section 4.05.

        

        Section
          4.09 Transfer
          of Accounts.

        

        The
          Company may transfer the Custodial Account or the Escrow Account to a different
          Eligible Account from time to time. Such transfer shall be made only upon
          obtaining the prior written consent of the Purchaser, which consent will
          not be
          unreasonably withheld.

        

        Section
          4.10 Maintenance
          of Hazard Insurance.

        

        The
          Company shall cause to be maintained for each Mortgage Loan fire and hazard
          insurance with extended coverage as is acceptable to Fannie Mae or FHLMC
          and
          customary in the area where the Mortgaged Property is located in an amount
          which
          is equal to the lesser of (i) the maximum insurable value of the improvements
          securing such Mortgage Loan or (ii) the greater of (a) the outstanding
          principal
          balance of the Mortgage Loan, and (b) an amount such that the proceeds
          thereof
          shall be sufficient to prevent the Mortgagor and/or the mortgagee from
          becoming
          a co-insurer. If required by the Flood Disaster Protection Act of 1973,
          as
          amended, each Mortgage Loan shall be covered by a flood insurance policy
          meeting
          the requirements of the current guidelines of the Federal Insurance
          Administration in effect with an insurance carrier acceptable to Fannie
          Mae or
          FHLMC, in an amount representing coverage not less than the least of (i)
          the
          outstanding principal balance of the Mortgage Loan, (ii) the maximum insurable
          value of the improvements securing such Mortgage Loan or (iii) the maximum
          amount of insurance which is available under the Flood Disaster Protection
          Act
          of 1973, as amended. If at any time during the term of the Mortgage Loan,
          the
          Company determines in accordance with applicable law and pursuant to the
          Fannie
          Mae Guides that a Mortgaged Property is located in a special flood hazard
          area
          and is not covered by flood insurance or is covered in an amount less than
          the
          amount required by the Flood Disaster Protection Act of 1973, as amended,
          the
          Company shall notify the related Mortgagor that the Mortgagor must obtain
          such
          flood insurance coverage, and if said Mortgagor fails to obtain the required
          flood insurance coverage within forty-five (45) days after such notification,
          the Company shall immediately force place the required flood insurance
          on the
          Mortgagor’s behalf. The Company shall also maintain on each REO Property, fire
          and hazard insurance with extended coverage in an amount which is at least
          equal
          to the maximum insurable value of the improvements which are a part of
          such
          property, and, to the extent required and available under the Flood Disaster
          Protection Act of 1973, as amended, flood insurance in an amount as provided
          above. Any amounts collected by the Company under any such policies other
          than
          amounts to be deposited in the Escrow Account and applied to the restoration
          or
          repair of the Mortgaged Property or REO Property, or released to the Mortgagor
          in accordance with Accepted Servicing Practices, shall be deposited in
          the
          Custodial Account, subject to withdrawal pursuant to Section 4.05. It is
          understood and agreed that no other additional insurance need be required
          by the
          Company of the Mortgagor or maintained on property acquired in respect
          of the
          Mortgage Loan, other than pursuant to this Agreement, the Fannie Mae Guides
          or
          such applicable state or federal laws and regulations as shall at any time
          be in
          force and as shall require such additional insurance. All such policies
          shall be
          endorsed with standard mortgagee clauses with loss payable to the Company
          and
          its successors and/or assigns and shall provide for at least thirty days
          prior
          written notice of any cancellation, reduction in the amount or material
          change
          in coverage to the Company. The Company shall not interfere with the Mortgagor's
          freedom of choice in selecting either his insurance carrier or agent, provided,
          however, that the Company shall not accept any such insurance policies
          from
          insurance companies unless such companies are Qualified Insurers.

        

        Section
          4.11 Maintenance
          of Mortgage Impairment Insurance Policy.

        

        In
          the
          event that the Company shall obtain and maintain a blanket policy issued
          by a
          Qualified Insurer insuring against hazard losses on all of the Mortgage
          Loans,
          then, to the extent such policy provides coverage in an amount equal to
          the
          amount required pursuant to Section 4.10 and otherwise complies with all
          other
          requirements of Section 4.10, it shall conclusively be deemed to have satisfied
          its obligations as set forth in Section 4.10, it being understood and agreed
          that such policy may contain a deductible clause, in which case the Company
          shall, in the event that there shall not have been maintained on the related
          Mortgaged Property or REO Property a policy complying with Section 4.10,
          and
          there shall have been a loss which would have been covered by such policy,
          deposit in the Custodial Account the amount not otherwise payable under
          the
          blanket policy because of such deductible clause. In connection with its
          activities as servicer of the Mortgage Loans, the Company agrees to prepare
          and
          present, on behalf of the Purchaser, claims under any such blanket policy
          in a
          timely fashion in accordance with the terms of such policy. Upon request
          of the
          Purchaser, the Company shall cause to be delivered to the Purchaser a certified
          true copy of such policy and shall use its best efforts to obtain a statement
          from the insurer thereunder that such policy shall in no event be terminated
          or
          materially modified without thirty (30) days' prior written notice to the
          Purchaser.

        

        Section
          4.12 Fidelity
          Bond, Errors and Omissions Insurance.

        

        The
          Company shall maintain, at its own expense, a blanket fidelity bond and
          an
          errors and omissions insurance policy, with broad coverage with responsible
          companies on all officers, employees or other persons acting in any capacity
          with regard to the Mortgage Loan to handle funds, money, documents and
          papers
          relating to the Mortgage Loan. The Fidelity Bond shall be in the form of
          the
          Mortgage Banker's Blanket Bond and shall protect and insure the Company
          against
          losses, including forgery, theft, embezzlement and fraud of such persons.
          The
          errors and omissions insurance shall protect and insure the Company against
          losses arising out of errors and omissions and negligent acts of such persons.
          Such errors and omissions insurance shall also protect and insure the Company
          against losses in connection with the failure to maintain any insurance
          policies
          required pursuant to this Agreement and the release or satisfaction of
          a
          Mortgage Loan without having obtained payment in full of the indebtedness
          secured thereby. No provision of this Section 4.12 requiring the Fidelity
          Bond
          or errors and omissions insurance shall diminish or relieve the Company
          from its
          duties and obligations as set forth in this Agreement. The minimum coverage
          under any such bond and insurance policy shall be at least equal to the
          corresponding amounts required by Fannie Mae in the Fannie Mae Guides.
          Upon
          request by the Purchaser, the Company shall deliver to the Purchaser a
          certificate from the surety and the insurer as to the existence of the
          Fidelity
          Bond and errors and omissions insurance policy and shall obtain a statement
          from
          the surety and the insurer that such Fidelity Bond or insurance policy
          shall in
          no event be terminated or materially modified without thirty (30) days'
          prior
          written notice to the Purchaser. The Company shall notify the Purchaser
          within
          five (5) business days of receipt of notice that such Fidelity Bond or
          insurance
          policy will be, or has been, materially modified or terminated. The Purchaser
          (or any party having the status of Purchaser hereunder) and any subsidiary
          thereof and their successors or assigns as their interests may appear must
          be
          named as loss payees on the Fidelity Bond and as additional insured on
          the
          errors and omissions policy. Upon request by Purchaser, Company shall provide
          Purchaser with an insurance certificate certifying coverage under this
          Section
          4.12, and will provide an update to such certificate upon request, or upon
          renewal or material modification of coverage.

        

        Section
          4.13 Title,
          Management and Disposition of REO Property.

        

        In
          the
          event that title to the Mortgaged Property is acquired in foreclosure or
          by deed
          in lieu of foreclosure, the deed or certificate of sale shall be taken
          in the
          name of the Purchaser or its designee, or in the event the Purchaser or
          its
          designee is not authorized or permitted to hold title to real property
          in the
          state where the REO Property is located, or would be adversely affected
          under
          the "doing business" or tax laws of such state by so holding title, the
          deed or
          certificate of sale shall be taken in the name of such Person or Persons
          as
          shall be consistent with an opinion of counsel obtained by the Company
          from an
          attorney duly licensed to practice law in the state where the REO Property
          is
          located. Any Person or Persons holding such title other than the Purchaser
          shall
          acknowledge in writing that such title is being held as nominee for the
          benefit
          of the Purchaser.

        

        The
          Company shall notify the Purchaser in accordance with the Fannie Mae Guides
          of
          each acquisition of REO Property upon such acquisition (and, in any event,
          shall
          provide notice of the consummation of any foreclosure sale within three
          (3)
          Business Days of the date Company receives notice of such consummation),
          together with a copy of the drive by appraisal or brokers price opinion
          of the
          Mortgaged Property obtained in connection with such acquisition. The Purchaser
          shall thereafter assume the responsibility for marketing such REO property
          and
          shall be disposed of by the Purchaser. No Servicing Fee shall be assessed
          or
          otherwise accrue on any REO Property from and after the date on which it
          becomes
          an REO Property. 

        

        The
          Company shall, either itself or through an agent selected by the Company,
          and in
          accordance with the Fannie Mae Guides manage, conserve, protect and operate
          each
          REO Property in the same manner that it manages, conserves, protects and
          operates other foreclosed property for its own account, and in the same
          manner
          that similar property in the same locality as the REO Property is managed,
          until
          such time the REO Property is conveyed to the Purchaser for final disposition.
          The Company shall cause each REO Property to be inspected promptly upon
          the
          acquisition of title thereto and shall cause each REO Property to be inspected
          at least monthly thereafter or more frequently as required by the circumstances.
          The Company shall make or cause to be made a written report of each such
          inspection and such reports shall be retained in the Mortgage File. The
          Company
          shall file
          all
          necessary mortgage insurance claims. 

        

        Section
          4.14 Notification
          of Maturity Date.

        

        With
          respect to each Mortgage Loan, the Company shall execute and deliver to
          the
          Mortgagor any and all necessary notices required under applicable law and
          the
          terms of the related Mortgage Note and Mortgage regarding the maturity
          date if
          required under applicable law.

        

        ARTICLE
          V

        

        PAYMENTS
          TO THE PURCHASER

        

        Section
          5.01 Distributions.

        

        On
          each
          Remittance Date, the Company shall distribute by wire transfer of immediately
          available funds to the Purchaser (i) all amounts credited to the Custodial
          Account as of the close of business on the preceding Determination Date,
          net of
          charges against or withdrawals from the Custodial Account pursuant to Section
          4.05, plus (ii) all Monthly Advances, if any, which the Company is obligated
          to
          distribute pursuant to Section 5.03, plus, (iii) interest at the Mortgage
          Loan
          Remittance Rate on any Principal Prepayment from the date of such Principal
          Prepayment through the end of the month for which disbursement is made
          provided
          that the Company’s obligation as to payment of such interest shall be limited to
          the Servicing Fee earned during the month of the distribution, minus (iv)
          any
          amounts attributable to Monthly Payments collected but due on a Due Date
          or
          Dates subsequent to the preceding Determination Date, which amounts shall
          be
          remitted on the Remittance Date next succeeding the Due Period for such
          amounts.
          It is understood that, by operation of Section 4.04, the remittance on
          the first
          Remittance Date with respect to Mortgage Loans purchased pursuant to the
          related
          Term Sheet is to include principal collected after the Cut-off Date through
          the
          preceding Determination Date plus interest, adjusted to the Mortgage Loan
          Remittance Rate collected through such Determination Date exclusive of
          any
          portion thereof allocable to the period prior to the Cut-off Date, with
          the
          adjustments specified in clauses (ii), (iii) and (iv) above.

        

        With
          respect to any remittance received by the Purchaser after the Remittance
          Date,
          the Company shall pay to the Purchaser interest on any such late payment
          at an
          annual rate equal to the Prime Rate, adjusted as of the date of each change,
          plus three (3) percentage points, but in no event greater than the maximum
          amount permitted by applicable law. Such interest shall cover the period
          commencing with the day following the Business Day such payment was due
          and
          ending with the Business Day on which such payment is made to the Purchaser,
          both inclusive. The payment by the Company of any such interest shall not
          be
          deemed an extension of time for payment or a waiver of any Event of Default
          by
          the Company. On each Remittance Date, the Company shall provide a remittance
          report detailing all amounts being remitted pursuant to this Section
          5.01.

        

        Section
          5.02 Statements
          to the Purchaser.

        

        The
          Company shall furnish to Purchaser an individual loan accounting report,
          as of
          the last Business Day of each month, in the Company's assigned loan number
          order
          to document Mortgage Loan payment activity on an individual Mortgage Loan
          basis.
          With respect to each month, the corresponding individual loan accounting
          report
          shall be received by the Purchaser no later than the fifth Business Day
          of the
          following month on a disk or tape or other computer-readable format in
          such
          format as may be mutually agreed upon by both Purchaser and Company, and
          no
          later than the fifth Business Day of the following month in hard copy,
          and shall
          contain the following:

        

        (i)
          With
          respect to each Monthly Payment, the amount of such remittance allocable
          to
          principal (including a separate breakdown of any Principal Prepayment,
          including
          the date of such prepayment, and any prepayment penalties or premiums,
          along
          with a detailed report of interest on principal prepayment amounts remitted
          in
          accordance with Section 4.04);

        

        (ii)
          with
          respect to each Monthly Payment, the amount of such remittance allocable
          to
          interest;

        

        (iii)
          the
          amount of servicing compensation received by the Company during the prior
          distribution period;

        

        (iv)
          the
          aggregate Stated Principal Balance of the Mortgage Loans;

        

        (v)
          the
          aggregate of any expenses reimbursed to the Company during the prior
          distribution period pursuant to Section 4.05; 

        

        (vi)
          The
          number and aggregate outstanding principal balances of Mortgage Loans (a)
          delinquent (1) 30 to 59 days, (2) 60 to 89 days, (3) 90 days or more; (b)
          as to
          which foreclosure has commenced; and (c) as to which REO Property has been
          acquired; and

        

        The
          Company shall also provide a trial balance, sorted in Purchaser's assigned
          loan
          number order, in the form of Exhibit E hereto, with each such
          Report.

        

        The
          Company shall prepare and file any and all information statements or other
          filings required to be delivered to any governmental taxing authority or
          to
          Purchaser pursuant to any applicable law with respect to the Mortgage Loans
          and
          the transactions contemplated hereby. In addition, the Company shall provide
          Purchaser with such information concerning the Mortgage Loans as is necessary
          for Purchaser to prepare its federal income tax return as Purchaser may
          reasonably request from time to time.

        

        In
          addition, not more than sixty (60) days after the end of each calendar
          year, the
          Company shall furnish to each Person who was a Purchaser at any time during
          such
          calendar year an annual statement in accordance with the requirements of
          applicable federal income tax law as to the aggregate of remittances for
          the
          applicable portion of such year.

        

        Section
          5.03 Monthly
          Advances by the Company.

        

        Not
          later
          than the close of business on the Business Day preceding each Remittance
          Date,
          the Company shall deposit in the Custodial Account an amount equal to all
          payments not previously advanced by the Company, whether or not deferred
          pursuant to Section 4.01, of principal (due after the Cut-off Date) and
          interest
          not allocable to the period prior to the Cut-off Date, adjusted to the
          Mortgage
          Loan Remittance Rate, which were due on a Mortgage Loan and delinquent
          at the
          close of business on the related Determination Date;
          provided, however that the Company shall not be obligated to advance any
          shortfall arising as a result of application of the Soldiers’ and Sailors’ Civil
          Relief Act of 1940 to any Mortgage Loan. .

        

        The
          Company's obligation to make such Monthly Advances as to any Mortgage Loan
          will
          continue through the last Monthly Payment due prior to the payment in full
          of
          the Mortgage Loan, or through the Remittance Date prior to the date on
          which the
          Mortgaged Property liquidates (including Insurance Proceeds, proceeds from
          the
          sale of REO Property or Condemnation Proceeds) with respect to the Mortgage
          Loan
          unless the Company deems such advance to be a Nonrecoverable Advance. In
          such
          event, the Company shall deliver to the Purchaser an Officer's Certificate
          of
          the Company to the effect that an officer of the Company has reviewed the
          related Mortgage File and has made the reasonable determination that any
          additional advances are nonrecoverable. 

        

        Section
          5.04 Liquidation
          Reports.

        

        Upon
          the
          foreclosure sale of any Mortgaged Property or the acquisition thereof by
          the
          Purchaser pursuant to a deed-in-lieu of foreclosure, the Company shall
          submit to
          the Purchaser a liquidation report with respect to such Mortgaged Property
          in a
          form mutually acceptable to Company and Purchaser. The Company shall also
          provide reports on the status of REO Property containing such information
          as
          Purchaser may reasonably require.

        

        Section
          5.05 Prepayment
          Interest Shortfalls.

        

        Not
          later
          than the close of business on the Business Day preceding each Remittance
          Date in
          the month following the related Prepayment Period, the Company shall deposit
          in
          the Custodial Account an amount equal to any Prepayment Interest Shortfalls
          with
          respect to such Prepayment Period, which in the aggregate shall not exceed
          the
          Company’s aggregate Servicing Fee received with respect to the related Due
          Period.

         

        ARTICLE
          VI

        

        GENERAL
          SERVICING PROCEDURES

        

        Section
          6.01 Assumption
          Agreements.

        

        The
          Company will, to the extent it has knowledge of any conveyance or prospective
          conveyance by any Mortgagor of the Mortgaged Property (whether by absolute
          conveyance or by contract of sale, and whether or not the Mortgagor remains
          or
          is to remain liable under the Mortgage Note and/or the Mortgage), exercise
          its
          rights to accelerate the maturity of such Mortgage Loan under any "due-on-sale"
          clause to the extent permitted by law; provided, however, that the Company
          shall
          not exercise any such rights if prohibited by law or the terms of the Mortgage
          Note from doing so or if the exercise of such rights would impair or threaten
          to
          impair any recovery under the related Primary Mortgage Insurance Policy,
          if any.
          If the Company reasonably believes it is unable under applicable law to
          enforce
          such "due-on-sale" clause, the Company, with the approval of the Purchaser,
          will
          enter into an assumption agreement with the person to whom the Mortgaged
          Property has been conveyed or is proposed to be conveyed, pursuant to which
          such
          person becomes liable under the Mortgage Note and, to the extent permitted
          by
          applicable state law, the Mortgagor remains liable thereon. Where an assumption
          is allowed pursuant to this Section 6.01, the Company, with the prior consent
          of
          the Purchaser and the primary mortgage insurer, if any, is authorized to
          enter
          into a substitution of liability agreement with the person to whom the
          Mortgaged
          Property has been conveyed or is proposed to be conveyed pursuant to which
          the
          original mortgagor is released from liability and such Person is substituted
          as
          mortgagor and becomes liable under the related Mortgage Note. Any such
          substitution of liability agreement shall be in lieu of an assumption agreement.
          

        

        In
          connection with any such assumption or substitution of liability, the Company
          shall follow the underwriting practices and procedures of the Company.
          With
          respect to an assumption or substitution of liability, the Mortgage Interest
          Rate borne by the related Mortgage Note, the amount of the Monthly Payment
          and
          the maturity date may not be changed (except pursuant to the terms of the
          Mortgage Note). If the credit of the proposed transferee does not meet
          such
          underwriting criteria, the Company diligently shall, to the extent permitted
          by
          the Mortgage or the Mortgage Note and by applicable law, accelerate the
          maturity
          of the Mortgage Loan. The Company shall notify the Purchaser that any such
          substitution of liability or assumption agreement has been completed by
          forwarding to the Purchaser the original of any such substitution of liability
          or assumption agreement, which document shall be added to the related Mortgage
          File and shall, for all purposes, be considered a part of such Mortgage
          File to
          the same extent as all other documents and instruments constituting a part
          thereof. All fees collected by the Company for entering into an assumption
          or
          substitution of liability agreement shall belong to the Company.

        

        Notwithstanding
          the foregoing paragraphs of this Section or any other provision of this
          Agreement, the Company shall not be deemed to be in default, breach or
          any other
          violation of its obligations hereunder by reason of any assumption of a
          Mortgage
          Loan by operation of law or any assumption which the Company may be restricted
          by law from preventing, for any reason whatsoever. For purposes of this
          Section
          6.01, the term "assumption" is deemed to also include a sale of the Mortgaged
          Property subject to the Mortgage that is not accompanied by an assumption
          or
          substitution of liability agreement.

        

        Section
          6.02 Satisfaction
          of Mortgages and Release of Mortgage Files.

        

        Upon
          the
          payment in full of any Mortgage Loan, or the receipt by the Company of
          a
          notification that payment in full will be escrowed in a manner customary
          for
          such purposes, the Company will immediately notify the Purchaser by a
          certification, which certification shall include a statement to the effect
          that
          all amounts received or to be received in connection with such payment
          which are
          required to be deposited in the Custodial Account pursuant to Section 4.04
          have
          been or will be so deposited, of a Servicing Officer and shall request
          delivery
          to it of the portion of the Mortgage File held by the Purchaser. The Purchaser
          shall no later than five Business Days after receipt of such certification
          and
          request, release or cause to be released to the Company, the related Mortgage
          Loan Documents and, upon its receipt of such documents, the Company shall
          promptly prepare and deliver to the Purchaser the requisite satisfaction
          or
          release. No later than five (5) Business Days following its receipt of
          such
          satisfaction or release, the Purchaser shall deliver, or cause to be delivered,
          to the Company the release or satisfaction properly executed by the owner
          of
          record of the applicable mortgage or its duly appointed attorney in fact.
          No
          expense incurred in connection with any instrument of satisfaction or deed
          of
          reconveyance shall be chargeable to the Custodial Account.

        

        In
          the
          event the Company satisfies or releases a Mortgage without having obtained
          payment in full of the indebtedness secured by the Mortgage or should it
          otherwise prejudice any right the Purchaser may have under the mortgage
          instruments, the Company, upon written demand, shall remit within two (2)
          Business Days to the Purchaser the then outstanding principal balance of
          the
          related Mortgage Loan by deposit thereof in the Custodial Account. The
          Company
          shall maintain the Fidelity Bond and errors and omissions insurance insuring
          the
          Company against any loss it may sustain with respect to any Mortgage Loan
          not
          satisfied in accordance with the procedures set forth herein.

        

        From
          time
          to time and as appropriate for the servicing or foreclosure of the Mortgage
          Loan, including for the purpose of collection under any Primary Mortgage
          Insurance Policy, the Purchaser shall, upon request of the Company and
          delivery
          to the Purchaser of a servicing receipt signed by a Servicing Officer,
          release
          the portion of the Mortgage File held by the Purchaser to the Company.
          Such
          servicing receipt shall obligate the Company to return the related Mortgage
          documents to the Purchaser when the need therefor by the Company no longer
          exists, unless the Mortgage Loan has been liquidated and the Liquidation
          Proceeds relating to the Mortgage Loan have been deposited in the Custodial
          Account or the Mortgage File or such document has been delivered to an
          attorney,
          or to a public trustee or other public official as required by law, for
          purposes
          of initiating or pursuing legal action or other proceedings for the foreclosure
          of the Mortgaged Property either judicially or non-judicially, and the
          Company
          has delivered to the Purchaser a certificate of a Servicing Officer certifying
          as to the name and address of the Person to which such Mortgage File or
          such
          document was delivered and the purpose or purposes of such delivery. Upon
          receipt of a certificate of a Servicing Officer stating that such Mortgage
          Loan
          was liquidated, the servicing receipt shall be released by the Purchaser
          to the
          Company.

        

        Section
          6.03 Servicing
          Compensation.

        

        As
          compensation for its services hereunder, the Company shall be entitled
          to
          withdraw from the Custodial Account (to the extent of interest payments
          collected on the Mortgage Loans) or to retain from interest payments collected
          on the Mortgage Loans, the amounts provided for as the Company's Servicing
          Fee,
          subject to payment of compensating interest on Principal Prepayments as
          capped
          by the Servicing Fee pursuant to Section 5.01 (iii). Additional servicing
          compensation in the form of assumption fees, as provided in Section 6.01,
          and
          late payment charges or otherwise shall be retained by the Company to the
          extent
          not required to be deposited in the Custodial Account. No Servicing Fee
          shall be
          payable in connection with partial Monthly Payments. The Company shall
          be
          required to pay all expenses incurred by it in connection with its servicing
          activities hereunder and shall not be entitled to reimbursement therefor
          except
          as specifically provided for.

        

        Section
          6.04 Annual
          Statement as to Compliance.

        

        The
          Company will deliver to the Purchaser not later than 90 days following
          the end
          of each fiscal year of the Company beginning in March 2004, an Officers'
          Certificate stating, as to each signatory thereof, that (i) a review of
          the
          activities of the Company during the preceding calendar year and of performance
          under this Agreement has been made under such officers' supervision, and
          (ii) to
          the best of such officers' knowledge, based on such review, the Company
          has
          fulfilled all of its obligations under this Agreement throughout such year,
          or,
          if there has been a default in the fulfillment of any such obligation,
          specifying each such default known to such officers and the nature and
          status of
          cure provisions thereof. Copies of such statement shall be provided by
          the
          Company to the Purchaser upon request.

        

        Section
          6.05 Annual
          Independent Certified Public Accountants' Servicing Report.

        

        Within
          ninety (90) days of Company's fiscal year end beginning in March 2004,
          the
          Company at its expense shall cause a firm of independent public accountants
          which is a member of the American Institute of Certified Public Accountants
          to
          furnish a statement to the Purchaser to the effect that such firm has examined
          certain documents and records relating to the Company's servicing of mortgage
          loans of the same type as the Mortgage Loans pursuant to servicing agreements
          substantially similar to this Agreement, which agreements may include this
          Agreement, and that, on the basis of such an examination, conducted
          substantially in the uniform single audit program for mortgage bankers,
          such
          firm is of the opinion that the Company's servicing has been conducted
          in
          compliance with the agreements examined pursuant to this Section 6.05,
          except
          for (i) such exceptions as such firm shall believe to be immaterial, and
          (ii)
          such other exceptions as shall be set forth in such statement. Copies of
          such
          statement shall be provided by the Company to the Purchaser. In addition,
          on an
          annual basis, Company shall provided Purchaser with copies of its audited
          financial statements. 

        

        Section
          6.06 Purchaser's
          Right to Examine Company Records.

        

        The
          Purchaser shall have the right to examine and audit upon reasonable notice
          to
          the Company, during business hours or at such other times as might be reasonable
          under applicable circumstances, any and all of the books, records, documentation
          or other information of the Company, or held by another for the Company
          or on
          its behalf or otherwise, which relates to the performance or observance
          by the
          Company of the terms, covenants or conditions of this Agreement.

        

        The
          Company shall provide to the Purchaser and any supervisory agents or examiners
          representing a state or federal governmental agency having jurisdiction
          over the
          Purchaser, including but not limited to OTS, FDIC and other similar entities,
          access to any documentation regarding the Mortgage Loans in the possession
          of
          the Company which may be required by any applicable regulations. Such access
          shall be afforded without charge, upon reasonable request, during normal
          business hours and at the offices of the Company, and in accordance with
          the
          FDIC, OTS, or any other similar federal or state regulations, as
          applicable.

        

        ARTICLE
          VII

        

        REPORTS
          TO BE PREPARED BY SERVICER

        

        Section
          7.01 Company
          Shall Provide Information as Reasonably Required.

        

        The
          Company shall furnish to the Purchaser during the term of this Agreement,
          such
          periodic, special or other reports, information or documentation, whether
          or not
          provided for herein, as shall be necessary, reasonable or appropriate in
          respect
          to the Purchaser, or otherwise in respect to the Mortgage Loans and the
          performance of the Company under this Agreement, including any reports,
          information or documentation reasonably required to comply with any regulations
          regarding any supervisory agents or examiners of the Purchaser all such
          reports
          or information to be as provided by and in accordance with such applicable
          instructions and directions as the Purchaser may reasonably request in
          relation
          to this Agreement or the performance of the Company under this Agreement.
          The
          Company agrees to execute and deliver all such instruments and take all
          such
          action as the Purchaser, from time to time, may reasonably request in order
          to
          effectuate the purpose and to carry out the terms of this
          Agreement.

        

        In
          connection with marketing the Mortgage Loans, the Purchaser may make available
          to a prospective purchaser audited financial statements of the Company
          for the
          most recently completed two (2) fiscal years for which such statements
          are
          available, as well as a Consolidated Statement of Condition at the end
          of the
          last two (2) fiscal years covered by any Consolidated Statement of Operations.
          If it has not already done so, the Company shall furnish promptly to the
          Purchaser or a prospective purchaser copies of the statements specified
          above.

        

        The
          Company shall make reasonably available to the Purchaser or any prospective
          Purchaser a knowledgeable financial or accounting officer for the purpose
          of
          answering questions and to permit any prospective purchaser to inspect
          the
          Company’s servicing facilities for the purpose of satisfying such prospective
          purchaser that the Company has the ability to service the Mortgage Loans
          as
          provided in this Agreement.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        ARTICLE
          VIII

        

        THE
          SERVICER

        

        Section
          8.01 Indemnification;
          Third Party Claims.

        

        The
          Company agrees to indemnify the Purchaser and hold it harmless against
          any and
          all claims, losses, damages, penalties, fines, forfeitures, legal fees
          and
          related costs, judgments, and any other costs, fees and expenses that the
          Purchaser may sustain in any way related to the failure of the Company
          to
          observe and perform its duties, obligations, covenants, and agreements
          to
          service the Mortgage Loans in strict compliance with the terms of this
          Agreement. The Company agrees to indemnify the Purchaser and hold it harmless
          against any and all claims, losses, damages, penalties, fines, forfeitures,
          legal fees and related costs, judgments, and any other costs, fees and
          expenses
          that the Purchaser may sustain in any way from any claim, demand, defense
          or
          assertion based on or grounded upon, or resulting from any assertion based
          on,
          grounded upon or resulting from a breach or alleged breach of any of the
          representation or warranty set forth in Sections 3.01 or 3.02 of this Agreement.
          The Company shall immediately notify the Purchaser if a claim is made by
          a third
          party against Company with respect to this Agreement or the Mortgage Loans,
          assume (with the consent of the Purchaser) the defense of any such claim
          and pay
          all expenses in connection therewith, including counsel fees, whether or
          not
          such claim is settled prior to judgment, and promptly pay, discharge and
          satisfy
          any judgment or decree which may be entered against it or the Purchaser
          in
          respect of such claim. The Company shall follow any written instructions
          received from the Purchaser in connection with such claim. The Purchaser
          shall
          promptly reimburse the Company for all amounts advanced by it pursuant
          to the
          two preceding sentences except when the claim relates to the failure of
          the
          Company to service and administer the Mortgages in strict compliance with
          the
          terms of this Agreement, the breach of representation or warranty set forth
          in
          Sections 3.01 or 3.02, or the negligence, bad faith or willful misconduct
          of
          Company. The provisions of this Section 8.01 shall survive termination
          of this
          Agreement.

        

        Section
          8.02 Merger
          or Consolidation of the Company.

        

        The
          Company will keep in full effect its existence, rights and franchises as
          a
          corporation under the laws of the state of its incorporation except as
          permitted
          herein, and will obtain and preserve its qualification to do business as
          a
          foreign corporation in each jurisdiction in which such qualification is
          or shall
          be necessary to protect the validity and enforceability of this Agreement,
          or
          any of the Mortgage Loans and to perform its duties under this
          Agreement.

        

        Any
          Person into which the Company may be merged or consolidated, or any corporation
          resulting from any merger, conversion or consolidation to which the Company
          shall be a party, or any Person succeeding to the business of the Company
          whether or not related to loan servicing, shall be the successor of the
          Company
          hereunder, without the execution or filing of any paper or any further
          act on
          the part of any of the parties hereto, anything herein to the contrary
          notwithstanding; provided, however, that the successor or surviving Person
          shall
          be an institution (i) having a GAAP net worth of not less than $25,000,000,
          (ii)
          the deposits of which are insured by the FDIC, SAIF and/or BIF, and which
          is a
          HUD-approved mortgagee whose primary business is in origination and servicing
          of
          first lien mortgage loans, and (iii) who is a Fannie Mae or FHLMC approved
          seller/servicer in good standing.

        

        Section
          8.03 Limitation
          on Liability of the Company and Others.

        

        Neither
          the Company nor any of the officers, employees or agents of the Company
          shall be
          under any liability to the Purchaser 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 made in good faith; provided, however, that this provision
          shall not
          protect the Company or any such person against any breach of warranties
          or
          representations made herein, or failure to perform its obligations in strict
          compliance with any standard of care set forth in this Agreement, or any
          liability which would otherwise be imposed by reason of negligence, bad
          faith or
          willful misconduct, or any breach of the terms and conditions of this Agreement.
          The Company and any officer, employee or agent of the Company may rely
          in good
          faith on any document of any kind prima facie properly executed and submitted
          by
          the Purchaser respecting any matters arising hereunder. The Company shall
          not be
          under any obligation to appear in, prosecute or defend any legal action
          which is
          not incidental to its duties to service the Mortgage Loans in accordance
          with
          this Agreement and which in its reasonable opinion may involve it in any
          expenses or liability; provided, however, that the Company may, with the
          consent
          of the Purchaser, undertake any such action which it may deem necessary
          or
          desirable in respect to this Agreement and the rights and duties of the
          parties
          hereto. In such event, the reasonable legal expenses and costs of such
          action
          and any liability resulting therefrom shall be expenses, costs and liabilities
          for which the Purchaser will be liable, and the Company shall be entitled
          to be
          reimbursed therefor from the Purchaser upon written demand.

        

        Section
          8.04 Company
          Not to Assign or Resign.

        

        The
          Company shall not assign this Agreement or resign from the obligations
          and
          duties hereby imposed on it except by mutual consent of the Company and
          the
          Purchaser or upon the determination that its duties hereunder are no longer
          permissible under applicable law and such incapacity cannot be cured by
          the
          Company. Any such determination permitting the resignation of the Company
          shall
          be evidenced by an Opinion of Counsel to such effect delivered to the Purchaser
          which Opinion of Counsel shall be in form and substance acceptable to the
          Purchaser. No such resignation shall become effective until a successor
          shall
          have assumed the Company's responsibilities and obligations hereunder in
          the
          manner provided in Section 11.01.

        

        Section
          8.05 No
          Transfer of Servicing.

        

        With
          respect to the retention of the Company to service the Mortgage Loans hereunder,
          the Company acknowledges that the Purchaser has acted in reliance upon
          the
          Company's independent status, the adequacy of its servicing facilities,
          plan,
          personnel, records and procedures, its integrity, reputation and financial
          standing and the continuance thereof. Without in any way limiting the generality
          of this Section, the Company shall not either assign this Agreement or
          the
          servicing hereunder or delegate its rights or duties hereunder or any portion
          thereof, or sell or otherwise dispose of all or substantially all of its
          property or assets, without the prior written approval of the Purchaser,
          which
          consent shall be granted or withheld in the Purchaser's sole
          discretion.

        

        Without
          in any way limiting the generality of this Section 8.05, in the event that
          the
          Company either shall assign this Agreement or the servicing responsibilities
          hereunder or delegate its duties hereunder or any portion thereof without
          (i)
          satisfying the requirements set forth herein or (ii) the prior written
          consent
          of the Purchaser, then the Purchaser shall have the right to terminate
          this
          Agreement, without any payment of any penalty or damages and without any
          liability whatsoever to the Company (other than with respect to accrued
          but
          unpaid Servicing Fees and Servicing Advances remaining unpaid) or any third
          party. 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        ARTICLE
          IX

        

        DEFAULT

        

        Section
          9.01 Events
          of Default.

        

        In
          case
          one or more of the following Events of Default by the Company shall occur
          and be
          continuing, that is to say:

        

        (i)
          any
          failure by the Company to remit to the Purchaser any payment required to
          be made
          under the terms of this Agreement which continues unremedied for a period
          of one
          (1) Business Day; or

        

        (ii)
          failure on the part of the Company duly to observe or perform in any material
          respect any other of the covenants or agreements on the part of the Company
          set
          forth in this Agreement which continues unremedied for a period of thirty
          (30)
          days after the date on which written notice of such failure, requiring
          the same
          to be remedied, shall have been given to the Company by the Purchaser;
          or

        

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

        

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

        

        (v)
          the
          Company shall admit in writing its inability to pay its debts generally
          as they
          become due, file a petition to take advantage of any applicable insolvency
          or
          reorganization statute, make an assignment for the benefit of its creditors,
          or
          voluntarily suspend payment of its obligations; or

        

        (vi)
          Company ceases to be approved by either Fannie Mae or FHLMC as a mortgage
          loan
          seller or servicer for more than thirty days; or

        

        (vii)
          the
          Company attempts to assign its right to servicing compensation hereunder
          or the
          Company attempts, without the consent of the Purchaser, to sell or otherwise
          dispose of all or substantially all of its property or assets or to assign
          this
          Agreement or the servicing responsibilities hereunder or to delegate its
          duties
          hereunder or any portion thereof; or

        

        (viii)
          the Company ceases to be (a) licensed to service first lien residential
          mortgage
          loans in any jurisdiction in which a Mortgaged Property is located and
          such
          licensing is required, and (b) qualified to transact business in any
          jurisdiction where it is currently so qualified, but only to the extent
          such
          non-qualification materially and adversely affects the Company's ability
          to
          perform its obligations hereunder; or

        

        (ix)
          the
          Company fails to meet the eligibility criteria set forth in the last sentence
          of
          Section 8.02.

        

        Then,
          and
          in each and every such case, so long as an Event of Default shall not have
          been
          remedied, the Purchaser, by notice in writing to the Company (except in
          the case
          of an Event of Default under clauses (iii), (iv) or (v) above, in which
          case,
          automatically and without notice) Company may, in addition to whatever
          rights
          the Purchaser may have under Sections 3.03 and 8.01 and at law or equity
          or to
          damages, including injunctive relief and specific performance, terminate
          all the
          rights and obligations of the Company under this Agreement and in and to
          the
          Mortgage Loans and the proceeds thereof without compensating the Company
          for the
          same. On or after the receipt by the Company of such written notice (or,
          in the
          case of an Event of Default under clauses (iii), (iv) or (v) above, in
          which
          case, automatically and without notice), all authority and power of the
          Company
          under this Agreement, whether with respect to the Mortgage Loans or otherwise,
          shall pass to and be vested in the successor appointed pursuant to Section
          11.01. Upon written request from the Purchaser, the Company shall prepare,
          execute and deliver, any and all documents and other instruments, place
          in such
          successor's possession all Mortgage Files, and do or accomplish all other
          acts
          or things necessary or appropriate to effect the purposes of such notice
          of
          termination, whether to complete the transfer and endorsement or assignment
          of
          the Mortgage Loans and related documents, or otherwise, at the Company's
          sole
          expense. The Company agrees to cooperate with the Purchaser and such successor
          in effecting the termination of the Company's responsibilities and rights
          hereunder, including, without limitation, the transfer to such successor
          for
          administration by it of all cash amounts which shall at the time be credited
          by
          the Company to the Custodial Account or Escrow Account or thereafter received
          with respect to the Mortgage Loans or any REO Property.

        

        Section
          9.02 Waiver
          of Defaults.

        

        The
          Purchaser may waive only by written notice any default by the Company in
          the
          performance of its obligations hereunder and its consequences. Upon any
          such
          waiver of a past default, such default shall cease to exist, and any Event
          of
          Default arising therefrom shall be deemed to have been remedied for every
          purpose of this Agreement. No such waiver shall extend to any subsequent
          or
          other default or impair any right consequent thereon except to the extent
          expressly so waived in writing.

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        ARTICLE
          X

        

        TERMINATION

        

        Section
          10.01 Termination.

         

        The
          respective obligations and responsibilities of the Company shall terminate
          upon:
          (i) the later of the final payment or other liquidation (or any advance
          with
          respect thereto) of the last Mortgage Loan and the disposition of all remaining
          REO Property and the remittance of all funds due hereunder; or (ii) by
          mutual
          consent of the Company and the Purchaser in writing; or (iii) termination
          with
          cause under the terms of this Agreement.

        

        ARTICLE
          XI

        

        MISCELLANEOUS
          PROVISIONS

        

        Section
          11.01 Successor
          to the Company.

        

        Prior
          to
          termination of Company's responsibilities and duties under this Agreement
          pursuant to Sections 4.13, 8.04, 9.01, 10.01 (ii) or (iii), the Purchaser
          shall
          (i) succeed to and assume all of the Company's responsibilities, rights,
          duties
          and obligations under this Agreement, or (ii) appoint a successor having
          the
          characteristics set forth in Section 8.02 hereof and which shall succeed
          to all
          rights and assume all of the responsibilities, duties and liabilities of
          the
          Company under this Agreement prior to the termination of Company's
          responsibilities, duties and liabilities under this Agreement. In connection
          with such appointment and assumption, the Purchaser may make such arrangements
          for the compensation of such successor out of payments on Mortgage Loans
          as the
          Purchaser and such successor shall agree. In the event that the Company's
          duties, responsibilities and liabilities under this Agreement should be
          terminated pursuant to the aforementioned Sections, the Company shall discharge
          such duties and responsibilities during the period from the date it acquires
          knowledge of such termination until the effective date thereof with the
          same
          degree of diligence and prudence which it is obligated to exercise under
          this
          Agreement, and shall take no action whatsoever that might impair or prejudice
          the rights or financial condition of its successor. The resignation or
          removal
          of Company pursuant to the aforementioned Sections shall not become effective
          until a successor shall be appointed pursuant to this Section and shall
          in no
          event relieve the Company of the representations and warranties made pursuant
          to
          Sections 3.01, 3.02 and 3.03 and the remedies available to the Purchaser
          thereunder and under Section 8.01, it being understood and agreed that
          the
          provisions of such Sections 3.01, 3.02, 3.03 and 8.01 shall be applicable
          to the
          Company notwithstanding any such resignation or termination of the Company,
          or
          the termination of this Agreement.

        

        Any
          successor appointed as provided herein shall execute, acknowledge and deliver
          to
          the Company and to the Purchaser an instrument accepting such appointment,
          whereupon such successor shall become fully vested with all the rights,
          powers,
          duties, responsibilities, obligations and liabilities of the Company, with
          like
          effect as if originally named as a party to this Agreement. Any termination
          or
          resignation of the Company or this Agreement pursuant to Section 4.13,
          8.04,
          9.01 or 10.01 shall not affect any claims that the Purchaser may have against
          the Company arising prior to any such termination or resignation.

        

        The
          Company shall promptly deliver to the successor the funds in the Custodial
          Account and the Escrow Account and the Mortgage Files and related documents
          and
          statements held by it hereunder and the Company shall account for all funds.
          The
          Company shall execute and deliver such instruments and do such other things
          all
          as may reasonably be required to more fully and definitely vest and confirm
          in
          the successor all such rights, powers, duties, responsibilities, obligations
          and
          liabilities of the Company. The successor shall make arrangements as it
          may deem
          appropriate to reimburse the Company for unrecovered Servicing Advances
          which
          the successor retains hereunder and which would otherwise have been recovered
          by
          the Company pursuant to this Agreement but for the appointment of the successor
          servicer.

        

        Upon
          a
          successor's acceptance of appointment as such, the Company shall notify
          by mail
          the Purchaser of such appointment.

        

        Section
          11.02 Amendment.

        

        This
          Agreement may be amended from time to time by the Company and the Purchaser
          by
          written agreement signed by the Company and the Purchaser.

        

        Section
          11.03 Recordation
          of Agreement.

        

        To
          the
          extent permitted by applicable law, this Agreement is subject to recordation
          in
          all appropriate public offices for real property records in all the counties
          or
          other comparable jurisdictions in which any 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 Company at the Company's
          expense on direction of the Purchaser accompanied by an opinion of counsel
          to
          the effect that such recordation materially and beneficially affects the
          interest of the Purchaser or is necessary for the administration or servicing
          of
          the Mortgage Loans.

        

        Section
          11.04 Governing
          Law.

        

        This
          Agreement and the related Term Sheet shall be governed by and construed
          in
          accordance with the laws of the State of New York except to the extent
          preempted
          by Federal law. The obligations, rights and remedies of the parties hereunder
          shall be determined in accordance with such laws.

        

        Section
          11.05 Notices.

        

        Any
          demands, notices or other communications permitted or required hereunder
          shall
          be in writing and shall be deemed conclusively to have been given if personally
          delivered at or mailed by registered mail, postage prepaid, and return
          receipt
          requested or certified mail, return receipt requested, or transmitted by
          telex,
          telegraph or telecopier and confirmed by a similar mailed writing, as
          follows:

        

        (i)   
if
          to the
          Company:

         

        First
          Horizon Home Loan Corporation

        4000
          Horizon Way

        Irving,
          Texas 75063

        Attention:
          Capital Markets Department

        Telecopier
          No.: [___________]

        

        First
          Tennessee Mortgage Services, Inc.

        4000
          Horizon Way

        Irving,
          Texas 75063

        Attention:
          Capital Markets Department

        Telecopier
          No.: [___________]  

        

        (ii)    if
          to the
          Purchaser:

         

        EMC
          Mortgage Corporation 

        Mac
          Arthur Ridge II, 

        909
          Hidden Ridge Drive, Suite 200

        Irving,
          Texas 75038

        Attention:
          Ms. Ralene Ruyle

        Telecopier
          No.: (972) 444-2810

        

        With
          a
          copy to:

        

        Bear
          Stearns Mortgage Capital Corporation

        383
          Madison Avenue

        New
          York,
          New York 10179

        Attention:
          Mary Haggerty

        

        or
          such
          other address as may hereafter be furnished to the other party by like
          notice.
          Any such demand, notice or communication hereunder shall be deemed to have
          been
          received on the date delivered to or received at the premises of the addressee
          (as evidenced, in the case of registered or certified mail, by the date
          noted on
          the return receipt).

        

        Section
          11.06 Severability
          of Provisions.

        

        Any
          part,
          provision, representation or warranty of this Agreement and the related
          Term
          Sheet which is prohibited or which is held to be void or unenforceable
          shall be
          ineffective to the extent of such prohibition or unenforceability without
          invalidating the remaining provisions hereof. Any part, provision,
          representation or warranty of this Agreement which is prohibited or
          unenforceable or is held to be void or unenforceable in any jurisdiction
          shall
          be ineffective, as to such jurisdiction, to the extent of such prohibition
          or
          unenforceability without invalidating the remaining provisions hereof,
          and any
          such prohibition or unenforceability in any jurisdiction as to any Mortgage
          Loan
          shall not invalidate or render unenforceable such provision in any other
          jurisdiction. To the extent permitted by applicable law, the parties hereto
          waive any provision of law that prohibits or renders void or unenforceable
          any
          provision hereof. If the invalidity of any part, provision, representation
          or
          warranty of this Agreement shall deprive any party of the economic benefit
          intended to be conferred by this Agreement, the parties shall negotiate,
          in good
          faith, to develop a structure the economic effect of which is nearly as
          possible
          the same as the economic effect of this Agreement without regard to such
          invalidity.

        

        Section
          11.07 Exhibits.

        

        The
          exhibits to this Agreement are hereby incorporated and made a part hereof
          and
          are an integral part of this Agreement.

        

        Section
          11.08 General
          Interpretive Principles.

        

        For
          purposes of this Agreement, except as otherwise expressly provided or unless
          the
          context otherwise requires:

        

        (i)
           the
          terms
          defined in this Agreement have the meanings assigned to them in this Agreement
          and include the plural as well as the singular, and the use of any gender
          herein
          shall be deemed to include the other gender;

        

        (ii)
           accounting
          terms not otherwise defined herein have the meanings assigned to them in
          accordance with generally accepted accounting principles;

         

        (iii)
           references
          herein to "Articles", "Sections", Subsections", "Paragraphs", and other
          subdivisions without reference to a document are to designated Articles,
          Sections, Subsections, Paragraphs and other subdivisions of this
          Agreement;

        

        (iv)
           a
          reference to a Subsection without further reference to a Section is a reference
          to such Subsection as contained in the same Section in which the reference
          appears, and this rule shall also apply to Paragraphs and other
          subdivisions;

        

        (v)
           the
          words
          "herein", "hereof ", "hereunder" and other words of similar import refer
          to this
          Agreement as a whole and not to any particular provision; 

        

        (vi)
           the
          term
          "include" or "including" shall mean without limitation by reason of enumeration;
          and

        

        (viii)
           headings
          of the Articles and Sections in this Agreement are for reference purposes
          only
          and shall not be deemed to have any substantive effect.

        

        Section
          11.09 Reproduction
          of Documents.

        

        This
          Agreement and all documents relating thereto, including, without limitation,
          (i)
          consents, waivers and modifications which may hereafter be executed, (ii)
          documents received by any party at the closing, and (iii) financial statements,
          certificates and other information previously or hereafter furnished, may
          be
          reproduced by any photographic, photostatic, microfilm, micro-card, miniature
          photographic or other similar process. The parties agree that any such
          reproduction shall be admissible in evidence as the original itself in
          any
          judicial or administrative proceeding, whether or not the original is in
          existence and whether or not such reproduction was made by a party in the
          regular course of business, and that any enlargement, facsimile or further
          reproduction of such reproduction shall likewise be admissible in
          evidence.

        

        Section
          11.10 Confidentiality
          of Information.

        

        Each
          party recognizes that, in connection with this Agreement, it may become
          privy to
          non-public information regarding the financial condition, operations and
          prospects of the other party. Each party agrees to keep all non-public
          information regarding the other party strictly confidential, and to use
          all such
          information solely in order to effectuate the purpose of the Agreement,
          provided
          that each party may provide confidential information to its employees,
          agents
          and affiliates who have a need to know such information in order to effectuate
          the transaction, provided further that such information is identified as
          confidential non-public information. In addition, confidential information
          may
          be provided to a regulatory authority with supervisory power over Purchaser,
          provided such information is identified as confidential non-public
          information.

        

        Notwithstanding
          other provisions of this Section 16.14 or any other express or implied
          agreement, arrangement, or understanding to the contrary, the Company and
          Purchaser (the “Parties”) agree that the Parties (and their employees,
          representatives and other agents) may disclose to any and all persons,
          without
          limitation of any kind from the commencement of discussions, the purported
          or
          claimed U.S. federal income tax treatment of the purchase of the Mortgage
          Loans
          and related transactions covered by this letter agreement (“tax treatment”) and
          any fact that may be relevant to understanding the tax treatment (“tax
          structure”) and all materials of any kind (including opinions or other tax
          analyses) that are provided to the Parties relating to such tax treatment
          and
          tax structure, except where confidentiality is reasonably necessary to
          comply
          with securities laws.

        

        Section
          11.11 Recordation
          of Assignments of Mortgage.

        

        To
          the
          extent permitted by applicable law, each of the Assignments 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 and at the Company’s
          expense in the event recordation is either necessary under applicable law
          or
          requested by the Purchaser at its sole option.

        

        Section
          11.12 Assignment.

        

        The
          Purchaser shall have the right, without the consent of the Company, to
          assign,
          in whole or in part, its interest under this Agreement with respect to
          some or
          all of the Mortgage Loans, and designate any person to exercise any rights
          of
          the Purchaser hereunder, by executing an Assignment and Assumption Agreement
          substantially in the form of Exhibit D hereto and the assignee or designee
          shall
          accede to the rights and obligations hereunder of the Purchaser with respect
          to
          such Mortgage Loans. In no event shall Purchaser sell a partial interest
          in any
          Mortgage Loan without the written consent of Company, which consent shall
          not be
          unreasonably denied. All references to the Purchaser in this Agreement
          shall be
          deemed to include its assignee or designee. The Company shall have the
          right,
          only with the consent of the Purchaser or otherwise in accordance with
          this
          Agreement, to assign, in whole or in part, its interest under this Agreement
          with respect to some or all of the Mortgage Loans.

        

        Section
          11.13 No
          Partnership.

        

        Nothing
          herein contained shall be deemed or construed to create a co-partnership
          or
          joint venture between the parties hereto and the services of the Company
          shall
          be rendered as an independent contractor and not as agent for
          Purchaser.

        

        Section
          11.14 Execution:
          Successors and Assigns.

        

        This
          Agreement may be executed in one or more counterparts and by the different
          parties hereto on separate counterparts, each of which, when so executed,
          shall
          be deemed to be an original; such counterparts, together, shall constitute
          one
          and the same agreement. Subject to this Agreement shall inure to the benefit
          of
          and be binding upon the Company and the Purchaser and their respective
          successors and assigns.

        

        Section
          11.15 Entire
          Agreement.

        

        The
          Company acknowledges that no representations, agreements or promises were
          made
          to the Company by the Purchaser or any of its employees other than those
          representations, agreements or promises specifically contained herein and
          in the
          Confirmation. The Confirmation and this Agreement and the related Term
          Sheet
          sets forth the entire understanding between the parties hereto; provided,
          however, only this Agreement and the related Term Sheet shall be binding
          upon
          all successors of both parties. In the event of any inconsistency between
          the
          Confirmation and this Agreement, this Agreement and the related Term Sheet
          shall
          control.

        

        Section
          11.16. No
          Solicitation.

        

        From
          and
          after the Closing Date, the Company agrees that it will not take any action
          or
          permit or cause any action to be taken by any of its agents or affiliates,
          to
          personally, by telephone or mail, solicit the borrower or obligor under
          any
          Mortgage Loan to refinance the Mortgage Loan, in whole or in part, without
          the
          prior written consent of the Purchaser. Notwithstanding the foregoing,
          it is
          understood and agreed that (i) promotions undertaken by the Company or
          any
          affiliate of the Company which are directed to the general public at large,
          or
          segments thereof, provided that no segment shall consist primarily of the
          Mortgage Loans, including, without limitation, mass mailing based on
          commercially acquired mailing lists, newspaper, radio and television
          advertisements and (ii) responses to unsolicited requests or inquiries
          made by a
          Mortgagor or an agent of a Mortgagor, shall not constitute solicitation
          under
          this Section 11.16. This Section 11.16 shall not be deemed to preclude
          the
          Company or any of its affiliates from soliciting any Mortgagor for any
          other
          financial products or services. The Company shall use its best efforts
          to
          prevent the sale of the name of any Mortgagor to any Person who is not
          affiliate
          of the Company.

        

        Section
          11.17. Closing.

        

        The
          closing for the purchase and sale of the Mortgage Loans shall take place
          on the
          related Closing Date. The closing shall be either: by telephone, confirmed
          by
          letter or wire as the parties shall agree, or conducted in person, at such
          place
          as the parties shall agree.

        

        The
          closing for the Mortgage Loans to be purchased on the related Closing Date
          shall
          be subject to each of the following conditions:

        

        (a) at
          least
          one (1) Business Day prior to the related Closing Date, the Company shall
          deliver to the Purchaser a magnetic diskette, or transmit by modem, a listing
          on
          a loan-level basis of the information contained in the related Mortgage
          Loan
          Schedule attached to the related Term Sheet;

        

        (b) all
          of
          the representations and warranties of the Company under this Agreement
          shall be
          materially true and correct as of the related Closing Date and no event
          shall
          have occurred which, with notice or the passage of time, would constitute
          a
          material default under this Agreement;

        

        (c) the
          Purchaser shall have received, or the Purchaser's attorneys shall have
          received
          in escrow, all documents required pursuant to this Agreement, the related
          Term
          Sheet, an opinion of counsel and an officer's certificate, all in such
          forms as
          are agreed upon and acceptable to the Purchaser, duly executed by all
          signatories other than the Purchaser as required pursuant to the terms
          hereof;

        

        (d) the
          Company shall have delivered and released to the Purchaser (or its designee)
          on
          or prior to the related Closing Date all documents required pursuant to
          the
          terms of this Agreement and the related Term Sheet; and

        

        (e) all
          other
          terms and conditions of this Agreement, the related Term Sheet and the
          Confirmation shall have been materially complied with.

        

        Subject
          to the foregoing conditions, the Purchaser shall pay to the Company on
          the
          related Closing Date the Purchase Price, plus accrued interest pursuant
          to
          Section 2.02 of this Agreement, by wire transfer of immediately available
          funds
          to the account designated by the Company.

        

        Section
          11.18. Cooperation
          of Company with a Reconstitution.

        

        The
          Company and the Purchaser agree that with respect to some or all of the
          Mortgage
          Loans, on or after the related Closing Date, on one or more dates (each
          a
          "Reconstitution Date") at the Purchaser's sole option and with Purchaser’s best
          efforts to provide notice to the Company fifteen (15) days prior to the
          Reconstitution Date, the Purchaser may effect one or more sales, but in
          no event
          greater than three (3) per pool of Mortgage Loan sold under the related
          Term
          Sheet (each, a "Reconstitution") of some or all of the Mortgage Loans then
          subject to this Agreement, without recourse, to:

        

        (a) 
          one or
          more third party purchasers in one or more in whole loan transfers (each,
          a
          "Whole Loan Transfer"); or

        

        (b) one
          or
          more trusts or other entities to be formed as part of one or more pass-through
          transfers (each, a "Pass-Through Transfer").

        

        The
          Company agrees to execute in connection with any agreements among the Purchaser,
          the Company, and any servicer in connection with a Whole Loan Transfer,
          an
          Assignment, Assumption and Recognition Agreement substantially in the form
          of
          Exhibit D hereto, or, at Purchaser’s request, a seller's warranties and
          servicing agreement or a participation and servicing agreement or similar
          agreement in form and substance reasonably acceptable to the parties, and
          in
          connection with a Pass-Through Transfer, a pooling and servicing agreement
          in
          form and substance reasonably acceptable to the parties, (collectively
          the
          agreements referred to herein are designated, the "Reconstitution Agreements").
          It is understood that any such Reconstitution Agreements will not contain
          any
          greater obligations on the part of Company than are contained in this
          Agreement.

        

        With
          respect to each Whole Loan Transfer and each Pass-Through Transfer entered
          into
          by the Purchaser, the Company agrees (1) to cooperate fully with the Purchaser
          and any prospective purchaser with respect to all reasonable requests and
          due
          diligence procedures; (2) to execute, deliver and perform all Reconstitution
          Agreements required by the Purchaser; (3) to restate the representations
          and
          warranties set forth in this Agreement as of the settlement or closing
          date in
          connection with such Reconstitution (each, a "Reconstitution Date"). In
          that
          connection, the Company shall provide to such servicer or issuer, as the
          case
          may be, and any other participants in such Reconstitution: (i) any and
          all
          information (including servicing portfolio information) and appropriate
          verification of information (including servicing portfolio information)
          which
          may be reasonably available to the Company, whether through letters of
          its
          auditors and counsel or otherwise, as the Purchaser or any such other
          participant shall request upon reasonable demand; and (ii) such additional
          representations, warranties, covenants, opinions of counsel, letters from
          auditors, and certificates of public officials or officers of the Company
          as are
          reasonably agreed upon by the Company and the Purchaser or any such other
          participant. In connection with each Pass-Through Transfer, the Company
          agrees
          to provide reasonable and customary indemnification to the Purchaser and
          its
          affilates for disclosure contained in any offering document relating to
          the
          Company or its affilates, the Mortgage Loans and the underwriting standards
          of
          the Mortgage Loans. The Purchaser shall be responsible for the costs relating
          to
          the delivery of such information. 

         

        The
          Purchaser agrees that in no event shall the related Servicing Fee Rate
          be
          reduced for any Mortgage Loan that is subject to a Reconstitution without
          the
          written consent of the Servicer.

        

        All
          Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
          remain
          subject to, and serviced in accordance with the terms of, this Agreement and
          the
          related Term Sheet, and with respect thereto this Agreement and the related
          Term
          Sheet shall remain in full force and effect.

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Section
          11.19. Reporting
          with Respect to a Reconstitution.

        

        The
          Company agrees that with respect to any Mortgage Loan sold or transferred
          pursuant to a Reconstitution as described in Section 11.18 of this Agreement
          (a
“Reconstituted Mortgage Loan”), the Company, at its expense, shall provide the
          Purchaser with the information set forth in Exhibit J attached hereto for
          each
          Reconstituted Mortgage Loan in such electronic format as may be mutually
          agreed
          upon by both Purchaser and Company. 

         

        Section
          11.20 Obligations
          of the Sellers

         

        The
          obligations, liability and indemnification of each of the Seller and the
          Servicer under this Agreement are joint and several.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        IN
          WITNESS WHEREOF, the Company and the Purchaser have caused their names
          to be
          signed hereto by their respective officers thereunto duly authorized as
          of the
          day and year first above written.

         

        EMC
          MORTGAGE CORPORATION

        Purchaser

        

        By:________________________

        Name:
          

        Title:
          

        

        FIRST
          HORIZON HOME LOAN

        CORPORATION

        Seller

        

        By:
          _______________________

        Name:

        Title:

        

        FIRST
          TENNESSEE MORTGAGE 

        SERVICES,
          INC.

                              
          Servicer

        

        By:
          _______________________

        Name:

        Title:

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          A

        CONTENTS
          OF MORTGAGE FILE

        

        With
          respect to each Mortgage Loan, the Mortgage File shall include each of
          the
          following items, which shall be available for inspection by the Purchaser,
          and
          which shall be retained by the Company in the Servicing File or delivered
          to the
          Purchaser or its designee pursuant to Sections 2.04 and 2.05 of the Purchase,
          Warranties and Servicing Agreement.

        

        1.
          The
          original Mortgage Note endorsed "Pay to the order of
          ____________________________________________________, without recourse,"
          and
          signed via original signature in the name of the Company by an authorized
          officer, with all intervening endorsements showing a complete chain of
          title
          from the originator to the Company, together with any applicable riders.
          In no
          event may an endorsement be a facsimile endorsement. If the Mortgage Loan
          was
          acquired by the Company in a merger, the endorsement must be by "[Company],
          successor by merger to the [name of predecessor]". If the Mortgage Loan
          was
          acquired or originated by the Company while doing business under another
          name,
          the endorsement must be by "[Company] formerly known as [previous name]".
          Mortgage Notes may be in the form of a lost note affidavit subject to Purchaser
          acceptability. 

        

        2.
          The
          original Mortgage (together with a standard adjustable rate mortgage rider)
          with
          evidence of recording thereon, or a copy thereof certified by the public
          recording office in which such mortgage has been recorded or, if the original
          Mortgage has not been returned from the applicable public recording office,
          a
          true certified copy, certified by the Company.

        

        3.
          The
          original or certified copy, certified by the Company, of the Primary Mortgage
          Insurance Policy, if required.

        

        4. The
          original Assignment, from the Company to _____________________________________,
          or in accordance with Purchaser's instructions, which assignment shall,
          but for
          any blanks requested by Purchaser, be in form and substance acceptable
          for
          recording. If the Mortgage Loan was acquired or originated by the Company
          while
          doing business under another name, the Assignment must be by "[Company]
          formerly
          known as [previous name]". If the Mortgage Loan was acquired by the Company
          in a
          merger, the endorsement must be by "[Company], successor by merger to the
          [name
          of predecessor]". None of the Assignments are blanket assignments of
          mortgage.

        

        5. The
          original policy of title insurance, including riders and endorsements thereto,
          or if the policy has not yet been issued, a written commitment or interim
          binder
          or preliminary report of title issued by the title insurance or escrow
          company.

        

        6. Originals
          of all recorded intervening Assignments, or copies thereof, certified by
          the
          public recording office in which such Assignments have been recorded showing
          a
          complete chain of title from the originator to the Company, with evidence
          of
          recording thereon, or a copy thereof certified by the public recording
          office in
          which such Assignment has been recorded or, if the original Assignment
          has not
          been returned from the applicable public recording office, a true certified
          copy, certified by the Company.

        

        7. Originals,
          or copies thereof certified by the public recording office in which such
          documents have been recorded, of each assumption, extension, modification,
          written assurance or substitution agreements, if applicable, or if the
          original
          of such document has not been returned from the applicable public recording
          office, a true certified copy, certified by the Company. 

        

        8. If
          the
          Mortgage Note or Mortgage or any other material document or instrument
          relating
          to the Mortgage Loan has been signed by a person on behalf of the Mortgagor,
          the
          original or copy of power of attorney or other instrument that authorized
          and
          empowered such person to sign bearing evidence that such instrument has
          been
          recorded, if so required in the appropriate jurisdiction where the Mortgaged
          Property is located, or a copy thereof certified by the public recording
          office
          in which such instrument has been recorded or, if the original instrument
          has
          not been returned from the applicable public recording office, a true certified
          copy, certified by the Company.

        

        9. reserved.

        

        10. Mortgage
          Loan closing statement (Form HUD-1) and any other truth-in-lending or real
          estate settlement procedure forms required by law.

        

        11.
          Residential loan application.

        

        12. Uniform
          underwriter and transmittal summary (Fannie Mae Form 1008) or reasonable
          equivalent.

        

        13. Credit
          report on the mortgagor.

        

        14. Business
          credit report, if applicable.

        

        15. Residential
          appraisal report and attachments thereto.

        

        16. The
          original of any guarantee executed in connection with the Mortgage
          Note.

        

        17. Verification
          of employment and income except for Mortgage Loans originated under a limited
          documentation program, all in accordance with Company's underwriting
          guidelines.

        

        18. Verification
          of acceptable evidence of source and amount of down payment, in accordance
          with
          Company's underwriting guidelines.

        

        19. Photograph
          of the Mortgaged Property (may be part of appraisal).

        

        20. Survey
          of
          the Mortgaged Property, if any.

        

        21. Sales
          contract, if applicable.

        

        22. If
          available, termite report, structural engineer’s report, water portability and
          septic certification.

        

        23. Any
          original security agreement, chattel mortgage or equivalent executed in
          connection with the Mortgage.

        

        24. Name
          affidavit, if applicable.

        

        Notwithstanding
          anything to the contrary herein, Company may provide one certificate for
          all of
          the Mortgage Loans indicating that the documents were delivered for
          recording.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          B

        

        CUSTODIAL
          ACCOUNT LETTER AGREEMENT

        

        ______________,
          2003

        

        To: [_______________________]
          

        (the
          "Depository")

        

        As
          "Company" under the Purchase, Warranties and Servicing Agreement, dated
          as of
          [_____________________] 1, 200[_] (the "Agreement"), we hereby authorize
          and
          request you to establish an account, as a Custodial Account pursuant to
          Section
          4.04 of the Agreement, to be designated as
          "[______________________________________], in trust for the [Purchaser],
          Owner
          of Adjustable Rate Mortgage Loans". All deposits in the account shall be
          subject
          to withdrawal therefrom by order signed by the Company. This letter is
          submitted
          to you in duplicate. Please execute and return one original to us.

         

        

          
            	  [__________________________]
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

        The
          undersigned, as "Depository", hereby certifies that the above described
          account
          has been established under Account Number [__________], at the office of
          the
          depository indicated above, and agrees to honor withdrawals on such account
          as
          provided above. The full amount deposited at any time in the account will
          be
          insured up to applicable limits by the Federal Deposit Insurance Corporation
          through the Bank Insurance Fund or the Savings Association Insurance Fund
          or
          will be invested in Permitted Investments as defined in the
          Agreement.

        
          

            
              	  [__________________________]
	 	 
	
                      By:

                    	 
	
                      Name:

                    	 
	
                      Title:

                    	 

            

           

           

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          C

        

        ESCROW
          ACCOUNT LETTER AGREEMENT

        _____________,
          2003

        

        To: [_______________________]

        (the
          "Depository")

        

        As
          “Company” under the Purchase Warranties and Servicing Agreement, dated as of
          [____________________]1, 200[_] (the "Agreement"), we hereby authorize
          and
          request you to establish an account, as an Escrow Account pursuant to Section
          4.06 of the Agreement, to be designated as "[__________________________],
          in
          trust for the [Purchaser], Owner of Adjustable Rate Mortgage Loans, and
          various
          Mortgagors." All deposits in the account shall be subject to withdrawal
          therefrom by order signed by the Company. This letter is submitted to you
          in
          duplicate. Please execute and return one original to us.

        

        

          
            	  [__________________________]
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

        

        The
          undersigned, as "Depository", hereby certifies that the above described
          account
          has been established under Account Number __________, at the office of
          the
          depository indicated above, and agrees to honor withdrawals on such account
          as
          provided above. The full amount deposited at any time in the account will
          be
          insured up to applicable limits by the Federal Deposit Insurance Corporation
          through the Bank Insurance Fund or the Savings Association Insurance Fund
          or
          will be invested in Permitted Investments as defined in the
          Agreement.

        

        

          
            	  [__________________________]
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          D

        

        FORM
          OF
          ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

        

        This
          is a
          Purchase, Assignment, Assumption and Recognition Agreement (this “PAAR
          Agreement”) made as of __________, 200__, among EMC Mortgage Corporation (the
“Assignor”), ___________________ (the “Assignee”), and _______________________
          (the “Company”).

        

        In
          consideration of the mutual promises contained herein the parties hereto
          agree
          that the residential mortgage loans (the “Assigned Loans”) listed on Attachment
          1 annexed hereto (the "Assigned Loan Schedule") now serviced by Company
          for
          Assignor and its successors and assigns pursuant to the Purchase, Warranties
          and
          Servicing Agreement, dated as of _________, 200__, between Assignor and
          Company
          (the “Purchase Agreement”) shall be subject to the terms of this PAAR Agreement.
          Capitalized terms used herein but not defined shall have the meanings ascribed
          to them in the Purchase Agreement.

        

        Purchase,
          Assignment and Assumption

        

        1. Assignor
          hereby grants, transfers and assigns to Assignee all of the right, title
          and
          interest of Assignor in the Assigned Loans and, as they relate to the Assigned
          Loans, all of its right, title and interest in, to and under the Purchase
          Agreement.

        

        2. Simultaneously
          with the execution hereof, (i) Assignee shall pay to Assignor the “Funding
          Amount” as set forth in that certain letter agreement, dated as of _________
          ____, between Assignee and Assignor (the “Confirmation”) and (ii) Assignor, at
          its expense, shall have caused to be delivered to Assignee or its designee
          the
          Mortgage File for each Assigned Loan in Assignor's or its custodian's
          possession, as set forth in the Purchase Agreement, along with, for each
          Assigned Loan, an endorsement of the Mortgage Note from the Company, in
          blank,
          and an assignment of mortgage in recordable form from the Company, in blank.
          Assignee shall pay the Funding Amount by wire transfer of immediately available
          funds to the account specified by Assignor. Assignee shall be entitled
          to all
          scheduled payments due on the Assigned Loans after ___________, 200__ and
          all
          unscheduled payments or other proceeds or other recoveries on the Assigned
          Loans
          received on and after _____________, 200__.

        

        Representations,
          Warranties and Covenants

        

        3. Assignor
          warrants and represents to Assignee and Company as of the date
          hereof:

        

        (a) Attached
          hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
          which agreement is in full force and effect as of the date hereof and the
          provisions of which have not been waived, amended or modified in any respect,
          nor has any notice of termination been given thereunder;

        

        (b) Assignor
          is the lawful owner of the Assigned Loans with full right to transfer the
          Assigned Loans and any and all of its interests, rights and obligations
          under
          the Purchase Agreement as they relate to the Assigned Loans, free and clear
          from
          any and all claims and encumbrances; and upon the transfer of the Assigned
          Loans
          to Assignee as contemplated herein, Assignee shall have good title to each
          and
          every Assigned Loan, as well as any and all of Assignee’s interests, rights and
          obligations under the Purchase Agreement as they relate to the Assigned
          Loans,
          free and clear of any and all liens, claims and encumbrances;

        

        (c) There
          are
          no offsets, counterclaims or other defenses available to Company with respect
          to
          the Assigned Loans or the Purchase Agreement;

         

        (d) Assignor
          has no knowledge of, and has not received notice of, any waivers under,
          or any
          modification of, any Assigned Loan;

        

        (e) Assignor
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation, and has all requisite power and authority
          to
          acquire, own and sell the Assigned Loans;

        

        (f) Assignor
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this PAAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          PAAR
          Agreement is in the ordinary course of Assignor’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignor’s charter or by-laws or any legal restriction, or any material
          agreement or instrument to which Assignor is now a party or by which it
          is
          bound, or result in the violation of any law, rule, regulation, order,
          judgment
          or decree to which Assignor or its property is subject. The execution,
          delivery
          and performance by Assignor of this PAAR Agreement and the consummation
          by it of
          the transactions contemplated hereby, have been duly authorized by all
          necessary
          corporate action on part of Assignor. This PAAR Agreement has been duly
          executed
          and delivered by Assignor and, upon the due authorization, execution and
          delivery by Assignee and Company, will constitute the valid and legally
          binding
          obligation of Assignor enforceable against Assignor in accordance with
          its terms
          except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in effect
          relating
          to creditors’ rights generally, and by general principles of equity regardless
          of whether enforceability is considered in a proceeding in equity or at
          law;

         

        (g)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignor in connection with the execution, delivery or performance by Assignor
          of this PAAR Agreement, or the consummation by it of the transactions
          contemplated hereby; and

        

        (h)  Neither
          Assignor nor anyone acting on its behalf has offered, transferred, pledged,
          sold
          or otherwise disposed of the Assigned Loans or any interest in the Assigned
          Loans, or solicited any offer to buy or accept a transfer, pledge or other
          disposition of the Assigned Loans, or any interest in the Assigned Loans
          or
          otherwise approached or negotiated with respect to the Assigned Loans,
          or any
          interest in the Assigned Loans with any Person in any manner, or made any
          general solicitation by means of general advertising or in any other manner,
          or
          taken any other action which would constitute a distribution of the Assigned
          Loans under the Securities Act of 1933, as amended (the “1933 Act”) or which
          would render the disposition of the Assigned Loans a violation of Section
          5 of
          the 1933 Act or require registration pursuant thereto.

         

        4. Assignee
          warrants and represents to, and covenants with, Assignor and Company as
          of the
          date hereof:

         

        (a) Assignee
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its organization and has all requisite power and authority
          to
          acquire, own and purchase the Assigned Loans;

        

        (b) Assignee
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this PAAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          PAAR
          Agreement is in the ordinary course of Assignee’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignee’s charter or by-laws or any legal restriction, or any material
          agreement or instrument to which Assignee is now a party or by which it
          is
          bound, or result in the violation of any law, rule, regulation, order,
          judgment
          or decree to which Assignee or its property is subject. The execution,
          delivery
          and performance by Assignee of this PAAR Agreement and the consummation
          by it of
          the transactions contemplated hereby, have been duly authorized by all
          necessary
          corporate action on part of Assignee. This PAAR Agreement has been duly
          executed
          and delivered by Assignee and, upon the due authorization, execution and
          delivery by Assignor and Company, will constitute the valid and legally
          binding
          obligation of Assignee enforceable against Assignee in accordance with
          its terms
          except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in effect
          relating
          to creditors’ rights generally, and by general principles of equity regardless
          of whether enforceability is considered in a proceeding in equity or at
          law;

        

        (c) No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignee in connection with the execution, delivery or performance by Assignee
          of this PAAR Agreement, or the consummation by it of the transactions
          contemplated hereby; and 

        

        (d) Assignee
          agrees to be bound as “Purchaser” by all of the terms, covenants and conditions
          of the Purchase Agreement with respect to the Assigned Loans, and from
          and after
          the date hereof, Assignee assumes for the benefit of each of Assignor and
          Company all of Assignor's obligations as “Purchaser” thereunder but solely with
          respect to such Assigned Loans.

         

        5. Company
          warrants and represents to, and covenant with, Assignor and Assignee as
          of the
          date hereof:

        

        (a)          
          Attached
          hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
          which agreement is in full force and effect as of the date hereof and the
          provisions of which have not been waived, amended or modified in any respect,
          nor has any notice of termination been given thereunder; 

        

        (b)       
            Company
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation, and has all requisite power and authority
          to
          service the Assigned Loans and otherwise to perform its obligations under
          the
          Purchase Agreement;

        

        
          	(c)         
                   	
                  Company
                    has full corporate power and authority to execute, deliver and
                    perform its
                    obligations under this PAAR Agreement, and to consummate the
                    transactions
                    set forth herein. The consummation of the transactions contemplated
                    by
                    this PAAR Agreement is in the ordinary course of Company’s business and
                    will not conflict with, or result in a breach of, any of the
                    terms,
                    conditions or provisions of Company’s charter or by-laws or any legal
                    restriction, or any material agreement or instrument to which
                    Company is
                    now a party or by which it is bound, or result in the violation
                    of any
                    law, rule, regulation, order, judgment or decree to which Company
                    or its
                    property is subject. The execution, delivery and performance
                    by Company of
                    this PAAR Agreement and the consummation by it of the transactions
                    contemplated hereby, have been duly authorized by all necessary
                    corporate
                    action on part of Company. This PAAR Agreement has been duly
                    executed and
                    delivered by Company, and, upon the due authorization, execution
                    and
                    delivery by Assignor and Assignee, will constitute the valid
                    and legally
                    binding obligation of Company, enforceable against Company in
                    accordance
                    with its terms except as enforceability may be limited by bankruptcy,
                    reorganization, insolvency, moratorium or other similar laws
                    now or
                    hereafter in effect relating to creditors’ rights generally, and by
                    general principles of equity regardless of whether enforceability
                    is
                    considered in a proceeding in equity or at
                    law;

                

        

        

        
          	(d)       
                   	
                  No
                    consent, approval, order or authorization of, or declaration,
                    filing or
                    registration with, any governmental entity is required to be
                    obtained or
                    made by Assignee in connection with the execution, delivery or
                    performance
                    by Company of this PAAR Agreement, or the consummation by it
                    of the
                    transactions contemplated hereby;
                    and

                

        

        

        
          	(e)       
                   	
                  No
                    event has occurred
                    from the Closing Date to the date hereof which would render the
                    representations and warranties as to the related Assigned Loans
                    made by
                    the Company in Sections 3.01 and 3.02 of the Purchase Agreement
                    to be
                    untrue in any material respect.

                

        

        

        
          	(f)         	
                  Neither
                    this AAR Agreement nor any certification, statement, report or
                    other
                    agreement, document or instrument furnished or to be furnished
                    by the
                    Company pursuant to this AAR Agreement contains or will contain
                    any
                    materially untrue statement of fact or omits or will omit to
                    state a fact
                    necessary to make the statements contained therein not
                    misleading.

                

        

        

        Recognition
          of Assignee

        

        6. From
          and
          after the date hereof, Company shall recognize Assignee as owner of the
          Assigned
          Loans and will service the Assigned Loans in accordance with the Purchase
          Agreement. It is the intention of Assignor, Company and Assignee that this
          PAAR
          Agreement shall be binding upon and for the benefit of the respective successors
          and assigns of the parties hereto. Neither Company nor Assignor shall amend
          or
          agree to amend, modify, waiver, or otherwise alter any of the terms or
          provisions of the Purchase Agreement which amendment, modification, waiver
          or
          other alteration would in any way affect the Assigned Loans without the
          prior
          written consent of Assignee.

        

         

        Miscellaneous

        

        7. All
          demands, notices and communications related to the Assigned Loans, the
          Purchase
          Agreement and this PAAR Agreement shall be in writing and shall be deemed
          to
          have been duly given if personally delivered at or mailed by registered
          mail,
          postage prepaid, as follows:

         

        

        (a) In
          the
          case of Company,

        

        ____________________

        ____________________

        ____________________

        ____________________

        ____________________

         

        With
          a
          copy to ______________________________________.

        

        
          	(b)        
                    	
                  In
                    the case of Assignor,

                

        

        

        ____________________

        ____________________

        ____________________

        ____________________

        ____________________ 

        

        (c)          
          In
          the
          case of Assignee,

        

        EMC
          Mortgage Corporation 

        Mac
          Arthur Ridge II 

        909
          Hidden Ridge Drive, Suite 200

        Irving,
          Texas 75038

        Attention:
          Raylene Ruyle

        Telecopier
          No.: (972) 444-2810

        

        with
          a
          copy to:

        

        ___________________

        383
          Madison Avenue

        New
          York,
          New York 10179

        Attention:
          ___________

        Telecopier
          No.: (212) 272-____

        

        8. Each
          party will pay any commissions it has incurred and the fees of its attorneys
          in
          connection with the negotiations for, documenting of and closing of the
          transactions contemplated by this PAAR Agreement. 

        

        9. This
          PAAR
          Agreement shall be construed in accordance with the laws of the State of
          New
          York, without regard to conflicts of law principles, and the obligations,
          rights
          and remedies of the parties hereunder shall be determined in accordance
          with
          such laws.

        

        10. No
          term
          or provision of this PAAR Agreement may be waived or modified unless such
          waiver
          or modification is in writing and signed by the party against whom such
          waiver
          or modification is sought to be enforced.

        

        11. This
          PAAR
          Agreement shall inure to the benefit of the successors and assigns of the
          parties hereto. Any entity into which Assignor, Assignee or Company may
          be
          merged or consolidated shall, without the requirement for any further writing,
          be deemed Assignor, Assignee or Company, respectively, hereunder.

        

        12. This
          PAAR
          Agreement shall survive the conveyance of the Assigned Loans, the assignment
          of
          the Purchase Agreement to the extent of the Assigned Loans by Assignor
          to
          Assignee and the termination of the Purchase Agreement.

        

        13. This
          PAAR
          Agreement may be executed simultaneously in any number of counterparts.
          Each
          counterpart shall be deemed to be an original and all such counterparts
          shall
          constitute one and the same instrument.

        

        14. In
          the
          event that any provision of this PAAR Agreement conflicts with any provision
          of
          the Purchase Agreement with respect to the Assigned Loans, the terms of
          this
          PAAR Agreement shall control. In the event that any provision of this PAAR
          Agreement conflicts with any provision of the Confirmation with respect
          to the
          Assigned Loans, the terms of this PAAR Agreement shall control.

        

        

        [Modification
          of Purchase Agreement

        

        
          15.   The
            Company and Assignor hereby amend the Purchase Agreement as
            follows:

        

        

        (a) The
          following definitions are added to Section 1.01 of the Purchase
          Agreement:

        

        Securities
          Administrator: ________________________

        

        Supplemental
          PMI Insurer: ________________________

        

        Supplemental
          PMI Policy: The
          primary guarantee insurance policy of the Supplemental PMI Insurer attached
          hereto as Exhibit J, or any successor Supplemental PMI Policy given to
          the
          Servicer by the Assignee.

        

        Trustee:
           ________________________

        

        (b) The
          following definition is amended and restated:

        

        Insurance
          Proceeds: Proceeds
          of any Primary Mortgage Insurance Policy, the Supplemental PMI Policy,
          any title
          policy, any hazard insurance policy or any other insurance policy covering
          a
          Mortgage Loan or other related Mortgaged Property, including any amounts
          required to be deposited in the Custodial Account pursuant to Section 4.04,
          to
          the extent such proceeds are not to be applied to the restoration of the
          related
          Mortgaged Property or released to the Mortgagor in accordance with Accepted
          Servicing Practices.

        

        (c) The
          following are added as the fourth, fifth and sixth paragraphs of Section
          4.08:

        

        “In
          connection with its activities as servicer, the Company agrees to prepare
          and
          present, on behalf of itself and the Purchaser, claims to the Supplemental
          PMI
          Insurer with respect to the Supplemental PMI Policy and, in this regard,
          to take
          such action as shall be necessary to permit recovery under any Supplemental
          PMI
          Policy respecting a defaulted Mortgage Loan. Pursuant to Section 4.04,
          any
          amounts collected by the Company under any Supplemental PMI Policy shall
          be
          deposited in the Custodial Account, subject to withdrawal pursuant to Section
          4.05.

        

        In
          accordance with the Supplemental PMI Policy, the Company shall provide
          to the
          Supplemental PMI Insurer any required information regarding the Mortgage
          Loans.

        

        The
          Company shall provide to the [Securities Administrator] on a monthly basis
          via
          computer tape, or other mutually acceptable format, the unpaid principal
          balance, insurer certificate number, lender loan number, and premium due
          the
          Supplemental PMI Insurer for each Mortgage Loan covered by the Supplemental
          PMI
          Policy. In addition, the Company agrees to forward to the Purchaser and
          the
          [Securities Administrator] any statements or other reports given by the
          Supplemental PMI Insurer to the Servicer in connection with a claim under
          the
          Supplemental PMI Policy.”

        

        (d) Clause
          (vi) of Section 6.1 is amended to read as follows:

        

        “Company
          ceases to be approved by either Fannie Mae or FHLMC as a mortgage loan
          seller or
          servicer for more than thirty days, or the Company fails to meet the servicer
          eligibility requirements of the Supplemental PMI Insurer; or”]

        

        (e) Section
          ____ Annual
          Statement as to Compliance.

        

        The
          Company will deliver to the Master Servicer on or before March 15 of each
          year,
          beginning with March 15, 200__, an Officers' Certificate stating that (i)
          a
          review of the activities of the Company during the preceding calendar year
          and
          of performance under this Agreement has been made under such officers'
          supervision, (ii) the Company has fully complied with the provisions of
          this
          Agreement and (iii) to the best of such officers' knowledge, based on such
          review, the Company has fulfilled all of its obligations under this Agreement
          throughout such year, or, if there has been a default in the fulfillment
          of any
          such obligation, specifying each such default known to such officer and
          the
          nature and status thereof.

        

        (f) Section
          ____ Annual Certification. 

        

        (a)
          The
          Company will deliver to the Master Servicer, on or before March 15 of each
          year
          beginning March 15, 200__ a certification in the form attached hereto as
          Exhibit
          __ with respect to the servicing reports delivered by the Company pursuant
          to
          this Agreement, the Company’s compliance with the servicing obligations set
          forth in this Agreement and any other information within the control of
          the
          Company. Such certification shall be signed by the senior officer in charge
          of
          servicing of the Company. In addition, the Company shall provide such other
          information with respect to the Mortgage Loans and the servicing and
          administration thereof within the control of the Company which shall be
          required
          to enable the Master Servicer, Trustee or Depositor, as applicable, to
          comply
          with the reporting requirements of the Securities and Exchange Act of 1934,
          as
          amended.

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have executed this PAAR Agreement as
          of the
          day and year first above written.

        

        EMC
          MORTGAGE CORPORATION

        Assignor

        

        By:______________________________

        Name:____________________________

        Title:_________________________

        

        

        _________________________________

        Assignee

         

        
          By:______________________________

          Name:____________________________

          Title:_________________________

        

        _________________________________

        Company

         

        
          By:______________________________

          Name:____________________________

          Title:_________________________
   

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         EXHIBIT
          ___

        

        FORM
          OF
          COMPANY CERTIFICATION

        

        I,
          [identify certifying individual], certify to the [Trustee] [Seller] [Securities
          Administrator] [Mortgage Loan Seller] [Purchaser] and [Master Servicer]
          that:

        

        1. I
          have
          reviewed the servicing reports prepared by [COMPANY] (the “Company”) pursuant to
          the [Servicing Agreement] (the “Servicing Agreement”), dated as of __________
          between __________ and the Company (as modified by the AAR Agreement (as
          defined
          below) and delivered to [MASTER SERVICER] (the “Master Servicer”) pursuant to
          the Assignment, Assumption and Recognition Agreement (the “AAR Agreement”),
          dated as of __________ among [ASSIGNOR] as Assignor, Company and [ASSIGNEE],
          as
          Assignee.

        

        2. 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 such servicing reports.

        

        3. Based
          on
          my knowledge, the servicing information required to be provided to the
          Master
          Servicer under the Servicing Agreement and the AAR Agreement is included
          in
          these reports.

        

        4. I
          am
          responsible for reviewing the activities performed the Company under the
          Servicing Agreement and the AAR Agreement and based upon the review required
          under the Servicing Agreement and the AAR Agreement, and except as disclosed
          in
          the Annual Statement of Compliance, the Company has fulfilled its obligations
          under the Servicing Agreement and the AAR Agreement.

        

        5. I
          have
          disclosed to the Master Servicer's certified public accountants all significant
          deficiencies relating to the Company's compliance with the minimum servicing
          standards in accordance with a review conduced in compliance with the Uniform
          Single Attestation Program for Mortgage Bankers or similar standard as
          set forth
          in the Servicing Agreement and the AAR Agreement.

        

        Capitalized
          terms used but not defined herein have the meanings ascribed to them in
          the AAR
          Agreement.

        

        Date:_________________

        

        _____________________

        [Signature]

        [Title]

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        ATTACHMENT
          1

        

        ASSIGNED
          LOAN SCHEDULE

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        ATTACHMENT
          2

        

        PURCHASE,
          WARRANTIES AND SERVICING AGREEMENT

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          E

        

        FORM
          OF
          TRIAL BALANCE

        

        
          	·  	
                  S50Y
                    - Scheduled/Scheduled Monthly Remittance
                    Report

                

        

         

        
          	·  	
                  P139
                    - Monthly Trial Balance Report

                

        

         

        
          	·  	
                  S214
                    - Monthly Pay-off Report

                

        

         

        
          	·  	
                  S215
                    - Monthly Actual Collections Report EXHIBIT
                    G

                

        

         

        

        REQUEST
          FOR RELEASE OF DOCUMENTS AND RECEIPT

        

        RE: Mortgage
          Loan #___________________________________________

        BORROWER:_________________________________________________

        PROPERTY:
          __________________________________________________

        

        

        Pursuant
          to a Purchase, Warranties and Servicing Agreement (the "Agreement") between
          the
          Company and the Purchaser, the undersigned hereby certifies that he or
          she is an
          officer of the Company requesting release of the documents for the reason
          specified below. The undersigned further certifies that:

        

        (Check
          one of the items below)

        

        _____ On
          _________________, the above captioned mortgage loan was paid in full or
          that
          the Company has been notified that payment in full has been or will be
          escrowed.
          The Company hereby certifies that all amounts with respect to this loan
          which
          are required under the Agreement have been or will be deposited in the
          Custodial
          Account as required.

        

        _____ The
          above
          captioned loan is being repurchased pursuant to the terms of the Agreement.
          The
          Company hereby certifies that the repurchase price has been credited to
          the
          Custodial Account as required under the Agreement.

        

        _____ The
          above
          captioned loan is being placed in foreclosure and the original documents
          are
          required to proceed with the foreclosure action. The Company hereby certifies
          that the documents will be returned to the Purchaser in the event of
          reinstatement.

        

        _____ Other
          (explain)

        

        _______________________________________________________

        _______________________________________________________

        

        All
          capitalized terms used herein and not defined shall have the meanings assigned
          to them in the Agreement.

        

        Based
          on
          this certification and the indemnities provided for in the Agreement, please
          release to the Company all original mortgage documents in your possession
          relating to this loan.

        

        Dated:_________________

        

        By:________________________________

            Signature

        ___________________________________

            Title

        

        Send
          documents to: _____________________________________________

        _____________________________________________

        _____________________________________________

        

        Acknowledgement:

        

        Purchaser
          hereby acknowledges that all original documents previously released on
          the above
          captioned mortgage loan have been returned and received by the
          Purchaser.

        

        

        Dated:________________

        

        By:________________________________

            Signature

        

        _______________________________

            Title

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        

        EXHIBIT
          H

        

        COMPANY’S
          UNDERWRITING GUIDELINES

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          I

        

        

        TERM
          SHEET

        

        This
          TERM
          SHEET (the "Term Sheet") dated _____________, among First Horizon Home
          Loan
          Corporation, a Kansas corporation, located at 4000 Horizon Way, Irving,
          Texas
          75063 (the “Seller”), First Tennessee Mortgage Services, Inc., as servicer (the
“Servicer”), a Kansas corporation, located at 4000 Horizon Way, Irving, Texas
          75063 (the Servicer and the Seller together referred to as the "Company")
          and
          EMC Mortgage Corporation, a Delaware corporation, located at Mac Arthur
          Ridge
          II, 909 Hidden Ridge Drive, Suite 200, Irving, Texas 75038 (the "Purchaser")
          is
          made pursuant to the terms and conditions of that certain Purchase, Warranties
          and Servicing Agreement (the "Agreement") dated as of September 1, 2003,
          among
          the Servicer, the Seller and the Purchaser, the provisions of which are
          incorporated herein as if set forth in full herein, as such terms and conditions
          may be modified or supplemented hereby. All initially capitalized terms
          used
          herein unless otherwise defined shall have the meanings ascribed thereto
          in the
          Agreement. 

        

        The
          Purchaser hereby purchases from the Seller and the Seller hereby sells
          to the
          Purchaser, all of the Seller’s right, title and interest in and to the Mortgage
          Loans described on the Mortgage Loan Schedule annexed hereto as Schedule
          I,
          pursuant to and in accordance with the terms and conditions set forth in
          the
          Agreement, as same may be supplemented or modified hereby. Hereinafter,
          the
          Servicer shall service the Mortgage Loans for the benefit of the Purchaser
          and
          all subsequent transferees of the Mortgage Loans pursuant to and in accordance
          with the terms and conditions set forth in the Agreement. 

        

        1. Definitions

        

        For
          purposes of the Mortgage Loans to be sold pursuant to this Term Sheet,
          the
          following terms shall have the following meanings:

        

        Aggregate
          Principal Balance

        (as
          of
          the Cut-Off Date):    

        

        Closing
          Date:    

        

        Custodian:    

        

        Cut-off
          Date:    

        

        Initial
          Weighted Average

        Mortgage
          Loan Remittance Rate:  

        

        Mortgage
          Loan:    

        

        Purchase
          Price Percentage:   

        

        Servicing
          Fee Rate:   

        Additional
          Closing Conditions: 

        

        In
          addition to the conditions specified in the Agreement, the obligation of
          each of
          the Company and the Purchaser is subject to the fulfillment, on or prior
          to the
          applicable Closing Date, of the following additional conditions: [None].
          

        

        Additional
          Loan Documents: 

        

        In
          addition to the contents of the Mortgage File specified in the Agreement,
          the
          following documents shall be delivered with respect to the Mortgage Loans:
          [None]

        

        [Additional]
          [Modification] of Representations and Warranties:

         

        [In
          addition to the representations and warranties set forth in the Agreement,
          as of
          the date hereof, the Company makes the following additional representations
          and
          warranties with respect to the Mortgage Loans: [None]. [Notwithstanding
          anything
          to the contrary set forth in the Agreement, with respect to each Mortgage
          Loan
          to be sold on the Closing Date, the representation and warranty set forth
          in
          Section ______ of the Agreement shall be modified to read as
          follows:]

        

        Except
          as
          modified herein, Section ______ of the Agreement shall remain in full force
          and
          effect as of the date hereof.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have caused their names to be signed
          hereto
          by their respective duly authorized officers as of the date first above
          written.

         

         

                            FIRST
          HORIZON HOME
          LOAN CORPORATION

         

                            By:______________________________

                    Name:____________________________

                    
          Title:_________________________

            

        

                            EMC
          MORTGAGE
          CORPORATION

         

        
                              By:______________________________

                      Name:____________________________

                      
            Title:_________________________

              

           

        

                            FIRST
          TENNESSEE
          MORTGAGE SERVICES, INC.

        

        
                              By:______________________________

                      Name:____________________________

                      
            Title:_________________________

              

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        SCHEDULE
          I

        

        MORTGAGE
          LOAN SCHEDULE

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          J

        

        RECONSTITUTED
          MORTGAGE LOAN REPORTING

        

         

        (a) Servicer
          Mortgage Loan Number  

        (b) FNMA
          Mortgage Loan Number (if applicable)

        (c) Lender/Seller
          Mortgage Loan Number (if
          available)

        (d) Scheduled
          Balance (scheduled end of month balance reporting to Master
          Servicer/Trustee)

        (e) Actual
          Balance (actual end of month balance received from Mortgagor)

        (f) Gross
          Rate (current gross rate)

        (g) Net
          Rate
          (current passthrough)

        (h) Last
          Payment Date (LPI_DATE in Fannie's Laser Reporting)

        (i)
           Delinquency
          Month (if available)

        (j) Default
          Flag, i.e. FC, REO, etc. (if available)

        (k) Pay-In-Full
          Date (Mortgage Loan paid off by Mortgagor)

        (l) Foreclosure
          start date  

        (m) Foreclosure
          end date  

        (n) REO
          Property date  

        (o) With
          respect to Liquidated Mortgage Loans:

              
(i)
          amount of loss or gain (as applicable)  

            
(ii)
          the
          date of the loss or gain.  

