Document:

EXHIBIT 4.2

 [Exhibit 4.2] 
  

  
 FIRST NLC SECURITIZATION TRUST 200  -  , 
 as Issuer 
  
 [ - ], 
 as Securities Administrator 
  
 and 
  
 [ - ], 
 as Indenture Trustee 
  
  

  
 INDENTURE 
  
 Dated as of                      , 200   
  

  
 First NLC Securitization Trust 200  -   
  
 Asset-Backed Notes, Series 200  -   
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE
	  	2
			
	 SECTION 1.1
	  	 DEFINITIONS.
	  	2
	 SECTION 1.2
	  	 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
	  	6
	 SECTION 1.3
	  	 RULES OF CONSTRUCTION.
	  	6
		
	 ARTICLE II THE NOTES
	  	7
			
	 SECTION 2.1
	  	 Form.
	  	7
	 SECTION 2.2
	  	 EXECUTION, AUTHENTICATION AND DELIVERY.
	  	8
	 SECTION 2.3
	  	 LIMITATION ON TRANSFER OF NOTES.
	  	8
	 SECTION 2.4
	  	 REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE.
	  	10
	 SECTION 2.5
	  	 MUTILATED, DESTROYED, LOST OR STOLEN NOTES.
	  	11
	 SECTION 2.6
	  	 PERSONS DEEMED NOTEHOLDERS.
	  	12
	 SECTION 2.7
	  	 PAYMENT OF PRINCIPAL AND INTEREST.
	  	12
	 SECTION 2.8
	  	 CANCELLATION.
	  	13
	 SECTION 2.9
	  	 BOOK-ENTRY NOTES.
	  	14
	 SECTION 2.10
	  	 NOTICES TO DEPOSITORY.
	  	14
	 SECTION 2.11
	  	 DEFINITIVE NOTES.
	  	15
	 SECTION 2.12
	  	 TAX TREATMENT.
	  	15
		
	 ARTICLE III COVENANTS
	  	15
			
	 SECTION 3.1
	  	 PAYMENT OF PRINCIPAL AND INTEREST.
	  	15
	 SECTION 3.2
	  	 MAINTENANCE OF OFFICE OR AGENCY.
	  	16
	 SECTION 3.3
	  	 MONEY FOR PAYMENTS TO BE HELD IN TRUST.
	  	16
	 SECTION 3.4
	  	 EXISTENCE.
	  	18
	 SECTION 3.5
	  	 PROTECTION OF TRUST FUND.
	  	18
	 SECTION 3.6
	  	 OPINIONS AS TO TRUST FUND.
	  	19
	 SECTION 3.7
	  	 PERFORMANCE OF OBLIGATIONS.
	  	19
	 SECTION 3.8
	  	 NEGATIVE COVENANTS.
	  	20
	 SECTION 3.9
	  	 ANNUAL STATEMENT AS TO COMPLIANCE.
	  	21
	 SECTION 3.10
	  	 NO OTHER BUSINESS.
	  	21
	 SECTION 3.11
	  	 NO BORROWING.
	  	21
	 SECTION 3.12
	  	 GUARANTEES, LOANS, ADVANCES AND OTHER LIABILITIES.
	  	21
	 SECTION 3.13
	  	 CAPITAL EXPENDITURES.
	  	21
	 SECTION 3.14
	  	 REMOVAL OF MASTER SERVICER.
	  	22
	 SECTION 3.15
	  	 RESTRICTED PAYMENTS.
	  	22
	 SECTION 3.16
	  	 NOTICE OF EVENTS OF DEFAULT.
	  	22
	 SECTION 3.17
	  	 FURTHER INSTRUMENTS AND ACTS.
	  	22
	 SECTION 3.18
	  	 COVENANTS OF THE ISSUER.
	  	22
	 SECTION 3.19
	  	 REPRESENTATIONS AND WARRANTIES OF THE ISSUER.
	  	23
		
	 ARTICLE IV SATISFACTION AND DISCHARGE
	  	24
			
	 SECTION 4.1
	  	 SATISFACTION AND DISCHARGE OF INDENTURE.
	  	24
	 SECTION 4.2
	  	 APPLICATION OF TRUST MONEY.
	  	25
	 SECTION 4.3
	  	 RESERVED.
	  	25
	 SECTION 4.4
	  	 TRUST MONEY RECEIVED BY INDENTURE TRUSTEE.
	  	25

  

 i 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 ARTICLE V EVENTS OF DEFAULT; REMEDIES
	  	26
			
	 SECTION 5.1
	  	 INDENTURE EVENTS OF DEFAULT.
	  	26
	 SECTION 5.2
	  	 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.
	  	27
	 SECTION 5.3
	  	 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY INDENTURE TRUSTEE.
	  	28
	 SECTION 5.4
	  	 REMEDIES; PRIORITIES.
	  	30
	 SECTION 5.5
	  	 OPTIONAL PRESERVATION OF THE TRUST FUND.
	  	30
	 SECTION 5.6
	  	 LIMITATION OF SUITS.
	  	31
	 SECTION 5.7
	  	 UNCONDITIONAL RIGHTS OF NOTEHOLDERS TO RECEIVE PRINCIPAL AND INTEREST.
	  	32
	 SECTION 5.8
	  	 RESTORATION OF RIGHTS AND REMEDIES.
	  	32
	 SECTION 5.9
	  	 RIGHTS AND REMEDIES CUMULATIVE.
	  	32
	 SECTION 5.10
	  	 DELAY OR OMISSION NOT A WAIVER.
	  	32
	 SECTION 5.11
	  	 CONTROL BY NOTEHOLDERS.
	  	32
	 SECTION 5.12
	  	 WAIVER OF PAST DEFAULTS.
	  	33
	 SECTION 5.13
	  	 UNDERTAKING FOR COSTS.
	  	33
	 SECTION 5.14
	  	 WAIVER OF STAY OR EXTENSION LAWS.
	  	34
	 SECTION 5.15
	  	 ACTION ON NOTES.
	  	34
	 SECTION 5.16
	  	 PERFORMANCE AND ENFORCEMENT OF CERTAIN OBLIGATIONS.
	  	34
		
	 ARTICLE VI THE INDENTURE TRUSTEE
	  	35
			
	 SECTION 6.1
	  	 DUTIES OF INDENTURE TRUSTEE.
	  	35
	 SECTION 6.2
	  	 RIGHTS OF INDENTURE TRUSTEE.
	  	37
	 SECTION 6.3
	  	 INDIVIDUAL RIGHTS OF INDENTURE TRUSTEE.
	  	37
	 SECTION 6.4
	  	 INDENTURE TRUSTEE’S DISCLAIMER.
	  	37
	 SECTION 6.5
	  	 NOTICE OF INDENTURE DEFAULTS.
	  	38
	 SECTION 6.6
	  	 RESERVED.
	  	38
	 SECTION 6.7
	  	 COMPENSATION AND INDEMNITY.
	  	38
	 SECTION 6.8
	  	 REPLACEMENT OF INDENTURE TRUSTEE.
	  	39
	 SECTION 6.9
	  	 SUCCESSOR INDENTURE TRUSTEE BY MERGER.
	  	40
	 SECTION 6.10
	  	 APPOINTMENT OF CO-INDENTURE TRUSTEE OR SEPARATE INDENTURE TRUSTEE.
	  	40
	 SECTION 6.11
	  	 ELIGIBILITY; DISQUALIFICATION.
	  	41
	 SECTION 6.12
	  	 REPRESENTATIONS AND WARRANTIES.
	  	41
	 SECTION 6.13
	  	 PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUER.
	  	42
		
	 ARTICLE VII NOTEHOLDERS’ LISTS AND REPORTS
	  	43
			
	 SECTION 7.1
	  	NOTE REGISTRAR TO FURNISH TO THE INDENTURE TRUSTEE THE NAMES AND ADDRESSES OF NOTEHOLDERS.	  	43
	 SECTION 7.2
	  	 PRESERVATION OF INFORMATION; COMMUNICATIONS TO NOTEHOLDERS.
	  	43
	 SECTION 7.3
	  	 REPORTS BY ISSUER.
	  	43
	 SECTION 7.4
	  	 REPORTS BY INDENTURE TRUSTEE.
	  	44
		
	 ARTICLE VIII COLLECTIONS AND RELEASES
	  	44
			
	 SECTION 8.1
	  	 COLLECTION OF MONEY.
	  	44
	 SECTION 8.2
	  	 RELEASE OF TRUST FUND.
	  	44

  

 ii 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 ARTICLE IX SUPPLEMENTAL INDENTURES
	  	46
			
	 SECTION 9.1
	  	 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF NOTEHOLDERS.
	  	46
	 SECTION 9.2
	  	 SUPPLEMENTAL INDENTURES WITH CONSENT OF NOTEHOLDERS.
	  	47
	 SECTION 9.3
	  	 EXECUTION OF SUPPLEMENTAL INDENTURES.
	  	48
	 SECTION 9.4
	  	 EFFECT OF SUPPLEMENTAL INDENTURE.
	  	48
	 SECTION 9.5
	  	 CONFORMITY WITH TRUST INDENTURE ACT.
	  	48
	 SECTION 9.6
	  	 REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES.
	  	48
		
	 ARTICLE X REDEMPTION OF NOTES
	  	49
			
	 SECTION 10.1
	  	 REDEMPTION.
	  	49
	 SECTION 10.2
	  	 FORM OF REDEMPTION NOTICE.
	  	49
	 SECTION 10.3
	  	 NOTES PAYABLE ON REDEMPTION DATE.
	  	50
		
	 ARTICLE XI MISCELLANEOUS
	  	50
			
	 SECTION 11.1
	  	 COMPLIANCE CERTIFICATES AND OPINIONS, ETC.
	  	50
	 SECTION 11.2
	  	 FORM OF DOCUMENTS DELIVERED.
	  	51
	 SECTION 11.3
	  	 ACTS OF NOTEHOLDERS.
	  	52
	 SECTION 11.4
	  	NOTICES, ETC., TO INDENTURE TRUSTEE, SECURITIES ADMINISTRATOR, ISSUER AND RATING AGENCIES.	  	52
	 SECTION 11.5
	  	 NOTICES TO NOTEHOLDERS; WAIVER.
	  	53
	 SECTION 11.6
	  	 CONFLICT WITH TRUST INDENTURE ACT.
	  	53
	 SECTION 11.7
	  	 EFFECT OF HEADINGS AND TABLE OF CONTENTS.
	  	53
	 SECTION 11.8
	  	 SUCCESSORS AND ASSIGNS.
	  	54
	 SECTION 11.9
	  	 SEVERABILITY.
	  	54
	 SECTION 11.10
	  	 BENEFITS OF INDENTURE AND CONSENTS OF NOTEHOLDERS.
	  	54
	 SECTION 11.11
	  	 LEGAL HOLIDAYS.
	  	54
	 SECTION 11.12
	  	 GOVERNING LAW.
	  	54
	 SECTION 11.13
	  	 COUNTERPARTS.
	  	54
	 SECTION 11.14
	  	 RECORDING OF INDENTURE.
	  	54
	 SECTION 11.15
	  	 TRUST OBLIGATIONS.
	  	55
	 SECTION 11.16
	  	 NO PETITION.
	  	55
	 SECTION 11.17
	  	 INSPECTION.
	  	56

  
 EXHIBITS 
  

					
	 EXHIBIT A
	  	 Form of Notes
	  	A-1
	 EXHIBIT B
	  	 Form of ERISA Transfer Affidavit
	  	B-1

  
  

 iii 

 This INDENTURE, dated as of
                 , 200  , is by and among FIRST NLC TRUST SECURITIZATION 200  -  , a Delaware statutory
trust, as issuer (the “Issuer”),             , a             , as Securities Administrator (the
“Securities Administrator”), and             , a             , as indenture trustee (the
“Indenture Trustee”). 
  
 Each party agrees as
follows for the benefit of the other party, and for the equal and ratable benefit of the Noteholders: 
  
 GRANTING CLAUSE 
  
 The Issuer hereby Grants to the Indenture Trustee on the Closing Date, as trustee for the benefit of the Noteholders, all of the Issuer’s right, title and interest, whether now owned or hereafter acquired, in and to: 
  
 (a) the Mortgage Loans and all interest, principal and applicable Prepayment
Premiums received thereon or with respect thereto after the Cut-off Date to the extent not applied in computing the Cut-off Date Balance thereof; 
  
 (b) the Accounts, and all amounts deposited therein pursuant to the Transfer and Servicing Agreement; 
  
 (c) the property that secures each Mortgage Loan, including the Mortgaged
Properties that have been acquired by foreclosure, deed-in-lieu of foreclosure or otherwise; 
  
 (d) any other assets and all interest and principal received on or with respect to each Mortgage Loan after the Cut-off Date to the extent not applied in computing the Cut-off Date Balance thereof; 
  
 (e) the Issuer’s rights and benefits but none of its obligations under
the Transfer and Servicing Agreement (including the Issuer’s right to cause the Originator to repurchase Mortgage Loans from the Issuer); 
  
 (f) the Issuer’s rights and benefits but none of its obligations under the Custodial Agreement; 
  
 (f) the Issuer’s rights and benefits but none of its obligations under
the insurance policies and the Cap Agreement; and 
  
 (g) all
present and future claims, demands and causes of action in respect of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of the foregoing, including all proceeds of the conversion thereof,
voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to payment of any
and every kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing, but not including the Servicing Rights or the
Servicing Rights Fee, as described in the Transfer and Servicing Agreement (collectively, the “Trust Fund”). 
  

 1 

 The foregoing Grant is made in trust to secure (a) the payment of principal of and interest on the Notes,
as well as any other amounts owing in respect thereof in accordance with their terms and (b) the payment of all other sums payable under the Indenture with respect to the Notes, all of which is to be done in compliance with the provisions of this
Indenture. 
  
 The Indenture Trustee, on behalf of the
Noteholders, acknowledges such Grant, accepts the Trust under this Indenture in accordance with the provisions hereof and agrees to perform its duties as Indenture Trustee as required herein. 
  
 ARTICLE I 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 SECTION 1.1 Definitions. 
  
 (a) Except as otherwise specified herein or as the context may otherwise require, the following terms have the respective meanings set forth below for all
purposes of this Indenture. 
  
 Act: As defined in Section
11.3. 
  
 Applicants: As defined in Section 7.2.

  
 Beneficial Noteholder: One or more persons acquiring an
interest in a Book-Entry Note. 
  
 Book-Entry Notes:
Beneficial interests in Notes, the ownership and transfer of which shall be evidenced or made through book entries by a Depository as described in Section 8.2; provided, however, that after the occurrence of a condition whereupon Definitive
Notes are to be issued to Noteholders, such Book-Entry Notes shall no longer be “Book-Entry Notes.” 
  
 Clearstream: Clearstream Banking, société anonyme, and any successor thereto. 
  
 Definitive Notes: The meaning specified in Section 2.9. 
  
 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. 
  
 Euroclear: Euroclear SA/NV, as operator of the “Euroclear System.” 
  
 Executive Officer: With respect to any corporation or limited liability company, the chief executive officer, chief
operating officer, chief financial officer, president, manager, executive vice president, any vice president, the secretary or the treasurer of such entity; and with respect to any partnership, any general partner thereof. 
  
 Global Notes: As defined in Section 2.1. 
  

 2 

 Grant: To mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey, assign,
transfer, create, and grant a lien upon and a security interest in and a right of set-off against, deposit, set over and confirm pursuant to this Indenture. A Grant of the Trust Fund or of any other agreement or instrument shall include all rights,
powers and options (but none of the obligations) of the granting party thereunder, including the immediate and continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect of the Trust Fund and all
other moneys payable thereunder, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of the granting party or otherwise, and generally to do
and receive anything that the granting party is or may be entitled to do or receive thereunder or with respect thereto. A Grant of the Trust Fund excludes all Servicing Rights and the Servicing Rights Fee. 
  
 Indenture Default: Any occurrence that is, or with notice or the lapse
of time or both would become, an Indenture Event of Default. 
  
 Indenture Event of Default: The meaning specified in Section 5.1. 
  
 Independent Certificate: A certificate or opinion to be delivered to the Indenture Trustee under the circumstances described in Section 11.1, made by an Independent appraiser or other expert appointed by an
Issuer Order and approved by the Indenture Trustee in the exercise of reasonable care, and such opinion or certificate shall state that the signer has read and satisfies the definition of “Independent” in this Indenture. 
  
 Issuer: First NLC Securitization Trust
200  -  , or any successor and, for purposes of any provision contained herein and required by the TIA, each other obligor on the Notes. 
  
 Issuer Order: A written order signed in the name of the Trust by any one of its Authorized Officers and delivered to
the Securities Administrator. 
  
 Non-Priority Class Note:
As of any date of determination, any Outstanding Note other than the related Notes that comprise the Priority Class Notes. 
  
 Note or Notes: Any of the Class A Notes and Class M Notes issued pursuant to this Indenture, substantially in the forms attached hereto as
Exhibit A. 
  
 Noteholder: With respect to a
Book-Entry Note, the Person that is the beneficial Noteholder of such Book-Entry Note, as reflected on the books of the Depository or on the books of a Person maintaining an account with such Depository (directly as a Depository Participant or as an
indirect participant, in each case in accordance with the rules of such Depository), and with respect to a Definitive Note, the Person that is the registered Noteholder of such Note as reflected in the Note Register. 
  
 Note Register: As defined in Section 2.4. 
  
 Note Registrar: The initial Note Registrar shall be the Securities
Administrator. 
  
 Officer’s Certificate: A
certificate signed by any Authorized Officer of the Issuer under the circumstances described in Section 11.1 and delivered to the Indenture Trustee. Unless otherwise specified, any reference in this Indenture to an Officer’s Certificate shall
be to an Officer’s Certificate of any Authorized Officer of the Issuer. 
  