            
(iii)
          the
          liquidation reason (paid in full or repurchased out of deal) 

        (p) Fannie's
          Laser Reporting  

            
(i) Action
          Code (for default or paid off Mortgage Loans; i.e. 60, 65, etc.)

             
          (ii) Action Date  

           
(iii)
          Remit Prin (submitted principal amount)  

            
(iv)
          Remit Int (submitted interest amount)

            
(v)
          Pool/Invest indicator (indicating Schedule/Schedule or Actual/Actual
          pool)

         

         

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        AMENDMENT
          NO. 1 TO PURCHASE, WARRANTIES 

        AND
          SERVICING AGREEMENT

        

        

        THIS
          AMENDMENT NO. 1, effective as of May 14, 2004, amends the Purchase, Warranties
          and Servicing Agreement among EMC Mortgage Corporation (the “Purchaser”), First
          Tennessee Mortgage Services, Inc., as servicer (the “Servicer”) and First
          Horizon Home Loan Corporation (the “Seller”, and together with the Servicer, the
“Company”), previously entered into as of September 1, 2003 (the “Agreement”).

        

        RECITALS

        

        WHEREAS,
          the Company sells to the Purchaser, and the Purchaser purchases from the
          Company, from time to time, pursuant to the Agreement, certain conventional
          residential Mortgage Loans on a servicing retained basis; and

        

        WHEREAS,
          in connection with future sales of Mortgage Loans to the Purchaser, the
          Company
          and the Purchaser wish to amend the Agreement as set forth below.

        

        NOW,
          THEREFORE, in consideration of the premises and the mutual covenants hereinafter
          set forth and for good and valuable consideration, the receipt and sufficiency
          of which are hereby acknowledged, the Purchaser and the Company agree to
          amend
          the Agreement as follows:

        

        1. Section
          3.02(h) of the Agreement shall be deleted in its entirety and replaced
          with the
          following:

         

        (h) Each
          Mortgage Loan complies with, and the Company has complied with, applicable
          local, state and federal laws, regulations and other requirements including,
          without limitation, usury, equal credit opportunity, real estate settlement
          procedures, the Federal Truth-In-Lending Act, disclosure laws and all applicable
          predatory and abusive lending laws and consummation of the transactions
          contemplated hereby, including without limitation, the receipt of interest
          by
          the owner of such Mortgage Loan, will not involve the violation of any
          such
          laws, rules or regulations. None
          of
          the Mortgage Loans are (a) Mortgage Loans subject to 12 CFR Part 226.31,
          12 CFR
          Part 226.32 or 226.34 of Regulation Z, the regulation implementing TILA,
          which
          implements the Home Ownership and Equity Protection Act of 1994, as amended,
          or
          (b) except as may be provided in subparagraph (c) below, classified and/or
          defined, as a “high cost”, “threshold”, “predatory” “high risk home loan” or
“covered” loan (or a similarly classified loan using different terminology under
          a law imposing additional legal liability for mortgage loans having high
          interest rates, points and or/fees) under any other applicable state, federal
          or
          local law including, but not limited to, the States of Georgia, New York,
          North
          Carolina, Arkansas, Kentucky or New Mexico or (c) Mortgage Loans subject
          to the
          New Jersey Home Ownership Security Act of 2002 (the “Act”), unless such Mortgage
          Loan is a (1) “Home Loan” as defined in the Act that is a first lien Mortgage
          Loan, which is not a “High Cost Home Loan” as defined in the Act or (2) “Covered
          Home Loan” as defined in the Act that is a first lien purchase money Mortgage
          Loan, which is not a High Cost Home Loan under the Act. In addition to
          and
          notwithstanding anything to the contrary herein, no Mortgage Loan for which
          the
          Mortgaged Property is located in New Jersey is a Home Loan as defined in
          the Act
          that was made, arranged, or assigned by a person selling either a manufactured
          home or home improvements to the Mortgaged Property or was made by an originator
          to whom the Mortgagor was referred by any such seller. Each
          Mortgage Loan is being (and has been) serviced in accordance with Accepted
          Servicing Practices and applicable state and federal laws, including, without
          limitation, the Federal Truth-In-Lending Act and other consumer protection
          laws,
          real estate settlement procedures, usury, equal credit opportunity and
          disclosure laws. Company shall maintain in its possession, available for
          the
          Purchaser’s inspection, as appropriate, and shall deliver to the Purchaser or
          its designee upon demand, evidence of compliance with all such
          requirements.

        

        2. The
          following representations and warranties shall be added to Section 3.02
          of the
          Agreement:

        

        (yy)
           There
          is
          no Mortgage Loan that was originated on or after October 1, 2002 and before
          March 7, 2003, which is secured by property located in the State of
          Georgia.

        

        (zz)
           No
          proceeds from any Mortgage Loan were used to finance single premium credit
          insurance policies.

         

        (aaa)
           No
          borrower was encouraged or required to select a Mortgage Loan product offered
          by
          the Mortgage Loan’s originator which is a higher cost product designed for less
          creditworthy borrowers, unless at the time of the Mortgage Loan’s origination,
          such borrower did not qualify taking into account credit history and
          debt-to-income ratios for a lower-cost credit product then offered by the
          Mortgage Loan’s originator or any affiliate of the Mortgage Loan’s originator.
          If, at the time of loan application, the borrower may have qualified for
          a
          lower-cost credit product then offered by any mortgage lending affiliate
          of the
          Mortgage Loan’s originator, the Mortgage Loan’s originator referred the
          borrower’s application to such affiliate for underwriting
          consideration.

         

        (bbb) The
          methodology used in underwriting the extension of credit for each Mortgage
          Loan
          employs objective mathematical principles which relate the borrower’s income,
          assets and liabilities to the proposed payment and such underwriting methodology
          does not rely on the extent of the borrower’s equity in the collateral as the
          principal determining factor in approving such credit extension. Such
          underwriting methodology confirmed that at the time of origination
          (application/approval) the borrower had a reasonable ability to make timely
          payments on the Mortgage Loan.

         

        (ccc) With
          respect to any Mortgage Loan that contains a provision permitting imposition
          of
          a premium upon a prepayment prior to maturity: (i) prior to the loan’s
          origination, the borrower agreed to such premium in exchange for a monetary
          benefit, including but not limited to a rate or fee reduction, (ii) prior
          to the
          loan’s origination, the borrower was offered the option of obtaining a mortgage
          loan that did not require payment of such a premium, (iii) the prepayment
          premium is disclosed to the borrower in the loan documents pursuant to
          applicable state and federal law, and (iv) notwithstanding any state or
          federal
          law to the contrary, the Servicer shall not impose such prepayment premium
          in
          any instance when the mortgage debt is accelerated as the result of the
          borrower’s default in making the loan payments.

         

        (ddd) No
          borrower was required to purchase any credit life, disability, accident
          or
          health insurance product as a condition of obtaining the extension of credit.
          No
          borrower obtained a prepaid single-premium credit life, disability, accident
          or
          health insurance policy in connection with the origination of the Mortgage
          Loan;
          No proceeds from any Mortgage Loan were used to purchase single premium
          credit
          insurance policies as part of the origination of, or as a condition to
          closing,
          such Mortgage Loan.

         

        (eee) The
          Servicer will transmit full-file credit reporting data for each Mortgage
          Loan
          pursuant to the Fannie Mae Selling Guide and that for each Mortgage Loan,
          Servicer agrees it shall report one of the following statuses each month
          as
          follows: new origination, current, delinquent (30-, 60-, 90-days, etc.),
          foreclosed, or charged-off.

         

        (fff) Any
          Mortgage Loan with a Mortgaged Property in the State of Illinois complies
          with
          the Illinois Interest Act.

        

        3. The
          following field shall be added to the definition of Mortgage
          Loan Schedule:
          

        

        “and
          (28)
          whether such Mortgage Loan is a “Home Loan”, “Covered Home Loan”, “Manufactured
          Housing” or “Home Improvement Loan” as defined in the
          New
          Jersey Home Ownership Security Act of 2002.”

        

        4. Section
          6.04 of the Agreement shall be deleted in its entirety and replaced with
          the
          following:

        

        Section
          6.04 Annual
          Statement as to Compliance.

        

        The
          Company will deliver to the Purchaser not later than March 15th
          of each
          year, beginning March 15, 2005, an
          executed Officers' Certificate acceptable to the Purchaser stating, as
          to each
          signatory thereof, that (i) a review of the activities of the Company during
          the
          preceding calendar year and of performance under this Agreement has been
          made
          under such officers' supervision, and (ii) to the best of such officers'
          knowledge, based on such review, the Company has fulfilled all of its
          obligations under this Agreement throughout such year, or, if there has
          been a
          default in the fulfillment of any such obligation, specifying each such
          default
          known to such officers and the nature and status of cure provisions thereof.
          Such Officers’ Certificate shall contain no restrictions or limitations on its
          use. Copies of such statement shall be provided by the Company to the Purchaser
          upon request.

        

        If
          the
          Company does not timely comply with this Section 6.04, the Purchaser shall
          give
          prompt written notice to the Company. The Company shall have a period of
          five
          (5) Business Days after receipt of such notice to provide what is required
          hereunder. Failure of the Company to timely comply thereafter shall be
          deemed an
          Event of Default, automatically, without notice and without any cure period,
          and
          Purchaser may, in addition to whatever rights the Purchaser may have under
          Sections 3.03 and 8.01 and at law or equity or to damages, including injunctive
          relief and specific performance, terminate all the rights and obligations
          of the
          Company under this Agreement and in and to the Mortgage Loans and the proceeds
          thereof without compensating the Company for the same, as provided in Section
          9.01. Such termination shall be considered with cause pursuant to Section
          10.01
          of this Agreement. This paragraph shall supercede any other provision in
          this
          Agreement or any other agreement to the contrary.

        

        5. Section
          6.05 of the Agreement shall be deleted in its entirety and replaced with
          the
          following:

        

        Section
          6.05 Annual
          Independent Certified Public Accountants' Servicing Report.

        

        The
          Company, at its expense and not later than March 15th
          of each
          year, beginning March 15, 2005, shall cause a firm of independent public
          accountants which is a member of the American Institute of Certified Public
          Accountants to furnish a statement to the Purchaser acceptable to the Purchaser
          to the effect that such firm has examined certain documents and records
          relating
          to the Company's servicing of mortgage loans of the same type as the Mortgage
          Loans pursuant to servicing agreements substantially similar to this Agreement,
          which agreements may include this Agreement, and that, on the basis of
          such an
          examination, conducted substantially in the uniform single audit program
          for
          mortgage bankers, such firm is of the opinion that the Company's servicing
          has
          been conducted in compliance with the agreements examined pursuant to this
          Section 6.05, except for (i) such exceptions as such firm shall believe
          to be
          immaterial, and (ii) such other exceptions as shall be set forth in such
          statement. Such statement shall contain no restrictions or limitations
          on its
          use. Copies of such statement shall be provided by the Company to the Purchaser.
          In addition, on an annual basis, Company shall provide Purchaser with copies
          of
          its audited financial statements.

        

        If
          the
          Company does not timely comply with this Section 6.05, the Purchaser shall
          give
          prompt written notice to the Company. The Company shall have a period of
          five
          (5) Business Days after receipt of such notice to provide what is required
          hereunder. Failure of the Company to timely comply thereafter shall be
          deemed an
          Event of Default, automatically, without notice and without any cure period,
          and
          Purchaser may, in addition to whatever rights the Purchaser may have under
          Sections 3.03 and 8.01 and at law or equity or to damages, including injunctive
          relief and specific performance, terminate all the rights and obligations
          of the
          Company under this Agreement and in and to the Mortgage Loans and the proceeds
          thereof without compensating the Company for the same, as provided in Section
          9.01. Such termination shall be considered with cause pursuant to Section
          10.01
          of this Agreement. This paragraph shall supercede any other provision in
          this
          Agreement or any other agreement to the contrary.

        

        6. All
          other
          terms and conditions of the Agreement remain unchanged and in full force
          and
          effect.

         

        7. Capitalized
          terms used but not defined herein shall have the meanings ascribed to them
          in
          the Agreement.

        

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to
          be
          executed and delivered by their proper and duly authorized officers as
          of the
          day and year first above written.

        

         

        EMC
          MORTGAGE CORPORATION

        Purchaser

        

        By:________________________

        Name:
          

        Title:
          

        

        FIRST
          HORIZON HOME LOAN

        CORPORATION

        Seller

        

        By:
          _______________________

        Name:

        Title:

        

        FIRST
          TENNESSEE MORTGAGE 

        SERVICES,
          INC.

                              
          Servicer

        

        By:
          _______________________

        Name:

        Title:

        

        

         

        

         

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        AMENDMENT
          NO. 2 TO PURCHASE, WARRANTIES 

        AND
          SERVICING AGREEMENT

        

        

        THIS
          AMENDMENT NO. 2, effective as of June 16, 2005, amends the Purchase, Warranties
          and Servicing Agreement among EMC Mortgage Corporation (the “Purchaser”), First
          Tennessee Mortgage Services, Inc., as servicer (the “Servicer”) and First
          Horizon Home Loan Corporation (the “Seller”, and together with the Servicer, the
“Company”), previously entered into as of September 1, 2003 (the “Agreement”),
          as previously amended. 

        

        RECITALS

        

        WHEREAS,
          the Seller sells to the Purchaser, and the Purchaser purchases from the
          Seller,
          from time to time, pursuant to the Agreement, certain conventional residential
          Mortgage Loans on a servicing retained basis serviced by the Servicer,
          including
          second lien loans; and

        

        WHEREAS,
          in connection with future sales of Mortgage Loans to the Purchaser, the
          Company
          and the Purchaser wish to amend the Agreement as set forth below.

        

        NOW,
          THEREFORE, in consideration of the premises and the mutual covenants hereinafter
          set forth and for good and valuable consideration, the receipt and sufficiency
          of which are hereby acknowledged, the Purchaser and the Company agree to
          amend
          the Agreement as follows:

        

        1. 
          The
          preamble, in the second “Whereas” clause, shall be amended to include “or second
          lien” following the term “first lien”. 

        

        2. The
          definition of Mortgage shall be amended to include; “or second lien” following
          the term “first lien”.

        

        3. The
          definition of “Determination Date” shall be deleted in its entirety and replaced
          with the following:

        

        “Determination
          Date:
          For
          first lien Mortgage Loans only, the 15th day (or if such 15th day is not
          a
          Business Day, the Business Day immediately preceding such 15th day) of
          the month
          of the related Remittance Date. For second lien Mortgage Loans only, with
          respect to each Remittance Date, the close of business of the last day
          of the
          month preceding the month in which such Remittance Date occurs.”

        

        4. The
          definition of “Monthly Advance” shall be amended to add; “For first lien
          Mortgage Loans only,” at the beginning of the definition.

        

        5. The
          definition of “Remittance Date” shall be deleted in its entirety and replaced
          with the following: 

        

        “Remittance
          Date:
          For
          first lien Mortgage Loans only, the 18th day of any month, beginning with
          the
          First Remittance Date, or if such 18th day is not a Business Day, the first
          Business Day immediately preceding such 18th day. For second lien Mortgage
          Loans, the fifth (5th) day of each month, commencing on the fifth (5th)
          day of
          the month next following the month in which the Cut-off Date occurs, or
          if such
          fifth (5th) day is not a Business Day, the first Business Day immediately
          following such fifth (5th) day.”

        

        6. Section
          3.02(b) shall be amended to include “or second lien, as applicable,” following
          the term “first lien” and to include “or second priority ownership interest, as
          applicable,” following the term “first priority ownership
          interest”.

        

        7. Section
          3.02(j) shall be amended to include “or second lien, as applicable,” following
          the term “first lien”. Further, Section 3.02(j) shall be amended to add “and (4)
          for any second lien Mortgage Loan, the related first lien” at the end of the
          second sentence.

        

        8.
          The
          following representations and warranties shall be added to Section
          3.02:

        

        (ggg)
          With respect to any Mortgage Loan originated on or after August 1, 2004
          and
          underlying the security, neither the related Mortgage nor the related Mortgage
          Note requires the borrower to submit to arbitration to resolve any dispute
          arising out of or relating in any way to the mortgage loan
          transaction.

        (hhh)
          No
          Mortgage Loan is secured by Mortgaged Property in the Commonwealth of
          Massachusetts with a loan application date on or after November 7, 2004
          that
          refinances a mortgage loan that is less than sixty (60) months old, unless
          such
          Mortgage Loan (i) is on an investment property, (ii) meets the requirements
          set
          forth in the Code of Massachusetts Regulation (“CMR”), 209 CMR 53.04(1)(b), or
          (iii) meets the requirements set forth in the 209 CMR 53.04(1)(c).

         

        9.
           Section
          4.03 shall be amended to include the following:

         

        “For
          all
          second lien Mortgage Loans only, the
          Company shall use its best efforts, consistent with the procedures that
          the
          Company would use in servicing loans for its own account, consistent with
          Accepted Servicing Practices, any Primary Mortgage Insurance Policies and
          the
          best interest of Purchaser, to foreclose upon or otherwise comparably convert
          the ownership of properties securing such of the Mortgage Loans as come
          into and
          continue in default and as to which no satisfactory arrangements can be
          made for
          collection of delinquent payments. In addition, for all second lien Mortgage
          Loans only, if the Company reasonably believes that Liquidation Proceeds
          with
          respect to any such Mortgage Loan would not be increased as a result of
          such
          foreclosure or other action, such Mortgage Loan will be charged-off or
          will
          become a liquidated Mortgage Loan. The Company will give notice of any
          such
          charge-off to the Purchaser. The decision of the Company to foreclose on
          a
          defaulted second lien Mortgage Loan shall be subject to a determination
          by the
          Company that the proceeds of such foreclosure would exceed the costs and
          expenses of bringing such a proceeding. 

         

        Further,
          for all second lien Mortgage Loans, the Company agrees that it shall provide
          to
          Purchaser within one hundred twenty (120) days of default for any such
          second
          lien Mortgage Loan a bid pass package to Purchaser containing all relevant
          information and any necessary supporting documentation needed for Purchaser
          to
          determine whether to foreclose or charge-off such second lien Mortgage
          Loan. For
          any such second lien Mortgage Loan, Purchaser shall advise Company of its
          decision to foreclose or charge-off by no later than one hundred eighty
          (180)
          days of default of such second lien Mortgage Loan. In addition, notwithstanding
          anything contrary contained herein, Company will cease collection activity
          on
          any second lien Mortgage Loan that is twelve (12) months or more delinquent.”

         

        10.
           Section
          4.03 shall be amended to include as the final paragraph:

         

        “If
          the
          Mortgage relating to a Mortgage Loan had a lien senior to the Mortgage
          Loan on
          the related Mortgaged Property as of the Cut-off Date, then the Company,
          in such
          capacity, may consent to the refinancing of the prior senior lien, provided
          that
          the following requirements are met: (i) the resulting combined Loan-to-Value
          Ratio of such Mortgage Loan is no higher than the combined Loan-to-Value
          Ratio
          prior to such refinancing; and (ii) the interest rate, or, in the case
          of an
          adjustable rate existing senior lien, the maximum interest rate, for the
          loan
          evidencing the refinanced senior lien is no more than 2.0% higher than
          the
          interest rate or the maximum interest rate, as the case may be, on the
          loan
          evidencing the existing senior lien immediately prior to the date of such
          refinancing; and (iii) the loan evidencing the refinanced senior lien is
          not
          subject to negative amortization.”

         

        11.
           Section
          5.01 shall be amended to add; “Notwithstanding anything to the contrary
          contained herein, for all second lien Mortgage Loans only, Company shall,
          within
          five (5) business days of receipt, distribute by wire transfer of immediately
          available funds to the Purchaser all Principal Prepayments made in
          full.”

         

        12. Section
          5.03 shall be amended to add; “For first lien Mortgage Loans only,” at the start
          of the first sentence. Further, Section 5.03 shall be amended to add as
          a third
          paragraph; “Notwithstanding anything to the contrary contained herein, the
          Company’s obligations to make such Monthly Advances shall only extend to first
          lien Mortgage Loans and Company shall not make such Monthly Advances for
          any
          second lien Mortgage Loan.”

         

        13. Section
          5.05 shall be amended to add; “For first lien Mortgage Loans only,” at the start
          of the first sentence. Further, Section 5.05 shall be amended to add as
          a second
          sentence; “Notwithstanding anything to the contrary contained herein, the
          Company’s obligations to make such Prepayment Interest Shortfalls shall only
          extend to first lien Mortgage Loans and Company shall not make such Prepayment
          Interest Shortfalls for any second lien Mortgage Loan.”

        14. Section
          9.01(viii) shall be amended to replace “or second lien” following the term
“first lien

        

        15. Section
          11.10 shall be amended to include the following as a third
          paragraph:

        

        “The
          Company agrees that the Company (i) shall comply with any applicable laws
          and
          regulations regarding the privacy and security of Consumer Information
          including, but not limited to the Gramm-Leach-Bliley
          Act, Title V, Subtitle A, 15 U.S.C. § 6801 et seq.,
          (ii)
          shall not use Consumer Information in any manner inconsistent with any
          applicable laws and regulations regarding the privacy and security of Consumer
          Information, (iii) shall not disclose Consumer Information to third parties
          except at the specific written direction of the Purchaser, (iv) shall maintain
          adequate physical, technical and administrative safeguards to protect Consumer
          Information from unauthorized access as provided by the applicable laws
          and
          regulations, and (v) shall immediately notify the Purchaser of any actual
          or
          suspected breach of the confidentiality of Consumer Information that would
          have
          a material and adverse effect on the Purchaser. Consumer Information
          includes, but is not limited to, all personal information about the Mortgagors
          that is supplied to the Purchaser by or on behalf of the Company. The
          Company agrees that the Company shall indemnify, defend and hold the Purchaser
          harmless from and against any loss, claim or liability the Purchaser may
          suffer
          by reason of the Company's failure to perform the obligations set forth
          in this
          Section 11.10.”

        

        16. Section
          11.18 shall be amended to include; “Notwithstanding
          anything to the contrary in this Section 11.18, the Company agrees that
          it is
          required to perform the obligations described in Exhibit K hereto” at the end of
          the first flush paragraph.

        

        17. Section
          11.19 shall be deleted in its entirety and replaced with the
          following:

        

        Section
          11.19. Monthly
          Reporting with Respect to a Reconstitution.

        

        As
          long
          as the Company continues to service Mortgage Loans and until the Company
          has
          updated its servicing or reporting system to report on a transmittal basis,
          the
          Company agrees that with respect to any Mortgage Loan sold or transferred
          pursuant to a Reconstitution as described in Section 11.18 of this Agreement
          (a
“Reconstituted Mortgage Loan”), the Company, at its expense, shall provide the
          Purchaser with the information set forth in Exhibit J attached hereto for
          each
          Reconstituted Mortgage Loan in Excel or such electronic delimited file
          format as
          may be mutually agreed upon by both Purchaser and Company. Such information
          shall be provided monthly for all Reconstituted Mortgage Loans on the fifth
          (5th)
          Business Day of each month for the immediately preceding monthly period,
          and
          shall be transmitted to fast.data@bear.com.
          The
          Company and Purchaser agree that the Company shall inform Purchaser when
          it has
          updated its servicing or reporting system to report on a transmittal basis.
          At
          such time, Company and Purchaser agree to determine how, if it all, any
          reports
          should be sent under this Section 11.19.

        

        18. Section
          11.21 shall be added to the Agreement:

        

        Section
          11.21. Signature
          Pages/Counterparts. Notwithstanding
          anything to the contrary in the Agreement, this Term Sheet shall be executed
          by
          each party (i) in one or more fully executed copies, each of which shall
          constitute a fully executed original Term Sheet, and/or (ii) in counterparts
          having one or more original signatures, and all such counterparts containing
          the
          original signatures of all of the parties hereto taken together shall constitute
          a fully executed original Term Sheet, and/or (iii) by delivery of one or
          more
          original signed signature pages to the other parties hereto (x) by mail
          or
          courier, and/or (y) by electronic transmission, including without limitation
          by
          telecopier, facsimile or email of a scanned image (“Electronic Transmission”),
          each of which as received shall constitute for all purposes an executed
          original
          signature page of such party. The Purchaser may deliver a copy of this
          Term
          Sheet, fully executed as provided herein, to each other party hereto by
          mail
          and/or courier and/or Electronic Transmission, and such copy as so delivered
          shall constitute a fully executed original Term Sheet, superseding any
          prior
          form of the Term Sheet that differs therefrom in any respect related to
          the
          Mortgage Loans hereunder.”

         

        19. Capitalized
          terms used but not defined herein shall have the meanings ascribed to them
          in
          the Agreement.

        

        20. All
          other
          terms and conditions of the Agreement remain unchanged and in full force
          and
          effect.

        

        

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to
          be
          executed and delivered by their proper and duly authorized officers as
          of the
          day and year first above written.

        

         

        EMC
          MORTGAGE CORPORATION

        Purchaser

        

        By:________________________

        Name:
          

        Title:
          

        

        FIRST
          HORIZON HOME LOAN

        CORPORATION

        Seller

        

        By:
          _______________________

        Name:

        Title:

        

        FIRST
          TENNESSEE MORTGAGE 

        SERVICES,
          INC.

                  
          Servicer

        

        By:
          _______________________

        Name:

        Title:

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          J

        

        RECONSTITUTED
          MORTGAGE LOAN REPORTING

        (Reports
          sent electronically in Text or Excel Format)

        

         

        (a) Servicer
          Mortgage Loan Number  

        (b) FNMA
          Mortgage Loan Number (if applicable)

        (c) Lender/Seller
          Mortgage Loan Number (plus any other loan number)

        (d) Month
          end
          date/ date file created 

        (e) Scheduled
          Beginning Balance 

        (f) Actual
          Beginning Balance 

        (g) Scheduled
          Ending Balance 

        (h) Actual
          Ending Balance 

        (i) Gross
          Rate (current gross rate)

        (j) Net
          Rate
          (current passthrough)

        (k) Last
          Payment Date (LPI_DATE in Fannie's Laser Reporting)- S/S reporting
          only

        (l) Next
          Due
          Date -
          A/A
          reporting only

        (m)
          Default Reporting Data

        (i)
          Servicer Loan Number

        (ii)
          Investor Loan Number

        (iii)
          Borrower Last Name

        (iv)
          60
          Days

        (v)
          90
          Days

        (vi)
          120
          Days & Over

        (vii)
          Due
          Date

        (viii)
          Status Code

        (ix)
          Foreclosure Start Date

        (x)
          Foreclosure End Date

        (xi)
          Foreclosure Sale Date

        (xii)Bankruptcy
          Chapter

        (xiii)
          Bankruptcy Start Date

        (xiv)
          Bankruptcy End Date

        (xv)
          Bankruptcy Post Petition Due Date

        (xvi)
          Bankruptcy Case #

        (xvii)
          REO Start Date

        (xviii)
          REO Sale Date

        (xix)
          Comment

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          K

        

        COMPANY’S
          OBLIGATIONS IN CONNECTION 

        WITH
          A
          RECONSTITUTION

        

        
          	·  	
                  The
                    Company shall (i) possess the ability to service to a securitization
                    documents; (ii) service on a “Scheduled/Scheduled” reporting basis
                    (advancing through the liquidation of an REO Property), (iii)
                    make
                    compensating interest payments on payoffs and curtailments and
                    (iv) remit
                    and report to a master servicer in format acceptable to such
                    master
                    servicer.

                

        

        

        
          	·  	
                  The
                    Company shall provide an acceptable annual certification (officer’s
                    certificate) to the master servicer (as required by the Sarbanes-Oxley
                    Act
                    of 2002) as well as any other annual certifications required
                    under the
                    securitization documents (i.e. the annual statement as to
                    compliance/annual independent certified public accountants’ servicing
                    report due).

                

        

        

        
          	·  	
                  The
                    Company shall allow for the Purchaser, the master servicer or
                    their
                    designee to perform a review of audited financials and net worth
                    of the
                    Company.

                

        

        

        
          	·  	
                  The
                    Company shall provide a Uniform Single Attestation Program certificate
                    and
                    Management Assertion as requested by the master servicer and/or
                    the
                    Purchaser.

                

        

        

        
          	·  	
                  The
                    Company shall provide information on each Custodial Account as
                    requested
                    by the master servicer and/or the Purchaser, and each Custodial
                    Accounts
                    shall comply with the requirements for such accounts as set forth
                    in the
                    securitization documents.

                

        

        

        
          	·  	
                  The
                    Company shall provide any additional information as reasonably
                    requested
                    by Purchaser and/or the master
                    servicer.

                

        

        

        

        

        

         

        

         

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        AMENDMENT
          NO. 3 TO PURCHASE, WARRANTIES 

        AND
          SERVICING AGREEMENT

        

        

        THIS
          AMENDMENT NO. 3, effective as of August 8, 2005, amends the Purchase, Warranties
          and Servicing Agreement among EMC Mortgage Corporation (the “Purchaser”), First
          Tennessee Mortgage Services, Inc., as servicer (the “Servicer”) and First
          Horizon Home Loan Corporation (the “Seller”, and together with the Servicer, the
“Company”), previously entered into as of September 1, 2003 (the “Agreement”),
          as previously amended. 

        

        RECITALS

        

        WHEREAS,
          the Seller sells to the Purchaser, and the Purchaser purchases from the
          Seller,
          from time to time, pursuant to the Agreement, certain conventional residential
          Mortgage Loans on a servicing retained basis serviced by the Servicer,
          including
          second lien loans; and

        

        WHEREAS,
          in connection with future sales of Mortgage Loans to the Purchaser, the
          Company
          and the Purchaser wish to amend the Agreement as set forth below.

        

        NOW,
          THEREFORE, in consideration of the premises and the mutual covenants hereinafter
          set forth and for good and valuable consideration, the receipt and sufficiency
          of which are hereby acknowledged, the Purchaser and the Company agree to
          amend
          the Agreement as follows:

        

        
          	1.  	
                  Section
                    2.09 shall be deleted in its entirety and replaced with the
                    following:

                

        

        

        Section
          2.09 Near-term
          Principal Prepayments in Full; Near Term Payment Defaults

        

        In
          the
          event any Principal Prepayment in full is made by a Mortgagor on or prior
          to
          three months after the related Closing Date, the Company shall remit to
          the
          Purchaser an amount equal to the excess, if any, of the Purchase Price
          Percentage over par multiplied by the amount of such Principal Prepayment
          in
          full, provided however, that the Company shall not be required to remit
          any
          payments to the Purchaser pursuant to this paragraph unless the Purchaser
          has
          notified the Company within one hundred eighty (180) days following Closing
          Date. Such remittance shall be made by the Company to Purchaser not later
          than
          five (5) Business Days after notice to the Company.

        

        In
          the
          event either of the first three (3) scheduled Monthly Payments which are
          due
          under any Mortgage Loan after the related Cut-off Date are not made during
          the
          month in which such Monthly Payments are due, then not later than five
          (5)
          Business Days after notice to the Company by Purchaser (and at Purchaser’s sole
          option), the Company, shall repurchase such Mortgage Loan from the Purchaser
          pursuant to the repurchase provisions contained in this Subsection 3.03,
          provided however, that the Company shall not be required to repurchase
          any
          Mortgage Loan pursuant to this paragraph unless the Purchaser has notified
          the
          Company within one hundred eighty (180) days following Closing
          Date.

         

        2. Capitalized
          terms used but not defined herein shall have the meanings ascribed to them
          in
          the Agreement.

        

        3. All
          other
          terms and conditions of the Agreement remain unchanged and in full force
          and
          effect.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have caused this Amendment No. 3 to
          be
          executed and delivered by their proper and duly authorized officers as
          of the
          day and year first above written.

        

         

        EMC
          MORTGAGE CORPORATION

        Purchaser

        

        By:________________________

        Name:
          

        Title:
          

        

        FIRST
          HORIZON HOME LOAN

        CORPORATION

        Seller

        

        By:
          _______________________

        Name:

        Title:

        

        FIRST
          TENNESSEE MORTGAGE 

        SERVICES,
          INC.

                       
          Servicer

        

        By:
          _______________________

        Name:

        Title:

         

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        AMENDMENT
          NUMBER FOUR

         

        to
          the

        

        PURCHASE,
          WARRANTIES AND SERVICING AGREEMENT

        

        Dated
          as
          of September 1, 2003

        

        among

        

        EMC
          MORTGAGE CORPORATION, 

        as
          Purchaser

        

        and

        

        FIRST
          TENNESSEE MORTGAGE SERVICES, INC.

        as
          Servicer,

        

        FIRST
          HORIZON HOME LOAN CORPORATION,

        as
          Seller

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        This
          AMENDMENT NUMBER FOUR (this “Amendment”) is made and entered into this
          22nd
          day of
          December, 2005, by and among EMC Mortgage Corporation, a Delaware corporation,
          as purchaser (the “Purchaser”) and First Tennessee Mortgage Services, Inc., as
          servicer (the “Servicer”) and First Horizon Home Loan Corporation (the “Seller”,
          and together with the Servicer, the “Company”) in connection with the Purchase,
          Warranties and Servicing Agreement, dated as of September 1, 2003, between
          the
          above mentioned parties (the “Agreement”). 

        

        RECITALS

         

        WHEREAS,
           the
          parties hereto have entered into the Agreement; 

        

        WHEREAS,
          the Agreement provides that the parties thereto may enter into an amendment
          to
          the Agreement;

        

        WHEREAS,
          the parties hereto desire to amend the Agreement as set forth in this Amendment;
          and

        

        NOW,
          THEREFORE, in consideration of the premises and for other good and valuable
          consideration, the receipt and sufficiency of which is hereby acknowledged,
          the
          parties hereto agree as follows:

        

        1. Capitalized
          terms used herein and not defined herein shall have the meanings assigned
          to
          such terms in the Agreement. 

        

        2. Article
          I
          of the Agreement is hereby amended effective as of the date hereof by adding
          the
          following definitions to Section 1.01: 

        

        Commission
          or SEC:
          The
          Securities and Exchange Commission.

        

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

        

        Pass-Through
          Transfer:
          Any
          transaction involving either (1) a sale or other transfer of some or all
          of the
          Mortgage Loans directly or indirectly to an issuing entity in connection
          with an
          issuance of publicly offered or privately placed, rated or unrated
          mortgage-backed securities or (2) an issuance of publicly offered or privately
          placed, rated or unrated securities, the payments on which are determined
          primarily by reference to one or more portfolios of residential mortgage
          loans
          consisting, in whole or in part, of some or all of the Mortgage
          Loans.

        

        Qualified
          Correspondent:
          Any
          Person from which the Company purchased Mortgage Loans, provided that the
          following conditions are satisfied: (i) such Mortgage Loans were originated
          pursuant to an agreement between the Company and such Person that contemplated
          that such Person would underwrite mortgage loans from time to time, for
          sale to
          the Company, in accordance with underwriting guidelines designated by the
          Company (“Designated Guidelines”) or guidelines that do not vary materially from
          such Designated Guidelines; (ii) such Mortgage Loans were in fact underwritten
          as described in clause (i) above and were acquired by the Company within
          180
          days after origination; (iii) either (x) the Designated Guidelines were,
          at the
          time such Mortgage Loans were originated, used by the Company in origination
          of
          mortgage loans of the same type as the Mortgage Loans for the Company’s own
          account or (y) the Designated Guidelines were, at the time such Mortgage
          Loans
          were underwritten, designated by the Company on a consistent basis for
          use by
          lenders in originating mortgage loans to be purchased by the Company; and
          (iv)
          the Company employed, at the time such Mortgage Loans were acquired by
          the
          Company, pre-purchase or post-purchase quality assurance procedures (which
          may
          involve, among other things, review of a sample of mortgage loans purchased
          during a particular time period or through particular channels) designed
          to
          ensure that Persons from which it purchased mortgage loans properly applied
          the
          underwriting criteria designated by the Company.

        

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

        

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

        

        Servicing
          Criteria:
          As of
          any date of determination, the “servicing criteria” set forth in Item 1122(d) of
          Regulation AB, or any amendments thereto, a summary of the requirements
          of which
          as of the date hereof is attached hereto as Exhibit M for convenience of
          reference only. In the event of a conflict or inconsistency between the
          terms of
          Exhibit M and the text of Item 1122(d) of Regulation AB, the text of Item
          1122(d) of Regulation AB shall control.

        

        Static
          Pool Information:
          Static
          pool information as described in Item 1105(a)(1)-(3) and 1105(c) of Regulation
          AB.

        

        Subcontractor:
          Any
          vendor, subcontractor or other Person that is not responsible for the overall
          servicing (as “servicing” is commonly understood by participants in the
          mortgage-backed securities market) of Mortgage Loans but performs one or
          more
          discrete functions identified in Item 1122(d) of Regulation AB with respect
          to
          Mortgage Loans under the direction or authority of the Company or a Subservicer.
          

        

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

        

        Third-Party
          Originator:
          Each
          Person, other than a Qualified Correspondent, that originated Mortgage
          Loans
          acquired by the Company.

        

        3. Article
          III of the Agreement is hereby amended effective as of the date hereof
          by
          revising Section 3.01(n) as follows (new text underlined):

        

        (n) Company
          has delivered to the Purchaser financial statements of its parent, for
          its last
          two complete fiscal years. All such financial information fairly presents
          the
          pertinent results of operations and financial position for the period identified
          and has been prepared in accordance with GAAP consistently applied throughout
          the periods involved, except as set forth in the notes thereto. There has
          been
          no change in the servicing
          policies and procedures,
          business, operations, financial condition, properties or assets of the
          Company
          since the date of the Company’s financial information that would have a material
          adverse effect on its ability to perform its obligations under this
          Agreement;

        

        4. Article
          III of the Agreement is hereby amended effective as of the date hereof
          by adding
          the following new Section 3.01(p):

        

        (p) As
          of the
          date of each Pass-Through Transfer, and except as has been otherwise disclosed
          to the Purchaser: (1) no default or servicing related performance trigger
          has
          occurred as to any other securitization due to any act or failure to act
          of the
          Company; (2) no material noncompliance with applicable servicing criteria
          as to
          any other securitization has been disclosed or reported by the Company;
          (3) the
          Company has not been terminated as servicer in a residential mortgage loan
          securitization, either due to a servicing default or to application of
          a
          servicing performance test or trigger; (4) no material changes to the Company’s
          servicing policies and procedures for similar loans has occurred in the
          preceding three years; (5) there are no aspects of the Company’s financial
          condition that could have a material adverse impact on the performance
          by the
          Company of its obligations hereunder; (6) there are no legal proceedings
          pending, or known to be contemplated by governmental authorities, against
          the
          Company that could be material to investors in the securities issued in
          such
          Pass-Through Transfer; and (7) there are no affiliations, relationships
          or
          transactions relating to the Company of a type that are described under
          Item
          1119 of Regulation AB.

        

        5. Article
          III of the Agreement is hereby amended effective as of the date hereof
          by adding
          the following new Section 3.01(q):

        

        (q) If
          so
          requested by the Purchaser or any Depositor on any date, the Company shall,
          within five Business Days following such request, confirm in writing the
          accuracy of the representations and warranties set forth in Section 3.01(p)
          of
          this Section or, if any such representation and warranty is not accurate
          as of
          the date of such request, provide reasonably adequate disclosure of the
          pertinent facts, in writing, to the requesting party.

        

        6. Article
          III of the Agreement is hereby amended effective as of the date hereof
          by adding
          the following new Section 3.01(r):

        

        (r) If
          so
          requested by the Purchaser or any Depositor for the purpose of satisfying
          its
          reporting obligation under the Exchange Act with respect to any class of
          asset-backed securities, the Company shall (or shall cause each Subservicer
          and
          Third-Party Originator to) (i) notify the Purchaser and any Depositor in
          writing
          of (A) any material litigation or governmental proceedings pending against
          the
          Company, any Subservicer or any Third-Party Originator and (B) any affiliations
          or relationships that develop following the closing date of a Pass-Through
          Transfer between the Company, any Subservicer or any Third-Party Originator
          and
          any of the parties specified in clause (7) of paragraph (p) of this Section
          (and
          any other parties identified in writing by the requesting party) with respect
          to
          such Pass-Through Transfer, and (ii) provide to the Purchaser and any Depositor
          a description of such proceedings, affiliations or relationships.

        

        7. Article
          III of the Agreement is hereby amended effective as of the date hereof
          by adding
          the following new Section 3.01(s):

        

        (s) As
          a
          condition to the succession to the Company or any Subservicer as servicer
          or
          subservicer under this Agreement or any Reconstitution Agreement by any
          Person
          (i) into which the Company or such Subservicer may be merged or consolidated,
          or
          (ii) which may be appointed as a successor to the Company or any Subservicer,
          the Company shall provide to the Purchaser and any Depositor, at least
          [15]
          calendar days prior to the effective date of such succession or appointment,
          (x)
          written notice to the Purchaser and any Depositor of such succession or
          appointment and (y) in writing and in form and substance reasonably satisfactory
          to the Purchaser and such Depositor, all information reasonably requested
          by the
          Purchaser or any Depositor in order to comply with its reporting obligation
          under Item 6.02 of Form 8-K with respect to any class of asset-backed
          securities.

        

        8. Article
          IV of the Agreement is hereby amended effective as of the date hereof by
          revising the first paragraph of Section 4.03 by adding the following after
          the
          first sentence:

        

        In
          determining the delinquency status of any Mortgage Loan, the Company will
          use
          delinquency recognition policies as described to and approved by the Purchaser,
          and shall revise these policies as requested by the Purchaser from time
          to
          time.

        

        9. Article
          V
          of the Agreement is hereby amended effective as of the date hereof by deleting
          Section 5.02 in its entirety and replacing it with the following:

        

        Section
          5.02 Statements
          to the Purchaser.

        

        The
          Company shall furnish to Purchaser an individual loan accounting report,
          as of
          the last Business Day of each month, in the Company's assigned loan number
          order
          to document Mortgage Loan payment activity on an individual Mortgage Loan
          basis.
          With respect to each month, the corresponding individual loan accounting
          report
          shall be received by the Purchaser no later than the fifth Business Day
          of the
          following month on a disk or tape or other computer-readable format in
          such
          format as may be mutually agreed upon by both Purchaser and Company, and
          shall
          contain the following:

        

        (i) with
          respect to each Mortgage Loan and each Monthly Payment, the amount of such
          remittance allocable to principal (including a separate breakdown of any
          Principal Prepayment, including the date of such prepayment, and any prepayment
          penalties or premiums, along with a detailed report of interest on principal
          prepayment amounts remitted in accordance with Section 4.04);

        

        (ii) reserved;

        

        (iii) reserved;

        

        (iv) the
          Stated Principal Balance of each Mortgage Loan and the aggregate Stated
          Principal Balance of all Mortgage Loans as of the first day of the distribution
          period and the last day of the distribution period;

        

        (v) with
          respect to each Mortgage Loan, the current Mortgage Interest Rate;

        

        (vi) with
          respect to each Mortgage Loan, the aggregate amount of any Insurance Proceeds,
          Condemnation Proceeds, Liquidation Proceeds and REO Disposition Proceeds
          received during the prior distribution period;

        

        (vii) reserved;
          

        

        (viii) reserved;

        

        (ix) the
          number of Mortgage Loans as of the first day of the distribution period
          and the
          last day of the distribution period; 

        

        (x) with
          respect to each Mortgage Loan, the Stated Principal Balance of each Mortgage
          Loan (a) delinquent as grouped in the following intervals through final
          liquidation of such Mortgage Loan: 30 to 59 days, 60 to 89 days, 90 days
          or
          more; (b) as to which foreclosure has commenced; and (c) as to which REO
          Property has been acquired;

        

        (xi) with
          respect to each Mortgage Loan, the amount and severity of any realized
          loss
          following liquidation of such Mortgage Loan; 

        

        (xii) with
          respect to each Mortgage Loan, and in the aggregate for all Mortgage Loans,
          the
          amount of any Monthly Advances made by the Company during the prior distribution
          period; 

        

        (xiii) reserved;

        

        (xiv) reserved;

        

        (xv) reserved;
          

        

        (xvi) with
          respect to any Mortgage Loan, a description of any material modifications,
          extensions or waivers to the terms, fees, penalties or payments of such
          Mortgage
          Loan during the prior distribution period or that have cumulatively become
          material over time;

        

        (xvii) reserved;

        

        (xviii) reserved;

        

        (xix) with
          respect to each Mortgage Loan, the Stated Principal Balance of any Mortgage
          Loan
          that has been repurchased by the Company in accordance with Section 3.03
          herein;

        

        (xx)
          any
          other information required by Purchaser or master servicer necessary for
          compliance with Item 1121 of Regulation AB.

        

        In
          addition, the Company shall provide to the Purchaser such other information
          known or available to the Company that is necessary in order to provide
          the
          distribution and pool performance information as required under Item 1121
          of
          Regulation AB, as amended from time to time, as determined by the Purchaser
          in
          its sole reasonable discretion. The Company shall also provide a trial
          balance,
          sorted in Purchaser's assigned loan number order, in the form of Exhibit
          E
          hereto, and Exhibit F with respect to defaulted mortgage loans, with each
          such
          report. 

        

        The
          Company shall prepare and file any and all information statements or other
          filings required to be delivered to any governmental taxing authority or
          to
          Purchaser pursuant to any applicable law with respect to the Mortgage Loans
          and
          the transactions contemplated hereby. In addition, the Company shall provide
          Purchaser with such information concerning the Mortgage Loans as is necessary
          for Purchaser to prepare its federal income tax return as Purchaser may
          reasonably request from time to time.

         

        10. Article
          VI of the Agreement is hereby amended effective as of the date hereof by
          deleting Section 6.04 in its entirety and replacing it with the
          following:

        

        Section
          6.04 Annual
          Statement as to Compliance; Annual Certification.

        

        (a) The
          Company will deliver to the Purchaser, to deliver to the Purchaser or its
          designee on or before March 1 of each calendar year beginning in 2006,
          but in no
          event later than March 15th
          of each
          calendar year beginning in 2006, an Officers’ Certificate acceptable to the
          Purchaser (an “Annual Statement of Compliance”) stating, as to each signatory
          thereof, that (i) a review of the activities of the Company during the
          preceding
          calendar year and of performance under this Agreement or other applicable
          servicing agreement has been made under such officers’ supervision and (ii) to
          the best of such officers’ knowledge, based on such review, the Company has
          fulfilled all of its obligations under this Agreement or other applicable
          servicing agreement in all material respects throughout such year, or,
          if there
          has been a failure to fulfill any such obligation in any material respect,
          specifying each such failure known to such officer and the nature and status
          of
          cure provisions thereof. Such Annual Statement of Compliance shall contain
          no
          restrictions or limitations on its use. Copies of such statement shall
          be
          provided by the Company to the Purchaser upon request and by the Purchaser
          to
          any Person identified as a prospective purchaser of the Mortgage Loans.
          In the
          event that the Company has delegated any servicing responsibilities with
          respect
          to the Mortgage Loans to a Subservicer, the Company shall deliver an officer’s
          certificate of the Subservicer as described above as to each Subservicer
          as and
          when required with respect to the Company.

        

        (b) With
          respect to any Mortgage Loans that are the subject of a Pass-Through Transfer,
          by on or before March 1 of each calendar year beginning in 2006, but in
          no event
          later than March 15th
          of each
          calendar year beginning in 2006, an officer of the Company shall execute
          and
          deliver an Officers’ Certificate (an “Annual Certification”) to the Purchaser,
          any master servicer which is master servicing loans in connection with
          such
          transaction (a “Master Servicer”) and any related depositor (a “Depositor”) for
          the benefit of each such entity and such entity’s affiliates and the officers,
          directors and agents of any such entity and such entity’s affiliates, in the
          form attached hereto as Exhibit L. In the event that the Company has delegated
          any servicing responsibilities with respect to the Mortgage Loans to a
          Subservicer, the Company shall deliver an officers’ certificate of the
          Subservicer as described above as to each Subservicer as and when required
          with
          respect to the Company.

        

        Failure
          of the Company to timely comply with this Section 6.04 shall be deemed
          an Event
          of Default, automatically, without notice and without any cure period,
          and
          Purchaser may, in addition to whatever rights the Purchaser may have under
          Sections 3.03 and 8.01 and at law or equity or to damages, including injunctive
          relief and specific performance, terminate all the rights and obligations
          of the
          Company under this Agreement and in and to the Mortgage Loans and the proceeds
          thereof without compensating the Company for the same, as provided in Section
          9.01. Such termination shall be considered with cause pursuant to Section
          10.01
          of this Agreement. This paragraph shall supercede any other provision in
          this
          Agreement or any other agreement to the contrary.

        

        11. Article
          VI of the Agreement is hereby amended effective as of the date hereof by
          deleting Section 6.05 in its entirety and replacing it with the
          following:

        

        Section
          6.05 Annual
          Independent Certified Public Accountants' Servicing Report.

        

        The
          Company, at its expense and on or before March 1 of each calendar year
          beginning
          in 2006, but in no event later than March 15th
          of each
          calendar year beginning in 2006, shall cause a firm of independent public
          accountants which is a member of the American Institute of Certified Public
          Accountants to furnish a report (a “USAP Report”) to the Purchaser acceptable to
          the Purchaser to the effect that such firm has examined certain documents
          and
          records relating to the Company's servicing of mortgage loans of the same
          type
          as the Mortgage Loans pursuant to servicing agreements substantially similar
          to
          this Agreement, which agreements may include this Agreement, and that,
          on the
          basis of such an examination, conducted substantially in the uniform single
          audit program for mortgage bankers, such firm is of the opinion that the
          Company's servicing has been conducted in compliance with the agreements
          examined pursuant to this Section 6.05 during the preceding calendar year,
          except for (i) such exceptions as such firm shall believe to be immaterial,
          and
          (ii) such other exceptions as shall be set forth in such USAP Report. Such
          USAP
          Report shall contain no restrictions or limitations on its use. Copies
          of such
          USAP Report shall be provided by the Company to the Purchaser. In addition,
          on
          an annual basis, Company shall provide Purchaser with copies of its audited
          financial statements.

        

        In
          the
          event that the Company has delegated any servicing responsibilities with
          respect
          to the Mortgage Loans to a Subservicer, the Company shall provide a USAP
          report
          of the Subservicer as described above as to each Subservicer as and when
          required with respect to the Company.

        

        Notwithstanding
          the foregoing, the Company’s obligation to deliver a USAP Report under this
          Section, as to the Company or any Subservicer, as to any calendar year,
          beginning with the report required in February 2007, shall be satisfied
          if an
          Assessment of Compliance and Attestation Report is delivered in compliance
          with
          Section 6.07 for such calendar year with respect to that entity.

        

        Failure
          of the Company to timely comply with this Section 6.05 shall be deemed
          an Event
          of Default, automatically, without notice and without any cure period,
          and
          Purchaser may, in addition to whatever rights the Purchaser may have under
          Sections 3.03 and 8.01 and at law or equity or to damages, including injunctive
          relief and specific performance, terminate all the rights and obligations
          of the
          Company under this Agreement and in and to the Mortgage Loans and the proceeds
          thereof without compensating the Company for the same, as provided in Section
          9.01. Such termination shall be considered with cause pursuant to Section
          10.01
          of this Agreement. This paragraph shall supercede any other provision in
          this
          Agreement or any other agreement to the contrary.

        

        12. Article
          VI of the Agreement is hereby amended effective as of the date hereof by
          adding
          the following new Section 6.07:

        

        Section
          6.07 Assessment
          of Compliance with Servicing Criteria.

        

        On
          and
          after January 1, 2006, the Company shall service and administer, and shall
          cause
          each subservicer to servicer or administer, the Mortgage Loans in accordance
          with all applicable requirements of the Servicing Criteria.

        

        With
          respect to any Mortgage Loans that are the subject of a Pass-Through Transfer,
          the Company shall deliver to the Purchaser or its designee on or before
          February
          28 of each calendar year beginning in 2007, a report (an “Assessment of
          Compliance”) reasonably satisfactory to the Purchaser regarding the Company’s
          assessment of compliance with the Servicing Criteria during the preceding
          calendar year as required by Rules 13a-18 and 15d-18 of the Exchange Act
          and
          Item 1122 of Regulation AB, which as of the date hereof, require a report
          by an
          authorized officer of the Company that contains the following:

        

        (a) A
          statement by such officer of its responsibility for assessing compliance
          with
          the Servicing Criteria applicable to the Company;

        

        (b) A
          statement by such officer that such officer used the Servicing Criteria
          to
          assess compliance with the Servicing Criteria applicable to the
          Company;

        

        (c) An
          assessment by such officer of the Company’s compliance with the applicable
          Servicing Criteria for the period consisting of the preceding calendar
          year,
          including disclosure of any material instance of noncompliance with respect
          thereto during such period, which assessment shall be based on the activities
          it
          performs with respect to asset-backed securities transactions taken as
          a whole
          involving the Company, that are backed by the same asset type as the Mortgage
          Loans;

        

        (d) A
          statement that a registered public accounting firm has issued an attestation
          report on the Company’s Assessment of Compliance for the period consisting of
          the preceding calendar year; and

        

        (e) A
          statement as to which of the Servicing Criteria, if any, are not applicable
          to
          the Company, which statement shall be based on the activities it performs
          with
          respect to asset-backed securities transactions taken as a whole involving
          the
          Company, that are backed by the same asset type as the Mortgage
          Loans.

        

        Such
          report at a minimum shall address each of the Servicing Criteria specified
          on a
          certification substantially in the form of Exhibit O hereto delivered to
          the
          Purchaser concurrently with the execution of this Agreement.

        

        With
          respect to any Mortgage Loans that are the subject of a Pass-Through Transfer,
          on or before February 28 of each calendar year beginning in 2007, the Company
          shall furnish to the Purchaser or its designee a report (an “Attestation
          Report”) by a registered public accounting firm that attests to, and reports on,
          the Assessment of Compliance made by the Company, as required by Rules
          13a-18
          and 15d-18 of the Exchange Act and Item 1122(b) of Regulation AB, which
          Attestation Report must be made in accordance with standards for attestation
          reports issued or adopted by the Public Company Accounting Oversight Board.
          

        

        The
          Company shall cause each Subservicer, and each Subcontractor determined
          by the
          Company pursuant to Section 11.19 to be “participating in the servicing
          function” within the meaning of Item 1122 of Regulation AB, to deliver to the
          Purchaser and any Depositor an assessment of compliance and accountants’
attestation as and when provided in Sections 6.07.

        

        If
          the
          Company cannot deliver the related Assessment of Compliance or Attestation
          Report by February 28th of such year, the Purchaser, at its sole option,
          may
          permit a cure period for the Company to deliver such Assessment of Compliance
          or
          Attestation Report, but in no event later than March 10th of such
          year.

        

        Failure
          of the Company to timely comply with this Section 6.07 shall be deemed
          an Event
          of Default, automatically, without notice and without any cure period,
          and
          Purchaser may, in addition to whatever rights the Purchaser may have under
          Sections 3.03 and 8.01 and at law or equity or to damages, including injunctive
          relief and specific performance, terminate all the rights and obligations
          of the
          Company under this Agreement and in and to the Mortgage Loans and the proceeds
          thereof without compensating the Company for the same, as provided in Section
          9.01. Such termination shall be considered with cause pursuant to Section
          10.01
          of this Agreement. This paragraph shall supercede any other provision in
          this
          Agreement or any other agreement to the contrary.

        

        13. Article
          VI of the Agreement is hereby amended effective as of the date hereof by
          adding
          the following new Section 6.08:

        

        Section
          6.08 Intent
          of the Parties; Reasonableness.

        

        The
          Purchaser and the Company acknowledge and agree that a purpose of Sections
          3.01(p), 5.02, 6.04, 6.05, 6.07 and 11.18 of this Agreement is to facilitate
          compliance by the Purchaser and any Depositor with the provisions of Regulation
          AB and related rules and regulations of the Commission. Neither the Purchaser
          nor any Depositor shall exercise its right to request delivery of information
          or
          other performance under these provisions other than in good faith, or for
          purposes other than compliance with the Securities Act, the Exchange Act
          and the
          rules and regulations of the Commission thereunder. The Company acknowledges
          that interpretations of the requirements of Regulation AB may change over
          time,
          whether due to interpretive guidance provided by the Commission or its
          staff,
          consensus among participants in the asset-backed securities markets, advice
          of
          counsel, or otherwise, and agrees to comply with requests made by the Purchaser
          or any Depositor in good faith for delivery of information under these
          provisions on the basis of evolving interpretations of Regulation AB. In
          connection with any Pass-Through Transfer, the Company shall cooperate
          fully
          with the Purchaser to deliver to the Purchaser (including any of its assignees
          or designees) and any Depositor, any and all statements, reports,
          certifications, records and any other information necessary in the good
          faith
          determination of the Purchaser or any Depositor to permit the Purchaser
          or such
          Depositor to comply with the provisions of Regulation AB, together with
          such
          disclosures relating to the Company, any Subservicer, any Third-Party Originator
          and the Mortgage Loans, or the servicing of the Mortgage Loans, reasonably
          believed by the Purchaser or any Depositor to be necessary in order to
          effect
          such compliance.

        

        14. Article
          XI of the Agreement is hereby amended effective as of the date hereof by
          restating Section 11.18 in its entirety as follows:

        

        Section
          11.18. Cooperation
          of Company with a Reconstitution.

        

        The
          Company and the Purchaser agree that with respect to some or all of the
          Mortgage
          Loans, on or after the related Closing Date, on one or more dates (each
          a
          "Reconstitution Date") at the Purchaser's sole option and with Purchaser’s best
          efforts to provide notice to the Company fifteen (15) days prior to the
          Reconstitution Date, the Purchaser may effect one or more sales, but in
          no event
          greater than three (3) per pool of Mortgage Loans sold under the related
          Term
          Sheet (each, a "Reconstitution") of some or all of the Mortgage Loans then
          subject to this Agreement, without recourse, to:

        

        (a) one
          or
          more third party purchasers in one or more in whole loan transfers (each,
          a
          "Whole Loan Transfer"); or

        

        (b) one
          or
          more trusts or other entities to be formed as part of one or more Pass-Through
          Transfers.

        

        The
          Company agrees to execute in connection with any agreements among the Purchaser,
          the Company, and any servicer in connection with a Whole Loan Transfer,
          an
          Assignment, Assumption and Recognition Agreement substantially in the form
          of
          Exhibit D hereto, or, at Purchaser’s request, a seller's warranties and
          servicing agreement or a participation and servicing agreement or similar
          agreement in form and substance reasonably acceptable to the parties, and
          in
          connection with a Pass-Through Transfer, a pooling and servicing agreement
          in
          form and substance reasonably acceptable to the parties, (collectively
          the
          agreements referred to herein are designated, the “Reconstitution Agreements”).
          It is understood that any such Reconstitution Agreements will not contain
          any
          greater obligations on the part of Company than are contained in this Agreement.
          Notwithstanding anything to the contrary in this Section 11.18, the Company
          agrees that it is required to perform the obligations described in Exhibit
          K
          hereto.

        

        With
          respect to each Whole Loan Transfer and each Pass-Through Transfer entered
          into
          by the Purchaser, the Company agrees (1) to cooperate fully with the Purchaser
          and any prospective purchaser with respect to all reasonable requests and
          due
          diligence procedures; (2) to execute, deliver and perform all Reconstitution
          Agreements required by the Purchaser; (3) to restate the representations
          and
          warranties set forth in this Agreement as of the settlement or closing
          date in
          connection with such Reconstitution (each, a "Reconstitution Date").

        

        In
          addition, the Company shall provide to such servicer or issuer, as the
          case may
          be, and any other participants in such Reconstitution: 

        

        (i) any
          and
          all information and appropriate verification of information which may be
          reasonably available to the Company, whether through letters of its auditors
          and
          counsel or otherwise, as the Purchaser or any such other participant shall
          request upon reasonable demand; 

        

        (ii) such
          additional representations, warranties, covenants, opinions of counsel,
          letters
          from auditors, and certificates of public officials or officers of the
          Company
          as are reasonably agreed upon by the Company and the Purchaser or any such
          other
          participant;

        

        (iii) within
          5
          Business Days after request by the Purchaser, the information with respect
          to
          the Company (as originator) and each Third-Party Originator of the Mortgage
          Loans as required under Item 1110(a) and (b) of Regulation AB, a summary
          of the
          requirements of which has of the date hereof is attached hereto as Exhibit
          N for
          convenience of reference only, as determined by Purchaser in its sole reasonable
          discretion. If requested by the Purchaser, this will include information
          about
          the applicable credit-granting or underwriting criteria;

        

        (iv) within
          5
          Business Days after request by the Purchaser, to the extent that is required
          Regulation AB, the Company shall provide, to the extent that is reasonably
          available to the Company (and not otherwise available to the Purchaser)
          without
          unreasonable burden, cost or expense (or, as applicable, cause each Third-Party
          Originator to provide) Static Pool Information with respect to the mortgage
          loans (of a similar type as the Mortgage Loans, as reasonably identified
          by the
          Purchaser as provided below) serviced by the Company or any Third-Party
          Originator for a period of 120 days or more and originated by (i) the Company,
          if the Company is an originator of Mortgage Loans (including as an acquirer
          of
          Mortgage Loans from a Qualified Correspondent), and/or (ii) each Third-Party
          Originator in each case to the extent such mortgage loans were purchased
          from
          the Company by the Purchaser. Such Static Pool Information shall be prepared
          by
          the Company (or Third-Party Originator) on the basis of its reasonable,
          good
          faith interpretation of the requirements of Item 1105(a)(1)-(3) and (c)
          of
          Regulation AB for such period of time the Company or Third-Party Origination
          serviced such mortgage loans. To the extent that there is reasonably available
          to the Company (or Third-Party Originator), without unreasonable effort
          or
          expense Static Pool Information with respect to more than one mortgage
          loan
          type, the Purchaser or any Depositor shall be entitled to specify whether
          some
          or all of such information shall be provided pursuant to this paragraph.
          The
          content of such Static Pool Information may be in the form customarily
          provided
          by the Company, and need not be customized for the Purchaser or any Depositor.
          Such Static Pool Information for each vintage origination year or prior
          securitized pool, as applicable, shall be presented in increments no less
          frequently than quarterly over the life of the mortgage loans included
          in the
          vintage origination year or prior securitized pool. The most recent periodic
          increment must be as of a date no later than 135 days prior to the date
          of the
          prospectus or other offering document in which the Static Pool Information
          is to
          be included or incorporated by reference. The Static Pool Information shall
          be
          provided in an electronic format that provides a permanent record of the
          information provided, such as a portable document format (pdf) file, or
          other
          such electronic format reasonably required by the Purchaser or the Depositor,
          as
          applicable. The
          Purchaser agrees that it will cooperate with the Company and provide sufficient
          and timely notice of any information requirement pertaining to a Securitization
          Transaction.  The Purchaser will make all reasonable efforts to contain
          requests for information, reports or any other materials to items required
          for
          compliance with Regulation AB, and will refrain from requesting information
          that
          is not required for such compliance.  The Purchaser further agrees to
          provide the Company with Static Pool Information regarding the Mortgage
          Loans to
          the same extent that the Company is required to provide Static Pool Information
          with respect to mortgage loans similar to the Mortgage Loans
          hereunder. The
          Company shall in good faith use its best efforts to supply the Static Pool
          Information required hereunder; provided, however, that failure of the
          Company
          to perform such obligations, after applying all good faith best efforts,
          shall
          not result in a breach by the Company of the provisions of this
          Agreement;

        

        (v) within
          5
          Business Days after request by the Purchaser, information with respect
          to the
          Company (as servicer) as required by Item 1108(b) and (c) of Regulation
          AB, a
          summary of the requirements of which as of the date hereof is attached
          hereto as
          Exhibit N for convenience of reference only, as determined by Purchaser
          in its
          sole reasonable discretion. In the event that the Company has delegated
          any
          servicing responsibilities with respect to the Mortgage Loans to a Subservicer,
          the Company shall provide the information required pursuant to this clause
          with
          respect to the Subservicer;

        

        (vi) within
          5
          Business Days after request by the Purchaser, 

         

        (a)
          information regarding any legal proceedings pending (or known to be
          contemplated) against the Company (as originator and as servicer) and each
          other
          originator of the Mortgage Loans and each Subservicer as required by Item
          1117
          of Regulation AB, a summary of the requirements of which as of the date
          hereof
          is attached hereto as Exhibit N for convenience of reference only, as determined
          by Purchaser in its sole reasonable discretion,

         

        (b)
          information regarding affiliations with respect to the Company (as originator
          and as servicer) and each other originator of the Mortgage Loans and each
          Subservicer as required by Item 1119(a) of Regulation AB, a summary of
          the
          requirements of which as of the date hereof is attached hereto as Exhibit
          N for
          convenience of reference only, as determined by Purchaser in its sole reasonable
          discretion, and

         

        (c)
          information regarding relationships and transactions with respect to the
          Company
          (as originator and as servicer) and each other originator of the Mortgage
          Loans
          and each Subservicer as required by Item 1119(b) and (c) of Regulation
          AB, a
          summary of the requirements of which as of the date hereof is attached
          hereto as
          Exhibit N for convenience of reference only, as determined by Purchaser
          in its
          sole reasonable discretion; and

        

        (vii) if
          so
          requested by the Purchaser, the Company shall provide (or, as applicable,
          cause
          each Third-Party Originator to provide), at the expense of the Purchaser
          (to the
          extent of any additional incremental expense associated with delivery pursuant
          to this Agreement), such statements and agreed-upon procedures letters
          of
          certified public accountants reasonably acceptable to the Purchaser or
          Depositor, as applicable, pertaining to Static Pool Information relating
          to
          prior securitized pools for securitizations closed on or after January
          1, 2006
          or, in the case of Static Pool Information with respect to the Company’s or
          Third-Party Originator’s originations or purchases, to calendar months
          commencing January 1, 2006, or to any financial information included in
          any
          other disclosure provided under this Section 11.18, as the Purchaser or
          such
          Depositor shall reasonably request. Such statements and letters shall be
          addressed to and be for the benefit of such parties as the Purchaser or
          such
          Depositor shall designate, which may include, by way of example, any Sponsor,
          any Depositor and any broker dealer acting as underwriter, placement agent
          or
          initial purchaser with respect to a Pass-Through Transfer. Any such statement
          or
          letter may take the form of a standard, generally applicable document
          accompanied by a reliance letter authorizing reliance by the addressees
          designated by the Purchaser or such Depositor.

        

        In
          the
          event of a conflict or inconsistency between the terms of Exhibit N and
          the text
          of the applicable Item of Regulation AB as cited above, the text of Regulation
          AB, its adopting release and other public statements of the SEC shall
          control.

        

        The
          Company shall indemnify the Purchaser, each affiliate of the Purchaser,
          and each
          of the following parties participating in a Pass-Through Transfer: each
          sponsor
          and issuing entity; each Person responsible for the preparation, execution
          or
          filing of any report required to be filed with the Commission with respect
          to
          such Pass-Through Transfer, or for execution of a certification pursuant
          to Rule
          13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
          Pass-Through Transfer; each broker dealer acting as underwriter, placement
          agent
          or initial purchaser, each Person who controls any of such parties or the
          Depositor (within the meaning of Section 15 of the Securities Act and Section
          20
          of the Exchange Act); and the respective present and former directors,
          officers,
          employees and agents of each of the foregoing and of the Depositor, and
          shall
          hold each of them harmless from and against any losses, damages, penalties,
          fines, forfeitures, legal fees and expenses and related costs, judgments,
          and
          any other costs, fees and expenses that any of them may sustain arising
          out of
          or based upon:

        

        (i)(A)
          any untrue statement of a material fact contained or alleged to be contained
          in
          any information, report, certification, accountants’ letter or other material
          provided under this Section 11.18 by or on behalf of the Company, or provided
          under this Section 11.18 by or on behalf of any Subservicer, Subcontractor
          or
          Third-Party Originator (collectively, the “Company Information”), or (B) the
          omission or alleged omission to state in the Company Information a material
          fact
          required to be stated in the Company Information or necessary in order
          to make
          the statements therein, in the light of the circumstances under which they
          were
          made, not misleading; provided, by way of clarification, that clause (B)
          of this
          paragraph shall be construed solely by reference to the Company Information
          and
          not to any other information communicated in connection with a sale or
          purchase
          of securities, without regard to whether the Company Information or any
          portion
          thereof is presented together with or separately from such other
          information;

        

        (ii)
          any
          failure by the Company, any Subservicer, any Subcontractor or any Third-Party
          Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Section 11.18,
          including any failure by the Company to identify pursuant to Section 11.19
          any
          Subcontractor “participating in the servicing function” within the meaning of
          Item 1122 of Regulation AB; or

        

        (iii)
          any
          breach by the Company of a representation or warranty set forth in Section
          3.01
          or in a writing furnished pursuant to Section 3.01(q) and made as of a
          date
          prior to the closing date of the related Pass-Through Transfer, to the
          extent
          that such breach is not cured by such closing date, or any breach by the
          Company
          of a representation or warranty in a writing furnished pursuant to Section
          3.01(q) to the extent made as of a date subsequent to such closing
          date.

        

        All
          Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
          remain
          subject to, and serviced in accordance with the terms of, this Agreement
          and the
          related Term Sheet, and with respect thereto this Agreement and the related
          Term
          Sheet shall remain in full force and effect.

        

        15. Article
          XI of the Agreement is hereby amended effective as of the date hereof by
          adding
          the following new Section 11.19:

        

        Section
          11.19. Use
          of
          Subservicers and Subcontractors.

        

        (a) The
          Company shall not hire or otherwise utilize the services of any Subservicer
          to
          fulfill any of the obligations of the Company as servicer under this Agreement
          or any Reconstitution Agreement unless the Company complies with the provisions
          of paragraph (b) of this Section. The Company shall not hire or otherwise
          utilize the services of any Subcontractor, and shall not permit any Subservicer
          to hire or otherwise utilize the services of any Subcontractor, to fulfill
          any
          of the obligations of the Company as servicer under this Agreement or any
          Reconstitution Agreement unless the Company complies with the provisions
          of
          paragraph (d) of this Section. 

        

        (b) The
          Company shall cause any Subservicer used by the Company (or by any Subservicer)
          for the benefit of the Purchaser and any Depositor to comply with the provisions
          of this Section and with Sections 3.01(p), 3.01(s), 6.04, 6.05, 6.07 and
          11.18
          of this Agreement to the same extent as if such Subservicer were the Company,
          and to provide the information required with respect to such Subservicer
          under
          Section 3.01(r) of this Agreement. The Company shall be responsible for
          obtaining from each Subservicer and delivering to the Purchaser and any
          Depositor any Annual Statement of Compliance required to be delivered by
          such
          Subservicer under Section 6.04(a), any Assessment of Compliance and Attestation
          Report required to be delivered by such Subservicer under Section 6.07
          and any
          Annual Certification required under Section 6.04(b) as and when required
          to be
          delivered.

        

        (c) The
          Company shall promptly upon request provide to the Purchaser and any Depositor
          (or any designee of the Depositor, such as a master servicer or administrator)
          a
          written description (in form and substance satisfactory to the Purchaser
          and
          such Depositor) of the role and function of each Subcontractor utilized
          by the
          Company or any Subservicer, specifying (i) the identity of each such
          Subcontractor, (ii) which (if any) of such Subcontractors are “participating in
          the servicing function” within the meaning of Item 1122 of Regulation AB, and
          (iii) which elements of the Servicing Criteria will be addressed in assessments
          of compliance provided by each Subcontractor identified pursuant to clause
          (ii)
          of this paragraph.

        

        (d) As
          a
          condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
          Regulation AB, the Company shall cause any such Subcontractor used by the
          Company (or by any Subservicer) for the benefit of the Purchaser and any
          Depositor to comply with the provisions of Sections 6.07 and 11.18 of this
          Agreement to the same extent as if such Subcontractor were the Company.
          The
          Company shall be responsible for obtaining from each Subcontractor and
          delivering to the Purchaser and any Depositor any Assessment of Compliance
          and
          Attestation Report required to be delivered by such Subcontractor under
          Section
          6.07, in each case as and when required to be delivered.

        

        16. The
          Agreement is hereby amended effective as of the date hereof by adding the
          following new Exhibit L:

        

        EXHIBIT
          L

        

        FORM
          OF
          COMPANY CERTIFICATION

        

        I,
          [identify certifying individual], certify to the [Trustee] [Seller] [Securities
          Administrator] [Mortgage Loan Seller] [Purchaser] and [Master Servicer]
          that:

        

        1. Based
          on
          my knowledge, the information in the Annual Statement of Compliance, the
          [USAP
          Report]* [Assessment of Compliance and Attestation Report]** and all servicing
          reports, officer's certificates and other information provided by the Company
          relating to the servicing of the Mortgage Loans taken as a whole, do not
          contain
          any untrue statement of a material fact or omit to state a material fact
          necessary to make the statements made, in light of the circumstances under
          which
          such statements were made, not misleading as of the date of this
          certification;

         

        2. 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 such servicing reports.

        

        3. Based
          on
          my knowledge, the servicing information required to be provided to the
          Master
          Servicer under the Agreement is included in these reports.

        

        4. I
          am
          responsible for reviewing the activities performed the Company under the
          Agreement and based upon the review required under the Agreement, and except
          as
          disclosed in the Annual Statement of Compliance or the [USAP Report]*
          [Assessment of Compliance and Attestation Report]**, the Company has fulfilled
          its obligations under the Agreement.

        

        5. [I
          have
          disclosed to the Master Servicer's certified public accountants all significant
          deficiencies relating to the Company's compliance with the minimum servicing
          standards in accordance with a review conduced in compliance with the Uniform
          Single Attestation Program for Mortgage Bankers or similar standard as
          set forth
          in the Agreement.]* [The Assessment of Compliance and Attestation Report
          of the
          Company have been delivered to the Purchaser as required under the Agreement.
          Following is a list of all material instances of noncompliance described
          in the
          Attestation of Compliance and Attestation Report (if none, state
“none”):

        ___________________________.]*

         

        [COMPANY]

         

        By:
          

        Name:

        Title:
          

        Date:

         

        
          	
                  *
                    

                	
                  To
                    be used if a USAP Report is being delivered under the
                    Agreement

                
	
                  **
                    

                	
                  To
                    be used if an Assessment of Compliance and Attestation Report
                    is being
                    delivered under the Agreement

                

        

        

        17. The
          Agreement is hereby amended effective as of the date hereof by adding the
          following new Exhibit M:

        

        EXHIBIT
          M

        

        SUMMARY
          OF REGULATION AB

        SERVICING
          CRITERIA

        

        NOTE:
          This Exhibit M is provided for convenience of reference only. In the event
          of a
          conflict or inconsistency between the terms of this Exhibit M and the text
          of
          Regulation AB, the text of Regulation AB, its adopting release and other
          public
          statements of the SEC shall control. 

        

        Item
          1122(d)

         

        
          	(a)  	
                  General
                    servicing considerations.

                

        

         

        (1)  Policies
          and procedures are instituted to monitor any performance or other triggers
          and
          events of default in accordance with the transaction agreements.

         

        (2)  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.

         

        (3)  Any
          requirements in the transaction agreements to maintain a back-up servicer
          for
          the mortgage loans are maintained.

         

        (4)  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.

         

        
          	(b)  	
                  Cash
                    collection and administration.

                

        

         

        (1)  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.

         

        (2)  Disbursements
          made via wire transfer on behalf of an obligor or
          to an
          investor are made only by authorized personnel.

         

        (3)  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.

         

        (4)  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.

         

        (5)  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.

         

        (6)  Unissued
          checks are safeguarded so as to prevent unauthorized access.

         

        (7)  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.

         

        
          	(c)  	
                  Investor
                    remittances and reporting.

                

        

         

        (1)  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.

         

        (2)  Amounts
          due to investors are allocated and remitted in accordance with timeframes,
          distribution priority and other terms set forth in the transaction
          agreements.

         

        (3)  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.

         

        (4)  Amounts
          remitted to investors per the investor reports agree with cancelled checks,
          or
          other form of payment, or custodial bank statements.

         

        
          	(d)  	
                  Mortgage
                    Loan administration.

                

        

         

        (1)  Collateral
          or security on mortgage loans is maintained as required by the transaction
          agreements or related mortgage loan documents.

         

        (2)  Mortgage
          loan and related documents are safeguarded as required by the transaction
          agreements.

         

        (3)  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.

         

        (4)  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.

         

        (5)  The
          Servicer’s records regarding the mortgage loans agree with the Servicer’s
          records with respect to an obligor’s unpaid principal balance.

         

        (6)  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 mortgage
          loan documents.

         

        (7)  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.

         

        (8)  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).

         

        (9)  Adjustments
          to interest rates or rates of return for mortgage loans with variable rates
          are
          computed based on the related mortgage loan documents.

         

        (10)  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.

         

        (11)  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.

         

        (12)  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.

         

        (13)  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.

         

        (14)  Delinquencies,
          charge-offs and uncollectable accounts are recognized and recorded in accordance
          with the transaction agreements.

         

        (15)  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.

        

        18. The
          Agreement is hereby amended effective as of the date hereof by adding the
          following new Exhibit N:

         

        EXHIBIT
          N

        

        SUMMARY
          OF APPLICABLE REGULATION AB REQUIREMENTS

        

        NOTE:
          This Exhibit N is provided for convenience of reference only. In the event
          of a
          conflict or inconsistency between the terms of this Exhibit N and the text
          of
          Regulation AB, the text of Regulation AB, its adopting release and other
          public
          statements of the SEC shall control. 

         

        Item
          1105(a)(1)-(3) and (c)

        

        -Provide
          static pool information with respect to mortgage loans that were originated
          or
          purchased by the Company and which are of the same type as the Mortgage
          Loans.

         

        -Provide
          static pool information regarding delinquencies, cumulative losses and
          prepayments for prior securitized pools of the Company.

         

        -If
          the
          Company has less than 3 years experience securitizing assets of the same
          type as
          the Mortgage Loans, provide the static pool information by vintage origination
          years regarding loans originated or purchased by the Company, instead of
          by
          prior securitized pool. A vintage origination year represents mortgage
          loans
          originated during the same year.

         

        -Such
          static pool information shall be for the prior five years, or for so long
          as the
          Company has been originating or purchasing (in the case of data by vintage
          origination year) or securitizing (in the case of data by prior securitized
          pools) such mortgage loans if for less than five years.

         

        -The
          static pool information for each vintage origination year or prior securitized
          pool, as applicable, shall be presented in monthly increments over the
          life of
          the mortgage loans included in the vintage origination year or prior securitized
          pool.

         

        -Provide
          summary information for the original characteristics of the prior securitized
          pools or vintage origination years, as applicable and material, including:
          number of pool assets, original pool balance, weighted average initial
          loan
          balance, weighted average mortgage rate, weighted average and minimum and
          maximum FICO, product type, loan purpose, weighted average and minimum
          and
          maximum LTV, distribution of loans by mortgage rate, and geographic
          concentrations of 5% or more.

         

        

        Item
          1108(b) and (c)

        

        Provide
          the following information with respect to each servicer that will service,
          including interim service, 20% or more of the mortgage loans in any loan
          group
          in the securitization issued in the Pass-Through Transfer: 

         

        -a
          description of the Company’s form of organization;

         

        -a
          description of how long the Company has been servicing residential mortgage
          loans; a general discussion of the Company’s experience in servicing assets of
          any type as well as a more detailed discussion of the Company’s experience in,
          and procedures for the servicing function it will perform under this Agreement
          and any Reconstitution Agreements; information regarding the size, composition
          and growth of the Company’s portfolio of mortgage loans of the type similar to
          the Mortgage Loans and information on factors related to the Company that
          may be
          material to any analysis of the servicing of the Mortgage Loans or the
          related
          asset-backed securities, as applicable, including whether any default or
          servicing related performance trigger has occurred as to any other
          securitization due to any act or failure to act of the Company, whether
          any
          material noncompliance with applicable servicing criteria as to any other
          securitization has been disclosed or reported by the Company, and the extent
          of
          outsourcing the Company uses;

         

        -a
          description of any material changes to the Company’s policies or procedures in
          the servicing function it will perform under this Agreement and any
          Reconstitution Agreements for mortgage loans of the type similar to the
          Mortgage
          Loans during the past three years;

         

        -information
          regarding the Company’s financial condition to the extent that there is a
          material risk that the effect on one or more aspects of servicing resulting
          from
          such financial condition could have a material impact on the performance
          of the
          securities issued in the Pass-Through Transfer, or on servicing of mortgage
          loans of the same asset type as the Mortgage Loans;

         

        -any
          special or unique factors involved in servicing loans of the same type
          as the
          Mortgage Loans, and the Company’s processes and procedures designed to address
          such factors;

         

        -statistical
          information regarding principal and interest advances made by the Company
          on the
          Mortgage Loans and the Company’s overall servicing portfolio for the past three
          years; and

         

        -the
          Company’s process for handling delinquencies, losses, bankruptcies and
          recoveries, such as through liquidation of REO Properties, foreclosure,
          sale of
          the Mortgage Loans or workouts.

         

        Item
          1110(a)

        

        -Identify
          any originator or group of affiliated originators that originated, or is
          expected to originate, 10% or more of the mortgage loans in any loan group
          in
          the securitization issued in the Pass-Through Transfer.

         

        Item
          1110(b)

        

        Provide
          the following information with respect to any originator or group of affiliated
          originators that originated, or is expected to originate, 20% or more of
          the
          mortgage loans in any loan group in the securitization issued in the
          Pass-Through Transfer:

         

        -the
          Company’s form of organization; and

         

        -a
          description of the Company’s origination program and how long the Company has
          been engaged in originating residential mortgage loans, which description
          must
          include a discussion of the Company’s experience in originating mortgage loans
          of the same type as the Mortgage Loans and information regarding the size
          and
          composition of the Company’s origination portfolio as well as information that
          may be material to an analysis of the performance of the Mortgage Loans,
          such as
          the Company’s credit-granting or underwriting criteria for mortgage loans of the
          same type as the Mortgage Loans.

         

        Item
          1117

        

        -describe
          any legal proceedings pending against the Company or against any of its
          property, including any proceedings known to be contemplated by governmental
          authorities, that may be material to the holders of the securities issued
          in the
          Pass-Through Transfer.

         

        Item
          1119(a)

        

        -describe
          any affiliations of the Company, each other originator of the Mortgage
          Loans and
          each Subservicer with the sponsor, depositor, issuing entity, trustee,
          any
          originator, any other servicer, any significant obligor, enhancement or
          support
          provider or any other material parties related to the Pass-Through
          Transfer.

        

        Item
          1119(b)

        

        -describe
          any business relationship, agreement, arrangement, transaction or understanding
          entered into outside of the ordinary course of business or on terms other
          than
          those obtained in an arm’s length transaction with an unrelated third party,
          apart from the Pass-Through Transfer, between the Company, each other originator
          of the Mortgage Loans and each Subservicer, or their respective affiliates,
          and
          the sponsor, depositor or issuing entity or their respective affiliates,
          that
          exists currently or has existed during the past two years, that may be
          material
          to the understanding of an investor in the securities issued in the Pass-Through
          Transfer.

         

        Item
          1119(c)

        

        -describe
          any business relationship, agreement, arrangement, transaction or understanding
          involving or relating to the Mortgage Loans or the Pass-Through Transfer,
          including the material terms and approximate dollar amount involved, between
          the
          Company, each other originator of the Mortgage Loans and each Subservicer,
          or
          their respective affiliates and the sponsor, depositor or issuing entity
          or
          their respective affiliates, that exists currently or has existed during
          the
          past two years.

         

        19. The
          Agreement is hereby amended effective as of the date hereof by adding the
          following new Exhibit O:

        

        EXHIBIT
          O

        

        SERVICING
          CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

        

        The
          assessment of compliance to be delivered by [the Company] [Name of Subservicer]
          shall address, at a minimum, the criteria identified as below as “Applicable
          Servicing Criteria”:

        

        

          
            	
                    Servicing
                      Criteria 

                  	
                    Applicable
                      Servicing Criteria

                  
	
                    Reference

                  	
                    Criteria

                  	
                     

                  
	
                     

                  	
                    General
                      Servicing Considerations

                  	
                     

                  
	
                    1122(d)(1)(i)

                  	
                    Policies
                      and procedures are instituted to monitor any performance or
                      other triggers
                      and events of default in accordance with the transaction
                      agreements.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                     

                  	
                    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.

                  	 
	
                    1122(d)(2)(ii)

                  	
                    Disbursements
                      made via wire transfer on behalf of an obligor or to an investor
                      are made
                      only by authorized personnel.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                     

                  	
                    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.

                  	 
	
                    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.

                  	 
	
                    1122(d)(3)(iii)

                  	
                    Disbursements
                      made to an investor are posted within two business days to
                      the Servicer’s
                      investor records, or such other number of days specified in
                      the
                      transaction agreements.

                  	 
	
                    1122(d)(3)(iv)

                  	
                    Amounts
                      remitted to investors per the investor reports agree with cancelled
                      checks, or other form of payment, or custodial bank
                      statements.

                  	 
	
                     

                  	
                    Pool
                      Asset Administration

                  	 
	
                    1122(d)(4)(i)

                  	
                    Collateral
                      or security on mortgage loans is maintained as required by
                      the transaction
                      agreements or related mortgage loan documents.

                  	 
	
                    1122(d)(4)(ii)

                  	
                    Mortgage
                      loan and related documents are safeguarded as required by the
                      transaction
                      agreements

                  	 
	
                    1122(d)(4)(iii)

                  	
                    Any
                      additions, removals or substitutions to the asset pool are
                      made, reviewed
                      and approved in accordance with any conditions or requirements
                      in the
                      transaction agreements.

                  	 
	
                    1122(d)(4)(iv)

                  	
                    Payments
                      on mortgage loans, including any payoffs, made in accordance
                      with the
                      related mortgage loan documents are posted to the Servicer’s obligor
                      records maintained no more than two business days after receipt,
                      or such
                      other number of days specified in the transaction agreements,
                      and
                      allocated to principal, interest or other items (e.g., escrow)
                      in
                        accordance with the related mortgage loan documents.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                    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.

                  	 
	
                     

                  	
                     

                  	
                     

                  

          

        

        

         

        [NAME
          OF
          COMPANY] [NAME OF SUBSERVICER]

         

        Date: _________________________

        

         

        By: _________________________

        Name:
          

        Title:
          

        

        20. Except
          as
          amended above, the Agreement shall continue to be in full force and effect
          in
          accordance with its terms.

        

        21. This
          Amendment may be executed by one or more of the parties hereto on any number
          of
          separate counterparts and of said counterparts taken together shall be
          deemed to
          constitute one and the same instrument.

        

        [SIGNATURE
          PAGES FOLLOW]

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the following parties have caused their names to be signed
          hereto by their respective officers thereunto duly authorized as of the
          day and
          year first above written.

         

        EMC
          MORTGAGE CORPORATION,

        as
          Purchaser

         

        By:________________________

        Name:
          

        Title:
          

         

        FIRST
          HORIZON HOME LOAN CORPORATION

             
Seller

        

        By:
          _______________________

        Name:

        Title:

        

        FIRST
          TENNESSEE MORTGAGE SERVICES, INC.

            
          Servicer

        

        By:
          _______________________

        Name:

        Title:

         

        

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R-2

       

      FORM
        OF
        FIRST TENNESSEE ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

       

      

      

         

        ASSIGNMENT,
          ASSUMPTION AND RECOGNITION AGREEMENT

         

        This
          is
          an Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) made
          as of August 31, 2006, among EMC Mortgage Corporation (the “Assignor”),
          Citibank, N.A., not individually but solely as trustee for the holders
          of the
          SACO I Trust 2006-9, Mortgage Pass-Through Certificates, Series 2006-9
          (the
“Assignee”) and First Tennessee Mortgage Services, Inc. (the
“Company”).

         

        In
          consideration of the mutual promises contained herein the parties hereto agree
          that the residential mortgage loans (the “Assigned Loans”) listed on Attachment
          1 annexed hereto (the "Assigned Loan Schedule") purchased by the Assignor
          from
          First Horizon Home Loan Corporation (“First Horizon”) pursuant to the Purchase,
          Warranties and Servicing Agreement, dated as of September 1, 2003, as amended
          on
          May 14, 2004 (the “Purchase, Warranties and Servicing Agreement”), as amended on
          June 16, 2005, as amended on August 8, 2005, and as amended on December
          22,
          2005, and that certain amended and restated term sheet dated as of September
          2,
          2005, among Assignor, Company and First Horizon (the
“Term
          Sheet”, together with the Purchase, Warranties and Servicing Agreement, the
“Purchase
          Agreement”) and now serviced by Company for Assignor and its successors and
          assigns pursuant to the Purchase Agreement shall be subject to the terms
          of this
          AAR Agreement. Capitalized terms used herein but not defined shall have
          the
          meanings ascribed to them in the Purchase Agreement.

         

        
          Assignment
            and Assumption

        

         

        Except
          as
          expressly provided for herein, the Assignor hereby grants, transfers and
          assigns
          to the Assignee all of its right, title and interest as in, to and under
          (a) the
          Assigned Loans and (b) the Purchase Agreement with respect to the Assigned
          Loans; provided, however, that the Assignor is not assigning to the Assignee
          any
          of its right, title or interest, in, to and under the Purchase Agreement
          with
          respect to any mortgage loan other than the Assigned Loans listed on Exhibit
          A.
          Notwithstanding anything to the contrary contained herein, the Assignor
          specifically reserves and does not assign to the Assignee any right, title
          and
          interest in, to or under the representations and warranties contained in
          Section
          3.01 and Section 3.02 of the Purchase Agreement, and any obligation of
          the
          Company to cure, repurchase or substitute for a mortgage loan and to indemnify
          the Assignor with respect to a breach of such representations and warranties
          pursuant to Section 3.03 and Section 8.01 of the Purchase Agreement and
          the
          Assignor is retaining the right to enforce the representations and warranties
          and the obligations of the Company set forth in those sections against
          the
          Company. In addition, the Assignor specifically reserves and does not assign
          to
          the Assignee any right, title and interest in, to or under Section 2.09
          of the
          Purchase Agreement. Except as is otherwise expressly provided herein, the
          Assignor makes no representations, warranties or covenants to the Assignee
          and
          the Assignee acknowledges that the Assignor has no obligations to the Assignee
          under the terms of the Purchase Agreement or otherwise relating to the
          transaction contemplated herein (including, but not limited to, any obligation
          to indemnify the Assignee).

         

        
          Representations,
            Warranties and Covenants

        

         

        1.
            Assignor
          warrants and represents to Assignee and Company as of the date
          hereof:

         

        (a)  Attached
          hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement
          which agreement is in full force and effect as of the date hereof and the
          provisions of which have not been waived, amended or modified in any respect,
          nor has any notice of termination been given thereunder;

         

        (b)  Assignor
          is the lawful owner of the Assigned Loans with full right to transfer the
          Assigned Loans and any and all of its interests, rights and obligations
          under
          the Purchase Agreement as they relate to the Assigned Loans, free and clear
          from
          any and all claims and encumbrances; and upon the transfer of the Assigned
          Loans
          to Assignee as contemplated herein, Assignee shall have good title to each
          and
          every Assigned Loan, as well as any and all of Assignee’s interests, rights and
          obligations under the Purchase Agreement as they relate to the Assigned
          Loans,
          free and clear of any and all liens, claims and encumbrances;

         

        (c)  There
          are
          no offsets, counterclaims or other defenses available to Company with respect
          to
          the Assigned Loans or the Purchase Agreement;

         

        (d)  Assignor
          has no knowledge of, and has not received notice of, any waivers under,
          or any
          modification of, any Assigned Loan;

         

        (e)  Assignor
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation, and has all requisite power and authority
          to
          acquire, own and sell the Assigned Loans;

         

        (f)  Assignor
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of Assignor’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignor’s charter or by-laws or any legal restriction, or any material
          agreement or instrument to which Assignor is now a party or by which it
          is
          bound, or result in the violation of any law, rule, regulation, order,
          judgment
          or decree to which Assignor or its property is subject. The execution,
          delivery
          and performance by Assignor of this AAR Agreement and the consummation
          by it of
          the transactions contemplated hereby, have been duly authorized by all
          necessary
          corporate action on the part of Assignor. This AAR Agreement has been duly
          executed and delivered by Assignor and, upon the due authorization, execution
          and delivery by Assignee and Company, will constitute the valid and legally
          binding obligation of Assignor enforceable against Assignor in accordance
          with
          its terms except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in effect
          relating
          to creditors’ rights generally, and by general principles of equity regardless
          of whether enforceability is considered in a proceeding in equity or at
          law;

         

        (g)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignor in connection with the execution, delivery or performance by Assignor
          of this AAR Agreement, or the consummation by it of the transactions
          contemplated hereby; 

         

        (h)  Neither
          Assignor nor anyone acting on its behalf has offered, transferred, pledged,
          sold
          or otherwise disposed of the Assigned Loans or any interest in the Assigned
          Loans, or solicited any offer to buy or accept a transfer, pledge or other
          disposition of the Assigned Loans, or any interest in the Assigned Loans
          or
          otherwise approached or negotiated with respect to the Assigned Loans,
          or any
          interest in the Assigned Loans with any Person in any manner, or made any
          general solicitation by means of general advertising or in any other manner,
          or
          taken any other action which would constitute a distribution of the Assigned
          Loans under the Securities Act of 1933, as amended (the “1933 Act”) or which
          would render the disposition of the Assigned Loans a violation of Section
          5 of
          the 1933 Act or require registration pursuant thereto;

         

        (i)  The
          Assignor has received from Company, and has delivered to the Assignee,
          all
          documents required to be delivered to Assignor by the Company prior to
          the date
          hereof pursuant to the Purchase Agreement with respect to the Assigned
          Loans and
          has not received, and has not requested from the Company, any additional
          documents; and 

         

        (j)  There
          is
          no action, suit, proceeding, investigation or litigation pending or, to
          Assignor's knowledge, threatened, which either in any instance or in the
          aggregate, if determined adversely to Assignor, would adversely affect
          Assignor's execution or delivery of, or the enforceability of, this AAR
          Agreement, or the Assignor's ability to perform its obligations under this
          AAR
          Agreement.

         

        2.
            Assignee
          warrants and represents to, and covenants with, Assignor and Company as
          of the
          date hereof:

         

        (a)  Assignee
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its organization and has all requisite power and authority
          to
          hold the Assigned Loans as trustee on behalf of the holders of the SACO
          I Trust
          2006-9, Mortgage Pass-Through Certificates, Series 2006-9;

         

        (b)  Assignee
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of Assignee’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignee’s charter or by-laws or any legal restriction, or any material
          agreement or instrument to which Assignee is now a party or by which it
          is
          bound, or result in the violation of any law, rule, regulation, order,
          judgment
          or decree to which Assignee or its property is subject. The execution,
          delivery
          and performance by Assignee of this AAR Agreement and the consummation
          by it of
          the transactions contemplated hereby, have been duly authorized by all
          necessary
          corporate action on part of Assignee. This AAR Agreement has been duly
          executed
          and delivered by Assignee and, upon the due authorization, execution and
          delivery by Assignor and Company, will constitute the valid and legally
          binding
          obligation of Assignee enforceable against Assignee in accordance with
          its terms
          except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in effect
          relating
          to creditors’ rights generally, and by general principles of equity regardless
          of whether enforceability is considered in a proceeding in equity or at
          law;

         

        (c)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignee in connection with the execution, delivery or performance by Assignee
          of this AAR Agreement, or the consummation by it of the transactions
          contemplated hereby; 

         

        (d)  There
          is
          no action, suit, proceeding, investigation or litigation pending or, to
          Assignee's knowledge, threatened, which either in any instance or in the
          aggregate, if determined adversely to Assignee, would adversely affect
          Assignee's execution or delivery of, or the enforceability of, this AAR
          Agreement, or the Assignee's ability to perform its obligations under this
          AAR
          Agreement; and

         

        (e)  Assignee
          assumes for the benefit of each of the Assignor and the Company all of
          the
          rights of the Purchaser under the Purchase Agreement with respect to the
          Assigned Loans.