 3 

 Outstanding: As of the date of determination, all Notes theretofore authenticated and delivered
under this Indenture except: 
  
 (a) Notes
theretofore cancelled by the Note Registrar or delivered to the Note Registrar for cancellation; 
  
 (b) Notes the payment for which money in the necessary amount has been theretofore deposited with the Master Servicer or any Paying Agent
in trust for the Noteholders; provided, however, that if such Notes are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision for such notice has been made, satisfactory to the Master Servicer;
and 
  
 (c) Notes in exchange for or in lieu of
which other Notes have been authenticated and delivered pursuant to this Indenture, unless proof satisfactory to the Indenture Trustee is presented that any such Notes are held by a protected purchaser; 
  
 provided, that in determining whether Noteholders representing the requisite
Outstanding Balance of the Notes have given any request, demand, authorization, direction, notice, consent or waiver hereunder or under any Operative Agreement, those Notes owned by the Issuer, any other obligor upon the Notes, the Depositor, the
Owner Trustee, the Indenture Trustee, the Master Servicer, the Securities Administrator, the Subservicer, the Servicing Rights Owner, the Sellers, the Originator or any Affiliate of any of the foregoing Persons shall be disregarded and deemed not to
be Outstanding. In determining whether the Indenture Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes that the Indenture Trustee knows to be so owned shall be so
disregarded (unless such action requires the consent, waiver, request or demand of 100% of the Outstanding Balance represented by a particular Class and 100% of the Outstanding Balance represented by such Class is registered in the name of one or
more of the foregoing entities). Notes so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Indenture Trustee the pledgee’s right so to act with respect to such Notes
and that the pledgee is not the Issuer, any other obligor upon the Notes, the Depositor, the Owner Trustee, the Indenture Trustee, the Master Servicer, the Securities Administrator, the Subservicer, the Servicing Rights Owner, the Sellers, the
Originator, or any Affiliate of any of the foregoing Persons. 
  
 Outstanding Balance: The aggregate principal amount of the Notes Outstanding as of the date of determination. 
  
 Paying Agent: The Securities Administrator, initially, or any other Person that meets the eligibility standards for the Indenture Trustee specified
in Section 6.11. 
  
 Permitted Transferee: Means (i) a
single entity that qualifies as (a) a REIT, (b) a Qualified REIT Subsidiary, or (c) an entity that is disregarded for federal income tax purposes that is wholly owned by a REIT or a Qualified REIT Subsidiary, (ii) a lender or repurchase agreement
counterparty in a repurchase agreement or secured lending transaction that qualifies as 
  

 4 

 
a borrowing for federal income tax purposes, or (iii) any other entity, provided that an opinion of nationally recognized federal income tax counsel is
obtained to the effect that, as of the date of a transfer to such entity, the Trust will not be treated as one or more taxable mortgage pools for federal income tax purposes. 
  
 Plan: An employee benefit plan or other retirement arrangement which
is subject to Section 406 of ERISA and/or Section 4975 of the Code or any entity whose underlying assets include such plan’s or arrangement’s assets by reason of their investment in the entity. 
  
 Predecessor Note: With respect to any particular Note, every previous
Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 2.5 in lieu of a mutilated, lost, destroyed or stolen Note shall
be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note. 
  
 Priority Class Notes: Until the Class Principal Amounts of the Senior Notes are reduced to zero and all sums payable to the Noteholders of the Senior Notes have been paid in full, the Senior Notes; when the
Class Principal Amounts of the Senior Notes have been reduced to zero and all amounts payable to the Noteholders of the Senior Notes have been paid in full, the Class M Notes by Class in alphanumeric order, each until the Class Principal Amount of
the applicable Class of Class M Notes has been reduced to zero and all sums payable to the Noteholders of such Class M Notes have been paid in full. 
  
 Prospective Noteholder: Each prospective purchaser and any subsequent transferee of a Note. 
  
 PTCE: As defined in Section 2.3. 
  
 Qualified REIT Subsidiary: A direct or indirect 100% owned subsidiary
of a REIT that satisfies the requirements of Section 856(i) of the Code. 
  
 Record Date: As to any Payment Date for any Book-Entry Notes, the last Business Day preceding such Payment Date, and the last Business Day of the month preceding each Payment Date for any Definitive Notes.

  
 Redemption Date: In the case of a redemption of the
Notes pursuant to Section 10.1, the Payment Date specified by the Indenture Trustee in the notice delivered pursuant to Section 10.2. 
  
 Retained Notes: Those certain Classes, or portions of certain Classes, of Notes which, at the time of their issuance, are held by the beneficial
owner of the Ownership Certificate or one of its affiliates. 
  
 REIT: A real estate investment trust within the meaning of Section 856 of the Code. 
  
 Securities and Exchange Act: The 1934 Securities and Exchange Act, as amended, including any rules or regulations enacted thereunder. 

 
 Senior Notes: The Class A Notes. 
  

 5 

 Similar Law: As defined in Section 2.3 
  
 STAMP: As defined in Section 2.4 hereof. 
  
 State: Any one of the 50 States of the United States of America or the
District of Columbia. 
  
 Transfer and Servicing Agreement:
The Transfer and Servicing Agreement dated as of                      , 200_, among the Issuer, the Depositor, the Sellers, the
Originator, the Servicing Rights Owner, the Subservicer, the Master Servicer, the Securities Administrator and the Indenture Trustee, as such may be amended or supplemented from time to time. 
  
 Trust Fund: As defined in the Granting Clause of this Indenture.

  
 Trust Indenture Act or TIA: The Trust Indenture Act of
1939 as in force on the date hereof, unless otherwise specifically provided. 
  
 (b) Except as otherwise specified herein or as the context may otherwise require, capitalized terms used but not otherwise defined herein shall have the meanings assigned to them in the Transfer and Servicing
Agreement. 
  
 SECTION 1.2 Incorporation by Reference of Trust
Indenture Act. 
  
 (a) Whenever this Indenture refers to a
provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings: 
  
 “Commission” means the Securities and Exchange Commission; 
  
 “indenture securities” means the Notes; 
  
 “indenture security holder” means a Noteholder; 

 
 “indenture to be qualified” means this Indenture;

  
 “indenture trustee” or “institutional
trustee” means the Indenture Trustee; and 
  
 “obligor” on the indenture securities means the Issuer and any other obligor on the indenture securities. 
  
 (b) All other TIA terms used in this Indenture that are defined in the TIA, defined by TIA reference to another statute or defined by rule of the
Securities and Exchange Commission have the respective meanings assigned to them by such definitions. 
  
 SECTION 1.3 Rules of Construction. 
  
 Unless the context otherwise requires: 
  
 (i) a term has the meaning assigned to it; 
  
  

 6 

 (ii) an accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect from time to time; 
  
 (iii) “or” is not exclusive; 
  
 (iv) “including” means including without limitation; 
  
 (v) words in the singular include the plural and words in the plural include the singular; 
  
 (vi) any agreement, instrument or statute defined or
referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments)
references to all attachments thereto and instruments incorporated therein; references to a Person are also to its permitted successors and assigns; 
  
 (vii) terms defined in the UCC and not otherwise defined herein shall have the meaning assigned to them in the UCC; and 
  
 (viii) to “U.S. dollars,” “dollars,” or
the sign “$” shall be construed as references to United States dollars which are freely transferable by residents and non-residents of the United States of America and convertible by such persons into any other freely convertible currency
unless such transferability or convertibility is restricted by any law or regulation of general application in which event references to “U.S. dollars,” “dollars,” or the sign “$” shall be construed as references to
such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts in the United States of America, and “cents” shall be construed accordingly. 
  
 ARTICLE II 
  
 THE NOTES 
  
 SECTION 2.1 Form. 
  
 The Notes shall be designated as the “First NLC Securitization Trust 200_-_ Asset-Backed Notes, Series 200_-_.” The Notes shall be in
substantially the same form as set forth in Exhibit A with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be determined by the officers executing such Notes, as evidenced by their execution of the Notes. Any portion of the text of any Note may be set forth on the reverse thereof, with
an appropriate reference thereto on the face of the Note. 
  
 The
Definitive Notes and the global notes representing the Book-Entry Notes (the “Global Notes”) shall be typewritten, printed, lithographed or engraved or produced by any 
  

 7 

 
combination of these methods (with or without steel engraved borders), all as determined by the officers executing such Notes, as evidenced by their
execution of such Notes. 
  
 Each Note shall be dated the date of
its authentication. The terms of the Notes set forth in Exhibit A are part of the terms of this Indenture. 
  
 SECTION 2.2 Execution, Authentication and Delivery. 
  
 The Notes shall be executed on behalf of the Issuer by any Authorized Officer of the Owner Trustee. The signature of any such Authorized Officer on the
Notes may be manual or facsimile. 
  
 Notes bearing the manual or
facsimile signature of individuals who were at any time Authorized Officers of the Owner Trustee shall bind the Issuer, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of
such Notes or did not hold such offices at the date of such Notes. 
  