         

        3.
            Company
          warrants and represents to, and covenant with, Assignor and Assignee as
          of the
          date hereof:

         

        (a)  Attached
          hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
          which agreement is in full force and effect as of the date hereof and the
          provisions of which have not been waived, amended or modified in any respect,
          nor has any notice of termination been given thereunder; 

         

        (b)  Company
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation, and has all requisite power and authority
          to
          service the Assigned Loans and otherwise to perform its obligations under
          the
          Purchase Agreement;

         

        (c)  Company
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of Company’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Company’s charter or by-laws or any legal restriction, or any material agreement
          or instrument to which Company is now a party or by which it is bound,
          or result
          in the violation of any law, rule, regulation, order, judgment or decree
          to
          which Company or its property is subject. The execution, delivery and
          performance by Company of this AAR Agreement and the consummation by it
          of the
          transactions contemplated hereby, have been duly authorized by all necessary
          corporate action on the part of Company. This AAR Agreement has been duly
          executed and delivered by Company, and, upon the due authorization, execution
          and delivery by Assignor and Assignee, will constitute the valid and legally
          binding obligation of Company, enforceable against Company in accordance
          with
          its terms except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in effect
          relating
          to creditors’ rights generally, and by general principles of equity regardless
          of whether enforceability is considered in a proceeding in equity or at
          law;

         

        (d)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignee in connection with the execution, delivery or performance by Company
          of
          this AAR Agreement, or the consummation by it of the transactions contemplated
          hereby; 

         

        (e)  The
          Company shall establish a Custodial Account and an Escrow Account under
          the
          Purchase Agreement in favor of the Assignee with respect to the Assigned
          Loans
          separate from the Custodial Account and Escrow Account previously established
          under the Purchase Agreement in favor of Assignor;

         

        (f)  No
          event
          has occurred from the Closing Date to the date hereof which would render
          the
          representations and warranties as to the related Assigned Loans made by
          the
          Company in Sections 3.01 and 3.02 of the Purchase Agreement to be untrue
          in any
          material respect; and

         

        (g)  Neither
          this AAR Agreement nor any certification, statement, report or other agreement,
          document or instrument furnished or to be furnished by the Company pursuant
          to
          this AAR Agreement contains or will contain any materially untrue statement
          of
          fact or omits or will omit to state a fact necessary to make the statements
          contained therein not misleading.

         

        4.
            Assignor
          hereby agrees to indemnify and hold the Assignee (and its successors and
          assigns) harmless against any and all claims, losses, penalties, fines,
          forfeitures, legal fees and related costs, judgments, and any other costs,
          fees
          and expenses that Assignee (and its successors and assigns) may sustain
          in any
          way related to any breach of the representations or warranties of Assignor
          set
          forth in this AAR Agreement or the breach of any covenant or condition
          contained
          herein.

         

        
          Recognition
            of Assignee

        

         

        5.
            From
          and
          after the date hereof, Company shall recognize Assignee as owner of the
          Assigned
          Loans, and acknowledges that the Assigned Loans will be part of a REMIC,
          and
          will service the Assigned Loans in accordance with the Purchase Agreement
          (as
          modified by this AAR Agreement) but in no event in a manner that would
          (i) cause
          any REMIC to fail to qualify as a REMIC or (ii) result in the imposition
          of a
          tax upon any REMIC (including but not limited to the tax on prohibited
          transactions as defined in Section 860F(a)(2) of the Code and the tax on
          contributions to a REMIC set forth in Section 860G(d) of the Code). It
          is the
          intention of Assignor, Company and Assignee that this AAR Agreement shall
          be
          binding upon and for the benefit of the respective successors and assigns
          of the
          parties hereto. Neither Company nor Assignor shall amend or agree to amend,
          modify, waive, or otherwise alter any of the terms or provisions of the
          Purchase
          Agreement which amendment, modification, waiver or other alteration would
          in any
          way affect the Assigned Loans without the prior written consent of
          Assignee.

         

        6.
            It
          is
          expressly understood and agreed by the parties hereto that insofar as this
          AAR
          Agreement is executed on behalf of the Assignee (i) this AAR Agreement
          is
          executed and delivered by Citibank, N.A., not in its individual capacity
          but
          solely as trustee under the Pooling and Servicing Agreement, dated as of
          August
          1, 2006 (the “Pooling and Servicing Agreement”), among the Assignor, Bear
          Stearns Asset Backed Securities I LLC, Citibank, N.A., as trustee and LaSalle
          Bank National Association as securities administrator and master servicer,
          in
          the exercise of the powers and authority conferred and vested in it, (ii)
          each
          of the representations, undertakings and agreements herein made on the
          part of
          the Assignee is made and intended not as representations, warranties, covenants,
          undertakings and agreements by Citibank, N.A. in its individual capacity,
          but is
          made and intended for the purpose of binding only the Assignee, (iii) under
          no
          circumstances shall Citibank, N.A. in its individual capacity be personally
          liable for the payment of any indebtedness or expenses of the Assignee
          or be
          liable for the breach or failure of any obligation, representation, warranty
          or
          covenant made or undertaken by the Assignee under this AAR Agreement and
          (iv)
          any recourse against the Assignee in respect of any obligations it may
          have
          under or pursuant to the terms of this AAR Agreement shall be limited solely
          to
          the assets it may hold as trustee of SACO I Trust 2006-9.

         

        Company
          shall indemnify and hold harmless the Assignor, each affiliate of the Assignor,
          Bear Stearns Asset Backed Securities I LLC (“BSABS I”), the Assignee, Bear,
          Stearns & Co. Inc. (the “Underwriter”) and each affiliate of the
          Underwriter, each Person (including, but not limited to, the Master Servicer)
          responsible for the preparation, execution or filing of any report required to
          be filed with the Commission, or for execution of a certification pursuant
          to
          Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act, each Person who
          controls the Assignor, BSABS I, the Assignee or the Underwriter (within
          the
          meaning of Section 15 of the Securities Act and Section 20 of the Exchange
          Act);
          and the respective present and former directors, officers, employees, agents
          and
          affiliates of each of the foregoing (each, an “Indemnified Party”), and shall
          hold each of them harmless from and against any claims, losses, damages,
          penalties, fines, forfeitures, legal fees and expenses and related costs,
          judgments, and any other costs, fees and expenses that any of them may
          sustain
          arising out of or based upon: 

         

        
          	(i)  	
                  (A)any
                    untrue statement of a material fact contained or alleged to be
                    contained
                    in any information, report, certification, data, accountants’ letter or
                    other material provided under Section 11.18 of the Servicing
                    Agreement by
                    or on behalf of the Assignor, or provided under Section 11.18
                    of the
                    Servicing Agreement by or on behalf of any Subservicer, Subcontractor
                    or
                    Third-Party Originator (collectively, the “Company Information”), or (B)
                    the omission or alleged omission to state in the Company Information
                    a
                    material fact required to be stated in the Company Information
                    or
                    necessary in order to make the statements therein, in the light
                    of the
                    circumstances under which they were made, not misleading; provided,
                    by way of clarification, that
                    clause (B) of this paragraph shall be construed solely by reference
                    to the
                    Company Information and not to any other information communicated
                    in
                    connection with a sale or purchase of securities, without regard
                    to
                    whether the Company Information or any portion thereof is presented
                    together with or separately from such other
                    information;

                

        

         

        
          	(ii)  	
                  any
                    breach by the Company of its obligations under Section 11.18
                    of Servicing
                    Agreement, including particularly any failure by the Company,
                    any
                    Subservicer, any Subcontractor or any Third-Party Originator
                    to deliver
                    any information, report, certification, accountants’ letter or other
                    material when and as required under Section 11.18 of the Servicing
                    Agreement, including any failure by the Company to identify any
                    Subcontractor “participating in the servicing function” within the meaning
                    of Item 1122 of Regulation AB; 

                

        

         

        
          	(iii)  	
                  any
                    breach by the Company of a representation or warranty set forth
                    in Section
                    3.01 of the Servicing Agreement or in a writing furnished pursuant
                    to
                    Section 3.01 of the Servicing Agreement and made as of a date
                    prior to the
                    date hereof, to the extent that such breach is not cured by the
                    date
                    hereof, or any breach by the Company of a representation or warranty
                    in a
                    writing furnished pursuant to Section 3.01 of the Servicing Agreement
                    to
                    the extent made as of a date subsequent to the date hereof;
                    or

                

        

         

        
          	(iv)  	
                  the
                    negligence, bad faith or willful misconduct of the Company in
                    connection
                    with its performance under Section 11.18 of the Servicing
                    Agreement.

                

        

         

        If
          the
          indemnification provided for herein is unavailable or insufficient to hold
          harmless an Indemnified Party, then the Company agrees that it shall contribute
          to the amount paid or payable by such Indemnified Party as a result of
          any
          claims, losses, damages or liabilities incurred by such Indemnified Party
          in
          such proportion as is appropriate to reflect the relative fault of such
          Indemnified Party on the one hand and the Company on the other.

         

        In
          the
          case of any failure of performance described in Section 11.18 of the Servicing
          Agreement, the Company shall promptly reimburse the Underwriter, BSABS
          I and
          each Person responsible for the preparation, execution or filing of any
          report
          required to be filed with the Commission, or for execution of a certification
          pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act, for
          all
          costs reasonably incurred by each such party in order to obtain the information,
          report, certification, accountants’ letter or other material not delivered as
          required by the Company, any Subservicer, any Subcontractor or any Third-Party
          Originator.

         

        
          Modification
            of Purchase Agreement

        

         

        7.
            The
          Company and Assignor hereby amend the Purchase Agreement as
          follows:

         

        (a)  The
          following definitions are added to Article I of the Purchase
          Agreement:

         

        Assignee:
          Citibank,
          N.A.,
          as
          trustee for the holders of the SACO I Trust 2006-9.

         

        Master
          Servicer:
          LaSalle
          Bank National Association, or its successors in interest who meet the
          qualifications of the Pooling and Servicing Agreement and this
          Agreement.

         

        Pooling
          and Servicing Agreement:
          That
          certain pooling and servicing agreement, dated as of August 1, 2006, among
          Bear
          Stearns Asset Backed Securities I LLC, the Trustee, the Master Servicer,
          the
          Securities Administrator and the Purchaser.

         

        Securities
          Administrator:
          LaSalle
          Bank National Association, or its successors in interest who meet the
          qualifications of the Pooling and Servicing Agreement and this
          Agreement.

         

        Trustee:
          Citibank,
          N.A.,
          or its
          successor in interest, or any successor trustee appointed as provided in
          the
          Pooling and Servicing Agreement.

         

             (b)  The
          definition of Business Day is deleted in its entirety and replaced with
          the
          following:

         

        Business
          Day:
          Any day
          other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the States
          of
          New York, Illinois, Maryland, Minnesota or Texas, or (iii) a day on which
          banks
          in the States of New York, Maryland, Illinois, Minnesota or Texas are authorized
          or obligated by law or executive order to be closed.

         

        (c)  The
          third
          paragraph of Section 4.01 of the Purchase Agreement shall be deleted in
          its
          entirety and replaced with the following:

         

        Notwithstanding
          anything to the contrary contained in this Agreement, the Company shall
          not make
          or permit any modification, waiver or amendment of any term of any Mortgage
          Loan
          that would (i) effect an exchange or reissuance of such Mortgage Loan under
          Section 1001 of the Code (or Treasury regulations promulgated thereunder)
          and
          (ii) cause any REMIC created under the trust agreement pursuant to any
          Reconstitution to fail to qualify as a REMIC or result in the imposition
          of any
          tax under Section 860F(a) of Section 860G(d) of the Code.

         

        (d)  The
          last
          paragraph in Section 4.02 of the Agreement is deleted and replaced with
          the
          following:

         

        The
          Company shall not waive any prepayment penalty unless: (i) the enforceability
          thereof shall have been limited by bankruptcy, insolvency, moratorium,
          receivership and other similar laws relating to creditors’ rights generally,
          (ii) the enforcement thereof is illegal, or any local, state or federal
          agency
          has threatened legal action if the prepayment penalty is enforced, (iii)
          the
          mortgage debt has been accelerated in connection with a foreclosure or
          other
          involuntary payment or (iv) such waiver is standard and customary in servicing
          similar Mortgage Loans and relates to a default or a reasonably foreseeable
          default and would, in the reasonable judgment of the Company, maximize
          recovery
          of total proceeds taking into account the value of such prepayment penalty
          and
          the related Mortgage Loan. If a prepayment penalty is waived, but does
          not meet
          the standards described above, then the Company is required to pay the
          amount of
          such waived prepayment penalty by remitting such amount to the Master Servicer
          by the Remittance Date.

         

        (e)  The
          following shall be added at the end of the last paragraph of Section 4.03
          of the
          Purchase Agreement:

         

             
In
          the
          event a Mortgage Loan is charged-off, the Mortgage Loan will be removed
          from the
          pool and remittances with regard to such Mortgage Loan will occur on an
          actual/actual basis in the following method: no later than on each Remittance
          Date, the Company shall cause all amounts deposited in the Custodial Account
          as
          of the close of business on the immediately preceding Determination Date,
          minus
          any amounts attributable to Monthly Payments collected but not due on a
          Due Date
          or Dates subsequent to the first day of the month of the Remittance Date
          (which
          amounts shall be remitted on the Remittance Date next succeeding the Due
          Period
          for such amounts) to be remitted to the Purchaser as follows: (i) all
          collections of principal (ii) all collections of interest net of servicing
          fees
          (iii) liquidation proceeds net of the Company’s servicing advances. In addition,
          any prepayment in full shall be remitted to the Purchaser within five (5)
          business days of collection.

         

        (f)  The
          second paragraph of Section 4.13 of the Purchase Agreement is deleted in
          its
          entirety and replaced with the following:

         

        The
          Company shall notify the Assignor in accordance with the Fannie Mae Guides
          of
          each acquisition of REO Property upon such acquisition (and, in any event,
          shall
          provide notice of the consummation of any foreclosure sale within three
          (3)
          Business Days of the date Company receives notice of such consummation),
          together with a copy of the drive by appraisal or brokers price opinion
          of the
          Mortgaged Property obtained in connection with such acquisition. Thereafter,
          the
          Assignor shall assume the marketing and administration of such REO Property
          and
          shall sell such REO Property as expeditiously as possible and in accordance
          with
          the provisions of the Pooling and Servicing Agreement, as if such Mortgage
          Loan
          were an EMC Mortgage Loan. Pursuant to its efforts to sell such REO Property,
          the Assignor shall protect and conserve such REO Property in the manner
          and to
          the extent required by the Pooling and Servicing Agreement. No Servicing
          Fee
          shall be assessed or otherwise accrue on any REO Property from and after
          the
          date on which it becomes an REO Property.

         

        (g)  The
          phrase “without giving effect to principles of conflicts of laws and” shall be
          added following the phrase “the State of New York” in Section 11.04 of the
          Purchase Agreement.

         

        (h)  The
          following shall be added as Section 11.21 of the Purchase
          Agreement:

         

        Section
          11.21 Third
          Party Beneficiary.

         

        For
          purposes of this Agreement, any Master Servicer shall be considered a third
          party beneficiary to this Agreement entitled to all the rights and benefits
          accruing to any Master Servicer herein as if it were a direct party to
          this
          Agreement.

         

        
          Miscellaneous

        

         

        8.
            All
          demands, notices and communications related to the Assigned Loans, the
          Purchase
          Agreement and this AAR Agreement shall be in writing and shall be deemed
          to have
          been duly given if personally delivered at or mailed by registered mail,
          postage
          prepaid, as follows:

         

        
          	(a)  	
                  In
                    the case of Company:

                

        

         

        First
          Tennessee Mortgage Services, Inc. 

        4000
          Horizon Way 

        Irving,
          Texas 75063

        Attention:
          Capital Markets Department

         

        
          	(b)  	
                  In
                    the case of Assignor:

                

        

         

        EMC
          Mortgage Corporation

        2780
          Lake
          Vista Drive

        Lewisville,
          Texas 7506

        Attention:
          President or General Counsel

        Facsimile:
          (214) 626-3751

         

        with
          a
          copy to:

         

        Bear
          Stearns Mortgage Capital Corporation

        383
          Madison Avenue

        New
          York,
          New York 10179

        Attention:
          Nicholas Smith

        Telecopier
          No.: (212) 272-9529

         

        
          	(c)  	
                  In
                    the case of Assignee:

                

        

         

        Citibank,
          N.A., as Trustee

        388
          Greenwich Street, 14th
          Floor

        New
          York,
          New
          York 10013

        Attention:
          SACO 2006-9

        Telecopier
          No.: (212) 816-5527

         

        9.
            The
          Company hereby acknowledges that LaSalle Bank National Association (the
“Master
          Servicer”) has been appointed as the master servicer of the Assigned Loans
          pursuant to the Pooling and Servicing Agreement, and therefor has the right
          to
          enforce all obligations of the Company, as they relate to the Assigned
          Loans,
          under the Purchase Agreement. Such right will include, without limitation,
          the
          right to terminate the Company under the Purchase Agreement upon the occurrence
          of an event of default thereunder, the right to receive all remittances
          required
          to be made by the Company under the Purchase Agreement, the right to receive
          all
          monthly reports and other data required to be delivered by the Company
          under the
          Purchase Agreement, the right to examine the books and records of the Company,
          indemnification rights, and the right to exercise certain rights of consent
          and
          approval relating to actions taken by the Company. The Company shall make
          all
          distributions under the Purchase Agreement, as they relate to the Assigned
          Loans, to the Master Servicer by wire transfer of immediately available
          funds
          to:

         

        LaSalle
          Bank National Association

        ABA#
          071000505

        Account
          #
          [____________]

        Attn:
          Sandra Brooks

         

        and
          the
          Company shall deliver all reports required to be delivered under the Purchase
          Agreement, as they relate to the Assigned Loans, to the Assignee at the
          address
          set forth in Section 8 herein and to the Master Servicer at:

         

        LaSalle
          Bank National Association

        135
          S.
          LaSalle St., Suite 1625

        Chicago,
          IL 60603

        Attention:
          Global Securities and Trust Services Group- SACO 2006-9

         

        10.
            Each
          party will pay any commissions it has incurred and the fees of its attorneys
          in
          connection with the negotiations for, documenting of and closing of the
          transactions contemplated by this AAR Agreement.

         

        11.
            This
          AAR
          Agreement shall be construed in accordance with the laws of the State of
          New
          York, without regard to conflicts of law principles, and the obligations,
          rights
          and remedies of the parties hereunder shall be determined in accordance
          with
          such laws.

         

        12.
            No
          term
          or provision of this AAR Agreement may be waived or modified unless such
          waiver
          or modification is in writing and signed by the party against whom such
          waiver
          or modification is sought to be enforced.

         

        13.
            This
          AAR
          Agreement shall inure to the benefit of the successors and assigns of the
          parties hereto. Any entity into which Assignor, Assignee or Company may
          be
          merged or consolidated shall, without the requirement for any further writing,
          be deemed Assignor, Assignee or Company, respectively, hereunder.

         

        14.
            This
          AAR
          Agreement shall survive the conveyance of the Assigned Loans, the assignment
          of
          the Purchase Agreement to the extent of the Assigned Loans by Assignor
          to
          Assignee and the termination of the Purchase Agreement.

         

        15.
            This
          AAR
          Agreement may be executed simultaneously in any number of counterparts.
          Each
          counterpart shall be deemed to be an original and all such counterparts
          shall
          constitute one and the same instrument.

         

        16.
            In
          the
          event that any provision of this AAR Agreement conflicts with any provision
          of
          the Purchase Agreement with respect to the Assigned Loans, the terms of
          this AAR
          Agreement shall control. 

         

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have executed this AAR Agreement as
          of the
          day and year first above written.

         

        

        EMC
          MORTGAGE CORPORATION

         

        Assignor

         

        

         

        By:_______________________

        Name:_____________________

        Title:______________________

         

        CITIBANK,
          N.A., not individually but solely as Trustee for the SACO I Trust 2006-9,
          Mortgage Pass-Through Certificates, Series 2006-9

        Assignee

         

        By:_______________________

        Name:_____________________

        Title:______________________

         

        FIRST
          TENNESSEE MORTGAGE SERVICES, INC.

        Company

        

        
          By:_______________________

          Name:_____________________

          Title:______________________  

        

         

        Acknowledged
          and Agreed:

         

        LASALLE
          BANK NATIONAL ASSOCIATION 

        Master
          Servicer 

         

        
          By:_______________________

          Name:_____________________

          Title:______________________

        

         

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

         

        ATTACHMENT
          1

         

        ASSIGNED
          LOAN SCHEDULE

         

        (Available
          upon request)

         

         

        

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

         

        ATTACHMENT
          2

         

        PURCHASE
          AGREEMENT

         

         

        

         

         

        

         

         

        

         

        

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        S-1

       

      FORM
        OF
        GMACM SERVICING AGREEMENT

       

      
        

        

        

        

        ____________________________________________________________________________________
          

        

        

        

        

        

        

        EMC
          MORTGAGE CORPORATION

        Owner

        

        

        

        GMAC
          MORTGAGE CORPORATION

        Servicer

        

        

        

        

        SERVICING
          AGREEMENT

        

        Dated
          as
          of May 1, 2001

        

        

        

        

        

        ____________________________________________________________________________________ 

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBITS

        

        

        Exhibit
          A    Mortgage
          Loan Schedule

        

        Exhibit
          B     Custodial
          Account Letter Agreement

        

        Exhibit
          C     Escrow
          Account Letter Agreement

        

        Exhibit
          D     Form
          of
          Request for Release

        

        Exhibit
          E      Loan
          Level Scheduled-Scheduled Remittance Tape Layout

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        THIS
          IS A
          SERVICING AGREEMENT, dated as of May 1, 2001, and is executed between EMC
          Mortgage Corporation (the "Owner") and GMAC Mortgage Corporation (the
          "Servicer").

        

        

        W
          I T N E
          S S E T H :

        

        

        WHEREAS,
          the Owner is the owner of the Mortgage Loans;

        

        WHEREAS,
          the Owner and the Servicer wish to prescribe the permanent management,
          servicing
          and control of the Mortgage Loans;

        

        NOW,
          THEREFORE, in consideration of the mutual agreements hereinafter set forth,
          and
          for other good and valuable consideration, the receipt and adequacy of
          which is
          hereby acknowledged, the Owner and the Servicer agree as follows:

        

        

        ARTICLE
          I

        DEFINITIONS

         

        Section
          1.01 Defined
          Terms

         

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

        

        Accepted
          Servicing Practices:
          With
          respect to any Mortgage Loan, those mortgage servicing practices (including
          collection procedures) that are in accordance with the Fannie Mae
          Guide.

        

        Adjustment
          Date:
          As to
          each ARM Loan, the date on which the Mortgage Interest Rate is adjusted
          in
          accordance with the terms of the related Mortgage Note.

        

        Agreement:
          This
          Servicing Agreement including all exhibits hereto, amendments hereof and
          supplements hereto.

        

        ARM
          Loans:
          First
          lien, conventional, 1-4 family residential Mortgage Loans with interest
          rates
          which adjust from time to time in accordance with the related Index and
          are
          subject to Periodic Rate Caps and Lifetime Rate Caps and which do not permit
          conversion to fixed interest rates.

        

        BIF:
          The
          Bank Insurance Fund, or any successor thereto.

        

        Business
          Day:
          Any day
          other than (i) a Saturday or Sunday, or (ii) a legal holiday in the States
          of
          New York, Iowa or the Commonwealth of Pennsylvania, or (iii) a day on which
          banks in the States of New York, Iowa or Pennsylvania are authorized or
          obligated by law or executive order to be closed.

        

        Code:
          The
          Internal Revenue Code of 1986, as it may be amended from time to time,
          or any
          successor statute thereto, and applicable U.S. Department of the Treasury
          regulations issued pursuant thereto.

        

        Condemnation
          Proceeds:
          All
          awards or settlements in respect of a Mortgaged Property, whether permanent
          or
          temporary, partial or entire, by exercise of the power of eminent domain
          or
          condemnation, to the extent not required to be released to a Mortgagor
          in
          accordance with the terms of the related Mortgage Loan Documents.

        

        Custodial
          Account:
          The
          separate demand account or accounts created and maintained pursuant to
          Section
          4.04 which shall be entitled "GMAC Mortgage Corporation Custodial Account
          in
          trust for [Owner], Owner of Whole Loan Mortgages and various Mortgagors"
          and
          shall be established at a Qualified Depository, each of which accounts
          shall in
          no event contain funds in excess of the FDIC insurance limits.

        

        Custodian:
          Wells
          Fargo Bank Minnesota, N.A., or such other custodian as Owner shall
          designate. 

        

        Cut-off
          Date:
          As
          identified on the related Confirmation.

        

        Determination
          Date:
          The
          15th day (or if such 15th day is not a Business Day, the Business Day
          immediately preceding such 15th day) of the month of the Remittance
          Date.

        

        Due
          Date:
          Each
          day on which payments of principal and interest are required to be paid
          in
          accordance with the terms of the related Mortgage Note, exclusive of any
          days of
          grace.

        

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

        

        Effective
          Date:
          As
          identified on the related Confirmation.

        

        Escrow
          Account:
          The
          separate trust account or accounts created and maintained pursuant to Section
          4.06 which shall be entitled "GMAC Mortgage Corporation Escrow Account,
          in trust
          for [Owner], Owner of Whole Loan Mortgages and various Mortgagors" and
          shall be
          established at a Qualified Depository, each of which accounts shall in
          no event
          contain funds in excess of the FDIC insurance limits.

        

        Escrow
          Payments:
          With
          respect to any Mortgage Loan, the amounts constituting ground rents, taxes,
          assessments, water rates, sewer rents, municipal charges, mortgage insurance
          premiums, fire and hazard insurance premiums, condominium charges, and
          any other
          payments required to be escrowed by the Mortgagor with the mortgagee pursuant
          to
          the Mortgage or any other document.

        

        Event
          of Default:
          Any one
          of the conditions or circumstances enumerated in Section 9.01.

        

        Fannie
          Mae:
          Fannie
          Mae, or any successor thereto.

        

        Fannie
          Mae Guide:
          The
          Fannie Mae Selling Guide and the Fannie Mae Servicing Guide and all amendments
          or additions thereto.

        

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

        

        Fidelity
          Bond:
          A
          fidelity bond to be maintained by the Servicer pursuant to Section
          4.12.

        

        FIRREA:
          The
          Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as
          amended
          from time to time.

        

        Freddie
          Mac:
          Freddie
          Mac, or any successor thereto.

        

        Freddie
          Mac Guide:
          The
          Freddie Mac Selling Guide and the Freddie Mac Servicing Guide and all amendments
          or additions thereto.

        

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

        

        
          	 	
                  GAAP:
                    Generally accepted accounting procedures, consistently
                    applied.

                

        

        

        HUD:
          The
          United States Department of Housing and Urban Development or any
          successor.

        

        Index:
          With
          respect to each ARM Loan, on the related Adjustment Date, the index used
          to
          determine the Mortgage Interest Rate on each such ARM Loan.

        

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

        

        Lifetime
          Rate Cap:
          With
          respect to each ARM Loan, the maximum Mortgage Interest Rate over the term
          of
          such Mortgage Loan, as specified in the related Mortgage Note.

        

        Liquidation
          Proceeds:
          Cash
          received in connection with the liquidation of a defaulted Mortgage Loan,
          whether through the sale or assignment of such Mortgage Loan, trustee's
          sale,
          foreclosure sale or otherwise, other than amounts received following the
          acquisition of an REO Property pursuant to Section 4.13.

        

        Margin:
          With
          respect to each ARM Loan, the fixed percentage amount set forth in each
          related
          Mortgage Note which is added to the Index in order to determine the related
          Mortgage Interest Rate.

        

        Monthly
          Advance:
          The
          aggregate of the advances made by the Servicer on any Remittance Date pursuant
          to Section 5.03.

        

        Monthly
          Payment:
          With
          respect to each Mortgage Loan, the scheduled monthly payment of principal
          and
          interest thereon which is payable by the related Mortgagor under the related
          Mortgage Note.

        

        Mortgage:
          The
          mortgage, deed of trust or other instrument securing a Mortgage Note which
          creates a first lien on an unsubordinated estate in fee simple in real
          property
          securing the Mortgage Note.

        

        Mortgage
          Interest Rate:
          The
          annual rate at which interest accrues on any Mortgage Loan in accordance
          with
          the provisions of the related Mortgage Note, and in the case of an ARM
          Loan, as
          adjusted from time to time on each Adjustment Date for such Mortgage Loan
          to
          equal the Index for such Mortgage Loan plus the Margin for such Mortgage
          Loan,
          and subject to the limitations on such interest rate imposed by the Periodic
          Rate Cap and the Lifetime Rate Cap.

        

        Mortgage
          Loan:
          An
          individual Mortgage Loan described herein, and as further identified on
          the
          Mortgage Loan Schedule, which Mortgage Loan includes without limitation
          the
          Mortgage Loan Documents, the Monthly Payments, Principal Prepayments,
          Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, REO Disposition
          Proceeds, and all other rights, benefits, proceeds and obligations arising
          from
          or in connection with such Mortgage Loan.

        

        Mortgage
          Loan Documents:
          The
          original mortgage loan legal documents held by the Custodian.

        

        Mortgage
          Loan Remittance Rate:
          With
          respect to each Mortgage Loan, the annual rate of interest remitted to
          the
          Owner, which shall be equal to the related Mortgage Interest Rate minus
          the
          Servicing Fee Rate.

        

        Mortgage
          Loan Schedule:
          The
          schedule of Mortgage Loans attached hereto as Exhibit
          A,
          such
          schedule being acceptable to the Owner and the Servicer.

        

        Mortgage
          Note:
          The
          note or other evidence of the indebtedness of a Mortgagor secured by a
          Mortgage.

        

        Mortgaged
          Property:
          The
          underlying real property securing repayment of a Mortgage Note, consisting
          of a
          single parcel of real estate considered to be real estate under the laws
          of the
          State in which such real property is located, which may include condominium
          units and planned unit developments, improved by a residential
          dwelling.

        

        Mortgagor:
          The
          obligor on a Mortgage Note. The Mortgagor is a natural person who is a
          party to
          the Mortgage Note and Mortgage in an individual capacity.

        

        Nonrecoverable
          Advance:
          Any
          advance previously made by the Servicer pursuant to Section 5.03 or any
          expenses
          incurred pursuant to Section 4.08 which, in the good faith judgment of
          the
          Servicer, may not be ultimately recoverable by the Servicer from Liquidation
          Proceeds. The determination by the Servicer that is has made a Nonrecoverable
          Advance, shall be evidenced by an Officer’s Certificate of the Servicer
          delivered to the Owner and detailing the reasons for such
          determination.

        

        OCC:
          Office
          of the Comptroller of the Currency, its successors and assigns.

        

        Officers'
          Certificate:
          A
          certificate signed by the Chairman of the Board, the Vice Chairman of the
          Board,
          the President, a Senior Vice President or a Vice President or by the Treasurer
          or the Secretary or one of the Assistant Treasurers or Assistant Secretaries
          of
          the Servicer, and delivered to the Owner as required by this
          Agreement.

        

        Opinion
          of Counsel:
          A
          written opinion of counsel, who may be an employee of the party on behalf
          of
          whom the opinion is being given, reasonably acceptable to the
          Owner.

        

          OTS:
          Office
          of Thrift Supervision, its successors and assigns.

        

        Owner:
          EMC
          Mortgage Corporation, its successors in interest and assigns.

        

        Partial
          Principal Prepayment:
          A
          Principal Prepayment by a Mortgagor of a partial principal balance of a
          Mortgage
          Loan.

        

        Pass-Through
          Transfer:
          The
          sale or transfer of same or all of the Mortgage Loans to a trust as part
          of a
          publicly issued or privately placed, rated or unrated Mortgage pass-through
          transaction.

        

        Periodic
          Rate Cap:
          With
          respect to each ARM Loan, the maximum increase or decrease in the Mortgage
          Interest Rate on any Adjustment Date.

        

        Permitted
          Investments:
          Any one
          or more of the following obligations or securities:

        

        (i) direct
          obligations of, and obligations fully guaranteed 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; pro-vided that obligations of Freddie Mac or Fannie Mae shall
          be
          Per-mitted Invest-ments only if, at the time of investment, they are rated
          in
          one of the two highest rating categories by Standard & Poor's Rating
          Services, a division of The McGraw-Hill Companies Inc., Moody's Investors
          Service, Inc. and Fitch IBCA Inc.;

        

        (ii) (a)
          demand or time deposits, federal funds or bankers' acceptances issued by
          any
          depository institu-tion or trust company 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 banking authorities, provided that
          the
          commercial paper and/or the short-term deposit rating and/or the long-term
          unsecured debt obligations or deposits of such depository institution or
          trust
          company at the time of such investment or contractual commitment providing
          for
          such investment are rated in one of the two highest rating categories by
          Standard & Poor's Rating Services, a division of The McGraw-Hill Companies
          Inc., Moody's Investors Service, Inc. and Fitch IBCA Inc. and (b) any other
          demand or time deposit or certificate of deposit that is fully insured
          by the
          Federal Deposit Insurance Cor-poration;

        

        (iii) repurchase
          obligations with respect to (a) any security described in clause (i) above
          or
          (b) any other security issued or guaranteed by an agency or instrumen-tality
          of
          the United States of America, the obligations of which are backed by the
          full
          faith and credit of the United States of America, in either case entered
          into
          with a depository institution or trust company (acting as principal) described
          in clause (ii)(a) above;

        

        (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 that
          are
          rated in one of the two highest rating categories by Standard & Poor's
          Rating Services, a division of The McGraw-Hill Companies Inc., Moody's
          Investors
          Service, Inc. and Fitch IBCA Inc. at the time of such in-vestment or contractual
          commitment providing for such investment; provided,
          however,
          that
          securities issued by any particular corporation will not be Permitted
          Investments to the extent that investments therein will cause the then
          outstanding principal amount of secur-ities issued by such corporation
          and held
          as Permitted Investments to exceed 10% of the aggregate outstand-ing principal
          balances and amounts of all the Permitted Investments;

        

        (v) commercial
          paper (including both non-interest-bearing discount obligations and
          interest-bearing obliga-tions payable on demand or on a specified date
          not more
          than one year after the date of issuance there-of) which are rated in one
          of the
          two highest rating categories by Standard & Poor's Rating Services, a
          division of The McGraw-Hill Companies Inc., Moody's Investors Service,
          Inc. and
          Fitch IBCA Inc. at the time of such investment;

        

        (vi) any
          other
          demand, money market or time deposit, obligation, security or investment
          as may
          be acceptable to each of Standard & Poor's Rating Services, a division of
          The McGraw-Hill Companies, Inc., Moody's Investors Service, Inc. and Fitch
          IBCA
          Inc.;

        

        (vii)  any
          money
          market funds the collateral of which consists of obligations fully guaranteed
          by
          the United States of America or any agency or instru-ment-al-ity of the
          United
          States of America the obligations of which are backed by the full faith
          and
          credit of the United States of America (which may include repurchase obligations
          secured by collateral described in clause (i)) and other securities and
          which
          money market funds are rated in one of the two highest rating categories
          by
          Standard & Poor's Rating Services, a division of The McGraw-Hill Companies
          Inc., Moody's Investors Service, Inc. and Fitch IBCA Inc.; and

        

        (viii) GMAC
          Variable Denomination Adjustable Rate Demand Notes constituting unsecured,
          senior debt obligations of General Motors Acceptance Corporation as outlined
          in
          the prospectus dated June 17, 1998 and rated by Moody’s in its highest
          short-term rating category available and rated at least D-1 by
          Fitch;

        

        

        provided,
          however,
          that no
          instrument or security shall be a Permitted Investment if such instrument
          or
          security evidences a right to receive only interest payments with respect
          to the
          ob-li-ga-tions underlying such instrument or if such security provides
          for
          payment of both principal and interest with a yield to matur-ity in excess
          of
          120% of the yield to maturity at par.

        

        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. 

         

        Prepayment
          Interest Shortfall:
          The sum
          of the differences between interest actually received in a Due Period as
          a
          result of a full or partial prepayment or other unscheduled receipt of
          principal
          (including as a result of a liquidation) on each Mortgage Loan as to which
          such
          a payment is received and the interest portion of the Monthly Payment of
          such
          Mortgage Loan scheduled to be due at the applicable Mortgage Loan Remittance
          Rate; provided, however, Prepayment Interest Shortfalls shall not include
          Full
          Principal Prepayments received on or before the 15th
          day of
          the month in which a Remittance Date occurs which are remitted by the Servicer
          to the Owner on such Remittance Date.

        

        Primary
          Mortgage Insurance Policy:
          Each
          primary policy of mortgage insurance, or any replacement policy therefor
          obtained by the Servicer pursuant to Section 4.08.

        

        Prime
          Rate:
          The
          prime rate of U.S. money center banks as published from time to time in
          

        The
          Wall Street Journal.

        

        Principal
          Prepayment:
          Any
          payment or other recovery of principal on a Mortgage Loan, full or partial,
          which is received in advance of its scheduled Due Date, including any prepayment
          penalty or premium thereon and which is not accompanied by an amount of
          interest
          representing scheduled interest due on any date or dates in any month or
          months
          subsequent to the month of prepayment.

        

        Qualified
          Appraiser:
          An
          appraiser, duly appointed by the Servicer, who had no interest, direct
          or
          indirect in the Mortgaged Property or in any loan made on the security
          thereof,
          and whose compensation is not affected by the approval or disapproval of
          the
          Mortgage Loan, which appraiser and the appraisal made by such appraiser
          both
          satisfy the requirements of Title XI of FIRREA and the regulations promulgated
          thereunder, all as in effect on the date the Mortgage Loan was
          originated.

        

        Qualified
          Depository:
          (a) The
          Custodian or (b) a depository, the accounts of which are insured by the
          FDIC
          through the BIF or the SAIF and the short term debt ratings and the long
          term
          deposit ratings of which are rated in one of the two highest rating categories
          by Standard & Poor's Ratings Services, a division of The McGraw-Hill
          Companies Inc., Moody's Investors Service, Inc., Fitch IBCA Duff &
Phelps.

        

        Qualified
          Insurer:
          An
          insurance company duly qualified as such under the laws of the states in
          which
          the Mortgaged Properties are located, duly authorized and licensed in such
          states to transact the applicable insurance business and to write the insurance
          provided, approved as an insurer by Fannie Mae and Freddie Mac. 

        

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

        

        REMIC
          Provisions:
          The
          provisions of the Federal income tax law relating to a REMIC, which appear
          at
          Section 860A through 860G of Subchapter M of Chapter 1, Subtitle A of the
          Code,
          and related provisions, and regulations, rulings or pronouncements promulgated
          thereunder, as the foregoing may be in effect from time to time.

        

        Remittance
          Date:
          The
          18th day of any month, or if such 18th day is not a Business Day, the first
          Business Day immediately preceding such 18th day.

        

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

        

        REO
          Disposition Proceeds:
          Amounts
          received by the Servicer in connection with a related REO
          Disposition.

        

        REO
          Property:
          A
          Mortgaged Property acquired by the Servicer on behalf of the Owner as described
          in Section 4.13.

        

        
          	 	
                  SAIF:
                    The Savings Association Insurance Fund, or any successor
                    thereto.

                

        

        

        Servicer:
          GMAC
          Mortgage Corporation, or any of its successors in interest or any successor
          under this Agreement appointed as herein provided.

        

        Servicing
          Advances:
          All
          customary, reasonable and necessary "out of pocket" costs and expenses
          (including reasonable attorneys' fees and disbursements) incurred prior
          to, on
          and subsequent to the Effective Date in the performance by the Servicer
          of its
          servicing obligations relating to each Mortgage Loan, including, but not
          limited
          to, the cost of (a) the preservation, restoration and protection of the
          Mortgaged Property, (b) any enforcement, administrative or judicial proceedings,
          or any legal work or advice specifically related to servicing the Mortgage
          Loans, including but not limited to, foreclosures, bankruptcies, condemnations,
          drug seizures, elections, foreclosures by subordinate or superior lienholders,
          and other legal actions incidental to the servicing of the Mortgage Loans
          (provided that such expenses are reasonable and that the Servicer specifies
          the
          Mortgage Loan(s) to which such expenses relate), (c) the management and
          liquidation of the Mortgaged Property if the Mortgaged Property is acquired
          in
          full or partial satisfaction of the Mortgage, (d) taxes, assessments, water
          rates, sewer rates and other charges which are or may become a lien upon
          the
          Mortgaged Property, and Primary Mortgage Insurance Policy premiums and
          fire and
          hazard insurance coverage and (e) compliance with the obligations under
          Section
          4.08.

        

        Servicing
          Fee:
          With
          respect to each Mortgage Loan, the amount of the annual fee the Owner shall
          pay
          to the Servicer, which shall, for a period of one full month, be equal
          to
          one--twelfth of the product of (a) the applicable Servicing Fee Rate and
          (b) the
          outstanding principal balance of such Mortgage Loan. Such fee shall be
          payable
          monthly, computed on the basis of the same principal amount and period
          respecting which any related interest payment on a Mortgage Loan is computed.
          The obligation of the Owner to pay the Servicing Fee is limited to, and
          the
          Servicing Fee is payable solely from, the interest portion (not including
          recoveries of interest from Liquidation Proceeds or otherwise) of such
          Monthly
          Payment collected by the Servicer, or as otherwise provided under Section
          4.05.

        

        Servicing
          Fee Rate:
          The
          Servicing Fee Rate shall be a rate per annum equal to 0.25%.

        

        Servicing
          File:
          The
          documents, records and other items pertaining to a particular Mortgage
          Loan, and
          any additional documents relating to such Mortgage Loan as are in, or as
          may
          from time to time come into, the Servicer's possession.

        

        Servicing
          Officer:
          Any
          officer of the Servicer involved in, or responsible for, the administration
          and
          servicing of the Mortgage Loans whose name appears on a list of servicing
          officers furnished by the Servicer to the Owner upon request, as such list
          may
          from time to time be amended.

        

        Stated
          Principal Balance:
          As to
          each Mortgage Loan as of any date of determination, (i) the principal balance
          of
          such Mortgage Loan after giving effect to payments of principal due, whether
          or
          not received, minus (ii) all amounts previously distributed to the Owner
          with
          respect to the Mortgage Loan representing payments or recoveries of principal
          or
          advances in lieu thereof.

        

        Whole
          Loan Transfer:
          The
          sale or transfer of some or all of the ownership interest in the Mortgage
          Loans
          by the Owner to one or more third parties in whole loan or participation
          format,
          which third party may be Fannie Mae or Freddie Mac.

         

        
 

        

        ARTICLE
          II

         

        SERVICING
          OF MORTGAGE LOANS;

        POSSESSION
          OF SERVICING FILES;

        BOOKS
          AND RECORDS;

        DELIVERY
          OF MORTGAGE LOAN DOCUMENTS

        

        
          	 	
                  Section
                    2.01 Servicing
                    of Mortgage Loans.

                

        

        

        From
          and
          after the Effective Date, the Servicer does hereby agree to service the
          Mortgage
          Loans, but subject to the terms of this Agreement. The rights of the Owner
          to
          receive payments with respect to the Mortgage Loans shall be as set forth
          in
          this Agreement.

        

        Section
          2.02 Maintenance
          of Servicing Files.

        

        The
          Servicer shall maintain a Servicing File consisting of all documents necessary
          to service the Mortgage Loans. The possession of each Servicing File by
          the
          Servicer is for the sole purpose of servicing the Mortgage Loan, and such
          retention and possession by the Servicer is in a custodial capacity only.
          The
          Servicer acknowledges that the ownership of each Mortgage Loan, including
          the
          Note, the Mortgage, all other Mortgage Loan Documents and all rights, benefits,
          proceeds and obligations arising therefrom or in connection therewith,
          has been
          vested in the Owner. All rights arising out of the Mortgage Loans including,
          but
          not limited to, all funds received on or in connection with the Mortgage
          Loans
          and all records or documents with respect to the Mortgage Loans prepared
          by or
          which come into the possession of the Servicer shall be received and held
          by the
          Servicer in trust for the exclusive benefit of the Owner as the owner of
          the
          related Mortgage Loans. Any portion of the related Servicing Files retained
          by
          the Servicer shall be appropriately identified in the Servicer's computer
          system
          to clearly reflect the ownership of the related Mortgage Loans by the Owner.
          The
          Servicer shall release its custody of the contents of the related Servicing
          Files only in accordance with written instructions of the Owner, except
          when
          such release is required as incidental to the Servicer's servicing of the
          Mortgage Loans, such written instructions shall not be required.

        

        Section
          2.03 Books
          and Records.

        

        The
          Servicer shall be responsible for maintaining, and shall maintain, a complete
          set of books and records for the Mortgage Loans which shall be appropriately
          identified in the Servicer's computer system to clearly reflect the ownership
          of
          the Mortgage Loan by the Owner. In particular, the Servicer shall maintain
          in
          its possession, available for inspection by the Owner, or its designee
          and shall
          deliver to the Owner upon demand, evidence of compliance with all federal,
          state
          and local laws, rules and regulations, and requirements of Fannie Mae or
          Freddie
          Mac, as applicable, including but not limited to documentation as to the
          method
          used in determining the applicability of the provisions of the Flood Disaster
          Protection Act of 1973, as amended, to the Mortgaged Property, documentation
          evidencing insurance coverage and eligibility of any condominium project
          for
          approval by Fannie Mae and periodic inspection reports as required by Section
          4.13. To the extent that original documents are not required for purposes
          of
          realization of Liquidation Proceeds or Insurance Proceeds, documents maintained
          by the Servicer may be in the form of microfilm or microfiche or such other
          reliable means of recreating original documents, including but not limited
          to,
          optical imagery techniques so long as the Servicer complies with the
          requirements of the Fannie Mae Guide.

        

        The
          Servicer shall maintain with respect to each Mortgage Loan and shall make
          available for inspection by any Owner or its designee the related Servicing
          File
          (or copies thereof) upon reasonable request during the time the Owner retains
          ownership of a Mortgage Loan and thereafter in accordance with applicable
          laws
          and regulations.

        

        
          	 	
                  Section
                    2.04. Transfer
                    of Mortgage Loans.

                

        

        

        The
          Servicer shall keep at its servicing office books and records in which,
          subject
          to such reasonable regulations as it may prescribe from time to time, the
          Servicer shall note transfers of Mortgage Loans. No transfer of a Mortgage
          Loan
          may be made unless such transfer is in compliance with the terms hereof.
          For the
          purposes of this Agreement, the Servicer shall be under no obligation to
          deal
          with any person with respect to this Agreement or any Mortgage Loan unless
          a
          notice of the transfer of such Mortgage Loan has been delivered to the
          Servicer
          in accordance with this Section 2.04. The Owner may, subject to the terms
          of
          this Agreement, sell and transfer one or more of the Mortgage Loans in
          accordance with Sections 10.02 and 11.12, provided,
          however, that the transferee will not be deemed to be an Owner hereunder
          binding
          upon the Servicer unless such transferee shall agree in writing to be bound
          by
          the terms of this Agreement and an assignment and assumption of this Agreement
          reasonably acceptable to the Servicer. The Owner also shall advise the
          Servicer
          in writing of the transfer. Upon receipt of notice of the permitted transfer,
          the Servicer shall mark its books and records to reflect the ownership
          of the
          Mortgage Loans of such assignee, and shall release the previous Owner from
          its
          obligations hereunder with respect to the Mortgage Loans sold or
          transferred.

        

        Section
          2.05 Delivery
          of Mortgage Loan Documents.

        

        The
          Servicer shall forward to the Custodian on behalf of the Owner original
          documents evidencing an assumption, modification, consolidation or extension
          of
          any Mortgage Loan entered into in accordance with Section 4.01 or 6.01
          promptly
          after their execution; provided, however, that the Servicer shall provide
          the
          Custodian on behalf of the Owner with a certified true copy of any such
          document
          submitted for recordation promptly after its execution, and shall provide
          the
          original of any document submitted for recordation or a copy of such document
          certified by the appropriate public recording office to be a true and complete
          copy of the original within 180 days of its execution. If delivery is not
          completed within 180 days solely due to delays in making such delivery
          by reason
          of the fact that such documents shall not have been returned by the appropriate
          recording office, the Servicer shall continue to use its best efforts to
          effect
          delivery as soon as possible thereafter.

        

        From
          time
          to time the Servicer may have a need for Mortgage Loan Documents to be
          released
          by the Custodian. If the Servicer shall require any of the Mortgage Loan
          Documents, the Servicer shall notify the Custodian in writing of such request
          in
          the form of the request for release attached hereto as Exhibit
          D.
          The
          Custodian shall deliver to the Servicer promptly, and in no event later
          than
          within five (5) Business Days, any requested Mortgage Loan Document previously
          delivered to the Custodian, provided that such documentation is promptly
          returned to the Custodian when the Servicer no longer requires possession
          of the
          document, and provided that during the time that any such documentation
          is held
          by the Servicer, such possession is in trust for the benefit of the
          Owner.

        

        
          	 	
                  Section
                    2.06 Quality
                    Control Procedures.

                

        

        

        The
          Servicer must have an internal quality control program that verifies, on
          a
          regular basis, the existence and accuracy of the legal documents, credit
          documents, property appraisals, and underwriting decisions. The program
          must be
          capable of evaluating and monitoring the overall quality of its servicing
          activities. The purpose of the program is to ensure that the Mortgage Loans
          are
          serviced in accordance with prudent mortgage banking practices and accounting
          principles; guard against dishonest, fraudulent, or negligent acts; and
          guard
          against errors and omissions by officers, employees, or other authorized
          persons.

         

        
 

        ARTICLE
          III

        

        REPRESENTATIONS
          AND WARRANTIES

        OF
          THE
          SERVICER

        

        The
          Servicer represents, warrants and covenants to the Owner that as of the
          Effective Date or as of such date specifically provided herein:

        

        (a) The
          Servicer is a validly existing corporation in good standing under the laws
          of
          the State of its organization and is qualified to transact business in,
          is in
          good standing under the laws of, and possesses all licenses necessary for
          the
          conduct of its business in, each state in which any Mortgaged Property
          is
          located or is otherwise exempt or not required under applicable law to
          effect
          such qualification or license and no demand for such qualification or license
          has been made upon the Servicer by any such state, and in any event the
          Servicer
          is in compliance with the laws of each such State to the extent necessary
          to
          ensure the enforceability of each Mortgage Loan and the servicing of the
          Mortgage Loans in accordance with the terms of this Agreement;

        

        (b) The
          Servicer has full power and authority to execute, deliver and perform,
          and to
          enter into and consummate all transactions contemplated by this Agreement
          and to
          conduct its business as presently conducted, has duly authorized the execution,
          delivery and performance of this Agreement, has duly executed and delivered
          this
          Agreement, and this Agreement constitutes a legal, valid and binding obligation
          of the Servicer, enforceable against it in accordance with its terms subject
          to
          bankruptcy laws and other similar laws of general application affecting
          rights
          of creditors and subject to the application of the rules of equity, including
          those respecting the availability of specific performance;

        

        (c) None
          of
          the execution and delivery of this Agreement, the consummation of the
          transactions contemplated thereby and hereby, or the fulfillment of or
          compliance with the terms and conditions of this Agreement will conflict
          with
          any of the terms, conditions or provisions of the Servicer's articles of
          incorporation or by-laws or materially conflict with or result in a material
          breach of any of the terms, conditions or provisions of any legal restriction
          or
          any agreement or instrument to which the Servicer is now a party or by
          which it
          is bound, or constitute a default or result in an acceleration under any
          of the
          foregoing, or result in the material violation of any law, rule, regulation,
          order, judgment or decree to which the Servicer or its property is
          subject;

        

        (d) There
          is
          no litigation pending or, to the Seller’s knowledge, threatened with respect to
          the Servicer which is reasonably likely to have a material adverse effect
          on the
          execution, delivery or enforceability of this Agreement, or which is reasonably
          likely to have a material adverse effect on the financial condition of
          the
          Servicer;

        

        (e) No
          consent, approval, authorization or order of any court or governmental
          agency or
          body is required for the execution, delivery and performance by the Servicer
          of
          or compliance by the Servicer with this Agreement or the consummation of
          the
          transactions contemplated by this Agreement except for consents, approvals,
          authorizations and orders which have been obtained;

        

        (f) The
          collection and servicing practices used by the Servicer, with respect to
          each
          Mortgage Note and Mortgage have been in all material respects legal. With
          respect to escrow deposits and payments that the Servicer collects, all
          such
          payments are in the possession of, or under the control of, the Servicer,
          and
          there exist no deficiencies in connection therewith for which customary
          arrangements for repayment thereof have not been made. No escrow deposits
          or
          other charges or payments due under the Mortgage Note have been capitalized
          under any Mortgage or the related Mortgage Note;

        

          (g) The
          Servicer is in good standing to service mortgage loans for Fannie Mae and
          Freddie Mac and no event has occurred which would make the Servicer unable
          to
          comply with eligibility requirements or which would require notification
          to
          either Fannie Mae or Freddie Mac; 

        

        (h) No
          written statement, report or other document furnished or to be furnished
          pursuant to the Agreement contains or will contain any statement that is
          or will
          be inaccurate or misleading in any material respect or omits to state a
          material
          fact required to be stated therein or necessary to make the information
          and
          statements therein not misleading; 

        

        (i) No
          fraud
or
          misrepresentation of a material fact
          with
          respect to the servicing of a Mortgage Loan has taken place on the part
          of the
          Servicer;

        

        (j) At
          the
          time Servicer commenced servicing the Mortgage Loans, either (i) each
          Mortgagor
          was properly notified with respect to Servicer's servicing of the related
          Mortgage Loan in accordance with the Cranston Gonzalez National Affordable
          Housing Act of 1990, as the same may be amended from time to time, and
          the
          regulations provided
          in
          accordance with the Real Estate Settlement Procedures Act or (ii) such
          notification was not required; 

        

        (k) At
          the
time
          Servicer commenced servicing the Mortgage Loans, all
          applicable taxing authorities and insurance companies (including primary
          mortgage insurance policy insurers, if applicable) and/or agents were notified
          of the transfer of the servicing of the Mortgage Loans to Servicer, or
          its
          designee, and Servicer currently receives all related notices, tax bills
          and
          insurance statements. Additionally, any and all costs, fees and expenses
          associated with the Servicer’s commencement of the servicing of the Mortgage
          Loans, including the costs of any insurer notifications, the transfer or
          implementation of tax service contracts, flood certification contracts,
          and any
          and all other servicing transfer-related costs and expenses have been paid
          for
          by the Servicer and will, in no event, be the responsibility of the Owner;
          and

        

        (l) The
          collection
          and servicing practices with respect to each Mortgage Note and Mortgage
          have
          been in all material respects legal. With respect to escrow deposits and
          payments that the Servicer collects, all such payments are in the possession
          of,
          or under the control of, the Servicer, and there exist no deficiencies
          in
          connection therewith for which customary arrangements for repayment thereof
          have
          not been made. No escrow deposits or other charges or payments due under
          the
          Mortgage Note have been capitalized under any Mortgage or the related Mortgage
          Note.

        

        

         

        

        ARTICLE
          IV

        ADMINISTRATION
          AND SERVICING OF MORTGAGE LOANS

         

        
          	 	
                  Section
                    4.01 Servicer
                    to Act as Servicer.

                   

                

        

        The
          Servicer, as independent contract servicer, shall service and administer
          the
          Mortgage Loans in accordance with this Agreement and with Accepted Servicing
          Practices (giving due consideration to the Owner's reliance on the Servicer),
          and shall have full power and authority, acting alone, to do or cause to
          be done
          any and all things in connection with such servicing and administration
          which
          the Servicer may deem necessary or desirable and consistent with the terms
          of
          this Agreement and with Accepted Servicing Practices and shall exercise
          the same
          care that it customarily employs for its own account. Except as set forth
          in
          this Agreement, the Servicer shall service the Mortgage Loans in accordance
          with
          Accepted Servicing Practices in compliance with the servicing provisions
          of the
          Fannie Mae Guide, which include, but are not limited to, provisions regarding
          the liquidation of Mortgage Loans, the collection of Mortgage Loan payments,
          the
          payment of taxes, insurance and other charges, the maintenance of hazard
          insurance with a Qualified Insurer, the maintenance of fidelity bond and
          errors
          and omissions insurance, inspections, the restoration of Mortgaged Property,
          the
          maintenance of Primary Mortgage Insurance Policies, insurance claims, and
          title
          insurance, management of REO Property, permitted withdrawals with respect
          to REO
          Property, liquidation reports, and reports of foreclosures and abandonments
          of
          Mortgaged Property, the transfer of Mortgaged Property, the release of
          Mortgage
          Loan Documents, annual statements, and examination of records and facilities.
          In
          the event of any conflict, inconsistency or discrepancy between any of
          the
          servicing provisions of this Agreement and any of the servicing provisions
          of
          the Fannie Mae Guide, the provisions of this Agreement shall control and
          be
          binding upon the Owner and the Servicer. The Owner shall, upon reasonable
          request, deliver powers-of-attorney to the Servicer sufficient to allow
          the
          Servicer as servicer to execute all documentation requiring execution on
          behalf
          of Owner with respect to the servicing of the Mortgage Loans, including
          satisfactions, partial releases, modifications and foreclosure documentation
          or,
          in the alternative, shall as promptly as reasonably possible, execute and
          return
          such documentation to the Servicer.

        

        Consistent
          with the terms of this Agreement, the Servicer may waive, modify or vary
          any
          term of any Mortgage Loan or consent to the postponement of any such term
          or in
          any manner grant indulgence to any Mortgagor if in the Servicer's reasonable
          and
          prudent determination such waiver, modification, postponement or indulgence
          is
          not materially adverse to the Owner, provided, however, that unless the
          Servicer
          has obtained the prior written consent of the Owner, the Servicer shall
          not
          permit any modification with respect to any Mortgage Loan that would change
          the
          Mortgage Interest Rate, forgive the payment of principal or interest, reduce
          or
          increase the outstanding principal balance (except for actual payments
          of
          principal) or change the final maturity date on such Mortgage Loan. In
          the event
          of any such modification which has been agreed to in writing by the Owner
          and
          which permits the deferral of interest or principal payments on any Mortgage
          Loan, the Servicer shall, on the Business Day immediately preceding the
          related
          Remittance Date in any month in which any such principal or interest payment
          has
          been deferred, deposit in the Custodial Account from its own funds, in
          accordance with Section 4.04 and Section 5.03, the difference between (a)
          such
          month's principal and one month's interest at the related Mortgage Loan
          Remittance Rate on the unpaid principal balance of such Mortgage Loan and
          (b)
          the amount paid by the Mortgagor. The Servicer shall be entitled to
          reimbursement for such advances to the same extent as for all other advances
          pursuant to Section 4.05. Without limiting the generality of the foregoing,
          the
          Servicer shall continue, and is hereby authorized and empowered, to prepare,
          execute and deliver, all instruments of satisfaction or cancellation, or
          of
          partial or full release, discharge and all other comparable instruments,
          with
          respect to the Mortgage Loans and with respect to the Mortgaged
          Properties.

        

        The
          Servicer shall perform all of its servicing responsibilities hereunder
          or may,
          with the Owner's prior written approval, cause a subservicer to perform
          any such
          servicing responsibilities on its behalf, but the use by the Servicer of
          a
          subservicer shall not release the Servicer from any of its obligations
          hereunder
          and the Servicer shall remain responsible hereunder for all acts and omissions
          of each subservicer as fully as if such acts and omissions were those of
          the
          Servicer. Any such subservicer that the Owner shall be requested to consent
          to
          must be a Fannie Mae approved seller/servicer or a Freddie Mac seller/servicer
          in good standing and no event shall have occurred, including but not limited
          to,
          a change in insurance coverage, which would make it unable to comply with
          the
          eligibility requirements for lenders imposed by Fannie Mae or for
          seller/servicers by Freddie Mac, or which would require notification to
          Fannie
          Mae or Freddie Mac. The Servicer shall pay all fees and expenses of each
          subservicer from its own funds, and a subservicer's fee shall not exceed
          the
          Servicing Fee.

        

        At
          the
          cost and expense of the Servicer, without any right of reimbursement from
          the
          Custodial Account, the Servicer shall be entitled to terminate the rights
          and
          responsibilities of a subservicer and arrange, with the Owner's prior written
          approval, for any servicing responsibilities to be performed by a successor
          subservicer meeting the requirements in the preceding paragraph, provided,
          however, that nothing contained herein shall be deemed to prevent or prohibit
          the Servicer, at the Servicer's option, from electing to service the related
          Mortgage Loans itself. In the event that the Servicer's responsibilities
          and
          duties under this Agreement are terminated pursuant to Section 8.04, 9.01
          or
          10.01, and if requested to do so by the Owner, the Servicer shall at its
          own
          cost and expense terminate the rights and responsibilities of each subservicer
          effective as of the date of termination of the Servicer. The Servicer shall
          pay
          all fees, expenses or penalties necessary in order to terminate the rights
          and
          responsibilities of each subservicer from the Servicer's own funds without
          reimbursement from the Owner.

        

        Notwithstanding
          any of the provisions of this Agreement relating to agreements or arrangements
          between the Servicer and a subservicer or any reference herein to actions
          taken
          through a subservicer or otherwise, the Servicer shall not be relieved
          of its
          obligations to the Owner and shall be obligated to the same extent and
          under the
          same terms and conditions as if it alone were servicing and administering
          the
          Mortgage Loans. The Servicer shall be entitled to enter into an agreement
          with a
          subservicer for indemnification of the Servicer by the subservicer and
          nothing
          contained in this Agreement shall be deemed to limit or modify such
          indemnification.

        

        Any
          subservicing agreement and any other transactions or services relating
          to the
          Mortgage Loans involving a subservicer shall be deemed to be between such
          subservicer and Servicer alone, and the Owner shall have no obligations,
          duties
          or liabilities with respect to such Subservicer including no obligation,
          duty or
          liability of Owner to pay such subservicer's fees and expenses. For purposes
          of
          distributions and advances by the Servicer pursuant to this Agreement,
          the
          Servicer shall be deemed to have received a payment on a Mortgage Loan
          when a
          subservicer has received such payment.

        

        Section
          4.02 Collection
          of Mortgage Loan Payments.

        

        Continuously
          from the Effective Date until the date each Mortgage Loan ceases to be
          subject
          to this Agreement, the Servicer will proceed with reasonable diligence
          to
          collect all payments due under each Mortgage Loan when the same shall become
          due
          and payable and shall, to the extent such procedures shall be consistent
          with
          this Agreement and the terms and provisions of related Primary Mortgage
          Insurance Policy, follow such collection procedures as it follows with
          respect
          to mortgage loans comparable to the Mortgage Loans and held for its own
          account.
          Further, the Servicer will take reasonable care in ascertaining and estimating
          annual ground rents, taxes, assessments, water rates, fire and hazard insurance
          premiums, mortgage insurance premiums, and all other charges that, as provided
          in the Mortgage, will become due and payable to the end that the installments
          payable by the Mortgagors will be sufficient to pay such charges as and
          when
          they become due and payable.

        

        

        Section
          4.03 Realization
          Upon Defaulted Mortgage Loans.

        

        The
          Servicer shall use its reasonable efforts, consistent with the procedures
          that
          the Servicer would use in servicing loans for its own account and the
          requirements of the Fannie Mae Guide, to foreclose upon or otherwise comparably
          convert the ownership of properties securing such of the Mortgage Loans
          as come
          into and continue in default and as to which no satisfactory arrangements
          can be
          made for collection of delinquent payments pursuant to Section 4.01. The
          Servicer shall use its reasonable efforts to realize upon defaulted Mortgage
          Loans in such manner as will maximize the receipt of principal and interest
          by
          the Owner, taking into account, among other things, the timing of foreclosure
          proceedings. The foregoing is subject to the provisions that, in any case
          in
          which Mortgaged Property shall have suffered damage, the Servicer shall
          not be
          required to expend its own funds toward the restoration of such property
          unless
          it shall determine in its discretion (i) that such restoration will increase
          the
          proceeds of liquidation of the related Mortgage Loan to the Owner after
          reimbursement to itself for such expenses, and (ii) that such expenses
          will be
          recoverable by the Servicer through Insurance Proceeds or Liquidation Proceeds
          from the related Mortgaged Property, as contemplated in Section 4.05. The
          Servicer shall notify the Owner in writing of the commencement of foreclosure
          proceedings. The Servicer shall be responsible for all costs and expenses
          incurred by it in any such proceedings or functions as Servicing Advances;
          provided, however, that it shall be entitled to reimbursement therefor
          from the
          related Mortgaged Property, as contemplated in Section 4.05. Notwithstanding
          anything to the contrary contained herein, in connection with a foreclosure
          or
          acceptance of a deed in lieu of foreclosure, in the event the Servicer
          has
          reasonable cause to believe that a Mortgaged Property is contaminated by
          hazardous or toxic substances or wastes, or if the Owner otherwise requests
          an
          environmental inspection or review of such Mortgaged Property, such an
          inspection or review is to be conducted by a qualified inspector. Upon
          completion of the inspection, the Servicer shall promptly provide the Owner
          with
          a written report of the environmental inspection. After reviewing the
          environmental inspection report, the Owner shall determine how the Servicer
          shall proceed with respect to the Mortgaged Property.

        

        Section
          4.04 Establishment
          of Custodial Accounts; Deposits in Custodial Accounts.

        

        The
          Servicer shall segregate and hold all funds collected and received pursuant
          to
          each Mortgage Loan separate and apart from any of its own funds and general
          assets and shall establish and maintain one or more Custodial Accounts.
          Each
          Custodial Account shall be established with a Qualified Depository. To
          the
          extent such funds are not deposited in a Custodial Account, such funds
          may be
          invested in Permitted Investments for the benefit of the Owner (with any
          income
          earned thereon for the benefit of the Servicer). Funds deposited in the
          Custodial Account may be drawn on by the Servicer in accordance with Section
          4.05. The creation of any Custodial Account shall be evidenced by a letter
          agreement in the form shown in Exhibit
          B
          hereto.
          The original of such letter agreement shall be furnished to the Owner upon
          request. The Servicer acknowledges and agrees that the Servicer shall bear
          any
          losses incurred with respect to Permitted Investments. The amount of any
          such
          losses shall be immediately deposited by the Servicer in the Custodial
          Account,
          as appropriate, out of the Servicer's own funds, with no right to reimbursement
          therefor.

        

        The
          Servicer shall deposit in a mortgage clearing account on a daily basis,
          and in
          the Custodial Account or Accounts no later than the second Business Day
          after
          receipt of funds and retain therein the following payments and
          collections:

        

        (i) all
          payments on account of principal, including Principal Prepayments, on the
          Mortgage Loans received after the Cut-off Date;

        

        (ii) all
          payments on account of interest on the Mortgage Loans adjusted to the related
          Mortgage Loan Remittance Rate received after the Cut-off Date;

        

        (iii) all
          Liquidation Proceeds and REO Disposition Proceeds received after the Cut-off
          Date;

        

        (iv) any
          net
          amounts received by the Servicer after the Cut-off Date in connection with
          any
          REO Property pursuant to Section 4.13;

        

        (v) all
          Insurance Proceeds received after the Cut-off Date including amounts required
          to
          be deposited pursuant to Sections 4.08 and 4.10, other than proceeds to
          be held
          in the Escrow Account and applied to the restoration or repair of the Mortgaged
          Property or released to the Mortgagor in accordance with the Servicer's
          normal
          servicing procedures, the loan documents or applicable law;

        

        (vi) all
          Condemnation Proceeds affecting any Mortgaged Property received after the
          Cut-off Date other than proceeds to be held in the Escrow Account and applied
          to
          the restoration or repair of the Mortgaged Property or released to the
          Mortgagor
          in accordance with the Servicer's normal servicing procedures, the loan
          documents or applicable law;

        

        (vii) any
          Monthly Advances as provided in Section 5.03;

        

        (viii) any
          amounts received after the Cut-off Date and required to be deposited in
          the
          Custodial Account pursuant to 6.02; and

        

        (ix) with
          respect to each full or partial Principal Prepayment received after the
          Cut-off
          date, any Prepayment Interest Shortfalls, to the extent of the Servicer’s
          aggregate Servicing Fee received with respect to the related Due
          Period.

        

        The
          foregoing requirements for deposit in the Custodial Account shall be exclusive,
          it being understood and agreed that, without limiting the generality of
          the
          foregoing, payments in the nature of late payment charges and assumption
          fees,
          to the extent permitted by Section 6.01, need not be deposited by the Servicer
          in the Custodial Account. Any interest paid on funds deposited in the Custodial
          Account by the Qualified Depository shall accrue to the benefit of the
          Servicer
          and the Servicer shall be entitled to retain and withdraw such interest
          from the
          Custodial Account pursuant to Section 4.05(iv).

        

        Section
          4.05 Permitted
          Withdrawals From the Custodial Account.

        

        The
          Servicer may, from time to time, make withdrawals from the Custodial Account
          for
          the following purposes:

        

        (i)
          to
          make payments to the Owner in the amounts and in the manner provided for
          in
          Section 5.01;

        

        (ii)
          to
          reimburse itself for Monthly Advances, the Servicer's right to reimburse
          itself
          pursuant to this subclause (ii) being limited to amounts received on the
          related
          Mortgage Loan which represent late collections (net of the related Servicing
          Fees) of principal and/or interest respecting which any such advance was
          made;

        

        (iii)
          to
          reimburse itself for unreimbursed Servicing Advances and unreimbursed Monthly
          Advances, the Servicer's right to reimburse itself pursuant to this subclause
          (iii) with respect to any Mortgage Loan being limited to Liquidation Proceeds,
          Condemnation Proceeds and Insurance Proceeds received after the Cut-off
          Date
          related to such Mortgage Loan;

        

        (iv)
          to
          pay to itself as servicing compensation (a) any interest earned on funds
          in the
          Custodial Account (all such interest to be withdrawn monthly not later
          than each
          Remittance Date) and (b) any payable Servicing Fee;

        

        (v)
          to
          reimburse itself for any Nonrecoverable Advances:

        

        (vi)
          to
          transfer funds to another Qualified Depository in accordance with Section
          4.09
          hereof;

        

        (vii)
          to
          remove funds inadvertently placed in the Custodial Account in error by
          the
          Servicer; and

        

        (viii)
          to
          clear and terminate the Custodial Account upon the termination of this
          Agreement.

        

        Section
          4.06 Establishment
          of Escrow Accounts; Deposits in Escrow Accounts.

        

        The
          Servicer shall segregate and hold all funds collected and received pursuant
          to
          each Mortgage Loan which constitute Escrow Payments separate and apart
          from any
          of its own funds and general assets and shall establish and maintain one
          or more
          Escrow Accounts. Each Escrow Account shall be established with a Qualified
          Depository. To the extent such funds are not deposited in an Escrow Account,
          such funds may be invested in Permitted Investments. Funds deposited in
          an
          Escrow Account may be drawn on by the Servicer in accordance with Section
          4.07.
          The creation of any Escrow Account shall be evidenced by a letter agreement
          in
          the form shown in Exhibit
          C.
          The
          original of such letter agreement shall be furnished to the Owner upon
          request.
          The Servicer acknowledges and agrees that the Servicer shall bear any losses
          incurred with respect to Permitted Investments. The amount of any such
          losses
          shall be immediately deposited by the Servicer in the Escrow Account, as
          appropriate, out of the Servicer's own funds, with no right to reimbursement
          therefor.

        

        The
          Servicer shall deposit in a mortgage clearing account on a daily basis,
          and in
          the Escrow Account or Accounts no later than the second Business Day after
          receipt of funds and retain therein:

        

        (i)
          all
          Escrow Payments collected on account of the Mortgage Loans, for the purpose
          of
          effecting timely payment of any items as are required under the terms of
          this
          Agreement;

        

        (ii)
          all
          Insurance Proceeds which are to be applied to the restoration or repair
          of any
          Mortgaged Property; and

        

        (iii)
          all
          Servicing Advances for Mortgagors whose Escrow Payments are insufficient
          to
          cover escrow disbursements.

        

        The
          Servicer shall make withdrawals from an Escrow Account only to effect such
          payments as are required under this Agreement, and for such other purposes
          as
          shall be as set forth in and in accordance with Section 4.07. The Servicer
          shall
          be entitled to retain any interest paid on funds deposited in an Escrow
          Account
          by the Qualified Depository other than interest on escrowed funds required
          by
          law to be paid to the Mortgagor and, to the extent required by law, the
          Servicer
          shall pay interest on escrowed funds to the Mortgagor notwithstanding that
          the
          Escrow Account is non-interest bearing or that interest paid thereon is
          insufficient for such purposes.

        

        Section
          4.07 Permitted
          Withdrawals From Escrow Account.

        

        Withdrawals
          from the Escrow Account may be made by the Servicer only:

        

        (i) to
          effect
          timely payments of ground rents, taxes, assessments, water rates, fire
          and
          hazard insurance premiums, Primary Mortgage Insurance Policy premiums,
          if
          applicable, and comparable items;

        

        (ii) to
          reimburse Servicer for any Servicing Advance made by Servicer with respect
          to a
          related Mortgage Loan but only from amounts received on the related Mortgage
          Loan which represent late payments or collections of Escrow Payments
          thereunder;

        

        (iii) to
          refund
          to the Mortgagor any funds as may be determined to be overages;

        

        (iv) for
          transfer to the Custodial Account in connection with an acquisition of
          REO
          Property;

        

        (v) for
          application to restoration or repair of the Mortgaged Property;

        

        (vi) to
          pay to
          the Servicer, or to the Mortgagor to the extent required by law, any interest
          paid on the funds deposited in the Escrow Account;

        

        (vii) to
          pay to
          the Mortgagors or other parties Insurance Proceeds deposited in accordance
          with
          Section 4.06; 

        

        (viii) to
          remove
          funds inadvertently placed in an Escrow Account in error by the Servicer;
          and

        

        (ix) to
          clear
          and terminate the Escrow Account on the termination of this Agreement.
          

        

        As
          part
          of its servicing duties, the Servicer shall pay to the Mortgagors interest
          on
          funds in an Escrow Account, to the extent required by law, and to the extent
          that interest earned on funds in the Escrow Account is insufficient, shall
          pay
          such interest from its own funds, without any reimbursement
          therefor.

        

        Section
          4.08 Payment
          of Taxes, Insurance and Other Charges; Maintenance of Primary Mortgage
          Insurance
          Policies; Collections Thereunder.

        

        With
          respect to each Mortgage Loan, the Servicer shall maintain accurate records
          reflecting the status of ground rents, taxes, assessments, water rates
          and other
          charges which are or may become a lien upon the Mortgaged Property and
          the
          status of Primary Mortgage Insurance Policy premiums and fire and hazard
          insurance coverage and shall obtain, from time to time, all bills for the
          payment of such charges, including renewal premiums and shall effect payment
          thereof prior to the applicable penalty or termination date and at a time
          appropriate for securing maximum discounts allowable, employing for such
          purpose
          deposits of the Mortgagor in the Escrow Account which shall have been estimated
          and accumulated by the Servicer in amounts sufficient for such purposes,
          as
          allowed under the terms of the Mortgage or applicable law. To the extent
          that
          the Mortgage does not provide for Escrow Payments, the Servicer shall determine
          that any such payments are made by the Mortgagor at the time they first
          become
          due. The Servicer assumes full responsibility for the timely payment of
          all such
          bills and shall effect timely payments of all such bills irrespective of
          the
          Mortgagor's faithful performance in the payment of same or the making of
          the
          Escrow Payments and shall make advances from its own funds to effect such
          payments.

        

        The
          Servicer will maintain in full force and effect Primary Mortgage Insurance
          Policies issued by a Qualified Insurer with respect to each Mortgage Loan
          for
          which such coverage is herein required. Such coverage will be maintained
          until
          the ratio of the current outstanding principal balance of the related Mortgage
          Loan to the appraised value of the related Mortgaged Property, based on
          the most
          recent appraisal of the Mortgaged Property performed by a Qualified Appraiser,
          such appraisal to be included in the Servicing File, is reduced to 80.00%
          or
          less. The Servicer will not cancel or refuse to renew any Primary Mortgage
          Insurance Policy that is required to be kept in force under this Agreement
          unless a replacement Primary Mortgage Insurance Policy for such canceled
          or
          nonrenewed policy is obtained from and maintained with a Qualified Insurer.
          The
          Servicer shall not take any action which would result in non-coverage under
          any
          applicable Primary Mortgage Insurance Policy of any loss which, but for
          the
          actions of the Servicer would have been covered thereunder. In connection
          with
          any assumption or substitution agreement entered into or to be entered
          into
          pursuant to Section 6.01, the Servicer shall promptly notify the insurer
          under
          the related Primary Mortgage Insurance Policy, if any, of such assumption
          or
          substitution of liability in accordance with the terms of such policy and
          shall
          take all actions which may be required by such insurer as a condition to
          the
          continuation of coverage under the Primary Mortgage Insurance Policy. If
          such
          Primary Mortgage Insurance Policy is terminated as a result of such assumption
          or substitution of liability, the Servicer shall obtain a replacement Primary
          Mortgage Insurance Policy as provided above.

        

        In
          connection with its activities as servicer, the Servicer agrees to prepare
          and
          present, on behalf of itself and the Owner, claims to the insurer under
          any
          Private Mortgage Insurance Policy in a timely fashion in accordance with
          the
          terms of such Primary Mortgage Insurance Policy and, in this regard, to
          take
          such action as shall be necessary to permit recovery under any Primary
          Mortgage
          Insurance Policy respecting a defaulted Mortgage Loan. Pursuant to Section
          4.04,
          any amounts collected by the Servicer under any Primary Mortgage Insurance
          Policy shall be deposited in the Custodial Account, subject to withdrawal
          pursuant to Section 4.05.

        

        Section
          4.09 Transfer
          of Accounts.

         

        The
          Servicer may transfer the Custodial Account or the Escrow Account to a
          different
          Qualified Depository from time to time. The Servicer shall notify the Owner
          of
          any such transfer within 15 Business Days of transfer.

        

        Section
          4.10 Maintenance
          of Hazard Insurance.

        

        The
          Servicer shall cause to be maintained for each Mortgage Loan fire and hazard
          insurance with extended coverage as is customary in the area where the
          Mortgaged
          Property is located in an amount which is equal to the lesser of (i) the
          maximum
          insurable value of the improvements securing such Mortgage Loan or (ii)
          the
          greater of (a) the outstanding principal balance of the Mortgage Loan,
          and (b)
          the percentage such that the proceeds thereof shall be sufficient to prevent
          the
          Mortgagor and/or the Mortgagee from becoming a co-insurer. If the Mortgaged
          Property is in an area identified in the Federal Register by the Federal
          Emergency Management Agency as being a special flood hazard area that has
          federally-mandated flood insurance requirements, the Servicer will cause
          to be
          maintained a flood insurance policy meeting the requirements of the current
          guidelines of the Federal Insurance Administration with a generally acceptable
          insurance carrier, in an amount representing coverage not less than the
          least of
          (i) the outstanding principal balance of the Mortgage Loan, (ii) the maximum
          insurable value of the improvements securing such Mortgage Loan or (iii)
          the
          maximum amount of insurance which is available under the Flood Disaster
          Protection Act of 1973, as amended. The Servicer shall also maintain on
          the REO
          Property, fire and hazard insurance with extended coverage in an amount
          which is
          at least equal to the maximum insurable value of the improvements which
          are a
          part of such property, liability insurance and, to the extent required
          and
          available under the Flood Disaster Protection Act of 1973, as amended,
          flood
          insurance in an amount as provided above. Any amounts collected by the
          Servicer
          under any such policies other than amounts to be deposited in the Escrow
          Account
          and applied to the restoration or repair of the Mortgaged Property or REO
          Property, or released to the Mortgagor in accordance with the Servicer's
          normal
          servicing procedures, shall be deposited in the Custodial Account, subject
          to
          withdrawal pursuant to Section 4.05. It is understood and agreed that no
          other
          additional insurance need be required by the Servicer or the Mortgagor
          or
          maintained on property acquired in respect of the Mortgage Loans, other
          than
          pursuant to the Fannie Mae Guide or such applicable state or federal laws
          and
          regulations as shall at any time be in force and as shall require such
          additional insurance. All such policies shall be endorsed with standard
          mortgagee clauses with loss payable to the Servicer and its successors
          and/or
          assigns and shall provide for at least thirty days prior written notice
          of any
          cancellation, reduction in the amount or material change in coverage to
          the
          Servicer. The Servicer shall not interfere with the Mortgagor's freedom
          of
          choice in selecting either his insurance carrier or agent, provided, however,
          that the Servicer shall not accept any such insurance policies from insurance
          companies unless such companies currently reflect a General Policy Rating
          in
          Best's Key Rating Guide currently acceptable to Fannie Mae and are licensed
          to
          do business in the state wherein the property subject to the policy is
          located.

        

        Section
          4.11 Adjustments
          to Mortgage Interest Rate and Monthly Payment.

        

        On
          each
          applicable Adjustment Date, the Mortgage Interest Rate shall be adjusted,
          in
          compliance with the requirements of the related Mortgage and Mortgage Note,
          to
          equal the sum of the Index plus the Margin (rounded in accordance with
          the
          related Mortgage Note) subject to the applicable Periodic Rate Cap and
          Lifetime
          Rate Cap, as set forth in the Mortgage Note. The Servicer shall execute
          and
          deliver the notices required by each Mortgage and Mortgage Note and applicable
          laws and regulations regarding interest rate adjustments.

        

        Section
          4.12 Fidelity
          Bond, Errors and Omissions Insurance.

        

        The
          Servicer shall maintain, at its own expense, a blanket fidelity bond and
          an
          errors and omissions insurance policy, with broad coverage with responsible
          companies on all officers, employees or other persons acting in any capacity
          with regard to the Mortgage Loans and who handle funds, money, documents
          and
          papers relating to the Mortgage Loans. The Fidelity Bond and errors and
          omissions insurance shall be in the form of the Mortgage Banker's Blanket
          Bond
          and shall protect and insure the Servicer against losses, including forgery,
          theft, embezzlement, fraud, errors and omissions and negligent acts of
          such
          persons. Such Fidelity Bond and errors and omissions insurance shall also
          protect and insure the Servicer against losses in connection with the failure
          to
          maintain any insurance policies required pursuant to this Agreement and
          the
          release or satisfaction of a Mortgage Loan without having obtained payment
          in
          full of the indebtedness secured thereby. No provision of this Section
          4.12
          requiring the Fidelity Bond and errors and omissions insurance shall diminish
          or
          relieve the Servicer from its duties and obligations as set forth in this
          Agreement. The minimum coverage under any such Fidelity Bond and insurance
          policy shall be at least equal to the corresponding amounts required by
          Fannie
          Mae in the Fannie Mae Guide or by Freddie Mac in the Freddie Mac Guide.
          The
          Servicer shall, upon request of Owner, deliver to the Owner a certificate
          from
          the surety and the insurer as to the existence of the Fidelity Bond and
          errors
          and omissions insurance policy and shall obtain a statement from the surety
          and
          the insurer that such Fidelity Bond or insurance policy shall in no event
          be
          terminated or materially modified without thirty days prior written notice
          to
          the Owner. The Servicer shall notify the Owner within five Business Days
          of
          receipt of notice that such Fidelity Bond or insurance policy will be,
          or has
          been, materially modified or terminated. The Owner and its successors or
          assigns
          as their interests may appear must be named as loss payees on the Fidelity
          Bond
          and as additional insured on the errors and omissions policy.

         

        Section
          4.13 Title,
          Management and Disposition of REO Property.

        

        In
          the
          event that title to any Mortgaged Property is acquired in foreclosure or
          by deed
          in lieu of foreclosure, the deed or certificate of sale shall be taken
          in the
          name of the Owner or its designee. Any such Person or Persons holding such
          title
          other than the Owner shall acknowledge in writing that such title is being
          held
          as nominee for the benefit of the Owner.

        

        The
          Servicer shall notify the Owner in accordance with prudent servicing practices
          of each acquisition of REO Property upon such acquisition, and thereafter
          assume
          the responsibility for marketing such REO Property in accordance with Accepted
          Servicing Practices. Thereafter, the Servicer shall continue to provide
          certain
          administrative services to the Owner relating to such REO Property as set
          forth
          in this Section 4.13. The REO Property must be sold within three years
          following
          the end of the calendar year of the date of acquisition, unless a REMIC
          election
          has been made with respect to the arrangement under which the Mortgage
          Loans and
          REO Property are held and (i) the Owner shall have been supplied with an
          Opinion
          of Counsel to the effect that the holding by the related trust of such
          Mortgaged
          Property subsequent to such three-year period (and specifying the period
          beyond
          such three-year period for which the Mortgaged Property may be held) will
          not
          result in the imposition of taxes on “prohibited transactions” of the related
          trust as defined in Section 860F of the Code, or cause the related REMIC
          to fail
          to qualify as a REMIC, in which case the related trust may continue to
          hold such
          Mortgaged Property (subject to any conditions contained in such Opinion
          of
          Counsel), or (ii) the Owner (at the Servicer’s expense) or the Servicer shall
          have applied for, prior to the expiration of such three-year period, an
          extension of such three-year period in the manner contemplated by Section
          856(e)(3) of the Code, in which case the three-year period shall be extended
          by
          the applicable period. If a period longer than three years is permitted
          under
          the foregoing sentence and is necessary to sell any REO Property, (i) the
          Servicer shall report monthly to the Owner as to progress being made in
          selling
          such REO Property and (ii) if, with the written consent of the Owner, a
          purchase
          money mortgage is taken in connection with such sale, such purchase money
          mortgage shall name the Servicer as mortgagee, and such purchase money
          mortgage
          shall not be held pursuant to this Agreement, but instead a separate
          participation agreement between the Servicer and Owner shall be entered
          into
          with respect to such purchase money mortgage.

        

        The
          Servicer shall not permit the creation of any “interests” (within the meaning of
          Section 860G of the Code) in any REMIC. The Servicer shall not enter into
          any
          arrangement by which a REMIC will receive a fee or other compensation for
          services nor permit a REMIC to receive any income from assets other than
          “qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
          investments” as defined in Section 860G(a)(5) of the Code.

        

        

        Notwithstanding
          any other provision of this Agreement, if a REMIC election has been made,
          no
          Mortgaged Property held by a REMIC shall be rented (or allowed to continue
          to be
          rented) or otherwise used for the production of income by or on behalf
          of the
          related trust or sold in such a manner or pursuant to any terms that would
          (i)
          cause such Mortgaged Property to fail to qualify at any time as “foreclosure
          property” within a meaning of Section 860G(a)(8) of the Code, (ii) subject the
          related trust to the imposition of any federal or state income taxes on
“net
          income from foreclosure property” with respect to such Mortgaged Property within
          the meaning of Section 860G(c) of the Code, or (iii) cause the sale of
          such
          Mortgaged Property to result in the receipt by the related trust or any
          income
          from non-permitted assets as described in Section 860F(a) (2)(B) of the
          Code,
          unless the Servicer has agreed to indemnify and hold harmless the related
          trust
          with respect to the imposition of any such taxes.

        

        The
          Servicer shall, either itself or through an agent selected by the Servicer,
          and
          in accordance with the Fannie Mae Guide, manage, conserve, protect and
          operate
          each REO Property in the same manner that it manages, conserves, protects
          and
          operates other foreclosed property for its own account, and in the same
          manner
          that similar property in the same locality as the REO Property is managed.
          Each
          REO Disposition shall be carried out by the Servicer at such price and
          upon such
          terms and conditions as the Servicer deems to be in the best interest of
          the
          Owner. The REO Disposition Proceeds from the sale of the REO Property shall
          be
          promptly deposited in the Custodial Account. As soon as practical thereafter,
          the expenses of such sale shall be paid and the Servicer shall reimburse
          itself
          for any related Servicing Advances, or Monthly Advances made pursuant to
          Section
          5.03.

        

        The
          Servicer shall cause each REO Property to be inspected promptly upon the
          acquisition of title thereto and shall cause each REO Property to be inspected
          at least monthly thereafter or more frequently as may be required by the
          circumstances. The Servicer shall make or cause the inspector to make a
          written
          report of each such inspection. Such reports shall be retained in the Servicing
          File and copies thereof shall be forwarded by the Servicer to the
          Owner.

        

        Notwithstanding
          anything to the contrary set forth in this Section 4.13, the parties hereto
          hereby agree that the Owner, at its option, shall be entitled to manage,
          conserve, protect and operate each REO Property for its own benefit (such
          option, an "REO Option"). In connection with the exercise of an REO Option,
          the
          prior two paragraphs and the related provisions of Section 4.03 and Section
          4.04(iii) (such provisions, the “REO Marketing Provisions”) shall be revised as
          follows. Following the acquisition of any Mortgaged Property, the Servicer
          shall
          submit a detailed invoice to the Owner for all related Servicing Advances
          and,
          upon exercising the REO Option, the Owner shall promptly reimburse the
          Servicer
          for such amounts. In the event the REO Option is exercised with respect
          to an
          REO Property, Section 4.04 (iii) shall not be applicable thereto. References
          made in Section 4.03 with respect to the reimbursement of Servicing Advances
          shall, for purposes of such REO Property, be deemed to be covered by this
          paragraph. The Owner acknowledges that, in the event it exercises an REO
          Option,
          with respect to the related REO Property, there shall be no breach by the
          Servicer based upon or arising out of the Servicer's failure to comply
          with the
          REO Marketing Provisions.

         

        
 

        ARTICLE
          V

        

        PAYMENTS
          TO THE OWNER

        

        Section
          5.01 Remittances.

        

        On
          each
          Remittance Date, the Servicer shall remit to the Owner (i) all amounts
          credited
          to the Custodial Account as of the close of business on the related preceding
          Determination Date, except (a) Partial Principal Prepayments received on
          or
          after the first day of the month in which the Remittance Date occurs shall
          be
          remitted to the Owner on the next following Remittance Date, (b) Full Principal
          Prepayments received on or before the 15th
          day of
          the month in which a Remittance Date occurs shall be remitted to the Owner
          on
          the Remittance Date of such month, and (c) Full Principal Prepayments received
          after the 15th
          day of
          the month shall be remitted to the Owner on the next following Remittance
          Date,
          each net of charges against or withdrawals from the Custodial Account pursuant
          to Section 4.05, plus, to the extent not already deposited in the Custodial
          Account, the sum of (ii) all Monthly Advances, if any, which the Servicer
          is
          obligated to distribute pursuant to Section 5.03 and (iii) all Prepayment
          Interest Shortfalls the Servicer is required to make up pursuant to Section
          4.04, minus (iv) any amounts attributable to Monthly Payments collected
          after
          the Cut-off Date but due on a Due Date or Dates subsequent to the last
          day of
          the related Due Period, which amounts shall be remitted on the related
          Remittance Date next succeeding the Due Period for such amounts.

        

        With
          respect to any remittance received by the Owner after the Business Day
          on which
          such payment was due, the Servicer shall pay to the Owner interest on any
          such
          late payment at an annual rate equal to the Prime Rate, adjusted as of
          the date
          of each change, plus two percentage points, but in no event greater than
          the
          maximum amount permitted by applicable law. Such interest shall be deposited
          in
          the Custodial Account by the Servicer on the date such late payment is
          made and
          shall cover the period commencing with the day following such Business
          Day and
          ending with the Business Day on which such payment is made, both inclusive.
          Such
          interest shall be remitted along with the distribution payable on the next
          succeeding related Remittance Date. The payment by the Servicer of any
          such
          interest shall not be deemed an extension of time for payment or a waiver
          of any
          Event of Default by the Servicer.

        

        Section
          5.02 Statements
          to the Owner.

        

        The
          Servicer shall furnish to the Owner an individual Mortgage Loan accounting
          report (a “Report”), as of the last Business Day of each month, in the
          Servicer's assigned loan number order to document Mortgage Loan payment
          activity
          on an individual Mortgage Loan basis. With respect to each month, such
          Report
          shall be received by the Owner (i) no later than the fifth Business Day
          of the
          following month of the related Remittance Date on a disk or tape or other
          computer-readable format, in such format as may be mutually agreed upon
          by both
          the Owner and the Servicer, and (ii) no later than the tenth Business Day
          of the
          following month of the related Remittance Date in hard copy, which Report
          shall
          contain the following:

        

        
          	(i)  	
                  with
                    respect to each Monthly Payment, the amount of such remittance
                    allocable
                    to interest

                

        

        

        
          	(ii)  	
                  the
                    amount of servicing compensation received by the Servicer during
                    the prior
                    distribution period;

                

        

        

        
          	(iii)  	
                  the
                    aggregate Stated Principal Balance of the Mortgage Loans;
                    

                

        

        

        
          	(iv)  	
                  the
                    number and aggregate outstanding principal balances of Mortgage
                    Loans (a)
                    delinquent (1) 30 to 59 days, (2) 60 to 89 days, (3) 90 days
                    or more; (b)
                    as to which foreclosure has commenced; and (c) as to which REO
                    Property
                    has been acquired; and

                

        

        

        
          	(v)  	
                  such
                    other reports as may reasonably be required by the
                    Owner.

                

        

        

        

        The
          Servicer shall also provide a trial balance, sorted in the Owner's assigned
          loan
          number order, and such other loan level scheduled-scheduled remittance
          information as described on Exhibit
          E,
          in
          electronic tape form, with each such Report.

        

        The
          Servicer shall prepare and file any and all information statements or other
          filings required to be delivered to any governmental taxing authority or
          to
          Owner pursuant to any applicable law with respect to the Mortgage Loans
          and the
          transactions contemplated hereby. In addition, the Servicer shall provide
          the
          Owner with such information concerning the Mortgage Loans as is necessary
          for
          the Owner to prepare its federal income tax return as the Owner may reasonably
          request from time to time.

        

        In
          addition, not more than 60 days after the end of each calendar year, the
          Servicer shall furnish to each Person who was an Owner at any time during
          such
          calendar year an annual statement in accordance with the requirements of
          applicable federal income tax law as to the aggregate of remittances of
          principal and interest for the applicable portion of such year.

        

        Section
          5.03 Monthly
          Advances by the Servicer.

        

        Not
          later
          than the close of business on the Business Day preceding each Remittance
          Date,
          the Servicer shall deposit in the Custodial Account an amount equal to
          all
          payments not previously advanced by the Servicer, whether or not deferred
          pursuant to Section 4.01, of Monthly Payments, adjusted to the related
          Mortgage
          Loan Remittance Rate, which are delinquent at the close of business on
          the
          related Determination Date; provided, however, that the amount of any such
          deposit may be reduced by (i) the Amount Held for Future Distribution (as
          defined below) then on deposit in the Custodial Account, plus (ii) with
          respect
          to the initial Remittance Date, the Non-held Early Pay Amount (as defined
          below). Any portion of the Amount Held for Future Distribution used to
          pay
          Monthly Advances shall be replaced by the Servicer by deposit into the
          Custodial
          Account on any future Remittance Date to the extent that the funds that
          are
          available in the Custodial Account for remittance to the Owner on such
          Remittance Date are less than the amount of payments required to be made
          to the
          Owner on such Remittance Date. 