 The Note Registrar shall, upon Issuer Order, authenticate and deliver the Notes for original issue in the aggregate principal or notional amounts with respect to each Class as specified below: 
  

					
	 Class
 Designation

	 	 Initial Class
 Principal Amount

	 	 Maturity
 Date

	 A
	 	 	 	 
	 M
	 	 	 	 

  
 The aggregate
principal amounts of such Classes of Notes that are Outstanding at any time may not exceed such respective amounts. 
  
 The Notes will be issued in minimum principal amount denominations of $[25,000] and integral multiples of $[1] in excess thereof. 
  
 No Note shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose, unless there appears on such Note a certificate of authentication substantially in the form provided for herein executed by the Securities Administrator by the manual signature of one of its authorized signatories, and
such certificate upon any Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder. 
  
 SECTION 2.3 Limitation on Transfer of Notes. 
  
 (a) No Definitive Note shall be transferred unless the Note Registrar shall have received a representation from the transferee of such Note, satisfactory
to the Note Registrar (such requirement is satisfied only by the Note Registrar’s receipt of a transfer affidavit from the transferee substantially in the form of Exhibit B hereto), to the effect that (i) such transferee is not acquiring
such note for, or with the assets of, an employee benefit plan or other retirement arrangement (a “Plan”) that is subject to Section 406 of ERISA or to Section 4975 of the Code 

  

 8 

 
or to any substantially similar law (“Similar Law”), or any entity deemed to hold the plan assets of the foregoing (collectively,
“Plans”), or (ii) such transferee, by its acquisition and holding of such Notes for, or with the assets of, a Plan will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code which
is not covered under Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or some other applicable exemption, and will not result in a non-exempt violation of any Similar Law.

  
 In the case of a Note that is a Book-Entry Note, for purposes
of clauses (i) or (ii) of the preceding paragraph, such representations shall be deemed to have been made to the Note Registrar by the transferee’s acceptance of such Note that is also a Book-Entry Note (or the acceptance by a Noteholder of the
beneficial interest in such Note). 
  
 To the extent permitted
under applicable law (including, but not limited to, ERISA), none of the Issuer, the Indenture Trustee, the Note Registrar, the Securities Administrator or the Depositor shall have any liability to any Person for any registration of transfer of any
Note that is in fact not permitted by this Section 2.3(a) or for the Indenture Trustee or the Securities Administrator (or any Paying Agent on their behalf) making any payments due on such Note to its Noteholder thereof or taking any other action
with respect to such Noteholder under the provisions of this Indenture so long as the transfer was registered by the Note Registrar in accordance with the foregoing requirements. In addition, none of the Issuer, the Indenture Trustee, the Note
Registrar, the Securities Administrator or the Depositor shall be required to monitor, determine or inquire as to compliance with the transfer restrictions with respect to any Note in the form of a Book-Entry Note, and none of the Issuer, the
Indenture Trustee, the Note Registrar, the Securities Administrator or the Depositor shall have any liability for transfers of Book-Entry Notes or any interests therein made in violation of the restrictions on transfer described in the Prospectus
and this Indenture. 
  
 In the event that a Note is transferred to
a Person that does not meet the requirements of this Section 2.3, such transfer shall be of no force and effect, shall be void ab initio and shall not operate to transfer any rights to such Person, notwithstanding any instructions to the
contrary to the Issuer, the Indenture Trustee, the Note Registrar or any intermediary. The Securities Administrator shall not make any payments on such Note for as long as such Person is the Noteholder of such Note. 
  
 The Issuer shall cause each Note to contain a legend substantially similar to
the applicable legend provided in Exhibit A hereto stating that the transfer of such Notes is subject to certain restrictions as set forth herein. 
  
 (b) Any purported transfer of a Note (or any interest therein) not in accordance with this Section 2.3 shall be void ab initio and shall not be
given effect for any purpose hereunder. 
  
 (c) Any Retained Notes
will be subject to the same transfer restrictions applicable to the Ownership Certificate as set forth in section 3.3 of the Owner Trust Agreement unless either (a) the Retained Notes are sold to a party that is a taxable REIT subsidiary or is not
affiliated with the owner of the Ownership Certificate and at the time of such sale: (i) the owner of the Ownership Certificate is a Permitted Transferee; (ii) no modifications have been made to the 
  

 9 

 
transaction documents; (iii) the rating of the Retained Notes as of the date of such sale is not lower than the rating of such Retained Note as of the
closing date; and (iv) no adverse changes have been made to (or that would adversely affect the application of) the legal authorities applicable to the closing date tax opinion regarding the status of the Notes as debt or (b) the holder of the
Retained Notes otherwise receives a “will be debt” tax opinion from a law firm generally recognized to be qualified to opine concerning the tax aspects of asset securitization. 
  
 (d) None of the Issuer, the Note Registrar or the Indenture Trustee will have the ability to monitor transfers of the Notes
while they are in book-entry form and will have no liability for transfers of Book-Entry Notes in violation of any of the transfer restrictions described in this Section 2.3. 
  
 SECTION 2.4 Registration; Registration of Transfer and Exchange. 
  
 The Issuer shall cause the Note Registrar to keep a register (the
“Note Register”) in which, subject to such reasonable regulations as the Note Registrar may prescribe and the restrictions on transfers of the Notes set forth herein, the Issuer shall provide for the registration of Notes and the
registration of transfers of Notes. The Securities Administrator shall be the initial Note Registrar. Upon any resignation of any Note Registrar, the Issuer shall promptly appoint a successor or, if it elects not to make such an appointment, assume
the duties of Note Registrar. If a Person other than the Indenture Trustee or the Securities Administrator is appointed by the Issuer as Note Registrar, the Issuer will give the Indenture Trustee and the Securities Administrator prompt written
notice of the appointment of such Note Registrar and of the location, and any change in the location, of the Note Register. 
  
 The Indenture Trustee shall have the right to inspect the Note Register at all reasonable times and to obtain copies thereof, and the Indenture Trustee
shall have the right to rely upon a certificate executed on behalf of the Note Registrar by an Executive Officer thereof as to the names and addresses of the Noteholders and the principal amounts and number of such Notes. 
  
 Subject to Section 2.3, upon surrender for registration of transfer of any
Note at the office of the Note Registrar to be maintained as provided in Section 3.2, the Issuer shall execute, and the Note Registrar shall authenticate upon receipt of an Issuer Order and the Noteholder shall be entitled to obtain from the Note
Registrar, in the name of the designated transferee or transferees, one or more new Notes of the same Class in any authorized denominations, of a like aggregate principal amount. 
  
 At the option of the Noteholder, Notes may be exchanged for other Notes of the same Class in any authorized denominations,
of a like aggregate principal amount, upon surrender of the Notes to be exchanged at such office or agency. Whenever any Notes are so surrendered for exchange, the Issuer shall execute, and the Note Registrar shall authenticate upon receipt of an
Issuer Order and the Noteholder shall be entitled to obtain from the Note Registrar, the Notes which the Noteholder making the exchange is entitled to receive. 
  

All Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations of the Issuer, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange. 
  

 10 

 Every Note presented or surrendered for registration of transfer or exchange shall be (a) duly endorsed
by the Noteholder thereof, or accompanied by a written instrument of transfer satisfactory to the Note Registrar and (b) duly executed by the Noteholder thereof or such Noteholder’s attorney duly authorized in writing, with such signature
guaranteed by an “eligible guarantor institution” meeting the Note Registrar’s requirements, including membership or participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or another
“signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP. 
  
 No service charge shall be made to a Noteholder for any registration of transfer or exchange of Notes, but the Issuer or the Note Registrar may require
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes, other than exchanges pursuant to this Section 2.4 not involving any transfer.

  
 The preceding provisions of this Section notwithstanding, the
Note Registrar need not register and shall not be required to transfer or exchange those Notes selected for redemption for a period of 15 days preceding the due date for any payment with respect to such Note. 
  
 SECTION 2.5 Mutilated, Destroyed, Lost or Stolen Notes. 
  
 If (a) any mutilated Note is surrendered to the Note Registrar, or the Note
Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Note, and (b) there is delivered to the Note Registrar such security or indemnity as may be required by it to hold the Issuer and the Note Registrar harmless,
then, in the absence of actual notice to the Issuer, Note Registrar or Indenture Trustee that such Note has been acquired by a protected purchaser, and upon certification provided by the Noteholder of such Note that the requirements of Section 8-405
of the UCC are met, the Issuer shall execute, and upon its request the Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note; provided,
however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have become or within seven days shall be due and payable, or shall have been called for redemption, instead of issuing a replacement Note, the Issuer may
pay such destroyed, lost or stolen Note when so due or payable or upon the Redemption Date without surrender thereof. If, after the delivery of such replacement Note or payment of a destroyed, lost or stolen Note pursuant to the proviso to the
preceding sentence, a protected purchaser of the original Note in lieu of which such replacement Note was issued presents for payment such original Note, the Issuer, the Indenture Trustee and the Note Registrar shall be entitled to recover such
replacement Note (or such payment) from the Person to whom it was delivered or any Person taking such replacement Note from such Person to whom such replacement Note was delivered or any assignee of such Person, except a protected purchaser, and
shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the Issuer, the Indenture Trustee or the Note Registrar in connection therewith. 
  

 11 

 Upon the issuance of any replacement Note under this Section, the Issuer, the Indenture Trustee or the
Note Registrar may require the payment by the Noteholder of such Note of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses (including the fees and expenses of the
Indenture Trustee or the Note Registrar) connected therewith. 
  
 Every replacement Note issued pursuant to this Section in replacement of any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Issuer, whether or not the mutilated, destroyed,
lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder. 
  
 The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes. 
  
 SECTION 2.6 Persons Deemed Noteholders. 
  
 Prior to due presentment for registration of transfer of any Note, the Issuer, the Note Registrar, the Indenture Trustee and any of their agents may treat
the Person in whose name any Note is registered (as of the day of determination) as the Noteholder of such Note for the purpose of receiving payments of principal of and interest, if any, on such Note and for all other purposes whatsoever, whether
or not such Note be overdue, and none of the Issuer, the Note Registrar, the Indenture Trustee or any of their agents shall be affected by notice to the contrary. 
  
 SECTION 2.7 Payment of Principal and Interest. 
  
 (a) On each Payment Date, the Indenture Trustee, or the Paying Agent on its behalf, will be required to make payments of
principal and interest on the Notes from amounts available therefor in accordance with Section 7.7 of the Transfer and Servicing Agreement. 
  
 (b) Any installment of interest or principal payable on any Note shall be paid on the applicable Payment Date to the Person in whose name such Note (or
one or more Predecessor Notes) is registered on the related Record Date, by check, mailed first-class postage prepaid to such Person’s address as it appears on the Note Register on such Record Date or, upon written request made to the Paying
Agent at least five Business Days prior to the related Record Date, by the Noteholder having an initial Note Principal Amount of not less than $2,500,000, by wire transfer in immediately available funds to an account specified in the request and at
the expense of such Noteholder, except that, unless Definitive Notes have been issued pursuant to Section 2.11, with respect to Notes registered on such Record Date in the name of the nominee of the Depository (initially, such nominee to be Cede
& Co.), payment will be made by wire transfer in immediately available funds to the account designated by such nominee, except for the final installment of principal payable with respect to such Note on a Payment Date or on the applicable
Maturity Date for such Class of Notes (and except for the Redemption Price for any Note called for redemption pursuant to Section 10.1), which shall be payable as provided below. The funds represented by any such checks returned undelivered shall be
held in accordance with Section 3.3. 
  

 12 

 (c) Each Class of Notes shall accrue interest at the Note Interest Rate as set forth in the Transfer and
Servicing Agreement, and such interest shall be payable on each Payment Date, subject to Section 3.1. 
  
 (d) Interest shall be computed on each Class of Notes on the basis of a 360-day year and the actual number of days elapsed in each Accrual Period. With
respect to each Class of Notes then Outstanding, the Securities Administrator shall determine LIBOR for each applicable Accrual Period on the second LIBOR Business Day prior thereto, in accordance with the provisions of the Transfer and Servicing
Agreement. All interest payments on each Class of Notes shall be made pro rata by Percentage Interest to the Noteholders of such Class entitled thereto. 
  

(e) The principal of the Notes shall be payable in installments on each Payment Date as provided herein and in accordance with Section 7.7 of the
Transfer and Servicing Agreement. The entire unpaid principal amount of the Notes shall be due and payable, if not previously paid, on the date on which an Indenture Event of Default shall have occurred and be continuing if the Indenture Trustee or
the Noteholders representing not less than a majority of the Outstanding Balance of the Priority Class Notes have declared the Notes to be immediately due and payable in the manner provided in Section 5.2. All principal payments on a Class of Notes
shall be made pro rata by Percentage Interest to the Noteholders of such Class entitled thereto. 
  
 (f) The Note Registrar shall notify the Person in whose name a Note is registered at the close of business on the Record Date preceding the Payment Date
on which the Issuer expects that the final installment of principal of and interest on such Note will be paid. Such notice shall be mailed or transmitted by facsimile no later than five Business Days prior to such final Payment Date and shall
specify that such final installment will be payable only upon presentation and surrender of such Note and shall specify the place where such Note may be presented and surrendered for payment of such installment. Notices in connection with
redemptions of Notes shall be mailed to Noteholders as provided in Section 10.2. 
  
 SECTION 2.8 Cancellation. 
  
 All Notes surrendered for payment, registration of transfer, exchange or redemption shall, if surrendered to any Person other than the Indenture Trustee, be delivered to the Note Registrar and shall be promptly cancelled by the Note
Registrar. The Issuer may at any time deliver to the Note Registrar for cancellation any Notes previously authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly
cancelled by the Note Registrar. No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section, except as expressly permitted by this Indenture. All cancelled Notes may be held or disposed of by the
Note Registrar in accordance with its standard retention or disposal policy as in effect at the time unless the Issuer shall direct by an Issuer Order that they be destroyed or returned to it; provided, that such Issuer Order is timely and
the Notes have not been previously disposed of by the Note Registrar. 
  

 13 

 SECTION 2.9 Book-Entry Notes. 
  
 (a) Each Class of Notes will be issued in the form of typewritten Notes or Global Notes representing the Book-Entry Notes,
to be delivered to the initial Depository or to the Securities Administrator as custodian for the initial Depository by, or on behalf of, the Issuer. The Book-Entry Notes shall be registered initially on the Note Register in the name of Cede &
Co., the nominee of the initial Depository, and no Noteholder thereof will receive a Definitive Note representing such Noteholder’s interest in such Note, except as provided in Section 2.11. 
  
 (b) Unless and until definitive, fully registered Notes (the
“Definitive Notes”) have been issued to such Noteholders pursuant to Section 2.11: 
  
 (i) the provisions of this Section shall be in full force and effect; 
  
 (ii) the Note Registrar and the Indenture Trustee shall be entitled to deal with the Depository for all
purposes of this Indenture (including the payment of principal of and interest on the Notes and the giving of instructions or directions hereunder) as the sole holder of the Notes, and shall have no obligation to the Noteholders; 
  
 (iii) to the extent that the provisions of this Section
conflict with any other provisions of this Indenture, the provisions of this Section shall control; and 
  
 (iv) the rights of Noteholders shall be exercised only through the Depository and shall be limited to those established by law and
agreements between such Noteholders and the Depository and/or the Depository Participants. 
  
 (c) Unless and until Definitive Notes are issued pursuant to Section 2.11: 
  
 (i) the Note Registrar shall not register any transfer of a beneficial interest in a Book-Entry Note; 
  
 (ii) the initial Depository will make book-entry transfers
among the Depository Participants and receive and transmit payments of principal of and interest on the Notes to such Depository Participants; and 
  
 (iii) whenever this Indenture requires or permits actions to be taken based upon instructions or directions of Noteholders evidencing a
specified percentage of the Outstanding Balance of the Notes (or the Priority Class Notes), the Depository shall be deemed to represent such percentage only to the extent that it has received instructions to such effect from Noteholders and/or
Depository Participants owning or representing, respectively, such required percentage of the beneficial interest in the Notes and has delivered such instructions to the Indenture Trustee. 
  
 SECTION 2.10 Notices to Depository. 
  
 Whenever a notice or other communication to the Noteholders is required under
this Indenture, unless and until Definitive Notes shall have been issued to such Noteholders pursuant to Section 2.11, the Securities Administrator shall give all such notices and communications specified herein to be given to Holders of the Notes
to the Depository, and shall have no obligation to such Noteholders. 
  

 14 

 SECTION 2.11 Definitive Notes. 
  
 If (a) the Depository is no longer willing or able to properly discharge its responsibilities with respect to the Book-Entry
Notes and the Issuer is unable to locate a qualified successor or (b) after the occurrence of an Indenture Event of Default, Noteholders of the Book-Entry Notes representing beneficial interests aggregating at least a majority of the Outstanding
Balance of the Book-Entry Notes advise the Depository in writing that the continuation of a book-entry system through the Depository is no longer in the best interests of such Noteholders, then the Depository shall notify all Noteholders, the Note
Registrar, the Securities Administrator and the Indenture Trustee of the occurrence of any such event and of the availability of Definitive Notes to Noteholders requesting the same. Upon surrender to the Securities Administrator of the typewritten
Notes representing the Book-Entry Notes by the Depository, accompanied by registration instructions, the Issuer shall execute and upon receipt of an Issuer Order the Note Registrar shall authenticate the Definitive Notes in accordance with the
instructions of the Depository. None of the Issuer, the Note Registrar or the Indenture Trustee shall be liable for any delay in delivery of such instructions and may conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Notes, the Indenture Trustee and the Note Registrar shall recognize the holders of the Definitive Notes as Noteholders. 
  
 SECTION 2.12 Tax Treatment. 
  
 The Issuer has entered into this Indenture, and the Notes will be issued, with the intention that, for federal, state and local income, single business
and franchise tax purposes, the Notes will qualify as indebtedness of the Issuer secured by the Trust Fund. The Issuer, by entering into this Indenture, and each Noteholder, by its acceptance of a Note (and each Noteholder by its acceptance of an
interest in the applicable Book-Entry Note), agree to treat the Notes for federal, state and local income, single business and franchise tax purposes as indebtedness of the Issuer. 
  