        

        The
          “Amount Held for Future Distribution” as to any Remittance Date shall be the
          total of the amounts held in the Custodial Account at the close of business
          on
          the preceding Determination Date which were received after the Cut-off
          Date on
          account of (i) Liquidation Proceeds, Insurance Proceeds, and Partial Principal
          Prepayments received or made in the month of such Remittance Date, (ii)
          Full
          Principal Payments received after the 15th
          day of
          the month in the month of such Remittance Date, and (iii) payments which
          represent early receipt of scheduled payments of principal and interest
          due on a
          date or dates subsequent to the related Due Date. The "Non-held Early Pay
          Amount" shall be the total of the amounts on account of payments which
          represent
          early receipt of scheduled payments of principal and interest received on or
          prior to the Cut-off Date.

        

        The
          Servicer's obligation to make such Monthly Advances as to any Mortgage
          Loan will
          continue through the final disposition or liquidation of the Mortgaged
          Property,
          unless the Servicer deems such advance to be nonrecoverable from Liquidation
          Proceeds, REO Disposition Proceeds or Insurance Proceeds with respect to
          the
          applicable Mortgage Loan. In such latter event, the Servicer shall deliver
          to
          the Owner an Officer's Certificate of the Servicer to the effect that an
          officer
          of the Servicer has reviewed the related Servicing File and has obtained
          a
          recent appraisal and has made the reasonable determination that any additional
          advances are nonrecoverable from Liquidation or Insurance Proceeds with
          respect
          to the applicable Mortgage Loan.

        

        Section
          5.04 Liquidation
          Reports.

        

        Upon
          the
          foreclosure sale of any Mortgaged Property or the acquisition thereof by
          the
          Owner pursuant to a deed-in--lieu of foreclosure, the Servicer shall submit
          to
          the Owner a liquidation report with respect to such Mortgaged Property
          in such
          form as the Servicer and the Owner shall agree. The Servicer shall also
          provide
          reports on the status of REO Property containing such information as Owner
          may
          reasonably require.

         

        
 

        ARTICLE
          VI

        

        GENERAL
          SERVICING PROCEDURES

        

        Section
          6.01 Assumption
          Agreements.

        

        The
          Servicer will, to the extent it has knowledge of any conveyance or prospective
          conveyance by any Mortgagor of a Mortgaged Property (whether by absolute
          conveyance or by contract of, sale, and whether or not the Mortgagor remains
          or
          is to remain liable under the Mortgage Note and/or the Mortgage), exercise
          its
          rights to accelerate the maturity of such Mortgage Loan under any "due-on-sale"
          clause to the extent permitted by law; provided, however, that the Servicer
          shall not exercise any such rights if prohibited by law or the terms of
          the
          Mortgage Note from doing so or if the exercise of such rights would impair
          or
          threaten to impair any recovery under the related Primary Mortgage Insurance
          Policy, if any. If the Servicer reasonably believes it is unable under
          applicable law to enforce such "due-on-sale" clause, the Servicer, with
          the
          approval of the Owner (such approval not to be unreasonably withheld),
          will
          enter into an assumption agreement with the person to whom the Mortgaged
          Property has been conveyed or is proposed to be conveyed, pursuant to which
          such
          person becomes liable under the Mortgage Note and, to the extent permitted
          by
          applicable state law, the Mortgagor remains liable thereon. Where an assumption
          is allowed pursuant to this Section 6.01, the Servicer, with the prior
          consent
          of the primary mortgage insurer, if any, is authorized to enter into a
          substitution of liability agreement with the person to whom the Mortgaged
          Property has been conveyed or is proposed to be conveyed pursuant to which
          the
          original mortgagor is released from liability and such Person is substituted
          as
          mortgagor and becomes liable under the related Mortgage Note. Any such
          substitution of liability agreement shall be in lieu of an assumption
          agreement.

        

        In
          connection with any such assumption or substitution of liability, the Servicer
          shall follow the underwriting practices and procedures of the Fannie Mae
          Guide.
          With respect to an assumption or substitution of liability, the Mortgage
          Interest Rate borne by the related Mortgage Note and the amount of the
          Monthly
          Payment may not be changed. The Servicer shall notify the Owner that any
          such
          substitution of liability or assumption agreement has been completed by
          forwarding to the Owner the original of any such substitution of liability
          or
          assumption agreement, which document shall be added to the related Mortgage
          Loan
          Documents and shall, for all purposes, be considered a part of such related
          mortgage file to the same extent as all other documents and instruments
          constituting a part thereof. All fees collected by the Servicer for entering
          into an assumption or substitution of liability agreement shall belong
          to the
          Servicer.

        

        Notwithstanding
          the foregoing paragraphs of this section or any other provision of this
          Agreement, the Servicer shall not be deemed to be in default, breach or
          any
          other violation of its obligations hereunder by reason of any assumption
          of a
          Mortgage Loan by operation of law or any assumption which the Servicer
          may be
          restricted by law from preventing, for any reason whatsoever. For purposes
          of
          this Section 6.01, the term "assumption" is deemed to also include a sale
          of the
          Mortgaged Property subject to the Mortgage that is not accompanied by an
          assumption or substitution of liability agreement.

        

        Section
          6.02 Satisfaction
          of Mortgages and Release of Mortgage Loan Documents.

        

        Upon
          the
          payment in full of any Mortgage Loan, the Servicer will immediately notify
          the
          Custodian with a certification and request for release by a Servicing Officer,
          which certification shall include a statement to the effect that all amounts
          received in connection with such payment which are required to be deposited
          in
          the Custodial Account pursuant to Section 4.04 have been so deposited,
          and a
          request for delivery to the Servicer of the portion of the Mortgage Loan
          Documents held by the Custodian, and unless the related Mortgage Loans
          are the
          subject of a Pass-Through Transfer, such request is to be acknowledged
          by the
          Owner. Upon receipt of such certification and request, the Owner shall
          promptly
          release or cause the Custodian to promptly release the related Mortgage
          Loan
          Documents to the Servicer and the Servicer shall prepare and deliver for
          execution by the Owner or at the Owner's option execute under the authority
          of a
          power of attorney delivered to the Servicer by the Owner any satisfaction
          or
          release. No expense incurred in connection with any instrument of satisfaction
          or deed of reconveyance shall be chargeable to the Custodial
          Account.

        

        In
          the
          event the Servicer satisfies or releases a Mortgage without having obtained
          payment in full of the indebtedness secured by the Mortgage or should it
          otherwise prejudice any right the Owner may have under the mortgage instruments,
          the Servicer, upon written demand, shall remit within two Business Days
          to the
          Owner the then outstanding principal balance of the related Mortgage Loan
          by
          deposit thereof in the Custodial Account. The Servicer shall maintain the
          Fidelity Bond insuring the Servicer against any loss it may sustain with
          respect
          to any Mortgage Loan not satisfied in accordance with the procedures set
          forth
          herein.

        

        From
          time
          to time and as appropriate for the servicing or foreclosure of the Mortgage
          Loans, including for the purpose of collection under any Primary Mortgage
          Insurance Policy, upon request of the Servicer and delivery to the Custodian
          of
          a servicing receipt signed by a Servicing Officer (and unless the related
          Mortgage Loans are the subject of a Pass-Through Transfer, acknowledged
          by the
          Owner), the Custodian shall release the portion of the Mortgage Loan Documents
          held by the Custodian to the Servicer. Such servicing receipt shall obligate
          the
          Servicer to promptly return the related Mortgage Loan Documents to the
          Custodian, when the need therefor by the Servicer no longer exists, unless
          the
          Mortgage Loan has been liquidated and the Liquidation Proceeds relating
          to the
          Mortgage Loan have been deposited in the Custodial Account or such documents
          have been delivered to an attorney, or to a public trustee or other public
          official as required by law, for purposes of initiating or pursuing legal
          action
          or other proceedings for the foreclosure of the Mortgaged Property either
          judicially or non-judicially, and the Servicer has promptly delivered to
          the
          Owner or the Custodian a certificate of a Servicing Officer certifying
          as to the
          name and address of the Person to which such documents were delivered and
          the
          purpose or purposes of such delivery. Upon receipt of a certificate of
          a
          Servicing Officer stating that such Mortgage Loan was liquidated, the servicing
          receipt shall be released by the Owner or the Custodian, as applicable,
          to the
          Servicer.

        

        Section
          6.03 Servicing
          Compensation.

        

        As
          compensation for its services hereunder, the Servicer shall be entitled
          to
          withdraw from the Custodial Account or to retain from interest payments
          on the
          Mortgage Loans the amounts provided for as the Servicer's Servicing Fee.
          Additional servicing compensation in the form of assumption fees, as provided
          in
          Section 6.01, late payment charges and other ancillary fees shall be retained
          by
          the Servicer to the extent not required to be deposited in the Custodial
          Account. The Servicer shall be required to pay all expenses incurred by
          it in
          connection with its servicing activities hereunder and shall not be entitled
          to
          reimbursement therefor except as specifically provided for.

        

        Section
          6.04 Annual
          Statement as to Compliance.

        

        The
          Servicer will deliver to the Owner not later than 90 days following the
          end of
          each fiscal year of the Servicer, an Officers' Certificate stating, as
          to each
          signatory thereof, that (i) a review of the activities of the Servicer
          during
          the preceding calendar year and of performance under this Agreement has
          been
          made under such officers' supervision, and (ii) to the best of such officers'
          knowledge, based on such review, the Servicer has fulfilled all of its
          obligations under this Agreement throughout such year, or, if there has
          been a
          default in the fulfillment of any such obligation, specifying each such
          default
          known to such officers and the nature and status thereof except for such
          defaults as such Officers in their good faith judgment believe to be
          immaterial.

        

        Section
          6.05 Annual
          Independent Certified Public Accountants' Servicing Report.

        

        Not
          later
          than 90 days following the end of each fiscal year of the Servicer, the
          Servicer
          at its expense shall cause a firm of independent public accountants which
          is a
          member of the American Institute of Certified Public Accountants to furnish
          a
          statement to the Owner to the effect that such firm has examined certain
          documents and records relating to the Servicer's servicing of mortgage
          loans of
          the same type as the Mortgage Loans pursuant to servicing agreements
          substantially similar to this Agreement, which agreements may include this
          Agreement, and that, on the basis of such an examination, conducted
          substantially in accordance with the Uniform Single Attestation Program
          for
          Mortgage Bankers, such firm is of the opinion that the Servicer's servicing
          has
          been conducted in compliance with the agreements examined pursuant to this
          Section 6.05, except for (i) such exceptions as such firm shall believe
          to be
          immaterial, and (ii) such other exceptions as shall be set forth in such
          statement.

        

        Section
          6.06 Owner's
          Right to Examine Servicer Records.

        

        The
          Owner
          shall have the right to examine and audit, at its expense, upon reasonable
          notice to the Servicer, during business hours or at such other times as
          might be
          reasonable under applicable circumstances, any and all of the books, records,
          documentation or other information of the Servicer, or held by another
          for the
          Servicer or on its behalf or otherwise, which relate to the performance
          or
          observance by the Servicer of the terms, covenants or conditions of this
          Agreement.

        

        The
          Servicer shall provide to the Owner and any supervisory agents or examiners
          representing a state or federal governmental agency having jurisdiction
          over the
          Owner, including but not limited to OTS, FDIC and other similar entities,
          access
          to any documentation regarding the Mortgage Loans in the possession of
          the
          Servicer which may be required by any applicable regulations. Such access
          shall
          be afforded without charge, upon reasonable request, during normal business
          hours and at the offices of the Servicer, and in accordance with the applicable
          federal government agency, FDIC, OTS, or any other similar
          regulations.

        

        Section
          6.07 Compliance
          with REMIC Provisions.

        

        If
          a
          REMIC election has been made with respect to the arrangement under which
          the
          Mortgage Loans and REO Property are held, the Servicer shall not take any
          action, cause the REMIC to take any action or fail to take (or fail to
          cause to
          be taken) any action that, under the REMIC Provisions, if taken or not
          taken, as
          the case may be could (i) endanger the status of the REMIC as a REMIC or
          (ii)
          result in the imposition of a tax upon the REMIC (including but not limited
          to
          the tax on “prohibited transactions” as defined in Section 860F(a)(2) of the
          Code and the tax on “contribution” to a REMIC set forth in Section 860G(d) of
          the Code unless the Servicer has received an Opinion of Counsel (at the
          expense
          of the party seeking to take such actions) to the effect that the contemplated
          action will not endanger such REMIC status or result in the imposition
          of any
          such tax.

        

        Section
          6.08 Non-solicitation.

        

        The
          Servicer shall not knowingly conduct any solicitation exclusively targeted
          to
          the Mortgagors for the purpose of inducing or encouraging the early prepayment
          or refinancing of the related Mortgage Loans. It is understood and agreed
          that
          promotions undertaken by the Servicer or any agent or affiliate of the
          Servicer
          which are directed to the general public at large, including, without
          limitation, mass mailings based on commercially acquired mailing lists,
          newspaper, radio and television advertisements shall not constitute solicitation
          under this section. Nothing
          contained herein shall prohibit the Servicer from (i) distributing to Mortgagors
          any general advertising including information brochures, coupon books,
          or other
          similar documentation which indicates services the Seller offers, including
          refinances or (ii) providing financing of home equity loans to Mortgagors
          at the
          Mortgagor’s request.

         

        
 

        

        ARTICLE
          VII

        

        REPORTS
          TO BE PREPARED BY SERVICER

        

        Section
          7.01 Servicer
          Shall Provide Information as Reasonably Required.

        

        The
          Servicer shall furnish to the Owner upon request, during the term of this
          Agreement, such periodic, special or other reports or information, whether
          or
          not provided for herein, as shall be necessary, reasonable or appropriate
          with
          respect to the purposes of this Agreement. The Servicer may negotiate with
          the
          Owner for a reasonable fee for providing such report or information, unless
          (i)
          the Servicer is required to supply such report or information pursuant
          to any
          other section of this Agreement, or (ii) the report or information has
          been
          requested in connection with Internal Revenue Service, OTS, FDIC or other
          regulatory agency requirements. All such reports or information shall be
          provided by and in accordance with all reasonable instructions and directions
          given by the Owner. The
          Servicer agrees to execute and deliver all such instruments and take all
          such
          action as the Owner, from time to time, may reasonably request in order
          to
          effectuate the purpose and to carry out the terms of this Agreement.

         

        
 

        ARTICLE
          VIII

        

        THE
          SERVICER

        

        Section
          8.01 Indemnification;
          Third Party Claims.

        

        The
          Servicer agrees to indemnify the Owner and hold it harmless from and against
          any
          and all claims, losses, damages, penalties, fines, forfeitures, legal fees
          and
          related costs, judgments, and any other costs, fees and expenses that the
          Owner
          may sustain in any way related to the failure of the Servicer to perform
          in any
          way its duties and service the Mortgage Loans in strict compliance with
          the
          terms of this Agreement and for breach of any representation or warranty
          of the
          Servicer contained herein. The Servicer shall immediately notify the Owner
          if a
          claim is made by a third party with respect to this Agreement or the Mortgage
          Loans, assume (with the consent of the Owner and with counsel reasonably
          satisfactory to the Owner) the defense of any such claim and pay all expenses
          in
          connection therewith, including counsel fees, and promptly pay, discharge
          and
          satisfy any judgment or decree which may be entered against it or the Owner
          in
          respect of such claim but failure to so notify the Owner shall not limit
          its
          obligations hereunder. The Servicer agrees that it will not enter into
          any
          settlement of any such claim without the consent of the Owner unless such
          settlement includes an unconditional release of the Owner from all liability
          that is the subject matter of such claim. The provisions of this Section
          8.01
          shall survive termination of this Agreement. In no event will either Purchaser
          or Seller be liable to the other party to this Agreement for incidental
          or
          consequential damages, including, without limitation, loss of profit or
          loss of
          business or business opportunity, regardless of the form of action whether
          in
          contract, tort or otherwise.

         

        

        Section
          8.02 Merger
          or Consolidation of the Servicer.

        

        The
          Servicer will keep in full effect its existence, rights and franchises
          as a
          corporation under the laws of the state of its incorporation except as
          permitted
          herein, and will obtain and preserve its qualification to do business as
          a
          foreign corporation in each jurisdiction in which such qualification is
          or shall
          be necessary to protect the validity and enforceability of this Agreement
          or any
          of the Mortgage Loans and to perform its duties under this
          Agreement.

        

        Any
          Person into which the Servicer may be merged or consolidated, or any corporation
          resulting from any merger, conversion or consolidation to which the Servicer
          shall be a party, or any Person succeeding to the business of the Servicer
          whether or not related to loan servicing, shall be the successor of the
          Servicer
          hereunder, without the execution or filing of any paper or any further
          act on
          the part of any of the parties hereto, anything herein to the contrary
          notwithstanding; provided, however, that the successor or surviving Person
          shall
          be an institution (i) having a GAAP net worth of not less than $25,000,000,
          (ii)
          the deposits of which are insured by the FDIC, SAIF and/or BIF, or which
          is a
          HUD-approved mortgagee whose primary business is in origination and servicing
          of
          first lien mortgage loans, and (iii) which is a Fannie Mae or Freddie Mac
          approved seller/servicer in good standing.

        

        
          	 	
                  Section
                    8.03 Limitation
                    on Liability of the Servicer and Others.

                

        

        

        Neither
          the Servicer nor any of the officers, employees or agents of the Servicer
          shall
          be under any liability to the Owner 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 made in good faith; provided, however, that this provision
          shall not
          protect the Servicer or any such person against any breach of warranties
          or
          representations made herein, or failure to perform in any way its obligations
          in
          compliance with any standard of care set forth in this Agreement, or any
          liability which would otherwise be imposed by reason of negligence or any
          breach
          of the terms and conditions of this Agreement. The Servicer and any officer,
          employee or agent of the Servicer may rely in good faith on any document
          of any
          kind prima facie properly executed and submitted by the Owner respecting
          any
          matters arising hereunder. The Servicer shall not be under any obligation
          to
          appear in, prosecute or defend any legal action which is not incidental
          to its
          duties to service the Mortgage Loans in accordance with this Agreement
          and which
          in its opinion may involve it in any expenses or liability; provided, however,
          that the Servicer may, with the consent of the Owner, which consent shall
          not be
          unreasonably withheld, 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. In such event, the reasonable legal expenses and costs
          of such
          action and any liability resulting therefrom shall be expenses, costs and
          liabilities for which the Owner will be liable, and the Servicer shall
          be
          entitled to be reimbursed therefor from the Owner upon written
          demand.

        

        
          	 	
                  Section
                    8.04 Servicer
                    Not to Resign.

                

        

        

        The
          Servicer shall not resign from the obligations and duties hereby imposed
          on it
          except by mutual consent of the Servicer and the Owner or upon the determination
          that its duties hereunder are no longer permissible under applicable law
          and
          such incapacity cannot be cured by the Servicer. Any such determination
          permitting the resignation of the Servicer shall be evidenced by an Opinion
          of
          Counsel to such effect delivered to the Owner which Opinion of Counsel
          shall be
          in form and substance acceptable to the Owner. No such resignation shall
          become
          effective until a successor shall have assumed the Servicer's responsibilities
          and obligations hereunder in the manner provided in Section 11.01.

        

        Section
          8.05 No
          Transfer of Servicing.

        

          With
          respect to the retention of the Servicer to service the Mortgage Loans
          hereunder, the Servicer acknowledges that the Owner has acted in reliance
          upon
          the Servicer's independent status, the adequacy of its servicing facilities,
          plan, personnel, records and procedures, its integrity, reputation and
          financial
          standing and the continuance thereof. Without in any way limiting the generality
          of this section, the Servicer shall not either assign this Agreement or
          the
          servicing hereunder or delegate its rights or duties hereunder or any portion
          thereof, or sell or otherwise dispose of all or substantially all of its
          property or assets, without the prior written approval of the Owner, which
          approval shall not be unreasonably withheld; provided that the Servicer
          may
          assign the Agreement and the servicing hereunder without the consent of
          Owner to
          an affiliate of the Servicer to which all servicing of the Servicer is
          assigned
          so long as (i) such affiliate is a Fannie Mae and Freddie Mac approved
          servicer
          and (ii) if it is intended that such affiliate be spun off to the shareholders
          of the Servicer, such affiliate have a GAAP net worth of at least $10,000,000
          and (iii) such affiliate shall deliver to the Owner a certification pursuant
          to
          which such affiliate shall agree to be bound by the terms and conditions
          of this
          Agreement and shall certify that such affiliate is a Fannie Mae and Freddie
          Mac
          approved servicer in good standing.

         

         

        
 

        ARTICLE
          IX

         

        DEFAULT 

         

        Section
          9.01 Events
          of Default.

        In
          case
          one or more of the following Events of Default by the Servicer shall occur
          and
          be continuing, that is to say:

        

        (i) any
          failure by the Servicer to remit to the Owner any payment required to be
          made
          under the terms of this Agreement which continues unremedied for a period
          of
          three (3) Business Days after written notice thereof
          (it
          being understood that this subparagraph shall not affect Servicer's obligation
          pursuant to Section 5.01 to pay default interest on any remittance received
          by
          the Owner after the Business Day on which such payment was due); or

        

        (ii) any
          failure on the part of the Servicer duly to observe or perform in any material
          respect any other of the covenants or agreements on the part of the Servicer
          set
          forth in this Agreement, the breach of which has a material adverse effect
          and
          which continue unremedied for a period of sixty days (except that such
          number of
          days shall be fifteen in the case of a failure to pay any premium for any
          insurance policy required to be maintained under this Agreement and such
          failure
          shall be deemed to have a material adverse effect) after the date on which
          written notice of such failure, requiring the same to be remedied, shall
          have
          been given to the Servicer by the Owner; or

        

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

        

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

        

        (v) the
          Servicer shall admit in writing its inability to pay its debts generally
          as they
          become due, file a petition to take advantage of any applicable insolvency
          or
          reorganization statute, make an assignment for the benefit of its creditors,
          or
          voluntarily suspend payment of its obligations; or

        

        (vi) the
          Servicer ceases to be approved by either Fannie Mae or Freddie Mac (to
          the
          extent such entities are then operating in a capacity similar to that in
          which
          they operate on the Closing Date) as a mortgage loan servicer for more
          than
          thirty days to the extent such entities perform similar functions;
          or

        

        (vii) the
          Servicer attempts to assign its right to servicing compensation hereunder
          or the
          Servicer attempts, without the consent of the Owner, to sell or otherwise
          dispose of all or substantially all of its property or assets or to assign
          this
          Agreement or the servicing responsibilities hereunder or to delegate its
          duties
          hereunder or any portion thereof except as otherwise permitted
          herein.

         

        then,
          and
          in each and every such case, so long as an Event of Default shall not have
          been
          remedied, the Owner, by notice in writing to the Servicer may, in addition
          to
          whatever rights the Owner may have under Section 8.01 and at law or equity
          to
          damages, including injunctive relief and specific performance, terminate
          all the
          rights and obligations of the Servicer under this Agreement and in and
          to the
          Mortgage Loans and the proceeds thereof without compensating the Servicer
          for
          the same. On or after the receipt by the Servicer of such written notice,
          all
          authority and power of the Servicer under this Agreement, whether with
          respect
          to the Mortgage Loans or otherwise, shall pass to and be vested in the
          successor
          appointed pursuant to Section 11.01. Upon written request from the Owner,
          the
          Servicer shall prepare, execute and deliver, any and all documents and
          other
          instruments, place in such successor's possession all Servicing Files,
          and do or
          accomplish all other acts or things necessary or appropriate to effect
          the
          purposes of such notice of termination, whether to complete the transfer
          and
          endorsement or assignment of the Mortgage Loans and related documents,
          or
          otherwise, at the Servicer's sole expense. The Servicer agrees to cooperate
          with
          the Owner and such successor in effecting the termination of the Servicer's
          responsibilities and rights hereunder, including, without limitation, the
          transfer to such successor for administration by it of all cash amounts
          which
          shall at the time be credited by the Servicer to the Custodial Account
          or Escrow
          Account or thereafter received with respect to the Mortgage Loans or any
          REO
          Property.

        

        
          	 	
                  Section
                    9.02 Waiver
                    of Defaults.

                

        

        

        The
          Owner
          may waive only by written notice any default by the Servicer in the performance
          of its obligations hereunder and its consequences. Upon any such waiver
          of a
          past default, such default shall cease to exist, and any Event of Default
          arising therefrom shall be deemed to have been remedied for every purpose
          of
          this Agreement. No such waiver shall extend to any subsequent or other
          default
          or impair any right consequent thereon except to the extent expressly so
          waived
          in writing.

         

        
 

        ARTICLE
          X

        

        TERMINATION

        

        Section
          10.01 Termination.

        

        The
          respective obligations and responsibilities of the Servicer shall terminate
          upon: (i) the later of the final payment or other liquidation (or any advance
          with respect thereto) of the last Mortgage Loan or the disposition of all
          REO
          Property and the remittance of all funds due hereunder; or (ii) by mutual
          consent of the Servicer and the Owner in writing; or (iii) termination
          by the
          Owner pursuant to Section 9.01. Simultaneously with any such termination
          and the
          transfer of servicing hereunder, the Servicer shall be entitled to be reimbursed
          for any outstanding Servicing Advances and Monthly Advances. 

        

        Section
          10.02 Removal
          of Mortgage Loans from Inclusion under this Agreement upon a Whole
 Loan
          Transfer or a Pass-Through Transfer.

        

        The
          Servicer acknowledges and the Owner agrees that with respect to some or
          all of
          the Mortgage Loans, the Owner may effect either (1) one or more Whole Loan
          Transfers, or (2) one or more Pass-Through Transfers.

        

        The
          Servicer shall cooperate with the Owner in connection with any Whole Loan
          Transfer or Pass-Through Transfer contemplated by the Owner pursuant to
          this
          Section. In connection therewith, and without limitation, the Owner shall
          deliver any reconstitution agreement or other document related to the Whole
          Loan
          Transfer or Pass-Through Transfer to the Servicer at least 15 days prior
          to such
          transfer (or 30 days if such transfer is to take place in March, June,
          September
          or December) and the Servicer shall execute any such reconstitution agreement
          which contains provisions substantially similar to those herein or otherwise
          reasonably acceptable to the Owner and the Servicer and which restates
          the
          representations and warranties contained in Article III as of the date
          of
          transfer (except to the extent any such representation or warranty is not
          accurate on such date). 

        

        With
          respect to each Whole Loan Transfer or Pass--Through Transfer, as the case
          may
          be, effected by the Owner, Owner (i) shall reimburse Servicer for all reasonable
          out-of-pocket third party costs and expenses related thereto and (ii) shall
          pay
          Servicer a reasonable amount representing time and effort expended by Servicer
          related thereto (which amount shall be reasonably agreed upon by Servicer
          and
          Owner prior to the expenditure of such time and effort); provided,
          however,
          that
          for each Whole Loan Transfer and/or Pass--Through Transfer, the sum of
          such
          amounts described in subsections (i) and (ii) above shall in no event exceed
          $5,000. For purposes of this paragraph, all Whole Loan Transfers and/or
          Pass--Through Transfers made to the same entity within the same accounting
          cycle
          shall be considered one Whole Loan Transfer or Pass--Through
          Transfer.

        

        All
          Mortgage Loans not sold or transferred pursuant to a Whole Loan Transfer
          or
          Pass-Through Transfer shall be subject to this Agreement and shall continue
          to
          be serviced in accordance with the terms of this Agreement and with respect
          thereto this Agreement shall remain in full force and effect.

        

         

         

        ARTICLE
          XI

        

        MISCELLANEOUS
          PROVISIONS

        

        Section
          11.01 Successor
          to the Servicer.

        

        Prior
          to
          termination of the Servicer's responsibilities and duties under this Agreement
          pursuant to Sections 8.04, 9.01 or 10.01(ii), the Owner shall (i) succeed
          to and
          assume all of the Servicer's responsibilities, rights, duties and obligations
          under this Agreement, or (ii) appoint a successor having the characteristics
          set
          forth in Section 8.02 hereof and which shall succeed to all rights and
          assume
          all of the responsibilities, duties and liabilities of the Servicer under
          this
          Agreement prior to the termination of the Servicer's responsibilities,
          duties
          and liabilities under this Agreement. In connection with such appointment
          and
          assumption, the Owner may make such arrangements for the compensation of
          such
          successor out of payments on Mortgage Loans as the Owner and such successor
          shall agree. In the event that the Servicer's duties, responsibilities
          and
          liabilities under this Agreement should be terminated pursuant to the
          aforementioned sections, the Servicer shall discharge such duties and
          responsibilities during the period from the date it acquires knowledge
          of such
          termination until the effective date thereof with the same degree of diligence
          and prudence which it is obligated to exercise under this Agreement, and
          shall
          take no action whatsoever that might impair or prejudice the rights or
          financial
          condition of its successor. The resignation or removal of the Servicer
          pursuant
          to the aforementioned sections shall not become effective until a successor
          shall be appointed pursuant to this section and shall in no event relieve
          the
          Servicer of the representations and warranties made pursuant to Article
          III and
          the remedies available to the Owner under Section 8.01, it being understood
          and
          agreed that the provisions of such Article III and Section 8.01 shall be
          applicable to the Servicer notwithstanding any such resignation or termination
          of the Servicer, or the termination of this Agreement.

        

        Any
          successor appointed as provided herein shall execute, acknowledge and deliver
          to
          the Servicer and to the Owner an instrument accepting such appointment,
          whereupon such successor shall become fully vested with all the rights,
          powers,
          duties, responsibilities, obligations and liabilities of the Servicer,
          with like
          effect as if originally named as a party to this Agreement. Any termination
          or
          resignation of the Servicer or this Agreement pursuant to Section 8.04,
          9.01 or
          10.01 shall not affect any claims that the Owner may have against the Servicer
          arising prior to any such termination or resignation.

        

        The
          Servicer shall promptly deliver to the successor the funds in the Custodial
          Account and the Escrow Account and the Servicing Files and related documents
          and
          statements held by it hereunder and the Servicer shall account for all
          funds.
          The Servicer shall execute and deliver such instruments and do such other
          things
          all as may reasonably be required to more fully and definitely vest and
          confirm
          in the successor all such rights, powers, duties, responsibilities, obligations
          and liabilities of the Servicer. The successor shall make such arrangements
          as
          it may deem appropriate to reimburse the Servicer for unrecovered Servicing
          Advances which the successor retains hereunder and which would otherwise
          have
          been recovered by the Servicer pursuant to this Agreement but for the
          appointment of the successor servicer.

        

        Upon
          a
          successor's acceptance of appointment as such, the Servicer shall notify
          the
          Owner of such appointment.

        

        Section
          11.02 Amendment.

         

        This
          Agreement may be amended from time to time by the Servicer and the Owner
          by
          written agreement signed by the Servicer and the Owner.

        

        Section
          11.03 Recordation
          of Agreement.

        

        To
          the
          extent permitted by applicable law, this Agreement is subject to recordation
          in
          all appropriate public offices for real property records in all the counties
          or
          other comparable jurisdictions in which any of all 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 Owner at the Owner's
          expense
          on direction of the Owner accompanied by an opinion of counsel to the effect
          that such recordation materially and beneficially affects the interest
          of the
          Owner or is necessary for the administration or servicing the Mortgage
          Loans.

        

        Section
          11.04 Governing
          Law.

         

        THIS
          AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
          LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS
          OF LAWS. THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
          SHALL BE
          DETERMINED IN ACCORDANCE WITH SUCH LAWS.

        

        Section
          11.05 Notices.

        

        Any
          demands, notices or other communications permitted or required hereunder
          shall
          be in writing and shall be deemed conclusively to have been given if personally
          delivered at or mailed by registered mail, postage prepaid, and return
          receipt
          requested or transmitted by telecopier and confirmed by a similar mailed
          writing, as follows:

        

        (i) if
          to the
          Servicer:

        

        500
          Enterprise Road

        Horsham,
          Pennsylvania 19044

        Attention:
          Mr. Frank Ruhl

        Telecopier
          No.: (215) 682-3396

        

        (ii) if
          to the
          Owner:

        

        Mac
          Arthur Ridge II, 

        909
          Hidden Ridge Drive, Suite 200

        Irving,
          Texas 75038

        Attention:
          Mr. Edward Raice

        Telecopier
          No.: (972) 444-2810 

        

        or
          such
          other address as may hereafter be furnished to the other party by like
          notice.
          Any such demand, notice, or communication hereunder shall be deemed to
          have been
          received on the date delivered to or received at the premises of the address
          (as
          evidenced, in the case of registered or certified mail, by the date noted
          on the
          return receipt).

        

        Section
          11.06 Severability
          of Provisions.

        

        Any
          part,
          provision, representation or warranty of this Agreement which is prohibited
          or
          which is held to be void or unenforceable shall be ineffective to the extent
          of
          such prohibition or unenforceability without invalidating the remaining
          provisions hereof. Any part, provision, representation or warranty of this
          Agreement which is prohibited or unenforceable or is held to be void or
          unenforceable in any jurisdiction shall be ineffective, as to such jurisdiction,
          to the extent of such prohibition or unenforceability without invalidating
          the
          remaining provisions hereof, and any such prohibition or unenforceability
          in any
          jurisdiction as to any Mortgage Loan shall not invalidate or render
          unenforceable such provision in any other jurisdiction. To the extent permitted
          by applicable law, the parties hereto waive any provision of law which
          prohibits
          or renders void or unenforceable any provision hereof. If the invalidity
          of any
          part, provision, representation or warranty of this Agreement shall deprive
          any
          party of the economic benefit intended to be conferred by this Agreement,
          the
          parties shall negotiate, in good faith, to develop a structure the economic
          effect of which is nearly as possible the same as the economic effect of
          this
          Agreement without regard to such invalidity.

        

        Section
          11.07 Exhibits.

         

        The
          exhibits to this Agreement are hereby incorporated and made a part hereof
          and
          are an integral part of this Agreement.

        

        Section
          11.08 General
          Interpretive Principles.

        

        For
          purposes of this Agreement, except as otherwise expressly provided or unless
          the
          context otherwise requires:

        

        (i) the
          terms
          defined in this Agreement have the meanings assigned to them in this Agreement
          and include the plural as well as the singular, and the use of any gender
          herein
          shall be deemed to include the other gender;

        

        (ii) accounting
          terms not otherwise defined herein have the meanings assigned to them in
          accordance with generally accepted accounting principles;

        

        (iii) references
          herein to "Articles," "Sections," "Subsections," "Paragraphs," and other
          subdivisions without reference to a document are to designated Articles,
          Sections, Subsections, Paragraphs and other subdivisions of this
          Agreement;

        

        (iv) a
          reference to a Subsection without further reference to a Section is a reference
          to such Subsection as contained in the same Section in which the reference
          appears, and this rule shall also apply to Paragraphs and other
          subdivisions;

        

        (v) the
          words
          "herein," "hereof," "hereunder" and other words of similar import refer
          to this
          Agreement as a whole and not to any particular provision; and 

        

        (vi) the
          term
          "include" or "including" shall mean without limitation by reason of
          enumeration.

        

        Section
          11.09 Reproduction
          of Documents.

        

        This
          Agreement and all documents relating hereto, including, without limitation,
          (i)
          consents, waivers and modifications which may hereafter be executed, (ii)
          documents received by any party at the closing, and (iii) financial statements,
          certificates and other information previously or hereafter furnished, may
          be
          reproduced by any photographic, photostatic, microfilm, micro-card, miniature
          photographic or other similar process. The parties agree that any such
          reproduction shall be admissible in evidence as the original itself in
          any
          judicial or administrative proceeding, whether or not the original is in
          existence and whether or not such reproduction was made by a party in the
          regular course of business, and that any enlargement, facsimile or further
          reproduction of such reproduction shall likewise be admissible in
          evidence.

        

        Section
          11.10 Confidentiality
          of Information.

        

        Each
          party recognizes that, in connection with this Agreement, it may become
          privy to
          non-public information regarding the financial condition, operations and
          prospects of the other party. Except as required to be disclosed by law,
          each
          party agrees to keep all non-public information regarding the other party
          strictly confidential, and to use all such information solely in order
          to
          effectuate the purpose of this Agreement.

        

        Section
          11.11 Recordation
          of Assignments of Mortgage.

        

        To
          the
          extent permitted by applicable law, each of the Assignments of Mortgage
          is
          subject to recordation in all appropriate public offices for real property
          records in all the counties or 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
          Servicer at the Owner's expense.

        

        Section
          11.12 Assignment
          by the Owner.

        

        The
          Owner
          shall have the right, without the consent of the Servicer hereof, to assign,
          in
          whole or in part, its interest under this Agreement with respect to some
          or all
          of the Mortgage Loans, and designate any person to exercise any rights
          of the
          Owner hereunder, by executing an assignment and assumption agreement reasonably
          acceptable to the Servicer and the assignee or designee shall accede to
          the
          rights and obligations hereunder of the Owner with respect to such Mortgage
          Loans. In no event shall Owner sell a partial interest in any Mortgage
          Loan. All
          references to the Owner in this Agreement shall be deemed to include its
          assignees or designees. It is understood and agreed between the Owners
          and the
          Servicer that no more than five (5) Persons shall have the right of owner
          under
          this Agreement at any one time.

        

        Section
          11.13 No
          Partnership.

        

        Nothing
          herein contained shall be deemed or construed to create a co-partnership
          or
          joint venture between the parties hereto and the services of the Servicer
          shall
          be rendered as an independent contractor and not as agent for
          Owner.

        

        Section
          11.14 Execution;
          Successors and Assigns.

        

        This
          Agreement may be executed in one or more counterparts and by the different
          parties hereto on separate counterparts, each of which, when so executed,
          shall
          be deemed to be an original; such counterparts, together, shall constitute
          one
          and the same agreement. Subject to Section 8.04, this Agreement shall inure
          to
          the benefit of and be binding upon the Servicer and the Owner and their
          respective successors and assigns.

        

        Section
          11.15 Entire
          Agreement.

        

        Each
          of
          the Servicer and the Owner acknowledge that no representations, agreements
          or
          promises were made to it by the other party or any of its employees other
          than
          those representations, agreements or promises specifically contained herein.
          This Agreement sets forth the entire understanding between the parties
          hereto
          and shall be binding upon all successors of both parties.

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the Servicer and the Owner have caused their names to
          be signed
          hereto by their respective officers thereunto duly authorized as of the
          date and
          year first above written.

        

        

        GMAC
          MORTGAGE CORPORATION

        Servicer

        

        By:
          ________________________________________

        Name:
          

        Title:

        

        

        EMC
          MORTGAGE CORPORATION

        Owner

        

        By:
          ________________________________________     

        

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          A

        

        MORTGAGE
          LOAN SCHEDULE

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          B

        

        CUSTODIAL
          ACCOUNT LETTER AGREEMENT

        (date)

        

        

        To:______________________

        _________________________

        _________________________

        (the
          "Depository")

        

        As
          "Servicer" under the Servicing Agreement, dated as of  ,
          (the
          "Agreement"), we hereby authorize and request you to establish an account,
          as a
          Custodial Account pursuant to Section 4.04 of the Agreement, to be designated
          as
          "[Servicer] Custodial Account, in trust for [Owner], Owner of Whole Loan
          Mortgages, and various Mortgagors." All deposits in the account shall be
          subject
          to withdrawal therefrom by order signed by the Servicer. You may refuse
          any
          deposit which would result in violation of the requirement that the account
          be
          fully insured as described below. This letter is submitted to you in duplicate.
          Please execute and return one original to us.

         

        By:____________________

        Name:__________________

        Title:___________________

        

        The
          undersigned, as "Depository", hereby certifies that the above described
          account
          has been established under Account Number __________, at the office of
          the
          depository indicated above, and agrees to honor withdrawals on such account
          as
          provided above. The full amount deposited at any time in the account will
          be
          insured up to applicable limits by the Federal Deposit Insurance Corporation
          through the Bank Insurance Fund or the Savings Association Insurance Fund
          or
          will be invested in Permitted Investments as defined in the
          Agreement.

        

        [                              
          ]

        (name
          of
          Depository)

         

        By:____________________

        Name:__________________

        Title:___________________

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          C

        

        ESCROW
          ACCOUNT LETTER AGREEMENT

        

        (date)

        

        To:___________________________

        ______________________________

        ______________________________

        (the
          "Depository")

        

        As
          "Servicer" under the Servicing Agreement, dated as of  
          (the
          "Agreement"), we hereby authorize and request you to establish an account,
          as an
          Escrow Account pursuant to Section 4.06 of the Agreement, to be designated
          as
          "[Servicer] Escrow Account, in trust for [Owner], Owner of Whole Loan Mortgages,
          and various Mortgagors." All deposits in the account shall be subject to
          withdrawal therefrom by order signed by the Servicer. You may refuse any
          deposit
          which would result in violation of the requirement that the account be
          fully
          insured as described below. This letter is submitted to you in duplicate.
          Please
          execute and return one original to us.

        
 

        By:____________________

        Name:__________________

        Title:___________________

        

        The
          undersigned, as "Depository", hereby certifies that the above described
          account
          has been established under Account Number __________, at the office of
          the
          depository indicated above, and agrees to honor withdrawals on such account
          as
          provided above. The full amount deposited at any time in the account will
          be
          insured up to applicable limits by the Federal Deposit Insurance Corporation
          through the Bank Insurance Fund or the Savings Association Insurance Fund
          or
          will be invested in Permitted Investments as defined in the
          Agreement.

        

        [                              
           ]

        (name
          of
          Depository)

         

        By:____________________

        Name:__________________

        Title:___________________

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          D

        

        REQUEST
          FOR RELEASE

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          E

        

        LOAN
          LEVEL SCHEDULED-SCHEDULED

        REMITTANCE
          TAPE LAYOUT

        

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      

        Amendment
          No. 1 to the Servicing Agreement

        

        This
          is
          Amendment No. 1 dated October 1, 2001 to that certain Servicing Agreement
          (the
“Agreement”) dated
          as
          of May 1, 2001 between
          EMC MORTGAGE CORPORATION, as Owner
          and
          GMAC MORTGAGE CORPORATION, as Servicer.

        

        W
          I T N E
          S S E T H :

        

        WHEREAS,
          the Owner is the owner of the Mortgage Loans and the Servicer is the servicer
          of
          the Mortgage Loans; and

        

        WHEREAS,
          the Owner and the Servicer wish to amend the Agreement;

        

        NOW,
          THEREFORE, in consideration of the mutual agreements hereinafter set forth,
          and
          for other good and valuable consideration, the receipt and adequacy of
          which is
          hereby acknowledged, the Purchaser and the Seller agree that the following
          amendment shall be made to the Agreement: 

        

        (a)
          The
          following shall replace (i)(a), (b) and (c) in the first paragraph of Section
          5.01: 

        

        “(i)
          all
          amounts credited to the Custodial Account as of the close of business on
          the
          related preceding Determination Date, except Principal Prepayments received
          on
          or after the first day of the month in which the Remittance Date occurs
          shall be
          remitted to the Owner on the next following Remittance Date,”

        

        (b)
          Capitalized terms used herein and not defined shall have the meanings set
          forth
          in the Agreement.

        

        (c)
          THIS
          AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
          LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS
          OF LAWS. THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
          SHALL BE
          DETERMINED IN ACCORDANCE WITH SUCH LAWS.

        

        (d)
          Except as such amendments are made herein, the Agreement shall remain in
          full
          force and effect.

        

        [SIGNATURES
          COMMENCE ON THE FOLLOWING PAGE]

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        IN
          WITNESS WHEREOF, the Owner and the Servicer have caused their names to
          be signed
          hereto by their respective officers thereunto duly authorized as of the
          day and
          year first above written.

         

        
          	
                  EMC
                    MORTGAGE CORPORATION

                      Owner

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 
	 
	
                  GMAC
                    MORTGAGE CORPORATION

                      Servicer

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Amendment
          No. 2 to the Servicing Agreement

        

        This
          is
          Amendment No. 1 dated July 31, 2002 to that certain Servicing Agreement
          (the
“Agreement”) dated
          as
          of May 1, 2001 between
          EMC MORTGAGE CORPORATION, as Owner
          and
          GMAC MORTGAGE CORPORATION, as Servicer.

        

        W
          I T N E
          S S E T H :

        

        WHEREAS,
          the Owner is the owner of the Mortgage Loans and the Servicer is the servicer
          of
          the Mortgage Loans; and

        

        WHEREAS,
          the Owner and the Servicer wish to amend the Agreement;

        

        NOW,
          THEREFORE, in consideration of the mutual agreements hereinafter set forth,
          and
          for other good and valuable consideration, the receipt and adequacy of
          which is
          hereby acknowledged, the Purchaser and the Seller agree that the following
          amendment shall be made to the Agreement: 

        

          
           (a)  The
          definition of “Permitted Investments” in Section 1.01 of the Agreement is
          amended by deleting (viii) in such definition.

        

        (b)
          Capitalized terms used herein and not defined shall have the meanings set
          forth
          in the Agreement.

        

        (c)
          THIS
          AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
          LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS
          OF LAWS. THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
          SHALL BE
          DETERMINED IN ACCORDANCE WITH SUCH LAWS.

        

        (d)
          Except as such amendments are made herein, the Agreement shall remain in
          full
          force and effect.

        

        [SIGNATURES
          COMMENCE ON THE FOLLOWING PAGE]

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        IN
          WITNESS WHEREOF, the Owner and the Servicer have caused their names to
          be signed
          hereto by their respective officers thereunto duly authorized as of the
          day and
          year first above written.

         

        
          	
                  EMC
                    MORTGAGE CORPORATION

                      Owner

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 
	 
	
                  GMAC
                    MORTGAGE CORPORATION

                      Servicer

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 

        

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        S-2

       

      
        ASSIGNMENT,
          ASSUMPTION AND RECOGNITION AGREEMENT

         

        This
          Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) is made
          and entered into as of August 30, 2006 (the “Closing Date”), among EMC Mortgage
          Corporation (the “Assignor”), Citibank, N.A., not individually but solely as
          trustee for the holders of SACO I Trust 2006-9, Mortgage Pass-Through
          Certificates, Series 2006-9 (the “Assignee”) and GMAC Mortgage Corporation (the
“Company”).

         

        Whereas,
          the Assignor purchased mortgage loans from the Company (the “Mortgage Loans”)
          pursuant to that certain Mortgage Loan Purchase Agreement, dated as of
          February
          1, 2005, between the Assignor and the Company (the “MLPA”) and that certain
          Assignment, Assumption and Recognition Agreement dated June 29, 2006 between
          the
          Assignor, the Company and Residential Funding Corporation (the “Assignment
          Agreement”, together with the MLPA, the “Purchase Agreement”);

        

        Whereas,
          the Assignor and the Company entered into that certain Servicing Agreement,
          dated as of May 1, 2001, as amended by Amendment No. 1, dated as of October
          1,
          2001, Amendment No. 2, dated as of July 31, 2002 and Amendment No. 3, dated
          as
          of December 20, 2005 (as amended, the “Servicing Agreement”), pursuant to which
          the Company agreed to service the Mortgage Loans.

        

        In
          consideration of the mutual promises and agreements contained herein, and
          for
          other good and valuable consideration, the receipt and sufficiency of which
          are
          hereby acknowledged, the parties hereto agree that the Mortgage Loans listed
          on
Attachment
          1
          annexed
          hereto (the “Assigned Loans”) shall be subject to the terms of this AAR
          Agreement. Any capitalized term used and not otherwise defined herein shall
          have
          the meaning assigned to such term in the Servicing Agreement.

        

        Assignment
          and Assumption

         

        1.  Except
          as
          expressly provided for herein, the Assignor hereby grants, transfers and
          assigns
          to the Assignee all of its right, title and interest in, to and under (a)
          the
          Assigned Loans and (b) as it relates to the Assigned Loans, the Servicing
          Agreement. Notwithstanding anything to the contrary contained herein, the
          Assignor is not assigning to the Assignee any of its right, title and interest
          in, to and under the Servicing Agreement with respect to any other mortgage
          loan
          other than the Assigned Loans. Except as is otherwise expressly provided
          herein,
          the Assignor makes no representations, warranties or covenants to the Assignee
          and the Assignee acknowledges that the Assignor has no obligations to the
          Assignee under the terms of the Servicing Agreement or otherwise relating
          to the
          transaction contemplated herein (including, but not limited to, any obligation
          to indemnify the Assignee).

         

        Assignor
          acknowledges and agrees that upon execution of this AAR Agreement, the
          Assignee
          shall become the “Owner” under the Servicing Agreement, and all representations,
          warranties and covenants by the “Servicer” to the “Owner” under the Servicing
          Agreement including, but not limited to, the rights to receive indemnification,
          shall accrue to Assignee by virtue of this AAR Agreement.

         

        Representations,
          Warranties and Covenants

         

        2.  Assignor
          warrants and represents to, and covenants with, Assignee and Company as
          of the
          date hereof that:

         

        
          	a.  	
                  Attached
                    hereto as Attachment
                    2
                    is
                    a true and correct copy of the Servicing Agreement, which Servicing
                    Agreement is in full force and effect as of the date hereof and
                    the
                    provisions of which have not been waived, amended or modified
                    in any
                    respect, nor has any notice of termination been given
                    thereunder;

                

        

         

        
          	b.  	
                  Assignor
                    is the lawful owner of the Assigned Loans with full right to
                    transfer the
                    Assigned Loans and any and all of its interests, rights and obligations
                    under the Servicing Agreement as they relate to the Assigned
                    Loans, free
                    and clear from any and all claims and encumbrances; and upon
                    the transfer
                    of the Assigned Loans to Assignee as contemplated herein, Assignee
                    shall
                    have good title to each and every Assigned Loan, as well as any
                    and all of
                    Assignee’s interests, rights and obligations under the Servicing Agreement
                    as they relate to the Assigned Loans, free and clear of any and
                    all liens,
                    claims and encumbrances;

                

        

         

        
          	c.  	
                  There
                    are no offsets, counterclaims or other defenses available to
                    the Company
                    with respect to the Assigned Loans, the Purchase Agreement or
                    the
                    Servicing Agreement;

                

        

         

        
          	d.  	
                  Assignor
                    has no knowledge of, and has not received notice of, any waivers
                    under, or
                    any modification of, any Assigned
                    Loan;

                

        

         

        
          	e.  	
                  Assignor
                    is duly organized, validly existing and in good standing under
                    the laws of
                    the jurisdiction of its incorporation, and has all requisite
                    power and
                    authority to acquire, own and sell the Assigned
                    Loans;

                

        

         

        
          	f.  	
                  Assignor
                    has full corporate power and authority to execute, deliver and
                    perform its
                    obligations under this AAR Agreement, and to consummate the transactions
                    set forth herein. The consummation of the transactions contemplated
                    by
                    this AAR Agreement is in the ordinary course of Assignor’s business and
                    will not conflict with, or result in a breach of, any of the
                    terms,
                    conditions or provisions of Assignor’s charter or by-laws or any legal
                    restriction, or any material agreement or instrument to which
                    Assignor is
                    now a party or by which it is bound, or result in the violation
                    of any
                    law, rule, regulation, order, judgment or decree to which Assignor
                    or its
                    property is subject. The execution, delivery and performance
                    by Assignor
                    of this AAR Agreement and the consummation by it of the transactions
                    contemplated hereby, have been duly authorized by all necessary
                    corporate
                    action on part of Assignor. This AAR Agreement has been duly
                    executed and
                    delivered by Assignor and, upon the due authorization, execution
                    and
                    delivery by Assignee and the parties hereto, will constitute
                    the valid and
                    legally binding obligation of Assignor enforceable against Assignor
                    in
                    accordance with its terms except as enforceability may be limited
                    by
                    bankruptcy, reorganization, insolvency, moratorium or other similar
                    laws
                    now or hereafter in effect relating to creditors’ rights generally, and by
                    general principles of equity regardless of whether enforceability
                    is
                    considered in a proceeding in equity or at law;
                    and

                

        

         

        
          	g.  	
                  No
                    consent, approval, order or authorization of, or declaration,
                    filing or
                    registration with, any governmental entity is required to be
                    obtained or
                    made by Assignor in connection with the execution, delivery or
                    performance
                    by Assignor of this AAR Agreement, or the consummation by it
                    of the
                    transactions contemplated hereby. Neither Assignor nor anyone
                    acting on
                    its behalf has offered, transferred, pledged, sold or otherwise
                    disposed
                    of the Assigned Loans or any interest in the Assigned Loans,
                    or solicited
                    any offer to buy or accept a transfer, pledge or other disposition
                    of the
                    Assigned Loans, or any interest in the Assigned Loans or otherwise
                    approached or negotiated with respect to the Assigned Loans,
                    or any
                    interest in the Assigned Loans with any Person in any manner,
                    or made any
                    general solicitation by means of general advertising or in any
                    other
                    manner, or taken any other action which would constitute a distribution
                    of
                    the Assigned Loans under the Securities Act of 1933, as amended
                    (the “1933
                    Act”)
                    or
                    which would render the disposition of the Assigned Loans a violation
                    of
                    Section 5 of the 1933 Act or require registration pursuant
                    thereto.

                

        

         

        3.  The
          Assignee warrants and represents to, and covenants with, the Assignor and
          the
          Company as of the date hereof that:

         

        
          	a.  	
                  Assignee
                    is duly organized, validly existing and in good standing under
                    the laws of
                    the jurisdiction of its organization and has all requisite power
                    and
                    authority to hold the Assigned Loans as trustee on behalf of
                    the holders
                    of SACO I Trust 2006-9, Mortgage Pass-Through Certificates, Series
                    2006-9;

                

        

         

        
          	b.  	
                  Assignee
                    has full corporate power and authority to execute, deliver and
                    perform
                    under this AAR Agreement, and to consummate the transactions
                    set forth
                    herein. The consummation of the transactions contemplated by
                    this AAR
                    Agreement is in the ordinary course of Assignee’s business and will not
                    conflict with, or result in a breach of, any of the terms, conditions
                    or
                    provisions of Assignee’s charter or by-laws or any legal restriction, or
                    any material agreement or instrument to which Assignee is now
                    a party or
                    by which it is bound, or result in the violation of any law,
                    rule,
                    regulation, order, judgment or decree to which Assignee or its
                    property is
                    subject. The execution, delivery and performance by Assignee
                    of this AAR
                    Agreement and the consummation by it of the transactions contemplated
                    hereby, have been duly authorized by all necessary corporate
                    action on
                    part of Assignee. This AAR Agreement has been duly executed and
                    delivered
                    by Assignee and, upon the due authorization, execution and delivery
                    by
                    Assignor and the parties hereto, will constitute the valid and
                    legally
                    binding obligation of Assignee enforceable against Assignee in
                    accordance
                    with its terms except as enforceability may be limited by bankruptcy,
                    reorganization, insolvency, moratorium or other similar laws
                    now or
                    hereafter in effect relating to creditors’ rights generally, and by
                    general principles of equity regardless of whether enforceability
                    is
                    considered in a proceeding in equity or at
                    law;

                

        

         

        
          	c.  	
                  No
                    consent, approval, order or authorization of, or declaration,
                    filing or
                    registration with, any governmental entity is required to be
                    obtained or
                    made by Assignee in connection with the execution, delivery or
                    performance
                    by Assignee of this AAR Agreement, or the consummation by it
                    of the
                    transactions contemplated hereby; and

                

        

         

        
          	d.  	
                  The
                    Assignee assumes all of the rights of the Owner under the Servicing
                    Agreement with respect to the Assigned Loans other than the right
                    to
                    enforce the obligations of the Servicer under the Servicing
                    Agreement.

                

        

         

        4.  Company
          warrants and represents to, and covenants with, Assignee and Assignor,
          as of the
          date hereof, that:

         

        
          	a.  	
                  Attached
                    hereto as Attachment
                    2
                    is
                    a true and correct copy of the Servicing Agreement, which agreement
                    is in
                    full force and effect as of the date hereof and the provisions
                    of which
                    have not been waived, amended or modified in any respect, nor
                    has any
                    notice of termination been given
                    thereunder;

                

        

         

        
          	b.  	
                  Company
                    is duly organized, validly existing and in good standing under
                    the laws of
                    the jurisdiction of its incorporation, and has all requisite
                    power and
                    authority to service the Assigned Loans and otherwise to perform
                    its
                    obligations under the Servicing
                    Agreement;

                

        

         

        
          	c.  	
                  Company
                    has full corporate power and authority to execute, deliver and
                    perform its
                    obligations under this AAR Agreement, and to consummate the transactions
                    set forth herein. The consummation of the transactions contemplated
                    by
                    this AAR Agreement is in the ordinary course of Company’s business and
                    will not conflict with, or result in a breach of, any of the
                    terms,
                    conditions or provisions of Company’s articles of incorporation or any
                    legal restriction, or any material agreement or instrument to
                    which
                    Company is now a party or by which it is bound, or result in
                    the violation
                    of any law, rule, regulation, order, judgment or decree to which
                    Company
                    or its property is subject. The execution, delivery and performance
                    by
                    Company of this AAR Agreement and the consummation by it of the
                    transactions contemplated hereby, have been duly authorized by
                    all
                    necessary corporate action on part of Company. This AAR Agreement
                    has been
                    duly executed and delivered by Company, and, upon the due authorization,
                    execution and delivery by Assignor and Assignee, will constitute
                    the valid
                    and legally binding obligation of Company, enforceable against
                    Company in
                    accordance with its terms except as enforceability may be limited
                    by
                    bankruptcy, reorganization, insolvency, moratorium or other similar
                    laws
                    now or hereafter in effect relating to creditors’ rights generally, and by
                    general principles of equity regardless of whether enforceability
                    is
                    considered in a proceeding in equity or at
                    law;

                

        

         

        
          	d.  	
                  No
                    consent, approval, order or authorization of, or declaration,
                    filing or
                    registration with, any governmental entity is required to be
                    obtained or
                    made by Company in connection with the execution, delivery or
                    performance
                    by Company of this AAR Agreement, or the consummation by it of
                    the
                    transactions contemplated hereby; 

                

        

         

        
          	e.  	
                  Company
                    shall establish a Custodial Account and an Escrow Account under
                    the
                    Servicing Agreement in favor of Assignee with respect to the
                    Assigned
                    Loans separate from the Custodial Account and Escrow Account
                    previously
                    established under the Servicing Agreement in favor of Assignor;
                    

                

        

         

        
          	f.  	
                  Pursuant
                    to Section 10.02 of the Servicing Agreement, the Company hereby
                    restates
                    the representations and warranties set forth in Article III of
                    the
                    Servicing Agreement with respect to the Company and the Assigned
                    Loans as
                    of the date hereof; and

                

        

         

        
          	g.  	
                  Neither
                    this AAR Agreement nor any certification, statement, report or
                    other
                    agreement, document or instrument furnished or to be furnished
                    by the
                    Company pursuant to this AAR Agreement contains or will contain
                    any
                    materially untrue statement of fact or omits or will omit to
                    state a fact
                    necessary to make the statements contained therein not
                    misleading.

                

        

         

        5.  Company
          warrants and represents to, and covenants with, Assignor and Bear Stearns
          Asset
          Backed Securities I LLC (“BSABS I”) as of the date hereof:

         

        
          	a.  	
                  Company
                    is not aware and has not received notice that any default, early
                    amortization or other performance triggering event has occurred
                    as to any
                    other securitization due to any act or failure to act of the
                    Company;

                

        

         

        
          	b.  	
                  No
                    material noncompliance with the applicable servicing criteria
                    with respect
                    to other securitizations of residential mortgage loans involving
                    the
                    Company as servicer has been disclosed or reported by the
                    Company;

                

        

         

        
          	c.  	
                  Company
                    has not been terminated as servicer in a residential mortgage
                    loan
                    securitization, either due to a servicing default or to application
                    of a
                    servicing performance test or
                    trigger;

                

        

         

        
          	d.  	
                  No
                    material changes to the Company’s policies or procedures with respect to
                    the servicing function it will perform under the Servicing Agreement
                    and
                    this AAR Agreement for mortgage loans of a type similar to the
                    Assigned
                    Loans have occurred during the three-year period immediately
                    preceding the
                    date hereof;

                

        

         

        
          	e.  	
                  There
                    are no aspects of the Company’s financial condition that could have a
                    material adverse effect on the performance by the Company of
                    its servicing
                    obligations under the Servicing Agreement and this AAR
                    Agreement;

                

        

         

        
          	f.  	
                  There
                    are no material legal or governmental proceedings pending (or
                    known to be
                    contemplated) against the Company, any Subservicer or any third-party
                    originator; and

                

        

         

        
          	g.  	
                  There
                    are no affiliations, relationships or transactions relating to
                    the Company
                    or any Subservicer with respect to this Securitization Transaction
                    and any
                    party thereto of a type described in Item 1119 of Regulation
                    AB.

                

        

         

        Notwithstanding
          anything to the contrary in the Agreement, the Company shall (or shall
          cause any
          Third-Party Originator to) (i) immediately notify Assignor and BSABS I
          in
          writing of (A) legal proceedings pending against the Company, or proceedings
          known to be contemplated by governmental authorities against the Company
          which
          in the judgment of the Company would be, in each case, material to purchasers
          of
          securities backed by the Assigned Loans, (B) any affiliations or relationships
          of the type described in Item 1119(b) of Regulation AB that develop following
          the date hereof between the Company and any of the above listed parties
          or other
          parties identified in writing by the Assignor or BSABS I with respect to
          the
          Securitization Transaction and (ii) provide to the Assignor and BSABS I
          a
          description of such proceedings, affiliations or relationships.

        

        Each
          such
          notice/update should be sent to the Assignor by e-mail to
          regABnotifications@bear.com. Additionally, all such notifications, other
          than
          those pursuant to (i)(A) above, should be sent to:

        

        EMC
          Mortgage Corporation

        2780
          Lake
          Vista Drive

        Lewisville,
          TX 75067-3884

        Attention:
          Conduit Seller Approval Dept.

        Facsimile:
          (214) 626-3751

        Email:
          sellerapproval@bear.com

        

        With
          a
          copy to:

        

        Bear,
          Stearns & Co. Inc.

        383
          Madison Avenue, 3rd Floor

        New,
          York, NY 10179

        Attention:
          Global Credit Administration

        Facsimile:
          (212) 272-6564

        

        Notifications
          pursuant to (i)(A) above should be sent to: 

        

        EMC
          Mortgage Corporation

        Two
          Mac
          Arthur Ridge

        909
          Hidden Ridge Drive, Suite 200

        Irving,
          TX 75038

        Attention:
          Associate General Counsel for Loan Administration

        Facsimile:
          (972) 831-2555

        

        With
          copies to:

        

        Bear,
          Stearns & Co. Inc.

        383
          Madison Avenue, 3rd Floor

        New,
          York, NY 10179

        Attention:
          Global Credit Administration

        Facsimile:
          (212) 272-6564

        

        EMC
          Mortgage Corporation

        2780
          Lake
          Vista Drive

        Lewisville,
          TX 75067-3884

        Attention:
          Conduit Seller Approval Dept.

        Facsimile:
          (214) 626-3751

        Email:
          sellerapproval@bear.com

        

        6.  Assignor
          hereby agrees to indemnify and hold the Assignee (and its successors and
          assigns) harmless against any and all claims, losses, penalties, fines,
          forfeitures, legal fees and related costs, judgments, and any other costs,
          fees
          and expenses that Assignee (and its successors and assigns) may sustain
          in any
          way related to any breach of the representations or warranties of Assignor
          set
          forth in this AAR Agreement or the breach of any covenant or condition
          contained
          herein.

         

        7.  It
          is
          expressly understood and agreed by the parties hereto that insofar as this
          AAR
          Agreement is executed on behalf of the Assignee (i) this AAR Agreement
          is
          executed and delivered by Citibank, N.A., not in its individual capacity
          but
          solely as trustee under the Pooling and Servicing Agreement, dated as of
          August
          1, 2006 (the “Pooling and Servicing Agreement”), among the Assignor, BSABS I,
          Citibank, N.A., as trustee and LaSalle Bank National Association as securities
          administrator and master servicer, in the exercise of the powers and authority
          conferred and vested in it, (ii) each of the representations, undertakings
          and
          agreements herein made on the part of the Assignee is made and intended
          not as
          representations, warranties, covenants, undertakings and agreements by
          Citibank,
          N.A. in its individual capacity, but is made and intended for the purpose
          of
          binding only the Assignee, (iii) under no circumstances shall Citibank,
          N.A. in
          its individual capacity be personally liable for the payment of any indebtedness
          or expenses of the Assignee or be liable for the breach or failure of any
          obligation, representation, warranty or covenant made or undertaken by
          the
          Assignee under this AAR Agreement and (iv) any recourse against the Assignee
          in
          respect of any obligations it may have under or pursuant to the terms of
          this
          AAR Agreement shall be limited solely to the assets it may hold as trustee
          of
          SACO I Trust 2006-9.

         

        Recognition
          of Assignee

         

        8.  From
          and
          after the date hereof, Company shall recognize Assignee as owner of the
          Assigned
          Loans, and will service the Assigned Loans for Assignee as if Assignee
          and
          Company had entered into a separate servicing agreement for the servicing
          of the
          Assigned Loans in the form of the Servicing Agreement (as modified herein),
          the
          terms of which are incorporated herein by reference. The Company acknowledges
          that the Assigned Loans will be part of a REMIC, and will service the Assigned
          Loans in accordance with the Servicing Agreement but in no event in a manner
          that would (i) cause any REMIC to fail to qualify as a REMIC or (ii) result
          in
          the imposition of a tax upon any REMIC (including but not limited to the
          tax on
          prohibited transactions as defined in Section 860F(a)(2) of the Code and
          the tax
          on contributions to a REMIC set forth in Section 860G(d) of the Code).
          It is the
          intention of Assignor, Company and Assignee that this AAR Agreement shall
          be
          binding upon and for the benefit of the respective successors and assigns
          of the
          parties hereto. Neither Company nor Assignor shall amend or agree to amend,
          modify, waive, or otherwise alter any of the terms or provisions of the
          Servicing Agreement which amendment, modification, waiver or other alteration
          would in any way affect the Assigned Loans without the prior written consent
          of
          Assignee.

         

        [The
          Servicer shall indemnify and hold harmless each of the Owner, any Depositor
          and
          any Master Servicer and their respective officers, directors and affiliates
          from
          and against any losses, damages, penalties, fines, forfeitures, reasonable
          and
          necessary legal fees and related costs, judgments and other costs and expenses
          arising out of or based upon a breach of the obligations of the Servicer
          under
          Sections 6.04, 6.09, 10.02 or 11.16 or the Servicer’s negligence, bad faith or
          willful misconduct in connection therewith. In addition, the Servicer shall
          indemnify and hold harmless each of the Owner, any Depositor and any Master
          Servicer and their officers, directors and affiliates from and against
          any
          losses, damages, penalties, fines, forfeitures, reasonable and necessary
          legal
          fees and related costs, judgments and other costs and expenses arising
          out of or
          based upon (i) any untrue statement or alleged untrue statement of any
          material
          fact contained in any Back-Up Certification, the Annual Statement of Compliance,
          the Assessment of Compliance, any Attestation Report or any other information
          provided by or on behalf of the Servicer or on behalf of any subservicer
          or
          subcontractor of the Servicer pursuant to Sections 6.04, 6.09, 10.02 or
          11.16
          (the “Servicer Information”), or (ii) the omission or alleged omission to state
          therein a material fact required to be stated therein or necessary to make
          the
          statements therein, in light of the circumstances in which they were made,
          not
          misleading.]

         

        Modification
          of Servicing Agreement

         

        9.  The
          Company and Assignor hereby amend the Servicing Agreement as
          follows:

         

        
          	(a)  	
                  The
                    following definitions are added to Article I of the Servicing
                    Agreement:

                

        

         

        Assignee:
          Citibank, N.A, as trustee for the holders of SACO I Trust 2006-9, Mortgage
          Pass-Through Certificates, Series 2006-9.

         

        Master
          Servicer:
          LaSalle
          Bank National Association, or its successors in interest who meet the
          qualifications of the Pooling and Servicing Agreement and this
          Agreement.

         

        Pooling
          and Servicing Agreement:
          That
          certain pooling and servicing agreement, dated as of August 1, 2006, among
          Bear
          Stearns Asset Backed Securities I LLC, the Trustee, LaSalle Bank National
          Association. as securities administrator, the Master Servicer and the
          Owner.

         

        Trustee:
          Citibank, N.A, or its successor in interest, or any successor trustee appointed
          as provided in the Pooling and Servicing Agreement.

         

        
          	(b)  	
                  The
                    definition of “Business Day” is deleted in its entirety and replaced with
                    the following:

                

        

         

        Business
          Day:
          Any day
          other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the States
          of
          New York, Iowa, Illinois, Minnesota or the Commonwealth of Pennsylvania
          or (iii)
          a day on which banks in the States of New York, Iowa, Illinois, Minnesota
          or the
          Commonwealth of Pennsylvania are authorized or obligated by law or executive
          order to be closed.

         

        
          	(c)  	
                  The
                    definition of “Custodian” is deleted in its entirety and replaced with the
                    following:

                

        

         

        Custodian:
          LaSalle
          Bank National Association.

         

        
          	(d)  	
                  The
                    definition of Qualified Depository is deleted in its entirety
                    and replaced
                    with the following:

                

        

         

        Qualified
          Depository:
          A
          separate and segregated account established with a depository, the accounts
          of
          which are insured by the FDIC through BIF or the SAIF and the short term
          debt
          ratings of which are rated in the highest rating category by Standard &
Poor's Rating Services, a division of The McGraw-Hill Companies Inc., Moody's
          Investors Services, Inc., or Fitch, Inc.

         

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

        
          	(e)  	
                  Section
                    6.04 of the Servicing Agreement is hereby deleted in its entirety
                    and
                    replaced with the following:

                

        

         

        Section
          6.04 Annual
          Statement as to Compliance; Annual Certification.

         

        (a) The
          Servicer will deliver to the Owner and any Master Servicer, using its best
          efforts to deliver on March 1, but in no event later than March 15, of
          each
          calendar year beginning in 2007, an Officers’ Certificate acceptable to the
          Owner (an “Annual Statement of Compliance”) stating, as to each signatory
          thereof, that (i) a review of the activities of the Servicer during the
          preceding calendar year and of performance under this Agreement or other
          applicable servicing agreement has been made under such officers’ supervision
          and (ii) to the best of such officers’ knowledge, based on such review, the
          Servicer has fulfilled all of its obligations under this Agreement or other
          applicable servicing agreement in all material respects throughout such
          year,
          or, if there has been a failure to fulfill any such obligation in any material
          respect, specifying each such failure known to such officer and the nature
          and
          status of cure provisions thereof. Such Annual Statement of Compliance
          shall
          contain no restrictions or limitations on its use.

         

        (b) With
          respect to any Mortgage Loans that are the subject of a Pass-Through Transfer,
          using its best efforts to deliver on March 1, but in no event later than
          March
          15, of each calendar year beginning in 2007, an officer of the Servicer
          shall
          execute and deliver an Officers’ Certificate (an “Annual Certification”) to the
          Owner, any Master Servicer and any related Depositor for the benefit of
          each
          such entity and such entity’s affiliates and the officers, directors and agents
          of any such entity and such entity’s affiliates, in the form attached hereto as
          Exhibit H.

         

        With
          respect to any Mortgage Loans that are the subject of a Pass-Through Transfer
          that is subject to the reporting requirements of the Exchange Act, in the
          event
          that the Servicer fails to timely comply with this Section 6.04 after March
          15th
          of the related year, the Depositor of such Pass-Through Transfer shall
          use its
          commercially reasonable efforts to obtain written or verbal statements
          or
          assurances from the Commission, by March 30th of the related year (or such
          extension of time granted by the Commission so that it can review the facts
          surrounding any requests made by the Depositor) that such failure to provide
          the
          required Annual Statement of Compliance on a timely basis, and a one time
          additional failure by the Servicer to comply with this Section 6.04, will
          not
          result in any adverse effect on the Depositor or its affiliates with respect
          to
          any Shelf Registration on Form S-3 of the Depositor or any of its affiliates.
          Any costs or expenses incurred by the Depositor in obtaining such statement
          or
          assurances from the Commission shall be reimbursed to the Depositor by
          the
          Servicer. In the event that the Depositor is unable to receive any such
          assurances from the Commission after the use of such commercially reasonable
          efforts by March 30th (or any extension period granted by the Commission)
          of the
          related year, such failure by the Servicer to comply with this Section
          6.04
          shall be deemed an Event of Default, automatically at such time, without
          notice
          and without any cure period, and the Depositor or any Master Servicer may,
          in
          addition to whatever rights the Depositor or any Master Servicer may have
          under
          Section 8.01, subject to the limitation expressed therein, and at law or
          equity
          or to damages, including injunctive relief and specific performance, terminate
          all the rights and obligations of the Servicer under this Agreement and
          in and
          to the Mortgage
          Loans
          and the proceeds thereof without compensating the Servicer for the same,
          as
          provided in Section 9.01 . Such termination shall be considered with cause
          pursuant to Section 10.01 of this Agreement. This paragraph shall supersede
          any
          other provision in this Agreement or any other agreement to the
          contrary.

         

        Failure
          to provide the Annual Statement of Compliance or Annual Certification within
          the
          required timeframes set forth herein will be treated as a failure of the
          Servicer to perform its duties under the Agreement and will be subject
          to the
          indemnification provisions of Section 8.01, subject to the limitation expressed
          therein, of the Agreement. This indemnification is understood by the parties
          hereto to cover any gross negligence, bad faith or willful misconduct of
          the
          Servicer in connection with its performance hereunder. For any indemnification
          from the Servicer to any Master Servicer, the Servicer in no event will
          be
          liable for punitive or consequential damages, regardless of the form of
          action,
          whether in contract, tort or otherwise.

         

        If
          the
          indemnification provided for therein is unavailable or insufficient to
          hold
          harmless the Owner, each affiliate of the Owner, and each of the following
          parties participating in a Pass-Through Transfer: each sponsor and issuing
          entity; each Person (including, but not limited to, any Master Servicer,
          if
          applicable) responsible for the preparation, execution or filing of any
          report
          required to be filed with the Commission with respect to such Pass-Through
          Transfer, or for execution of a certification pursuant to Rule 13a-14(d)
          or Rule
          15d-14(d) under the Exchange Act with respect to such Pass-Through Transfer;
          each broker dealer acting as underwriter, placement agent or initial purchaser,
          each Person who controls any of such parties or the Depositor (within the
          meaning of Section 15 of the Securities Act and Section 20 of the Exchange
          Act);
          and the respective present and former directors, officers, employees, agents
          and
          affiliates of each of the foregoing and of the Depositor (each, an “Indemnified
          Party”), then the Servicer agrees that it shall contribute to the amount paid
          or
          payable by such Indemnified Party as a result of any claims, losses, damages
          or
          liabilities incurred by such Indemnified Party in such proportion as is
          appropriate to reflect the relative fault of such Indemnified Party on
          the one
          hand and the Servicer on the other. 

         

        In
          the
          case of any failure of performance described above, the Servicer shall
          promptly
          reimburse the Owner, any Depositor, as applicable, and each Person responsible
          for the preparation, execution or filing of any report required to be filed
          with
          the Commission with respect to such Securitization Transaction, or for
          execution
          of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the
          Exchange Act with respect to such Securitization Transaction, for all costs
          reasonably incurred by each such party in order to obtain the information,
          report, certification, accountants’ letter or other material not delivered as
          required by the Servicer, any Subservicer or any Subcontractor.

         

        This
          indemnification shall survive the termination of this Agreement or the
          termination of any party to this Agreement.

         

        
          	(f)  	
                  The
                    fifth and sixth paragraphs of Section 6.09 of the Servicing Agreement
                    are
                    deleted in their entirety and replaced with the
                    following:

                

        

         

        With
          respect to any Mortgage Loans that are the subject of a Pass-Through Transfer
          that is subject to the reporting requirements of the Exchange Act, in the
          event
          that the Servicer fails to timely comply with this Section 6.10 by March
          15th of
          the related year, the Owner shall use its commercially reasonable efforts
          to
          obtain written or verbal statements or assurances from the Commission,
          by March
          30th of the related year (or such extension of time granted by the Commission
          so
          that it can review the facts surrounding any requests made by the Depositor)
          that such failure to provide the required Assessment of Compliance and
          Attestation Report on a timely basis, and a one time additional failure
          by the
          Servicer to comply with this Section 6.10, will not result in any adverse
          effect
          on the Depositor or its affiliates with respect to any Shelf Registration
          on
          Form S-3 of the Depositor or any of its affiliates. Any costs or expenses
          incurred by the Depositor in obtaining such statement or assurances from
          the
          Commission shall be reimbursed to the Depositor by the Servicer. In the
          event
          that the Depositor is unable to receive any such assurances from the Commission
          after the use of such commercially reasonable efforts by March 30th (or
          any
          extension period granted by the Commission) of the related year, such failure
          by
          the Servicer to comply with this Section 6.10 shall be deemed an Event
          of
          Default, automatically at such time, without notice and without any cure
          period,
          and the Depositor or any Master Servicer may, in addition to whatever rights
          the
          Depositor or any Master Servicer may have under Section 8.01, subject to
          the
          limitation expressed therein, and at law or equity or to damages, including
          injunctive relief and specific performance, terminate all the rights and
          obligations of the Servicer under this Agreement and in and to the Mortgage
          Loans and the proceeds thereof without compensating the Servicer for the
          same,
          as provided in Section 9.01 . Such termination shall be considered with
          cause
          pursuant to Section 10.01 of this Agreement. This paragraph shall supersede
          any
          other provision in this Agreement or any other agreement to the
          contrary.

         

        Failure
          to provide the Assessment of Compliance or Attestation Report within the
          required timeframes set forth herein will be treated as a failure of the
          Servicer to perform its duties under the Agreement and will be subject
          to the
          indemnification provisions of Section 8.01, subject to the limitation expressed
          therein, of the Agreement. This indemnification is understood by the parties
          hereto to cover any gross negligence bad faith or willful misconduct of
          the
          Servicer in connection with its performance hereunder. For any indemnification
          from the Servicer to any Master Servicer, the Servicer in no event will
          be
          liable for punitive or consequential damages, regardless of the form of
          action,
          whether in contract, tort or otherwise.

         

        
          	(g)  	
                  The
                    following is added as Section 6.11 of the Servicing
                    Agreement:

                

        

         

        Section
          6.11  No
          Waiver of Prepayment Charges

         

        The Servicer
          may waive the collection of any otherwise applicable Prepayment Charge
          or reduce
          the amount thereof actually collected, but only if: (i) the enforceability
          thereof will have been limited by bankruptcy, insolvency, moratorium,
          receivership and other similar laws relating to creditors’ rights generally,
          (ii) the enforcement thereof is illegal, or any local, state or federal
          agency
          has threatened legal action if the Prepayment Charge is enforced, (iii)
          the
          mortgage debt has been accelerated in connection with a foreclosure or
          other
          involuntary payment or (iv) such waiver is standard and customary in servicing
          similar Mortgage Loans and relates to a default or a reasonably foreseeable
          default and would, in the reasonable judgment of the Servicer, maximize
          recovery
          of total proceeds taking into account the value of such Prepayment Charge
          and
          the related Mortgage Loan.
          If a
          Prepayment Charge is waived, but does not meet the standards described
          above,
          then the Servicer is required to pay the amount of such waived Prepayment
          Charge
          by remitting such amount to the Master Servicer by the Remittance
          Date.

         

        
          	(h)  	
                  The
                    last five paragraphs of Section 10.02 of the Servicing Agreement
                    are
                    hereby deleted and replaced with the
                    following:

                

        

         

        As
          a
          condition to the succession to the Servicer or any Subservicer as servicer
          or
          subservicer under this Agreement or any Reconstitution Agreement by any
          Person
          (i) into which the Servicer or such Subservicer may be merged or consolidated,
          or (ii) which may be appointed as a successor to the Servicer or any
          Subservicer, the Servicer shall provide to the Owner, any Master Servicer,
          and
          any Depositor, at least 15 calendar days prior to the effective date of
          such
          succession or appointment, (x) written notice to the Owner, any Master
          Servicer
          and any Depositor of such succession or appointment and (y) in writing
          and in
          form and substance reasonably satisfactory to the Owner, any Master Servicer
          and
          such Depositor, all information reasonably requested by the Owner, any
          Master
          Servicer or any Depositor in order to comply with its reporting obligation
          under
          Item 6.02 of Form 8-K with respect to any class of asset-backed securities;
          

         

        In
          addition to such information as the Servicer is obligated to provide pursuant
          to
          other provisions of this Agreement, not later than ten days prior to the
          deadline for the filing of any distribution report on Form 10-D in respect
          of
          any Securitization Transaction that includes any of the Mortgage Loans
          serviced
          by the Servicer or any Subservicer, the Servicer or such Subservicer, as
          applicable, shall, to the extent the Servicer or such Subservicer has knowledge,
          provide to the party responsible for filing such report (including, if
          applicable, the Master Servicer) notice of the occurrence of any of the
          following events along with all information, data, and materials related
          thereto
          as may be required to be included in the related distribution report on
          Form
          10-D (as specified in the provisions of Regulation AB referenced
          below):

         

        (A) any
          material modifications, extensions or waivers of pool asset terms, fees,
          penalties or payments during the Collection Period or that have cumulatively
          become material over time (Item 1121(a)(11) of Regulation AB);

         

        (B) material
          breaches of pool asset representations or warranties or transaction covenants
          (Item 1121(a)(12) of Regulation AB); and

         

        (C) information
          regarding new asset-backed securities issuances backed by the same pool
          assets,
          any pool asset changes (such as, additions, substitutions or repurchases),
          and
          any material changes in origination, underwriting or other criteria for
          acquisition or selection of pool assets (Item 1121(a)(14) of Regulation
          AB);
          and

         

        The
          Servicer shall provide to the Owner, any Master Servicer and any Depositor,
          evidence of the authorization of the person signing any certification or
          statement, copies or other evidence of Fidelity Bond Insurance and Errors
          and
          Omission Insurance policy, financial information and reports, and such
          other
          information related to the Servicer or any Subservicer or the Servicer
          or such
          Subservicer’s performance hereunder.

         

        Notwithstanding
          the foregoing, the Servicer shall be under no obligation to provide information
          that the Owner deems required under Regulation AB if (i) the Servicer does
          not
          reasonably believe that such information is required under Regulation AB
          and
          (ii) the Servicer is not providing such information for (A) its own
          securitizations, or (B) any third party securitizations with loans serviced
          by
          the Servicer, unless the Owner pays all reasonable actual costs incurred
          by the
          Servicer in connection with the preparation and delivery of such information
          and
          the Servicer is given reasonable time to establish the necessary systems
          and
          procedures to produce such information; provided, however, that the costs
          incurred by the Servicer in connection with establishing the necessary
          systems
          and procedures will be split pro rata with any other purchaser that makes
          a
          request for similar information.

         

        All
          Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
          remain
          subject to, and serviced in accordance with the terms of, this Agreement
          and the
          related Term Sheet, and with respect thereto this Agreement and the related
          Term
          Sheet shall remain in full force and effect.

         

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

         

        
          	(i)  	
                  Exhibit
                    F and Exhibit J in the Servicing Agreement shall be modified
                    by deleting
                    the words “Wells Fargo Bank”, “WFB” and “Wells Fargo Bank, N.A.” and
                    replacing them with “LaSalle Bank National
                    Association”.

                

        

         

        
          	(j)  	
                  Exhibit
                    G of the Servicing Agreement is deleted in its entirety and replaced
                    with
                    the following:

                

        

         

        EXHIBIT
          G

        

        SERVICING
          CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

        

        The
          assessment of compliance to be delivered by [the Company] [Name of Subservicer]
          shall address, at a minimum, the criteria identified as below as “Applicable
          Servicing Criteria”:

        

        
          	
                  Servicing
                    Criteria 

                	
                  Applicable
                    Servicing Criteria

                
	
                  Reference

                	
                  Criteria

                	
                   

                
	
                   

                	
                  General
                    Servicing Considerations

                	
                   

                
	
                  1122(d)(1)(i)

                	
                  Policies
                    and procedures are instituted to monitor any performance or other
                    triggers
                    and events of default in accordance with the transaction
                    agreements.

                	
                  x

                
	
                  1122(d)(1)(ii)

                	
                  If
                    any material servicing activities are outsourced to third parties,
                    policies and procedures are instituted to monitor the third party’s
                    performance and compliance with such servicing activities.

                	
                  x

                
	
                  1122(d)(1)(iii)

                	
                  Any
                    requirements in the transaction agreements to maintain a back-up
                    servicer
                    for the mortgage loans are maintained.

                	 
	
                  1122(d)(1)(iv)

                	
                  A
                    fidelity bond and errors and omissions policy is in effect on
                    the party
                    participating in the servicing function throughout the reporting
                    period in
                    the amount of coverage required by and otherwise in accordance
                    with the
                    terms of the transaction agreements.

                	
                  x

                
	
                   

                	
                  Cash
                    Collection and Administration

                	 
	
                  1122(d)(2)(i)

                	
                  Payments
                    on mortgage loans are deposited into the appropriate custodial
                    bank
                    accounts and related bank clearing accounts no more than two
                    business days
                    following receipt, or such other number of days specified in
                    the
                    transaction agreements.

                	
                  x

                
	
                  1122(d)(2)(ii)

                	
                  Disbursements
                    made via wire transfer on behalf of an obligor or to an investor
                    are made
                    only by authorized personnel.

                	
                  x

                
	
                  1122(d)(2)(iii)

                	
                  Advances
                    of funds or guarantees regarding collections, cash flows or distributions,
                    and any interest or other fees charged for such advances, are
                    made,
                    reviewed and approved as specified in the transaction
                    agreements.

                	
                  x

                
	
                  1122(d)(2)(iv)

                	
                  The
                    related accounts for the transaction, such as cash reserve accounts
                    or
                    accounts established as a form of overcollateralization, are
                    separately
                    maintained (e.g., with respect to commingling of cash) as set
                    forth in the
                    transaction agreements.

                	
                  x

                
	
                  1122(d)(2)(v)

                	
                  Each
                    custodial account is maintained at a federally insured depository
                    institution as set forth in the transaction agreements. For purposes
                    of
                    this criterion, “federally insured depository institution” with respect to
                    a foreign financial institution means a foreign financial institution
                    that
                    meets the requirements of Rule 13k-1(b)(1) of the Securities
                    Exchange
                    Act.

                	
                  x

                
	
                  1122(d)(2)(vi)

                	
                  Unissued
                    checks are safeguarded so as to prevent unauthorized
                    access.

                	
                  x

                
	
                  1122(d)(2)(vii)

                	
                  Reconciliations
                    are prepared on a monthly basis for all asset-backed securities
                    related
                    bank accounts, including custodial accounts and related bank
                    clearing
                    accounts. These reconciliations are (A) mathematically accurate;
                    (B)
                    prepared within 30 calendar days after the bank statement cutoff
                    date, or
                    such other number of days specified in the transaction agreements;
                    (C)
                    reviewed and approved by someone other than the person who prepared
                    the
                    reconciliation; and (D) contain explanations for reconciling
                    items. These
                    reconciling items are resolved within 90 calendar days of their
                    original
                    identification, or such other number of days specified in the
                    transaction
                    agreements.

                	
                  x

                
	
                   

                	
                  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

                
	
                  1122(d)(4)(ii)

                	
                  Mortgage
                    loan and related documents are safeguarded as required by the
                    transaction
                    agreements

                	
                  x

                
	
                  1122(d)(4)(iii)

                	
                  Any
                    additions, removals or substitutions to the asset pool are made,
                    reviewed
                    and approved in accordance with any conditions or requirements
                    in the
                    transaction agreements.

                	
                  x

                
	
                  1122(d)(4)(iv)

                	
                  Payments
                    on mortgage loans, including any payoffs, made in accordance
                    with the
                    related mortgage loan documents are posted to the Servicer’s obligor
                    records maintained no more than two business days after receipt,
                    or such
                    other number of days specified in the transaction agreements,
                    and
                    allocated to principal, interest or other items (e.g., escrow)
                    in
                    accordance with the related mortgage loan documents.

                	
                  x

                
	
                  1122(d)(4)(v)

                	
                  The
                    Servicer’s records regarding the mortgage loans agree with the Servicer’s
                    records with respect to an obligor’s unpaid principal
                    balance.

                	
                  x

                
	
                  1122(d)(4)(vi)

                	
                  Changes
                    with respect to the terms or status of an obligor's mortgage
                    loans (e.g.,
                    loan modifications or re-agings) are made, reviewed and approved
                    by
                    authorized personnel in accordance with the transaction agreements
                    and
                    related pool asset documents.

                	
                  x

                
	
                  1122(d)(4)(vii)

                	
                  Loss
                    mitigation or recovery actions (e.g., forbearance plans, modifications
                    and
                    deeds in lieu of foreclosure, foreclosures and repossessions,
                    as
                    applicable) are initiated, conducted and concluded in accordance
                    with the
                    timeframes or other requirements established by the transaction
                    agreements.

                	
                  x

                
	
                  1122(d)(4)(viii)

                	
                  Records
                    documenting collection efforts are maintained during the period
                    a mortgage
                    loan is delinquent in accordance with the transaction agreements.
                    Such
                    records are maintained on at least a monthly basis, or such other
                    period
                    specified in the transaction agreements, and describe the entity’s
                    activities in monitoring delinquent mortgage loans including,
                    for example,
                    phone calls, letters and payment rescheduling plans in cases
                    where
                    delinquency is deemed temporary (e.g., illness or
                    unemployment).

                	
                  x

                
	
                  1122(d)(4)(ix)

                	
                  Adjustments
                    to interest rates or rates of return for mortgage loans with
                    variable
                    rates are computed based on the related mortgage loan
                    documents.

                	
                  x

                
	
                  1122(d)(4)(x)

                	
                  Regarding
                    any funds held in trust for an obligor (such as escrow accounts):
                    (A) such
                    funds are analyzed, in accordance with the obligor’s mortgage loan
                    documents, on at least an annual basis, or such other period
                    specified in
                    the transaction agreements; (B) interest on such funds is paid,
                    or
                    credited, to obligors in accordance with applicable mortgage
                    loan
                    documents and state laws; and (C) such funds are returned to
                    the obligor
                    within 30 calendar days of full repayment of the related mortgage
                    loans,
                    or such other number of days specified in the transaction
                    agreements.

                	
                  x

                
	
                  1122(d)(4)(xi)

                	
                  Payments
                    made on behalf of an obligor (such as tax or insurance payments)
                    are made
                    on or before the related penalty or expiration dates, as indicated
                    on the
                    appropriate bills or notices for such payments, provided that
                    such support
                    has been received by the servicer at least 30 calendar days prior
                    to these
                    dates, or such other number of days specified in the transaction
                    agreements.

                	
                  x

                
	
                  1122(d)(4)(xii)

                	
                  Any
                    late payment penalties in connection with any payment to be made
                    on behalf
                    of an obligor are paid from the servicer’s funds and not charged to the
                    obligor, unless the late payment was due to the obligor’s error or
                    omission.

                	
                  x

                
	
                  1122(d)(4)(xiii)

                	
                  Disbursements
                    made on behalf of an obligor are posted within two business days
                    to the
                    obligor’s records maintained by the servicer, or such other number of
                    days
                    specified in the transaction agreements.

                	
                  x

                
	
                  1122(d)(4)(xiv)

                	
                  Delinquencies,
                    charge-offs and uncollectible accounts are recognized and recorded
                    in
                    accordance with the transaction agreements.

                	
                  x

                
	
                  1122(d)(4)(xv)

                	
                  Any
                    external enhancement or other support, identified in Item 1114(a)(1)
                    through (3) or Item 1115 of Regulation AB, is maintained as set
                    forth in
                    the transaction agreements.

                	 
	
                   

                	
                   

                	
                   

                

        

        

         

        [NAME
          OF
          COMPANY] [NAME OF SUBSERVICER]

         

        Date: _________________________

        

         

        By: __________________________

        Name:
          

        Title:
          

        

         

        Miscellaneous

         

        10.  All
          demands, notices and communications related to the Assigned Loans, the
          Servicing
          Agreement and this AAR Agreement shall be in writing and shall be deemed
          to have
          been duly given if personally delivered at or mailed by registered mail,
          postage
          prepaid, as follows:

         

        
          	a.  	
                  In
                    the case of Company,

                

        

        GMAC
          Mortgage Corporation

        500
          Enterprise Road

        Horsham,
          Pennsylvania 19044

        Attention:
          Mr. Frank Ruhl

        Telecopier
          No.: (215) 682-3396

         

        
          	b.  	
                  In
                    the case of Assignor,

                

        

        EMC
          Mortgage Corporation

        2780
          Lake
          Vista Drive

        Lewisville,
          Texas 75067

        Attention:
          President or General Counsel

        Telecopier
          No.: (469) 759-4714

        

        
          	c.  	
                  In
                    the case of Assignee,

                

        

        Citibank,
          N.A., as Trustee

        388
          Greenwich Street, 14th
          Floor

        New
          York,
          New
          York 10013

        Attention:
          SACO 2006-9

        Telecopier
          No.: (212) 816-5527

        

        11.  The
          Company hereby acknowledges that LaSalle Bank National Association (the
“Master
          Servicer”) has been appointed as the master servicer of the Assigned Loans
          pursuant to the Pooling and Servicing Agreement, dated as of August 1,
          2006,
          among the Assignor, the Assignee, BSABS I, LaSalle Bank National Association
          as
          securities administrator and the Master Servicer, and therefor has the
          right to
          enforce all obligations of the Company, as they relate to the Assigned
          Loans,
          under the Servicing Agreement. Such right will include, without limitation,
          the
          right to terminate the Company under the Servicing Agreement upon the occurrence
          of an event of default thereunder, the right to receive all remittances
          required
          to be made by the Company under the Servicing Agreement, the right to receive
          all monthly reports and other data required to be delivered by the Company
          under
          the Servicing Agreement, the right to examine the books and records of
          the
          Company, indemnification rights, and the right to exercise certain rights
          of
          consent and approval relating to actions taken by the Company. The Company
          shall
          make all distributions under the Servicing Agreement, as they relate to
          the
          Assigned Loans, to the Master Servicer by wire transfer of immediately
          available
          funds to:

         

        LaSalle
          Bank National Association

        ABA#
          071000505

        Account
          #
          [ ]

        Attn:
          Sandra Brooks

         

        

        and
          the
          Company shall deliver all reports required to be delivered under the Servicing
          Agreement, as they relate to the Assigned Loans, to the Assignee at the
          address
          set forth in Section 10 herein and to the Master Servicer at:

         

        LaSalle
          Bank National Association

        135
          S.
          LaSalle St., Suite 1625

        Chicago,
          IL 60603

        Attention:
          Global Securities and Trust Services Group- SACO 2006-9

         

        

        12.  THIS
          AAR
          AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
          NEW
          YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES, AND THE OBLIGATIONS,
          RIGHTS
          AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
          WITH
          SUCH LAWS.

         

        13.  No
          term
          or provision of this AAR Agreement may be waived or modified unless such
          waiver
          or modification is in writing and signed by the party against whom such
          waiver
          or modification is sought to be enforced.

         

        14.  This
          AAR
          Agreement shall inure to the benefit of the successors and assigns of the
          parties hereto. Any entity into which Assignor, Assignee or Company may
          be
          merged or consolidated shall, without the requirement for any further writing,
          be deemed Assignor, Assignee or Company, respectively, hereunder.