 ARTICLE III 
  
 COVENANTS 
  
 SECTION 3.1 Payment of Principal and Interest. 
  
 The Issuer will duly and punctually pay (or will cause to be duly and punctually paid) the principal of and interest on the Notes in accordance with the
terms of the Notes, the Transfer and Servicing Agreement and this Indenture. Amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest and/or principal shall be considered as having been paid by the Issuer
to such Noteholder for all purposes of this Indenture. 
  
 The
Notes shall be non-recourse obligations of the Issuer and shall be limited in right of payment to amounts available from the Trust Fund as provided in this Indenture. The Issuer shall not otherwise be liable for payments of the Notes, and none of
the Noteholders, agents, officers, directors, employees, or successors or assigns of the Issuer shall be personally liable for any amounts payable, or performance due, under the Notes or this Indenture. If any other provision of this Indenture shall
be deemed to conflict with the provisions of this Section 3.1, the provisions of this Section 3.1 shall control. 
  

 15 

 SECTION 3.2 Maintenance of Office or Agency. 
  
 The Note Registrar on behalf of the Issuer will maintain an office or agency
where Notes may be surrendered for registration of transfer or exchange, and where notices and demands to or upon the Issuer in respect of the Notes and this Indenture may be served. 
  
 SECTION 3.3 Money for Payments to be Held in Trust. 
  
 (a) As provided in Section 2.7, all payments of amounts due and payable with respect to any Notes that are to be made from
amounts withdrawn from the Payment Account and paid pursuant to the Transfer and Servicing Agreement shall be made on behalf of the Issuer by the Indenture Trustee or by the Paying Agent, and no amounts so withdrawn from such account for payments
with respect to the Notes shall be paid over to the Issuer except as provided in this Section. 
  
 (b) Any Paying Agent shall be appointed by Issuer Order with written notice thereof to the Indenture Trustee; provided that the Securities Administrator is appointed hereby as the initial Paying Agent. Any
Paying Agent appointed by the Issuer shall be a Person that would be eligible to be Indenture Trustee hereunder as provided in Section 6.11. The Issuer shall not appoint any Paying Agent (other than the Securities Administrator or the Indenture
Trustee) which is not, at the time of such appointment, an institution: 
  
 (i) that has: 
  
 (A) commercial paper, short-term debt obligations, or other short-term deposits are rated at least “A-1” or long-term unsecured debt obligations are rated at least “A-” by S&P (or assigned comparable ratings by the
other Rating Agencies), if the amounts on deposit are to be held in the account for no more than 365 days; or 
  
 (B) commercial paper, short-term debt obligations, demand deposits, or other short-term deposits are rated at least “A-1” by
S&P, if the amounts on deposit are to be held in the account for no more than 30 days and are not intended to be used as credit enhancement; or 
  
 (ii) that is the corporate trust department of a federal depository institution or state-chartered depository institution subject to
regulations regarding fiduciary funds on deposit similar to Title 12 of the U.S. Code of Federal Regulations Section 9.10(b), which, in either case, has corporate trust powers and is acting in its fiduciary capacity. 
  
 (c) The Issuer shall cause each Paying Agent other than the Indenture Trustee
and the initial Paying Agent (who hereby makes the covenants set forth below) to execute and deliver to the Indenture Trustee an instrument in which such Paying Agent shall agree with the Indenture Trustee (and if the Indenture Trustee acts as
Paying Agent, it hereby so agrees), subject to the provisions of this Section, that such Paying Agent will: 
  

 16 

 (i) hold all sums held by it for the payment of amounts due with respect to the Notes in
trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided and pay such sums to such Persons as herein provided; 
  
 (ii) give the Indenture Trustee notice of any default by the
Issuer of which the Paying Agent has actual knowledge in the making of any payment required to be made with respect to the Notes; 
  
 (iii) at any time during the continuance of any such default, upon the written request of the Indenture Trustee, forthwith pay to the
Indenture Trustee all sums so held in trust by such Paying Agent; 
  
 (iv) immediately resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums held by it in trust for the payment of Notes if at any time it ceases to meet the standards required to be met by a Paying
Agent at the time of its appointment; and 
  
 (v)
comply with all requirements of the Code with respect to the withholding from any payments made by it on any Notes of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith;
provided, however, that with respect to reporting requirements applicable to original issue discount, the accrual of market discount or the amortization of premium on the Notes, the Depositor shall have first provided the calculations
pertaining thereto and the amount of any resulting withholding taxes to the Indenture Trustee and the Paying Agent. 
  
 (d) The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, by Issuer Order
direct any Paying Agent to pay to the Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent; and upon such
payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be released from all further liability with respect to such money. 
  
 (e) Subject to applicable laws with respect to escheat of funds, any money held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for two years after such amount has become due and payable shall be discharged from such trust and be paid to the Issuer on Issuer Order; and the Noteholder thereof shall thereafter, as
an unsecured general creditor, look only to the Issuer for payment thereof (but only to the extent of the amounts so paid to the Issuer), and all liability of the Indenture Trustee or such Paying Agent with respect to such trust money shall
thereupon cease; provided, however, that the Indenture Trustee or such Paying Agent, before being required to make any such repayment, shall give notice to the remaining Noteholders to surrender their notes for cancellation and notice
that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such notice, any unclaimed balance of such money then remaining will be repaid to the Issuer. The Indenture Trustee or
Paying Agent shall also adopt and employ, at the expense and direction of the Issuer, 

  

 17 

 
any other reasonable means of notification of such repayment (including, but not limited to, mailing notice of such repayment to Noteholders whose Notes have
been called but have not been surrendered for redemption or whose right to or interest in moneys due and payable but not claimed is determinable from the records of the Indenture Trustee or of any Paying Agent, at the last address of record for each
such Noteholder). 
  
 SECTION 3.4 Existence. 
  
 (a) The Issuer will keep in full effect its existence, rights and franchises
as a statutory trust under the laws of the State of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes, organized under the laws of any other state or of the United States of America, in which case the Issuer will keep in
full effect its existence, rights and franchises under the laws of such other jurisdiction) and will obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Indenture, the Notes, the Trust Fund and each other instrument or agreement included in the Trust Fund. 
  
 (b) Any successor to the Owner Trustee appointed pursuant to Section 9.2 of the Owner Trust Agreement shall be the successor Owner Trustee under this
Indenture without the execution or filing of any paper, instrument or further act to be done on the part of the parties hereto. 
  
 (c) Upon any consolidation or merger of or other succession to the Owner Trustee, the Person succeeding to the Owner Trustee under the Owner Trust
Agreement may exercise every right and power of the Owner Trustee under this Indenture with the same effect as if such Person had been named as the Owner Trustee herein. 
  
 SECTION 3.5 Protection of Trust Fund. 
  
 (a) The Issuer will from time to time execute, deliver and file all such supplements and amendments hereto and all such
financing statements, continuation statements, instruments of further assurance and other instruments, and will take such other action necessary or advisable to: 
  
 (i) maintain or preserve the lien and security interest (and the priority thereof) of this Indenture or
carry out more effectively the purposes hereof; 
  
 (ii) perfect, publish notice of or protect the validity of any Grant made or to be made by this Indenture; 
  
 (iii) enforce any rights with respect to the Trust Fund; or 
  
 (iv) preserve and defend title to the Trust Fund and the rights of the Indenture Trustee and the Noteholders
in such Trust Fund against the claims of all persons and parties. 
  
 (b) The Issuer hereby designates the Indenture Trustee as its agent and attorneys-in-fact to execute any financing statement, continuation statement or other instrument required to be 
  

 18 

 
executed pursuant to this Section 3.5 and hereby authorizes either of them to file in any filing office any financing statement, amendment to financing
statement, or continuation statement required to be executed pursuant to this Section 3.5. 
  
 SECTION 3.6 Opinions as to Trust Fund. 
  
 On the Closing Date, the Issuer shall furnish to the Securities Administrator and the Indenture Trustee an Opinion of Counsel to the effect that either, in the opinion of such counsel, such action has been taken with
respect to the recording and filing of this Indenture, any indentures supplemental hereto, and any other requisite documents, and with respect to the execution and filing of any financing statements and continuation statements, as are necessary to
make effective the lien and security interest of this Indenture, or stating that, in the opinion of such counsel, no such action is necessary to make such lien and security interest effective. 
  
 SECTION 3.7 Performance of Obligations. 
  
 (a) The Issuer will not take any action and will use commercially reasonable
efforts not to permit any action to be taken by others that would release any Person from any of such Person’s material covenants or obligations under any instrument or agreement included in the Trust Fund or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any such instrument or agreement, except as expressly provided in this Indenture, the Transfer and Servicing Agreement or any other Operative
Agreement. 
  
 (b) The Issuer may contract with other Persons to
assist it in performing its duties under this Indenture, and any performance of such duties by a Person identified to the Indenture Trustee in an Officer’s Certificate of the Issuer shall be deemed to be action taken by the Issuer. 