         

        15.  This
          AAR
          Agreement shall survive the conveyance of the Assigned Loans, the assignment
          of
          the Servicing Agreement to the extent of the Assigned Loans by Assignor
          to
          Assignee and the termination of the Servicing Agreement and the Purchase
          Agreement.

         

        16.  This
          AAR
          Agreement may be executed simultaneously in any number of counterparts.
          Each
          counterpart shall be deemed to be an original and all such counterparts
          shall
          constitute one and the same instrument.

         

        17.  In
          the
          event that any provision of this AAR Agreement conflicts with any provision
          of
          the Servicing Agreement with respect to the Assigned Loans, the terms of
          this
          AAR Agreement shall control.

         

        18.  Notwithstanding
          anything in this AAR Agreement or the Servicing Agreement to the contrary,
          the
          Company will make monthly advances and charge offs in connection with the
          Mortgage Loans pursuant to Section 6.01 of the Pooling and Servicing Agreement.
          

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have executed this Agreement on the
          date
          first above written.

        

         

        
          	
                   

                  EMC
                    MORTAGE CORPORATION,

                  the
                    Assignor

                	
                   

                  CITIBANK,
                    N.A, not individually but solely as trustee 

                  for
                    the holders of SACO I Trust 2006-9, Mortgage 

                  Pass-Through
                    Certificates, Series 2006-9,

                
	 	
                  the
                    Assignee

                
	
                  By:_______________________________

                	
                   

                  By:________________________________

                
	
                  Name:_____________________________

                  Title:
                    _____________________________

                	
                  Name:_____________________________

                  Title:______________________________

                
	 	 
	
                  GMAC
                    MORTGAGE CORPORATION,

                  the
                    Company

                
	 
	
                  By:________________________________

                
	
                  Name:_____________________________

                  Title:______________________________

                
	 
	 

        

        Acknowledged
          and Agreed

         

        
          	
                  LASALLE
                    BANK 

                  NATIONAL
                    ASSOCIATION

                  the
                    Master Servicer

                
	
                  By:________________________________

                
	
                  Name:______________________________

                
	
                  Title:_______________________________

                   

                   

                  BEAR
                    STEARNS ASSET BACKED

                  SECURITIES
                    I LLC

                   

                  By:________________________________

                  Name:_____________________________

                  Title:______________________________

                

        

        

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        ATTACHMENT
          1

        

        ASSIGNED
          LOANS

        

        [Provided
          Upon Request]

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        ATTACHMENT
          2

        

        SERVICING
          AGREEMENT

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        T-1

       

      FORM
        OF
        HOMEBANC SERVICING AGREEMENT

       

      
         

        

        

        

        

        EMC
          MORTGAGE CORPORATION 

        Purchaser,
          

        

        HOMEBANC
          MORTGAGE CORPORATION

         

                                                 
Company,

        

        PURCHASE,
          WARRANTIES AND SERVICING AGREEMENT

        Dated
          as
          of January 1, 2004

        

         

        

        (Fixed
          and Adjustable Rate Mortgage Loans)

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        TABLE
          OF CONTENTS

        

        ARTICLE
          I

        

        

        
          	
                  Section
                    1.01

                	
                  Defined
                    Terms

                

        

        

        ARTICLE
          II

        

        
          	
                  Section
                    2.01

                	
                  Agreement
                    to Purchase

                
	
                  Section
                    2.02

                	
                  Purchase
                    Price

                
	
                  Section
                    2.03

                	
                  Servicing
                    of Mortgage Loans

                
	
                  Section
                    2.04

                	
                  Record
                    Title and Possession of Mortgage Files; Maintenance of Servicing
                    Files

                
	
                  Section
                    2.05

                	
                  Books
                    and Records

                
	
                  Section
                    2.06

                	
                  Transfer
                    of Mortgage Loans

                
	
                  Section
                    2.07

                	
                  Delivery
                    of Mortgage Loan Documents

                
	
                  Section
                    2.08

                	
                  Quality
                    Control Procedures

                
	
                  Section
                    2.09

                	
                  Near-term
                    Principal Prepayments; Near Term Payment Defaults

                
	
                  Section
                    2.10

                	
                  Modification
                    of Obligations

                

        

        

        ARTICLE
          III

        

        
          	
                  Section
                    3.01

                	
                  Representations
                    and Warranties of the Company

                
	
                  Section
                    3.02

                	
                  Representations
                    and Warranties as to Individual Mortgage Loans

                
	
                  Section
                    3.03

                	
                  Repurchase;
                    Substitution.

                
	
                  Section
                    3.04

                	
                  Representations
                    and Warranties of the Purchaser

                

        

        

        ARTICLE
          IV

        

        
          	
                  Section
                    4.01

                	
                  Company
                    to Act as Servicer

                
	
                  Section
                    4.02

                	
                  Collection
                    of Mortgage Loan Payments

                
	
                  Section
                    4.03

                	
                  Realization
                    Upon Defaulted Mortgage Loans

                
	
                  Section
                    4.04

                	
                  Establishment
                    of Custodial Accounts; Deposits in Custodial Accounts

                
	
                  Section
                    4.05

                	
                  Permitted
                    Withdrawals from the Custodial Account

                
	
                  Section
                    4.06

                	
                  Establishment
                    of Escrow Accounts; Deposits in Escrow Accounts

                
	
                  Section
                    4.07

                	
                  Permitted
                    Withdrawals From Escrow Account

                
	
                  Section
                    4.08

                	
                  Payment
                    of Taxes, Insurance and Other Charges; Maintenance of Primary
                    Mortgage
                    Insurance Policies; Collections Thereunder

                
	
                  Section
                    4.09

                	
                  Transfer
                    of Accounts

                
	
                  Section
                    4.10

                	
                  Maintenance
                    of Hazard Insurance

                
	
                  Section
                    4.11

                	
                  Maintenance
                    of Mortgage Impairment Insurance Policy

                
	
                  Section
                    4.12

                	
                  Fidelity
                    Bond, Errors and Omissions Insurance

                
	
                  Section
                    4.13

                	
                  Title,
                    Management and Disposition of REO Property

                
	
                  Section
                    4.14

                	
                  Notification
                    of Maturity Date

                

        

        

        ARTICLE
          V

        

        
          	
                  Section
                    5.01

                	
                  Distributions

                
	
                  Section
                    5.02

                	
                  Statements
                    to the Purchaser

                
	
                  Section
                    5.03

                	
                  Monthly
                    Advances by the Company

                
	
                  Section
                    5.04

                	
                  Liquidation
                    Reports

                

        

        

        ARTICLE
          VI

        

        
          	
                  Section
                    6.01

                	
                  Assumption
                    Agreements

                
	
                  Section
                    6.02

                	
                  Satisfaction
                    of Mortgages and Release of Mortgage Files

                
	
                  Section
                    6.03

                	
                  Servicing
                    Compensation

                
	
                  Section
                    6.04

                	
                  Annual
                    Statement as to Compliance

                
	
                  Section
                    6.05

                	
                  Annual
                    Independent Certified Public Accountants’ Servicing
                    Report

                
	
                  Section
                    6.06

                	
                  Purchaser’s
                    Right to Examine Company Records

                
	
                  Section
                    6.07

                	
                  Annual
                    Certification

                

        

        

        

        ARTICLE
          VII

        

        
          	
                  Section
                    7.01

                	
                  Company
                    Shall Provide Information as Reasonably
                    Required

                

        

        

        ARTICLE
          VIII

        

        
          	
                  Section
                    8.01

                	
                  Indemnification;
                    Third Party Claims

                
	
                  Section
                    8.02

                	
                  Merger
                    or Consolidation of the Company

                
	
                  Section
                    8.03

                	
                  Limitation
                    on Liability of the Company and Others

                
	
                  Section
                    8.04

                	
                  Company
                    Not to Assign or Resign

                
	
                  Section
                    8.05

                	
                  No
                    Transfer of Servicing

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        ARTICLE
          IX

        

        
          	
                  Section
                    9.01

                	
                  Events
                    of Default

                
	
                  Section
                    9.02

                	
                  Waiver
                    of Defaults

                

        

        

        ARTICLE
          X

        

        
          	
                  Section
                    10.01

                	
                  Termination

                

        

         

         

        ARTICLE
          XI

        

        
          	
                  Section
                    11.01

                	
                  Successor
                    to the Company

                
	
                  Section
                    11.02

                	
                  Amendment

                
	
                  Section
                    11.03

                	
                  Recordation
                    of Agreement

                
	
                  Section
                    11.04

                	
                  Governing
                    Law

                
	
                  Section
                    11.05

                	
                  Notices

                
	
                  Section
                    11.06

                	
                  Severability
                    of Provisions

                
	
                  Section
                    11.07

                	
                  Exhibits

                
	
                  Section
                    11.08

                	
                  General
                    Interpretive Principles

                
	
                  Section
                    11.09

                	
                  Reproduction
                    of Documents

                
	
                  Section
                    11.10

                	
                  Confidentiality
                    of Information

                
	
                  Section
                    11.11

                	
                  Recordation
                    of Assignment of Mortgage

                
	
                  Section
                    11.12

                	
                  Assignment
                    by Purchaser

                
	
                  Section
                    11.13

                	
                  No
                    Partnership

                
	
                  Section
                    11.14

                	
                  Execution:
                    Successors and Assigns

                
	
                  Section
                    11.15

                	
                  Entire
                    Agreement

                
	
                  Section
                    11.16

                	
                  No
                    Solicitation

                
	
                  Section
                    11.17

                	
                  Closing

                
	
                  Section
                    11.18

                	
                  Cooperation
                    of Company with Reconstitution

                

        

        

        EXHIBITS

         

        
          	
                  A

                	
                  Contents
                    of Mortgage File

                
	
                  B

                	
                  Custodial
                    Account Letter Agreement

                
	
                  C

                	
                  Escrow
                    Account Letter Agreement

                
	
                  D

                	
                  Form
                    of Assignment, Assumption and Recognition Agreement

                
	
                  E

                	
                  Form
                    of Trial Balance

                
	
                  F

                	
                  [reserved]

                
	
                  G

                	
                  Request
                    for Release of Documents and Receipt

                
	
                  H

                	
                  Company’s
                    Underwriting Guidelines

                
	
                  I

                	
                  Form
                    of Term Sheet

                

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        

         

        

        This
          is a
          Purchase, Warranties and Servicing Agreement, dated as of January 1, 2004
          and is
          executed between EMC MORTGAGE CORPORATION, as Purchaser, with offices located
          at
          Mac Arthur Ridge II, 909 Hidden Ridge Drive, Suite 200, Irving, Texas 75038
          (the
          "Purchaser"), and HomeBanc Mortgage Corporation, with its executive offices
          located at 2002
          Summit Boulevard, Suite 100, Atlanta, GA 30319 (the "Company").

        

        W I T N E S S E T H
          :

        

        WHEREAS,
          the Purchaser has heretofore agreed to purchase from the Company and the
          Company
          has heretofore agreed to sell to the Purchaser, from time to time, certain
          Mortgage Loans on a servicing retained basis; 

        

        WHEREAS,
          each of the Mortgage Loans is secured by a mortgage, deed of trust or other
          security instrument creating a first lien on a residential dwelling located
          in
          the jurisdiction indicated on the Mortgage Loan Schedule, which is annexed
          to
          the related Term Sheet; and

        

        WHEREAS,
          the Purchaser and the Company wish to prescribe the representations and
          warranties of the Company with respect to itself and the Mortgage Loans
          and the
          management, servicing and control of the Mortgage Loans;

        

        NOW,
          THEREFORE, in consideration of the mutual agreements hereinafter set forth,
          and
          for other good and valuable consideration, the receipt and adequacy of
          which is
          hereby acknowledged, the Purchaser and the Company agree as
          follows:

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        

        ARTICLE
          I

        

        DEFINITIONS

        

        Section
          1.01 Defined
          Terms.

        

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

        

        Accepted
          Servicing Practices:
          With
          respect to any Mortgage Loan, those mortgage servicing practices (including
          collection procedures) of prudent mortgage banking institutions which service
          mortgage loans of the same type as such Mortgage Loan in the jurisdiction
          where
          the related Mortgaged Property is located, and which are in accordance
          with
          Fannie Mae servicing practices and procedures, for MBS pool mortgages,
          as
          defined in the Fannie Mae Guides including future updates. 

        

        Adjustment
          Date:
          As to
          each adjustable rate Mortgage Loan, the date on which the Mortgage Interest
          Rate
          is adjusted in accordance with the terms of the related Mortgage
          Note.

        

        Agreement:
          This
          Purchase, Warranties and Servicing Agreement including all exhibits hereto,
          amendments hereof and supplements hereto.

        

        Appraised
          Value:
          With
          respect to any Mortgaged Property, the value thereof as determined by an
          appraisal made for the originator of the Mortgage Loan at the time of
          origination of the Mortgage Loan by an appraiser who met the requirements
          of the
          Company and Fannie Mae, or as determined by use of an AVM, provided, however,
          that the use of an AVM shall be permitted only upon the presentation by
          the
          Company to the Purchaser of an approval letter acceptable to the Purchaser
          from
          each of the Rating Agencies, which letters shall state that use of an AVM
          shall
          have no adverse effect in any material respect on the interests of any
          certificateholder of the related securitization.

        

        Assignment:
          An
          individual assignment of the Mortgage, notice of transfer or equivalent
          instrument, in recordable form, sufficient under the laws of the jurisdiction
          wherein the related Mortgaged Property is located to reflect of record
          the sale
          or transfer of the Mortgage Loan.

        

        BIF:
          The
          Bank Insurance Fund, or any successor thereto.

        

        Business
          Day:
          Any day
          other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the State
          of
          New York or Georgia, or (iii) a day on which banks in the State of New
          York or
          Georgia are authorized or obligated by law or executive order to be
          closed.

        

        

        Closing
          Date:
          With
          respect to any Mortgage Loan, the date stated on the related Term Sheet.
          

        

        Code:The
          Internal Revenue Code of 1986, or any successor statute thereto.

        

        Company:
          HomeBanc Mortgage Corporation their successors in interest and assigns,
          as
          permitted by this Agreement.

        

        Company's
          Officer's Certificate:
          A
          certificate signed by the Chairman of the Board, President, any Vice President
          or Treasurer of Company stating the date by which Company expects to receive
          any
          missing documents sent for recording from the applicable recording
          office.

        

        Condemnation
          Proceeds:
          All
          awards or settlements in respect of a Mortgaged Property, whether permanent
          or
          temporary, partial or entire, by exercise of the power of eminent domain
          or
          condemnation, to the extent not required to be released to a Mortgagor
          in
          accordance with the terms of the related Mortgage Loan Documents.

        

        Confirmation:
          The
          trade confirmation letter between the Purchaser and the Company which relates
          to
          the Mortgage Loans.

        

        Co-op
          Lease:
          With
          respect to a Co-op Loan, the lease with respect to a dwelling unit occupied
          by
          the Mortgagor and relating to the stock allocated to the related dwelling
          unit.

        

        Co-op
          Loan:
          A
          Mortgage Loan secured by the pledge of stock allocated to a dwelling unit
          in a
          residential cooperative housing corporation and a collateral assignment
          of the
          related Co-op Lease.

        

        Current
          Appraised Value:With
          respect to any Mortgaged Property, the value thereof as determined by an
          appraisal made for the Company (by an appraiser who met the requirements
          of the
          Company and Fannie Mae), or through the use of an AVM, at the request of
          a
          Mortgagor for the purpose of canceling a Primary Mortgage Insurance Policy
          in
          accordance with federal, state and local laws and regulations or otherwise
          made
          at the request of the Company or Mortgagor. 

        

        Current
          LTV:The
          ratio of the Stated Principal Balance of a Mortgage Loan to the Current
          Appraised Value of the Mortgaged Property.

        

        Custodial
          Account:
          Each
          separate demand account or accounts created and maintained pursuant to
          Section
          4.04 which shall be entitled "HBMC Custodial Account, in trust for the
          Purchaser, Owner of Adjustable Rate Mortgage Loans" and shall be established
          in
          an Eligible Account, in the name of the Person that is the "Purchaser"
          with
          respect to the related Mortgage Loans.

        

        Custodian:
          With
          respect to any Mortgage Loan, the entity stated on the related Term Sheet,
          and
          its successors and assigns, as custodian for the Purchaser. 

        

        Cut-off
          Date:
          With
          respect to any Mortgage Loan, the date stated on the related Term Sheet.
          

        

        Determination
          Date:
          The
          15th day (or if such 15th day is not a Business Day, the Business Day
          immediately preceding such 15th day) of the month of the related Remittance
          Date.

        

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

        

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

        

        Eligible
          Account:
          An
          account established and maintained: (i) within FDIC insured accounts created,
          maintained and monitored by the Company so that all funds deposited therein
          are
          fully insured, or (ii) as a trust account with the corporate trust department
          of
          a depository institution or trust company organized under the laws of the
          United
          States of America or any one of the states thereof or the District of Columbia
          which is not affiliated with the Company (or any sub-servicer) or (iii)
          with an
          entity which is an institution whose deposits are insured by the FDIC,
          the
          unsecured and uncollateralized long-term debt obligations of which shall
          be
          rated “A2” or higher by Standard & Poor’s and “A” or higher by Fitch, Inc.
          or one of the two highest short-term ratings by any applicable Rating Agency,
          and which is either (a) a federal savings association duly organized, validly
          existing and in good standing under the federal banking laws, (b) an institution
          duly organized, validly existing and in good standing under the applicable
          banking laws of any state, (c) a national banking association under the
          federal
          banking laws, or (d) a principal subsidiary of a bank holding company,
          or (iv)
          if ownership of the Mortgage Loans is evidenced by mortgaged-backed securities,
          the equivalent required ratings of each Rating Agency, and held such that
          the
          rights of the Purchaser and the owner of the Mortgage Loans shall be fully
          protected against the claims of any creditors of the Company (or any
          sub-servicer) and of any creditors or depositors of the institution in
          which
          such account is maintained or (v) in a separate non-trust account without
          FDIC
          or other insurance in an Eligible Institution. In the event that a Custodial
          Account is established pursuant to clause (iii), (iv) or (v) of the preceding
          sentence, the Company shall provide the Purchaser with written notice on
          the
          Business Day following the date on which the applicable institution fails
          to
          meet the applicable ratings requirements.

        

        Eligible
          Institution:
          An
          institution having (i) the highest short-term debt rating, and one of the
          two
          highest long-term debt ratings of each Rating Agency; or (ii) with respect
          to
          any Custodial Account, an unsecured long-term debt rating of at least one
          of the
          two highest unsecured long-term debt ratings of each Rating Agency.

        

        Equity
          Take-Out Refinanced Mortgage Loan:
          A
          Refinanced Mortgage Loan the proceeds of which were in excess of the outstanding
          principal balance of the existing mortgage loan as defined in the Fannie
          Mae
          Guide(s). 

        

        Escrow
          Account:
          Each
          separate trust account or accounts created and maintained pursuant to Section
          4.06 which shall be entitled "HBMC Escrow Account, in trust for the Purchaser,
          Owner of Adjustable Rate Mortgage Loans, and various Mortgagors" and shall
          be
          established in an Eligible Account, in the name of the Person that is the
          "Purchaser" with respect to the related Mortgage Loans.

        

        Escrow
          Payments:
          With
          respect to any Mortgage Loan, the amounts constituting ground rents, taxes,
          assessments, water rates, sewer rents, municipal charges, mortgage insurance
          premiums, fire and hazard insurance premiums, condominium charges, and
          any other
          payments required to be escrowed by the Mortgagor with the mortgagee pursuant
          to
          the Mortgage or any other document.

        

        Event
          of Default:
          Any one
          of the conditions or circumstances enumerated in Section 9.01.

        

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

        

        Fannie
          Mae Guide(s):
          The
          Fannie Mae Selling Guide and the Fannie Mae Servicing Guide and all amendments
          or additions thereto.

        

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

        

        FHLMC:
          The
          Federal Home Loan Mortgage Corporation, or any successor thereto.

        

        FHLMC
          Guide:
          The
          FHLMC Single Family Seller/Servicer Guide and all amendments or additions
          thereto.

        

        Fidelity
          Bond:
          A
          fidelity bond to be maintained by the Company pursuant to Section
          4.12.

        

        FIRREA:
          The
          Financial Institutions Reform, Recovery, and Enforcement Act of
          1989.

        

        GAAP:
          Generally accepted accounting principles, consistently applied.

        

        HUD:
          The
          United States Department of Housing and Urban Development or any successor
          thereto.

        

        Index:
          With
          respect to any adjustable rate Mortgage Loan, the index identified on the
          Mortgage Loan Schedule and set forth in the related Mortgage Note for the
          purpose of calculating the interest rate thereon.

        

        Initial
          Rate Cap:As
          to
          each adjustable rate Mortgage Loan, where applicable, the maximum increase
          or
          decrease in the Mortgage Interest Rate on the first Adjustment
          Date.

        

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

        

        Interest
          Only Mortgage Loan:
          A
          Mortgage Loan for which an interest-only payment feature is allowed during
          the
          period prior to the first Adjustment Date.

         

        Lender
          Paid Mortgage Insurance Rate:
          The
          Lender Paid Mortgage Insurance Rate shall be a rate per annum equal to
          the
          percentage shown on the Mortgage Loan Schedule.

        

        Lender
          Primary Mortgage Insurance Policy:
          Any
          Primary Mortgage Insurance Policy for which premiums are paid by the Company.
          

        

        Lifetime
          Rate Cap:
          As to
          each adjustable rate Mortgage Loan, the maximum Mortgage Interest Rate
          over the
          term of such Mortgage Loan. 

        

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

        

        Loan-to-Value
          Ratio or LTV:
          With
          respect to any Mortgage Loan, the ratio of the original outstanding principal
          amount of the Mortgage Loan, to (i) the Appraised Value of the Mortgaged
          Property as of the Origination Date with respect to a Refinanced Mortgage
          Loan,
          and (ii) the lesser of the Appraised Value of the Mortgaged Property as
          of the
          Origination Date or the purchase price of the Mortgaged Property with respect
          to
          all other Mortgage Loans.

        

        Margin:
          With
          respect to each adjustable rate Mortgage Loan, the fixed percentage amount
          set
          forth in each related Mortgage Note which is added to the Index in order
          to
          determine the related Mortgage Interest Rate, as set forth in the Mortgage
          Loan
          Schedule.

        

        Master
          Servicer:
          Wells
          Fargo Bank Minnesota, National Association, its successors in interest
          and
          assigns, or any successor thereto designated by the Purchaser.

         

        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.

         

        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
          Advance:
          The
          aggregate of the advances made by the Company on any Remittance Date pursuant
          to
          Section 5.03.

        

        Monthly
          Payment:
          The
          scheduled monthly payment of principal and interest on a Mortgage Loan,
          or in
          the case of an Interest Only Mortgage Loan, payments of (i) interest, or
          (ii)
          principal and interest, if applicable, on a Mortgage Loan which is payable
          by a
          Mortgagor under the related Mortgage Note.

        

        Mortgage:
          The
          mortgage, deed of trust or other instrument securing a Mortgage Note which
          creates a first lien on an unsubordinated estate in fee simple in real
          property
          securing the Mortgage Note.

        

        Mortgage
          File:
          The
          mortgage documents pertaining to a particular Mortgage Loan which are specified
          in Exhibit A hereto and any additional documents required to be added to
          the
          Mortgage File pursuant to this Agreement.

        

        Mortgage
          Impairment Insurance Policy:
          A
          mortgage impairment or blanket hazard insurance policy as required by Section
          4.11.

        

        Mortgage
          Interest Rate:
          The
          annual rate at which interest accrues on any Mortgage Loan, which may be
          adjusted from time to time for an adjustable rate Mortgage Loan, in accordance
          with the provisions of the related Mortgage Note.

        

        Mortgage
          Loan:
          An
          individual mortgage loan which is the subject of this Agreement, each Mortgage
          Loan originally sold and subject to this Agreement being identified on
          the
          Mortgage Loan Schedule attached to the related Term Sheet, which Mortgage
          Loan
          includes without limitation the Mortgage File, the Monthly Payments, Principal
          Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds,
          REO Disposition Proceeds, and all other rights, benefits, proceeds and
          obligations arising from or in connection with such Mortgage Loan, excluding
          replaced or repurchased mortgage loans.

        

        Mortgage
          Loan Documents:
          The
          documents listed in
          Exhibit A.

        

        Mortgage
          Loan Remittance Rate:
          With
          respect to each Mortgage Loan, the annual rate of interest remitted to
          the
          Purchaser, which shall be equal to the Mortgage Interest Rate minus the
          Servicing Fee Rate minus the Lender Paid Mortgage Insurance Rate.

        

        Mortgage
          Loan Schedule:
          The
          schedule of Mortgage Loans annexed to the related Term Sheet, such schedule
          setting forth the following information with respect to each Mortgage Loan
          in
          the related Mortgage Loan Package:

        

        (1) the
          Company's Mortgage Loan identifying number;

        

        (2) the
          Mortgagor's first and last name;

        

        (3)
           the
          street address of the Mortgaged Property including the city, state and
          zip
          code;

        

        (4) a
          code
          indicating whether the Mortgaged Property is owner-occupied, a second home
          or an
          investor property;

        

        (5) the
          type
          of residential property constituting the Mortgaged Property;

        

        (6)  the
          original months to maturity of the Mortgage Loan;

        

        (7)  the
          remaining months to maturity from the related Cut-off Date, based on the
          original amortization schedule and, if different, the maturity expressed
          in the
          same manner but based on the actual amortization schedule;

        

        (8) the
          Sales
          Price, if applicable, Appraised Value and Loan-to-Value Ratio, at
          origination;

        

        (9) the
          Mortgage Interest Rate as of origination and as of the related Cut-off
          Date;
          with respect to each adjustable rate Mortgage Loan, the initial Adjustment
          Date,
          the next Adjustment Date immediately following the related Cut-off Date,
          the
          Index, the Margin, the Initial Rate Cap, if any, Periodic Rate Cap, if
          any,
          minimum Mortgage Interest Rate under the terms of the Mortgage Note and
          the
          Lifetime Rate Cap;

        

        (10) the
          Origination Date of the Mortgage Loan;

        

        (11) the
          stated maturity date;

        

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

        

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

        

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

        

        (15) the
          scheduled Stated Principal Balance of the Mortgage Loan as of the close
          of
          business on the related Cut-off Date, after deduction of payments of principal
          due on or before the related Cut-off Date whether or not collected;

        

        (16)
          a
          code indicating the purpose of the Mortgage Loan (i.e., purchase, rate
          and term
          refinance, equity take-out refinance); 

        

        (17)
          a
          code indicating the documentation style (i.e. full, alternative, etc.);
          

        

        (18) the
          number of times during the twelve (12) month period preceding the related
          Closing Date that any Monthly Payment has been received after the month
          of its
          scheduled due date;

        

        (19) the
          date
          on which the first payment is or was due; 

        

        (20) a
          code
          indicating whether or not the Mortgage Loan is the subject of a Primary
          Mortgage
          Insurance Policy and the name of the related insurance carrier; 

        

        (21)
           a
          code
          indicating whether or not the Mortgage Loan is currently convertible and
          the
          conversion spread; 

        

        (22)
           the
          last
          Due Date on which a Monthly Payment was actually applied to the unpaid
          principal
          balance of the Mortgage Loan.

        

        (23)
           product
          type (i.e. fixed, adjustable, 3/1, 5/1, etc.); 

        

        (24) credit
          score and/or mortgage score, if applicable;

        

        (25) a
          code
          indicating whether or not the Mortgage Loan has a prepayment penalty and
          if so,
          the amount and term thereof; 

        

        (26) the
          Current Appraised Value of the Mortgage Loan and Current LTV, if applicable;
          

        

        (27) a
          code
          indicating whether the Mortgage Loan is a MERS Mortgage Loan and the MERS
          number, if applicable;
          and

        

        (28) a
          code
          indicating whether or not the Mortgage Loan is the subject of a Lender
          Primary
          Mortgage Insurance Policy and the name of the related insurance carrier
          and the
          Lender Paid Mortgage Insurance Rate; 

        

        With
          respect to the Mortgage Loans in the aggregate, the Mortgage Loan Schedule
          attached to the related Term Sheet shall set forth the following information,
          as
          of the related Cut-off Date:

        

        (1) the
          number of Mortgage Loans;

        

        (2) the
          current aggregate outstanding principal balance of the Mortgage
          Loans;

        

        (3) the
          weighted average Mortgage Interest Rate of the Mortgage Loans; 

        

        (4) the
          weighted average maturity of the Mortgage Loans; and

        

        (5)
           the
          weighted average months to next Adjustment Date;

         

        Mortgage
          Note:
          The
          note or other evidence of the indebtedness of a Mortgagor secured by a
          Mortgage.

        

        Mortgaged
          Property:
          The
          underlying real property securing repayment of a Mortgage Note, consisting
          of a
          single parcel of real estate or contiguous parcels of real estate bearing
          one
          legal description and tax assessment number and considered to be real estate
          under the laws of the state in which such real property is located which
          may
          include condominium units and planned unit developments, improved by a
          residential dwelling; except that with respect to real property located
          in
          jurisdictions in which the use of leasehold estates for residential properties
          is a widely-accepted practice, a leasehold estate of the Mortgage, the
          term of
          which is equal to or longer than the term of the Mortgage. 

        

        Mortgagor:
          The
          obligor on a Mortgage Note. 

        

        Net
          Liquidation Proceeds:
          As to
          any Mortgage Loan, Liquidation Proceeds net of unreimbursed Servicing Advances,
          Servicing Fees and Monthly Advances and expenses incurred by the Company
          in
          connection with the liquidation of the Mortgage Loan and the related Mortgaged
          Property.

        

        Nonrecoverable
          Advance:
          Any
          advance previously made by the Company pursuant to Section 5.03 or any
          Servicing
          Advance which, in the good faith judgment of the Company, may not be ultimately
          recoverable by the Company from Liquidation Proceeds or otherwise. The
          determination by the Company that it has made a Nonrecoverable Advance,
          shall be
          evidenced by an Officer’s Certificate of the Company delivered to the Purchaser
          and the Master Servicer and detailing the reasons for such
          determination.

        

        OCC:
          Office
          of the Comptroller of the Currency, its successors and assigns.

        

        Officers'
          Certificate:
          A
          certificate signed by the Chairman of the Board, the Vice Chairman of the
          Board,
          the President, a Senior Vice President or a Vice President or by the Treasurer
          or the Secretary or one of the Assistant Treasurers or Assistant Secretaries
          of
          the Company, and delivered to the Purchaser as required by this
          Agreement.

        

        Opinion
          of Counsel:
          A
          written opinion of counsel, who may be an employee of the party on behalf
          of
          whom the opinion is being given, reasonably acceptable to the
          Purchaser.

        

        Origination
          Date:
          The
          date on which a Mortgage Loan funded, which date shall not, in connection
          with a
          Refinanced Mortgage Loan, be the date of the funding of the debt being
          refinanced, but rather the closing of the debt currently outstanding under
          the
          terms of the Mortgage Loan Documents. 

        

        OTS:
          Office
          of Thrift Supervision, its successors and assigns.

        

        Periodic
          Rate Cap:
          As to
          each adjustable rate Mortgage Loan, the maximum increase or decrease in
          the
          Mortgage Interest Rate on any Adjustment Date, as set forth in the related
          Mortgage Note and the related Mortgage Loan Schedule.

        

        Permitted
          Investments:
          Any one
          or more of the following obligations or securities:

        

        (i) direct
          obligations of, and obligations fully guaranteed 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; 

        

        (ii)
          (a)
          demand or time deposits, federal funds or bankers' acceptances issued by
          any
          depository institu-tion or trust company 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 banking authorities, provided that
          the
          commercial paper and/or the short-term deposit rating and/or the long-term
          unsecured debt obligations or deposits of such depository institution or
          trust
          company at the time of such investment or contractual commitment providing
          for
          such investment are rated in one of the two highest rating categories by
          each
          Rating Agency and (b) any other demand or time deposit or certificate of
          deposit
          that is fully insured by the FDIC;

        

        (iii)
          repurchase obligations with a term not to exceed thirty (30) days and with
          respect to (a) any security described in clause (i) above and entered into
          with
          a depository institution or trust company (acting as principal) described
          in
          clause (ii)(a) above;

        

        (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
          that are rated in one of the two highest rating categories by each Rating
          Agency
          at the time of such in-vestment or contractual commitment providing for
          such
          investment; provided,
          however,
          that
          securities issued by any particular corporation will not be Permitted
          Investments to the extent that investments therein will cause the then
          outstanding principal amount of secur-ities issued by such corporation
          and held
          as Permitted Investments to exceed 10% of the aggregate outstand-ing principal
          balances of all of the Mortgage Loans and Permitted Investments;

        

        (v)
          commercial paper (including both non-interest-bearing discount obligations
          and
          interest-bearing obliga-tions payable on demand or on a specified date
          not more
          than one year after the date of issuance there-of) which are rated in one
          of the
          two highest rating categories by each Rating Agency at the time of such
          investment;

        

        (vi)
          any
          other demand, money market or time deposit, obligation, security or investment
          as may be acceptable to each Rating Agency as evidenced in writing by each
          Rating Agency; and

        

        (vii)
          any
          money market funds the collateral of which consists of obligations fully
          guaranteed by the United States of America or any agency or instru-ment-al-ity
          of the United States of America the obligations of which are backed by
          the full
          faith and credit of the United States of America (which may include repurchase
          obligations secured by collateral described in clause (i)) and other securities
          and which money market funds are rated in one of the two highest rating
          categories by each Rating Agency. 

        

        provided,
          however,
          that no
          instrument or security shall be a Permitted Investment if such instrument
          or
          security evidences a right to receive only interest payments with respect
          to the
          ob-li-ga-tions underlying such instrument or if such security provides
          for
          payment of both principal and interest with a yield to matur-ity in excess
          of
          120% of the yield to maturity at par or if such investment or security
          is
          purchased at a price greater than par.

        

        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.

        

        Prepayment
          Interest Shortfall:
          With
          respect to any Remittance Date, for each Mortgage Loan that was the subject
          of a
          Principal Prepayment during the related Prepayment Period, an amount equal
          to
          the excess of one month’s interest at the applicable Mortgage Loan Remittance
          Rate on the amount of such Principal Prepayment over the amount of interest
          (adjusted to the Mortgage Loan Remittance Rate) actually paid by the related
          Mortgagor with respect to such Prepayment Period.

        

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

        

        Primary
          Mortgage Insurance Policy:
          Each
          primary policy of mortgage insurance represented to be in effect pursuant
          to
          Section 3.02(hh), or any replacement policy therefor obtained by the Company
          pursuant to Section 4.08.

        

        Prime
          Rate:
          The
          prime rate announced to be in effect from time to time as published as
          the
          average rate in the Wall Street Journal (Northeast Edition).

        

        Principal
          Prepayment:
          Any
          payment or other recovery of principal on a Mortgage Loan full or partial
          which
          is received in advance of its scheduled Due Date, including any prepayment
          penalty or premium thereon and which is not accompanied by an amount of
          interest
          representing scheduled interest due on any date or dates in any month or
          months
          subsequent to the month of prepayment. 

         

        Purchase
          Price:
          As
          defined in Section 2.02.

        

        Purchaser:
          EMC
          Mortgage Corporation, its successors in interest and assigns.

        

        Qualified
          Appraiser:
          An
          appraiser, duly appointed by the Company, who had no interest, direct or
          indirect in the Mortgaged Property or in any loan made on the security
          thereof,
          and whose compensation is not affected by the approval or disapproval of
          the
          Mortgage Loan, and such appraiser and the appraisal made by such appraiser
          both
          satisfy the requirements of Title XI of FIRREA and the regulations promulgated
          thereunder and the requirements of Fannie Mae, all as in effect on the
          date the
          Mortgage Loan was originated.

        

        Qualified
          Insurer:
          An
          insurance company duly qualified as such under the laws of the states in
          which
          the Mortgaged Properties are located, duly authorized and licensed in such
          states to transact the applicable insurance business and to write the insurance
          provided, approved as an insurer by Fannie Mae or FHLMC. 

        

        Rating
          Agency:
          Standard & Poor's, Fitch, Inc. or, in the event that some or all of the
          ownership of the Mortgage Loans is evidenced by mortgage-backed securities,
          the
          nationally recognized rating agencies issuing ratings with respect to such
          securities, if any.

         

        Refinanced
          Mortgage Loan:
          A
          Mortgage Loan which was made to a Mortgagor who owned the Mortgaged Property
          prior to the origination of such Mortgage Loan and the proceeds of which
          were
          used in whole or part to satisfy an existing mortgage.

        

        REMIC:
          A "real
          estate mortgage investment conduit," as such term is defined in Section
          860D of
          the Code.

        

        REMIC
          Provisions:
          The
          provisions of the federal income tax law relating to REMICs, which appear
          at
          Sections 860A through 860G of the Code, and the related provisions and
          regulations promulgated thereunder, as the foregoing may be in effect from
          time
          to time.

        

        Remittance
          Date:
          The
          18th day of any month, beginning with the First Remittance Date, or if
          such 18th
          day is not a Business Day, the first Business Day immediately preceding
          such
          18th day.

        

        

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

        

        REO
          Disposition Proceeds:
          Amounts
          received by the Company in connection with a related REO
          Disposition.

        

        REO
          Property:
          A
          Mortgaged Property acquired by the Company on behalf of the Purchaser as
          described in Section 4.13.

        

        Repurchase
          Price:
          With
          respect to any Mortgage Loan, a price equal to (i) the product of the greater
          of
          100% or the percentage of par as stated in the Confirmation multiplied
          by the
          Stated Principal
          Balance
          of such Mortgage Loan on the repurchase date, plus
          (ii)
          interest on such outstanding principal balance at the Mortgage Loan Remittance
          Rate from the last date through which interest has been paid and distributed
          to
          the Purchaser to the end of the month of repurchase, plus, (iii) third
          party
          expenses incurred in connection with the transfer of the Mortgage Loan
          being
          repurchased; less amounts received or advanced in respect of such repurchased
          Mortgage Loan which are being held in the Custodial Account for distribution
          in
          the month of repurchase.

        

        SAIF:
          The
          Savings Association Insurance Fund, or any successor thereto.

        

        Servicing
          Advances:
          All
          customary, reasonable and necessary "out of pocket" costs and expenses
          (including reasonable attorneys' fees and disbursements) incurred in the
          performance by the Company of its servicing obligations, including, but
          not
          limited to, the cost of (a) the preservation, restoration and protection
          of the
          Mortgaged Property, (b) any enforcement, administrative or judicial proceedings,
          or any legal work or advice specifically related to servicing the Mortgage
          Loans, including but not limited to, foreclosures, bankruptcies, condemnations,
          drug seizures, elections, foreclosures by subordinate or superior lienholders,
          and other legal actions incidental to the servicing of the Mortgage Loans
          (provided that such expenses are reasonable and that the Company specifies
          the
          Mortgage Loan(s) to which such expenses relate and, upon Purchaser’s request,
          provides documentation supporting such expense (which documentation would
          be
          acceptable to Fannie Mae), and provided further that any such enforcement,
          administrative or judicial proceeding does not arise out of a breach of
          any
          representation, warranty or covenant of the Company hereunder), (c) the
          management and liquidation of the Mortgaged Property if the Mortgaged Property
          is acquired in full or partial satisfaction of the Mortgage, (d) taxes,
          assessments, water rates, sewer rates and other charges which are or may
          become
          a lien upon the Mortgaged Property, and Primary Mortgage Insurance Policy
          premiums and fire and hazard insurance coverage, (e) any expenses reasonably
          sustained by the Company with respect to the liquidation of the Mortgaged
          Property in accordance with the terms of this Agreement and (f) compliance
          with
          the obligations under Section 4.08. 

        

        Servicing
          Fee:
          With
          respect to each Mortgage Loan, the amount of the annual fee the Purchaser
          shall
          pay to the Company, which shall, for a period of one full month, be equal
          to
          one-twelfth of the product of (a) the Servicing Fee Rate and (b) the outstanding
          principal balance of such Mortgage Loan. Such fee shall be payable monthly,
          computed on the basis of the same principal amount and period respecting
          which
          any related interest payment on a Mortgage Loan is computed. The obligation
          of
          the Purchaser to pay the Servicing Fee is limited to, and the Servicing
          Fee is
          payable solely from, the interest portion of such Monthly Payment collected
          by
          the Company, or as otherwise provided under Section 4.05 and in accordance
          with
          the Fannie Mae Guide(s). 

         

        Servicing
          Fee Rate:
          As set
          forth in the Term Sheet.

        

        Servicing
          File:
          With
          respect to each Mortgage Loan, the file retained by the Company, which
          may be in
          electronic media so long as original documents are not required for purposes
          of
          realization of Liquidation Proceeds, REO Disposition Proceeds, Condemnation
          Proceeds or Insurance Proceeds, consisting of all documents in the Mortgage
          File
          which are not delivered to the Purchaser and the Mortgage Loan Documents
          listed
          in Exhibit A, the originals of such Mortgage Loan Documents which are delivered
          to the Purchaser or its designee pursuant to Section 2.04.

        

        Servicing
          Officer:
          Any
          officer of the Company involved in, or responsible for, the administration
          and
          servicing of the Mortgage Loans whose name appears on a list of servicing
          officers furnished by the Company to the Purchaser upon request, as such
          list
          may from time to time be amended.

        

        Stated
          Principal Balance:
          As to
          each Mortgage Loan as of any date of determination, (i) the principal balance
          of
          such Mortgage Loan at the Cut-off Date after giving effect to payments
          of
          principal due on or before such date, whether or not received, minus (ii)
          all
          amounts previously distributed to the Purchaser with respect to the Mortgage
          Loan representing payments or recoveries of principal or advances in lieu
          thereof.

        

        Subservicer:
          Any
          subservicer which is subservicing the Mortgage Loans pursuant to a Subservicing
          Agreement. Any subservicer shall meet the qualifications set forth in Section
          4.01.

        

        Subservicing
          Agreement:
          An
          agreement between the Company and a Subservicer, if any, for the servicing
          of
          the Mortgage Loans.

        

        Term
          Sheet:
          A
          supplemental agreement in the form attached hereto as Exhibit I which shall
          be
          executed and delivered by the Company and the Purchaser to provide for
          the sale
          and servicing pursuant to the terms of this Agreement of the Mortgage Loans
          listed on Schedule I attached thereto, which supplemental agreement shall
          contain certain specific information relating to such sale of such Mortgage
          Loans and may contain additional covenants relating to such sale of such
          Mortgage Loans.

        

        

        ARTICLE
          II

        

        PURCHASE
          OF MORTGAGE LOANS; SERVICING OF MORTGAGE LOANS;

        RECORD
          TITLE AND POSSESSION OF MORTGAGE FILES;

        BOOKS
          AND RECORDS; CUSTODIAL AGREEMENT;

        DELIVERY
          OF MORTGAGE LOAN DOCUMENTS

        

        Section
          2.01 Agreement
          to Purchase.

        

        The
          Company agrees to sell and the Purchaser agrees to purchase the Mortgage
          Loans
          having an aggregate Stated Principal Balance on the related Cut-off Date
          set
          forth in the related Term Sheet in an amount as set forth in the Confirmation,
          or in such other amount as agreed by the Purchaser and the Company as evidenced
          by the actual aggregate Stated Principal Balance of the Mortgage Loans
          accepted
          by the Purchaser on the related Closing Date, with servicing retained by
          the
          Company. The Company shall deliver the related Mortgage Loan Schedule attached
          to the related Term Sheet for the Mortgage Loans to be purchased on the
          related
          Closing Date to the Purchaser at least two (2) Business Days prior to the
          related Closing Date. The Mortgage Loans shall be sold pursuant to this
          Agreement, and the related Term Sheet shall be executed and delivered on
          the
          related Closing Date.

        

        Section
          2.02 Purchase
          Price.

        

        The
          Purchase Price for each Mortgage Loan shall be the percentage of par as
          stated
          in the Confirmation (subject to adjustment as provided therein), multiplied
          by
          the Stated Principal Balance, as of the related Cut-off Date, of the Mortgage
          Loan listed on the related Mortgage Loan Schedule attached to the related
          Term
          Sheet, after application of scheduled payments of principal due on or before
          the
          related Cut-off Date whether or not collected. 

        

        In
          addition to the Purchase Price as described above, the Purchaser shall
          pay to
          the Company, at closing, accrued interest on the Stated Principal Balance
          of
          each Mortgage Loan as of the related Cut-off Date at the Mortgage Loan
          Remittance Rate of each Mortgage Loan from the related Cut-off Date through
          the
          day prior to the related Closing Date, inclusive.

        

        The
          Purchase Price plus accrued interest as set forth in the preceding paragraph
          shall be paid on the related Closing Date by wire transfer of immediately
          available funds.

        

        Purchaser
          shall be entitled to (1) all scheduled principal due after the related
          Cut-off
          Date, (2) all other recoveries of principal collected on or after the related
          Cut-off Date (provided, however, that all scheduled payments of principal
          due on
          or before the related Cut-off Date and collected by the Company or any
          successor
          servicer after the related Cut-off Date shall belong to the Company), and
          (3)
          all payments of interest on the Mortgage Loans net of applicable Servicing
          Fees
          (minus that portion of any such payment which is allocable to the period
          prior
          to the related Cut-off Date). The outstanding principal balance of each
          Mortgage
          Loan as of the related Cut-off Date is determined after application of
          payments
          of principal due on or before the related Cut-off Date whether or not collected,
          together with any unscheduled principal prepayments collected prior to
          the
          related Cut-off Date; provided, however, that payments of scheduled principal
          and interest prepaid for a Due Date beyond the related Cut-off Date shall
          not be
          applied to the principal balance as of the related Cut-off Date. Such prepaid
          amounts shall be the property of the Purchaser. The Company shall deposit
          any
          such prepaid amounts into the Custodial Account, which account is established
          for the benefit of the Purchaser for subsequent remittance by the Company
          to the
          Purchaser.

        

        Section
          2.03 Servicing
          of Mortgage Loans.

        

        Simultaneously
          with the execution and delivery of each Term Sheet, the Company does hereby
          agree to directly service the Mortgage Loans listed on the related Mortgage
          Loan
          Schedule attached to the related Term Sheet subject to the terms of this
          Agreement and the related Term Sheet. The rights of the Purchaser to receive
          payments with respect to the related Mortgage Loans shall be as set forth
          in
          this Agreement.

        

        Section
          2.04 Record
          Title and Possession of Mortgage Files;
          Maintenance of Servicing Files.

        

        As
          of the
          related Closing Date, the Company sold, transferred, assigned, set over
          and
          conveyed to the Purchaser, without recourse, and the Company hereby acknowledges
          that the Purchaser has, but subject to the terms of this Agreement and
          the
          related Term Sheet, all the right, title and interest of the Company in
          and to
          the Mortgage Loans. Company will deliver the Mortgage Files to the Custodian
          designated by Purchaser, on or before the related Closing Date, at the
          expense
          of the Company. The Company shall maintain a Servicing File, which shall
          contain
          all documents necessary to service the Mortgage Loans. The possession of
          each
          Servicing File by the Company is at the will of the Purchaser, for the
          sole
          purpose of servicing the related Mortgage Loan, and such retention and
          possession by the Company is in a custodial capacity only. From the related
          Closing Date, the ownership of each Mortgage Loan, including the Mortgage
          Note,
          the Mortgage, the contents of the related Mortgage File and all rights,
          benefits, proceeds and obligations arising therefrom or in connection therewith,
          has been vested in the Purchaser. All rights arising out of the Mortgage
          Loans
          including, but not limited to, all funds received on or in connection with
          the
          Mortgage Loans and all records or documents with respect to the Mortgage
          Loans
          prepared by or which come into the possession of the Company shall be received
          and held by the Company in trust for the benefit of the Purchaser as the
          owner
          of the Mortgage Loans. Any portion of the Mortgage Files retained by the
          Company
          shall be appropriately identified in the Company's computer system to clearly
          reflect the ownership of the Mortgage Loans by the Purchaser. The Company
          shall
          release its custody of the contents of the Mortgage Files only in accordance
          with written instructions of the Purchaser, except when such release is
          required
          as incidental to the Company's servicing of the Mortgage Loans or is in
          connection with a repurchase of any Mortgage Loan or Loans with respect
          thereto
          pursuant to this Agreement and the related Term Sheet, such written instructions
          shall not be required.

        

        Section
          2.05  Books
          and Records.

        

        The
          sale
          of each Mortgage Loan has been reflected on the Company's balance sheet
          and
          other financial statements as a sale of assets by the Company. The Company
          shall
          be responsible for maintaining, and shall maintain, a complete set of books
          and
          records for the Mortgage Loans that shall be appropriately identified in
          the
          Company's computer system to clearly reflect the ownership of the Mortgage
          Loan
          by the Purchaser. In particular, the Company shall maintain in its possession,
          available for inspection by the Purchaser, or its designee and shall deliver
          to
          the Purchaser upon demand, evidence of compliance with all federal, state
          and
          local laws, rules and regulations, and requirements of Fannie Mae or FHLMC,
          as
          applicable, including but not limited to documentation as to the method
          used in
          determining the applicability of the provisions of the Flood Disaster Protection
          Act of 1973, as amended, to the Mortgaged Property, documentation evidencing
          insurance coverage of any condominium project as required by Fannie Mae
          or
          FHLMC, and periodic inspection reports as required by Section 4.13. To
          the
          extent that original documents are not required for purposes of realization
          of
          Liquidation Proceeds or Insurance Proceeds, documents maintained by the
          Company
          may be in the form of microfilm or microfiche.

        

        The
          Company shall maintain with respect to each Mortgage Loan and shall make
          available for inspection by any Purchaser or its designee the related Servicing
          File during the time the Purchaser retains ownership of a Mortgage Loan
          and
          thereafter in accordance with applicable laws and regulations.

        

        In
          addition to the foregoing, Company shall provide to any supervisory agents
          or
          examiners that regulate Purchaser, including but not limited to, the OTS,
          the
          FDIC and other similar entities, access, during normal business hours,
          upon
          reasonable advance notice to Company and without charge to Company or such
          supervisory agents or examiners, to any documentation regarding the Mortgage
          Loans that may be required by any applicable regulator.

        

        Section
          2.06. Transfer
          of Mortgage Loans.

        

        The
          Company shall keep at its servicing office books and records in which,
          subject
          to such reasonable regulations as it may prescribe, the Company shall note
          transfers of Mortgage Loans. No transfer of a Mortgage Loan may be made
          unless
          such transfer is in compliance with the terms hereof. For the purposes
          of this
          Agreement, the Company shall be under no obligation to deal with any person
          with
          respect to this Agreement or any Mortgage Loan unless a notice of the transfer
          of such Mortgage Loan has been delivered to the Company in accordance with
          this
          Section 2.06 and the books and records of the Company show such person
          as the
          owner of the Mortgage Loan. The Purchaser may, subject to the terms of
          this
          Agreement, sell and transfer one or more of the Mortgage Loans, provided,
          however, that the transferee will not be deemed to be a Purchaser hereunder
          binding upon the Company unless such transferee shall agree in writing
          to be
          bound by the terms of this Agreement and an original counterpart of the
          instrument of transfer in an Assignment and Assumption of this Agreement
          substantially in the form of Exhibit D hereto executed by the transferee
          shall
          have been delivered to the Company. The Purchaser also shall advise the
          Company
          of the transfer. Upon receipt of notice of the transfer, the Company shall
          mark
          its books and records to reflect the ownership of the Mortgage Loans of
          such
          assignee, and the previous Purchaser shall be released from its obligations
          hereunder with respect to the Mortgage Loans sold or transferred. 

        

        Section
          2.07 Delivery
          of Mortgage Loan Documents.

        

        The
          Company shall deliver and release to the Purchaser or its designee the
          Mortgage
          Loan Documents in accordance with the terms of this Agreement and the related
          Term Sheet. The documents enumerated as items (1), (2), (3), (4), (5),
          (6), (7),
          (8), (9) and (16) in Exhibit A hereto shall be delivered by the Company
          to the
          Purchaser or its designee no later than three (3) Business Days prior to
          the
          related Closing Date pursuant to a bailee letter agreement. All other documents
          in Exhibit A hereto, together with all other documents executed in connection
          with the Mortgage Loan that Company may have in its possession, shall be
          retained by the Company in trust for the Purchaser. If the Company cannot
          deliver the original recorded Mortgage Loan Documents or the original policy
          of
          title insurance, including riders and endorsements thereto, on the related
          Closing Date, the Company shall, promptly upon receipt thereof and in any
          case
          not later than one hundred twenty (120) days from the related Closing Date,
          deliver such original documents, including original recorded documents,
          to the
          Purchaser or its designee (unless the Company is delayed in making such
          delivery
          by reason of the fact that such documents shall not have been returned
          by the
          appropriate recording office). If delivery is not completed within one
          hundred
          twenty (120) days solely due to delays in making such delivery by reason
          of the
          fact that such documents shall not have been returned by the appropriate
          recording office, Company shall deliver such document to Purchaser, or
          its
          designee, within such time period as specified in a Company's Officer's
          Certificate. In the event that documents have not been received by the
          date
          specified in the Company's Officer's Certificate, a subsequent Company's
          Officer's Certificate shall be delivered by such date specified in the
          prior
          Company's Officer's Certificate, stating a revised date for receipt of
          documentation. The procedure shall be repeated until the documents have
          been
          received and delivered. If delivery is not completed within one hundred
          eighty
          (180) days solely due to delays in making such delivery by reason of the
          fact
          that such documents shall not have been returned by the appropriate recording
          office, the Company shall continue to use its best efforts to effect delivery
          as
          soon as possible thereafter, provided that if such documents are not delivered
          by the 270th day from the date of the related Closing Date, the Company
          shall
          repurchase the related Mortgage Loans at the Repurchase Price in accordance
          with
          Section 3.03 hereof. 

        

        For
          each
          Mortgage Loan that is not a MERS Mortgage Loan, the Company shall pay all
          initial recording fees, if any, for the assignments of mortgage and any
          other
          fees in connection with the transfer of all original documents to the Purchaser
          or its designee. Company shall prepare, in recordable form, all assignments
          of
          mortgage necessary to assign the Mortgage Loans to Purchaser, or its designee.
          Company shall be responsible for recording the assignments of mortgage.
          

        

        In
          addition, in connection with the assignment of any MERS Mortgage Loan,
          the
          Company agrees that it will cause, at its own expense, the MERS® System to
          indicate that such Mortgage Loans have been assigned by the Company to
          the
          Purchaser in accordance with this Agreement by including (or deleting,
          in the
          case of Mortgage Loans which are repurchased in accordance with this Agreement)
          in such computer files the information required by the MERS® System to identify
          the Purchaser of such Mortgage Loans. The Company further agrees that it
          will
          not alter the information referenced in this paragraph with respect to
          any
          Mortgage Loan during the term of this Agreement unless and until such Mortgage
          Loan is repurchased in accordance with the terms of this Agreement.

        

        Company
          shall provide an original or duplicate original of the title insurance
          policy to
          Purchaser or its designee no later than ninety (90) days of the receipt
          of the
          recorded documents from the applicable recording office. 

        

        Any
          review by the Purchaser, or its designee, of the Mortgage Files shall in
          no way
          alter or reduce the Company's obligations hereunder.

        

        If
          the
          Purchaser or its designee discovers any defect with respect to a Mortgage
          File,
          the Purchaser shall, or shall cause its designee to, give written specification
          of such defect to the Company which may be given in the exception report
          or the
          certification delivered pursuant to this Section 2.07, or otherwise in
          writing
          and the Company shall cure or repurchase such Mortgage Loan in accordance
          with
          Section 3.03.

        

        The
          Company shall forward to the Purchaser, or its designee, original documents
          evidencing an assumption, modification, consolidation or extension of any
          Mortgage Loan entered into in accordance with Section 4.01 or 6.01 within
          one
          week of their execution; provided, however, that the Company shall provide
          the
          Purchaser, or its designee, with a certified true copy of any such document
          submitted for recordation within one week of its execution, and shall provide
          the original of any document submitted for recordation or a copy of such
          document certified to be a true and complete copy of the original within
          sixty
          (60) days of its submission for recordation.

        

        From
          time
          to time the Company may have a need for Mortgage Loan Documents to be released
          from Purchaser, or its designee. Purchaser shall, or shall cause its designee,
          upon the written request of the Company, within ten (10) Business Days,
          deliver
          to the Company, any requested documentation previously delivered to Purchaser
          as
          part of the Mortgage File, provided that such documentation is promptly
          returned
          to Purchaser, or its designee, when the Company no longer requires possession
          of
          the document, and provided that during the time that any such documentation
          is
          held by the Company, such possession is in trust for the benefit of Purchaser.
          Company shall indemnify Purchaser, and its designee, from and against any
          and
          all losses, claims, damages, penalties, fines, forfeitures, costs and expenses
          (including court costs and reasonable attorney's fees) resulting from or
          related
          to the loss, damage, or misplacement of any documentation delivered to
          Company
          pursuant to this paragraph.

        

        Section
          2.08 Quality
          Control Procedures.

        

        The
          Company must have an internal quality control program that verifies, on
          a
          regular basis, the existence and accuracy of the legal documents, credit
          documents, property appraisals, and underwriting decisions. The program
          must be
          capable of evaluating and monitoring the overall quality of its loan production
          and servicing activities. The program is to ensure that the Mortgage Loans
          are
          originated and serviced in accordance with prudent mortgage banking practices
          and accounting principles; guard against dishonest, fraudulent, or negligent
          acts; and guard against errors and omissions by officers, employees, or
          other
          authorized persons.

        

        Section
          2.09
          Near-term Principal Prepayments; Near Term Payment Defaults

        

        In
          the
          event any Principal Prepayment in full is made by a Mortgagor on or prior
          to
          three months after the related Closing Date, the Company shall remit to
          the
          Purchaser an amount equal to the excess, if any, of the Purchase Price
          Percentage over par multiplied by the amount of such Principal Prepayment.
          Such
          remittance shall be made by the Company to Purchaser no later than the
          third
          Business Day following receipt of such Principal Prepayment by the Company.
          

        

        In
          the
          event either of the first three (3) scheduled Monthly Payments which are
          due
          under any Mortgage Loan after the related Cut-off Date are not made during
          the
          month in which such Monthly Payments are due, then not later than five
          (5)
          Business Days after notice to the Company by Purchaser (and at Purchaser’s sole
          option), the Company, shall repurchase such Mortgage Loan from the Purchaser
          pursuant to the repurchase provisions contained in this Subsection
          3.03.

        

        

        Section
          2.10  Modification
          of Obligations.
          Purchaser may, without any notice to Company, extend, compromise, renew,
          release, change, modify, adjust or alter, by operation of law or otherwise,
          any
          of the obligations of the Mortgagors or other persons obligated under a
          Mortgage
          Loan without releasing or otherwise affecting the obligations of Company
          under
          this Agreement, or with respect to such Mortgage Loan, except to the extent
          Purchaser’s extension, compromise, release, change, modification, adjustment, or
          alteration affects Company’s ability to collect the Mortgage Loan or realize on
          the security of the Mortgage, but then only to the extent such action has
          such
          effect or reduces the Servicing Fee.

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        

        

        

        

        ARTICLE
          III

        

        REPRESENTATIONS
          AND WARRANTIES OF

        THE
          COMPANY; REPURCHASE; REVIEW OF MORTGAGE LOANS

        

        Section
          3.01 Representations
          and Warranties of the Company. 

        

        The
          Company represents, warrants and covenants to the Purchaser that, as of
          the
          related Closing Date or as of such date specifically provided
          herein:

        

        (a) The
          Company is a corporation, duly organized, validly existing and in good
          standing
          under the laws of the State of Delaware and has all licenses necessary
          to carry
          out its business as now being conducted, and is licensed and qualified
          to
          transact business in and is in good standing under the laws of each state
          in
          which any Mortgaged Property is located or is otherwise exempt under applicable
          law from such licensing or qualification or is otherwise not required under
          applicable law to effect such licensing or qualification and no demand
          for such
          licensing or qualification has been made upon such Company by any such
          state,
          and in any event such Company is in compliance with the laws of any such
          state
          to the extent necessary to ensure the enforceability of each Mortgage Loan
          and
          the servicing of the Mortgage Loans in accordance with the terms of this
          Agreement;

         

        (b)
          The
          Company has the full power and authority and legal right to hold, transfer
          and
          convey each Mortgage Loan, to sell each Mortgage Loan and to execute, deliver
          and perform, and to enter into and consummate all transactions contemplated
          by
          this Agreement and the related Term Sheet and to conduct its business as
          presently conducted, has duly authorized the execution, delivery and performance
          of this Agreement and the related Term Sheet and any agreements contemplated
          hereby, has duly executed and delivered this Agreement and the related
          Term
          Sheet, and any agreements contemplated hereby, and this Agreement and the
          related Term Sheet and each Assignment to the Purchaser and any agreements
          contemplated hereby, constitutes a legal, valid and binding obligation
          of the
          Company, enforceable against it in accordance with its terms, and all requisite
          corporate action has been taken by the Company to make this Agreement and
          the
          related Term Sheet and all agreements contemplated hereby valid and binding
          upon
          the Company in accordance with their terms; 

        

        (c)
          Neither the execution and delivery of this Agreement and the related Term
          Sheet,
          nor the origination or purchase of the Mortgage Loans by the Company, the
          sale
          of the Mortgage Loans to the Purchaser, the consummation of the transactions
          contemplated hereby, or the fulfillment of or compliance with the terms
          and
          conditions of this Agreement and the related Term Sheet will conflict with
          any
          of the terms, conditions or provisions of the Company's charter or by-laws
          or
          materially conflict with or result in a material breach of any of the terms,
          conditions or provisions of any legal restriction or any agreement or instrument
          to which the Company is now a party or by which it is bound, or constitute
          a
          default or result in an acceleration under any of the foregoing, or result
          in
          the material violation of any law, rule, regulation, order, judgment or
          decree
          to which the Company or its properties are subject, or impair the ability
          of the
          Purchaser to realize on the Mortgage Loans.

        

        (d)
          There
          is no litigation, suit, proceeding or investigation pending or, to the
          best of
          Company’s knowledge, threatened, or any order or decree outstanding, with
          respect to the Company which, either in any one instance or in the aggregate,
          is
          reasonably likely to have a material adverse effect on the sale of the
          Mortgage
          Loans, the execution, delivery, performance or enforceability of this Agreement
          and the related Term Sheet, or which is reasonably likely to have a material
          adverse effect on the financial condition of the Company.

        

        (e)
          No
          consent, approval, authorization or order of any court or governmental
          agency or
          body is required for the execution, delivery and performance by the Company
          of
          or compliance by the Company with this Agreement or the related Term Sheet,
          or
          the sale of the Mortgage Loans and delivery of the Mortgage Files to the
          Purchaser or the consummation of the transactions contemplated by this
          Agreement
          or the related Term Sheet, except for consents, approvals, authorizations
          and
          orders which have been obtained;

        

        (f)
          The
          consummation of the transactions contemplated by this Agreement or the
          related
          Term Sheet is in the ordinary course of business of the Company and Company,
          and
          the transfer, assignment and conveyance of the Mortgage Notes and the Mortgages
          by the Company pursuant to this Agreement or the related Term Sheet are
          not
          subject to bulk transfer or any similar statutory provisions in effect
          in any
          applicable jurisdiction;

        

        (g)
          The
          origination and servicing practices used by the Company and any prior originator
          or servicer with respect to each Mortgage Note and Mortgage have been legal
          and
          in accordance with applicable laws and regulations and the Mortgage Loan
          Documents, and in all material respects proper and prudent in the mortgage
          origination and servicing business. Each Mortgage Loan has been serviced
          in all
          material respects with Accepted Servicing Practices. With respect to escrow
          deposits and payments that the Company, on behalf of an investor, is entitled
          to
          collect, all such payments are in the possession of, or under the control
          of,
          the Company, and there exist no deficiencies in connection therewith for
          which
          customary arrangements for repayment thereof have not been made. All escrow
          payments have been collected in full compliance with state and federal
          law and
          the provisions of the related Mortgage Note and Mortgage. As to any Mortgage
          Loan that is the subject of an escrow, escrow of funds is not prohibited
          by
          applicable law and has been established in an amount sufficient to pay
          for every
          escrowed item that remains unpaid and has been assessed but is not yet
          due and
          payable. No escrow deposits or other charges or payments due under the
          Mortgage
          Note have been capitalized under any Mortgage or the related Mortgage
          Note;

        

        (h) The
          Company has no knowledge of any circumstances or condition with respect
          to the
          Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s credit
          standing that could reasonably be expected to cause investors to regard
          the
          Mortgage Loan as an unacceptable investment, cause such Mortgage Loan to
          become
          delinquent or adversely affect the value or the marketability of the Mortgage
          Loan. The Company did not select the Mortgage Loans sold to Purchaser based
          on
          any adverse selection of mortgage loans in its portfolio that met Purchaser’s
          purchase parameters for this transaction (as such parameters are set forth
          in
          the Confirmation), including without limitation, the location or condition
          of
          the Mortgaged Property, payment pattern of the borrower or any other factor
          that
          may adversely affect the expected cost of foreclosing, owning or holding
          the
          Mortgage Loans or related Mortgaged Property or collecting the insurance
          or
          guarantee proceeds related thereto; 

        

        (i) The
          Company will treat the sale of the Mortgage Loans to the Purchaser as a
          sale for
          reporting and accounting purposes and, to the extent appropriate, for federal
          income tax purposes; 

        

        (j) Company
          is an approved seller/servicer of residential mortgage loans for Fannie
          Mae,
          FHLMC and HUD, with such facilities, procedures and personnel necessary
          for the
          sound servicing of such mortgage loans. The Company is duly qualified,
          licensed,
          registered and otherwise authorized under all applicable federal, state
          and
          local laws, and regulations, if applicable, and is in good standing to
          sell
          mortgage loans to and service mortgage loans for Fannie Mae and FHLMC and
          no
          event has occurred which would make Company unable to comply with eligibility
          requirements or which would require notification to either Fannie Mae or
          FHLMC;

        

        (k) The
          Company does not believe, nor does it have any cause or reason to believe,
          that
          it cannot perform each and every covenant contained in this Agreement or
          the
          related Term Sheet. The Company is solvent and the sale of the Mortgage
          Loans
          will not cause the Company to become insolvent. The sale of the Mortgage
          Loans
          is not undertaken with the intent to hinder, delay or defraud any of the
          Company's creditors;

        

        (l) No
          statement, tape, diskette, form, report or other document prepared by,
          or on
          behalf of, Company pursuant to this Agreement or the related Term Sheet
          or in
          connection with the transactions contemplated hereby, contains or will,
          as of
          the date such documentation is delivered by the Company, contain any statement
          that is or will be inaccurate or misleading in any material respect;

        

        (m)
           The
          Company acknowledges and agrees that the Servicing Fee represents reasonable
          compensation for performing such services and that the entire Servicing
          Fee
          shall be treated by the Company, for accounting and tax purposes, as
          compensation for the servicing and administration of the Mortgage Loans
          pursuant
          to this Agreement. In the opinion of Company, the consideration received
          by
          Company upon the sale of the Mortgage Loans to Purchaser under this Agreement
          and the related Term Sheet constitutes fair consideration for the Mortgage
          Loans
          under current market conditions. 

        

        (n)
           Company
          has delivered to the Purchaser financial statements of its parent, for
          its last
          two complete fiscal years. All such financial information fairly presents
          the
          pertinent results of operations and financial position for the period identified
          and has been prepared in accordance with GAAP consistently applied throughout
          the periods involved, except as set forth in the notes thereto. There has
          been
          no change in the business, operations, financial condition, properties
          or assets
          of the Company since the date of the Company’s financial information that would
          have a material adverse effect on its ability to perform its obligations
          under
          this Agreement;

        

        (o)
           The
          Company has not dealt with any broker, investment banker, agent or other
          person
          that may be entitled to any commission or compensation in connection with
          the
          sale of the Mortgage Loans; 

        

        Section
          3.02 Representations
          and Warranties as to Individual
          Mortgage Loans.

        

        References
          in this Section to percentages of Mortgage Loans refer in each case to
          the
          percentage of the aggregate Stated Principal Balance of the Mortgage Loans
          as of
          the related Cut-off Date, based on the outstanding Stated Principal Balances
          of
          the Mortgage Loans as of the related Cut-off Date, and giving effect to
          scheduled Monthly Payments due on or prior to the related Cut-off Date,
          whether
          or not received. References to percentages of Mortgaged Properties refer,
          in
          each case, to the percentages of expected aggregate Stated Principal Balances
          of
          the related Mortgage Loans (determined as described in the preceding sentence).
          The Company hereby represents and warrants to the Purchaser, as to each
          Mortgage
          Loan, as of the related Closing Date as follows:

        

          
          (a)
The
          information set forth in the Mortgage Loan Schedule attached to the related
          Term
          Sheet is true, complete and correct in all material respects as of the
          related
          Cut-Off Date;

        

        (b) The
          Mortgage creates a valid, subsisting and enforceable first lien or a first
          priority ownership interest in an estate in fee simple in real property
          securing
          the related Mortgage Note subject to principles of equity, bankruptcy,
          insolvency and other laws of general application affecting the rights of
          creditors;

        

        (c)
          All
          payments due prior to the related Cut-off Date for such Mortgage Loan have
          been
          made as of the related Closing Date; the Mortgage Loan has not been dishonored;
          there are no material defaults under the terms of the Mortgage Loan; the
          Company
          has not advanced its own funds, or induced, solicited or knowingly received
          any
          advance of funds from a party other than the owner of the Mortgaged Property
          subject to the Mortgage, directly or indirectly, for the payment of any
          amount
          required by the Mortgage Loan. As of the related Closing Date, all of the
          Mortgage Loans will have an actual Interest Paid to Date of their related
          Cut-off Date(or later) and will be due for the scheduled monthly payment
          next
          succeeding the Cut-off Date (or later), as evidenced by a posting to Company's
          servicing collection system. No payment under any Mortgage Loan is delinquent
          as
          of the related Closing Date nor has any scheduled payment been delinquent
          at any
          time during the twelve (12) months prior to the month of the related Closing
          Date. For purposes of this paragraph, a Mortgage Loan will be deemed delinquent
          if any payment due thereunder was not paid by the Mortgagor in the month
          such
          payment was due;

        

        (d)
           The
          origination and collection practices used by the Company with respect to
          each
          Mortgage Note and Mortgage have been in all respects legal, proper, prudent
          and
          customary in the mortgage origination and servicing industry. The Mortgage
          Loan
          has been serviced by the Company and any predecessor servicer in accordance
          with
          the terms of the Mortgage Note. With respect to escrow deposits and Escrow
          Payments, if any, all such payments are in the possession of, or under
          the
          control of, the Company and there exist no deficiencies in connection therewith
          for which customary arrangements for repayment thereof have not been made.
          No
          escrow deposits or Escrow Payments or other charges or payments due the
          Company
          have been capitalized under any Mortgage or the related Mortgage Note and
          no
          such escrow deposits or Escrow Payments are being held by the Company for
          any
          work on a Mortgaged Property which has not been completed;

        

        (e)
          The
          terms of the Mortgage Note and the Mortgage have not been impaired, waived,
          altered or modified in any respect, except by written instruments which
          have
          been recorded to the extent any such recordation is required by law, or,
          necessary to protect the interest of the Purchaser. No instrument of waiver,
          alteration or modification has been executed except in connection with
          a
          modification agreement and which modification agreement is part of the
          Mortgage
          File and the terms of which are reflected in the related Mortgage Loan
          Schedule,
          and no Mortgagor has been released, in whole or in part, from the terms
          thereof
          except in connection with an assumption agreement and which assumption
          agreement
          is part of the Mortgage File and the terms of which are reflected in the
          related
          Mortgage Loan Schedule; the substance of any such waiver, alteration or
          modification has been approved by the issuer of any related Primary Mortgage
          Insurance Policy, Lender Primary Mortgage Insurance Policy and title insurance
          policy, to the extent required by the related policies;

        

        (f)
          The
          Mortgage Note and the Mortgage are not subject to any right of rescission,
          set-off, counterclaim or defense, including, without limitation, the defense
          of
          usury, nor will the operation of any of the terms of the Mortgage Note
          or the
          Mortgage, or the exercise of any right thereunder, render the Mortgage
          Note or
          Mortgage unenforceable, in whole or in part, or subject to any right of
          rescission, set-off, counterclaim or defense, including the defense of
          usury,
          and no such right of rescission, set-off, counterclaim or defense has been
          asserted with respect thereto; and as of the related Closing Date the Mortgagor
          was not a debtor in any state or federal bankruptcy or insolvency
          proceeding;

        

        (g)
          All
          buildings or other customarily insured improvements upon the Mortgaged
          Property
          are insured by an insurer acceptable under the Fannie Mae or FHLMC Guides,
          against loss by fire, hazards of extended coverage and such other hazards
          as are
          provided for in the Fannie Mae or FHLMC Guide, as well as all additional
          requirements set forth in Section 4.10 of this Agreement. All such standard
          hazard policies are in full force and effect and contain a standard mortgagee
          clause naming the Company and its successors in interest and assigns as
          loss
          payee and such clause is still in effect and all premiums due thereon have
          been
          paid. If required by the Flood Disaster Protection Act of 1973, as amended,
          the
          Mortgage Loan is covered by a flood insurance policy meeting the requirements
          of
          the current guidelines of the Federal Insurance Administration which policy
          conforms to Fannie Mae or FHLMC requirements and was issued by an insurer
          acceptable to Fannie Mae or FHLMC, as well as all additional requirements
          set
          forth in Section 4.10 of this Agreement. The Mortgage obligates the Mortgagor
          thereunder to maintain all such insurance at the Mortgagor's cost and expense,
          and on the Mortgagor's failure to do so, authorizes the holder of the Mortgage
          to maintain such insurance at the Mortgagor's cost and expense and to seek
          reimbursement therefor from the Mortgagor. Neither the Company (nor any
          prior
          originator or servicer of any of the Mortgage Loans) nor any Mortgagor
          has
          engaged in any act or omission which has impaired or would impair the coverage
          of any such policy, the benefits of the endorsement provided for herein,
          or the
          validity and binding effect of either;

        

        (h)
          Any
          and all requirements of any federal, state or local law including, without
          limitation, usury, truth-in-lending, real estate settlement procedures,
          consumer
          credit protection, equal credit opportunity or disclosure laws applicable
          to the
          Mortgage Loan have been complied with in all material respects; none of
          the
          Mortgage Loans are classified as a (a) a “high cost” loan under the Home
          Ownership and Equity Protection Act of 1994 or (b) a “high cost”, “threshold”,
          or “predatory” loan under any other applicable state, federal or local law; the
          Company maintains, and shall maintain, evidence of such compliance as required
          by applicable law or regulation and shall make such evidence available
          for
          inspection at the Company's office during normal business hours upon reasonable
          advance notice;

        

        (i)
          The
          Mortgage has not been satisfied, canceled or subordinated, in whole or
          in part,
          or rescinded, and the Mortgaged Property has not been released from the
          lien of
          the Mortgage, in whole or in part nor has any instrument been executed
          that
          would effect any such release, cancellation, subordination or rescission.
          The
          Company has not waived the performance by the Mortgagor of any action,
          if the
          Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
          in default, nor has the Company waived any default resulting from any action
          or
          inaction by the Mortgagor;

        

        (j) The
          Mortgage is a valid, subsisting, enforceable and perfected first lien on
          the
          Mortgaged Property, including all buildings on the Mortgaged Property and
          all
          installations and mechanical, electrical, plumbing, heating and air conditioning
          systems affixed to such buildings, and all additions, alterations and
          replacements made at any time with respect to the foregoing securing the
          Mortgage Note's original principal balance subject to principles of equity,
          bankruptcy, insolvency and other laws of general application affecting
          the
          rights of creditors. The Mortgage and the Mortgage Note do not contain
          any
          evidence of any security interest or other interest or right thereto. Such
          lien
          is free and clear of all adverse claims, liens and encumbrances having
          priority
          over the first lien of the Mortgage subject only to (1) the lien of
          non-delinquent current real property taxes and assessments not yet due
          and
          payable, (2) covenants, conditions and restrictions, rights of way, easements
          and other matters of the public record as of the date of recording which
          are
          acceptable to mortgage lending institutions generally and either (A) which
          are
          referred to in the lender’s title insurance policy delivered to the originator
          or otherwise considered in the appraisal made for the originator of the
          Mortgage
          Loan, or (B) which do not adversely affect the residential use or Appraised
          Value of the Mortgaged Property as set forth in such appraisal, and (3)
          other
          matters to which like properties are commonly subject which do not individually
          or in the aggregate materially interfere with the benefits of the security
          intended to be provided by the Mortgage or the use, enjoyment, value or
          marketability of the related Mortgaged Property. Any security agreement,
          chattel
          mortgage or equivalent document related to and delivered in connection
          with the
          Mortgage Loan establishes and creates a valid, subsisting, enforceable
          and
          perfected first lien and first priority security interest on the property
          described therein, and the Company has the full right to sell and assign
          the
          same to the Purchaser;

        

        (k)
          The
          Mortgage Note and the related Mortgage are original and genuine and each
          is the
          legal, valid and binding obligation of the maker thereof, enforceable in
          all
          respects in accordance with its terms subject to principles of equity,
          bankruptcy, insolvency and other laws of general application affecting
          the
          rights of creditors, and the Company has taken all action necessary to
          transfer
          such rights of enforceability to the Purchaser. All parties to the Mortgage
          Note
          and the Mortgage had the legal capacity to enter into the Mortgage Loan
          and to
          execute and deliver the Mortgage Note and the Mortgage. The
          Mortgage Loan Documents are on forms acceptable to Fannie Mae and
          FHLMC.
          The
          Mortgage Note and the Mortgage have been duly and properly executed by
          such
          parties. No fraud, error, omission, misrepresentation, negligence or similar
          occurrence with respect to a Mortgage Loan has taken place on the part
          of
          Company or the Mortgagor, or, to the best of Company’s knowledge, information
          and belief, and after due inquiry, on the part of any other party involved
          in
          the origination or servicing of the Mortgage Loan. The proceeds of the
          Mortgage
          Loan have been fully disbursed and there is no requirement for future advances
          thereunder, and any and all requirements as to completion of any on-site
          or
          off-site improvements and as to disbursements of any escrow funds therefor
          have
          been complied with. All costs, fees and expenses incurred in making or
          closing
          the Mortgage Loan and the recording of the Mortgage were paid, and the
          Mortgagor
          is not entitled to any refund of any amounts paid or due under the Mortgage
          Note
          or Mortgage;

        

        (l)
          The
          Company is the sole owner and holder of the Mortgage Loan and the indebtedness
          evidenced by the Mortgage Note. Upon the sale of the Mortgage Loan to the
          Purchaser, the Company will retain the Mortgage File or any part thereof
          with
          respect thereto not delivered to the Purchaser or the Purchaser’s designee in
          trust only for the purpose of servicing and supervising the servicing of
          the
          Mortgage Loan. Immediately prior to the transfer and assignment to the
          Purchaser, the Mortgage Loan, including the Mortgage Note and the Mortgage,
          were
          not subject to an assignment, sale or pledge to any person other than Purchaser,
          and the Company had good and marketable title to and was the sole owner
          thereof
          and had full right to transfer and sell the Mortgage Loan to the Purchaser
          free
          and clear of any encumbrance, equity, lien, pledge, charge, claim or security
          interest and has the full right and authority subject to no interest or
          participation of, or agreement with, any other party, to sell and assign
          the
          Mortgage Loan pursuant to this Agreement and following the sale of the
          Mortgage
          Loan, the Purchaser will own such Mortgage Loan free and clear of any
          encumbrance, equity, participation interest, lien, pledge, charge, claim
          or
          security interest. The Company intends to relinquish all rights to possess,
          control and monitor the Mortgage Loan, except for the purposes of servicing
          the
          Mortgage Loan as set forth in this Agreement. After the related Closing
          Date,
          the Company will not have any right to modify or alter the terms of the
          sale of
          the Mortgage Loan and the Company will not have any obligation or right
          to
          repurchase the Mortgage Loan or substitute another Mortgage Loan, except
          as
          provided in this Agreement, or as otherwise agreed to by the Company and
          the
          Purchaser;

        

        (m)
          Each
          Mortgage Loan is covered by an ALTA lender's title insurance policy or
          other
          generally acceptable form of policy or insurance acceptable to Fannie Mae
          or
          FHLMC (including adjustable rate endorsements), issued by a title insurer
          acceptable to Fannie Mae or FHLMC and qualified to do business in the
          jurisdiction where the Mortgaged Property is located, insuring (subject
          to the
          exceptions contained in (j)(1), (2) and (3) above) the Company, its successors
          and assigns, as to the first priority lien of the Mortgage in the original
          principal amount of the Mortgage Loan and against any loss by reason of
          the
          invalidity or unenforceability of the lien resulting from the provisions
          of the
          Mortgage providing for adjustment in the Mortgage Interest Rate and Monthly
          Payment. Where required by state law or regulation, the Mortgagor has been
          given
          the opportunity to choose the carrier of the required mortgage title insurance.
          The Company, its successors and assigns, is the sole insured of such lender's
          title insurance policy, such title insurance policy has been duly and validly
          endorsed to the Purchaser or the assignment to the Purchaser of the Company's
          interest therein does not require the consent of or notification to the
          insurer
          and such lender's title insurance policy is in full force and effect and
          will be
          in full force and effect upon the consummation of the transactions contemplated
          by this Agreement. No claims have been made under such lender's title insurance
          policy, and no prior holder or servicer of the related Mortgage, including
          the
          Company, nor any Mortgagor, has done, by act or omission, anything which
          would
          impair the coverage of such lender's title insurance policy;

        

        (n)
          There
          is no default, breach, violation or event of acceleration existing under
          the
          Mortgage or the related Mortgage Note and no event which, with the passage
          of
          time or with notice and the expiration of any grace or cure period, and
          to the
          knowledge of the Company, would constitute a default, breach, violation
          or event
          permitting acceleration; and neither the Company, nor any prior mortgagee
          has
          waived any default, breach, violation or event permitting
          acceleration;

        

        (o)
          There
          are no mechanics' or similar liens or claims which have been filed for
          work,
          labor or material (and no rights are outstanding that under law could give
          rise
          to such liens) affecting the related Mortgaged Property which are or may
          be
          liens prior to or equal to the lien of the related Mortgage;

        

        (p)
          All
          improvements subject to the Mortgage which were considered in determining
          the
          Appraised Value of the Mortgaged Property lie wholly within the boundaries
          and
          building restriction lines of the Mortgaged Property (and wholly within
          the
          project with respect to a condominium unit) and no improvements on adjoining
          properties encroach upon the Mortgaged Property except those which are
          insured
          against by the title insurance policy referred to in clause (m) above and
          all
          improvements on the property comply with all applicable zoning and subdivision
          laws and ordinances;

        

        (q)
          Each
          Mortgage Loan was originated by or for the Company pursuant to, and conforms
          with, the Company’s underwriting guidelines attached as Exhibit H hereto. The
          Mortgage Loan bears interest at an adjustable rate (if applicable) as set
          forth
          in the related Mortgage Loan Schedule, and Monthly Payments under the Mortgage
          Note are due and payable on the first day of each month. The Mortgage contains
          the usual and enforceable provisions of the Company at the time of origination
          for the acceleration of the payment of the unpaid principal amount of the
          Mortgage Loan if the related Mortgaged Property is sold without the prior
          consent of the mortgagee thereunder;

        

        (r)
          The
          Mortgaged Property is not subject to any material damage. At origination
          of the
          Mortgage Loan there was not, since origination of the Mortgage Loan there
          has
          not been, and there currently is no proceeding pending for the total or
          partial
          condemnation of the Mortgaged Property. The Company has not received
          notification that any such proceedings are scheduled to commence at a future
          date;

        

        (s)
          The
          related Mortgage contains customary and enforceable provisions such as
          to render
          the rights and remedies of the holder thereof adequate for the realization
          against the Mortgaged Property of the benefits of the security provided
          thereby,
          including, (1) in the case of a Mortgage designated as a deed of trust,
          by
          trustee's sale, and (2) otherwise by judicial foreclosure. There is no
          homestead
          or other exemption available to the Mortgagor which would interfere with
          the
          right to sell the Mortgaged Property at a trustee's sale or the right to
          foreclose the Mortgage;

        

        (t)
          If
          the Mortgage constitutes a deed of trust, a trustee, authorized and duly
          qualified if required under applicable law to act as such, has been properly
          designated and currently so serves and is named in the Mortgage, and no
          fees or
          expenses, except as may be required by local law, are or will become payable
          by
          the Purchaser to the trustee under the deed of trust, except in connection
          with
          a trustee's sale or attempted sale after default by the Mortgagor;

        

        (u)
          The
          Mortgage File contains an appraisal, if required, of the related Mortgaged
          Property signed prior to the final approval of the mortgage loan application
          by
          a Qualified Appraiser, approved by the Company, who had no interest, direct
          or
          indirect, in the Mortgaged Property or in any loan made on the security
          thereof,
          and whose compensation is not affected by the approval or disapproval of
          the
          Mortgage Loan, and the appraisal and appraiser both satisfy the requirements
          of
          Fannie Mae or FHLMC and Title XI of the Federal Institutions Reform, Recovery,
          and Enforcement Act of 1989 and the regulations promulgated thereunder,
          all as
          in effect on the date the Mortgage Loan was originated. The appraisal is
          in a
          form acceptable to Fannie Mae or FHLMC;

        

        (v)
          All
          parties which have had any interest in the Mortgage, whether as mortgagee,
          assignee, pledgee or otherwise, are (or, during the period in which they
          held
          and disposed of such interest, were) (A) in compliance with any and all
          applicable licensing requirements of the laws of the state wherein the
          Mortgaged
          Property is located, and (B) (1) organized under the laws of such state,
          or (2)
          qualified to do business in such state, or (3) federal savings and loan
          associations or national banks or a Federal Home Loan Bank or savings bank
          having principal offices in such state, or (4) not doing business in such
          state;

        

        (w)
          The
          related Mortgage Note is not and has not been secured by any collateral
          except
          the lien of the corresponding Mortgage and the security interest of any
          applicable security agreement or chattel mortgage referred to above and
          such
          collateral does not serve as security for any other obligation;

        

        (x)
          The
          Mortgagor has received and has executed, where applicable, all disclosure
          materials required by applicable law with respect to the making of such
          mortgage
          loans;

        

        (y)
          The
          Mortgage Loan does not contain balloon or "graduated payment" features;
          No
          Mortgage Loan is subject to a buydown agreement or contains any buydown
          provision;

        

        (z)
          The
          Mortgagor is not in bankruptcy and, the Mortgagor is not insolvent and
          the
          Company has no knowledge of any circumstances or conditions with respect
          to the
          Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor's credit
          standing that could reasonably be expected to cause investors to regard
          the
          Mortgage Loan as an unacceptable investment, cause the Mortgage Loan to
          become
          delinquent, or materially adversely affect the value or marketability of
          the
          Mortgage Loan;

        

        (aa)
          Each
          Mortgage Loan bears interest based upon a thirty (30) day month and a three
          hundred and sixty (360) day year. The Mortgage Loans have an original term
          to
          maturity of not more than thirty (30) years, with interest payable in arrears
          on
          the first day of each month. As to each adjustable rate Mortgage Loan,
          on each
          applicable Adjustment Date, the Mortgage Interest Rate will be adjusted
          to equal
          the sum of the Index, plus the applicable Margin; provided, that the Mortgage
          Interest Rate, on each applicable Adjustment Date, will not increase by
          more
          than the Initial Rate Cap or Periodic Rate Cap, as applicable. Over the
          term of
          each adjustable rate Mortgage Loan, the Mortgage Interest Rate will not
          exceed
          such Mortgage Loan's Lifetime Rate Cap. Each
          Mortgage Note requires a monthly payment which is sufficient, during the
          period
          prior to the first adjustment to the Mortgage Interest Rate, to fully amortize
          the outstanding principal balance as of the first day of such period over
          the
          then remaining term of such Mortgage Note and to pay interest at the related
          Mortgage Interest Rate; provided however, with respect to any Interest
          Only
          Mortgage Loans, the Mortgage Note allows a Monthly Payment of interest
          only
          during the first 10 years from origination, and after the first 10 years
          from
          origination, the Mortgage Note requires a Monthly Payment of principal
          and
          interest, sufficient to fully amortize the outstanding principal balance
          over
          the then remaining term of such Mortgage Loan.. As to each Mortgage Loan,
          if the
          related Mortgage Interest Rate changes on an adjustment date, the then
          outstanding principal balance will be reamortized over the remaining life
          of
          such Mortgage Loan. No Mortgage Loan contains terms or provisions which
          would
          result in negative amortization. None of the Mortgage Loans contain a conversion
          feature which would cause the Mortgage Loan interest rate to convert to
          a fixed
          interest rate. None of the Mortgage Loans are considered agricultural loans;
          

        

        (bb)
          (INTENTIONALLY LEFT BLANK)

        

        (cc)
          (INTENTIONALLY LEFT BLANK)

        

        (dd)
          (INTENTIONALLY LEFT BLANK)

         

        (ee)
          (INTENTIONALLY LEFT BLANK) 

        

        (ff)
          (INTENTIONALLY LEFT BLANK)

        

        (gg)
          (INTENTIONALLY LEFT BLANK)

        

        (hh) In
          the
          event the Mortgage Loan had an LTV at origination greater than 80.00%,
          the
          excess of the principal balance of the Mortgage Loan over 75.0% of the
          Appraised
          Value of the Mortgaged Property with respect to a Refinanced Mortgage Loan,
          or
          the lesser of the Appraised Value or the purchase price of the Mortgaged
          Property with respect to a purchase money Mortgage Loan was insured as
          to
          payment defaults by a Primary Mortgage Insurance Policy issued by a Qualified
          Insurer. No Mortgage Loan has an LTV over 95%. All provisions of such Primary
          Mortgage Insurance Policy have been and are being complied with, such policy
          is
          in full force and effect, and all premiums due thereunder have been paid.
          No
          Mortgage Loan requires payment of such premiums, in whole or in part, by
          the
          Purchaser. No action, inaction, or event has occurred and no state of facts
          known to the Company exists that has, or will result in the exclusion from,
          denial of, or defense to coverage. Any Mortgage Loan subject to a Primary
          Mortgage Insurance Policy obligates the Mortgagor thereunder to maintain
          the
          Primary Mortgage Insurance Policy, subject to state and federal law, and
          to pay
          all premiums and charges in connection therewith. No action has been taken
          or
          failed to be taken, on or prior to the Closing Date which has resulted
          or will
          result in an exclusion from, denial of, or defense to coverage under any
          Primary
          Mortgage Insurance Policy (including, without limitation, any exclusions,
          denials or defenses which would limit or reduce the availability of the
          timely
          payment of the full amount of the loss otherwise due thereunder to the
          insured)
          whether arising out of actions, representations, errors, omissions, negligence,
          or fraud of the Company or the Mortgagor, or for any other reason under
          such
          coverage. The mortgage interest rate for the Mortgage Loan as set forth
          on the
          related Mortgage Loan Schedule is net of any such insurance premium. Any
          Mortgage Loan subject to a Lender Primary Mortgage Insurance Policy obligates
          the Company to maintain the Lender Primary Insurance Policy and to pay
          all
          premiums and charges in connection therewith;

        

        (ii) The
          Assignment is in recordable form and is acceptable for recording under
          the laws
          of the jurisdiction in which the Mortgaged Property is located;

        

        (jj) Unless
          otherwise indicated on the Mortgage Loan Schedule, none of the Mortgage
          Loans
          are secured by an interest in a leasehold estate. The Mortgaged Property
          is
          located in the state identified in the related Mortgage Loan Schedule and
          consists of a single parcel of real property or contiguous parcels bearing
          one
          legal description and tax assessment number with a detached single family
          residence erected thereon, or a townhouse, or a two-to-four family dwelling,
          or
          an individual condominium unit in a condominium project, or an individual
          unit
          in a planned unit development or a de minimis planned unit development,
          provided, however, that no residence or dwelling is a single parcel of
          real
          property with a manufactured home not affixed to a permanent foundation,
          or a
          mobile home. Any
          condominium unit or planned unit development conforms with the Company’s
          underwriting guidelines. As
          of the
          date of origination, no portion of any Mortgaged Property is used for commercial
          purposes, and since the Origination Date to the best of the Company’s knowledge,
          no portion of any Mortgaged Property has been, or currently is, used for
          commercial purposes;

        

        (kk) Monthly
          Payments on the Mortgage Loan commenced no more than sixty (60) days after
          the
          funds were disbursed in connection with the Mortgage Loan. The Mortgage
          Note is
          payable on the first day of each month in monthly installments of principal,
          if
          applicable, and interest, which installments are subject to change due
          to the
          adjustments to the Mortgage Interest Rate on each Adjustment Date, with
          interest
          calculated and payable in arrears;

        

        (ll) As
          of the
          Closing Date of the Mortgage Loan, the Mortgage Property was lawfully occupied
          under applicable law, and all inspections, licenses and certificates required
          to
          be made or issued with respect to all occupied portions of the Mortgaged
          Property and, with respect to the use and occupancy of the same, including
          but
          not limited to certificates of occupancy and fire underwriting certificates,
          have been made or obtained from the appropriate authorities;

        

        (mm) There
          is
          no pending action or proceeding directly involving the Mortgaged Property
          in
          which compliance with any environmental law, rule or regulation is an issue;
          there is no violation of any environmental law, rule or regulation with
          respect
          to the Mortgaged Property; and the Company has not received any notice
          of any
          environmental hazard on the Mortgaged Property and nothing further remains
          to be
          done to satisfy in full all requirements of each such law, rule or regulation
          constituting a prerequisite to use and enjoyment of said property; 

        

        (nn) The
          Mortgagor has not notified the Company, and the Company has no knowledge
          of any
          relief requested or allowed to the Mortgagor under the Soldiers' and Sailors'
          Civil Relief Act of 1940;

        

        (oo)
           No
          Mortgage Loan is a construction or rehabilitation Mortgage Loan or was
          made to
          facilitate the trade-in or exchange of a Mortgaged Property;

        

        (pp) The
          Mortgagor for each Mortgage Loan is a natural person or an Illinois land
          trust
          or an inter vivos revocable trust acceptable to Fannie Mae and/or Freddie
          Mac;

        

        (qq) None
          of
          the Mortgage Loans are Co-op Loans; 

        

        (rr)
           With
          respect to each Mortgage Loan that has a prepayment penalty feature, each
          such
          prepayment penalty is enforceable and will be enforced by the Company and
          each
          prepayment penalty is permitted pursuant to federal, state and local law.
          No
          Mortgage Loan will impose a prepayment penalty for a term in excess of
          five
          years from the date such Mortgage Loan was originated. Except as otherwise
          set
          forth on the Mortgage Loan Schedule, with respect to each Mortgage Loan
          that
          contains a prepayment penalty, such prepayment penalty is at least equal
          to the
          lesser of (A) the maximum amount permitted under applicable law and (B)
          six
          months interest at the related Mortgage Interest Rate on the amount prepaid
          in
          excess of 20% of the original principal balance of such Mortgage
          Loan;

        

        (ss)
           With
          respect to each Mortgage Loan either (i) the fair market value of the Mortgaged
          Property securing such Mortgage Loan was at least equal to 80 percent of
          the
          original principal balance of such Mortgage Loan at the time such Mortgage
          Loan
          was originated or (ii) (a) the Mortgage Loan is only secured by the Mortgage
          Property and (b) substantially all of the proceeds of such Mortgage Loan
          were
          used to acquire or to improve or protect the Mortgage Property. For the
          purposes
          of the preceding sentence, if the Mortgage Loan has been significantly
          modified
          other than as a result of a default or a reasonable foreseeable default,
          the
          modified Mortgage Loan will be viewed as having been originated on the
          date of
          the modification;

        

        (tt)
          The
          Mortgage Loan was originated by a mortgagee approved by the Secretary of
          Housing
          and Urban Development pursuant to sections 203 and 211 of the National
          Housing
          Act, a savings and loan association, a savings bank, a commercial bank,
          credit
          union, insurance company or similar institution which is supervised and
          examined
          by a federal or state authority; 

        

        (uu)
          None
          of the Mortgage Loans are simple interest Mortgage Loans and none of the
          Mortgaged Properties are timeshares; 

        

        (vv)
          All
          of the terms of the Mortgage pertaining to interest rate adjustments, payment
          adjustments and adjustments of the outstanding principal balance are
          enforceable, all such adjustments have been properly made, including the
          mailing
          of required notices, and such adjustments do not and will not affect the
          priority of the Mortgage lien. With respect to each Mortgage Loan which
          has
          passed its initial Adjustment Date, Company has performed an audit of the
          Mortgage Loan to determine whether all interest rate adjustments have been
          made
          in accordance with the terms of the Mortgage Note and Mortgage; and

        

        (ww)
          Each
          Mortgage Note, each Mortgage, each Assignment and any other documents required
          pursuant to this Agreement to be delivered to the Purchaser or its designee,
          or
          its assignee for each Mortgage Loan, have been, on or before the related
          Closing
          Date, delivered to the Purchaser or its designee, or its assignee.

        

        Section
          3.03 Repurchase;
          Substitution.

        

        It
          is
          understood and agreed that the representations and warranties set forth
          in
          Sections 3.01 and 3.02 shall survive the sale of the Mortgage Loans and
          delivery
          of the Mortgage Loan Documents to the Purchaser, or its designee, and shall
          inure to the benefit of the Purchaser, notwithstanding any restrictive
          or
          qualified endorsement on any Mortgage Note or Assignment or the examination,
          or
          lack of examination, of any Mortgage File. Upon discovery by either the
          Company
          or the Purchaser of a breach of any of the foregoing representations and
          warranties which materially and adversely affects the value of the Mortgage
          Loans or the interest of the Purchaser in any Mortgage Loan, the party
          discovering such breach shall give prompt written notice to the other.
          The
          Company shall have a period of sixty (60) days from the earlier of its
          discovery
          or its receipt of notice of any such breach within which to correct or
          cure such
          breach. The Company hereby covenants and agrees that if any such breach
          is not
          corrected or cured within such sixty day period, the Company shall, at
          the
          Purchaser's option and not later than ninety (90) days of its discovery
          or its
          receipt of notice of such breach, repurchase such Mortgage Loan at the
          Repurchase Price or, with the Purchaser's prior consent and at Purchaser’s sole
          option, substitute a Mortgage Loan as provided below. In the event that
          any such
          breach shall involve any representation or warranty set forth in Section
          3.01,
          and such breach is not cured within sixty (60) days of the earlier of either
          discovery by or notice to the Company of such breach, all Mortgage Loans
          shall,
          at the option of the Purchaser, be repurchased by the Company at the Repurchase
          Price. Any such repurchase shall be accomplished by wire transfer of immediately
          available funds to Purchaser in the amount of the Repurchase Price.

        

        If
          the
          Company is required to repurchase any Mortgage Loan pursuant to this Section
          3.03, the Company may, with the Purchaser's prior consent and at Purchaser’s
          sole option, within ninety (90) days from the related Closing Date, remove
          such
          defective Mortgage Loan from the terms of this Agreement and substitute
          another
          mortgage loan for such defective Mortgage Loan, in lieu of repurchasing
          such
          defective Mortgage Loan. Any substitute Mortgage Loan is subject to Purchaser
          acceptability. Any substituted Loans will comply with the representations
          and
          warranties set forth in this Agreement as of the substitution date

        

        The
          Company shall amend the related Mortgage Loan Schedule to reflect the withdrawal
          of the removed Mortgage Loan from this Agreement and the substitution of
          such
          substitute Mortgage Loan therefor. Upon such amendment, the Purchaser shall
          review the Mortgage File delivered to it relating to the substitute Mortgage
          Loan. In the event of such a substitution, accrued interest on the substitute
          Mortgage Loan for the month in which the substitution occurs and any Principal
          Prepayments made thereon during such month shall be the property of the
          Purchaser and accrued interest for such month on the Mortgage Loan for
          which the
          substitution is made and any Principal Prepayments made thereon during
          such
          month shall be the property of the Company. The principal payment on a
          substitute Mortgage Loan due on the Due Date in the month of substitution
          shall
          be the property of the Company and the principal payment on the Mortgage
          Loan
          for which the substitution is made due on such date shall be the property
          of the
          Purchaser.

        

        It
          is
          understood and agreed that the obligation of the Company set forth in this
          Section 3.03 to cure, repurchase or substitute for a defective Mortgage
          Loan,
          and to indemnify Purchaser pursuant to Section 8.01, constitute the sole
          remedies of the Purchaser respecting a breach of the foregoing representations
          and warranties. If the Company fails to repurchase or substitute for a
          defective
          Mortgage Loan in accordance with this Section 3.03, or fails to cure a
          defective
          Mortgage Loan to Purchaser's reasonable satisfaction in accordance with
          this
          Section 3.03, or to indemnify Purchaser pursuant to Section 8.01, that
          failure
          shall be an Event of Default and the Purchaser shall be entitled to pursue
          all
          remedies available in this Agreement as a result thereof. No provision
          of this
          paragraph shall affect the rights of the Purchaser to terminate this Agreement
          for cause, as set forth in Sections 10.01 and 11.01.

        

        Any
          cause
          of action against the Company relating to or arising out of the breach of any
          representations and warranties made in Sections 3.01 and 3.02 shall accrue
          as to
          any Mortgage Loan upon (i) the earlier of discovery of such breach by the
          Company or notice thereof by the Purchaser to the Company, (ii) failure
          by the
          Company to cure such breach or repurchase such Mortgage Loan as specified
          above,
          and (iii) demand upon the Company by the Purchaser for compliance with
          this
          Agreement.

        

        In
          the
          event that any Mortgage Loan is held by a REMIC, notwithstanding any contrary
          provision of this Agreement, with respect to any Mortgage Loan that is
          not in
          default or as to which no default is imminent, no substitution pursuant
          to
          Subsection 3.03 shall be made after the applicable REMIC's "start up day"
          (as
          defined in Section 860G(a) (9) of the Code), unless the Company has obtained
          an
          Opinion of Counsel to the effect that such substitution will not (i) result
          in
          the imposition of taxes on "prohibited transactions" of such REMIC (as
          defined
          in Section 860F of the Code) or otherwise subject the REMIC to tax, or
          (ii)
          cause the REMIC to fail to qualify as a REMIC at any time.

        

        Section
          3.04 Representations
          and Warranties of the Purchaser.

         

        The
          Purchaser represents, warrants and convenants to the Company that, as of
          the
          related Closing Date or as of such date specifically provided
          herein:

        

        (a) The
          Purchaser is a corporation, dully organized validly existing and in good
          standing under the laws of the State of Delaware and is qualified to transact
          business in, is in good standing under the laws of, and possesses all licenses
          necessary for the conduct of its business in, each state in which any Mortgaged
          Property is located or is otherwise except or not required under applicable
          law
          to effect such qualification or license;

        

        (b) The
          Purchaser has full power and authority to hold each Mortgage Loan, to purchase
          each Mortgage Loan pursuant to this Agreement and the related Term Sheet
          and to
          execute, deliver and perform, and to enter into and consummate all transactions
          contemplated by this Agreement and the related Term Sheet and to conduct
          its
          business as presently conducted, has duly authorized the execution, delivery
          and
          performance of this Agreement and the related Term Sheet, has duly executed
          and
          delivered this Agreement and the related Term Sheet;

        

        (c) None
          of
          the execution and delivery of this Agreement and the related Term Sheet,
          the
          purchase of the Mortgage Loans, the consummation of the transactions
          contemplated hereby, or the fulfillment of or compliance with the terms
          and
          conditions of this Agreement and the related Term Sheet will conflict with
          any
          of the terms, conditions or provisions of the Purchaser’s charter or by-laws or
          materially conflict with or result in a material breach of any of the terms,
          conditions or provisions
          of any legal restriction or any agreement or instrument to which the Purchaser
          is now a party or by which it is bound, or constitute a default or result
          in an
          acceleration under any of the foregoing, or result in the material violation
          of
          any law, rule, regulation, order, judgment or decree to which the Purchaser
          or
          its property is subject;

        

        (d) There
          is
          no litigation pending or to the best of the Purchaser’s knowledge, threatened
          with respect to the Purchaser which is reasonably likely to have a material
          adverse effect on the purchase of the related Mortgage Loans, the execution,
          delivery or enforceability of this Agreement and the related Term Sheet,
          or
          which is reasonably likely to have a material adverse effect on the financial
          condition of the Purchaser;

        

        (e) No
          consent, approval, authorization or order of any court or governmental
          agency or
          body is required for the execution, delivery and performance by the Purchaser
          of
          or compliance by the Purchaser with this Agreement and the related Term
          Sheet,
          the purchase of the Mortgage Loans or the consummation of the transactions
          contemplated by this Agreement and the related Term Sheet except for consents,
          approvals, authorizations and orders which have been obtained;

        

        (f) The
          consummation of the transactions contemplated by this Agreement and the
          related
          Term Sheet is in the ordinary course of business of the Purchaser;

        

        (h) The
          Purchaser will treat the purchase of the Mortgage Loans from the Company
          as a
          purchase for reporting, tax and accounting purposes; and

        

        (i) The
          Purchaser does not believe, nor does it have any cause or reason to believe,
          that it cannot perform each and every of its covenants contained in this
          Agreement and the related Term Sheet.

        

        The
          Purchaser shall indemnify the Company and hold it harmless against any
          claims,
          proceedings, losses, damages, penalties, fines, forfeitures, reasonable
          and
          necessary legal fees and related costs, judgments, and other costs and
          expenses
          resulting from a breach by the Purchaser of the representations and warranties
          contained in this Section 3.04. It is understood and agreed that the obligations
          of the Purchaser set forth in this Section 3.04 to indemnify the Seller
          as
          provided herein constitute the sole remedies of the Seller respecting a
          breach
          of the foregoing representations and warranties.

        

        

        ARTICLE
          IV

        

        ADMINISTRATION
          AND SERVICING OF MORTGAGE LOANS

        

        Section
          4.01 Company
          to Act as Servicer.

        

        The
          Company, as independent contract servicer, shall service and administer
          the
          Mortgage Loans in accordance with this Agreement and with Accepted Servicing
          Practices, and shall have full power and authority, acting alone, to do
          or cause
          to be done any and all things in connection with such servicing and
          administration which the Company may deem necessary or desirable and consistent
          with the terms of this Agreement and with Accepted Servicing Practices
          and
          exercise the same care that it customarily employs for its own account.
          Except
          as set forth in this Agreement, the Company shall service the Mortgage
          Loans in
          strict compliance with the servicing provisions of the Fannie Mae Guides
          (special servicing option), which include, but are not limited to, provisions
          regarding the liquidation of Mortgage Loans, the collection of Mortgage
          Loan
          payments, the payment of taxes, insurance and other charges, the maintenance
          of
          hazard insurance with a Qualified Insurer, the maintenance of mortgage
          impairment insurance, the maintenance of fidelity bond and errors and omissions
          insurance, inspections, the restoration of Mortgaged Property, the maintenance
          of Primary Mortgage Insurance Policies and Lender Primary Mortgage Insurance
          Policies, insurance claims, the title, management and disposition of REO
          Property, permitted withdrawals with respect to REO Property, liquidation
          reports, and reports of foreclosures and abandonments of Mortgaged Property,
          the
          transfer of Mortgaged Property, the release of Mortgage Files, annual
          statements, and examination of records and facilities. In the event of
          any
          conflict, inconsistency or discrepancy between any of the servicing provisions
          of this Agreement and the related Term Sheet and any of the servicing provisions
          of the Fannie Mae Guides, the provisions of this Agreement shall control
          and be
          binding upon the Purchaser and the Company. 

        

        Consistent
          with the terms of this Agreement, the Company may waive, modify or vary
          any term
          of any Mortgage Loan or consent to the postponement of any such term or
          in any
          manner grant indulgence to any Mortgagor if in the Company's reasonable
          and
          prudent determination such waiver, modification, postponement or indulgence
          is
          not materially adverse to the Purchaser, provided, however, that unless
          the
          Company has obtained the prior written consent of the Purchaser, the Company
          shall not permit any modification with respect to any Mortgage Loan that
          would
          change the Mortgage Interest Rate, defer for more than ninety (90) days
          or
          forgive any payment of principal or interest, reduce or increase the outstanding
          principal balance (except for actual payments of principal) or change the
          final
          maturity date on such Mortgage Loan. In the event of any such modification
          which
          has been agreed to in writing by the Purchaser and which permits the deferral
          of
          interest or principal payments on any Mortgage Loan, the Company shall,
          on the
          Business Day immediately preceding the Remittance Date in any month in
          which any
          such principal or interest payment has been deferred, deposit in the Custodial
          Account from its own funds, in accordance with Section 4.04, the difference
          between (a) such month's principal and one month's interest at the Mortgage
          Loan
          Remittance Rate on the unpaid principal balance of such Mortgage Loan and
          (b)
          the amount paid by the Mortgagor. The Company shall be entitled to reimbursement
          for such advances to the same extent as for all other advances pursuant
          to
          Section 4.05. Without limiting the generality of the foregoing, the Company
          shall continue, and is hereby authorized and empowered, to prepare, execute
          and
          deliver, all instruments of satisfaction or cancellation, or of partial
          or full
          release, discharge and all other comparable instruments, with respect to
          the
          Mortgage Loans and with respect to the Mortgaged Properties. Notwithstanding
          anything herein to the contrary, the Company may not enter into a forbearance
          agreement or similar arrangement with respect to any Mortgage Loan which
          runs
          more than one hundred eighty (180) days after the first delinquent Due
          Date. Any
          such agreement shall be approved by Purchaser and, if required, by the
          Primary
          Mortgage Insurance Policy insurer and Lender Primary Mortgage Insurance
          Policy
          insurer, if required. 

        

        Notwithstanding
          anything in this Agreement to the contrary, if any Mortgage Loan becomes
          subject
          to a Pass-Through Transfer, the Company (a) with respect to such Mortgage
          Loan,
          shall not permit any modification with respect to such Mortgage Loan that
          would
          change the Mortgage Interest Rate and (b) shall not (unless the Mortgagor
          is in
          default with respect to such Mortgage Loan or such default is, in the judgment
          of the Company, reasonably foreseeable) make or permit any modification,
          waiver
          or amendment of any term of such Mortgage Loan that would both (i) effect
          an
          exchange or reissuance of such Mortgage Loan under Section 1001 of the
          Code (or
          Treasury regulations promulgated thereunder) or (ii) cause any REMIC to
          fail to
          qualify as a REMIC under the Code or the imposition of any tax on “prohibited
          transactions” or “contributions” after the startup date under the REMIC
          Provisions.

        

        Prior
          to
          taking any action with respect to the Mortgage Loans subject to a Pass-Through
          Transfer, which is not contemplated under the terms of this Agreement,
          the
          Company will obtain an Opinion of Counsel acceptable to the trustee in
          such
          Pass-Through Transfer with respect to whether such action could result
          in the
          imposition of a tax upon any REMIC (including but not limited to the tax
          on
          prohibited transactions as defined in Section 860F(a)(2) of the Code and
          the tax
          on contributions to a REMIC set forth in Section 860G(d) of the Code)(either
          such event, an “Adverse REMIC Event”), and the Company shall not take any such
          actions as to which it has been advised that an Adverse REMIC Event could
          occur.

        

        The
          Company shall not permit the creation of any “interests” (within the meaning of
          Section 860G of the Code) in any REMIC. The Company shall not enter into
          any
          arrangement by which a REMIC will receive a fee or other compensation for
          services nor permit a REMIC to receive any income from assets other than
          “qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
          investments” as defined in Section 860G(a)(5) of the Code.

        

        In
          servicing and administering the Mortgage Loans, the Company shall employ
          Accepted Servicing Practices, giving due consideration to the Purchaser's
          reliance on the Company. Unless a different time period is stated in this
          Agreement or the related Term Sheet, Purchaser shall be deemed to have
          given
          consent in connection with a particular matter if Purchaser does not
          affirmatively grant or deny consent within five (5) Business Days from
          the date
          Purchaser receives a second written request for consent for such matter
          from
          Company as servicer. 

        

        The
          Mortgage Loans may be subserviced by a Subservicer on behalf of the Company
          provided that the Subservicer is an entity that engages in the business
          of
          servicing loans, and in either case shall be authorized to transact business,
          and licensed to service mortgage loans, in the state or states where the
          related
          Mortgaged Properties it is to service are situated, if and to the extent
          required by applicable law to enable the Subservicer to perform its obligations
          hereunder and under the Subservicing Agreement, and in either case shall
          be a
          FHLMC or Fannie Mae approved mortgage servicer in good standing, and no
          event
          has occurred, including but not limited to a change in insurance coverage,
          which
          would make it unable to comply with the eligibility requirements for lenders
          imposed by Fannie Mae or for seller/servicers imposed by Fannie Mae or
          FHLMC, or
          which would require notification to Fannie Mae or FHLMC. In addition, each
          Subservicer will obtain and preserve its qualifications to do business
          as a
          foreign corporation and its licenses to service mortgage loans, in each
          jurisdiction in which such qualifications and/or licenses are or shall
          be
          necessary to protect the validity and enforceability of this Agreement,
          or any
          of the Mortgage Loans and to perform or cause to be performed its duties
          under
          the related Subservicing Agreement. The Company may perform any of its
          servicing
          responsibilities hereunder or may cause the Subservicer to perform any
          such
          servicing responsibilities on its behalf, but the use by the Company of
          the
          Subservicer shall not release the Company from any of its obligations hereunder
          and the Company shall remain responsible hereunder for all acts and omissions
          of
          the Subservicer as fully as if such acts and omissions were those of the
          Company. The Company shall pay all fees and expenses of the Subservicer
          from its
          own funds, and the Subservicer's fee shall not exceed the Servicing Fee.
          Company
          shall notify Purchaser promptly in writing upon the appointment of any
          Subservicer.

        

        At
          the
          cost and expense of the Company, without any right of reimbursement from
          the
          Custodial Account, the Company shall be entitled to terminate the rights
          and
          responsibilities of the Subservicer and arrange for any servicing
          responsibilities to be performed by a successor subservicer meeting the
          requirements in the preceding paragraph, provided, however, that nothing
          contained herein shall be deemed to prevent or prohibit the Company, at
          the
          Company's option, from electing to service the related Mortgage Loans itself.
          In
          the event that the Company's responsibilities and duties under this Agreement
          are terminated pursuant to Section 4.13, 8.04, 9.01 or 10.01 and if requested
          to
          do so by the Purchaser, the Company shall at its own cost and expense terminate
          the rights and responsibilities of the Subservicer effective as of the
          date of
          termination of the Company. The Company shall pay all fees, expenses or
          penalties necessary in order to terminate the rights and responsibilities
          of the
          Subservicer from the Company's own funds without reimbursement from the
          Purchaser.

        

        Notwithstanding
          any of the provisions of this Agreement relating to agreements or arrangements
          between the Company and the Subservicer or any reference herein to actions
          taken
          through the Subservicer or otherwise, the Company shall not be relieved
          of its
          obligations to the Purchaser and shall be obligated to the same extent
          and under
          the same terms and conditions as if it alone were servicing and administering
          the Mortgage Loans. The Company shall be entitled to enter into an agreement
          with the Subservicer for indemnification of the Company by the Subservicer
          and
          nothing contained in this Agreement shall be deemed to limit or modify
          such
          indemnification. The Company will indemnify and hold Purchaser harmless
          from any
          loss, liability or expense arising out of its use of a Subservicer to perform
          any of its servicing duties, responsibilities and obligations
          hereunder.

        

        Any
          Subservicing Agreement and any other transactions or services relating
          to the
          Mortgage Loans involving the Subservicer shall be deemed to be between
          the
          Subservicer and Company alone, and the Purchaser shall have no obligations,
          duties or liabilities with respect to the Subservicer including no obligation,
          duty or liability of Purchaser to pay the Subservicer's fees and expenses.
          For
          purposes of distributions and advances by the Company pursuant to this
          Agreement, the Company shall be deemed to have received a payment on a
          Mortgage
          Loan when the Subservicer has received such payment.

        

        Section
          4.02 Collection
          of Mortgage Loan Payments.

        

        Continuously
          from the date hereof until the date each Mortgage Loan ceases to be subject
          to
          this Agreement, the Company will proceed diligently to collect all payments
          due
          under each Mortgage Loan when the same shall become due and payable and
          shall,
          to the extent such procedures shall be consistent with this Agreement,
          Accepted
          Servicing Practices, and the terms and provisions of any related Primary
          Mortgage Insurance Policy and Lender Primary Mortgage Insurance Policy,
          follow
          such collection procedures as it follows with respect to mortgage loans
          comparable to the Mortgage Loans and held for its own account. Further,
          the
          Company will take special care in ascertaining and estimating annual escrow
          payments, and all other charges that, as provided in the Mortgage, will
          become
          due and payable, so that the installments payable by the Mortgagors will
          be
          sufficient to pay such charges as and when they become due and
          payable.

        

        In
          no
          event will the Company waive its right to any prepayment penalty or premium
          without the prior written consent of Purchaser and Company will use diligent
          efforts to collect same when due except as otherwise provided in the prepayment
          penalty rider to the Mortgage. 

        

        Section
          4.03 Realization
          Upon Defaulted Mortgage

        

        The
          Company shall use its best efforts, consistent with the procedures that
          the
          Company would use in servicing loans for its own account, consistent with
          Accepted Servicing Practices, any Primary Mortgage Insurance Policies and
          Lender
          Primary Mortgage Insurance Policies and the best interest of Purchaser,
          to
          foreclose upon or otherwise comparably convert the ownership of properties
          securing such of the Mortgage Loans as come into and continue in default
          and as
          to which no satisfactory arrangements can be made for collection of delinquent
          payments pursuant to Section 4.01. Foreclosure or comparable proceedings
          shall
          be initiated within ninety (90) days of default for Mortgaged Properties
          for
          which no satisfactory arrangements can be made for collection of delinquent
          payments, subject to state and federal law and regulation. The Company
          shall use
          its best efforts to realize upon defaulted Mortgage Loans in such manner
          as will
          maximize the receipt of principal and interest by the Purchaser, taking
          into
          account, among other things, the timing of foreclosure proceedings. The
          foregoing is subject to the provisions that, in any case in which a Mortgaged
          Property shall have suffered damage, the Company shall not be required
          to expend
          its own funds toward the restoration of such property unless it shall determine
          in its discretion (i) that such restoration will increase the proceeds
          of
          liquidation of the related Mortgage Loan to the Purchaser after reimbursement
          to
          itself for such expenses, and (ii) that such expenses will be recoverable
          by the
          Company through Insurance Proceeds, Condemnation Proceeds, REO Disposition
          Proceeds or Liquidation Proceeds from the related Mortgaged Property, as
          contemplated in Section 4.05. Company shall obtain prior approval of Purchaser
          as to repair or restoration expenses in excess of ten thousand dollars
          ($10,000). The Company shall notify the Purchaser in writing of the commencement
          of foreclosure proceedings and not less than five (5) days prior to the
          acceptance or rejection of any offer of reinstatement. The Company shall
          be
          responsible for all costs and expenses incurred by it in any such proceedings
          or
          functions; provided, however, that it shall be entitled to reimbursement
          thereof
          from the related property, as contemplated in Section 4.05. Notwithstanding
          anything to the contrary contained herein, in connection with a foreclosure
          or
          acceptance of a deed in lieu of foreclosure, in the event the Company has
          reasonable cause to believe that a Mortgaged Property is contaminated by
          hazardous or toxic substances or wastes, or if the Purchaser otherwise
          requests
          an environmental inspection or review of such Mortgaged Property, such
          an
          inspection or review is to be conducted by a qualified inspector at the
          Purchaser's expense. Upon completion of the inspection, the Company shall
          promptly provide the Purchaser with a written report of the environmental
          inspection. After reviewing the environmental inspection report, the Purchaser
          shall determine how the Company shall proceed with respect to the Mortgaged
          Property. 

        

        Notwithstanding
          anything to the contrary contained herein, the Purchaser may, at the Purchaser's
          sole option, terminate the Company as servicer of any Mortgage Loan which
          becomes ninety (90) days or greater delinquent in payment of a scheduled
          Monthly
          Payment, without payment of any termination fee with respect thereto, provided
          that the Company shall on the date said termination takes effect be reimbursed
          for any unreimbursed advances of the Company's funds made pursuant to Section
          5.03 and any unreimbursed Servicing Advances and Servicing Fees in each
          case
          relating to the Mortgage Loan underlying such delinquent Mortgage Loan
          notwithstanding anything to the contrary set forth in Section 4.05. In
          the event
          of any such termination, the provisions of Section 11.01 hereof shall apply to
          said termination and the transfer of servicing responsibilities with respect
          to
          such delinquent Mortgage Loan to the Purchaser or its designee.

        

        In
          the
          event that a Mortgage Loan becomes part of a REMIC, and becomes REO Property,
          such property shall be disposed of by the Company, with the consent of
          Purchaser
          as required pursuant to this Agreement, before the close of the third taxable
          year following the taxable year in which the Mortgage Loan became an REO
          Property, unless the Company provides to the trustee under such REMIC an
          opinion
          of counsel to the effect that the holding of such REO Property subsequent
          to the
          close of the third taxable year following the taxable year in which the
          Mortgage
          Loan became an REO Property, will not result in the imposition of taxes
          on
          "prohibited transactions" as defined in Section 860F of the Code, or cause
          the
          transaction to fail to qualify as a REMIC at any time that certificates
          are
          outstanding. Company shall manage, conserve, protect and operate each such
          REO
          Property for the certificateholders solely for the purpose of its prompt
          disposition and sale in a manner which does not cause such property to
          fail to
          qualify as "foreclosure property" within the meaning of Section 860F(a)(2)(E)
          of
          the Code, or any "net income from foreclosure property" which is subject
          to
          taxation under the REMIC provisions of the Code. Pursuant to its efforts
          to sell
          such property, the Company shall either itself or through an agent selected
          by
          Company, protect and conserve such property in the same manner and to such
          an
          extent as is customary in the locality where such property is located.
          Additionally, Company shall perform the tax withholding and reporting related
          to
          Sections 1445 and 6050J of the Code 

        

        Section
          4.04 Establishment
          of Custodial Accounts; Deposits in Custodial Accounts.

        

        The
          Company shall segregate and hold all funds collected and received pursuant
          to
          each Mortgage Loan separate and apart from any of its own funds and general
          assets and shall establish and maintain one or more Custodial Accounts.
          The
          Custodial Account shall be an Eligible Account. Funds ,deposited in the
          Custodial Account shall at all times be insured by the FDIC up to the FDIC
          insurance limits, or must be invested in Permitted Investments for the
          benefit
          of the Purchaser. Funds deposited in the Custodial Account may be drawn
          on by
          the Company in accordance with Section 4.05. The creation of any Custodial
          Account shall be evidenced by a letter agreement in the form shown in Exhibit
          B
          hereto. The original of such letter agreement shall be furnished to the
          Purchaser on the Closing Date, and upon the request of any subsequent
          Purchaser.

        

        The
          Company shall deposit in a mortgage clearing account on a daily basis,
          and in
          the Custodial Account or Accounts no later than 48 hours after receipt
          of funds,
          and retain therein the following payments and collections received or made
          by it
          subsequent to the Cut-off Date, or received by it prior to the Cut-off
          Date but
          allocable to a period subsequent thereto, other than in respect of principal
          and
          interest on the Mortgage Loans due on or before the Cut-off Date:

        

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

        

        (ii)
          all
          payments on account of interest on the Mortgage Loans adjusted to the Mortgage
          Loan Remittance Rate;

        

        (iii)
          all
          Net Liquidation Proceeds;

        

        (iv)
          any
          amounts required to be deposited by the Company in connection with any
          REO
          Property pursuant to Section 4.13 and in connection therewith, the Company
          shall
          provide the Purchaser with written detail itemizing all of such
          amounts;

        

        (v)
          all
          Insurance Proceeds including amounts required to be deposited pursuant
          to
          Sections 4.08, 4.10 and 4.11, other than proceeds to be held in the Escrow
          Account and applied to the restoration or repair of the Mortgaged Property
          or
          released to the Mortgagor in accordance with Accepted Servicing Practices,
          the
          Mortgage Loan Documents or applicable law;

        

        (vi)
          all
          Condemnation Proceeds affecting any Mortgaged Property which are not released
          to
          the Mortgagor in accordance with Accepted Servicing Practices, the loan
          documents or applicable law;

        

        (vii)
          any
          Monthly Advances;

        

        (viii)
          with respect to each full or partial Principal Prepayment, any Prepayment
          Interest Shortfalls, to the extent of the Company’s aggregate Servicing Fee
          received with respect to the related Prepayment Period;

        

        (ix)
          any
          amounts required to be deposited by the Company pursuant to Section 4.10
          in
          connection with the deductible clause in any blanket hazard insurance policy,
          such deposit shall be made from the Company's own funds, without reimbursement
          therefor; and

        

        (x)
          any
          amounts required to be deposited in the Custodial Account pursuant to Section
          4.01, 4.13 or 6.02.

        

        The
          foregoing requirements for deposit in the Custodial Account shall be exclusive,
          it being understood and agreed that, without limiting the generality of
          the
          foregoing, payments in the nature of late payment charges and assumption
          fees,
          to the extent permitted by Section 6.01, need not be deposited by the Company
          in
          the Custodial Account. Any interest paid on funds deposited in the Custodial
          Account by the depository institution shall accrue to the benefit of the
          Company
          and the Company shall be entitled to retain and withdraw such interest
          from the
          Custodial Account pursuant to Section 4.05 (iv). The Purchaser shall not
          be
          responsible for any losses suffered with respect to investment of funds
          in the
          Custodial Account.

        

        

        Section
          4.05 Permitted
          Withdrawals From the Custodial Account.

        

        The
          Company may, from time to time, withdraw from the Custodial Account for
          the
          following purposes:

        

        (i) to
          make
          payments to the Purchaser in the amounts and in the manner provided for
          in
          Section 5.01;

        

        (ii)
          to
          reimburse itself for Monthly Advances, the Company's right to reimburse
          itself
          pursuant to this subclause (ii) being limited to amounts received on the
          related
          Mortgage Loan which represent late collections (net of the related Servicing
          Fees) of principal and/or interest respecting which any such advance was
          made,
          it being understood that, in the case of such reimbursement, the Company's
          right
          thereto shall be prior to the rights of the Purchaser, except that, where
          the
          Company is required to repurchase a Mortgage Loan, pursuant to Section
          3.03, the
          Company's right to such reimbursement shall be subsequent to the payment
          to the
          Purchaser of the Repurchase Price pursuant to such Section and all other
          amounts
          required to be paid to the Purchaser with respect to such Mortgage
          Loan;

        

        (iii)
          to
          reimburse itself for unreimbursed Servicing Advances and any unpaid Servicing
          Fees(or REO administration fees described in Section 4.13), the Company's
          right
          to reimburse itself pursuant to this subclause (iii) with respect to any
          Mortgage Loan being limited to related proceeds from Liquidation Proceeds,
          Condemnation Proceeds and Insurance Proceeds in accordance with the relevant
          provisions of the Fannie Mae Guides or as otherwise set forth in this Agreement;
          any recovery shall be made upon liquidation of the REO Property; 

        

        (iv) to
          pay to
          itself as part of its servicing compensation (a) any interest earned on
          funds in
          the Custodial Account (all such interest to be withdrawn monthly not later
          than
          each Remittance Date), (b) the Servicing Fee from that portion of any payment
          or
          recovery as to interest with respect to a particular Mortgage Loan;

        

        (v) to
          pay to
          itself with respect to each Mortgage Loan that has been repurchased pursuant
          to
          Section 3.03 all amounts received thereon and not distributed as of the
          date on
          which the related repurchase price is determined,

        

        (vi) to
          transfer funds to another Eligible Account in accordance with Section 4.09
          hereof;

        

        (vii)to
          remove funds inadvertently placed in the Custodial Account by the Company;
          

        

        (vi) to
          clear
          and terminate the Custodial Account upon the termination of this Agreement;
          and

        

        (vii)
          to
          reimburse itself for any Nonrecoverable Advances.

         

        Section
          4.06 Establishment
          of Escrow Accounts; Deposits
          in Escrow Accounts.

        

        The
          Company shall segregate and hold all funds collected and received pursuant
          to
          each Mortgage Loan which constitute Escrow Payments separate and apart
          from any
          of its own funds and general assets and shall establish and maintain one
          or more
          Escrow Accounts. The Escrow Account shall be an Eligible Account. Funds
          deposited in each Escrow Account shall at all times be insured in a manner
          to
          provide maximum insurance under the insurance limitations of the FDIC,
          or must
          be invested in Permitted Investments. Funds
          deposited in the Escrow Account may be drawn on by the Company in accordance
          with Section 4.07. The creation of any Escrow Account shall be evidenced
          by a
          letter agreement in the form shown in Exhibit C. The original of such letter
          agreement shall be furnished to the Purchaser on the Closing Date, and
          upon
          request to any subsequent purchaser.

        

        The
          Company shall deposit in a mortgage clearing account on a daily basis,
          and in
          the Escrow Account or Accounts no later than 48 hours after receipt of
          funds,
          and retain therein:

        

        (i) all
          Escrow Payments collected on account of the Mortgage Loans, for the purpose
          of
          effecting timely payment of any such items as required under the terms
          of this
          Agreement;

        

        (ii) all
          Insurance Proceeds which are to be applied to the restoration or repair
          of any
          Mortgaged Property; and

        

        (iii)
          all
          Servicing Advances for Mortgagors whose Escrow Payments are insufficient
          to
          cover escrow disbursements.

        

        The
          Company shall make withdrawals from the Escrow Account only to effect such
          payments as are required under this Agreement, and for such other purposes
          as
          shall be as set forth or in accordance with Section 4.07. The Company shall
          be
          entitled to retain any interest paid on funds deposited in the Escrow Account
          by
          the depository institution to the extent permitted by law and, to the extent
          required by law, the Company shall pay interest on escrowed funds to the
          Mortgagor in accordance with applicable law.. The
          Purchaser shall not be responsible for any losses suffered with respect
          to
          investment of funds in the Escrow Account.

        

        

        Section
          4.07 Permitted
          Withdrawals From Escrow Account.

        

        Withdrawals
          from the Escrow Account may be made by Company only:

        

        (i) to
          effect
          timely payments of ground rents, taxes, assessments, water rates, Primary
          Mortgage Insurance Policy premiums, if applicable, fire and hazard insurance
          premiums, condominium assessments and comparable items;

        

        (ii) to
          reimburse Company for any Servicing Advance made by Company with respect
          to a
          related Mortgage Loan but only from amounts received on the related Mortgage
          Loan which represent late payments or collections of Escrow Payments
          thereunder;

        

        (iii)to
          refund to the Mortgagor any funds as may be determined to be
          overages;

        

        (iv) for
          transfer to the Custodial Account in accordance with the terms of this
          Agreement;

        

        (v) for
          application to restoration or repair of the Mortgaged Property;

        

        (vi) to
          pay to
          the Company, or to the Mortgagor to the extent required by law, any interest
          paid on the funds deposited in the Escrow Account;

        

        (vii)
          to
          clear and terminate the Escrow Account on the termination of this Agreement.
          As
          part of its servicing duties, the Company shall pay to the Mortgagors interest
          on funds in Escrow Account, to the extent required by law, and to the extent
          that interest earned on funds in the Escrow Account is insufficient, shall
          pay
          such interest from its own funds, without any reimbursement therefor;
          and

        

        (viii)
          to
          pay to the Mortgagors or other parties Insurance Proceeds deposited in
          accordance with Section 4.06.

        

        Section
          4.08 Payment
          of Taxes, Insurance and Other Charges;
          Maintenance of Primary Mortgage Insurance
          Policies; Collections Thereunder.

         

        With
          respect to each Mortgage Loan, the Company shall maintain accurate records
          reflecting the status of ground rents, taxes, assessments, water rates
          and other
          charges which are or may become a lien upon the Mortgaged Property and
          the
          status of primary mortgage insurance premiums and fire and hazard insurance
          coverage and shall obtain, from time to time, all bills for the payment
          of such
          charges, including renewal premiums and shall effect payment thereof prior
          to
          the applicable penalty or termination date and at a time appropriate for
          securing maximum discounts allowable, employing for such purpose deposits
          of the
          Mortgagor in the Escrow Account which shall have been estimated and accumulated
          by the Company in amounts sufficient for such purposes, as allowed under
          the
          terms of the Mortgage or applicable law. To the extent that the Mortgage
          does
          not provide for Escrow Payments, the Company shall determine that any such
          payments are made by the Mortgagor at the time they first become due. The
          Company assumes full responsibility for the timely payment of all such
          bills and
          shall effect timely payments of all such bills irrespective of the Mortgagor's
          faithful performance in the payment of same or the making of the Escrow
          Payments
          and shall make advances from its own funds to effect such payments.

        

        The
          Company will maintain in full force and effect Primary Mortgage Insurance
          Policies or Lender Primary Mortgage Insurance Policies issued by a Qualified
          Insurer with respect to each Mortgage Loan for which such coverage is herein
          required. Such coverage will be terminated only with the approval of Purchaser,
          or as required by applicable law or regulation. The Company will not cancel
          or
          refuse to renew any Primary Mortgage Insurance Policy or Lender Primary
          Mortgage
          Insurance Policy in effect on the Closing Date that is required to be kept
          in
          force under this Agreement unless a replacement Primary Mortgage Insurance
          Policy or Lender Primary Mortgage Insurance Policy for such canceled or
          nonrenewed policy is obtained from and maintained with a Qualified Insurer.
          The
          Company shall not take any action which would result in non-coverage under
          any
          applicable Primary Mortgage Insurance Policy or Lender Primary Mortgage
          Insurance Policy of any loss which, but for the actions of the Company
          would
          have been covered thereunder. In connection with any assumption or substitution
          agreement entered into or to be entered into pursuant to Section 6.01,
          the
          Company shall promptly notify the insurer under the related Primary Mortgage
          Insurance Policy or Lender Primary Mortgage Insurance Policy, if any, of
          such
          assumption or substitution of liability in accordance with the terms of
          such
          policy and shall take all actions which may be required by such insurer
          as a
          condition to the continuation of coverage under the Primary Mortgage Insurance
          Policy or Lender Primary Mortgage Insurance Policy. If such Primary Mortgage
          Insurance Policy or Lender Primary Mortgage Insurance Policy is terminated
          as a
          result of such assumption or substitution of liability, the Company shall
          obtain
          a replacement Primary Mortgage Insurance Policy or Lender Primary Mortgage
          Insurance Policy as provided above.

        

        In
          connection with its activities as servicer, the Company agrees to prepare
          and
          present, on behalf of itself and the Purchaser, claims to the insurer under
          any
          Private Mortgage Insurance Policy in a timely fashion in accordance with
          the
          terms of such Primary Mortgage Insurance Policy or Lender Primary Mortgage
          Insurance Policy and, in this regard, to take such action as shall be necessary
          to permit recovery under any Primary Mortgage Insurance Policy or Lender
          Primary
          Mortgage Insurance Policy respecting a defaulted Mortgage Loan. Pursuant
          to
          Section 4.04, any amounts collected by the Company under any Primary Mortgage
          Insurance Policy or Lender Primary Mortgage Insurance Policy shall be deposited
          in the Custodial Account, subject to withdrawal pursuant to Section
          4.05.

        

        Section
          4.09 Transfer
          of Accounts.

        

        The
          Company may transfer the Custodial Account or the Escrow Account to a different
          Eligible Account from time to time. Such transfer shall be made only upon
          obtaining the prior written consent of the Purchaser, which consent will
          not be
          unreasonably withheld.

        

        Section
          4.10 Maintenance
          of Hazard Insurance.

        

        The
          Company shall cause to be maintained for each Mortgage Loan fire and hazard
          insurance with extended coverage as is acceptable to Fannie Mae or FHLMC
          and
          customary in the area where the Mortgaged Property is located in an amount
          which
          is equal to the lesser of (i) the maximum insurable value of the improvements
          securing such Mortgage Loan or (ii) the greater of (a) the outstanding
          principal
          balance of the Mortgage Loan, and (b) an amount such that the proceeds
          thereof
          shall be sufficient to prevent the Mortgagor and/or the mortgagee from
          becoming
          a co-insurer. If required by the Flood Disaster Protection Act of 1973,
          as
          amended, each Mortgage Loan shall be covered by a flood insurance policy
          meeting
          the requirements of the current guidelines of the Federal Insurance
          Administration in effect with an insurance carrier acceptable to Fannie
          Mae or
          FHLMC, in an amount representing coverage not less than the least of (i)
          the
          outstanding principal balance of the Mortgage Loan, (ii) the maximum insurable
          value of the improvements securing such Mortgage Loan or (iii) the maximum
          amount of insurance which is available under the Flood Disaster Protection
          Act
          of 1973, as amended. If at any time during the term of the Mortgage Loan,
          the
          Company determines in accordance with applicable law and pursuant to the
          Fannie
          Mae Guides that a Mortgaged Property is located in a special flood hazard
          area
          and is not covered by flood insurance or is covered in an amount less than
          the
          amount required by the Flood Disaster Protection Act of 1973, as amended,
          the
          Company shall notify the related Mortgagor that the Mortgagor must obtain
          such
          flood insurance coverage, and if said Mortgagor fails to obtain the required
          flood insurance coverage within forty-five (45) days after such notification,
          the Company shall immediately force place the required flood insurance
          on the
          Mortgagor’s behalf. The Company shall also maintain on each REO Property, fire
          and hazard insurance with extended coverage in an amount which is at least
          equal
          to the maximum insurable value of the improvements which are a part of
          such
          property, and, to the extent required and available under the Flood Disaster
          Protection Act of 1973, as amended, flood insurance in an amount as provided
          above. Any amounts collected by the Company under any such policies other
          than
          amounts to be deposited in the Escrow Account and applied to the restoration
          or
          repair of the Mortgaged Property or REO Property, or released to the Mortgagor
          in accordance with Accepted Servicing Practices, shall be deposited in
          the
          Custodial Account, subject to withdrawal pursuant to Section 4.05. It is
          understood and agreed that no other additional insurance need be required
          by the
          Company of the Mortgagor or maintained on property acquired in respect
          of the
          Mortgage Loan, other than pursuant to this Agreement, the Fannie Mae Guides
          or
          such applicable state or federal laws and regulations as shall at any time
          be in
          force and as shall require such additional insurance. All such policies
          shall be
          endorsed with standard mortgagee clauses with loss payable to the Company
          and
          its successors and/or assigns and shall provide for at least thirty (30)
          days
          prior written notice of any cancellation, reduction in the amount or material
          change in coverage to the Company. The Company shall not interfere with
          the
          Mortgagor's freedom of choice in selecting either his insurance carrier
          or
          agent, provided, however, that the Company shall not accept any such insurance
          policies from insurance companies unless such companies are Qualified
          Insurers.

        

        Section
          4.11 Maintenance
          of Mortgage Impairment Insurance
          Policy.

        

        In
          the
          event that the Company shall obtain and maintain a blanket policy issued
          by an
          insurer acceptable to Fannie Mae or FHLMC insuring against hazard losses
          on all
          of the Mortgage Loans, then, to the extent such policy provides coverage
          in an
          amount equal to the amount required pursuant to Section 4.10 and otherwise
          complies with all other requirements of Section 4.10, it shall conclusively
          be
          deemed to have satisfied its obligations as set forth in Section 4.10,
          it being
          understood and agreed that such policy may contain a deductible clause,
          in which
          case the Company shall, in the event that there shall not have been maintained
          on the related Mortgaged Property or REO Property a policy complying with
          Section 4.10, and there shall have been a loss which would have been covered
          by
          such policy, deposit in the Custodial Account the amount not otherwise
          payable
          under the blanket policy because of such deductible clause. In connection
          with
          its activities as servicer of the Mortgage Loans, the Company agrees to
          prepare
          and present, on behalf of the Purchaser, claims under any such blanket
          policy in
          a timely fashion in accordance with the terms of such policy. Upon request
          of
          the Purchaser, the Company shall cause to be delivered to the Purchaser
          a
          certified true copy of such policy and shall use its best efforts to obtain
          a
          statement from the insurer thereunder that such policy shall in no event
          be
          terminated or materially modified without thirty (30) days' prior written
          notice
          to the Purchaser.

        

        Section
          4.12 Fidelity
          Bond, Errors and Omissions Insurance.

        

        The
          Company shall maintain, at its own expense, a blanket fidelity bond and
          an
          errors and omissions insurance policy, with broad coverage with responsible
          companies on all officers, employees or other persons acting in any capacity
          with regard to the Mortgage Loan to handle funds, money, documents and
          papers
          relating to the Mortgage Loan. The Fidelity Bond shall be in the form of
          the
          Mortgage Banker's Blanket Bond and shall protect and insure the Company
          against
          losses, including forgery, theft, embezzlement and fraud of such persons.
          The
          errors and omissions insurance shall protect and insure the Company against
          losses arising out of errors and omissions and negligent acts of such persons.
          Such errors and omissions insurance shall also protect and insure the Company
          against losses in connection with the failure to maintain any insurance
          policies
          required pursuant to this Agreement and the release or satisfaction of
          a
          Mortgage Loan without having obtained payment in full of the indebtedness
          secured thereby. No provision of this Section 4.12 requiring the Fidelity
          Bond
          or errors and omissions insurance shall diminish or relieve the Company
          from its
          duties and obligations as set forth in this Agreement. The minimum coverage
          under any such bond and insurance policy shall be at least equal to the
          corresponding amounts required by Fannie Mae in the Fannie Mae Guides.
          Upon
          request by the Purchaser, the Company shall deliver to the Purchaser a
          certificate from the surety and the insurer as to the existence of the
          Fidelity
          Bond and errors and omissions insurance policy and shall obtain a statement
          from
          the surety and the insurer that such Fidelity Bond or insurance policy
          shall in
          no event be terminated or materially modified without thirty (30) days'
          prior
          written notice to the Purchaser. The Company shall notify the Purchaser
          within
          five (5) business days of receipt of notice that such Fidelity Bond or
          insurance
          policy will be, or has been, materially modified or terminated. The Purchaser
          (or any party having the status of Purchaser hereunder) and any subsidiary
          thereof and their successors or assigns as their interests may appear must
          be
          named as loss payees on the Fidelity Bond and as additional insured on
          the
          errors and omissions policy. Upon request by Purchaser, Company shall provide
          Purchaser with an insurance certificate certifying coverage under this
          Section
          4.12, and will provide an update to such certificate upon request, or upon
          renewal or material modification of coverage.

        

        Section
          4.13 Title,
          Management and Disposition of REO Property.
          

         

        In
          the
          event that title to the Mortgaged Property is acquired in foreclosure or
          by deed
          in lieu of foreclosure, the deed or certificate of sale shall be taken
          in the
          name of the Purchaser or its designee, or in the event the Purchaser or
          its
          designee is not authorized or permitted to hold title to real property
          in the
          state where the REO Property is located, or would be adversely affected
          under
          the "doing business" or tax laws of such state by so holding title, the
          deed or
          certificate of sale shall be taken in the name of such Person or Persons
          as
          shall be consistent with an opinion of counsel obtained by the Company
          from an
          attorney duly licensed to practice law in the state where the REO Property
          is
          located. Any Person or Persons holding such title other than the Purchaser
          shall
          acknowledge in writing that such title is being held as nominee for the
          benefit
          of the Purchaser.

        

        The
          Company shall notify the Purchaser in accordance with the Fannie Mae Guides
          of
          each acquisition of REO Property upon such acquisition (and, in any event,
          shall
          provide notice of the consummation of any foreclosure sale within three
          (3)
          Business Days of the date Company receives notice of such consummation),
          together with a copy of the drive by appraisal or brokers price opinion
          of the
          Mortgaged Property obtained in connection with such acquisition, and thereafter
          assume the responsibility for marketing such REO property in accordance
          with
          Accepted Servicing Practices. Thereafter, the Company shall continue to
          provide
          certain administrative services to the Purchaser relating to such REO Property
          as set forth in this Section 4.13. No Servicing Fee shall be assessed or
          otherwise accrue on any REO Property from and after the date on which it
          becomes
          an REO Property. 

        

        The
          Company shall, either itself or through an agent selected by the Company,
          and in
          accordance with the Fannie Mae Guides manage, conserve, protect and operate
          each
          REO Property in the same manner that it manages, conserves, protects and
          operates other foreclosed property for its own account, and in the same
          manner
          that similar property in the same locality as the REO Property is managed.
          The
          Company shall cause each REO Property to be inspected promptly upon the
          acquisition of title thereto and shall cause each REO Property to be inspected
          at least monthly thereafter or more frequently as required by the circumstances.
          The Company shall make or cause to be made a written report of each such
          inspection. Such reports shall be retained in the Mortgage File and copies
          thereof shall be forwarded by the Company to the Purchaser.

        

        The
          Company shall use its best efforts to dispose of the REO Property as soon
          as
          possible and shall sell such REO Property in any event within one year
          after
          title has been taken to such REO Property, unless the Company determines,
          and
          gives an appropriate notice to the Purchaser to such effect, that a longer
          period is necessary for the orderly liquidation of such REO Property. If
          a
          longer period than one (1) year is permitted under the foregoing sentence
          and is
          necessary to sell any REO Property, the Company shall report monthly to
          the
          Purchaser as to the progress being made in selling such REO Property. No
          REO
          Property shall be marketed for less than the Appraised Value, without the
          prior
          consent of Purchaser. No REO Property shall be sold for less than ninety
          five
          percent (95%) of its Appraised Value, without the prior consent of Purchaser.
          All requests for reimbursement of Servicing Advances shall be in accordance
          with
          the Fannie Mae Guides. The disposition of REO Property shall be carried
          out by
          the Company at such price, and upon such terms and conditions, as the Company
          deems to be in the best interests of the Purchaser (subject to the above
          conditions) only with the prior written consent of the Purchaser. Company
          shall
          provide monthly reports to Purchaser in reference to the status of the
          marketing
          of the REO Properties.

        

        Notwithstanding
          anything to the contrary contained herein, the Purchaser may, at the Purchaser's
          sole option, terminate the Company as servicer of any such REO Property
          without
          payment of any termination fee with respect thereto, provided that the
          Company
          shall on the date said termination takes effect be reimbursed for any
          unreimbursed advances of the Company's funds made pursuant to Section 5.03
          and
          any unreimbursed Servicing Advances and Servicing Fees in each case relating
          to
          the Mortgage Loan underlying such REO Property notwithstanding anything
          to the
          contrary set forth in Section 4.05. In the event of any such termination,
          the
          provisions of Section 11.01 hereof shall apply to said termination and
          the
          transfer of servicing responsibilities with respect to such REO Property
          to the
          Purchaser or its designee. Within five (5) Business Days of any such
          termination, the Company shall, if necessary convey such property to the
          Purchaser and shall further provide the Purchaser with the following information
          regarding the subject REO Property: the related drive by appraisal or brokers
          price opinion, and copies of any related Mortgage Impairment Insurance
          Policy
          claims. In addition, within five (5) Business Days, the Company shall provide
          the Purchaser with the following information regarding the subject REO
          Property:
          the related trustee’s deed upon sale and copies of any related hazard insurance
          claims, or repair bids.

        

        Section
          4.14 Notification
          of Maturity Date.

        

        With
          respect to each Mortgage Loan, the Company shall execute and deliver to
          the
          Mortgagor any and all necessary notices required under applicable law and
          the
          terms of the related Mortgage Note and Mortgage regarding the maturity
          date if
          required under applicable law.

        

        ARTICLE
          V

        

        PAYMENTS
          TO THE PURCHASER

        

        Section
          5.01 Distributions.

        

        On
          each
          Remittance Date, the Company shall distribute by wire transfer of immediately
          available funds to the Purchaser (i) all amounts credited to the Custodial
          Account as of the close of business on the preceding Determination Date,
          net of
          charges against or withdrawals from the Custodial Account pursuant to Section
          4.05, plus (ii) all Monthly Advances, if any, which the Company is obligated
          to
          distribute pursuant to Section 5.03, plus, (iii) interest at the Mortgage
          Loan
          Remittance Rate on any Principal Prepayment from the date of such Principal
          Prepayment through the end of the month for which disbursement is made
          provided
          that the Company’s obligation as to payment of such interest shall be limited to
          the Servicing Fee earned during the month of the distribution, minus (iv)
          any
          amounts attributable to Monthly Payments collected but due on a Due Date
          or
          Dates subsequent to the preceding Determination Date, which amounts shall
          be
          remitted on the Remittance Date next succeeding the Due Period for such
          amounts.
          It is understood that, by operation of Section 4.04, the remittance on
          the first
          Remittance Date with respect to Mortgage Loans purchased pursuant to the
          related
          Term Sheet is to include principal collected after the Cut-off Date through
          the
          preceding Determination Date plus interest, adjusted to the Mortgage Loan
          Remittance Rate collected through such Determination Date exclusive of
          any
          portion thereof allocable to the period prior to the Cut-off Date, with
          the
          adjustments specified in clauses (ii), (iii) and (iv) above.

        

        With
          respect to any remittance received by the Purchaser after the Remittance
          Date,
          the Company shall pay to the Purchaser interest on any such late payment
          at an
          annual rate equal to the Prime Rate, adjusted as of the date of each change
          plus
          two (2) percentage points, but in no event greater than the maximum amount
          permitted by applicable law. Such interest shall cover the period commencing
          with the day following the Business Day such payment was due and ending
          with the
          Business Day on which such payment is made to the Purchaser, both inclusive.
          The
          payment by the Company of any such interest shall not be deemed an extension
          of
          time for payment or a waiver of any Event of Default by the Company. On
          each
          Remittance Date, the Company shall provide a remittance report detailing
          all
          amounts being remitted pursuant to this Section 5.01.

        

        Section
          5.02 Statements
          to the Purchaser.

        

        The
          Company shall furnish to Purchaser an individual loan accounting report,
          as of
          the last Business Day of each month, in the Company's assigned loan number
          order
          to document Mortgage Loan payment activity on an individual Mortgage Loan
          basis.
          With respect to each month, the corresponding individual loan accounting
          report
          shall be received by the Purchaser no later than the tenth calendar day
          of the
          following month on a disk or tape or other computer-readable format in
          such
          format as may be mutually agreed upon by both Purchaser and Company, and
          no
          later than the fifth Business Day of the following month in hard copy,
          and shall
          contain the following:

        

        (i)
          With
          respect to each Monthly Payment, the amount of such remittance allocable
          to
          principal (including a separate breakdown of any Principal Prepayment,
          including
          the date of such prepayment, and any prepayment penalties or premiums,
          along
          with a detailed report of interest on principal prepayment amounts remitted
          in
          accordance with Section 4.04);

        

        (ii)
          with
          respect to each Monthly Payment, the amount of such remittance allocable
          to
          interest;

        

        (iii)
          the
          amount of servicing compensation received by the Company during the prior
          distribution period;

        

        (iv)
          the
          aggregate Stated Principal Balance of the Mortgage Loans;

        

        (v)
          the
          aggregate of any expenses reimbursed to the Company during the prior
          distribution period pursuant to Section 4.05; 

        

        (vi)
          The
          number and aggregate outstanding principal balances of Mortgage Loans (a)
          delinquent (1) 30 to 59 days, (2) 60 to 89 days, (3) 90 days or more; (b)
          as to
          which foreclosure has commenced; and (c) as to which REO Property has been
          acquired; and

        

        The
          Company shall also provide a trial balance, sorted in Purchaser's assigned
          loan
          number order, in the form of Exhibit E hereto, with each such
          Report.

        

        The
          Company shall prepare and file any and all information statements or other
          filings required to be delivered to any governmental taxing authority or
          to
          Purchaser pursuant to any applicable law with respect to the Mortgage Loans
          and
          the transactions contemplated hereby. In addition, the Company shall provide
          Purchaser with such information concerning the Mortgage Loans as is necessary
          for Purchaser to prepare its federal income tax return as Purchaser may
          reasonably request from time to time.

        

        In
          addition, not more than sixty (60) days after the end of each calendar
          year, the
          Company shall furnish to each Person who was a Purchaser at any time during
          such
          calendar year an annual statement in accordance with the requirements of
          applicable federal income tax law as to the aggregate of remittances for
          the
          applicable portion of such year.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        Section
          5.03 Monthly
          Advances by the Company.

        

        Not
          later
          than the close of business on the Business Day preceding each Remittance
          Date,
          the Company shall deposit in the Custodial Account an amount equal to all
          payments not previously advanced by the Company, whether or not deferred
          pursuant to Section 4.01, of principal (due after the Cut-off Date) and
          interest
          not allocable to the period prior to the Cut-off Date, adjusted to the
          Mortgage
          Loan Remittance Rate, which were due on a Mortgage Loan and delinquent
          at the
          close of business on the related Determination Date; provided, however,
          that the
          Company may use the Amount Held for Future Distribution (as defined below)
          then
          on deposit in the Custodial Account to make such Monthly Advances. The
          Company
          shall deposit any portion of the Amount Held for Future Distribution used
          to pay
          Monthly Advances into the Custodial Account on any future Remittance Date
          to the
          extent that the funds that are available in the Custodial Account for remittance
          to the Purchaser on such Remittance Date are less than the amount of payments
          required to be made to the Purchaser on such Remittance Date. 

        

        The
          "Amount Held for Future Distribution" as to any Remittance Date shall be
          the
          total of the amounts held in the Custodial Account at the close of business
          on
          the preceding Determination Date which were received after the Cut-off
          Date on
          account of (i) Liquidation Proceeds, Insurance Proceeds, and Principal
          Prepayments received or made in the month of such Remittance Date, and
          (ii)
          payments which represent early receipt of scheduled payments of principal
          and
          interest due on a date or dates subsequent to the related Due Date.

        

        The
          Company's obligation to make such Monthly Advances as to any Mortgage Loan
          will
          continue through the last Monthly Payment due prior to the payment in full
          of
          the Mortgage Loan, or through the Remittance Date prior to the date on
          which the
          Mortgaged Property liquidates (including Insurance Proceeds, proceeds from
          the
          sale of REO Property or Condemnation Proceeds) with respect to the Mortgage
          Loan
          unless the Company deems such advance to be nonrecoverable. In such event,
          the
          Company shall deliver to the Purchaser an Officer's Certificate of the
          Company
          to the effect that an officer of the Company has reviewed the related Mortgage
          File and has made the reasonable determination that any additional advances
          are
          nonrecoverable. 

        

        Section
          5.04 Liquidation
          Reports.

        

        Upon
          the
          foreclosure sale of any Mortgaged Property or the acquisition thereof by
          the
          Purchaser pursuant to a deed-in-lieu of foreclosure, the Company shall
          submit to
          the Purchaser a liquidation report with respect to such Mortgaged Property
          in a
          form mutually acceptable to Company and Purchaser. The Company shall also
          provide reports on the status of REO Property containing such information
          as
          Purchaser may reasonably require.

         

        ARTICLE
          VI

        

        GENERAL
          SERVICING PROCEDURES

        

        Section
          6.01 Assumption
          Agreements.

        

        The
          Company will, to the extent it has actual knowledge of any conveyance or
          prospective conveyance by any Mortgagor of the Mortgaged Property (whether
          by
          absolute conveyance or by contract of sale, and whether or not the Mortgagor
          remains or is to remain liable under the Mortgage Note and/or the Mortgage),
          exercise its rights to accelerate the maturity of such Mortgage Loan under
          any
          "due-on-sale" clause to the extent permitted by law; provided, however,
          that the
          Company shall not exercise any such rights if prohibited by law or the
          terms of
          the Mortgage Note from doing so or if the exercise of such rights would
          impair
          or threaten to impair any recovery under the related Primary Mortgage Insurance
          Policy or Lender Primary Mortgage Insurance Policy, if any. If the Company
          reasonably believes it is unable under applicable law to enforce such
          "due-on-sale" clause, the Company will enter into an assumption agreement
          with
          the person to whom the Mortgaged Property has been conveyed or is proposed
          to be
          conveyed, pursuant to which such person becomes liable under the Mortgage
          Note
          and, to the extent permitted by applicable state law, the Mortgagor remains
          liable thereon. Where an assumption is allowed pursuant to this Section
          6.01,
          the Company, with the prior consent of the Purchaser and the primary mortgage
          insurer, if any, is authorized to enter into a substitution of liability
          agreement with the person to whom the Mortgaged Property has been conveyed
          or is
          proposed to be conveyed pursuant to which the original mortgagor is released
          from liability and such Person is substituted as mortgagor and becomes
          liable
          under the related Mortgage Note. Any such substitution of liability agreement
          shall be in lieu of an assumption agreement. 

        

        In
          connection with any such assumption or substitution of liability, the Company
          shall follow the underwriting practices and procedures of the Company.
          With
          respect to an assumption or substitution of liability, the Mortgage Interest
          Rate borne by the related Mortgage Note, the amount of the Monthly Payment
          and
          the maturity date may not be changed (except pursuant to the terms of the
          Mortgage Note). If the credit of the proposed transferee does not meet
          such
          underwriting criteria, the Company diligently shall, to the extent permitted
          by
          the Mortgage or the Mortgage Note and by applicable law, accelerate the
          maturity
          of the Mortgage Loan. The Company shall notify the Purchaser that any such
          substitution of liability or assumption agreement has been completed by
          forwarding to the Purchaser the original of any such substitution of liability
          or assumption agreement, which document shall be added to the related Mortgage
          File and shall, for all purposes, be considered a part of such Mortgage
          File to
          the same extent as all other documents and instruments constituting a part
          thereof. All fees collected by the Company for entering into an assumption
          or
          substitution of liability agreement shall belong to the Company.

        

        Notwithstanding
          the foregoing paragraphs of this Section or any other provision of this
          Agreement, the Company shall not be deemed to be in default, breach or
          any other
          violation of its obligations hereunder by reason of any assumption of a
          Mortgage
          Loan by operation of law or any assumption which the Company may be restricted
          by law from preventing, for any reason whatsoever. For purposes of this
          Section
          6.01, the term "assumption" is deemed to also include a sale of the Mortgaged
          Property subject to the Mortgage that is not accompanied by an assumption
          or
          substitution of liability agreement.

        

        Section
          6.02 Satisfaction
          of Mortgages and Release of Mortgage
          Files.

        

        Upon
          the
          payment in full of any Mortgage Loan, or the receipt by the Company of
          a
          notification that payment in full will be escrowed in a manner customary
          for
          such purposes, the Company will immediately notify the Purchaser by a
          certification, which certification shall include a statement to the effect
          that
          all amounts received or to be received in connection with such payment
          which are
          required to be deposited in the Custodial Account pursuant to Section 4.04
          have
          been or will be so deposited, of a Servicing Officer and shall request
          delivery
          to it of the portion of the Mortgage File held by the Purchaser. The Purchaser
          shall no later than five (5) Business Days after receipt of such certification
          and request, release or cause to be released to the Company, the related
          Mortgage Loan Documents and, upon its receipt of such documents, the Company
          shall promptly prepare and deliver to the Purchaser the requisite satisfaction
          or release. No later than five (5) Business Days following its receipt
          of such
          satisfaction or release, the Purchaser shall deliver, or cause to be delivered,
          to the Company the release or satisfaction properly executed by the owner
          of
          record of the applicable mortgage or its duly appointed attorney in fact.
          No
          expense incurred in connection with any instrument of satisfaction or deed
          of
          reconveyance shall be chargeable to the Custodial Account.

        

        In
          the
          event the Company satisfies or releases a Mortgage without having obtained
          payment in full of the indebtedness secured by the Mortgage or should it
          otherwise prejudice any right the Purchaser may have under the mortgage
          instruments, the Company, upon written demand, shall remit within two (2)
          Business Days to the Purchaser the then outstanding principal balance of
          the
          related Mortgage Loan by deposit thereof in the Custodial Account. The
          Company
          shall maintain the Fidelity Bond and errors and omissions insurance insuring
          the
          Company against any loss it may sustain with respect to any Mortgage Loan
          not
          satisfied in accordance with the procedures set forth herein.

        

        From
          time
          to time and as appropriate for the servicing or foreclosure of the Mortgage
          Loan, including for the purpose of collection under any Primary Mortgage
          Insurance Policy or Lender Primary Mortgage Insurance Policy, the Purchaser
          shall, upon request of the Company and delivery to the Purchaser of a servicing
          receipt signed by a Servicing Officer, release the portion of the Mortgage
          File
          held by the Purchaser to the Company. Such servicing receipt shall obligate
          the
          Company to return the related Mortgage documents to the Purchaser when
          the need
          therefor by the Company no longer exists, unless the Mortgage Loan has
          been
          liquidated and the Liquidation Proceeds relating to the Mortgage Loan have
          been
          deposited in the Custodial Account or the Mortgage File or such document
          has
          been delivered to an attorney, or to a public trustee or other public official
          as required by law, for purposes of initiating or pursuing legal action
          or other
          proceedings for the foreclosure of the Mortgaged Property either judicially
          or
          non-judicially, and the Company has delivered to the Purchaser a certificate
          of
          a Servicing Officer certifying as to the name and address of the Person
          to which
          such Mortgage File or such document was delivered and the purpose or purposes
          of
          such delivery. Upon receipt of a certificate of a Servicing Officer stating
          that
          such Mortgage Loan was liquidated, the servicing receipt shall be released
          by
          the Purchaser to the Company.

        

        Section
          6.03 Servicing
          Compensation.

        

        As
          compensation for its services hereunder, the Company shall be entitled
          to
          withdraw from the Custodial Account (to the extent of interest payments
          collected on the Mortgage Loans) or to retain from interest payments collected
          on the Mortgage Loans, the amounts provided for as the Company's Servicing
          Fee,
          subject to payment of compensating interest on Principal Prepayments as
          capped
          by the Servicing Fee pursuant to Section 5.01 (iii). Additional servicing
          compensation in the form of assumption fees, as provided in Section 6.01,
          and
          late payment charges or otherwise shall be retained by the Company to the
          extent
          not required to be deposited in the Custodial Account. No Servicing Fee
          shall be
          payable in connection with partial Monthly Payments. The Company shall
          be
          required to pay all expenses incurred by it in connection with its servicing
          activities hereunder and shall not be entitled to reimbursement therefor
          except
          as specifically provided for.

        

        Section
          6.04 Annual
          Statement as to Compliance.

        

        The
          Company will deliver to the Purchaser and the Master Servicer not later
          February
          28 of each year beginning in February 2005, an Officers' Certificate stating,
          as
          to each signatory thereof, that (i) a review of the activities of the Company
          during the preceding calendar year and of performance under this Agreement
          has
          been made under such officers' supervision, and (ii) to the best of such
          officers' knowledge, based on such review, the Company has fulfilled all
          of its
          obligations under this Agreement throughout such year, or, if there has
          been a
          default in the fulfillment of any such obligation, specifying each such
          default
          known to such officers and the nature and status of cure provisions thereof.
          Copies of such statement shall be provided by the Company to the Purchaser
          upon
          request.

        

        Section
          6.05 Annual
          Independent Certified Public Accountants'
          Servicing Report.

        

        On
          or before February 28 of each year beginning February 28, 2005
          the
          Company at its expense shall cause a firm of independent public accountants
          which is a member of the American Institute of Certified Public Accountants
          to
          furnish a statement to the Purchaser to the effect that such firm has examined
          certain documents and records relating to the Company's servicing of mortgage
          loans of the same type as the Mortgage Loans pursuant to servicing agreements
          substantially similar to this Agreement, which agreements may include this
          Agreement, and that, on the basis of such an examination, conducted
          substantially in the uniform single audit program for mortgage bankers,
          such
          firm is of the opinion that the Company's servicing has been conducted
          in
          compliance with the agreements examined pursuant to this Section 6.05,
          except
          for (i) such exceptions as such firm shall believe to be immaterial, and
          (ii)
          such other exceptions as shall be set forth in such statement. Copies of
          such
          statement shall be provided by the Company to the Purchaser and the Master
          Servicer. In addition, on an annual basis, Company shall provided Purchaser
          with
          copies of its audited financial statements. 

        

        Section
          6.06 Purchaser's
          Right to Examine Company Records.

        

        The
          Purchaser shall have the right to examine and audit at its expense upon
          reasonable notice to the Company, during business hours or at such other
          times
          as might be reasonable under applicable circumstances, any and all of the
          books,
          records, documentation or other information of the Company, or held by
          another
          for the Company or on its behalf or otherwise, which relates to the performance
          or observance by the Company of the terms, covenants or conditions of this
          Agreement.

        

        The
          Company shall provide to the Purchaser and any supervisory agents or examiners
          representing a state or federal governmental agency having jurisdiction
          over the
          Purchaser, including but not limited to OTS, FDIC and other similar entities,
          access to any documentation regarding the Mortgage Loans in the possession
          of
          the Company which may be required by any applicable regulations. Such access
          shall be afforded without charge, upon reasonable request, during normal
          business hours and at the offices of the Company, and in accordance with
          the
          federal government, FDIC, OTS, or any other similar regulations.

        

        Section
          6.07 Annual
          Certification.

        

        (a) For
          so
          long as the Mortgage Loans are being master serviced by the Master Servicer,
          by
          February 28th of each year (or if not a Business Day, the immediately preceding
          Business Day), or at any other time upon thirty (30) days written request,
          an
          officer of the Company shall execute and deliver an Officer’s Certificate to the
          Purchaser and the Master Servicer for the benefit of the Purchaser and
          the
          Master Servicer and their officers, directors and affiliates, certifying
          as to
          the following matters:

        

        
          	(i)  	
                  Based
                    on my knowledge, the information in the Annual Statement of Compliance,
                    the Annual Independent Public Accountant’s Servicing Report and all
                    servicing reports, officer’s certificates and other information relating
                    to the servicing of the Mortgage Loans submitted to the Master
                    Servicer
                    taken as a whole, does not contain any untrue statement of a
                    material fact
                    or omit to state a material fact necessary to make the statements
                    made, in
                    light of the circumstances under which such statements were made,
                    not
                    misleading as of the date of this
                    certification;

                

        

        

        
          	(ii)  	
                  The
                    servicing information required to be provided to the Master Servicer
                    by
                    the Company under this Agreement has been provided to the Master
                    Servicer;

                

        

        

        
          	(iii)  	
                  I
                    am responsible for reviewing the activities performed by the
                    Company under
                    the Agreement and based upon the review required by this Agreement,
                    and
                    except as disclosed in the Annual Statement of Compliance or
                    the Annual
                    Independent Public Accountant’s Servicing Report submitted to the Master
                    Servicer, the Company has, as of the date of this certification
                    fulfilled
                    its obligations under this Agreement;
                    and

                

        

        

        
          	 	
                  (iv) 
                    

                	
                  I
                    have disclosed to the Master Servicer all significant deficiencies
                    relating to the Company’s compliance with the minimum servicing standards
                    in accordance with a review conducted in compliance with the
                    Uniform
                    Single Attestation Program for Mortgage Bankers or similar standard
                    as set
                    forth in the Agreement.

                

        

         

        (b) The
          Company shall indemnify and hold harmless the Purchaser and Master Servicer
          and
          their officers, directors, agents and affiliates from and against any losses,
          damages, penalties, fines, forfeitures, reasonable legal fees and related
          costs,
          judgments and other costs and expenses arising out of or based upon a breach
          by
          the Company or any of its officers, directors, agents or affiliates of
          its
          obligations under this Section 6.07 or the negligence, bad faith or willful
          misconduct of the Company in connection therewith. If the indemnification
          provided for herein is unavailable or insufficient to hold harmless the
          Purchaser or Master Servicer, then the Company agrees that it shall contribute
          to the amount paid or payable by the Purchaser or Master Servicer as a
          result of
          the losses, claims, damages or liabilities of the Purchaser or Master Servicer
          in such proportion as is appropriate to reflect the relative fault of the
          Purchaser or Master Servicer on the one hand and the Company on the other
          in
          connection with a breach of the Company’s obligations under this Section 6.07 or
          the Company’s negligence, bad faith or willful misconduct in connection
          therewith.

        

        

        ARTICLE
          VII

        

        REPORTS
          TO BE PREPARED BY SERVICER

        

        Section
          7.01 Company
          Shall Provide Information as Reasonably
          Required.

        

        The
          Company shall furnish to the Purchaser during the term of this Agreement,
          such
          periodic, special or other reports, information or documentation, whether
          or not
          provided for herein, as shall be necessary, reasonable or appropriate in
          respect
          to the Purchaser, or otherwise in respect to the Mortgage Loans and the
          performance of the Company under this Agreement, including any reports,
          information or documentation reasonably required to comply with any regulations
          regarding any supervisory agents or examiners of the Purchaser all such
          reports
          or information to be as provided by and in accordance with such applicable
          instructions and directions as the Purchaser may reasonably request in
          relation
          to this Agreement or the performance of the Company under this Agreement.
          The
          Company agrees to execute and deliver all such instruments and take all
          such
          action as the Purchaser, from time to time, may reasonably request in order
          to
          effectuate the purpose and to carry out the terms of this
          Agreement.

        

        In
          connection with marketing the Mortgage Loans, the Purchaser may make available
          to a prospective purchaser audited financial statements of the Company
          for the
          most recently completed two (2) fiscal years for which such statements
          are
          available, as well as a Consolidated Statement of Condition at the end
          of the
          last two (2) fiscal years covered by any Consolidated Statement of Operations.
          If it has not already done so, the Company shall furnish promptly to the
          Purchaser or a prospective purchaser copies of the statements specified
          above.

        

        The
          Company shall make reasonably available to the Purchaser or any prospective
          Purchaser a knowledgeable financial or accounting officer for the purpose
          of
          answering questions and to permit any prospective purchaser to inspect
          the
          Company’s servicing facilities for the purpose of satisfying such prospective
          purchaser that the Company has the ability to service the Mortgage Loans
          as
          provided in this Agreement.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        ARTICLE
          VIII

        

        THE
          SERVICER

        

        Section
          8.01 Indemnification;
          Third Party Claims.

        

        The
          Company agrees to indemnify the Purchaser and hold it harmless against
          any and
          all claims, losses, damages, penalties, fines, forfeitures, legal fees
          and
          related costs, judgments, and any other costs, fees and expenses that the
          Purchaser may sustain in any way related to the failure of the Company
          to
          observe and perform its duties, obligations, covenants, and agreements
          to
          service the Mortgage Loans in compliance with the terms of this Agreement.
          The
          Company agrees to indemnify the Purchaser and hold it harmless against
          any and
          all claims, losses, damages, penalties, fines, forfeitures, legal fees
          and
          related costs, judgments, and any other costs, fees and expenses that the
          Purchaser may sustain in any way related to the breach of a representation
          or
          warranty set forth in Sections 3.01 or 3.02 of this Agreement. The Company
          shall
          immediately notify the Purchaser if a claim is made by a third party against
          Company with respect to this Agreement or the Mortgage Loans, assume (with
          the
          consent of the Purchaser) the defense of any such claim and pay all expenses
          in
          connection therewith, including counsel fees, whether or not such claim
          is
          settled prior to judgment, and promptly pay, discharge and satisfy any
          judgment
          or decree which may be entered against it or the Purchaser in respect of
          such
          claim. The Company shall follow any written instructions received from
          the
          Purchaser in connection with such claim. The Purchaser shall promptly reimburse
          the Company for all amounts advanced by it pursuant to the two preceding
          sentences except when the claim relates to the failure of the Company to
          service
          and administer the Mortgages in compliance with the terms of this Agreement,
          the
          breach of representation or warranty set forth in Sections 3.01 or 3.02,
          or the
          gross negligence, bad faith or willful misconduct of Company. The provisions
          of
          this Section 8.01 shall survive termination of this Agreement. Nothing
          herein
          shall be construed to impose any liability on the Company in the event
          it has,
          in good faith, complied with any instructions of Purchaser, which instructions
          are contrary to the terms and provisions of this agreement.

        

        Section
          8.02 Merger
          or Consolidation of the Company.

        

        The
          Company will keep in full effect its existence, rights and franchises as
          a
          corporation under the laws of the state of its incorporation except as
          permitted
          herein, and will obtain and preserve its qualification to do business as
          a
          foreign corporation in each jurisdiction in which such qualification is
          or shall
          be necessary to protect the validity and enforceability of this Agreement,
          or
          any of the Mortgage Loans and to perform its duties under this
          Agreement.

        

        Any
          Person into which the Company may be merged or consolidated, or any corporation
          resulting from any merger, conversion or consolidation to which the Company
          shall be a party, or any Person succeeding to the business of the Company
          whether or not related to loan servicing, shall be the successor of the
          Company
          hereunder, without the execution or filing of any paper or any further
          act on
          the part of any of the parties hereto, anything herein to the contrary
          notwithstanding; provided, however, that the successor or surviving Person,
          or
          the parent company of such successor or surviving Person, shall be an
          institution (i) having a GAAP net worth not less than $25,000,000, (ii)
          which is
          a HUD-approved mortgagee whose primary business is in origination and servicing
          of first lien mortgage loans, and (iii) who is a Fannie Mae or FHLMC approved
          seller/servicer in good standing; provided, however, that if such successor
          or
          surviving Person does not have a GAAP net worth of at least $25,000,000,
          the
          parent company of such successor or surviving Person shall act as guarantor
          with
          respect to such successor’s obligations under this Agreement.

        

        Section
          8.03 Limitation
          on Liability of the Company and Others.

        

        Neither
          the Company nor any of the officers, employees or agents of the Company
          shall be
          under any liability to the Purchaser 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 made in good faith; provided, however, that this provision
          shall not
          protect the Company or any such person against any breach of warranties
          or
          representations made herein, or failure to perform its obligations in compliance
          with any standard of care set forth in this Agreement, or any liability
          which
          would otherwise be imposed by reason of negligence, bad faith or willful
          misconduct, or any breach of the terms and conditions of this Agreement.
          The
          Company and any officer, employee or agent of the Company may rely in good
          faith
          on any document of any kind prima facie properly executed and submitted
          by the
          Purchaser respecting any matters arising hereunder. The Company shall not
          be
          under any obligation to appear in, prosecute or defend any legal action
          which is
          not incidental to its duties to service the Mortgage Loans in accordance
          with
          this Agreement and which in its reasonable opinion may involve it in any
          expenses or liability; provided, however, that the Company may, with the
          consent
          of the Purchaser, undertake any such action which it may deem necessary
          or
          desirable in respect to this Agreement and the rights and duties of the
          parties
          hereto. In such event, the reasonable legal expenses and costs of such
          action
          and any liability resulting therefrom shall be expenses, costs and liabilities
          for which the Purchaser will be liable, and the Company shall be entitled
          to be
          reimbursed therefor from the Purchaser upon written demand.

        

        Section
          8.04 Company
          Not to Assign or Resign.

        

        The
          Company shall not assign this Agreement or resign from the obligations
          and
          duties hereby imposed on it except by mutual consent of the Company and
          the
          Purchaser or upon the determination that its duties hereunder are no longer
          permissible under applicable law and such incapacity cannot be cured by
          the
          Company. Any such determination permitting the resignation of the Company
          shall
          be evidenced by an Opinion of Counsel to such effect delivered to the Purchaser
          which Opinion of Counsel shall be in form and substance acceptable to the
          Purchaser. No such resignation shall become effective until a successor
          shall
          have assumed the Company's responsibilities and obligations hereunder in
          the
          manner provided in Section 11.01.

        

        Section
          8.05 No
          Transfer of Servicing.

        

        With
          respect to the retention of the Company to service the Mortgage Loans hereunder,
          the Company acknowledges that the Purchaser has acted in reliance upon
          the
          Company's independent status, the adequacy of its servicing facilities,
          plan,
          personnel, records and procedures, its integrity, reputation and financial
          standing and the continuance thereof. Without in any way limiting the generality
          of this Section, the Company shall not either assign this Agreement or
          the
          servicing hereunder or delegate its rights or duties hereunder or any portion
          thereof, or sell or otherwise dispose of all or substantially all of its
          property or assets, other than in the normal course of business, without
          the
          prior written approval of the Purchaser, which consent shall not be unreasonably
          withheld; provided that the Company may assign the Agreement and the servicing
          hereunder without the consent of Purchaser to an affiliate of the Company
          to
          which all servicing of the Company is assigned so long as (i) such affiliate
          is
          a Fannie Mae and Freddie Mac approved servicer and (ii) if it is intended
          that
          such affiliate be spun off to the shareholders of the Company, such affiliate
          have a GAAP net worth of at least $25,000,000 and (iii) such affiliate
          shall
          deliver to the Purchaser a certification pursuant to which such affiliate
          shall
          agree to be bound by the terms and conditions of this Agreement and shall
          certify that such affiliate is a Fannie Mae and Freddie Mac approved servicer
          in
          good standing..

        

        Without
          in any way limiting the generality of this Section 8.05, in the event that
          the
          Company either shall assign this Agreement or the servicing responsibilities
          hereunder or delegate its duties hereunder or any portion thereof without
          (i)
          satisfying the requirements set forth herein or (ii) the prior written
          consent
          of the Purchaser, then the Purchaser shall have the right to terminate
          this
          Agreement, without any payment of any penalty or damages and without any
          liability whatsoever to the Company (other than with respect to accrued
          but
          unpaid Servicing Fees and Servicing Advances remaining unpaid) or any third
          party. 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        ARTICLE
          IX

        

        DEFAULT

        

        Section
          9.01 Events
          of Default.

        

        In
          case
          one or more of the following Events of Default by the Company shall occur
          and be
          continuing, that is to say:

        

        (i)
          any
          failure by the Company to remit to the Purchaser any payment required to
          be made
          under the terms of this Agreement which continues unremedied for a period
          of one
          (1) Business Day; or

        

        (ii)
          failure on the part of the Company duly to observe or perform in any material
          respect any other of the covenants or agreements on the part of the Company
          set
          forth in this Agreement which continues unremedied for a period of thirty
          (30)
          days after the date on which written notice of such failure shall have
          been
          given to the Company by the Purchaser, and the remedial period provided
          for
          herein has expired; or

        

        (iii)
          a
          decree or order of a court or agency or supervisory authority having
          jurisdiction for the appointment of a conservator or receiver or liquidator
          in
          any insolvency, bankruptcy, readjustment of debt, marshalling of assets
          and
          liabilities or similar proceedings, or for the winding-up or liquidation
          of its
          affairs, shall have been entered against the Company and such decree or
          order
          shall have remained in force undischarged or unstayed for a period of sixty
          (60)
          days; or

        

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

        

        (v)
          the
          Company shall admit in writing its inability to pay its debts generally
          as they
          become due, file a petition to take advantage of any applicable insolvency
          or
          reorganization statute, make an assignment for the benefit of its creditors,
          or
          voluntarily suspend payment of its obligations; or

        

        (vi)
          Company ceases to be approved by either Fannie Mae or FHLMC as a mortgage
          loan
          seller or servicer for more than thirty (30) days; or

        

        (vii)
          the
          Company attempts to assign its right to servicing compensation hereunder
          or the
          Company attempts, without the consent of the Purchaser, to sell or otherwise
          dispose of all or substantially all of its property or assets or to assign
          this
          Agreement or the servicing responsibilities hereunder or to delegate its
          duties
          hereunder or any portion thereof; or

        

        (viii)
          the Company ceases to be (a) licensed to service first lien residential
          mortgage
          loans in any jurisdiction in which a Mortgaged Property is located and
          such
          licensing is required, and (b) qualified to transact business in any
          jurisdiction where it is currently so qualified, but only to the extent
          such
          non-qualification materially and adversely affects the Company's ability
          to
          perform its obligations hereunder; or

        

        (ix)
          the
          Company fails to meet the eligibility criteria set forth in the last sentence
          of
          Section 8.02; or

        

        (x) failure
          by the Company to duly perform, within the required time period, its obligations
          under Section 6.04, 6.05 or 6.07, which failure continues unremedied for
          a
          period of fifteen (15) days after the date on which written notice of such
          failure, requiring the same to be remedied, shall have been given to the
          Company
          by any party to this Agreement or by the Master Servicer.

        

        Then,
          and
          in each and every such case, so long as an Event of Default shall not have
          been
          remedied, the Purchaser, by notice in writing to the Company (except in
          the case
          of an Event of Default under clauses (iii), (iv) or (v) above, in which
          case,
          automatically and without notice) Company may, in addition to whatever
          rights
          the Purchaser may have under Sections 3.03 and 8.01 and at law or equity
          or to
          damages, including injunctive relief and specific performance, terminate
          all the
          rights and obligations of the Company under this Agreement and in and to
          the
          Mortgage Loans and the proceeds thereof without compensating the Company
          for the
          same. On or after the receipt by the Company of such written notice (or,
          in the
          case of an Event of Default under clauses (iii), (iv) or (v) above, in
          which
          case, automatically and without notice), all authority and power of the
          Company
          under this Agreement, whether with respect to the Mortgage Loans or otherwise,
          shall pass to and be vested in the successor appointed pursuant to Section
          11.01. Upon written request from the Purchaser, the Company shall prepare,
          execute and deliver, any and all documents and other instruments, place
          in such
          successor's possession all Mortgage Files, and do or accomplish all other
          acts
          or things necessary or appropriate to effect the purposes of such notice
          of
          termination, whether to complete the transfer and endorsement or assignment
          of
          the Mortgage Loans and related documents, or otherwise, at the Company's
          sole
          expense. The Company agrees to cooperate with the Purchaser and such successor
          in effecting the termination of the Company's responsibilities and rights
          hereunder, including, without limitation, the transfer to such successor
          for
          administration by it of all cash amounts which shall at the time be credited
          by
          the Company to the Custodial Account or Escrow Account or thereafter received
          with respect to the Mortgage Loans or any REO Property.

        

        Section
          9.02 Waiver
          of Defaults.

        

        The
          Purchaser may waive only by written notice any default by the Company in
          the
          performance of its obligations hereunder and its consequences. Upon any
          such
          waiver of a past default, such default shall cease to exist, and any Event
          of
          Default arising therefrom shall be deemed to have been remedied for every
          purpose of this Agreement. No such waiver shall extend to any subsequent
          or
          other default or impair any right consequent thereon except to the extent
          expressly so waived in writing.

        

        ARTICLE
          X

        

        TERMINATION

        

        Section
          10.01 Termination.

         

        The
          respective obligations and responsibilities of the Company shall terminate
          upon:
          (i) the later of the final payment or other liquidation (or any advance
          with
          respect thereto) of the last Mortgage Loan and the disposition of all remaining
          REO Property and the remittance of all funds due hereunder; or (ii) by
          mutual
          consent of the Company and the Purchaser in writing; or (iii) termination
          with
          cause under the terms of this Agreement; or (iv) at the Purchaser’s option and
          upon written notice to the Company, if any Mortgage Loan becomes 90 days
          or
          greater delinquent in payment of a scheduled Monthly Payment, but solely
          with
          respect to such Mortgage Loan; or (v) at the Purchaser’s option and upon written
          notice to the Company, if the sum of all Mortgage Loans that are 90 days
          or
          greater delinquent in payment of a scheduled Monthly Payment, (including
          those
          Mortgage Loans subject to bankruptcy, currently in foreclosure and any
          REO
          Properties), exceeds 7% of the aggregate total principal amount of all
          Mortgage
          Loans serviced hereunder; provided, however, that the Purchaser shall not
          have
          the right to terminate the Company if such delinquencies, bankruptcies
          and REO
          properties are resulting from acts beyond the Company’s control, including, but
          not limited to, acts of God, strikes, lockouts, riots, acts of war or terrorism,
          epidemics, nationalization, expropriation, currency restrictions, communication
          line failures, power failures, earthquakes or other natural disasters.
          For
          termination in accordance with clause (iv) of this subsection, the Company
          shall
          be deemed to have been terminated with cause and the provisions of Section
          9.01
          shall apply with respect to such termination. For termination in accordance
          with
          clause (v) of this subsection, the Company shall remain as “Company” under this
          Agreement, however servicing shall transfer to the Purchaser or its designee
          as
          subservicer for the Company, in accordance with a subservicing agreement
          to be
          provided to the Company by the Purchaser, and the Purchaser shall be paid
          a
          subservicing fee of 10 basis points for such subservicing. Simultaneously
          with
          any such termination and the transfer of servicing hereunder, the Company
          shall
          be entitled to be reimbursed for any outstanding Servicing Advances and
          Monthly
          Advances. 

        

         

        ARTICLE
          XI

        

        MISCELLANEOUS
          PROVISIONS

        

        Section
          11.01 Successor
          to the Company.

        

        Prior
          to
          termination of Company's responsibilities and duties under this Agreement
          pursuant to Sections 4.13, 8.04, 9.01, 10.01 (ii) or (iii), the Purchaser
          shall
          (i) succeed to and assume all of the Company's responsibilities, rights,
          duties
          and obligations under this Agreement, or (ii) appoint a successor having
          the
          characteristics set forth in Section 8.02 hereof and which shall succeed
          to all
          rights and assume all of the responsibilities, duties and liabilities of
          the
          Company under this Agreement prior to the termination of Company's
          responsibilities, duties and liabilities under this Agreement. In connection
          with such appointment and assumption, the Purchaser may make such arrangements
          for the compensation of such successor out of payments on Mortgage Loans
          as the
          Purchaser and such successor shall agree. In the event that the Company's
          duties, responsibilities and liabilities under this Agreement should be
          terminated pursuant to the aforementioned Sections, the Company shall discharge
          such duties and responsibilities during the period from the date it acquires
          knowledge of such termination until the effective date thereof with the
          same
          degree of diligence and prudence which it is obligated to exercise under
          this
          Agreement, and shall take no action whatsoever that might impair or prejudice
          the rights or financial condition of its successor. The resignation or
          removal
          of Company pursuant to the aforementioned Sections shall not become effective
          until a successor shall be appointed pursuant to this Section and shall
          in no
          event relieve the Company of the representations and warranties made pursuant
          to
          Sections 3.01, 3.02 and 3.03 and the remedies available to the Purchaser
          thereunder and under Section 8.01, it being understood and agreed that
          the
          provisions of such Sections 3.01, 3.02, 3.03 and 8.01 shall be applicable
          to the
          Company notwithstanding any such resignation or termination of the Company,
          or
          the termination of this Agreement.

        

        Any
          successor appointed as provided herein shall execute, acknowledge and deliver
          to
          the Company and to the Purchaser an instrument accepting such appointment,
          whereupon such successor shall become fully vested with all the rights,
          powers,
          duties, responsibilities, obligations and liabilities of the Company, with
          like
          effect as if originally named as a party to this Agreement. Any termination
          or
          resignation of the Company or this Agreement pursuant to Section 4.13,
          8.04,
          9.01 or 10.01 shall not affect any claims that the Purchaser may have against
          the Company arising prior to any such termination or resignation.

        

        The
          Company shall promptly deliver to the successor the funds in the Custodial
          Account and the Escrow Account and the Mortgage Files and related documents
          and
          statements held by it hereunder and the Company shall account for all funds.
          The
          Company shall execute and deliver such instruments and do such other things
          all
          as may reasonably be required to more fully and definitely vest and confirm
          in
          the successor all such rights, powers, duties, responsibilities, obligations
          and
          liabilities of the Company. Within ten (10) Business Days of the execution
          and
          delivery of such instruments, the successor shall reimburse the Company
          for
          unrecovered Servicing Advances which the successor retains hereunder and
          which
          would otherwise have been recovered by the Company pursuant to this Agreement
          but for the appointment of the successor servicer.

        

        Upon
          a
          successor's acceptance of appointment as such, the Company shall notify
          by mail
          the Purchaser of such appointment.

        

        Section
          11.02 Amendment.

        

        This
          Agreement may be amended from time to time by the Company and the Purchaser
          by
          written agreement signed by the Company and the Purchaser.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        Section
          11.03 Recordation
          of Agreement.

        

        To
          the
          extent permitted by applicable law, this Agreement is subject to recordation
          in
          all appropriate public offices for real property records in all the counties
          or
          other comparable jurisdictions in which any 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 Company at the Company's
          expense on direction of the Purchaser accompanied by an opinion of counsel
          to
          the effect that such recordation materially and beneficially affects the
          interest of the Purchaser or is necessary for the administration or servicing
          of
          the Mortgage Loans.

        

        Section
          11.04 Governing
          Law.

        

        This
          Agreement and the related Term Sheet shall be governed by and construed
          in
          accordance with the laws of the State of New York except to the extent
          preempted
          by Federal law. The obligations, rights and remedies of the parties hereunder
          shall be determined in accordance with such laws.

        

        Section
          11.05 Notices.

        

        Any
          demands, notices or other communications permitted or required hereunder
          shall
          be in writing and shall be deemed conclusively to have been given if personally
          delivered at or mailed by registered mail, postage prepaid, and return
          receipt
          requested or certified mail, return receipt requested, or transmitted by
          telex,
          telegraph or telecopier and confirmed by a similar mailed writing, as
          follows:

        

        (i) if
          to the
          Company:

         

        HomeBanc
          Mortgage Corporation

        2002
          Summit Boulevard, Suite 100

        Atlanta,
          GA 30319 Attention: 

        Debra
          F.
          Watkins, EVP Capital Markets & Treasury

        Telecopier
          No.: (404) 705-2301

        

        With
          a
          copy to:

        

        HomeBanc
          Mortgage Corporation

        2002
          Summit Boulevard, Suite 100

        Atlanta,
          GA 30319

        Attention:
          General Counsel

        Telecopier
          No.: (404) 303-4069

        

        (ii)
          if
          to the Purchaser:

         

        EMC
          Mortgage Corporation 

        Mac
          Arthur Ridge II, 

        909
          Hidden Ridge Drive, Suite 200

        Irving,
          Texas 75038

        Attention:
          Ms. Raylene Ruyle

        Telecopier
          No.: 

        

        With
          a
          copy to:

        

        Bear
          Stearns Mortgage Capital Corporation

        383
          Madison Avenue

        New
          York,
          New York 10179

        Attention:
          Michelle Sterling

        

        or
          such
          other address as may hereafter be furnished to the other party by like
          notice.
          Any such demand, notice or communication hereunder shall be deemed to have
          been
          received on the date delivered to or received at the premises of the addressee
          (as evidenced, in the case of registered or certified mail, by the date
          noted on
          the return receipt).

        

        Section
          11.06 Severability
          of Provisions.

        

        Any
          part,
          provision, representation or warranty of this Agreement and the related
          Term
          Sheet which is prohibited or which is held to be void or unenforceable
          shall be
          ineffective to the extent of such prohibition or unenforceability without
          invalidating the remaining provisions hereof. Any part, provision,
          representation or warranty of this Agreement which is prohibited or
          unenforceable or is held to be void or unenforceable in any jurisdiction
          shall
          be ineffective, as to such jurisdiction, to the extent of such prohibition
          or
          unenforceability without invalidating the remaining provisions hereof,
          and any
          such prohibition or unenforceability in any jurisdiction as to any Mortgage
          Loan
          shall not invalidate or render unenforceable such provision in any other
          jurisdiction. To the extent permitted by applicable law, the parties hereto
          waive any provision of law that prohibits or renders void or unenforceable
          any
          provision hereof. If the invalidity of any part, provision, representation
          or
          warranty of this Agreement shall deprive any party of the economic benefit
          intended to be conferred by this Agreement, the parties shall negotiate,
          in good
          faith, to develop a structure the economic effect of which is nearly as
          possible
          the same as the economic effect of this Agreement without regard to such
          invalidity.