 
 (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Indenture, the Operative Agreements and in the instruments and agreements included in the Trust Fund, including but not limited to filing or causing to be filed all financing statements and continuation statements
required to be filed by the terms of this Indenture, the Transfer and Servicing Agreement and any other Operative Agreement in accordance with and within the time periods provided for herein and therein. 
  
 (d) If a Responsible Officer of the Owner Trustee shall have written notice
or actual knowledge of the occurrence of an Indenture Event of Default under the Transfer and Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee and each Rating Agency thereof. 
  
 (e) As promptly as possible after the giving of notice of termination to the
Master Servicer of the Master Servicer’s rights and powers pursuant to Section 9.1(a) of the Transfer and Servicing Agreement, the Indenture Trustee shall proceed in accordance with Section 9.1 and 9.2 of the Transfer and Servicing Agreement.

  

 19 

 (f) The Issuer agrees: 
  
 (i) that it will not, without the prior written consent of the Indenture Trustee or the Noteholders
representing at least a majority in Outstanding Balance of the Notes affected thereby, amend, modify, waive, supplement, terminate or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender of, the terms of
any Trust Fund or the Operative Agreements (except to the extent otherwise provided in any such Operative Agreement), or waive timely performance or observance by the Master Servicer, the Securities Administrator, the Subservicer, the Originator or
the Depositor of its respective duties under the Transfer and Servicing Agreement; and 
  
 (ii) that any such amendment shall not (A) increase or reduce in any manner the amount of, or accelerate or delay the timing of, payments
that are required to be made for the benefit of the Noteholders or (B) reduce the aforesaid percentage of the Notes that is required to consent to any such amendment, without the consent of the Noteholders of all the Outstanding Notes affected
thereby. 
  
 If any such amendment, modification, supplement or
waiver shall be so consented to by the Indenture Trustee or such Noteholders, the Issuer agrees to execute and deliver, in its own name and at its own expense, such agreements, instruments, consents and other documents as the Indenture Trustee may
deem necessary or appropriate in the circumstances. 
  
 SECTION
3.8 Negative Covenants. 
  
 So long as any Notes are
Outstanding, the Issuer shall not: 
  
 (a) except as expressly
permitted by this Indenture or the Transfer and Servicing Agreement, sell, transfer, exchange or otherwise dispose of any of the properties or assets of the Issuer, including those included in the Trust Fund, unless directed to do so by the
Indenture Trustee; 
  
 (b) claim any credit on, or make any
deduction from the principal or interest payable in respect of, the Notes (other than amounts properly withheld from such payments under the Code) or assert any claim against any present or former Noteholder by reason of the payment of the taxes
levied or assessed upon any part of the Trust Fund; 
  
 (c) (i)
permit the validity or effectiveness of this Indenture to be impaired, or permit the lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants or obligations
with respect to the Notes under this Indenture except as may be expressly permitted hereby, (ii) permit any lien, charge, excise, claim, security interest, mortgage or other encumbrance (other than the lien of this Indenture) to be created on or
extend to or otherwise arise upon or burden the Trust Fund or any part thereof or any interest therein or the proceeds thereof (other than tax liens, mechanics’ liens and other liens that arise by operation of law, in each case with respect to
any Trust Fund and arising solely as a result of an action or omission of a mortgagor or as otherwise permitted in the Transfer and Servicing Agreement) or (iii) permit the lien of this Indenture not to constitute a valid first priority (other than
with respect to any such tax, mechanics’ or other lien) or as otherwise permitted in the Transfer and Servicing Agreement) security interest in the Trust Fund; 
  

 20 

 (d) dissolve or liquidate in whole or in part or merge or consolidate with any other Person; or

  
 (e) except with the prior written consent of the Noteholders,
take any action described in Section 5.6 of the Owner Trust Agreement. 
  
 SECTION 3.9 Annual Statement as to Compliance. 
  
 The Issuer will deliver to the Indenture Trustee, within 120 days after the end of each fiscal year of the Issuer (commencing with the fiscal year 200_), an Officer’s Certificate stating, as to the Authorized Officer signing such
Officer’s Certificate, that: 
  
 (i) a
review of the activities of the Issuer during such year and of its performance under this Indenture has been made under such Authorized Officer’s supervision; and 
  
 (ii) to the best of such Authorized Officer’s knowledge, based on such review, the Issuer has complied
with all conditions and covenants under this Indenture throughout such year or, if there has been a default in its compliance with any such condition or covenant, specifying each such default known to such Authorized Officer and the nature and
status thereof. 
  
 SECTION 3.10 No Other Business.

  
 The Issuer shall not engage in any business other than
financing, purchasing, owning, selling and managing the Trust Fund in the manner contemplated by this Indenture and the Operative Agreements and activities incidental thereto. 
  
 SECTION 3.11 No Borrowing. 
  

The Issuer shall not issue, incur, assume, guarantee or otherwise become liable, directly or indirectly, for any indebtedness other than the Notes.

  
 SECTION 3.12 Guarantees, Loans, Advances and Other
Liabilities. 
  
 Except as contemplated by the Transfer and
Servicing Agreement or this Indenture, the Issuer shall not make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring another’s payment or performance on any obligation or
capability of so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or agree contingently to do so) any
stock, obligations, assets or securities of, or any other interest in, or make any capital contribution to, any other Person. 
  
 SECTION 3.13 Capital Expenditures. 
  
 The Issuer shall not make any expenditure (by long-term or operating lease or otherwise) for capital assets (either realty or personalty). 
  

 21 

 SECTION 3.14 Removal of Master Servicer. 
  
 So long as any Notes or the Ownership Certificate are Outstanding, the Issuer
shall not remove the Master Servicer without cause unless the Issuer has received a letter from each Rating Agency to the effect that such removal will not cause the then-current ratings on the Notes to be downgraded, reduced or qualified.

  
 SECTION 3.15 Restricted Payments. 
  
 The Issuer shall not, directly or indirectly, (a) pay any dividend or make
any payment (by reduction of capital or otherwise), whether in cash, property, securities or a combination thereof, to the Owner Trustee or any Noteholder of a beneficial interest in the Issuer or otherwise with respect to any Ownership Certificate
or equity interest or security in or of the Issuer, (b) redeem, purchase, retire or otherwise acquire for value any such Ownership Certificate or equity interest or security or (c) set aside or otherwise segregate any amounts for any such purpose;
provided, however, the Issuer may make, or cause to be made, payments and distributions as contemplated by, and to the extent funds are available for such purpose under, the Transfer and Servicing Agreement, this Indenture or the Owner Trust
Agreement. The Issuer will not, directly or indirectly, make payments to or from the Collection Account except in accordance with this Indenture and the Operative Agreements. 
  
 SECTION 3.16 Notice of Events of Default. 
  
 The Issuer shall promptly, and in no event more than three Business Days following such event, give the Indenture Trustee,
the Securities Administrator and each Rating Agency written notice of each Indenture Event of Default hereunder, and each default on the part of the Master Servicer or the Depositor of its obligations under the Transfer and Servicing Agreement, to
the extent a Responsible Officer of the Owner Trustee shall have written notice or actual knowledge thereof. 
  
 SECTION 3.17 Further Instruments and Acts. 
  
 Upon request of the Indenture Trustee or the Securities Administrator, the Issuer will execute and deliver such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 
  
 SECTION 3.18 Covenants of the Issuer. 
  
 All covenants of the Issuer in this Indenture are covenants of the Issuer and are not covenants of the Owner Trustee in its individual capacity. The Owner
Trustee is, and any successor Owner Trustee under the Owner Trust Agreement will be, entering into this Indenture on behalf of the Issuer solely as Owner Trustee under the Owner Trust Agreement and not in its respective individual capacity, and in
no case whatsoever shall the Owner Trustee or any such successor Owner Trustee be personally liable on, or for any loss in respect of, any of the statements, representations, warranties or obligations of the Issuer hereunder, as to all of which the
parties hereto agree to look solely to the property of the Issuer. 
  

 22 

 SECTION 3.19 Representations and Warranties of the Issuer. 
  
 (a) With respect to the Mortgage Notes, the Issuer represents and warrants
that: 
  
 (i) This Indenture creates a valid and
continuing security interest (as defined in the UCC) in the Mortgage Notes in favor of the Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such against creditors of and purchasers from the Issuer;

  
 (ii) The Mortgage Notes constitute
“instruments” within the meaning of the applicable UCC; 
  
 (iii) The Issuer owns and has good title to the Mortgage Notes free and clear of any lien, claim or encumbrance of any Person; 
  

(iv) The Issuer has received all consents and approvals required by the terms of the Mortgage Notes to the pledge of the Mortgage Notes
hereunder to the Indenture Trustee; 
  
 (v) All
original executed copies of each Mortgage Note have been or will be delivered to the Indenture Trustee (or the Custodian), as set forth in the Transfer and Servicing Agreement; 
  
 (vi) The Issuer has received a written acknowledgement from the Indenture Trustee (or the Custodian) that it
is holding the Mortgage Notes solely on behalf and for the benefit of the Indenture Trustee; 
  
 (vii) Other than the security interest granted to the Indenture Trustee pursuant to this Indenture, the Issuer has not pledged, assigned,
sold, granted a security interest in, or otherwise conveyed any of the Mortgage Notes. The Issuer has not authorized the filing of and is not aware of any current or terminated financing statements against the Issuer that include a description of
the collateral covering the Mortgage Notes, other than a financing statement relating to the security interest granted to the Indenture Trustee hereunder. The Issuer is not aware of any judgment or tax lien filings against the Issuer; and

  
 (viii) None of the Mortgage Notes has any
marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Indenture Trustee. 
  