        

        Section
          11.07 Exhibits.

        

        The
          exhibits to this Agreement are hereby incorporated and made a part hereof
          and
          are an integral part of this Agreement.

        

        Section
          11.08 General
          Interpretive Principles.

        

        For
          purposes of this Agreement, except as otherwise expressly provided or unless
          the
          context otherwise requires:

        

        (i)  the
          terms
          defined in this Agreement have the meanings assigned to them in this Agreement
          and include the plural as well as the singular, and the use of any gender
          herein
          shall be deemed to include the other gender;

        

        (ii)
           accounting
          terms not otherwise defined herein have the meanings assigned to them in
          accordance with generally accepted accounting principles;

         

        (iii)
           references
          herein to "Articles", "Sections", Subsections", "Paragraphs", and other
          subdivisions without reference to a document are to designated Articles,
          Sections, Subsections, Paragraphs and other subdivisions of this
          Agreement;

        

        (iv)
           a
          reference to a Subsection without further reference to a Section is a reference
          to such Subsection as contained in the same Section in which the reference
          appears, and this rule shall also apply to Paragraphs and other
          subdivisions;

        

        (v)
           the
          words
          "herein", "hereof ", "hereunder" and other words of similar import refer
          to this
          Agreement as a whole and not to any particular provision; 

        

        (vi)
           the
          term
          "include" or "including" shall mean without limitation by reason of enumeration;
          and

        

        (vii)
           headings
          of the Articles and Sections in this Agreement are for reference purposes
          only
          and shall not be deemed to have any substantive effect.

        

        Section
          11.09 Reproduction
          of Documents.

        

        This
          Agreement and all documents relating thereto, including, without limitation,
          (i)
          consents, waivers and modifications which may hereafter be executed, (ii)
          documents received by any party at the closing, and (iii) financial statements,
          certificates and other information previously or hereafter furnished, may
          be
          reproduced by any photographic, photostatic, microfilm, micro-card, miniature
          photographic or other similar process. The parties agree that any such
          reproduction shall be admissible in evidence as the original itself in
          any
          judicial or administrative proceeding, whether or not the original is in
          existence and whether or not such reproduction was made by a party in the
          regular course of business, and that any enlargement, facsimile or further
          reproduction of such reproduction shall likewise be admissible in
          evidence.

        

        Section
          11.10 Confidentiality
          of Information.

        

        Each
          party recognizes that, in connection with this Agreement, it may become
          privy to
          non-public information regarding the financial condition, operations and
          prospects of the other party. Each party agrees to keep all non-public
          information regarding the other party strictly confidential, and to use
          all such
          information solely in order to effectuate the purpose of the Agreement,
          provided
          that each party may provide confidential information to its employees,
          agents
          and affiliates who have a need to know such information in order to effectuate
          the transaction, provided further that such information is identified as
          confidential non-public information. In addition, confidential information
          may
          be provided to a regulatory authority with supervisory power over Purchaser,
          provided such information is identified as confidential non-public
          information.

        

        Section
          11.11 Recordation
          of Assignments of Mortgage.

        

        For
          each
          Mortgage Loan that is not a MERS Mortgage Loan, to the extent permitted
          by
          applicable law, each of the Assignments 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 and at the Company’s expense in the event
          recordation is either necessary under applicable law or requested by the
          Purchaser at its sole option. 

        

        Section
          11.12 Assignment.

        

        The
          Purchaser shall have the right, without the consent of the Company, to
          assign,
          in whole or in part, its interest under this Agreement with respect to
          some or
          all of the Mortgage Loans, and designate any person to exercise any rights
          of
          the Purchaser hereunder, by executing an Assignment and Assumption Agreement
          substantially in the form of Exhibit D hereto and the assignee or designee
          shall
          accede to the rights and obligations hereunder of the Purchaser with respect
          to
          such Mortgage Loans. In no event shall Purchaser sell a partial interest
          in any
          Mortgage Loan without the written consent of Company, which consent shall
          not be
          unreasonably denied. All references to the Purchaser in this Agreement
          shall be
          deemed to include its assignee or designee. The Company shall have the
          right,
          only with the consent of the Purchaser or otherwise in accordance with
          this
          Agreement, to assign, in whole or in part, its interest under this Agreement
          with respect to some or all of the Mortgage Loans.

        

        Section
          11.13 No
          Partnership.

        

        Nothing
          herein contained shall be deemed or construed to create a co-partnership
          or
          joint venture between the parties hereto and the services of the Company
          shall
          be rendered as an independent contractor and not as agent for
          Purchaser.

        

        Section
          11.14 Execution:
          Successors and Assigns.

        

        This
          Agreement may be executed in one or more counterparts and by the different
          parties hereto on separate counterparts, each of which, when so executed,
          shall
          be deemed to be an original; such counterparts, together, shall constitute
          one
          and the same agreement. Subject to this Agreement shall inure to the benefit
          of
          and be binding upon the Company and the Purchaser and their respective
          successors and assigns.

        

        Section
          11.15 Entire
          Agreement.

        

        The
          Company acknowledges that no representations, agreements or promises were
          made
          to the Company by the Purchaser or any of its employees other than those
          representations, agreements or promises specifically contained herein and
          in the
          Confirmation. The Confirmation and this Agreement and the related Term
          Sheet
          sets forth the entire understanding between the parties hereto; provided,
          however, only this Agreement and the related Term Sheet shall be binding
          upon
          all successors of both parties. In the event of any inconsistency between
          the
          Confirmation and this Agreement, this Agreement and the related Term Sheet
          shall
          control.

        

        Section
          11.16. No
          Solicitation.

        

        From
          and
          after the Closing Date, the Company agrees that it will not take any action
          or
          permit or cause any action to be taken by any of its agents or affiliates,
          to
          personally, by telephone or mail, solicit the borrower or obligor under
          any
          Mortgage Loan to refinance the Mortgage Loan, in whole or in part, without
          the
          prior written consent of the Purchaser. Notwithstanding the foregoing,
          it is
          understood and agreed that (i) promotions undertaken by the Company or
          any
          affiliate of the Company which are directed to the general public at large,
          or
          segments thereof, provided that no segment shall consist primarily of the
          Mortgage Loans, including, without limitation, mass mailing based on
          commercially acquired mailing lists, newspaper, radio and television
          advertisements and (ii) responses to unsolicited requests or inquiries
          made by a
          Mortgagor or an agent of a Mortgagor, shall not constitute solicitation
          under
          this Section 11.16. This Section 11.16 shall not be deemed to preclude
          the
          Company or any of its affiliates from soliciting any Mortgagor for any
          other
          financial products or services. The Company shall use its best efforts
          to
          prevent the sale of the name of any Mortgagor to any Person who is not
          an
          affiliate of the Company, other than as permitted by law.

        

        Section
          11.17. Closing.

        

        The
          closing for the purchase and sale of the Mortgage Loans shall take place
          on the
          related Closing Date. The closing shall be either: by telephone, confirmed
          by
          letter or wire as the parties shall agree, or conducted in person, at such
          place
          as the parties shall agree.

        

        The
          closing for the Mortgage Loans to be purchased on the related Closing Date
          shall
          be subject to each of the following conditions:

        

        (a) at
          least
          one (1) Business Day prior to the related Closing Date, the Company shall
          deliver to the Purchaser a magnetic diskette, or transmit by modem, a listing
          on
          a loan-level basis of the information contained in the related Mortgage
          Loan
          Schedule attached to the related Term Sheet;

        

        (b) all
          of
          the representations and warranties of the Company under this Agreement
          shall be
          materially true and correct as of the related Closing Date and no event
          shall
          have occurred which, with notice or the passage of time, would constitute
          a
          material default under this Agreement;

        

        (c) the
          Purchaser shall have received, or the Purchaser's attorneys shall have
          received
          in escrow, all documents required pursuant to this Agreement, the related
          Term
          Sheet, an opinion of counsel and an officer's certificate, all in such
          forms as
          are agreed upon and acceptable to the Purchaser, duly executed by all
          signatories other than the Purchaser as required pursuant to the terms
          hereof;

        

        (d) the
          Company shall have delivered and released to the Purchaser (or its designee)
          on
          or prior to the related Closing Date all documents required pursuant to
          the
          terms of this Agreement and the related Term Sheet; and

        

        (e) all
          other
          terms and conditions of this Agreement, the related Term Sheet and the
          Confirmation shall have been materially complied with.

        

        Subject
          to the foregoing conditions, the Purchaser shall pay to the Company on
          the
          related Closing Date the Purchase Price, plus accrued interest pursuant
          to
          Section 2.02 of this Agreement, by wire transfer of immediately available
          funds
          to the account designated by the Company.

        

        Section
          11.18. Cooperation
          of Company with a Reconstitution.

        

        The
          Company and the Purchaser agree that with respect to some or all of the
          Mortgage
          Loans, on or after the related Closing Date, on one or more dates (each
          a
          "Reconstitution Date") at the Purchaser's sole option, the Purchaser may
          effect
          a sale (each, a "Reconstitution") of some or all of the Mortgage Loans
          then
          subject to this Agreement, without recourse, to:

        

        (a) 
          one or
          more third party purchasers in one or more in whole loan transfers (each,
          a
          "Whole Loan Transfer"); or

        

        (b) one
          or
          more trusts or other entities to be formed as part of one or more pass-through
          transfers (each, a "Pass-Through Transfer").

        

        The
          Company agrees to execute in connection with any agreements among the Purchaser,
          the Company, and any servicer in connection with a Whole Loan Transfer,
          an
          Assignment, Assumption and Recognition Agreement substantially in the form
          of
          Exhibit D hereto, or, at Purchaser’s request, a seller's warranties and
          servicing agreement or a participation and servicing agreement or similar
          agreement in form and substance reasonably acceptable to the parties, and
          in
          connection with a Pass-Through Transfer, a pooling and servicing agreement
          in
          form and substance reasonably acceptable to the parties, (collectively
          the
          agreements referred to herein are designated, the "Reconstitution Agreements").
          It is understood that any such Reconstitution Agreements will not contain
          any
          greater obligations on the part of Company than are contained in this
          Agreement.

        

        With
          respect to each Whole Loan Transfer and each Pass-Through Transfer entered
          into
          by the Purchaser, the Company agrees (1) to cooperate fully with the Purchaser
          and any prospective purchaser with respect to all reasonable requests and
          due
          diligence procedures; (2) to execute, deliver and perform all Reconstitution
          Agreements required by the Purchaser; (3) to restate the representations
          and
          warranties set forth in this Agreement as of the settlement or closing
          date in
          connection with such Reconstitution (each, a "Reconstitution Date"). In
          that
          connection, the Company shall provide to such servicer or issuer, as the
          case
          may be, and any other participants in such Reconstitution: (i) any and
          all
          information (including servicing portfolio information) and appropriate
          verification of information (including servicing portfolio information)
          which
          may be reasonably available to the Company, whether through letters of
          its
          auditors and counsel or otherwise, as the Purchaser or any such other
          participant shall request upon reasonable demand; and (ii) such additional
          representations, warranties, covenants, opinions of counsel, letters from
          auditors, and certificates of public officials or officers of the Company
          as are
          reasonably agreed upon by the Company and the Purchaser or any such other
          participant. In connection with each Pass-Through Transfer, the Company
          agrees
          to provide reasonable and customary indemnification to the Purchaser and
          its
          affilates for disclosure contained in any offering document relating to
          the
          Company or its affilates, the Mortgage Loans and the underwriting standards
          of
          the Mortgage Loans. The Purchaser shall be responsible for the costs relating
          to
          the delivery of such information. All reasonable and customary costs, fees
          and
          expenses incurred by Company pursuant to this provision shall be reimbursed
          to
          it and be deemed a condition precedent to its execution of any Reconstitution
          Agreement(s).

         

        All
          Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
          remain
          subject to, and serviced in accordance with the terms of, this Agreement
          and the
          related Term Sheet, and with respect thereto this Agreement and the related
          Term
          Sheet shall remain in full force and effect.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        IN
          WITNESS WHEREOF, the Company and the Purchaser have caused their names
          to be
          signed hereto by their respective officers thereunto duly authorized as
          of the
          day and year first above written.

        

        
          	
                  EMC
                    MORTGAGE CORPORATION

                  Purchaser

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 
	 
	
                  HOMEBANC
                    MORTGAGE CORPORATION

                  Company

                
	 	 
	
                  By:

                	 
	
                  Name:

                	
                  Debra
                    F. Watkins

                
	
                  Title:

                	
                  Executive
                    Vice President

                

        

        

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          A

        CONTENTS
          OF MORTGAGE FILE

        

        With
          respect to each Mortgage Loan, the Mortgage File shall include each of
          the
          following items, which shall be available for inspection by the Purchaser,
          and
          which shall be retained by the Company in the Servicing File or delivered
          to the
          Purchaser or its designee pursuant to Sections 2.04 and 2.05 of the Purchase,
          Warranties and Servicing Agreement.

        

        1.
          The
          original Mortgage Note endorsed "Pay to the order of
          ____________________________________________________, without recourse,"
          and
          signed via original signature in the name of the Company by an authorized
          officer, with all intervening endorsements showing a complete chain of
          title
          from the originator to the Company, together with any applicable riders.
          In no
          event may an endorsement be a facsimile endorsement. If the Mortgage Loan
          was
          acquired by the Company in a merger, the endorsement must be by "[Company],
          successor by merger to the [name of predecessor]". If the Mortgage Loan
          was
          acquired or originated by the Company while doing business under another
          name,
          the endorsement must be by "[Company] formerly known as [previous name]".
          Mortgage Notes may be in the form of a lost note affidavit subject to Purchaser
          acceptability. 

        

        2.
          Except
          as provided below and for each Mortgage Loan that is not a MERS Mortgage
          Loan,
          the original Mortgage with evidence of recording thereon. If in connection
          with
          any Mortgage Loan that is not a MERS Mortgage Loan, the Company cannot
          deliver
          or cause to be delivered the original Mortgage with evidence of recording
          thereon on or prior to the related Closing Date because of a delay caused
          by the
          public recording office where such Mortgage has been delivered for recordation
          or because such Mortgage has been lost or because such public recording
          office
          retains the original recorded Mortgage, the Company shall deliver or cause
          to be
          delivered to the Purchaser a photocopy of such Mortgage together with (i)
          in the
          case of a delay caused by the public recording office, an Officer’s Certificate
          of the title insurer insuring the Mortgage stating that such Mortgage has
          been
          delivered to the appropriate public recording office for recordation and
          that
          the original recorded Mortgage or a copy of such Mortgage certified by
          such
          public recording office to be a true and complete copy of the original
          recorded
          Mortgage will be promptly delivered to the Purchaser upon receipt thereof
          by the
          Company; or (ii) in the case of a Mortgage where a public recording office
          retains the original recorded Mortgage or in the case where a Mortgage
          is lost
          after recordation in a public recording office, a copy of such Mortgage
          with the
          recording information thereon certified by such public recording office
          to be a
          true and complete copy of the original recorded Mortgage. With respect
          to each
          MERS Mortgage Loan, the original Mortgage, noting the presence of the MIN
          of the
          Mortgage Loans and either language indicating that the Mortgage Loan is
          a MOM
          Loan or if the Mortgage Loan was not a MOM Loan at origination, the original
          Mortgage and the assignment thereof to MERS, with evidence of recording
          indicated thereon, or a copy of the Mortgage certified by the public recording
          office in which such Mortgage has been recorded;

        

        3.
          The
          original or certified copy, certified by the Company, of the Primary Mortgage
          Insurance Policy, if required.

        

        4. In
          the
          case of each Mortgage Loan that is not a MERS Mortgage Loan, the original
          Assignment of Mortgage, from the Company to “Mortgage Electronic Registration
          Systems, Inc., its successors and assigns, as nominee for EMC Mortgage
          Corporation, its successors and assigns, P.O. Box 2026, Flint, Michigan
          48501-2026,” or otherwise in accordance with Purchaser's instructions, which
          assignment of mortgage shall, but for any blanks requested by Purchaser,
          be in
          form and substance acceptable for recording. If the Mortgage Loan was acquired
          or originated by the Company while doing business under another name, the
          Assignment must be by "[Company] formerly known as [previous name]". If
          the
          Mortgage Loan was acquired by the Company in a merger, the endorsement
          must be
          by "[Company], successor by merger to the [name of predecessor]". None
          of the
          Assignments are blanket assignments of mortgage;

        

        5. The
          original policy of title insurance, including riders and endorsements thereto,
          or if the policy has not yet been issued, a written commitment or interim
          binder
          or preliminary report of title issued by the title insurance or escrow
          company.

        

        6. In
          the
          case of each Mortgage Loan that is not a MERS Mortgage Loan, originals
          of all
          recorded intervening Assignments, or copies thereof, certified by the public
          recording office in which such Assignments have been recorded showing a
          complete
          chain of title from the originator to the Company, with evidence of recording
          thereon, or a copy thereof certified by the public recording office in
          which
          such Assignment has been recorded or, if the original Assignment has not
          been
          returned from the applicable public recording office, a true certified
          copy,
          certified by the Company.

        

        7. Originals,
          or copies thereof certified by the public recording office in which such
          documents have been recorded, of each assumption, extension, modification,
          written assurance or substitution agreements, if applicable, or if the
          original
          of such document has not been returned from the applicable public recording
          office, a true certified copy, certified by the Company. 

        

        8. If
          the
          Mortgage Note or Mortgage or any other material document or instrument
          relating
          to the Mortgage Loan has been signed by a person on behalf of the Mortgagor,
          the
          original or copy of power of attorney or other instrument that authorized
          and
          empowered such person to sign bearing evidence that such instrument has
          been
          recorded, if so required in the appropriate jurisdiction where the Mortgaged
          Property is located, or a copy thereof certified by the public recording
          office
          in which such instrument has been recorded or, if the original instrument
          has
          not been returned from the applicable public recording office, a true certified
          copy, certified by the Company.

        

        9. reserved.

        

        10. Mortgage
          Loan closing statement (Form HUD-1) and any other truth-in-lending or real
          estate settlement procedure forms required by law.

        

        11.
          Residential loan application.

        

        12. Uniform
          underwriter and transmittal summary (Fannie Mae Form 1008) or reasonable
          equivalent.

        

        13. Credit
          report on the mortgagor.

        

        14. Business
          credit report, if applicable.

        

        15. Residential
          appraisal report and attachments thereto.

        

        16. The
          original of any guarantee executed in connection with the Mortgage
          Note.

        

        17. Verification
          of employment and income except for Mortgage Loans originated under a limited
          documentation program, all in accordance with Company's underwriting
          guidelines.

        

        18. Verification
          of acceptable evidence of source and amount of down payment, in accordance
          with
          Company's underwriting guidelines.

        

        19. Photograph
          of the Mortgaged Property (may be part of appraisal).

        

        20. Survey
          of
          the Mortgaged Property, if any.

        

        21. Sales
          contract, if applicable.

        

        22. If
          available, termite report, structural engineer’s report, water portability and
          septic certification.

        

        23. Any
          original security agreement, chattel mortgage or equivalent executed in
          connection with the Mortgage.

        

        24. Name
          affidavit, if applicable.

        

        Notwithstanding
          anything to the contrary herein, Company may provide one certificate for
          all of
          the Mortgage Loans indicating that the documents were delivered for
          recording.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          B

        

        CUSTODIAL
          ACCOUNT LETTER AGREEMENT

        

        ______________,
          2004

        

        To: [_______________________]
          

        (the
          "Depository")

        

        As
          "Company" under the Purchase, Warranties and Servicing Agreement, dated
          as of
          January 1, 2004 Adjustable Rate Mortgage Loans (the "Agreement"), we hereby
          authorize and request you to establish an account, as a Custodial Account
          pursuant to Section 4.04 of the Agreement, to be designated as
          "[______________________________________], in trust for the [Purchaser],
          Owner
          of Adjustable Rate Mortgage Loans". All deposits in the account shall be
          subject
          to withdrawal therefrom by order signed by the Company. This letter is
          submitted
          to you in duplicate. Please execute and return one original to us.

        

        
          	
                  [__________________________]

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 

        

        

        

        The
          undersigned, as "Depository", hereby certifies that the above described
          account
          has been established under Account Number [__________], at the office of
          the
          depository indicated above, and agrees to honor withdrawals on such account
          as
          provided above. The full amount deposited at any time in the account will
          be
          insured up to applicable limits by the Federal Deposit Insurance Corporation
          through the Bank Insurance Fund or the Savings Association Insurance Fund
          or
          will be invested in Permitted Investments as defined in the
          Agreement.

        
          

          
            	
                    [__________________________]

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          C

        

        ESCROW
          ACCOUNT LETTER AGREEMENT

        _____________,
          2004

        

        To: [_______________________]

        (the
          "Depository")

        

        As
          “Company” under the Purchase Warranties and Servicing Agreement, dated as of
          January 1, 2004 Adjustable Rate Mortgage Loans (the "Agreement"), we hereby
          authorize and request you to establish an account, as an Escrow Account
          pursuant
          to Section 4.06 of the Agreement, to be designated as
          "[__________________________], in trust for the [Purchaser], Owner of Adjustable
          Rate Mortgage Loans, and various Mortgagors." All deposits in the account
          shall
          be subject to withdrawal therefrom by order signed by the Company. This
          letter
          is submitted to you in duplicate. Please execute and return one original to
          us.

        
          

          
            	
                    [__________________________]

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

          

        

        

        The
          undersigned, as "Depository", hereby certifies that the above described
          account
          has been established under Account Number __________, at the office of
          the
          depository indicated above, and agrees to honor withdrawals on such account
          as
          provided above. The full amount deposited at any time in the account will
          be
          insured up to applicable limits by the Federal Deposit Insurance Corporation
          through the Bank Insurance Fund or the Savings Association Insurance Fund
          or
          will be invested in Permitted Investments as defined in the
          Agreement.

        
          

          
            	
                    [__________________________]

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        EXHIBIT
          D

        

        FORM
          OF
          PURCHASE, ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

        

        This
          is a
          Purchase, Assignment, Assumption and Recognition Agreement (this “PAAR
          Agreement”) made as of __________, 200__, among EMC Mortgage Corporation (the
“Assignor”), ___________________ (the “Assignee”), and HomeBanc Mortgage
          Corporation (the “Company”).

        

        In
          consideration of the mutual promises contained herein the parties hereto
          agree
          that the residential mortgage loans (the “Assigned Loans”) listed on Attachment
          1 annexed hereto (the "Assigned Loan Schedule") now serviced by Company
          for
          Assignor and its successors and assigns pursuant to the Purchase, Warranties
          and
          Servicing Agreement, dated as of _________, 200__, between Assignor and
          Company
          (the “Purchase Agreement”) shall be subject to the terms of this PAAR Agreement.
          Capitalized terms used herein but not defined shall have the meanings ascribed
          to them in the Purchase Agreement.

        

        Purchase,
          Assignment and Assumption

        

        1. Assignor
          hereby grants, transfers and assigns to Assignee all of the right, title
          and
          interest of Assignor in the Assigned Loans and, as they relate to the Assigned
          Loans, all of its right, title and interest in, to and under the Purchase
          Agreement.

        

        2. Simultaneously
          with the execution hereof, (i) Assignee shall pay to Assignor the “Funding
          Amount” as set forth in that certain letter agreement, dated as of _________
          ____, between Assignee and Assignor (the “Confirmation”) and (ii) Assignor, at
          its expense, shall have caused to be delivered to Assignee or its designee
          the
          Mortgage File for each Assigned Loan in Assignor's or its custodian's
          possession, as set forth in the Purchase Agreement, along with, for each
          Assigned Loan, an endorsement of the Mortgage Note from the applicable
          Company,
          in blank, and an assignment of mortgage in recordable form from the applicable
          Company, in blank. Assignee shall pay the Funding Amount by wire transfer
          of
          immediately available funds to the account specified by Assignor. Assignee
          shall
          be entitled to all scheduled payments due on the Assigned Loans after
          ___________, 200__ and all unscheduled payments or other proceeds or other
          recoveries on the Assigned Loans received on and after _____________,
          200__.

        

        Representations,
          Warranties and Covenants

        

        3. Assignor
          warrants and represents to Assignee and Company as of the date
          hereof:

        

        (a) Attached
          hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
          which agreement is in full force and effect as of the date hereof and the
          provisions of which have not been waived, amended or modified in any respect,
          nor has any notice of termination been given thereunder;

        

        (b) Assignor
          is the lawful owner of the Assigned Loans with full right to transfer the
          Assigned Loans and any and all of its interests, rights and obligations
          under
          the Purchase Agreement as they relate to the Assigned Loans, free and clear
          from
          any and all claims and encumbrances; and upon the transfer of the Assigned
          Loans
          to Assignee as contemplated herein, Assignee shall have good title to each
          and
          every Assigned Loan, as well as any and all of Assignee’s interests, rights and
          obligations under the Purchase Agreement as they relate to the Assigned
          Loans,
          free and clear of any and all liens, claims and encumbrances;

        

        (c) There
          are
          no offsets, counterclaims or other defenses available to Company with respect
          to
          the Assigned Loans or the Purchase Agreement;

         

        (d) Assignor
          has no knowledge of, and has not received notice of, any waivers under,
          or any
          modification of, any Assigned Loan;

        

        (e) Assignor
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation, and has all requisite power and authority
          to
          acquire, own and sell the Assigned Loans;

        

        (f) Assignor
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this PAAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          PAAR
          Agreement is in the ordinary course of Assignor’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignor’s charter or by-laws or any legal restriction, or any material
          agreement or instrument to which Assignor is now a party or by which it
          is
          bound, or result in the violation of any law, rule, regulation, order,
          judgment
          or decree to which Assignor or its property is subject. The execution,
          delivery
          and performance by Assignor of this PAAR Agreement and the consummation
          by it of
          the transactions contemplated hereby, have been duly authorized by all
          necessary
          corporate action on part of Assignor. This PAAR Agreement has been duly
          executed
          and delivered by Assignor and, upon the due authorization, execution and
          delivery by Assignee and Company, will constitute the valid and legally
          binding
          obligation of Assignor enforceable against Assignor in accordance with
          its terms
          except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in effect
          relating
          to creditors’ rights generally, and by general principles of equity regardless
          of whether enforceability is considered in a proceeding in equity or at
          law;

         

        (g)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignor in connection with the execution, delivery or performance by Assignor
          of this PAAR Agreement, or the consummation by it of the transactions
          contemplated hereby; and

        

        (h)  Neither
          Assignor nor anyone acting on its behalf has offered, transferred, pledged,
          sold
          or otherwise disposed of the Assigned Loans or any interest in the Assigned
          Loans, or solicited any offer to buy or accept a transfer, pledge or other
          disposition of the Assigned Loans, or any interest in the Assigned Loans
          or
          otherwise approached or negotiated with respect to the Assigned Loans,
          or any
          interest in the Assigned Loans with any Person in any manner, or made any
          general solicitation by means of general advertising or in any other manner,
          or
          taken any other action which would constitute a distribution of the Assigned
          Loans under the Securities Act of 1933, as amended (the “1933 Act”) or which
          would render the disposition of the Assigned Loans a violation of Section
          5 of
          the 1933 Act or require registration pursuant thereto.

         

        4. Assignee
          warrants and represents to, and covenants with, Assignor and Company as
          of the
          date hereof:

         

        (a) Assignee
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its organization and has all requisite power and authority
          to
          acquire, own and purchase the Assigned Loans;

        

        (b) Assignee
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this PAAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          PAAR
          Agreement is in the ordinary course of Assignee’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignee’s charter or by-laws or any legal restriction, or any material
          agreement or instrument to which Assignee is now a party or by which it
          is
          bound, or result in the violation of any law, rule, regulation, order,
          judgment
          or decree to which Assignee or its property is subject. The execution,
          delivery
          and performance by Assignee of this PAAR Agreement and the consummation
          by it of
          the transactions contemplated hereby, have been duly authorized by all
          necessary
          corporate action on part of Assignee. This PAAR Agreement has been duly
          executed
          and delivered by Assignee and, upon the due authorization, execution and
          delivery by Assignor and Company, will constitute the valid and legally
          binding
          obligation of Assignee enforceable against Assignee in accordance with
          its terms
          except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in effect
          relating
          to creditors’ rights generally, and by general principles of equity regardless
          of whether enforceability is considered in a proceeding in equity or at
          law;

        

        (c) No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignee in connection with the execution, delivery or performance by Assignee
          of this PAAR Agreement, or the consummation by it of the transactions
          contemplated hereby; and 

        

        (d) Assignee
          agrees to be bound as “Purchaser” by all of the terms, covenants and conditions
          of the Purchase Agreement with respect to the Assigned Loans, and from
          and after
          the date hereof, Assignee assumes for the benefit of each of Assignor and
          Company all of Assignor's obligations as “Purchaser” thereunder but solely with
          respect to such Assigned Loans.

         

        5. Company
          warrants and represents to, and covenant with, Assignor and Assignee as
          of the
          date hereof:

        

        (a) Attached
          hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
          which agreement is in full force and effect as of the date hereof and the
          provisions of which have not been waived, amended or modified in any respect,
          nor has any notice of termination been given thereunder; 

        

         (b)
           Company
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation, and has all requisite power and authority
          to
          service the Assigned Loans and otherwise to perform its obligations under
          the
          Purchase Agreement;

        

        
          	(c)  	
                  Company
                    has full corporate power and authority to execute, deliver and
                    perform its
                    obligations under this PAAR Agreement, and to consummate the
                    transactions
                    set forth herein. The consummation of the transactions contemplated
                    by
                    this PAAR Agreement is in the ordinary course of Company’s business and
                    will not conflict with, or result in a breach of, any of the
                    terms,
                    conditions or provisions of Company’s charter or by-laws or any legal
                    restriction, or any material agreement or instrument to which
                    Company is
                    now a party or by which it is bound, or result in the violation
                    of any
                    law, rule, regulation, order, judgment or decree to which Company
                    or its
                    property is subject. The execution, delivery and performance
                    by Company of
                    this PAAR Agreement and the consummation by it of the transactions
                    contemplated hereby, have been duly authorized by all necessary
                    corporate
                    action on part of Company. This PAAR Agreement has been duly
                    executed and
                    delivered by Company, and, upon the due authorization, execution
                    and
                    delivery by Assignor and Assignee, will constitute the valid
                    and legally
                    binding obligation of Company, enforceable against Company in
                    accordance
                    with its terms except as enforceability may be limited by bankruptcy,
                    reorganization, insolvency, moratorium or other similar laws
                    now or
                    hereafter in effect relating to creditors’ rights generally, and by
                    general principles of equity regardless of whether enforceability
                    is
                    considered in a proceeding in equity or at
                    law;

                

        

        

        
          	(d)  	
                  No
                    consent, approval, order or authorization of, or declaration,
                    filing or
                    registration with, any governmental entity is required to be
                    obtained or
                    made by Assignee in connection with the execution, delivery or
                    performance
                    by Company of this PAAR Agreement, or the consummation by it
                    of the
                    transactions contemplated hereby;
                    and

                

        

        

        
          	(e)  	
                  Except
                    as otherwise disclosed, no event has occurred
                    from the Closing Date to the date hereof which would render the
                    representations and warranties as to the related Assigned Loans
                    made by
                    the Company in Sections 3.01 and 3.02 of the Purchase Agreement
                    to be
                    untrue in any material respect.

                

        

        

        Recognition
          of Assignee

        

        6. From
          and
          after the date hereof, Company shall recognize Assignee as owner of the
          Assigned
          Loans and will service the Assigned Loans in accordance with the Purchase
          Agreement. It is the intention of Assignor, Company and Assignee that this
          PAAR
          Agreement shall be binding upon and for the benefit of the respective successors
          and assigns of the parties hereto. Neither Company nor Assignor shall amend
          or
          agree to amend, modify, waiver, or otherwise alter any of the terms or
          provisions of the Purchase Agreement which amendment, modification, waiver
          or
          other alteration would in any way affect the Assigned Loans without the
          prior
          written consent of Assignee.

        

         

        Miscellaneous

        

        7. All
          demands, notices and communications related to the Assigned Loans, the
          Purchase
          Agreement and this PAAR Agreement shall be in writing and shall be deemed
          to
          have been duly given if personally delivered at or mailed by registered
          mail,
          postage prepaid, as follows:

         

        

        (a) In
          the
          case of Company,

        

        HomeBanc
          Mortgage Corporation

        2002
          Summit Boulevard, Suite 100

        Atlanta,
          GA 30319

        Attention:
          Debra F. Watkins, EVP Capital Markets & Treasury

        Telecopier
          No.: (404) 705-2301

         

        With
          a copy to 

        HomeBanc
          Mortgage Corporation

        2002
          Summit Boulevard, Suite 100

        Atlanta,
          GA 30319

        Attention:
          General Counsel

        Telecopier
          No.: (404) 303-4069

        

        
          	(b)  	
                  In
                    the case of Assignor,

                

        

        

        ____________________

        ____________________

        ____________________

        ____________________

        ____________________ 

        

        (c) In
          the
          case of Assignee,

        

        EMC
          Mortgage Corporation 

        Mac
          Arthur Ridge II 

        909
          Hidden Ridge Drive, Suite 200

        Irving,
          Texas 75038

        Attention:
          Ms. Raylene Ruyle

        Telecopier
          No.: 

        

        with
          a
          copy to:

        

        Bear
          Stearns Mortgage Capital Corporation 

        383
          Madison Avenue

        New
          York,
          New York 10179

        Attention:
          Michelle Sterling

        

        8. Each
          party will pay any commissions it has incurred and the fees of its attorneys
          in
          connection with the negotiations for, documenting of and closing of the
          transactions contemplated by this PAAR Agreement. 

        

        9. This
          PAAR
          Agreement shall be construed in accordance with the laws of the State of
          New
          York, without regard to conflicts of law principles, and the obligations,
          rights
          and remedies of the parties hereunder shall be determined in accordance
          with
          such laws.

        

        10. No
          term
          or provision of this PAAR Agreement may be waived or modified unless such
          waiver
          or modification is in writing and signed by the party against whom such
          waiver
          or modification is sought to be enforced.

        

        11. This
          PAAR
          Agreement shall inure to the benefit of the successors and assigns of the
          parties hereto. Any entity into which Assignor, Assignee or Company may
          be
          merged or consolidated shall, without the requirement for any further writing,
          be deemed Assignor, Assignee or Company, respectively, hereunder.

        

        12. This
          PAAR
          Agreement shall survive the conveyance of the Assigned Loans, the assignment
          of
          the Purchase Agreement to the extent of the Assigned Loans by Assignor
          to
          Assignee and the termination of the Purchase Agreement.

        

        13. This
          PAAR
          Agreement may be executed simultaneously in any number of counterparts.
          Each
          counterpart shall be deemed to be an original and all such counterparts
          shall
          constitute one and the same instrument.

        

        14. In
          the
          event that any provision of this PAAR Agreement conflicts with any provision
          of
          the Purchase Agreement with respect to the Assigned Loans, the terms of
          this
          PAAR Agreement shall control. In the event that any provision of this PAAR
          Agreement conflicts with any provision of the Confirmation with respect
          to the
          Assigned Loans, the terms of this PAAR Agreement shall control. Notwithstanding
          anything to the contrary herein contained, the parties hereto understand
          and
          agree that no provision of the PAAR Agreement imposes upon the Company
          any duty
          or obligation greater than that referenced or otherwise recited in the
          Purchase
          Agreement.

        

        

        [Modification
          of Purchase Agreement

        

        
          	15.  	
                  The
                    Company and Assignor hereby amend the Purchase Agreement as
                    follows:

                

        

        

        (a) The
          following definitions are added to Section 1.01 of the Purchase
          Agreement:

        

        Securities
          Administrator: ________________________

        

        Supplemental
          PMI Insurer: ________________________

        

        Supplemental
          PMI Policy: The
          primary guarantee insurance policy of the Supplemental PMI Insurer attached
          hereto as Exhibit J, or any successor Supplemental PMI Policy given to
          the
          Servicer by the Assignee.

        

        Trustee:
           ________________________

        

        (b) The
          following definition is amended and restated:

        

        Insurance
          Proceeds: Proceeds
          of any Primary Mortgage Insurance Policy, the Supplemental PMI Policy,
          any title
          policy, any hazard insurance policy or any other insurance policy covering
          a
          Mortgage Loan or other related Mortgaged Property, including any amounts
          required to be deposited in the Custodial Account pursuant to Section 4.04,
          to
          the extent such proceeds are not to be applied to the restoration of the
          related
          Mortgaged Property or released to the Mortgagor in accordance with Accepted
          Servicing Practices.

        

        (c) The
          following are added as the fourth, fifth and sixth paragraphs of Section
          4.08:

        

        “In
          connection with its activities as servicer, the Company agrees to prepare
          and
          present, on behalf of itself and the Purchaser, claims to the Supplemental
          PMI
          Insurer with respect to the Supplemental PMI Policy and, in this regard,
          to take
          such action as shall be necessary to permit recovery under any Supplemental
          PMI
          Policy respecting a defaulted Mortgage Loan. Pursuant to Section 4.04,
          any
          amounts collected by the Company under any Supplemental PMI Policy shall
          be
          deposited in the Custodial Account, subject to withdrawal pursuant to Section
          4.05.

        

        In
          accordance with the Supplemental PMI Policy, the Company shall provide
          to the
          Supplemental PMI Insurer any required information regarding the Mortgage
          Loans.

        

        The
          Company shall provide to the [Securities Administrator] on a monthly basis
          via
          computer tape, or other mutually acceptable format, the unpaid principal
          balance, insurer certificate number, lender loan number, and premium due
          the
          Supplemental PMI Insurer for each Mortgage Loan covered by the Supplemental
          PMI
          Policy. In addition, the Company agrees to forward to the Purchaser and
          the
          [Securities Administrator] any statements or other reports given by the
          Supplemental PMI Insurer to the Servicer in connection with a claim under
          the
          Supplemental PMI Policy.”

        

        (d) Clause
          (vi) of Section 6.1 is amended to read as follows:

        

        “Company
          ceases to be approved by either Fannie Mae or FHLMC as a mortgage loan
          seller or
          servicer for more than thirty (30) days, or the Company fails to meet the
          servicer eligibility requirements of the Supplemental PMI Insurer;
          or”]

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have executed this PAAR Agreement as
          of the
          day and year first above written.

        

        
          	
                  EMC
                    MORTGAGE CORPORATION

                  Assignor

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 
	 
	
                  Assignee

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 
	
                  HOMEBANC
                    MORTGAGE CORPORATION

                  Company

                
	 	 
	
                  By:

                	 
	
                  Name:

                	
                  Debra
                    F. Watkins

                
	
                  Title:

                	
                  Executive
                    Vice President

                

        

        

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        ATTACHMENT
          1

        

        ASSIGNED
          LOAN SCHEDULE

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        ATTACHMENT
          2

        

        PURCHASE,
          WARRANTIES AND SERVICING AGREEMENT

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          E

        

        FORM
          OF
          TRIAL BALANCE

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          G

        

        REQUEST
          FOR RELEASE OF DOCUMENTS AND RECEIPT

        

        RE: Mortgage
          Loan #___________________________________

        BORROWER:__________________________________________________

        PROPERTY:
          __________________________________________________

        

        

        Pursuant
          to a Purchase, Warranties and Servicing Agreement (the "Agreement") between
          the
          Company and the Purchaser, the undersigned hereby certifies that he or
          she is an
          officer of the Company requesting release of the documents for the reason
          specified below. The undersigned further certifies that:

        

        (Check
          one of the items below)

        

        _____ On
          _________________, the above captioned mortgage loan was paid in full or
          that
          the Company has been notified that payment in full has been or will be
          escrowed.
          The Company hereby certifies that all amounts with respect to this loan
          which
          are required under the Agreement have been or will be deposited in the
          Custodial
          Account as required.

        

        _____ The
          above
          captioned loan is being repurchased pursuant to the terms of the Agreement.
          The
          Company hereby certifies that the repurchase price has been credited to
          the
          Custodial Account as required under the Agreement.

        

        _____ The
          above
          captioned loan is being placed in foreclosure and the original documents
          are
          required to proceed with the foreclosure action. The Company hereby certifies
          that the documents will be returned to the Purchaser in the event of
          reinstatement.

        

        _____ Other
          (explain)

        

        _______________________________________________________

        _______________________________________________________

        

        All
          capitalized terms used herein and not defined shall have the meanings assigned
          to them in the Agreement.

        

        Based
          on
          this certification and the indemnities provided for in the Agreement, please
          release to the Company all original mortgage documents in your possession
          relating to this loan.

        

        Dated:_________________

        

        
          	
                  By:

                	 
	 	
                  Signature

                
	
                  Title:

                	 

        

        

        Send
          documents to: _____________________________________________

        _____________________________________________

        _____________________________________________

        

        Acknowledgement:

        

        Purchaser
          hereby acknowledges that all original documents previously released on
          the above
          captioned mortgage loan have been returned and received by the
          Purchaser.

        

        

        Dated:________________

        

        
          	
                  By:

                	 
	 	
                  Signature

                
	
                  Title:

                	 

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        

        EXHIBIT
          H

        

        COMPANY’S
          UNDERWRITING GUIDELINES

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        EXHIBIT
          I

        

        

        TERM
          SHEET

        

        This
          TERM
          SHEET (the "Term Sheet") dated _____________, between HomeBanc Mortgage
          Corporation, a Delaware corporation, located at 2002 Summit Boulevard,
          Suite
          100, Atlanta, GA 30319 (the “Company”) and EMC Mortgage Corporation, a Delaware
          corporation, located at ______________ (the "Purchaser") is made pursuant
          to the
          terms and conditions of that certain Purchase, Warranties and Servicing
          Agreement (the "Agreement") dated as of January 1, 2004, between the Company
          and
          the Purchaser, the provisions of which are incorporated herein as if set
          forth
          in full herein, as such terms and conditions may be modified or supplemented
          hereby. All initially capitalized terms used herein unless otherwise defined
          shall have the meanings ascribed thereto in the Agreement. 

        

        The
          Purchaser hereby purchases from the Company and the Company hereby sells
          to the
          Purchaser, all of the Company’s right, title and interest in and to the Mortgage
          Loans described on the Mortgage Loan Schedule annexed hereto as Schedule
          I,
          pursuant to and in accordance with the terms and conditions set forth in
          the
          Agreement, as same may be supplemented or modified hereby. Hereinafter,
          the
          Company shall service the Mortgage Loans for the benefit of the Purchaser
          and
          all subsequent transferees of the Mortgage Loans pursuant to and in accordance
          with the terms and conditions set forth in the Agreement. 

        

        1. Definitions

        

        For
          purposes of the Mortgage Loans to be sold pursuant to this Term Sheet,
          the
          following terms shall have the following meanings:

        

        Aggregate
          Principal Balance

        (as
          of
          the Cut-Off Date):    

        

        Closing
          Date:    

        

        Custodian:    

        

        Cut-off
          Date:    

        

        Initial
          Weighted Average

        Mortgage
          Loan Remittance Rate:  

        

        Mortgage
          Loan:    

        

        Purchase
          Price Percentage:   

        

        Servicing
          Fee Rate:   

        Additional
          Closing Conditions: 

        

        In
          addition to the conditions specified in the Agreement, the obligation of
          each of
          the Company and the Purchaser is subject to the fulfillment, on or prior
          to the
          applicable Closing Date, of the following additional conditions: [None].
          

        

        Additional
          Loan Documents: 

        

        In
          addition to the contents of the Mortgage File specified in the Agreement,
          the
          following documents shall be delivered with respect to the Mortgage Loans:
          [None]

        

        [Additional]
          [Modification] of Representations and Warranties:

         

        [In
          addition to the representations and warranties set forth in the Agreement,
          as of
          the date hereof, the Company makes the following additional representations
          and
          warranties with respect to the Mortgage Loans: [None]. [Notwithstanding
          anything
          to the contrary set forth in the Agreement, with respect to each Mortgage
          Loan
          to be sold on the Closing Date, the representation and warranty set forth
          in
          Section ______ of the Agreement shall be modified to read as
          follows:]

        

        Except
          as
          modified herein, Section ______ of the Agreement shall remain in full force
          and
          effect as of the date hereof.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have caused their names to be signed
          hereto
          by their respective duly authorized officers as of the date first above
          written.

         

        

        
          	
                  HOMEBANC
                    MORTGAGE CORPORATION

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 
	 
	 
	
                  EMC
                    MORTGAGE CORPORATION

                
	 	 
	
                  By:

                	 
	
                  Name:

                	 
	
                  Title:

                	 

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        

          

          AMENDED
            AND RESTATED AMENDMENT
            NUMBER ONE

          to
            the

          

          PURCHASE,
            WARRANTIES AND SERVICING AGREEMENT

          

          Dated
            as
            of January 27, 2006

          

          among

          

          EMC
            MORTGAGE CORPORATION, 

          as
            Purchaser

          

          and

          

          HOMEBANC
            MORTGAGE CORPORATION,

          as
            Company

          

          This
            AMENDED AND RESTATED AMENDMENT NUMBER ONE (this “Amendment”) is made and entered
            into this 27th
            day of
            January, 2006, by and between EMC Mortgage Corporation, a Delaware corporation,
            as purchaser (the “Purchaser”) and HomeBanc Mortgage Corporation, as company
            (the “Company”) in connection with the Purchase, Warranties and Servicing
            Agreement, dated as of January 1, 2004, between the above mentioned parties
            (the
“Agreement”). This Amendment is made pursuant to Section 11.02 of the
            Agreement.

          

          RECITALS

           

          WHEREAS,
             the
            parties hereto have entered into the Agreement; 

          

          WHEREAS,
            the Agreement provides that the parties thereto may enter into an amendment
            to
            the Agreement;

          

          WHEREAS,
            the parties hereto desire to amend the Agreement as set forth in this
            Amendment;

          

          WHEREAS,
            the Agreement provides that the Agreement may be amended from time to
            time by
            the Company and the Purchaser by written agreement signed by the Company
            and the
            Purchaser; and

          

          NOW,
            THEREFORE, in consideration of the premises and for other good and valuable
            consideration, the receipt and sufficiency of which is hereby acknowledged,
            the
            parties hereto agree as follows:

          

          1. Capitalized
            terms used herein and not defined herein shall have the meanings assigned
            to
            such terms in the Agreement. 

          

          2. Article
            I
            of the Agreement is hereby amended effective as of the date hereof by
            adding the
            following definitions to Section 1.01: 

          

          Commission
            or SEC:
            The
            Securities and Exchange Commission.

          

          Depositor:
            The
            depositor, as such term is defined in Regulation AB, with respect to
            any
            Securitization Transaction.

          

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

          

          Master
            Servicer:
            With
            respect to any Securitization Transaction, the “master servicer,” if any,
            identified in the related transaction documents.

          

          Pass-Through
            Transfer:
            Any
            transaction involving either (1) a sale or other transfer of some or
            all of the
            Mortgage Loans directly or indirectly to an issuing entity in connection
            with an
            issuance of publicly offered or privately placed, rated or unrated
            mortgage-backed securities or (2) an issuance of publicly offered or
            privately
            placed, rated or unrated securities, the payments on which are determined
            primarily by reference to one or more portfolios of residential mortgage
            loans
            consisting, in whole or in part, of some or all of the Mortgage
            Loans.

          

          Qualified
            Correspondent:
            Any Person from which the Company purchased Mortgage Loans, provided
            that the
            following conditions are satisfied: (i) such Mortgage Loans were originated
            pursuant to an agreement between the Company and such Person that contemplated
            that such Person would underwrite mortgage loans from time to time, for
            sale to
            the Company, in accordance with underwriting guidelines designated by
            the
            Company (“Designated Guidelines”) or guidelines that do not vary materially from
            such Designated Guidelines; (ii) such Mortgage Loans were in fact underwritten
            as described in clause (i) above and were acquired by the Company within
            180
            days after origination; (iii) either (x) the Designated Guidelines were,
            at the
            time such Mortgage Loans were originated, used by the Company in origination
            of
            mortgage loans of the same type as the Mortgage Loans for the Company’s own
            account or (y) the Designated Guidelines were, at the time such Mortgage
            Loans
            were underwritten, designated by the Company on a consistent basis for
            use by
            lenders in originating mortgage loans to be purchased by the Company;
            and (iv)
            the Company employed, at the time such Mortgage Loans were acquired by
            the
            Company, pre-purchase or post-purchase quality assurance procedures (which
            may
            involve, among other things, review of a sample of mortgage loans purchased
            during a particular time period or through particular channels) designed
            to
            ensure that Persons from which it purchased mortgage loans properly applied
            the
            underwriting criteria designated by the Company.

          

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

          

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

          

          Securitization
            Transaction:
            Any
            transaction involving either (1) a sale or other transfer of some or
            all of the
            Mortgage Loans directly or indirectly to an issuing entity in connection
            with an
            issuance of publicly offered or privately placed, rated or unrated
            mortgage-backed securities or (2) an issuance of publicly offered or
            privately
            placed, rated or unrated securities, the payments on which are determined
            primarily by reference to one or more portfolios of residential mortgage
            loans
            consisting, in whole or in part, of some or all of the Mortgage
            Loans.

          

          Servicing
            Criteria:
            As of
            any date of determination, the “servicing criteria” set forth in Item 1122(d) of
            Regulation AB, or any amendments thereto, a summary of the requirements
            of which
            as of the date hereof is attached hereto as Exhibit
            M
            for
            convenience of reference only. In the event of a conflict or inconsistency
            between the terms of Exhibit
            M
            and the
            text of Item 1122(d) of Regulation AB, the text of Item 1122(d) of Regulation
            AB
            shall control (or those Servicing Criteria otherwise mutually agreed
            to by the
            Purchaser, the Company and any Person that will be responsible for signing
            any
            Sarbanes Certification with respect to a Securitization Transaction in
            response
            to evolving interpretations of Regulation AB and incorporated into a
            revised
Exhibit
            M).

          

          Static
            Pool Information:
            Static
            pool information as described in Item 1105(a)(1)-(3) and 1105(c) of Regulation
            AB.

          

          Subcontractor:
            Any
            vendor, subcontractor or other Person that is not responsible for the
            overall
            servicing (as “servicing” is commonly understood by participants in the
            mortgage-backed securities market) of Mortgage Loans but performs one
            or more
            discrete functions identified in Item 1122(d) of Regulation AB with respect
            to
            Mortgage Loans under the direction or authority of the Company or a Subservicer.
            

          

          Third-Party
            Originator:
            Each
            Person, other than a Qualified Correspondent, that originated Mortgage
            Loans
            acquired by the Company.

          

          3. Article
            I
            of the Agreement is hereby amended effective as of the date hereof by
            deleting
            in its entirety the definition of Subservicer in Section 1.01 and replacing
            it
            with the following:

          

          Subservicer:
            Any
            Person that services Mortgage Loans on behalf of the Company or any Subservicer
            and is responsible for the performance (whether directly or through Subservicers
            or Subcontractors) of a substantial portion of the material servicing
            functions
            required to be performed by the Company under this Agreement or any
            Reconstitution Agreement that are identified in Item 1122(d) of Regulation
            AB.
            Any subservicer shall meet the qualifications set forth in Section
            4.01.

          

          4. Article
            III of the Agreement is hereby amended effective as of the date hereof
            by
            revising Section 3.01(n) as follows (new text underlined):

          

          (n) Company
            has delivered to the Purchaser financial statements of its parent, for
            its last
            two complete fiscal years. All such financial information fairly presents
            the
            pertinent results of operations and financial position for the period
            identified
            and has been prepared in accordance with GAAP consistently applied throughout
            the periods involved, except as set forth in the notes thereto. There
            has been
            no change in the servicing
            policies and procedures,
            business, operations, financial condition, properties or assets of the
            Company
            since the date of the Company’s financial information that would have a material
            adverse effect on its ability to perform its obligations under this
            Agreement;

          

          5. Article
            III of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 3.01(p):

          

          (p) As
            of the
            date of each Pass-Through Transfer, and except as has been otherwise
            disclosed
            to the Purchaser: (1) the Company is not aware of and has not received
            notice
            that any default or servicing related performance trigger has occurred
            as to any
            other securitization due to any act or failure to act of the Company;
            (2) no
            material noncompliance with applicable servicing criteria as to any other
            securitization has been disclosed or reported by the Company; (3) the
            Company
            has not been terminated as servicer in a residential mortgage loan
            securitization, either due to a servicing default or to application of
            a
            servicing performance test or trigger; (4) no material changes to the
            Company’s
            servicing policies and procedures for similar loans has occurred in the
            preceding three years; (5) there are no aspects of the Company’s financial
            condition that could have a material adverse impact on the performance
            by the
            Company of its obligations hereunder; (6) there are no material legal
            proceedings pending, or known to be contemplated by governmental authorities,
            against the Company; and (7) there are no affiliations, relationships
            or
            transactions relating to the Company of a type that are described under
            Item
            1119 of Regulation AB.

          

          6. Article
            III of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 3.01(q):

          

          (q) If
            so
            requested by the Purchaser or any Depositor on any date, the Company
            shall,
            within five Business Days following such request, confirm in writing
            the
            accuracy of the representations and warranties set forth in Section 3.01(p)
            of
            this Section or, if any such representation and warranty is not accurate
            as of
            the date of such request, provide reasonably adequate disclosure of the
            pertinent facts, in writing, to the requesting party.

          

          7. Article
            III of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 3.01(r):

          

          (r) Notwithstanding
            anything to the contrary in the Agreement, the Company shall (or shall
            cause
            each Subservicer and Third-Party Originator to) (i) within 2 Business
            Days of
            the related event, notify the Purchaser and any Depositor in writing
            of (A) any
            material litigation or governmental proceedings pending against the Company,
            any
            Subservicer or any Third-Party Originator, (B) any affiliations or relationships
            that develop following the closing date of a Pass-Through Transfer between
            the
            Company, any Subservicer or any Third-Party Originator and any of the
            parties
            specified in clause (7) of paragraph (p) of this Section (and any other
            parties
            identified in writing by the requesting party) with respect to such Pass-Through
            Transfer, (C)
            any
            Event of Default under the terms of this Agreement or any Reconstitution
            Agreement, (D) any merger, consolidation or sale of substantially all
            of the
            assets of the Company, and (E) the Company’s entry into an agreement with a
            Subservicer to perform or assist in the performance of any of the Company’s
            obligations under this Agreement or any Reconstitution Agreement and
            (ii)
            provide to the Purchaser and any Depositor a description of such proceedings,
            affiliations or relationships.

          

          All
            notification pursuant to this Section 3.01(r), other than those pursuant
            to
            Section 3.01(r)(i)(A), should be sent to:

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            TX 75067-3884

          Attention:
            Conduit Seller Approval Dept.

          Facsimile:
            (214) 626-3751

          Email:
            sellerapproval@bear.com

          

          With
            a
            copy to:

          

          Bear,
            Stearns & Co. Inc.

          383
            Madison Avenue, 3rd Floor

          New,
            York, NY 10179

          Attention:
            Global Credit Administration

          Facsimile:
            (212) 272-6564

          

          Notifications
            pursuant to Section 3.01(r)(i)(A) should be sent to: 

          

          EMC
            Mortgage Corporation

          Two
            Mac
            Arthur Ridge

          909
            Hidden Ridge Drive, Suite 200

          Irving,
            TX 75038

          Attention:
            Associate General Counsel for Loan Administration

          Facsimile:
            (972) 831-2555

          

          With
            copies to:

          

          Bear,
            Stearns & Co. Inc.

          383
            Madison Avenue, 3rd Floor

          New,
            York, NY 10179

          Attention:
            Global Credit Administration

          Facsimile:
            (212) 272-6564

          

          EMC
            Mortgage Corporation

          2780
            Lake
            Vista Drive

          Lewisville,
            TX 75067-3884

          Attention:
            Conduit Seller Approval Dept.

          Facsimile:
            (214) 626-3751

          Email:
            sellerapproval@bear.com

          

          8. Article
            III of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 3.01(s):

          

          (s) As
            a
            condition to the succession to the Company or any Subservicer as servicer
            or
            subservicer under this Agreement or any Reconstitution Agreement by any
            Person
            (i) into which the Company or such Subservicer may be merged or consolidated,
            or
            (ii) which may be appointed as a successor to the Company or any Subservicer,
            the Company shall provide to the Purchaser and any Depositor, at least
            15
            calendar days prior to the effective date of such succession or appointment,
            (x)
            written notice to the Purchaser and any Depositor of such succession
            or
            appointment and (y) in writing and in form and substance reasonably satisfactory
            to the Purchaser and such Depositor, all information reasonably requested
            by the
            Purchaser or any Depositor in order to comply with its reporting obligation
            under Item 6.02 of Form 8-K with respect to any class of asset-backed
            securities.

          

          9. Article
            III of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 3.02(xx):

          

          With
            respect to each Mortgage Loan, information regarding the borrower credit
            files
            related to such Mortgage Loan has been furnished to credit reporting
            agencies in
            compliance with the provisions of the Fair Credit Reporting Act and the
            applicable implementing regulations.

          

          10. Article
            IV of the Agreement is hereby amended effective as of the date hereof
            by adding
            this paragraph after the first sentence of Section 4.01:

          

          In
            addition, the Company shall furnish information regarding the borrower
            credit
            files related to such Mortgage Loan to credit reporting agencies in compliance
            with the provisions of the Fair Credit Reporting Act and the applicable
            implementing regulations.

          

          11. Article
            IV of the Agreement is hereby amended effective as of the date hereof
            by
            revising the first paragraph of Section 4.03 by adding the following
            after the
            first sentence:

          

          In
            determining the delinquency status of any Mortgage Loan, the Company
            will use
            delinquency recognition policies as described to and approved by the
            Purchaser,
            and shall revise these policies as requested by the Purchaser from time
            to
            time.

          

          12. Article
            V
            of the Agreement is hereby amended effective as of the date hereof by
            deleting
            Section 5.02 in its entirety and replacing it with the following:

          

          Section
            5.02 Statements
            to the Purchaser.

          

          The
            Company shall furnish to the Purchaser an individual loan accounting
            report, as
            of
            the last
            Business Day of each month, in the Company's assigned loan number order
            to
            document Mortgage Loan payment activity on an individual Mortgage Loan
            basis.
            With respect to each month, the corresponding individual loan accounting
            report
            shall be received by the Purchaser no later than the fifth Business Day
            of the
            following month on a disk or tape or other computer-readable format in
            such
            format as may be mutually agreed upon by both Purchaser and Company,
            and no
            later than the fifth Business Day of the following month in hard copy,
            and shall
            contain the following:

          

          (i) with
            respect to each Mortgage Loan and each Monthly Payment, the amount of
            such
            remittance allocable to principal (including a separate breakdown of
            any
            Principal Prepayment, including the date of such prepayment, and any
            prepayment
            penalties or premiums, along with a detailed report of interest on principal
            prepayment amounts remitted in accordance with Section 4.04);

          

          (ii) with
            respect to each Mortgage Loan and each Monthly Payment, the amount of
            such
            remittance allocable to interest;

          

          (iii) with
            respect to each Mortgage Loan, the amount of servicing compensation received
            by
            the Company during the prior distribution period;

          

          (iv) the
            Stated Principal Balance of each Mortgage Loan and the aggregate Stated
            Principal Balance of all Mortgage Loans as of the first day of the distribution
            period and the last day of the distribution period;

          

          (v) with
            respect to each Mortgage Loan, the current Mortgage Interest Rate;

          

          (vi) with
            respect to each Mortgage Loan, the aggregate amount of any Insurance
            Proceeds,
            Condemnation Proceeds, Liquidation Proceeds and REO Disposition Proceeds
            received during the prior distribution period;

          

          (vii) with
            respect to each Mortgage Loan, the amount of any Prepayment Interest
            Shortfalls
            paid by the Company in accordance with Section 4.04(viii) during the
            prior
            distribution period; 

          

          (viii) the
            beginning and ending balances of the Custodial Account and Escrow
            Account;

          

          (ix) the
            number of Mortgage Loans as of the first day of the distribution period
            and the
            last day of the distribution period; 

          

          (x) with
            respect to each Mortgage Loan, the Stated Principal Balance of each Mortgage
            Loan (a) delinquent as grouped in the following intervals through final
            liquidation of such Mortgage Loan: 30 to 59 days, 60 to 89 days, 90 days
            or
            more; (b) as to which foreclosure has commenced; and (c) as to which
            REO
            Property has been acquired;

          

          (xi) with
            respect to each Mortgage Loan, the amount and severity of any realized
            loss
            following liquidation of such Mortgage Loan; 

          

          (xii) with
            respect to each Mortgage Loan, and in the aggregate for all Mortgage
            Loans, the
            amount of any Monthly Advances made by the Company during the prior distribution
            period; 

          

          (xiii) with
            respect to each Mortgage Loan, a description of any Servicing Advances
            made by
            the Company with respect to such Mortgage Loan including the amount,
            terms and
            general purpose of such Servicing Advances, and the aggregate amount
            of
            Servicing Advances for all Mortgage Loans during the prior distribution
            period;

          

          (xiv) with
            respect to each Mortgage Loan, a description of any Nonrecoverable Advances
            made
            by the Company with respect to such Mortgage Loan including the amount,
            terms
            and general purpose of such Nonrecoverable Advances, and the aggregate
            amount of
            Nonrecoverable Advances for all Mortgage Loans during the prior distribution
            period;

          

          (xv) with
            respect to each Mortgage Loan, a description of any Monthly Advances,
            Servicing
            Advances and Nonrecoverable Advances reimbursed to the Company with respect
            to
            such Mortgage Loan during the prior distribution period pursuant to Section
            4.05, and the source of funds for such reimbursement, and the aggregate
            amount
            of any Monthly Advances, Servicing Advances and Nonrecoverable Advances
            reimbursed to the Company for all Mortgage Loans during the prior distribution
            period pursuant to Section 4.05; 

          

          (xvi) with
            respect to any Mortgage Loan, a description of any material modifications,
            extensions or waivers to the terms, fees, penalties or payments of such
            Mortgage
            Loan during the prior distribution period or that have cumulatively become
            material over time;

          

          (xvii) a
            description of any material breach of a representation or warranty set
            forth in
            Section 3.01 or Section 3.02 herein or of any other breach of a covenant
            or
            condition contained herein and the status of any resolution of such
            breach;

          

          (xviii) with
            respect to each Mortgage Loan, the Stated Principal Balance of any substitute
            Mortgage Loan provided by the Company and the Stated Principal Balance
            of any
            Mortgage Loan that has been replaced by a substitute Mortgage Loan in
            accordance
            with Section 3.03 herein;

          

          (xix) with
            respect to each Mortgage Loan, the Stated Principal Balance of any Mortgage
            Loan
            that has been repurchased by the Company in accordance with Section 3.03
            herein.

          

          In
            addition, the Company shall provide to the Purchaser such other information
            known or available to the Company that is necessary in order to provide
            the
            distribution and pool performance information as required under Item
            1121 of
            Regulation AB, as amended from time to time, as determined by the Purchaser
            in
            its reasonable discretion. The Company shall also provide a monthly report,
            in
            the form of Exhibit
            E
            hereto,
            or such other form as is mutually acceptable to the Company, the Purchaser
            and
            any Master Servicer, Exhibit
            F
            with
            respect to defaulted mortgage loans and Exhibit
            P,
            with
            respect to realized losses and gains, with each such report. 

          

          The
            Company shall prepare and file any and all information statements or
            other
            filings required to be delivered to any governmental taxing authority
            or to
            Purchaser pursuant to any applicable law with respect to the Mortgage
            Loans and
            the transactions contemplated hereby. In addition, the Company shall
            provide
            Purchaser with such information concerning the Mortgage Loans as is necessary
            for Purchaser to prepare its federal income tax return as Purchaser may
            reasonably request from time to time.

          

          In
            addition, not more than sixty (60) days after the end of each calendar
            year, the
            Company shall furnish to each Person who was a Purchaser at any time
            during such
            calendar year an annual statement in accordance with the requirements
            of
            applicable federal income tax law as to the aggregate of remittances
            for the
            applicable portion of such year.

          

          13. Article
            VI of the Agreement is hereby amended effective as of the date hereof
            by
            deleting Section 6.04 in its entirety and replacing it with the
            following:

          

          Section
            6.04 Annual
            Statement as to Compliance; Annual Certification.

          

          (a) The
            Company will deliver to the Purchaser, not later than March 1 of each
            calendar
            year beginning in 2007, an Officers’ Certificate acceptable to the Purchaser (an
“Annual Statement of Compliance”) stating, as to each signatory thereof, that
            (i) a review of the activities of the Company during the preceding calendar
            year
            and of performance under this Agreement or other applicable servicing
            agreement
            has been made under such officers’ supervision and (ii) to the best of such
            officers’ knowledge, based on such review, the Company has fulfilled all of its
            obligations under this Agreement or other applicable servicing agreement
            in all
            material respects throughout such year, or, if there has been a failure
            to
            fulfill any such obligation in any material respect, specifying each
            such
            failure known to such officer and the nature and status of cure provisions
            thereof. Such Annual Statement of Compliance shall contain no restrictions
            or
            limitations on its use. Copies of such statement shall be provided by
            the
            Company to the Purchaser upon request and by the Purchaser to any Person
            identified as a prospective purchaser of the Mortgage Loans. In the event
            that
            the Company has delegated any servicing responsibilities with respect
            to the
            Mortgage Loans to a Subservicer, the Company shall deliver an officer’s
            certificate (an "Annual Certification") of the Subservicer as described
            above as
            to each Subservicer as and when required with respect to the
            Company.

          

          (b) With
            respect to any Mortgage Loans that are the subject of a Pass-Through
            Transfer,
            by March 1 of each calendar year beginning in 2007, an officer of the
            Company
            shall execute and deliver an Annual Certification to the Purchaser, any
            Master
            Servicer and any related Depositor for the benefit of each such entity
            and such
            entity’s affiliates and the officers, directors and agents of any such entity
            and such entity’s affiliates, in the form attached hereto as Exhibit
            L.
            In the
            event that the Company has delegated any servicing responsibilities with
            respect
            to the Mortgage Loans to a Subservicer, the Company shall deliver an
            Annual
            Certification of the Subservicer as described above as to each Subservicer
            as
            and when required with respect to the Company.

          

          (c) If
            the
            Company cannot deliver the related Annual Statement of Compliance or
            Annual
            Certification by March 1 of such year, the Purchaser shall permit a cure
            period
            for the Company to deliver such Annual Statement of Compliance or Annual
            Certification, but in no event later than March 10th of such year.

          

          Failure
            of the Company to timely comply with this Section 6.04 shall be deemed
            an Event
            of Default, automatically, without notice and without any further cure
            period,
            and Purchaser may, in addition to whatever rights the Purchaser may have
            under
            Sections 3.03 and 8.01 and at law or equity or to damages, including
            injunctive
            relief and specific performance, terminate all the rights and obligations
            of the
            Company under this Agreement and in and to the Mortgage Loans and the
            proceeds
            thereof without compensating the Company for the same, as provided in
            Section
            9.01. Such termination shall be considered with cause pursuant to Section
            10.01
            of this Agreement. This paragraph shall supercede any other provision
            in this
            Agreement or any other agreement to the contrary; provided that to the
            extent
            that any provision of this Agreement and/or any applicable Reconstitution
            Agreement expressly provides for the survival of certain rights or obligations
            following termination of the Company as servicer, such provision shall
            be given
            effect.

          

          14. Article
            VI of the Agreement is hereby amended effective as of the date hereof
            by
            deleting Section 6.05 in its entirety and replacing it with the
            following:

          

          Section
            6.05 [Reserved].

          

          15. Article
            VI of the Agreement is hereby amended effective as of the date hereof
            by
            deleting 6.07 in its entirety and replacing it with the following:

          

          Section
            6.07 Assessment
            of Compliance with Servicing Criteria.

          

          On
            and
            after January 1, 2006, the Company shall service and administer, and
            shall cause
            each subservicer to service or administer, the Mortgage Loans in accordance
            with
            all applicable requirements of the Servicing Criteria.

          

          With
            respect to any Mortgage Loans that are the subject of a Pass-Through
            Transfer,
            the Company shall deliver to the Purchaser or its designee on or before
            March 1
            of each calendar year beginning in 2007, a report (an “Assessment of
            Compliance”) reasonably satisfactory to the Purchaser regarding the Company’s
            assessment of compliance with the Servicing Criteria during the preceding
            calendar year as required by Rules 13a-18 and 15d-18 of the Exchange
            Act and
            Item 1122 of Regulation AB, or as otherwise required by the Master Servicer,
            which as of the date hereof, require a report by an authorized officer
            of the
            Company that contains the following:

          

          (a) A
            statement by such officer of its responsibility for assessing compliance
            with
            the Servicing Criteria applicable to the Company;

          

          (b) A
            statement by such officer that such officer used the Servicing Criteria
            to
            assess compliance with the Servicing Criteria applicable to the
            Company;

          

          (c) An
            assessment by such officer of the Company’s compliance with the applicable
            Servicing Criteria for the period consisting of the preceding calendar
            year,
            including disclosure of any material instance of noncompliance with respect
            thereto during such period, which assessment shall be based on the activities
            it
            performs with respect to asset-backed securities transactions taken as
            a whole
            involving the Company, that are backed by the same asset type as the
            Mortgage
            Loans;

          

          (d) A
            statement that a registered public accounting firm has issued an attestation
            report on the Company’s Assessment of Compliance for the period consisting of
            the preceding calendar year; and

          

          (e) A
            statement as to which of the Servicing Criteria, if any, are not applicable
            to
            the Company, which statement shall be based on the activities it performs
            with
            respect to asset-backed securities transactions taken as a whole involving
            the
            Company, that are backed by the same asset type as the Mortgage
            Loans.

          

          Such
            report at a minimum shall address each of the Servicing Criteria specified
            on a
            certification substantially in the form of Exhibit O hereto delivered
            to the
            Purchaser concurrently with the execution of this Agreement.

          

          With
            respect to any Mortgage Loans that are the subject of a Pass-Through
            Transfer,
            on or before March 1 of each calendar year beginning in 2007, the Company
            shall
            furnish to the Purchaser or its designee a report (an “Attestation Report”) by a
            registered public accounting firm that attests to, and reports on, the
            Assessment of Compliance made by the Company, as required by Rules 13a-18
            and
            15d-18 of the Exchange Act and Item 1122(b) of Regulation AB, or as otherwise
            required by the Master Servicer, which Attestation Report must be made
            in
            accordance with standards for attestation reports issued or adopted by
            the
            Public Company Accounting Oversight Board. 

          

          The
            Company shall cause each Subservicer, and each Subcontractor determined
            by the
            Company pursuant to Section 11.19 to be “participating in the servicing
            function” within the meaning of Item 1122 of Regulation AB, to deliver to the
            Purchaser and any Depositor an assessment of compliance and accountants’
attestation as and when provided in Sections 6.07.

          

          If
            the
            Company cannot deliver the related Assessment of Compliance or Attestation
            Report by March 1 of such year, the Purchaser shall permit a cure period
            for the
            Company to deliver such Assessment of Compliance or Attestation Report,
            but in
            no event later than March 10th of such year.

          

          Failure
            of the Company to timely comply with this Section 6.07 shall be deemed
            an Event
            of Default, automatically, without notice and without any further cure
            period,
            and Purchaser may, in addition to whatever rights the Purchaser may have
            under
            Sections 3.03 and 8.01 and at law or equity or to damages, including
            injunctive
            relief and specific performance, terminate all the rights and obligations
            of the
            Company under this Agreement and in and to the Mortgage Loans and the
            proceeds
            thereof without compensating the Company for the same, as provided in
            Section
            9.01. Such termination shall be considered with cause pursuant to Section
            10.01
            of this Agreement. This paragraph shall supercede any other provision
            in this
            Agreement or any other agreement to the contrary.

          

          16. Article
            VI of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 6.08:

          

          Section
            6.08 Intent
            of the Parties; Reasonableness.

          

          The
            Purchaser and the Company acknowledge and agree that a purpose of Sections
            3.01(p), 5.02, 6.04, 6.05, 6.07 and 11.18 of this Agreement is to facilitate
            compliance by the Purchaser and any Depositor with the provisions of
            Regulation
            AB and related rules and regulations of the Commission. None of the Purchaser,
            any Master Servicer or any Depositor shall exercise its right to request
            delivery of information or other performance under these provisions other
            than
            in good faith, or for purposes other than compliance with the Securities
            Act,
            the Exchange Act and the rules and regulations of the Commission thereunder.
            The
            Company and Purchaser acknowledge that interpretations of the requirements
            of
            Regulation AB may change over time, whether due to interpretive guidance
            provided by the Commission or its staff, consensus among participants
            in the
            asset-backed securities markets, advice of counsel, or otherwise, and
            the
            Company agrees to comply with requests made by the Purchaser or any Depositor
            in
            good faith for delivery of information under these provisions on the
            basis of
            evolving interpretations of Regulation AB. In connection with any Pass-Through
            Transfer, the Company shall cooperate fully with the Purchaser to deliver
            to the
            Purchaser (including any of its assignees or designees) and any Depositor,
            any
            and all statements, reports, certifications, records and any other information
            necessary in the good faith determination of the Purchaser or any Depositor
            to
            permit the Purchaser or such Depositor to comply with the provisions
            of
            Regulation AB, together with such disclosures relating to the Company,
            any
            Subservicer, any Third-Party Originator and the Mortgage Loans, or the
            servicing
            of the Mortgage Loans, reasonably believed by the Purchaser or any Depositor
            to
            be necessary in order to effect such compliance.

          

          17. Article
            XI of the Agreement is hereby amended effective as of the date hereof
            by
            restating Section 11.18 in its entirety as follows:

          

          Section
            11.18. Cooperation
            of Company with a Reconstitution.

          

          The
            Company and the Purchaser agree that with respect to some or all of the
            Mortgage
            Loans, on or after the related Closing Date, on one or more dates (each
            a
            "Reconstitution Date") at the Purchaser's sole option, the Purchaser
            may effect
            a sale (each, a "Reconstitution") of some or all of the Mortgage Loans
            then
            subject to this Agreement, without recourse, to:

          

          (a) one
            or
            more third party purchasers in one or more whole loan transfers (each,
            a "Whole
            Loan Transfer"); or

          

          (b) one
            or
            more trusts or other entities to be formed as part of one or more Pass-Through
            Transfers.

          

          The
            Company agrees to execute in connection with any agreements among the
            Purchaser,
            the Company, and any servicer in connection with a Whole Loan Transfer,
            an
            Assignment, Assumption and Recognition Agreement substantially in the
            form of
            Exhibit D hereto, or, at Purchaser’s request, a seller's warranties and
            servicing agreement or a participation and servicing agreement or similar
            agreement in form and substance reasonably acceptable to the parties,
            and in
            connection with a Pass-Through Transfer, a pooling and servicing agreement
            in
            form and substance reasonably acceptable to the parties, (collectively
            the
            agreements referred to herein are designated, the “Reconstitution Agreements”).
            It is understood that any such Reconstitution Agreements will not contain
            any
            greater obligations on the part of Company than are contained in this
            Agreement.
            Notwithstanding anything to the contrary in this Section 11.18, the Company
            agrees that it is required to perform the obligations described in Exhibit
            K
            hereto.

          

          With
            respect to each Whole Loan Transfer and each Pass-Through Transfer entered
            into
            by the Purchaser, the Company agrees (1) to cooperate fully with the
            Purchaser
            and any prospective purchaser with respect to all reasonable requests
            and due
            diligence procedures; (2) to execute, deliver and perform all Reconstitution
            Agreements required by the Purchaser; (3) to restate the representations
            and
            warranties set forth in this Agreement as of the settlement or closing
            date in
            connection with such Reconstitution (each, a "Reconstitution Date").
            

          

          In
            addition, the Company shall provide to such servicer or issuer, as the
            case may
            be, and any other participants in such Reconstitution: 

          

          (i) any
            and
            all information and appropriate verification of information which may
            be
            reasonably available to the Company, whether through letters of its auditors
            and
            counsel or otherwise, as the Purchaser or any such other participant
            shall
            request upon reasonable demand; 

          

          (ii) such
            additional representations, warranties, covenants, opinions of counsel,
            letters
            from auditors, and certificates of public officials or officers of the
            Company
            as are reasonably agreed upon by the Company and the Purchaser or any
            such other
            participant;

          

          (iii) within
            5
            Business Days after request by the Purchaser, the information with respect
            to
            the Company (as originator) and each Third-Party Originator of the Mortgage
            Loans as required under Item 1110(a) and (b) of Regulation AB, a summary
            of the
            requirements of which has of the date hereof is attached hereto as Exhibit
            N for
            convenience of reference only, as determined by Purchaser in its sole
            discretion. If requested by the Purchaser, this will include information
            about
            the applicable credit-granting or underwriting criteria;

          

          (iv) within
            5
            Business Days after request by the Purchaser, the Company shall provide
            (or, as
            applicable, cause each Third-Party Originator to provide) Static Pool
            Information with respect to the mortgage loans (of a similar type as
            the
            Mortgage Loans, as reasonably identified by the Purchaser as provided
            below)
            originated by (i) the Company, if the Company is an originator of Mortgage
            Loans
            (including as an acquirer of Mortgage Loans from a Qualified Correspondent),
            and/or (ii) each Third-Party Originator. Such Static Pool Information
            shall be
            prepared by the Company (or Third-Party Originator) on the basis of its
            reasonable, good faith interpretation of the requirements of Item 1105(a)(1)-(3)
            and (c) of Regulation AB. To the extent that there is reasonably available
            to
            the Company (or Third-Party Originator) Static Pool Information with
            respect to
            more than one mortgage loan type, the Purchaser or any Depositor shall
            be
            entitled to specify whether some or all of such information shall be
            provided
            pursuant to this paragraph. The content of such Static Pool Information
            may be
            in the form customarily provided by the Company, and need not be customized
            for
            the Purchaser or any Depositor. Such Static Pool Information for each
            vintage
            origination year or prior securitized pool, as applicable, shall be presented
            in
            increments no less frequently than quarterly over the life of the mortgage
            loans
            included in the vintage origination year or prior securitized pool. The
            most
            recent periodic increment must be as of a date no later than 135 days
            prior to
            the date of the prospectus or other offering document in which the Static
            Pool
            Information is to be included or incorporated by reference. The Static
            Pool
            Information shall be provided in an electronic format that provides a
            permanent
            record of the information provided, such as a portable document format
            (pdf)
            file, or other such electronic format reasonably required by the Purchaser
            or
            the Depositor, as applicable;

          

          (v) within
            5
            Business Days after request by the Purchaser, information with respect
            to the
            Company (as servicer) as required by Item 1108(b) and (c) of Regulation
            AB, a
            summary of the requirements of which as of the date hereof is attached
            hereto as
            Exhibit N for convenience of reference only, as determined by Purchaser
            in its
            sole discretion. In the event that the Company has delegated any servicing
            responsibilities with respect to the Mortgage Loans to a Subservicer,
            the
            Company shall provide the information required pursuant to this clause
            with
            respect to the Subservicer;

          

          (vi) within
            5
            Business Days after request by the Purchaser, 

          

          (a)
            information regarding any legal proceedings pending (or known to be
            contemplated) against the Company (as originator and as servicer) and
            each other
            originator of the Mortgage Loans and each Subservicer as required by
            Item 1117
            of Regulation AB, a summary of the requirements of which as of the date
            hereof
            is attached hereto as Exhibit N for convenience of reference only, as
            determined
            by Purchaser in its sole discretion,

          

          (b)
            information regarding affiliations with respect to the Company (as originator
            and as servicer) and each other originator of the Mortgage Loans and
            each
            Subservicer as required by Item 1119(a) of Regulation AB, a summary of
            the
            requirements of which as of the date hereof is attached hereto as Exhibit
            N for
            convenience of reference only, as determined by Purchaser in its reasonable
            discretion, and

          

          (c)
            information regarding relationships and transactions with respect to
            the Company
            (as originator and as servicer) and each other originator of the Mortgage
            Loans
            and each Subservicer as required by Item 1119(b) and (c) of Regulation
            AB, a
            summary of the requirements of which as of the date hereof is attached
            hereto as
            Exhibit N for convenience of reference only, as determined by Purchaser
            in its
            reasonable discretion;

          

          (vii) if
            so
            requested by the Purchaser, the Company shall provide (or, as applicable,
            cause
            each Third-Party Originator to provide), at the expense of the requesting
            party
            (to the extent of any additional incremental expense associated with
            delivery
            pursuant to this Agreement), such statements and agreed-upon procedures
            letters
            of certified public accountants reasonably acceptable to the Purchaser
            or
            Depositor, as applicable, pertaining to Static Pool Information relating
            to
            prior securitized pools for securitizations closed on or after January
            1, 2006
            or, in the case of Static Pool Information with respect to the Company’s or
            Third-Party Originator’s originations or purchases, to calendar months
            commencing January 1, 2006, or to any financial information included
            in any
            other disclosure provided under this Section 11.18, as the Purchaser
            or such
            Depositor shall reasonably request. Such statements and letters shall
            be
            addressed to and be for the benefit of such parties as the Purchaser
            or such
            Depositor shall designate, which may include, by way of example, any
            Sponsor,
            any Depositor and any broker dealer acting as underwriter, placement
            agent or
            initial purchaser with respect to a Pass-Through Transfer. Any such statement
            or
            letter may take the form of a standard, generally applicable document
            accompanied by a reliance letter authorizing reliance by the addressees
            designated by the Purchaser or such Depositor; 

          

          (viii)
            For the purpose of satisfying the reporting obligation under the Exchange
            Act
            with respect to any class of asset-backed securities, the Company shall
            (or
            shall cause each Subservicer and Third-Party Originator to) (i) provide
            prompt
            notice to the Purchaser, any Master Servicer and any Depositor in writing
            of (A)
            any material litigation or governmental proceedings involving the Company,
            any
            Subservicer or any Third-Party Originator, (B) any affiliations or relationships
            that develop following the closing date of a Securitization Transaction
            between
            the Company, any Subservicer or any Third-Party Originator and any of
            the
            parties specified in clause (D) of paragraph (a) of this Section (and
            any other
            parties identified in writing by the requesting party) with respect to
            such
            Securitization Transaction, (C) any Event of Default under the terms
            of this
            Agreement or any Reconstitution Agreement, (D) any merger, consolidation
            or sale
            of substantially all of the assets of the Company, and (E) the Company’s entry
            into an agreement with a Subservicer to perform or assist in the performance
            of
            any of the Company’s obligations under this Agreement or any Reconstitution
            Agreement and (ii) provide to the Purchaser and any Depositor a description
            of
            such proceedings, affiliations or relationships; 

          

          (ix)
            As a
            condition to the succession to the Company or any Subservicer as servicer
            or
            subservicer under this Agreement or any Reconstitution Agreement by any
            Person
            (i) into which the Company or such Subservicer may be merged or consolidated,
            or
            (ii) which may be appointed as a successor to the Company or any Subservicer,
            the Company shall provide to the Purchaser, any Master Servicer, and
            any
            Depositor, at least 15 calendar days prior to the effective date of such
            succession or appointment, (x) written notice to the Purchaser and any
            Depositor
            of such succession or appointment and (y) in writing and in form and
            substance
            reasonably satisfactory to the Purchaser and such Depositor, all information
            reasonably requested by the Purchaser or any Depositor in order to comply
            with
            its reporting obligation under Item 6.02 of Form 8-K with respect to
            any class
            of asset-backed securities; 

          

          (x)
            In
            addition to such information as the Company, as servicer, is obligated
            to
            provide pursuant to other provisions of this Agreement, not later than
            ten days
            prior to the deadline for the filing of any distribution report on Form
            10-D in
            respect of any Securitization Transaction that includes any of the Mortgage
            Loans serviced by the Company or any Subservicer, the Company or such
            Subservicer, as applicable, shall, to the extent the Company or such
            Subservicer
            has knowledge, provide to the party responsible for filing such report
            (including, if applicable, the Master Servicer) notice of the occurrence
            of any
            of the following events along with all information, data, and materials
            related
            thereto as may be required to be included in the related distribution
            report on
            Form 10-D (as specified in the provisions of Regulation AB referenced
            below):

          

          (A) any
            material modifications, extensions or waivers of pool asset terms, fees,
            penalties or payments during the distribution period or that have cumulatively
            become material over time (Item 1121(a)(11) of Regulation AB);

          

          (B) material
            breaches of pool asset representations or warranties or transaction covenants
            (Item 1121(a)(12) of Regulation AB); and

          

          (C) information
            regarding any pool asset changes (such as additions, substitutions or
            repurchases) and any material changes in origination, underwriting or
            other
            criteria for acquisition or selection of pool assets (Item 1121(a)(14)
            of
            Regulation AB); and

          

          (xi)
            Upon
            request, the Company shall provide to the Purchaser, any Master Servicer
            and any
            Depositor, evidence of the authorization of the person signing any certification
            or statement, copies or other evidence of Fidelity Bond Insurance and
            Errors and
            Omission Insurance policy, financial information and reports, and such
            other
            information related to the Company or any Subservicer or the Company
            or such
            Subservicer’s performance hereunder.

          

          In
            connection with clause (x)(C) above, the Purchaser shall inform the Company
            of
            any additions, substitutions or repurchases of Mortgage Loans included
            in a
            Securitization Transaction originated or serviced by the Company, promptly
            upon
            the occurrence of any such event.

          

          In
            the
            event of a conflict or inconsistency between the terms of Exhibit N and
            the text
            of the applicable Item of Regulation AB as cited above, the text of Regulation
            AB, its adopting release and other public statements of the SEC shall
            control.

          

          The
            Company shall indemnify the Purchaser, each affiliate of the Purchaser,
            and each
            of the following parties participating in a Pass-Through Transfer: each
            sponsor
            and issuing entity; each Person (including, but not limited to, any Master
            Servicer, if applicable) responsible for the preparation, execution or
            filing of
            any report required to be filed with the Commission with respect to such
            Pass-Through Transfer, or for execution of a certification pursuant to
            Rule
            13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
            Pass-Through Transfer; each broker dealer acting as underwriter, placement
            agent
            or initial purchaser, each Person who controls any of such parties or
            the
            Depositor (within the meaning of Section 15 of the Securities Act and
            Section 20
            of the Exchange Act); and the respective present and former directors,
            officers,
            employees, agents and affiliates of each of the foregoing and of the
            Depositor
            (each, an "Indemnified Party"), and shall hold each of them harmless
            from and
            against any losses, damages, penalties, fines, forfeitures, legal fees
            and
            expenses and related costs, judgments, and any other costs, fees and
            expenses
            that any of them may sustain arising out of or based upon:

          

          (i)(A)
            any untrue statement of a material fact contained or alleged to be contained
            in
            any information, report, certification, accountants’ letter or other material
            provided under this Section 11.18 by or on behalf of the Company, or
            provided
            under this Section 11.18 by or on behalf of any Subservicer, Subcontractor
            or
            Third-Party Originator (collectively, the “Company Information”), or (B) the
            omission or alleged omission to state in the Company Information a material
            fact
            required to be stated in the Company Information or necessary in order
            to make
            the statements therein, in the light of the circumstances under which
            they were
            made, not misleading; provided, by way of clarification, that clause
            (B) of this
            paragraph shall be construed solely by reference to the Company Information
            and
            not to any other information communicated in connection with a sale or
            purchase
            of securities, without regard to whether the Company Information or any
            portion
            thereof is presented together with or separately from such other
            information;

          

          (ii)
            any
            failure by the Company, any Subservicer, any Subcontractor or any Third-Party
            Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Section 11.18,
            including any failure by the Company to identify pursuant to Section
            11.19 any
            Subcontractor “participating in the servicing function” within the meaning of
            Item 1122 of Regulation AB;

          

          (iii)
            any
            breach by the Company of a representation or warranty set forth in Section
            3.01
            or in a writing furnished pursuant to Section 3.01(q) and made as of
            a date
            prior to the closing date of the related Pass-Through Transfer, to the
            extent
            that such breach is not cured by such closing date, or any breach by
            the Company
            of a representation or warranty in a writing furnished pursuant to Section
            3.01(q) to the extent made as of a date subsequent to such closing date;
            or

           

          (iv)
            the
            negligence bad faith or willful misconduct of the Company in connection
            with its
            performance under this Section
            11.18.

            

            If
            the
            indemnification provided for herein is unavailable or insufficient to
            hold
            harmless an Indemnified Party, then the Company agrees that it shall
            contribute
            to the amount paid or payable by such Indemnified Party as a result of
            any
            claims, losses, damages or liabilities incurred by such Indemnified Party
            in
            such proportion as is appropriate to reflect the relative fault of such
            Indemnified Party on the one hand and the Company on the other. 

            

            In
            the
            case of any failure of performance described above, the Company shall
            promptly
            reimburse the Purchaser, any Depositor, as applicable, and each Person
            responsible for the preparation, execution or filing of any report required
            to
            be filed with the Commission with respect to such Securitization Transaction,
            or
            for execution of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d)
            under the Exchange Act with respect to such Securitization Transaction,
            for all
            costs reasonably incurred by each such party in order to obtain the information,
            report, certification, accountants’ letter or other material not delivered as
            required by the Company, any Subservicer, any Subcontractor or any Third-Party
            Originator.

          

          This
            indemnification shall survive the termination of this Agreement or the
            termination of any party to this Agreement.

          

          All
            Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
            remain
            subject to, and serviced in accordance with the terms of, this Agreement
            and the
            related Term Sheet, and with respect thereto this Agreement and the related
            Term
            Sheet shall remain in full force and effect.

          

          18. Article
            XI of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 11.19:

          

          Section
            11.19. Use
            of
            Subservicers and Subcontractors.

          

          (a) The
            Company shall not hire or otherwise utilize the services of any Subservicer
            to
            fulfill any of the obligations of the Company as servicer under this
            Agreement
            or any Reconstitution Agreement unless the Company complies with the
            provisions
            of paragraph (b) of this Section. The Company shall not hire or otherwise
            utilize the services of any Subcontractor, and shall not permit any Subservicer
            to hire or otherwise utilize the services of any Subcontractor, to fulfill
            any
            of the obligations of the Company as servicer under this Agreement or
            any
            Reconstitution Agreement unless the Company complies with the provisions
            of
            paragraph (d) of this Section. 

          

          (b) The
            Company shall cause any Subservicer used by the Company (or by any Subservicer)
            for the benefit of the Purchaser and any Depositor to comply with the
            provisions
            of this Section and with Sections 3.01(p), 3.01(s), 6.04, 6.07 and 11.18
            of this
            Agreement to the same extent as if such Subservicer were the Company,
            and to
            provide the information required with respect to such Subservicer under
            Section
            3.01(r) of this Agreement. The Company shall be responsible for obtaining
            from
            each Subservicer and delivering to the Purchaser and any Depositor any
            Annual
            Statement of Compliance required to be delivered by such Subservicer
            under
            Section 6.04(a), any Assessment of Compliance and Attestation Report
            required to
            be delivered by such Subservicer under Section 6.07 and any Annual Certification
            required under Section 6.04(b) as and when required to be
            delivered.

          

          (c) The
            Company shall promptly upon request provide to the Purchaser and any
            Depositor
            (or any designee of the Depositor, such as an administrator) a written
            description (in form and substance satisfactory to the Purchaser and
            such
            Depositor) of the role and function of each Subcontractor utilized by
            the
            Company or any Subservicer, specifying (i) the identity of each such
            Subcontractor, (ii) which (if any) of such Subcontractors are “participating in
            the servicing function” within the meaning of Item 1122 of Regulation AB, and
            (iii) which elements of the Servicing Criteria will be addressed in assessments
            of compliance provided by each Subcontractor identified pursuant to clause
            (ii)
            of this paragraph.

          

          (d) As
            a
            condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
            Regulation AB, the Company shall cause any such Subcontractor used by
            the
            Company (or by any Subservicer) for the benefit of the Purchaser and
            any
            Depositor to comply with the provisions of Sections 6.07 and 11.18 of
            this
            Agreement to the same extent as if such Subcontractor were the Company.
            The
            Company shall be responsible for obtaining from each Subcontractor and
            delivering to the Purchaser and any Depositor any Assessment of Compliance
            and
            Attestation Report and the other certificates required to be delivered
            by such
            Subservicer and such Subcontractor under Section 6.07, in each case as
            and when
            required to be delivered.

          

          19. Article
            XI of the Agreement is hereby amended effective as of the date hereof
            by adding
            the following new Section 11.20:

          

          Section
            11.20. Third
            Party Beneficiary.

          

          For
            purposes of this Agreement, each Master Servicer shall be considered a
            third party beneficiary to this Agreement, entitled to all the rights
            and
            benefits hereof as if it were a direct party to this
            Agreement.

          

          20. The
            Agreement is hereby amended as of the date hereof by deleting Exhibit
            E in its
            entirety and replacing it with the following:

          

          

          EXHIBIT
            E

          

          REPORTING
            DATA FOR MONTHLY REPORT

          

          
            	
                    Standard
                      File Layout - Master
                      Servicing

                  

          

           

          
            	
                    Column
                      Name

                  	
                    Description

                  	
                    Decimal

                  	
                    Format
                      Comment

                  	
                    Max
                      Size

                  
	
                    SER_INVESTOR_NBR

                  	
                    A
                      value assigned by the Servicer to define a group of loans.

                  	 	
                    Text
                      up to 10 digits

                  	
                    20

                  
	
                    LOAN_NBR

                  	
                    A
                      unique identifier assigned to each loan by the investor.

                  	 	
                    Text
                      up to 10 digits

                  	
                    10

                  
	
                    SERVICER_LOAN_NBR

                  	
                    A
                      unique number assigned to a loan by the Servicer. This may
                      be different
                      than the LOAN_NBR.

                  	 	
                    Text
                      up to 10 digits

                  	
                    10

                  
	
                    BORROWER_NAME

                  	
                    The
                      borrower name as received in the file. It is not separated
                      by first and
                      last name.

                  	 	
                    Maximum
                      length of 30 (Last, First)

                  	
                    30

                  
	
                    SCHED_PAY_AMT

                  	
                    Scheduled
                      monthly principal and scheduled interest payment that a borrower
                      is
                      expected to pay, P&I constant.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    NOTE_INT_RATE

                  	
                    The
                      loan interest rate as reported by the Servicer.

                  	
                    4

                  	
                    Max
                      length of 6

                  	
                    6

                  
	
                    NET_INT_RATE

                  	
                    The
                      loan gross interest rate less the service fee rate as reported
                      by the
                      Servicer.

                  	
                    4

                  	
                    Max
                      length of 6

                  	
                    6

                  
	
                    SERV_FEE_RATE

                  	
                    The
                      servicer's fee rate for a loan as reported by the
                      Servicer.

                  	
                    4

                  	
                    Max
                      length of 6

                  	
                    6

                  
	
                    SERV_FEE_AMT

                  	
                    The
                      servicer's fee amount for a loan as reported by the
                      Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    NEW_PAY_AMT

                  	
                    The
                      new loan payment amount as reported by the Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    NEW_LOAN_RATE

                  	
                    The
                      new loan rate as reported by the Servicer.

                  	
                    4

                  	
                    Max
                      length of 6

                  	
                    6

                  
	
                    ARM_INDEX_RATE

                  	
                    The
                      index the Servicer is using to calculate a forecasted
                      rate.

                  	
                    4

                  	
                    Max
                      length of 6

                  	
                    6

                  
	
                    ACTL_BEG_PRIN_BAL

                  	
                    The
                      borrower's actual principal balance at the beginning of the
                      processing
                      cycle.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    ACTL_END_PRIN_BAL

                  	
                    The
                      borrower's actual principal balance at the end of the processing
                      cycle.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    BORR_NEXT_PAY_DUE_DATE

                  	
                    The
                      date at the end of processing cycle that the borrower's next
                      payment is
                      due to the Servicer, as reported by Servicer.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	
                    SERV_CURT_AMT_1

                  	
                    The
                      first curtailment amount to be applied.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SERV_CURT_DATE_1

                  	
                    The
                      curtailment date associated with the first curtailment
                      amount.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	
                    CURT_ADJ_
                      AMT_1

                  	
                    The
                      curtailment interest on the first curtailment amount, if
                      applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SERV_CURT_AMT_2

                  	
                    The
                      second curtailment amount to be applied.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SERV_CURT_DATE_2

                  	
                    The
                      curtailment date associated with the second curtailment
                      amount.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	
                    CURT_ADJ_
                      AMT_2

                  	
                    The
                      curtailment interest on the second curtailment amount, if
                      applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SERV_CURT_AMT_3

                  	
                    The
                      third curtailment amount to be applied.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SERV_CURT_DATE_3

                  	
                    The
                      curtailment date associated with the third curtailment
                      amount.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	
                    CURT_ADJ_AMT_3

                  	
                    The
                      curtailment interest on the third curtailment amount, if
                      applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    PIF_AMT

                  	
                    The
                      loan "paid in full" amount as reported by the Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    PIF_DATE

                  	
                    The
                      paid in full date as reported by the Servicer.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	 	 	 	
                    Action
                      Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                      65=Repurchase,70=REO

                  	
                    2

                  
	
                    ACTION_CODE

                  	
                    The
                      standard FNMA numeric code used to indicate the default/delinquent
                      status
                      of a particular loan.

                  
	
                    INT_ADJ_AMT

                  	
                    The
                      amount of the interest adjustment as reported by the
                      Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SOLDIER_SAILOR_ADJ_AMT

                  	
                    The
                      Soldier and Sailor Adjustment amount, if applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    NON_ADV_LOAN_AMT

                  	
                    The
                      Non Recoverable Loan Amount, if applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    LOAN_LOSS_AMT

                  	
                    The
                      amount the Servicer is passing as a loss, if applicable.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SCHED_BEG_PRIN_BAL

                  	
                    The
                      scheduled outstanding principal amount due at the beginning
                      of the cycle
                      date to be passed through to investors.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SCHED_END_PRIN_BAL

                  	
                    The
                      scheduled principal balance due to investors at the end of
                      a processing
                      cycle.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SCHED_PRIN_AMT

                  	
                    The
                      scheduled principal amount as reported by the Servicer for
                      the current
                      cycle -- only applicable for Scheduled/Scheduled Loans.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    SCHED_NET_INT

                  	
                    The
                      scheduled gross interest amount less the service fee amount
                      for the
                      current cycle as reported by the Servicer -- only applicable
                      for
                      Scheduled/Scheduled Loans.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    ACTL_PRIN_AMT

                  	
                    The
                      actual principal amount collected by the Servicer for the current
                      reporting cycle -- only applicable for Actual/Actual
                      Loans.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    ACTL_NET_INT

                  	
                    The
                      actual gross interest amount less the service fee amount for
                      the current
                      reporting cycle as reported by the Servicer -- only applicable
                      for
                      Actual/Actual Loans.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    PREPAY_PENALTY_
                      AMT

                  	
                    The
                      penalty amount received when a borrower prepays on his loan
                      as reported by
                      the Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    PREPAY_PENALTY_
                      WAIVED

                  	
                    The
                      prepayment penalty amount for the loan waived by the
                      servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  
	
                    MOD_DATE

                  	
                    The
                      Effective Payment Date of the Modification for the loan.

                  	 	
                    MM/DD/YYYY

                  	
                    10

                  
	
                    MOD_TYPE

                  	
                    The
                      Modification Type.

                  	 	
                    Varchar
                      - value can be alpha or numeric

                  	
                    30

                  
	
                    DELINQ_P&I_ADVANCE_AMT

                  	
                    The
                      current outstanding principal and interest advances made by
                      Servicer.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  	
                    11

                  

          

          

          21. The
            Agreement is hereby amended as of the date hereof by adding the following
            new
            Exhibit F:

          

          

          

          EXHIBIT
            F

          

          REPORTING
            DATA FOR DEFAULTED LOANS

          

          Standard
            File Layout - Delinquency Reporting

          

          
            	
                    Column/Header
                      Name

                  	
                    Description

                  	
                    Decimal

                  	
                    Format
                      Comment

                  
	
                    SERVICER_LOAN_NBR

                  	
                    A
                      unique number assigned to a loan by the Servicer. This may
                      be different
                      than the LOAN_NBR

                  	 	
                     

                  
	
                    LOAN_NBR

                  	
                    A
                      unique identifier assigned to each loan by the originator.

                  	 	
                     

                  
	
                    CLIENT_NBR

                  	
                    Servicer
                      Client Number

                  	 	 
	
                    SERV_INVESTOR_NBR

                  	
                    Contains
                      a unique number as assigned by an external servicer to identify
                      a group of
                      loans in their system.

                  	 	
                     

                  
	
                    BORROWER_FIRST_NAME

                  	
                    First
                      Name of the Borrower.

                  	 	 
	
                    BORROWER_LAST_NAME

                  	
                    Last
                      name of the borrower.

                  	 	 
	
                    PROP_ADDRESS

                  	
                    Street
                      Name and Number of Property

                  	 	
                     

                  
	
                    PROP_STATE

                  	
                    The
                      state where the property located.

                  	 	
                     

                  
	
                    PROP_ZIP

                  	
                    Zip
                      code where the property is located.

                  	 	
                     

                  
	
                    BORR_NEXT_PAY_DUE_DATE

                  	
                    The
                      date that the borrower's next payment is due to the servicer
                      at the end of
                      processing cycle, as reported by Servicer.

                  	 	
                    MM/DD/YYYY

                  
	
                    LOAN_TYPE

                  	
                    Loan
                      Type (i.e. FHA, VA, Conv)

                  	 	
                     

                  
	
                    BANKRUPTCY_FILED_DATE

                  	
                    The
                      date a particular bankruptcy claim was filed.

                  	 	
                    MM/DD/YYYY

                  
	
                    BANKRUPTCY_CHAPTER_CODE

                  	
                    The
                      chapter under which the bankruptcy was filed.

                  	 	
                     

                  
	
                    BANKRUPTCY_CASE_NBR

                  	
                    The
                      case number assigned by the court to the bankruptcy
                      filing.

                  	 	
                     

                  
	
                    POST_PETITION_DUE_DATE

                  	
                    The
                      payment due date once the bankruptcy has been approved by the
                      courts

                  	 	
                    MM/DD/YYYY

                  
	
                    BANKRUPTCY_DCHRG_DISM_DATE

                  	
                    The
                      Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                      Discharged
                      and/or a Motion For Relief Was Granted. 

                  	 	
                    MM/DD/YYYY

                  
	
                    LOSS_MIT_APPR_DATE

                  	
                    The
                      Date The Loss Mitigation Was Approved By The Servicer

                  	 	
                    MM/DD/YYYY

                  
	
                    LOSS_MIT_TYPE

                  	
                    The
                      Type Of Loss Mitigation Approved For A Loan Such As;

                  	 	 
	
                    LOSS_MIT_EST_COMP_DATE

                  	
                    The
                      Date The Loss Mitigation /Plan Is Scheduled To End/Close

                  	 	
                    MM/DD/YYYY

                  
	
                    LOSS_MIT_ACT_COMP_DATE

                  	
                    The
                      Date The Loss Mitigation Is Actually Completed

                  	 	
                    MM/DD/YYYY

                  
	
                    FRCLSR_APPROVED_DATE

                  	
                    The
                      date DA Admin sends a letter to the servicer with instructions
                      to begin
                      foreclosure proceedings.

                  	 	
                    MM/DD/YYYY

                  
	
                    ATTORNEY_REFERRAL_DATE

                  	
                    Date
                      File Was Referred To Attorney to Pursue Foreclosure

                  	 	
                    MM/DD/YYYY

                  
	
                    FIRST_LEGAL_DATE

                  	
                    Notice
                      of 1st legal filed by an Attorney in a Foreclosure Action

                  	 	
                    MM/DD/YYYY

                  
	
                    FRCLSR_SALE_EXPECTED_DATE

                  	
                    The
                      date by which a foreclosure sale is expected to occur.

                  	 	
                    MM/DD/YYYY

                  
	
                    FRCLSR_SALE_DATE

                  	
                    The
                      actual date of the foreclosure sale.

                  	 	
                    MM/DD/YYYY

                  
	
                    FRCLSR_SALE_AMT

                  	
                    The
                      amount a property sold for at the foreclosure sale.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    EVICTION_START_DATE

                  	
                    The
                      date the servicer initiates eviction of the borrower.

                  	 	
                    MM/DD/YYYY

                  
	
                    EVICTION_COMPLETED_DATE

                  	
                    The
                      date the court revokes legal possession of the property from
                      the
                      borrower.

                  	 	
                    MM/DD/YYYY

                  
	
                    LIST_PRICE

                  	
                    The
                      price at which an REO property is marketed.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    LIST_DATE

                  	
                    The
                      date an REO property is listed at a particular price.

                  	 	
                    MM/DD/YYYY

                  
	
                    OFFER_AMT

                  	
                    The
                      dollar value of an offer for an REO property.

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    OFFER_DATE_TIME

                  	
                    The
                      date an offer is received by DA Admin or by the Servicer.

                  	 	
                    MM/DD/YYYY

                  
	
                    REO_CLOSING_DATE

                  	
                    The
                      date the REO sale of the property is scheduled to close.

                  	 	
                    MM/DD/YYYY

                  
	
                    REO_ACTUAL_CLOSING_DATE

                  	
                    Actual
                      Date Of REO Sale

                  	 	
                    MM/DD/YYYY

                  
	
                    OCCUPANT_CODE

                  	
                    Classification
                      of how the property is occupied.

                  	 	
                     

                  
	
                    PROP_CONDITION_CODE

                  	
                    A
                      code that indicates the condition of the property.

                  	 	
                     

                  
	
                    PROP_INSPECTION_DATE

                  	
                    The
                      date a property inspection is performed.

                  	 	
                    MM/DD/YYYY

                  
	
                    APPRAISAL_DATE

                  	
                    The
                      date the appraisal was done.

                  	 	
                    MM/DD/YYYY

                  
	
                    CURR_PROP_VAL

                  	
                     The
                      current "as is" value of the property based on brokers price
                      opinion or
                      appraisal.

                  	
                    2

                  	
                     

                  
	
                    REPAIRED_PROP_VAL

                  	
                    The
                      amount the property would be worth if repairs are completed
                      pursuant to a
                      broker's price opinion or appraisal.

                  	
                    2

                  	
                     

                  
	
                    If
                      applicable:

                  	
                     

                  	 	
                     

                  
	
                    DELINQ_STATUS_CODE

                  	
                    FNMA
                      Code Describing Status of Loan

                  	 	 
	
                    DELINQ_REASON_CODE

                  	
                    The
                      circumstances which caused a borrower to stop paying on a loan.
                      Code
                      indicates the reason why the loan is in default for this
                      cycle.

                  	 	 
	
                    MI_CLAIM_FILED_DATE

                  	
                    Date
                      Mortgage Insurance Claim Was Filed With Mortgage Insurance
                      Company.

                  	 	
                    MM/DD/YYYY

                  
	
                    MI_CLAIM_AMT

                  	
                    Amount
                      of Mortgage Insurance Claim Filed

                  	 	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    MI_CLAIM_PAID_DATE

                  	
                    Date
                      Mortgage Insurance Company Disbursed Claim Payment

                  	 	
                    MM/DD/YYYY

                  
	
                    MI_CLAIM_AMT_PAID

                  	
                    Amount
                      Mortgage Insurance Company Paid On Claim

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    POOL_CLAIM_FILED_DATE

                  	
                    Date
                      Claim Was Filed With Pool Insurance Company

                  	 	
                    MM/DD/YYYY

                  
	
                    POOL_CLAIM_AMT

                  	
                    Amount
                      of Claim Filed With Pool Insurance Company

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    POOL_CLAIM_PAID_DATE

                  	
                    Date
                      Claim Was Settled and The Check Was Issued By The Pool
                      Insurer

                  	 	
                    MM/DD/YYYY

                  
	
                    POOL_CLAIM_AMT_PAID

                  	
                    Amount
                      Paid On Claim By Pool Insurance Company

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    FHA_PART_A_CLAIM_FILED_DATE

                  	
                     Date
                      FHA Part A Claim Was Filed With HUD

                  	 	
                    MM/DD/YYYY

                  
	
                    FHA_PART_A_CLAIM_AMT

                  	
                     Amount
                      of FHA Part A Claim Filed

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    FHA_PART_A_CLAIM_PAID_DATE

                  	
                     Date
                      HUD Disbursed Part A Claim Payment

                  	 	
                    MM/DD/YYYY

                  
	
                    FHA_PART_A_CLAIM_PAID_AMT

                  	
                     Amount
                      HUD Paid on Part A Claim

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    FHA_PART_B_CLAIM_FILED_DATE

                  	
                      Date
                      FHA Part B Claim Was Filed With HUD

                  	 	
                    MM/DD/YYYY

                  
	
                    FHA_PART_B_CLAIM_AMT

                  	
                      Amount
                      of FHA Part B Claim Filed

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    FHA_PART_B_CLAIM_PAID_DATE

                  	
                       Date
                      HUD Disbursed Part B Claim Payment

                  	 	
                    MM/DD/YYYY

                  
	
                    FHA_PART_B_CLAIM_PAID_AMT

                  	
                     Amount
                      HUD Paid on Part B Claim

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    VA_CLAIM_FILED_DATE

                  	
                     Date
                      VA Claim Was Filed With the Veterans Admin

                  	 	
                    MM/DD/YYYY

                  
	
                    VA_CLAIM_PAID_DATE

                  	
                     Date
                      Veterans Admin. Disbursed VA Claim Payment

                  	 	
                    MM/DD/YYYY

                  
	
                    VA_CLAIM_PAID_AMT

                  	
                     Amount
                      Veterans Admin. Paid on VA Claim

                  	
                    2

                  	
                    No
                      commas(,) or dollar signs ($)

                  

          

          

          Exhibit
            2: Standard
            File Codes - Delinquency Reporting

           

          The
            Loss
            Mit Type
            field
            should show the approved Loss Mitigation Code as follows: 

          
            	
                    ·  ASUM-

                  	
                    Approved
                      Assumption

                  
	
                    ·  BAP-

                  	
                    Borrower
                      Assistance Program

                  
	
                    ·  CO-

                  	
                    Charge
                      Off

                  
	
                    ·  DIL-

                  	
                    Deed-in-Lieu

                  
	
                    ·  FFA-

                  	
                    Formal
                      Forbearance Agreement

                  
	
                    ·  MOD-

                  	
                    Loan
                      Modification

                  
	
                    ·  PRE-

                  	
                    Pre-Sale

                  
	
                    ·  SS-

                  	
                    Short
                      Sale

                  
	
                    ·  MISC-

                  	
                    Anything
                      else approved by the PMI or Pool
                      Insurer

                  

          

           

          

           

          NOTE:
            Wells Fargo Bank will accept alternative Loss Mitigation Types to those
            above,
            provided that they are consistent with industry standards. If Loss Mitigation
            Types other than those above are used, the Servicer must supply Wells
            Fargo Bank
            with a description of each of the Loss Mitigation Types prior to sending
            the
            file.

           

          

           

          The
            Occupant
            Code
            field should show the current status of the property code as
            follows:

          
            	
                    ·  Mortgagor

                  
	
                    ·  Tenant

                  
	
                    ·  Unknown
                      

                  
	
                    ·  Vacant

                  

          

           

          

           

          The
            Property
            Condition
            field should show the last reported condition of the property as follows:
            

          
            	
                    ·  Damaged

                  
	
                    ·  Excellent

                  
	
                    ·  Fair

                  
	
                    ·  Gone

                  
	
                    ·  Good

                  
	
                    ·  Poor

                  
	
                    ·  Special
                      Hazard

                  
	
                    ·  Unknown

                  

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          

          Exhibit
            2: Standard
            File Codes - Delinquency Reporting, Continued

           

          The
            FNMA
            Delinquent Reason Code
            field should show the Reason for Delinquency as follows: 

           

          

          
            	
                    Delinquency
                      Code

                  	
                    Delinquency
                      Description

                  
	
                    001

                  	
                    FNMA-Death
                      of principal mortgagor

                  
	
                    002

                  	
                    FNMA-Illness
                      of principal mortgagor

                  
	
                    003

                  	
                    FNMA-Illness
                      of mortgagor’s family member

                  
	
                    004

                  	
                    FNMA-Death
                      of mortgagor’s family member

                  
	
                    005

                  	
                    FNMA-Marital
                      difficulties

                  
	
                    006

                  	
                    FNMA-Curtailment
                      of income

                  
	
                    007

                  	
                    FNMA-Excessive
                      Obligation

                  
	
                    008

                  	
                    FNMA-Abandonment
                      of property

                  
	
                    009

                  	
                    FNMA-Distant
                      employee transfer

                  
	
                    011

                  	
                    FNMA-Property
                      problem

                  
	
                    012

                  	
                    FNMA-Inability
                      to sell property

                  
	
                    013

                  	
                    FNMA-Inability
                      to rent property

                  
	
                    014

                  	
                    FNMA-Military
                      Service

                  
	
                    015

                  	
                    FNMA-Other

                  
	
                    016

                  	
                    FNMA-Unemployment

                  
	
                    017

                  	
                    FNMA-Business
                      failure

                  
	
                    019

                  	
                    FNMA-Casualty
                      loss

                  
	
                    022

                  	
                    FNMA-Energy
                      environment costs

                  
	
                    023

                  	
                    FNMA-Servicing
                      problems

                  
	
                    026

                  	
                    FNMA-Payment
                      adjustment

                  
	
                    027

                  	
                    FNMA-Payment
                      dispute

                  
	
                    029

                  	
                    FNMA-Transfer
                      of ownership pending

                  
	
                    030

                  	
                    FNMA-Fraud

                  
	
                    031

                  	
                    FNMA-Unable
                      to contact borrower

                  
	
                    INC

                  	
                    FNMA-Incarceration

                  

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          Exhibit
            2: Standard
            File Codes - Delinquency Reporting, Continued

           

          The
            FNMA
            Delinquent Status Code
            field should show the Status of Default as follows: 

           

          

          
            	
                    Status
                      Code

                  	
                    Status
                      Description

                  
	
                    09

                  	
                    Forbearance

                  
	
                    17

                  	
                    Pre-foreclosure
                      Sale Closing Plan Accepted

                  
	
                    24

                  	
                    Government
                      Seizure

                  
	
                    26

                  	
                    Refinance

                  
	
                    27

                  	
                    Assumption

                  
	
                    28

                  	
                    Modification

                  
	
                    29

                  	
                    Charge-Off

                  
	
                    30

                  	
                    Third
                      Party Sale

                  
	
                    31

                  	
                    Probate

                  
	
                    32

                  	
                    Military
                      Indulgence

                  
	
                    43

                  	
                    Foreclosure
                      Started

                  
	
                    44

                  	
                    Deed-in-Lieu
                      Started

                  
	
                    49

                  	
                    Assignment
                      Completed

                  
	
                    61

                  	
                    Second
                      Lien Considerations

                  
	
                    62

                  	
                    Veteran’s
                      Affairs-No Bid

                  
	
                    63

                  	
                    Veteran’s
                      Affairs-Refund

                  
	
                    64

                  	
                    Veteran’s
                      Affairs-Buydown

                  
	
                    65

                  	
                    Chapter
                      7 Bankruptcy

                  
	
                    66

                  	
                    Chapter
                      11 Bankruptcy

                  
	
                    67

                  	
                    Chapter
                      13 Bankruptcy

                  

          

           

          

          22. The
            Agreement is hereby amended effective as of the date hereof by adding
            the
            following new Exhibit K:

          

          EXHIBIT
            K

          

          COMPANY’S
            OBLIGATIONS IN CONNECTION 

          WITH
            A
            RECONSTITUTION

          

          • The
            Company shall (i) possess the ability to service to a securitization
            documents;
            (ii) service on a “Scheduled/Scheduled” reporting basis (advancing through the
            liquidation of an REO Property), (iii) make compensating interest payments
            on
            payoffs and curtailments and (iv) remit and report to a Master Servicer
            in
            format acceptable to such Master Servicer by the 10th calendar day of
            each
            month.

          

          • The
            Company shall provide an acceptable annual certification (officer’s certificate)
            to the Master Servicer (as required by the Sarbanes-Oxley Act of 2002)
            as well
            as any other annual certifications required under the securitization
            documents
            (i.e. the annual statement as to compliance/annual independent certified
            public
            accountants’ servicing report due by March 1 of each year).

          

          • The
            Company shall allow for the Purchaser, the Master Servicer or their designee
            to
            perform a review of audited financials and net worth of the
            Company.

          

          • The
            Company shall provide a Uniform Single Attestation Program certificate
            and
            Management Assertion as requested by the Master Servicer or the
            Purchaser.

          

          • The
            Company shall provide information on each Custodial Account as requested
            by the
            Master Servicer or the Purchaser, and each Custodial Accounts shall comply
            with
            the requirements for such accounts as set forth in the securitization
            documents.

          

          • The
            Company shall maintain its servicing system in accordance with the requirements
            of the Master Servicer.

          

          23. The
            Agreement is hereby amended effective as of the date hereof by adding
            the
            following new Exhibit L:

          

          EXHIBIT
            L

          

          FORM
            OF
            COMPANY CERTIFICATION

          

          Re: The
            [ ]
            agreement dated as of [ l,
            200[ ]
            (the “Agreement”), among [IDENTIFY PARTIES]

          

          I,
            ____________________________, the _______________________ of [NAME OF
            COMPANY]
            (the “Company”), certify to [the Purchaser], [the Depositor], and the [Master
            Servicer] [Securities Administrator] [Trustee], and their officers, with
            the
            knowledge and intent that they will rely upon this certification,
            that:

          

          I
            have
            reviewed the servicer compliance statement of the Company provided in
            accordance
            with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
            assessment of the Company’s compliance with the servicing criteria set forth in
            Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance
            with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as
            amended
            (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing
            Assessment”), the registered public accounting firm’s attestation report
            provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
            Act and
            Section 1122(b) of Regulation AB (the “Attestation Report”), and all servicing
            reports, officer’s certificates and other information relating to the servicing
            of the Mortgage Loans by the Company during 200[ ] that were delivered
            by the
            Company to the [Depositor] [Master Servicer] [Securities Administrator]
            [Trustee] pursuant to the Agreement (collectively, the “Company Servicing
            Information”);

          

          Based
            on
            my knowledge, the Company Servicing Information, taken as a whole, does
            not
            contain any untrue statement of a material fact or omit to state a material
            fact
            necessary to make the statements made, in the light of the circumstances
            under
            which such statements were made, not misleading with respect to the period
            of
            time covered by the Company Servicing Information;

          

          Based
            on
            my knowledge, all of the Company Servicing Information required to be
            provided
            by the Company under the Agreement has been provided to the [Depositor]
            [Master
            Servicer] [Securities Administrator] [Trustee];

          

          I
            am
            responsible for reviewing the activities performed by the Company as
            servicer
            under the Agreement, and based on my knowledge and the compliance review
            conducted in preparing the Compliance Statement and except as disclosed
            in the
            Compliance Statement, the Servicing Assessment or the Attestation Report,
            the
            Company has fulfilled its obligations under the Agreement in all material
            respects; and

          

          The
            Compliance Statement required to be delivered by the Company pursuant
            to this
            Agreement, and the Servicing Assessment and Attestation Report required
            to be
            provided by the Company and by any Subservicer and Subcontractor pursuant
            to the
            Agreement, have been provided to the [Depositor] [Master Servicer]. Any
            material
            instances of noncompliance described in such reports have been disclosed
            to the
            [Depositor] [Master Servicer]. Any material instance of noncompliance
            with the
            Servicing Criteria has been disclosed in such reports.

          

          24. The
            Agreement is hereby amended effective as of the date hereof by adding
            the
            following new Exhibit M:

          

          EXHIBIT
            M

          

          SUMMARY
            OF REGULATION AB

          SERVICING
            CRITERIA

          

          NOTE:
            This Exhibit M is provided for convenience of reference only. In the
            event of a
            conflict or inconsistency between the terms of this Exhibit M and the
            text of
            Regulation AB, the text of Regulation AB, its adopting release and other
            public
            statements of the SEC shall control. 

          

          Item
            1122(d)

           

          
            	(a)  	
                    General
                      servicing considerations.

                  

          

           

          (1)  Policies
            and procedures are instituted to monitor any performance or other triggers
            and
            events of default in accordance with the transaction agreements.

           

          (2)  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.

           

          (3)  Any
            requirements in the transaction agreements to maintain a back-up servicer
            for
            the mortgage loans are maintained.

           

          (4)  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.

           

          
            	(b)  	
                    Cash
                      collection and administration.

                  

          

           

          (1)  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.

           

          (2)  Disbursements
            made via wire transfer on behalf of an obligor or
            to an
            investor are made only by authorized personnel.

           

          (3)  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.

           

          (4)  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.

           

          (5)  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.

           

          (6)  Unissued
            checks are safeguarded so as to prevent unauthorized access.

           

          (7)  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.

           

          
            	(c)  	
                    Investor
                      remittances and reporting.

                  

          

           

          (1)  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.

           

          (2)  Amounts
            due to investors are allocated and remitted in accordance with timeframes,
            distribution priority and other terms set forth in the transaction
            agreements.

           

          (3)  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.

           

          (4)  Amounts
            remitted to investors per the investor reports agree with cancelled checks,
            or
            other form of payment, or custodial bank statements.

           

          
            	(d)  	
                    Mortgage
                      Loan administration.

                  

          

           

          (1)  Collateral
            or security on mortgage loans is maintained as required by the transaction
            agreements or related mortgage loan documents.

           

          (2)  Mortgage
            loan and related documents are safeguarded as required by the transaction
            agreements.

           

          (3)  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.

           

          (4)  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.

           

          (5)  The
            Servicer’s records regarding the mortgage loans agree with the Servicer’s
            records with respect to an obligor’s unpaid principal balance.

           

          (6)  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 mortgage
            loan documents.

           

          (7)  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.

           

          (8)  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).

           

          (9)  Adjustments
            to interest rates or rates of return for mortgage loans with variable
            rates are
            computed based on the related mortgage loan documents.

           

          (10)  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.

           

          (11)  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.

           

          (12)  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.

           

          (13)  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.

           

          (14)  Delinquencies,
            charge-offs and uncollectable accounts are recognized and recorded in
            accordance
            with the transaction agreements.

           

          (15)  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.

          

          25. The
            Agreement is hereby amended effective as of the date hereof by adding
            the
            following new Exhibit N:

           

          EXHIBIT
            N

          

          SUMMARY
            OF APPLICABLE REGULATION AB REQUIREMENTS

          

          NOTE:
            This Exhibit N is provided for convenience of reference only. In the
            event of a
            conflict or inconsistency between the terms of this Exhibit N and the
            text of
            Regulation AB, the text of Regulation AB, its adopting release and other
            public
            statements of the SEC shall control. 

           

          Item
            1105(a)(1)-(3) and (c)

          

          -Provide
            static pool information with respect to mortgage loans that were originated
            or
            purchased by the Company and which are of the same type as the Mortgage
            Loans.

           

          -Provide
            static pool information regarding delinquencies, cumulative losses and
            prepayments for prior securitized pools of the Company.

           

          -If
            the
            Company has less than 3 years experience securitizing assets of the same
            type as
            the Mortgage Loans, provide the static pool information by vintage origination
            years regarding loans originated or purchased by the Company, instead
            of by
            prior securitized pool. A vintage origination year represents mortgage
            loans
            originated during the same year.

           

          -Such
            static pool information shall be for the prior five years, or for so
            long as the
            Company has been originating or purchasing (in the case of data by vintage
            origination year) or securitizing (in the case of data by prior securitized
            pools) such mortgage loans if for less than five years.

           

          -The
            static pool information for each vintage origination year or prior securitized
            pool, as applicable, shall be presented in monthly increments over the
            life of
            the mortgage loans included in the vintage origination year or prior
            securitized
            pool.

           

          -Provide
            summary information for the original characteristics of the prior securitized
            pools or vintage origination years, as applicable and material, including:
            number of pool assets, original pool balance, weighted average initial
            loan
            balance, weighted average mortgage rate, weighted average and minimum
            and
            maximum FICO, product type, loan purpose, weighted average and minimum
            and
            maximum LTV, distribution of loans by mortgage rate, and geographic
            concentrations of 5% or more.

           

          

          Item
            1108(b) and (c)

          

          Provide
            the following information with respect to each servicer that will service,
            including interim service, 20% or more of the mortgage loans in any loan
            group
            in the securitization issued in the Pass-Through Transfer: 

           

          -a
            description of the Company’s form of organization;

           

          -a
            description of how long the Company has been servicing residential mortgage
            loans; a general discussion of the Company’s experience in servicing assets of
            any type as well as a more detailed discussion of the Company’s experience in,
            and procedures for the servicing function it will perform under this
            Agreement
            and any Reconstitution Agreements; information regarding the size, composition
            and growth of the Company’s portfolio of mortgage loans of the type similar to
            the Mortgage Loans and information on factors related to the Company
            that may be
            material to any analysis of the servicing of the Mortgage Loans or the
            related
            asset-backed securities, as applicable, including whether any default
            or
            servicing related performance trigger has occurred as to any other
            securitization due to any act or failure to act of the Company, whether
            any
            material noncompliance with applicable servicing criteria as to any other
            securitization has been disclosed or reported by the Company, and the
            extent of
            outsourcing the Company uses;

           

          -a
            description of any material changes to the Company’s policies or procedures in
            the servicing function it will perform under this Agreement and any
            Reconstitution Agreements for mortgage loans of the type similar to the
            Mortgage
            Loans during the past three years;

           

          -information
            regarding the Company’s financial condition to the extent that there is a
            material risk that the effect on one or more aspects of servicing resulting
            from
            such financial condition could have a material impact on the performance
            of the
            securities issued in the Pass-Through Transfer, or on servicing of mortgage
            loans of the same asset type as the Mortgage Loans;

           

          -any
            special or unique factors involved in servicing loans of the same type
            as the
            Mortgage Loans, and the Company’s processes and procedures designed to address
            such factors;

           

          -statistical
            information regarding principal and interest advances made by the Company
            on the
            Mortgage Loans and the Company’s overall servicing portfolio for the past three
            years; and

           

          -the
            Company’s process for handling delinquencies, losses, bankruptcies and
            recoveries, such as through liquidation of REO Properties, foreclosure,
            sale of
            the Mortgage Loans or workouts.

           

          Item
            1110(a)

          

          -Identify
            any originator or group of affiliated originators that originated, or
            is
            expected to originate, 10% or more of the mortgage loans in any loan
            group in
            the securitization issued in the Pass-Through Transfer.

           

          

          Item
            1110(b)

          

          Provide
            the following information with respect to any originator or group of
            affiliated
            originators that originated, or is expected to originate, 20% or more
            of the
            mortgage loans in any loan group in the securitization issued in the
            Pass-Through Transfer:

           

          -the
            Company’s form of organization; and

           

          -a
            description of the Company’s origination program and how long the Company has
            been engaged in originating residential mortgage loans, which description
            must
            include a discussion of the Company’s experience in originating mortgage loans
            of the same type as the Mortgage Loans and information regarding the
            size and
            composition of the Company’s origination portfolio as well as information that
            may be material to an analysis of the performance of the Mortgage Loans,
            such as
            the Company’s credit-granting or underwriting criteria for mortgage loans of the
            same type as the Mortgage Loans.

           

          

          Item
            1117

          

          -describe
            any legal proceedings pending against the Company or against any of its
            property, including any proceedings known to be contemplated by governmental
            authorities, that may be material to the holders of the securities issued
            in the
            Pass-Through Transfer.

           

          

          Item
            1119(a)

          

          -describe
            any affiliations of the Company, each other originator of the Mortgage
            Loans and
            each Subservicer with the sponsor, depositor, issuing entity, trustee,
            any
            originator, any other servicer, any significant obligor, enhancement
            or support
            provider or any other material parties related to the Pass-Through
            Transfer.

           

          

          Item
            1119(b)

          

          -describe
            any business relationship, agreement, arrangement, transaction or understanding
            entered into outside of the ordinary course of business or on terms other
            than
            those obtained in an arm’s length transaction with an unrelated third party,
            apart from the Pass-Through Transfer, between the Company, each other
            originator
            of the Mortgage Loans and each Subservicer, or their respective affiliates,
            and
            the sponsor, depositor or issuing entity or their respective affiliates,
            that
            exists currently or has existed during the past two years, that may be
            material
            to the understanding of an investor in the securities issued in the Pass-Through
            Transfer.

           

          Item
            1119(c)

          

          -describe
            any business relationship, agreement, arrangement, transaction or understanding
            involving or relating to the Mortgage Loans or the Pass-Through Transfer,
            including the material terms and approximate dollar amount involved,
            between the
            Company, each other originator of the Mortgage Loans and each Subservicer,
            or
            their respective affiliates and the sponsor, depositor or issuing entity
            or
            their respective affiliates, that exists currently or has existed during
            the
            past two years.

           

          26. The
            Agreement is hereby amended effective as of the date hereof by adding
            the
            following new Exhibit O:

          

          EXHIBIT
            O

          

          SERVICING
            CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

          

          The
            assessment of compliance to be delivered by [the Company] [Name of Subservicer]
            shall address, at a minimum, the criteria identified as below as “Applicable
            Servicing Criteria”:

          

          
            	
                    Servicing
                      Criteria 

                  	
                    Applicable
                      Servicing Criteria

                  
	
                    Reference

                  	
                    Criteria

                  	
                     

                  
	
                     

                  	
                    General
                      Servicing Considerations

                  	
                     

                  
	
                    1122(d)(1)(i)

                  	
                    Policies
                      and procedures are instituted to monitor any performance or
                      other triggers
                      and events of default in accordance with the transaction
                      agreements.

                  	
                    X

                  
	
                    1122(d)(1)(ii)

                  	
                    If
                      any material servicing activities are outsourced to third parties,
                      policies and procedures are instituted to monitor the third
                      party’s
                      performance and compliance with such servicing activities.

                  	
                    X

                  
	
                    1122(d)(1)(iii)

                  	
                    Any
                      requirements in the transaction agreements to maintain a back-up
                      servicer
                      for the mortgage loans are maintained.

                  	 
	
                    1122(d)(1)(iv)

                  	
                    A
                      fidelity bond and errors and omissions policy is in effect
                      on the party
                      participating in the servicing function throughout the reporting
                      period in
                      the amount of coverage required by and otherwise in accordance
                      with the
                      terms of the transaction agreements.

                  	
                    X

                  
	
                     

                  	
                    Cash
                      Collection and Administration

                  	 
	
                    1122(d)(2)(i)

                  	
                    Payments
                      on mortgage loans are deposited into the appropriate custodial
                      bank
                      accounts and related bank clearing accounts no more than two
                      business days
                      following receipt, or such other number of days specified in
                      the
                      transaction agreements.

                  	
                    X

                  
	
                    1122(d)(2)(ii)

                  	
                    Disbursements
                      made via wire transfer on behalf of an obligor or to an investor
                      are made
                      only by authorized personnel.

                  	
                    X

                  
	
                    1122(d)(2)(iii)

                  	
                    Advances
                      of funds or guarantees regarding collections, cash flows or
                      distributions,
                      and any interest or other fees charged for such advances, are
                      made,
                      reviewed and approved as specified in the transaction
                      agreements.

                  	
                    X

                  
	
                    1122(d)(2)(iv)

                  	
                    The
                      related accounts for the transaction, such as cash reserve
                      accounts or
                      accounts established as a form of overcollateralization, are
                      separately
                      maintained (e.g., with respect to commingling of cash) as set
                      forth in the
                      transaction agreements.

                  	
                    X

                  
	
                    1122(d)(2)(v)

                  	
                    Each
                      custodial account is maintained at a federally insured depository
                      institution as set forth in the transaction agreements. For
                      purposes of
                      this criterion, “federally insured depository institution” with respect to
                      a foreign financial institution means a foreign financial institution
                      that
                      meets the requirements of Rule 13k-1(b)(1) of the Securities
                      Exchange
                      Act.

                  	
                    X

                  
	
                    1122(d)(2)(vi)

                  	
                    Unissued
                      checks are safeguarded so as to prevent unauthorized
                      access.

                  	
                    X

                  
	
                    1122(d)(2)(vii)

                  	
                    Reconciliations
                      are prepared on a monthly basis for all asset-backed securities
                      related
                      bank accounts, including custodial accounts and related bank
                      clearing
                      accounts. These reconciliations are (A) mathematically accurate;
                      (B)
                      prepared within 30 calendar days after the bank statement cutoff
                      date, or
                      such other number of days specified in the transaction agreements;
                      (C)
                      reviewed and approved by someone other than the person who
                      prepared the
                      reconciliation; and (D) contain explanations for reconciling
                      items. These
                      reconciling items are resolved within 90 calendar days of their
                      original
                      identification, or such other number of days specified in the
                      transaction
                      agreements.

                  	
                    x

                  
	
                     

                  	
                    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

                  
	
                    1122(d)(4)(ii)

                  	
                    Mortgage
                      loan and related documents are safeguarded as required by the
                      transaction
                      agreements

                  	
                    x

                  
	
                    1122(d)(4)(iii)

                  	
                    Any
                      additions, removals or substitutions to the asset pool are
                      made, reviewed
                      and approved in accordance with any conditions or requirements
                      in the
                      transaction agreements.

                  	
                    x

                  
	
                    1122(d)(4)(iv)

                  	
                    Payments
                      on mortgage loans, including any payoffs, made in accordance
                      with the
                      related mortgage loan documents are posted to the Servicer’s obligor
                      records maintained no more than two business days after receipt,
                      or such
                      other number of days specified in the transaction agreements,
                      and
                      allocated to principal, interest or other items (e.g., escrow)
                      in
                      accordance with the related mortgage loan documents.

                  	
                    x

                  
	
                    1122(d)(4)(v)

                  	
                    The
                      Servicer’s records regarding the mortgage loans agree with the Servicer’s
                      records with respect to an obligor’s unpaid principal
                      balance.

                  	
                    x

                  
	
                    1122(d)(4)(vi)

                  	
                    Changes
                      with respect to the terms or status of an obligor's mortgage
                      loans (e.g.,
                      loan modifications or re-agings) are made, reviewed and approved
                      by
                      authorized personnel in accordance with the transaction agreements
                      and
                      related pool asset documents.

                  	
                    x

                  
	
                    1122(d)(4)(vii)

                  	
                    Loss
                      mitigation or recovery actions (e.g., forbearance plans, modifications
                      and
                      deeds in lieu of foreclosure, foreclosures and repossessions,
                      as
                      applicable) are initiated, conducted and concluded in accordance
                      with the
                      timeframes or other requirements established by the transaction
                      agreements.

                  	
                    x

                  
	
                    1122(d)(4)(viii)

                  	
                    Records
                      documenting collection efforts are maintained during the period
                      a mortgage
                      loan is delinquent in accordance with the transaction agreements.
                      Such
                      records are maintained on at least a monthly basis, or such
                      other period
                      specified in the transaction agreements, and describe the entity’s
                      activities in monitoring delinquent mortgage loans including,
                      for example,
                      phone calls, letters and payment rescheduling plans in cases
                      where
                      delinquency is deemed temporary (e.g., illness or
                      unemployment).

                  	
                    x

                  
	
                    1122(d)(4)(ix)

                  	
                    Adjustments
                      to interest rates or rates of return for mortgage loans with
                      variable
                      rates are computed based on the related mortgage loan
                      documents.

                  	
                    x

                  
	
                    1122(d)(4)(x)

                  	
                    Regarding
                      any funds held in trust for an obligor (such as escrow accounts):
                      (A) such
                      funds are analyzed, in accordance with the obligor’s mortgage loan
                      documents, on at least an annual basis, or such other period
                      specified in
                      the transaction agreements; (B) interest on such funds is paid,
                      or
                      credited, to obligors in accordance with applicable mortgage
                      loan
                      documents and state laws; and (C) such funds are returned to
                      the obligor
                      within 30 calendar days of full repayment of the related mortgage
                      loans,
                      or such other number of days specified in the transaction
                      agreements.

                  	
                    x

                  
	
                    1122(d)(4)(xi)

                  	
                    Payments
                      made on behalf of an obligor (such as tax or insurance payments)
                      are made
                      on or before the related penalty or expiration dates, as indicated
                      on the
                      appropriate bills or notices for such payments, provided that
                      such support
                      has been received by the servicer at least 30 calendar days
                      prior to these
                      dates, or such other number of days specified in the transaction
                      agreements.

                  	
                    x

                  
	
                    1122(d)(4)(xii)

                  	
                    Any
                      late payment penalties in connection with any payment to be
                      made on behalf
                      of an obligor are paid from the servicer’s funds and not charged to the
                      obligor, unless the late payment was due to the obligor’s error or
                      omission.

                  	
                    x

                  
	
                    1122(d)(4)(xiii)

                  	
                    Disbursements
                      made on behalf of an obligor are posted within two business
                      days to the
                      obligor’s records maintained by the servicer, or such other number
                      of days
                      specified in the transaction agreements.

                  	
                    x

                  
	
                    1122(d)(4)(xiv)

                  	
                    Delinquencies,
                      charge-offs and uncollectible accounts are recognized and recorded
                      in
                      accordance with the transaction agreements.

                  	
                    x

                  
	
                    1122(d)(4)(xv)

                  	
                    Any
                      external enhancement or other support, identified in Item 1114(a)(1)
                      through (3) or Item 1115 of Regulation AB, is maintained as
                      set forth in
                      the transaction agreements.

                  	 
	
                     

                  	
                     

                  	
                     

                  

          

          

          
            	
                    [NAME
                      OF COMPANY] [NAME OF SUBSERVICER]

                     

                  
	
                    Date:

                  	 
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

          

          27. The
            Agreement is hereby amended as of the date hereof by adding the following
            new
            Exhibit P:

          

          EXHIBIT
            P

          

          REPORTING
            DATA FOR REALIZED LOSSES AND GAINS

          

          Calculation
            of Realized Loss/Gain Form 332- Instruction Sheet

          

          NOTE:
            Do not net or combine items. Show all expenses individually and all credits
            as
            separate line items. Claim packages are due on the remittance report
            date. Late
            submissions may result in claims not being passed until the following
            month. The
            Servicer is responsible to remit all funds pending loss approval and
            /or
            resolution of any disputed items. 

          1.  

           

          2.  The
            numbers on the 332 form correspond with the numbers listed below.

           

          Liquidation
            and Acquisition Expenses:

          
            	
                    1.

                  	
                    The
                      Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
                      an Amortization Schedule from date of default through liquidation
                      breaking
                      out the net interest and servicing fees advanced is
                      required.

                  
	 	 
	
                    2.

                  	
                    The
                      Total Interest Due less the aggregate amount of servicing fee
                      that would
                      have been earned if all delinquent payments had been made as
                      agreed. For
                      documentation, an Amortization Schedule from date of default
                      through
                      liquidation breaking out the net interest and servicing fees
                      advanced is
                      required.

                  
	 	 
	
                    3.
                      

                  	
                    Accrued
                      Servicing Fees based upon the Scheduled Principal Balance of
                      the Mortgage
                      Loan as calculated on a monthly basis. For documentation, an
                      Amortization
                      Schedule from date of default through liquidation breaking
                      out the net
                      interest and servicing fees advanced is required.

                  
	 	 
	
                    4-12.

                  	
                    Complete
                      as applicable. Required documentation:

                  
	 	 

          

          *
            For
            taxes and insurance advances - see page 2 of 332 form - breakdown required
            showing period

           

          of
            coverage, base tax, interest, penalty. Advances prior to default require
            evidence of servicer efforts to recover advances.

           

          *
            For
            escrow advances - complete payment history 

           

          (to
            calculate advances from last positive escrow balance forward)

           

          *
            Other
            expenses -  copies of corporate advance history showing all payments

           

          *
            REO
            repairs > $1500 require explanation

           

          *
            REO
            repairs >$3000 require evidence of at least 2 bids.

           

          *
            Short
            Sale or Charge Off require P&L supporting the decision and WFB’s approved
            Officer Certificate 

           

          *
            Unusual
            or extraordinary items may require further documentation. 

           

             
            13.  The
            total
            of lines 1 through 12.

           

             
            3.    Credits:
            

           

             
            14-21.   Complete
            as applicable. Required documentation:

           

          *
            Copy of
            the HUD 1 from the REO sale. If a 3rd
            Party
            Sale, bid instructions and Escrow Agent / Attorney

           

          Letter
            of
            Proceeds Breakdown.

           

          *
            Copy of
            EOB for any MI or gov't guarantee 

           

          *
            All
            other credits need to be clearly defined on the 332
            form      
     

           

          
            
              22.      
                The
                total
                of lines 14 through 21.

            

          

           

          Please
            Note: For
            HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b)
            for Part
            B/Supplemental proceeds.

           

          Total
            Realized Loss (or Amount of Any Gain)

           

          23. The
            total
            derived from subtracting line 22 from 13. If the amount represents a
            realized
            gain, show
            the
            amount in parenthesis ( ). 

           

          

          Calculation
            of Realized Loss/Gain Form 332

          

           

          
            	
                    Prepared
                      by: __________________

                  	
                    Date:
                      _______________

                  
	
                    Phone:
                      ______________________ 

                  	
                    mail
                      Address:_____________________

                  

          

           

           

          
            	
                    Servicer
                      Loan No.

                  	 	
                    Servicer
                      Name

                  	 	
                    Servicer
                      Address 

                     

                  

          

           

          WELLS
            FARGO BANK, N.A. Loan No._____________________________

           

          Borrower's
            Name: _________________________________________________________

          Property
            Address: _________________________________________________________

           

          Liquidation
            Type: REO Sale  
            3rd
            Party Sale  Short
            Sale     Charge
            Off 

           

          Was
            this loan granted a Bankruptcy deficiency or cramdown  Yes 
            No

          If
“Yes”,
            provide deficiency or cramdown amount
            _______________________________

           

          Liquidation
            and Acquisition Expenses:

           

          
            
              	
                       

                    	
                      (1)

                    	
                      Actual
                        Unpaid Principal Balance of Mortgage Loan

                    	
                      $
                        ______________

                    	
                      (1)

                    
	
                       

                    	
                      (2)

                    	
                      Interest
                        accrued at Net Rate

                    	
                      ________________

                    	
                      (2)

                    
	
                       

                    	
                      (3)

                    	
                      Accrued
                        Servicing Fees

                    	
                      ________________

                    	
                      (3)

                    
	
                       

                    	
                      (4)

                    	
                      Attorney's
                        Fees

                    	
                      ________________

                    	
                      (4)

                    
	
                       

                    	
                      (5)

                    	
                      Taxes

                    	
                      ________________

                    	
                      (5)

                    
	
                       

                    	
                      (6)

                    	
                      Property
                        Maintenance

                    	
                      ________________

                    	
                      (6)

                    
	
                       

                    	
                      (7)

                    	
                      MI/Hazard
                        Insurance Premiums

                    	
                      ________________

                    	
                      (7)

                    
	
                       

                    	
                      (8)

                    	
                      Utility
                        Expenses

                    	
                      ________________

                    	
                      (8)

                    
	
                       

                    	
                      (9)

                    	
                      Appraisal/BPO

                    	
                      ________________

                    	
                      (9)

                    
	
                       

                    	
                      (10)

                    	
                      Property
                        Inspections

                    	
                      ________________

                    	
                      (10)

                    
	
                       

                    	
                      (11)

                    	
                      FC
                        Costs/Other Legal Expenses

                    	
                      ________________

                    	
                      (11)

                    
	
                       

                    	
                      (12)

                    	
                      Other
                        (itemize)

                    	
                      $________________

                    	
                      (12)

                    
	
                       

                    	
                      Cash
                        for Keys__________________________

                    	
                       

                    	
                      ________________

                    	
                      
                        (12)

                      

                    
	
                       

                    	
                      HOA/Condo
                        Fees_______________________

                    	
                       

                    	
                      ________________

                    	
                      
                        (12)

                      

                    
	
                       

                    	
                      ______________________________________

                    	
                       

                    	
                      ________________

                    	
                      
                        (12)

                      

                    
	
                       

                    	
                      Total
                        Expenses

                    	
                       

                    	
                      $
                        _______________

                    	
                      (13)

                    
	
                       

                    	
                      Credits:

                    	
                       

                    	
                       

                    	
                       

                    
	
                       

                    	
                      (14)

                    	
                      Escrow
                        Balance

                    	
                      $
                        _______________

                    	
                      (14)

                    
	
                       

                    	
                      (15)

                    	
                      HIP
                        Refund

                    	
                      ________________

                    	
                      (15)

                    
	
                       

                    	
                      (16)

                    	
                      Rental
                        Receipts

                    	
                      ________________

                    	
                      (16)

                    
	
                       

                    	
                      (17)

                    	
                      Hazard
                        Loss Proceeds

                    	
                      ________________

                    	
                      (17)

                    
	
                       

                    	
                      (18)

                    	
                      Primary
                        Mortgage Insurance Proceeds

                    	
                      ________________

                    	
                      (18)

                    
	 	 	 HUD
                      Part A	 ________________	 (18a)
	 	 	 HUD
                      Part B	
                       ________________

                    	 (18b)
	
                       

                    	
                      (19)

                    	
                      Pool
                        Insurance Proceeds

                    	
                      ________________

                    	
                      (19)

                    
	
                       

                    	
                      (20)

                    	
                      Proceeds
                        from Sale of Acquired Property

                    	
                      ________________

                    	
                      (20)

                    
	
                       

                    	
                      (21)

                    	
                      Other
                        (itemize)

                    	
                      ________________

                    	
                      (21)

                    
	
                       

                    	
                      _________________________________________

                    	
                       

                    	
                      _________________

                    	
                       

                    
	
                       

                    	
                      _________________________________________

                    	
                       

                    	
                      _________________

                    	
                       

                    
	
                       

                    	
                      Total
                        Credits

                    	
                      $________________

                    	
                      
                        (22)

                      

                    
	
                      Total
                        Realized Loss (or Amount of Gain)

                    	
                      $________________

                    	
                      
                        (23)

                      

                    
	
                    	
                    	
                    	
                    	
                    	
                    	
                    	
                    	
                    	
                    

               

               

               

               

            

          

           

           

          

          Escrow
            Disbursement Detail

          

          

          
            	
                    Type

                    (Tax
                      /Ins.)

                  	
                    Date
                      Paid

                  	
                    Period
                      of Coverage

                  	
                    Total
                      Paid

                  	
                    Base
                      Amount

                  	
                    Penalties

                  	
                    Interest

                  
	
                     

                     

                  	 	 	 	 	 	 
	
                     

                     

                  	 	 	 	 	 	 
	
                     

                     

                  	 	 	 	 	 	 
	
                     

                     

                  	 	 	 	 	 	 
	
                     

                     

                  	 	 	 	 	 	 
	
                     

                     

                  	 	 	 	 	 	 
	
                     

                     

                  	 	 	 	 	 	 
	
                     

                     

                  	 	 	 	 	 	 

          

          

          28. Except
            as
            amended above, the Agreement shall continue to be in full force and effect
            in
            accordance with its terms.

          

          29. This
            Amendment may be executed by one or more of the parties hereto on any
            number of
            separate counterparts and of said counterparts taken together shall be
            deemed to
            constitute one and the same instrument.

          

          [SIGNATURE
            PAGES FOLLOW]

          

          IN
            WITNESS WHEREOF, the following parties have caused their names to be
            signed
            hereto by their respective officers thereunto duly authorized as of the
            day and
            year first above written.

          

           

          
            	
                    EMC
                      MORTGAGE CORPORATION,

                    as
                      Purchaser

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 
	 
	 
	
                    HOMEBANC
                      MORTGAGE CORPORATION,

                    as
                      Company

                  
	 	 
	
                    By:

                  	 
	
                    Name:

                  	 
	
                    Title:

                  	 

          

          

          

          

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        SCHEDULE
          I

        

        MORTGAGE
          LOAN SCHEDULE

        

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        T-2

      
         

        ASSIGNMENT,
          ASSUMPTION AND RECOGNITION AGREEMENT

         

        This
          is
          an Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) made
          as of August 31, 2006, among EMC Mortgage Corporation (the “Assignor”),
          Citibank, N.A., not individually but solely as trustee for the holders
          of the
          SACO I Trust 2006-9, Mortgage Pass-Through Certificates, Series 2006-9
          (the
“Assignee”) and HomeBanc Mortgage Corporation (the “Company”).

         

        In
          consideration of the mutual promises contained herein the parties hereto
          agree
          that the residential mortgage loans (the “Assigned Loans”) listed on Attachment
          1 annexed hereto (the "Assigned Loan Schedule") purchased by the Assignor
          from
          the Company and now serviced by Company for Assignor and its successors
          and
          assigns pursuant to (a) the Purchase, Warranties and Servicing Agreement,
          dated
          as of January 1, 2004, as amended by the Amended and Restated Amendment
          No. 1 to
          the Purchase, Warranties and Servicing Agreement, dated as of January 27,
          2006,
          between Assignor and Company (as amended, the “PWS Agreement”) and (b) the Term
          Sheet dated June 30, 2006 between Assignor and Company (the “Term Sheet” and
          together with the PWS Agreement, the “Agreements”) shall be subject to the terms
          of this AAR Agreement. Capitalized terms used herein but not defined shall
          have
          the meanings ascribed to them in the PWS Agreement.

         

        
          Assignment
            and Assumption

           

                 
            Except as expressly provided for herein, the Assignor hereby grants,
            transfers
            and assigns to the Assignee all of its right, title and interest as in,
            to and
            under (a) the Assigned Loans and (b) the Agreements with respect to the
            Assigned
            Loans; provided, however, that the Assignor is not assigning to the Assignee
            any
            of its right, title or interest, in, to and under the PWS Agreement with
            respect
            to any mortgage loan other than the Assigned Loans listed on Exhibit
            A.
            Notwithstanding anything to the contrary contained herein, the Assignor
            specifically reserves and does not assign to the Assignee any right,
            title and
            interest in, to or under the representations and warranties contained
            in Section
            3.01 and Section 3.02 of the PWS Agreement and the Assignor is retaining
            the
            right to enforce the representations and warranties set forth in those
            sections
            against the Company. Except as is otherwise expressly provided herein,
            the
            Assignor makes no representations, warranties or covenants to the Assignee
            and
            the Assignee acknowledges that the Assignor has no obligations to the
            Assignee
            under the terms of the PWS Agreement or otherwise relating to the transaction
            contemplated herein (including, but not limited to, any obligation to
            indemnify
            the Assignee).

        

         

        
          Representations,
            Warranties and Covenants

        

         

        1.  Assignor
          warrants and represents to Assignee and Company as of the date
          hereof:

         

        (a)  Attached
          hereto as Attachment 2 are true and accurate copies of the Agreements which
          agreements are in full force and effect as of the date hereof and the provisions
          of which have not been waived, amended or modified in any respect, nor
          has any
          notice of termination been given thereunder;

         

        (b)  Assignor
          is the lawful owner of the Assigned Loans with full right to transfer the
          Assigned Loans and any and all of its interests, rights and obligations
          under
          the PWS Agreement as they relate to the Assigned Loans, free and clear
          from any
          and all claims and encumbrances; and upon the transfer of the Assigned
          Loans to
          Assignee as contemplated herein and in the Mortgage Loan Purchase Agreement
          dated as of August 31, 2006 between the Assignor and Bear Stearns Asset
          Backed
          Securities I LLC ("BSABS I"), Assignee shall have good title to each and
          every
          Assigned Loan, as well as any and all of Assignee’s interests, rights and
          obligations under the PWS Agreement as they relate to the Assigned Loans,
          free
          and clear of any and all liens, claims and encumbrances;

         

        (c)  There
          are
          no offsets, counterclaims or other defenses available to Company with respect
          to
          the Assigned Loans or the PWS Agreement;

         

        (d)  Assignor
          has no knowledge of, and has not received notice of, any waivers under,
          or any
          modification of, any Assigned Loan;

         

        (e)  Assignor
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation, and has all requisite power and authority
          to
          acquire, own and sell the Assigned Loans;

         

        (f)  Assignor
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of Assignor’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignor’s charter or by-laws or any legal restriction, or any material
          agreement or instrument to which Assignor is now a party or by which it
          is
          bound, or result in the violation of any law, rule, regulation, order,
          judgment
          or decree to which Assignor or its property is subject. The execution,
          delivery
          and performance by Assignor of this AAR Agreement and the consummation
          by it of
          the transactions contemplated hereby, have been duly authorized by all
          necessary
          corporate action on the part of Assignor. This AAR Agreement has been duly
          executed and delivered by Assignor and, upon the due authorization, execution
          and delivery by Assignee and Company, will constitute the valid and legally
          binding obligation of Assignor enforceable against Assignor in accordance
          with
          its terms except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in effect
          relating
          to creditors’ rights generally, and by general principles of equity regardless
          of whether enforceability is considered in a proceeding in equity or at
          law;

         

        (g)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignor in connection with the execution, delivery or performance by Assignor
          of this AAR Agreement, or the consummation by it of the transactions
          contemplated hereby; 

         

        (h)  Neither
          Assignor nor anyone acting on its behalf has offered, transferred, pledged,
          sold
          or otherwise disposed of the Assigned Loans or any interest in the Assigned
          Loans, or solicited any offer to buy or accept a transfer, pledge or other
          disposition of the Assigned Loans, or any interest in the Assigned Loans
          or
          otherwise approached or negotiated with respect to the Assigned Loans,
          or any
          interest in the Assigned Loans with any Person in any manner, or made any
          general solicitation by means of general advertising or in any other manner,
          or
          taken any other action which would constitute a distribution of the Assigned
          Loans under the Securities Act of 1933, as amended (the “1933 Act”) or which
          would render the disposition of the Assigned Loans a violation of Section
          5 of
          the 1933 Act or require registration pursuant thereto;

         

        (i)  The
          Assignor has received from Company, and has delivered to the Assignee,
          all
          documents required to be delivered to Assignor by the Company prior to
          the date
          hereof pursuant to the PWS Agreement with respect to the Assigned Loans
          and has
          not received, and has not requested from the Company, any additional documents;
          and 

         

        (j)  There
          is
          no action, suit, proceeding, investigation or litigation pending or, to
          Assignor's knowledge, threatened, which either in any instance or in the
          aggregate, if determined adversely to Assignor, would adversely affect
          Assignor's execution or delivery of, or the enforceability of, this AAR
          Agreement, or the Assignor's ability to perform its obligations under this
          AAR
          Agreement.

         

        2.  Assignee
          warrants and represents to, and covenants with, Assignor and Company as
          of the
          date hereof:

         

        (a)  Assignee
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its organization and has all requisite power and authority
          to
          hold the Assigned Loans as trustee on behalf of the holders of the SACO
          I Trust
          2006-9, Mortgage Pass-Through Certificates, Series 2006-9;

         

        (b)  Assignee
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of Assignee’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignee’s charter or by-laws or any legal restriction, or any material
          agreement or instrument to which Assignee is now a party or by which it
          is
          bound, or result in the violation of any law, rule, regulation, order,
          judgment
          or decree to which Assignee or its property is subject. The execution,
          delivery
          and performance by Assignee of this AAR Agreement and the consummation
          by it of
          the transactions contemplated hereby, have been duly authorized by all
          necessary
          corporate action on part of Assignee. This AAR Agreement has been duly
          executed
          and delivered by Assignee and, upon the due authorization, execution and
          delivery by Assignor and Company, will constitute the valid and legally
          binding
          obligation of Assignee enforceable against Assignee in accordance with
          its terms
          except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in effect
          relating
          to creditors’ rights generally, and by general principles of equity regardless
          of whether enforceability is considered in a proceeding in equity or at
          law;

         

        (c)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignee in connection with the execution, delivery or performance by Assignee
          of this AAR Agreement, or the consummation by it of the transactions
          contemplated hereby; 

         

        (d)  There
          is
          no action, suit, proceeding, investigation or litigation pending or, to
          Assignee's knowledge, threatened, which either in any instance or in the
          aggregate, if determined adversely to Assignee, would adversely affect
          Assignee's execution or delivery of, or the enforceability of, this AAR
          Agreement, or the Assignee's ability to perform its obligations under this
          AAR
          Agreement; and

         

        (e)  Assignee
          assumes for the benefit of each of the Assignor and the Company all of
          the
          rights of the Purchaser under the PWS Agreement with respect to the Assigned
          Loans.

         

        3.  Company
          warrants and represents to, and covenant with, Assignor and Assignee as
          of the
          date hereof:

         

        (a)  Attached
          hereto as Attachment 2 are true and accurate copies of the Agreements,
          which
          agreements are in full force and effect as of the date hereof and the provisions
          of which have not been waived, amended or modified in any respect, nor
          has any
          notice of termination been given thereunder; 

         

        (b)  Company
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation, and has all requisite power and authority
          to
          service the Assigned Loans and otherwise to perform its obligations under
          the
          PWS Agreement;

         

        (c)  Company
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of Company’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Company’s charter or by-laws or any legal restriction, or any material agreement
          or instrument to which Company is now a party or by which it is bound,
          or result
          in the violation of any law, rule, regulation, order, judgment or decree
          to
          which Company or its property is subject. The execution, delivery and
          performance by Company of this AAR Agreement and the consummation by it
          of the
          transactions contemplated hereby, have been duly authorized by all necessary
          corporate action on the part of Company. This AAR Agreement has been duly
          executed and delivered by Company, and, upon the due authorization, execution
          and delivery by Assignor and Assignee, will constitute the valid and legally
          binding obligation of Company, enforceable against Company in accordance
          with
          its terms except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in effect
          relating
          to creditors’ rights generally, and by general principles of equity regardless
          of whether enforceability is considered in a proceeding in equity or at
          law;

         

        (d)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Company in connection with the execution, delivery or performance by Company
          of
          this AAR Agreement, or the consummation by it of the transactions contemplated
          hereby; 

         

        (e)  The
          Company shall establish a Custodial Account and an Escrow Account under
          the PWS
          Agreement in favor of the Assignee with respect to the Assigned Loans separate
          from the Custodial Account and Escrow Account previously established under
          the
          PWS Agreement in favor of Assignor;

         

        (f)  No
          event
          has occurred from the Closing Date to the date hereof which would render
          the
          representations and warranties as to the related Assigned Loans made by
          the
          Company in Sections 3.01 and 3.02 of the PWS Agreement to be untrue in
          any
          material respect; and

         

        (g)  Neither
          this AAR Agreement nor any certification, statement, report or other agreement,
          document or instrument furnished or to be furnished by the Company pursuant
          to
          this AAR Agreement contains or will contain any materially untrue statement
          of
          fact or omits or will omit to state a material fact necessary to make the
          statements contained therein not misleading.

         

        4.  The
          Company hereby restates the representations and warranties set forth in
          Section
          3.01(p) of the PWS Agreement as of the date hereof.

         

        Notwithstanding
          anything to the contrary in the PWS Agreement, the Company shall (or shall
          cause
          any Third-Party Originator to) (i) immediately notify Assignor and BSABS
          I in
          writing of (A) legal proceedings pending against the Company, or proceedings
          known to be contemplated by governmental authorities against the Company
          which
          in the judgment of the Company would be, in each case, material to purchasers
          of
          securities backed by the Assigned Loans, (B) any affiliations or relationships
          of the type described in Item 1119(b) of Regulation AB that develop following
          the date hereof between the Company and any of the above listed parties
          or other
          parties identified in writing by the Assignor or BSABS I with respect to
          the
          Securitization Transaction and (ii) provide to the Assignor and BSABS I
          a
          description of such proceedings, affiliations or relationships.

         

        Each
          notice/update regarding Regulation AB should be sent to the Assignor by
          e-mail
          to regABnotifications@bear.com. Additionally, all such notifications, other
          than
          those pursuant to (i)(A) above, should be sent to:

         

                        EMC
          Mortgage
          Corporation

        2780
          Lake
          Vista Drive

        Lewisville,
          Texas 75067

        Attention:
          Conduit Seller Approval Dept.

        Facsimile:
          (214) 626-3751

        Email:
          sellerapproval@bear.com

         

         

        with
          copies to:

         

        Bear,
          Stearns & Co. Inc.

        383
          Madison Avenue, 3rd Floor

        New
          York,
          NY 10179

        Attention:
          Global Credit Administration

        Facsimile:
          (212) 272-6564

         

        Notifications
          pursuant to (i)(A) above should be sent to:

         

        EMC
          Mortgage Corporation

        2780
          Lake
          Vista Drive

        Lewisville,
          TX 75067-3884

        Attention:
          Conduit Seller Approval Dept.

        Facsimile:
          (214) 626-3751

        Email:
          sellerapproval@bear.com

         

        with
          a
          copy to:

         

        Bear,
          Stearns & Co. Inc.

        383
          Madison Avenue, 3rd Floor

        New
          York,
          NY 10179

        Attention:
          Global Credit Administration

        Facsimile:
          (212) 272-6564

         

        5.  Assignor
          hereby agrees to indemnify and hold the Assignee (and its successors and
          assigns) harmless against any and all claims, losses, penalties, fines,
          forfeitures, legal fees and related costs, judgments, and any other costs,
          fees
          and expenses that Assignee (and its successors and assigns) may sustain
          in any
          way related to any breach of the representations or warranties of Assignor
          set
          forth in this AAR Agreement or the breach of any covenant or condition
          contained
          herein.

         

        
          Recognition
            of Assignee

        

         

        6.  From
          and
          after the date hereof, Company shall recognize Assignee as owner of the
          Assigned
          Loans, and acknowledges that the Assigned Loans are intended to be part
          of a
          REMIC or multiple REMICs, and will service the Assigned Loans in accordance
          with
          the PWS Agreement (as modified by this AAR Agreement) but in no event in
          a
          manner that would (i) cause any such intended REMIC to fail to qualify
          as a
          REMIC or (ii) result in the imposition of a tax upon any such intended
          REMIC
          (including but not limited to the tax on prohibited transactions as defined
          in
          Section 860F(a)(2) of the Code and the tax on contributions to a REMIC
          set forth
          in Section 860G(d) of the Code). It is the intention of Assignor, Company
          and
          Assignee that this AAR Agreement shall be binding upon and for the benefit
          of
          the respective successors and assigns of the parties hereto. Neither Company
          nor
          Assignor shall amend or agree to amend, modify, waive, or otherwise alter
          any of
          the terms or provisions of the PWS Agreement which amendment, modification,
          waiver or other alteration would in any way affect the Assigned Loans without
          the prior written consent of Assignee.

         

        7.  Notwithstanding
          any term hereof to the contrary, it is expressly understood and agreed
          by the
          parties hereto that (a) the execution and delivery of this AAR Agreement
          by the
          Assignee is solely in its capacity as trustee (the “Trustee”) for SACO I Trust
          2006-9, Mortgage Pass-Through Certificates, Series 2006-9 pursuant to the
          Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”), dated
          as of August
          1,
          2006, among BSABS I, the Assignor, the Assignee, LaSalle Bank National
          Association, as master servicer (the “Master Servicer”) and as securities
          administrator, and not individually, (b) each of the representations,
          undertakings and agreements herein made on behalf of SACO I Trust 2006-9
          (the
“Trust”) is made and intended not as personal representations, undertakings and
          agreements of the Trustee but is made and intended for the purpose of binding
          only the Trust and (c) under no circumstances shall the Trustee be personally
          liable for the payment of any indebtedness or expenses of the Assignee
          or the
          Trust or be liable for the breach or failure of any obligation, representation,
          warranty or covenant made or undertaken by the Assignee, the Assignor or
          the
          Trust under this AAR Agreement or made or undertaken by the Assignee, the
          Assignor or the Trust under the Agreements or the Pooling and Servicing
          Agreement. Any recourse against the Assignee in respect of any obligations
          it
          may have under or pursuant to the terms of this AAR Agreement shall be
          limited
          solely to the assets it may hold as trustee for SACO I Trust 2006-9, Mortgage
          Pass-Through Certificates, Series 2006-9.

         

        
          Modification
            of PWS Agreement

        

         

        8.  The
          Company and Assignor hereby amend the PWS Agreement as follows:

         

        (a)  The
          following definitions are added to Article I of the PWS Agreement:

         

        Assignee:
          Citibank, N.A., as trustee for the holders of SACO I Trust 2006-9, Mortgage
          Pass-Through Certificates, Series 2006-9.

         

        Pooling
          and Servicing Agreement:
          That
          certain pooling and servicing agreement, dated as of August 1, 2006, among
          BSABS
          I, the Trustee, the Master Servicer, the Securities Administrator and EMC
          Mortgage Corporation.

         

        BSABS
          I:
          Bear
          Stearns Asset Backed Securities I LLC.

         

        Securities
          Administrator:
          LaSalle
          Bank National Association.

         

        Trustee:
          Citibank, N.A., or its successor in interest, or any successor trustee
          appointed
          as provided in the Pooling and Servicing Agreement.

         

        (b)  The
          definition of Business Day is deleted in its entirety and replaced with
          the
          following:

         

        Business
          Day:
          Any day
          other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the States
          of
          New York, Georgia, Iowa, Illinois, Minnesota or the Commonwealth of Pennsylvania
          or (iii) a day on which banks in the States of New York, Georgia, Iowa,
          Illinois, Minnesota or the Commonwealth of Pennsylvania are authorized
          or
          obligated by law or executive order to be closed.

         

        (c)  The
          Standard & Poor’s rating of “A2” in the definition of Eligible Account in
          Section 1.01 of the PWS Agreement is hereby replaced with “AA”.

         

        (d)  The
          following is added to the first sentence of the fourth paragraph of Section
          4.13
          of the PWS Agreement:

         

        “;
          provided, however, that any REO property shall be disposed of by the Company
          before the close of the third taxable year following the taxable year in
          which
          the Mortgage Loan became an REO property, unless the Company is otherwise
          directed by the Assignee.”

         

        (j)  Section
          11.04 of the PWS Agreement is deleted in its entirety and replaced with
          the
          following:

         

        Section
          11.04  Governing
          Law.

         

        This
          Agreement and the related Term Sheet shall be governed by and construed
          in
          accordance with the laws of the State of New York without giving effect
          to
          principles of conflicts of laws and except to the extent preempted by Federal
          law and the obligations, rights and remedies of the parties hereunder shall
          be
          determined in accordance with such laws.

         

        
          Miscellaneous

        

         

        9.  All
          demands, notices and communications related to the Assigned Loans, the
          PWS
          Agreement and this AAR Agreement shall be in writing and shall be deemed
          to have
          been duly given if personally delivered at or mailed by registered mail,
          postage
          prepaid, as follows:

         

        
          	(a)  	
                  In
                    the case of Company:

                

        

         

        HomeBanc
          Mortgage Corporation

        2002
          Summit Boulevard, Suite 100

        Atlanta,
          GA 30319

        Attention:
          Debra F. Watkins, EVP and Chief Capital Markets Officer

        Telecopier
          No.: (404) 705-2301

         

        With
          a
          copy to: 

         

        HomeBanc
          Mortgage Corporation

        2002
          Summit Boulevard, Suite 100

        Atlanta,
          GA 30319

        Attention:
          General Counsel

         

        
          	(b)  	
                  In
                    the case of Assignor:

                

        

         

        EMC
          Mortgage Corporation

        2780
          Lake
          Vista Drive

        Lewisville,
          Texas 75067

        Attention:
          President or General Counsel

        Telecopier
          No.: (469) 759-4714

        Email:
          sellerapproval@bear.com

         

        
          	(c)  	
                  In
                    the case of Assignee:

                

        

         

        Citibank,
          N.A.

        388
          Greenwich Street, 14th Floor

        New
          York,
          New York 10013

        Attention:
          Structured Finance Agency & Trust —SACO 2006-9

        Telecopier
          No.: (212) 816-5527

         

        
          	(d)  	
                  In
                    the case of Securities
                    Administrator:

                

        

         

        LaSalle
          Bank National Association

        135
          S.
          LaSalle St., Suite 1625

        Chicago,
          IL 60603

        Attention:
          Global Securities and Trust Services Group- SACO 2006-9

         

        10.  The
          Company hereby acknowledges that LaSalle Bank National Association has
          been
          appointed as the master servicer of the Assigned Loans pursuant to the
          Pooling
          and Servicing Agreement and therefor has the right to enforce all obligations
          of
          the Company, as they relate to the Assigned Loans, under the PWS Agreement.
          Such
          right will include, without limitation, the right to terminate the Company
          under
          the PWS Agreement upon the occurrence of an event of default thereunder,
          the
          right to receive all remittances required to be made by the Company under
          the
          PWS Agreement, the right to receive all monthly reports and other data
          required
          to be delivered by the Company under the PWS Agreement, the right to examine
          the
          books and records of the Company, indemnification rights, and the right
          to
          exercise certain rights of consent and approval relating to actions taken
          by the
          Company. The Company shall make all distributions under the PWS Agreement,
          as
          they relate to the Assigned Loans, to the Master Servicer by wire transfer
          of
          immediately available funds to:

         

        LaSalle
          Bank National Association

        ABA#
          071000505

        Account
          #
          [ ]

        Attn:
          Sandra Brooks

         

        and
          the
          Company shall deliver all reports required to be delivered under the PWS
          Agreement, as they relate to the Assigned Loans, to the Assignee at the
          address
          set forth in Section 8(c) herein and to the Master Servicer at:

         

        LaSalle
          Bank National Association

        135
          S.
          LaSalle St., Suite 1625

        Chicago,
          IL 60603

        Attention:
          Global Securities and Trust Services Group- SACO 2006-9

         

        11.  Each
          party will pay any commissions it has incurred and the fees of its attorneys
          in
          connection with the negotiations for, documenting of and closing of the
          transactions contemplated by this AAR Agreement.

         

        12.  This
          AAR
          Agreement shall be construed in accordance with the laws of the State of
          New
          York, without regard to conflicts of law principles (other than Section
          5-1401
          of the New York Obligations Law), and the obligations, rights and remedies
          of
          the parties hereunder shall be determined in accordance with such
          laws.

         

        13.  No
          term
          or provision of this AAR Agreement may be waived or modified unless such
          waiver
          or modification is in writing and signed by the party against whom such
          waiver
          or modification is sought to be enforced.

         

        14.  This
          AAR
          Agreement shall inure to the benefit of the successors and assigns of the
          parties hereto. Any entity into which Assignor, Assignee or Company may
          be
          merged or consolidated shall, without the requirement for any further writing,
          be deemed Assignor, Assignee or Company, respectively, hereunder.

         

        15.  This
          AAR
          Agreement shall survive the conveyance of the Assigned Loans, the assignment
          of
          the PWS Agreement to the extent of the Assigned Loans by Assignor to Assignee
          and the termination of the PWS Agreement.

         

        16.  This
          AAR
          Agreement may be executed simultaneously in any number of counterparts.
          Each
          counterpart shall be deemed to be an original and all such counterparts
          shall
          constitute one and the same instrument.

         

        17.  In
          the
          event that any provision of this AAR Agreement conflicts with any provision
          of
          the PWS Agreement with respect to the Assigned Loans, the terms of this
          AAR
          Agreement shall control. 

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have executed this AAR Agreement as
          of the
          day and year first above written.

         

        EMC
          MORTGAGE CORPORATION,

        Assignor

         

        By:__________________________________

        Name: 

        Title: 

        

        CITIBANK,
          N.A.

        not
          individually but solely as trustee for the holders of SACO I Trust 2006-9,
          Mortgage Pass-Through Certificates, Series 2006-9,

        Assignee

         

        By:___________________________________

        Name:

        Title:

         

        HOMEBANC
          MORTGAGE CORPORATION,

        Company

         

        By:___________________________________

        Name:

        Title:

         

        ACKNOWLEDGED:

        LASALLE
          BANK NATIONAL ASSOCIATION

         

        By:___________________________________

        Name:

        Title:

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

         

        

         

         

        ATTACHMENT
          1

         

        ASSIGNED
          LOAN SCHEDULE

         

        (Available
          upon request)

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

         

        ATTACHMENT
          2

         

        AGREEMENTS

         

        (Available
          Upon Request)Exhibit 4(a)

                          INVESTMENT ADVISORY AGREEMENT

      AGREEMENT, dated September 29, 2006, between BlackRock Short Term U.S.
Government Fund (the "Fund"), a Maryland corporation, and BlackRock Advisors,
LLC (the "Advisor"), a Delaware limited liability company.

      WHEREAS, the Advisor has agreed to furnish investment advisory services to
the Fund, an open-end management investment company registered under the
Investment Company Act of 1940, as amended (the "1940 Act"); and

      WHEREAS, this Agreement has been approved in accordance with the
provisions of the 1940 Act, and the Advisor is willing to furnish such services
upon the terms and conditions herein set forth;

      NOW, THEREFORE, in consideration of the mutual premises and covenants
herein contained and other good and valuable consideration, the receipt of which
is hereby acknowledged, it is agreed by and between the parties hereto as
follows:

      1. In General. The Advisor agrees, all as more fully set forth herein, to
act as investment advisor to the Fund with respect to the investment of the
Fund's assets and to supervise and arrange for the day to day operations of the
Fund and the purchase of securities for and the sale of securities held in the
investment portfolio of the Fund.

      2. Duties and Obligations of the Advisor with Respect to Investment of
Assets of the Fund. Subject to the succeeding provisions of this section and
subject to the direction and control of the Fund's Board of Directors, the
Advisor shall (i) act as investment advisor for and supervise and manage the
investment and reinvestment of the Fund's assets and in connection therewith
have complete discretion in purchasing and selling securities and other assets
for the Fund and in voting, exercising consents and exercising all other rights
appertaining to such securities and other assets on behalf of the Fund; (ii)
supervise continuously the investment program of the Fund and the composition of
its investment portfolio; (iii) arrange, subject to the provisions of paragraph
4 hereof, for the purchase and sale of securities and other assets held in the
investment portfolio of the Fund; and (iv) provide investment research to the
Fund.

      3. Duties and Obligations of Advisor with Respect to the Administration of
the Fund. The Advisor also agrees to furnish office facilities and equipment and
clerical, bookkeeping and administrative services (other than such services, if
any, provided by the Fund's Custodian, Transfer Agent and Dividend Disbursing
Agent and other service providers) for the Fund. To the extent requested by the
Fund, the Advisor agrees to provide the following administrative services:

            (a) Oversee the determination and publication of the Fund's net
asset value in accordance with the Fund's policy as adopted from time to time by
the Board of Directors;

            (b) Oversee the maintenance by the Fund's Custodian and Transfer
Agent and Dividend Disbursing Agent of certain books and records of the Fund as
required under Rule 31a1(b)(4) of the 1940 Act and maintain (or oversee
maintenance by such other persons as approved by the Board of Directors) such
other books and records required by law or for the proper operation of the Fund;

            (c) Oversee the preparation and filing of the Fund's federal, state
and local income tax returns and any other required tax returns;

            (d) Review the appropriateness of and arrange for payment of the
Fund's expenses;

<PAGE>

            (e) Prepare for review and approval by officers of the Fund
financial information for the Fund's semiannual and annual reports, proxy
statements and other communications with shareholders required or otherwise to
be sent to Fund shareholders, and arrange for the printing and dissemination of
such reports and communications to shareholders;

            (f) Prepare for review by an officer of the Fund the Fund's periodic
financial reports required to be filed with the Securities and Exchange
Commission ("SEC") on Form NSAR, Form NCSR, Form NPX, Form NQ, and such other
reports, forms and filings, as may be mutually agreed upon;

            (g) Prepare such reports relating to the business and affairs of the
Fund as may be mutually agreed upon and not otherwise appropriately prepared by
the Fund's custodian, counsel or auditors;

            (h) Make such reports and recommendations to the Board of Directors
concerning the performance of the independent accountants as the Board of
Directors may reasonably request or deems appropriate;

            (i) Make such reports and recommendations to the Board of Directors
concerning the performance and fees of the Fund's Custodian and Transfer and
Dividend Disbursing Agent as the Board of Directors may reasonably request or
deems appropriate;

            (j) Oversee and review calculations of fees paid to the Fund's
service providers;

            (k) Oversee the Fund's portfolio and perform necessary calculations
as required under Section 18 of the 1940 Act;

            (l) Consult with the Fund's officers, independent accountants, legal
counsel, custodian, accounting agent and transfer and dividend disbursing agent
in establishing the accounting policies of the Fund and monitor financial and
shareholder accounting services;

            (m) Determine the amounts available for distribution as dividends
and distributions to be paid by the Fund to its shareholders; prepare and
arrange for the printing of dividend notices to shareholders; and provide the
Fund's dividend disbursing agent and custodian with such information as is
required for such parties to effect the payment of dividends and distributions
and to implement the Fund's dividend reinvestment plan;

            (n) Prepare such information and reports as may be required by any
banks from which the Fund borrows funds;

            (o) Provide such assistance to the Custodian and the Fund's counsel
and auditors as generally may be required to properly carry on the business and
operations of the Fund;

            (p) Respond to or refer to the Fund's officers or transfer agent,
shareholder (including any potential shareholder) inquiries relating to the
Fund;

            (q) Supervise any other aspects of the Fund's administration as may
be agreed to by the Fund and the Advisor; and

      All services are to be furnished through the medium of any directors,
officers or employees of the Advisor or its affiliates as the Advisor deems
appropriate in order to fulfill its obligations hereunder.

      The Fund will reimburse the Advisor or its affiliates for all out of
pocket expenses incurred by them in connection with the performance of the
administrative services described in this paragraph 3. The Fund will reimburse
the Advisor and its affiliates for their costs in providing accounting services
to the Fund.

         4. Covenants. (a) In the performance of its duties under this
Agreement, the Advisor shall at all times conform to, and act in accordance
with, any requirements imposed by: (i) the provisions of the 1940 Act and the
Investment Advisers Act of 1940, as amended, and all applicable Rules and
Regulations of the Securities and

                                       2
<PAGE>

Exchange Commission; (ii) any other applicable provision of law; (iii) the
provisions of the Charter and By Laws of the Fund, as such documents are amended
from time to time; (iv) the investment objectives and policies of the Fund as
set forth in its Registration Statement on Form N-1A and/or the resolutions of
the Board of Directors; and (v) any policies and determinations of the Board of
Directors of the Fund and

            (b) In addition, the Advisor will:

                  (i) place orders either directly with the issuer or with any
broker or dealer. Subject to the other provisions of this paragraph, in placing
orders with brokers and dealers, the Advisor will attempt to obtain the best
price and the most favorable execution of its orders. In placing orders, the
Advisor will consider the experience and skill of the firm's securities traders
as well as the firm's financial responsibility and administrative efficiency.
Consistent with this obligation, the Advisor may select brokers on the basis of
the research, statistical and pricing services they provide to the Fund and
other clients of the Advisor. Information and research received from such
brokers will be in addition to, and not in lieu of, the services required to be
performed by the Advisor hereunder. A commission paid to such brokers may be
higher than that which another qualified broker would have charged for effecting
the same transaction, provided that the Advisor determines in good faith that
such commission is reasonable in terms either of the transaction or the overall
responsibility of the Advisor to the Fund and its other clients and that the
total commissions paid by the Fund will be reasonable in relation to the
benefits to the Fund over the long term. Subject to the foregoing and the
provisions of the 1940 Act, the Securities Exchange Act of 1934, as amended, and
other applicable provisions of law, the Advisor may select brokers and dealers
with which it or the Fund is affiliated;

                  (ii) maintain a policy and practice of conducting its
investment advisory services hereunder independently of the commercial banking
operations of its affiliates. When the Advisor makes investment recommendations
for the Fund, its investment advisory personnel will not inquire or take into
consideration whether the issuer of securities proposed for purchase or sale for
the Fund's account are customers of the commercial department of its affiliates;
and

                  (iii) treat confidentially and as proprietary information of
the Fund all records and other information relative to the Fund, and the Fund's
prior, current or potential shareholders, and will not use such records and
information for any purpose other than performance of its responsibilities and
duties hereunder, except after prior notification to and approval in writing by
the Fund, which approval shall not be unreasonably withheld and may not be
withheld where the Advisor may be exposed to civil or criminal contempt
proceedings for failure to comply, when requested to divulge such information by
duly constituted authorities, or when so requested by the Fund.

      5. Services Not Exclusive. Nothing in this Agreement shall prevent the
Advisor or any officer, employee or other affiliate thereof from acting as
investment advisor for any other person, firm or corporation, or from engaging
in any other lawful activity, and shall not in any way limit or restrict the
Advisor or any of its officers, employees or agents from buying, selling or
trading any securities for its or their own accounts or for the accounts of
others for whom it or they may be acting; provided, however, that the Advisor
will undertake no activities which, in its judgment, will adversely affect the
performance of its obligations under this Agreement.

      6. Sub-Advisors. The Advisor may from time to time, in its sole discretion
to the extent permitted by applicable law, appoint one or more sub-advisors,
including, without limitation, affiliates of the Advisor, to perform investment
advisory services with respect to the Fund. The Advisor may terminate any or all
sub-advisors in its sole discretion at any time to the extent permitted by
applicable law.

      7. Books and Records. In compliance with the requirements of Rule 31a-3
under the 1940 Act, the Advisor hereby agrees that all records which it
maintains for the Fund are the property of the Fund and further agrees to
surrender promptly to the Fund any such records upon the Fund's request. The
Advisor further agrees to preserve for the periods prescribed by Rule 31a-2
under the 1940 Act the records required to be maintained by Rule 31a-1 under the
1940 Act.

                                       3
<PAGE>

      8. Expenses. During the term of this Agreement, the Advisor will bear all
costs and expenses of its employees and any overhead incurred in connection with
its duties hereunder and shall bear the costs of any salaries or directors' fees
of any officers or directors of the Fund who are affiliated persons (as defined
in the 1940 Act) of the Advisor; provided that the Board of Directors of the
Fund may approve reimbursement to the Advisor of the pro rata portion of the
salaries, bonuses, health insurance, retirement benefits and all similar
employment costs for the time spent on Fund operations, (including, without
limitation, compliance matters) (other than the provision of investment advice
and administrative services required to be provided hereunder) of all personnel
employed by the Advisor who devote substantial time to Fund operations or the
operations of other investment companies advised by the Advisor.

      9. Compensation of the Advisor. (a) The Fund agrees to pay to the Advisor
and the Advisor agrees to accept as full compensation for all services rendered
by the Advisor as such, a monthly fee (the "Investment Advisory Fee") in arrears
at an annual rate equal to the amount set forth in Schedule A hereto of the
average daily value of the Fund's Net Assets. "Net Assets" means the total
assets of the Fund minus the sum of the accrued liabilities. For any period less
than a month during which this Agreement is in effect, the fee shall be prorated
according to the proportion which such period bears to a full month of 28, 29,
30 or 31 days, as the case may be.

            (b) For purposes of this Agreement, the net assets of the Funds
shall be calculated pursuant to the procedures adopted by resolutions of the
Directors of the Fund for calculating the value of the Fund's assets or
delegating such calculations to third parties.

      10. Indemnity. (a) The Fund may, in the discretion of the Board of
Directors of the Fund, indemnify the Advisor, and each of the Advisor's
directors, officers, employees, agents, associates and controlling persons and
the directors, partners, members, officers, employees and agents thereof
(including any individual who serves at the Advisor's request as director,
officer, partner, member, trustee or the like of another entity) (each such
person being an "Indemnitee") against any liabilities and expenses, including
amounts paid in satisfaction of judgments, in compromise or as fines and
penalties, and counsel fees (all as provided in accordance with applicable state
law) reasonably incurred by such Indemnitee in connection with the defense or
disposition of any action, suit or other proceeding, whether civil or criminal,
before any court or administrative or investigative body in which such
Indemnitee may be or may have been involved as a party or otherwise or with
which such Indemnitee may be or may have been threatened, while acting in any
capacity set forth herein or thereafter by reason of such Indemnitee having
acted in any such capacity, except with respect to any matter as to which such
Indemnitee shall have been adjudicated not to have acted in good faith in the
reasonable belief that such Indemnitee's action was in the best interest of the
Fund and furthermore, in the case of any criminal proceeding, so long as such
Indemnitee had no reasonable cause to believe that the conduct was unlawful;
provided, however, that (1) no Indemnitee shall be indemnified hereunder against
any liability to the Fund or its shareholders or any expense of such Indemnitee
arising by reason of (i) willful misfeasance, (ii) bad faith, (iii) gross
negligence or (iv) reckless disregard of the duties involved in the conduct of
such Indemnitee's position (the conduct referred to in such clauses (i)through
(iv) being sometimes referred to herein as "disabling conduct"), (2) as to any
matter disposed of by settlement or a compromise payment by such Indemnitee,
pursuant to a consent decree or otherwise, no indemnification either for said
payment or for any other expenses shall be provided unless there has been a
determination that such settlement or compromise is in the best interests of the
Fund and that such Indemnitee appears to have acted in good faith in the
reasonable belief that such Indemnitee's action was in the best interest of the
Fund and did not involve disabling conduct by such Indemnitee and (3) with
respect to any action, suit or other proceeding voluntarily prosecuted by any
Indemnitee as plaintiff, indemnification shall be mandatory only if the
prosecution of such action, suit or other proceeding by such Indemnitee was
authorized by a majority of the full Board of Directors of the Fund.

            (b) The Fund may make advance payments in connection with the
expenses of defending any action with respect to which indemnification might be
sought hereunder if the Fund receives a written affirmation of the Indemnitee's
good faith belief that the standard of conduct necessary for indemnification has
been met and a written undertaking to reimburse the Fund unless it is
subsequently determined that such Indemnitee is entitled to such indemnification
and if the Directors of the Fund determine that the facts then known to them
would not preclude indemnification. In addition, at least one of the following
conditions must be met: (A) the Indemnitee shall provide security for such
Indemnitee undertaking, (B) the Fund shall be insured against losses arising by
reason of any unlawful advance, or (C) a majority of a quorum consisting of
Directors of the Fund who are neither "interested persons" of the Fund (as
defined in Section 2(a)(19) of the 1940 Act) nor parties to the proceeding

                                       4
<PAGE>

("Disinterested Non Party Directors") or an independent legal counsel in a
written opinion, shall determine, based on a review of readily available facts
(as opposed to a full trial type inquiry), that there is reason to believe that
the Indemnitee ultimately will be found entitled to indemnification.

            (c) All determinations with respect to the standards for
indemnification hereunder shall be made (1) by a final decision on the merits by
a court or other body before whom the proceeding was brought that such
Indemnitee is not liable or is not liable by reason of disabling conduct, or (2)
in the absence of such a decision, by (i) a majority vote of a quorum of the
Disinterested Non Party Directors of the Fund, or (ii) if such a quorum is not
obtainable or, even if obtainable, if a majority vote of such quorum so directs,
independent legal counsel in a written opinion. All determinations that advance
payments in connection with the expense of defending any proceeding shall be
authorized and shall be made in accordance with the immediately preceding clause
(2) above.

      The rights accruing to any Indemnitee under these provisions shall not
exclude any other right to which such Indemnitee may be lawfully entitled.

      11. Limitation on Liability. (a) The Advisor will not be liable for any
error of judgment or mistake of law or for any loss suffered by Advisor or by
the Fund in connection with the performance of this Agreement, except a loss
resulting from a breach of fiduciary duty with respect to the receipt of
compensation for services or a loss resulting from willful misfeasance, bad
faith or gross negligence on its part in the performance of its duties or from
reckless disregard by it of its duties under this Agreement. As used in this
Section 11(a), the term "Advisor" shall include any affiliates of the Advisor
performing services for the Fund contemplated hereby and partners, directors,
officers and employees of the Advisor and of such affiliates.

      12. Duration and Termination. This Agreement shall become effective as of
the date hereof and, unless sooner terminated with respect to the Fund as
provided herein, shall continue in effect for a period of two years. Thereafter,
if not terminated, this Agreement shall continue in effect with respect to the
Fund for successive periods of 12 months, provided such continuance is
specifically approved at least annually by both (a) the vote of a majority of
the Fund's Board of Directors or the vote of a majority of the outstanding
voting securities of the Fund at the time outstanding and entitled to vote, and
(b) by the vote of a majority of the Directors who are not parties to this
Agreement or interested persons of any party to this Agreement, cast in person
at a meeting called for the purpose of voting on such approval. Notwithstanding
the foregoing, this Agreement may be terminated by the Fund at any time, without
the payment of any penalty, upon giving the Advisor 60 days' notice (which
notice may be waived by the Advisor), provided that such termination by the Fund
shall be directed or approved by the vote of a majority of the Directors of the
Fund in office at the time or by the vote of the holders of a majority of the
voting securities of the Fund at the time outstanding and entitled to vote, or
by the Advisor on 60 days' written notice (which notice may be waived by the
Fund). This Agreement will also immediately terminate in the event of its
assignment. (As used in this Agreement, the terms "majority of the outstanding
voting securities," "interested person" and "assignment" shall have the same
meanings of such terms in the 1940 Act.)

      13. Notices. Any notice under this Agreement shall be in writing to the
other party at such address as the other party may designate from time to time
for the receipt of such notice and shall be deemed to be received on the earlier
of the date actually received or on the fourth day after the postmark if such
notice is mailed first class postage prepaid.

      14. Amendment of this Agreement. This Agreement may be amended by the
parties only if such amendment is specifically approved by the vote of the Board
of Directors of the Fund, including a majority of those Directors who are not
parties to this Agreement or interested persons of any such party cast in person
at a meeting called for the purpose of voting on such approval and, where
required by the 1940 Act, by a vote of a majority of the outstanding voting
securities of the Fund.

      15. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York for contracts to be performed
entirely therein without reference to choice of law principles thereof and in
accordance with the applicable provisions of the 1940 Act. To the extent that
the applicable laws of the State of New York, or any of the provisions, conflict
with the applicable provisions of the 1940 Act, the latter shall control.

                                       5
<PAGE>

      16. Use of the Name BlackRock. The Advisor has consented to the use by the
Fund of the name or identifying word "BlackRock" in the name of the Fund. Such
consent is conditioned upon the employment of the Advisor as the investment
advisor to the Fund. The name or identifying word "BlackRock" may be used from
time to time in other connections and for other purposes by the Advisor and any
of its affiliates. The Advisor may require the Fund to cease using "BlackRock"
in the name of the Fund if the Fund ceases to employ, for any reason, the
Advisor, any successor thereto or any affiliate thereof as investment advisor of
the Fund.

      17. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. If any
provision of this Agreement shall be held or made invalid by a court decision,
statute, rule or otherwise, the remainder of this Agreement shall not be
affected thereby. This Agreement shall be binding on, and shall inure to the
benefit of the parties hereto and their respective successors.

      18. Counterparts. This Agreement may be executed in counterparts by the
parties hereto, each of which shall constitute an original counterpart, and all
of which, together, shall constitute one Agreement.

                                       6
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused the foregoing
instrument to be executed by their duly authorized officers, all as of the day
and the year first above written.

                                       BLACKROCK SHORT TERM U.S. GOVERNMENT FUND

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

                                       BLACKROCK ADVISORS, LLC

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

                                       7
<PAGE>

                                   Schedule A

                             Investment Advisory Fee

0.40% of average daily value of Net Assets

                                       8

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