 (b) The representations and warranties set forth in this Section 3.19 shall survive the Closing Date and shall not be waived. 
  

 23 

 
ARTICLE IV 
  
 SATISFACTION AND DISCHARGE 
  
 SECTION 4.1 Satisfaction and Discharge of Indenture. 
  
 This Indenture shall cease to be of further effect with respect to the Notes, except as to (a) rights of registration of transfer and exchange, (b) substitution of mutilated, destroyed, lost or stolen Notes, (c)
rights of Noteholders to receive payments of principal thereof and interest thereon, (d) the rights, obligations and immunities of the Indenture Trustee and the Securities Administrator (including in respect of its other capacities) under the
Transfer and Servicing Agreement and hereunder (including the rights of the Indenture Trustee under Section 6.7 and the obligations of the Indenture Trustee under Sections 3.3 and 4.2) and (e) the rights of Noteholders as beneficiaries hereof with
respect to the property so deposited with the Securities Administrator payable to all or any of them, and the Indenture Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge
of this Indenture with respect to the Notes, when: 
  
 (a) the
Transfer and Servicing Agreement has been terminated pursuant to Section 9.1 thereof; 
  
 (b) either: 
  
 (A) all Notes theretofore authenticated and delivered (other than (1) Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.5 and (2) Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to the Issuer or discharged from such trust, as provided in Section 3.3) have been delivered to the Indenture Trustee for cancellation; or 
  
 (B) all Notes not theretofore delivered to the Note
Registrar for cancellation 
  
 (1) have become
due and payable, 
  
 (2) will become due and
payable at the applicable Maturity Date within one year, or 
  
 (3) are to be called for redemption within one year under arrangements satisfactory to the Securities Administrator for the giving of notice of redemption by the Securities Administrator in the name and at the expense
of the Issuer, 
  
 and the Issuer, in the case of (1), (2) or (3)
above, has irrevocably deposited or caused to be irrevocably deposited with the Securities Administrator cash or direct obligations of or obligations guaranteed by the United States of America (which will mature 
  

 24 

 
prior to the date such amounts are payable) in trust for such purpose, in an amount sufficient to pay and discharge the entire indebtedness on such Notes not
theretofore delivered to the Securities Administrator for cancellation when due to the Maturity Date or Redemption Date (if the Notes are called for redemption pursuant to Section 10.1 hereof), as the case may be; 
  
 (c) the Issuer has paid or caused to be paid all other sums payable hereunder
by the Issuer; 
  
 (d) the Issuer has delivered to the Indenture
Trustee and the Securities Administrator an Officer’s Certificate and an Opinion of Counsel at the Issuer’s expense, and, if required by the TIA, the Indenture Trustee or the Securities Administrator, an Independent Certificate from a firm
of Accountants, each meeting the applicable requirements of Section 11.1 hereof and, subject to Section 11.2 hereof, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture with
respect to the Notes have been complied with; and 
  
 (e) the
Issuer has delivered to each Rating Agency notice of such satisfaction and discharge. 
  
 SECTION 4.2 Application of Trust Money. 
  
 All moneys deposited with the Securities Administrator pursuant to Sections 3.3 and 4.1 shall be held in trust and applied by the Securities Administrator in accordance with the provisions of the Notes, the Transfer
and Servicing Agreement and this Indenture to the payment, either directly or through any Paying Agent, as the Securities Administrator may determine, to the Noteholders of the particular Notes for the payment or redemption of which such moneys have
been deposited with the Securities Administrator, of all sums due and to become due thereon for principal and interest. Such moneys need not be segregated from other funds except to the extent required herein or in the Transfer and Servicing
Agreement or required by law. 
  
 SECTION 4.3 Reserved.

  
 SECTION 4.4 Trust Money Received by Indenture Trustee.

  
 If the Indenture Trustee receives any moneys in respect of the
Trust Fund (other than with respect to any amounts in respect of any payments or reimbursements of fees, expenses or indemnity amounts properly owing to the Indenture Trustee pursuant to the terms of any of the Operative Agreements), the Indenture
Trustee shall remit promptly such funds to the Securities Administrator. 
  

 25 

 ARTICLE V 
  

EVENTS OF DEFAULT; REMEDIES 
  
 SECTION 5.1 Indenture Events of Default. 
  
 An “Indenture Event of Default” shall be deemed to occur upon any one of the following events (whatever the reason for such Indenture
Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 

 
 (a) subject to Section 2.7, default in the payment of any Current Interest
on the Notes when the same becomes due and payable under Section 7.7 of the Transfer and Servicing Agreement, and such default continues for a period of five days; 
  
 (b) failure to pay the entire principal of any Note when the same becomes due and payable on a Payment Date or on the
applicable Maturity Date; 
  
 (c) failure to observe or perform
any covenant or agreement of the Issuer made in this Indenture (other than a covenant or agreement, a default in the observance or performance of which is elsewhere in this Section specifically dealt with), or any representation or warranty of the
Issuer made in this Indenture or in any certificate or other writing delivered pursuant hereto or in connection herewith proving to have been incorrect as of the time when the same shall have been made, and such default shall continue or not be
cured, or the circumstance or condition in respect of which such misrepresentation or warranty was incorrect shall not have been eliminated or otherwise cured, for a period of 30 days after there shall have been given, by registered or certified
mail, to the Issuer by the Indenture Trustee or to the Issuer and the Indenture Trustee by Noteholders representing at least 25% of the Outstanding Balance of the Notes, a written notice specifying such default or incorrect representation or
warranty and requiring it to be remedied and stating that such notice is a notice of Indenture Default hereunder; 
  
 (d) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of the Issuer or any substantial part of the
Trust Fund in an involuntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of
the Issuer or for any substantial part of the Trust Fund, or ordering the winding-up or liquidation of the Issuer’s affairs, and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; 
  
 (e) the Trust becomes subject to federal income tax at the entity level as a
taxable mortgage pool or otherwise; or 
  
 (f) the commencement by
the Issuer of a voluntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by the Issuer to the entry of an order for relief in an involuntary case under any such law,
or the consent by the Issuer to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer or for any substantial part of the 
  

 26 

 Trust Fund, or the making by the Issuer of any general assignment for the benefit of creditors, or the failure by the
Issuer generally to pay its debts as such debts become due, or the taking of any action by the Issuer in furtherance of any of the foregoing. 
  
 The Issuer shall deliver to the Indenture Trustee, within five days after the occurrence thereof, written notice in the form of an Officer’s
Certificate of any event which with the giving of notice and the lapse of time would become an Indenture Event of Default under clause (c), its status and what action the Issuer is taking or proposes to take with respect thereto. 
  
 SECTION 5.2 Acceleration of Maturity; Rescission and Annulment.

  
 (a) If an Indenture Event of Default should occur and be
continuing, then and in every such case the Indenture Trustee may, or shall, at the direction of Noteholders representing not less than a majority of the Outstanding Balance of the Priority Class Notes, declare all the Notes to be immediately due
and payable, by a notice in writing to the Issuer (and to the Indenture Trustee if given by Noteholders), and upon any such declaration the unpaid principal amount of such Notes, together with accrued and unpaid interest on the Notes through the
date of acceleration, shall become immediately due and payable. 
  
 (b) At any time after such declaration of acceleration of maturity has been made and before a judgment or decree for payment of the money due has been obtained by the Indenture Trustee as provided hereinafter in this Article V,
Noteholders representing a majority of the Outstanding Balance of the Priority Class Notes, by written notice to the Issuer and the Indenture Trustee, may rescind and annul such declaration and its consequences if: 
  
 (i) the Issuer has paid or deposited with the Securities
Administrator a sum sufficient to pay: 
  
 (A)
all payments of principal of and interest on all affected Priority Class Notes and all other amounts that would then be due hereunder or upon such Notes if the Indenture Event of Default giving rise to such acceleration had not occurred; and

  
 (B) all sums paid or advanced by the
Indenture Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel; and 
  
 (ii) all Indenture Events of Default, other than the nonpayment of the principal of the Notes that has become due solely by such
acceleration, have been cured or waived as provided in Section 5.12. 
  
 No such rescission shall affect any subsequent default or impair any right consequent thereto. 
  
 The Noteholders of Non-Priority Class Notes shall have no right to exercise any Noteholders’ rights referred to in this Article V until such Class
becomes a Priority Class of Notes, except to the extent expressly provided herein. 
  

 27 

 SECTION 5.3 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee. 

 
 (a) The Issuer covenants that if (i) default is made in the payment of any
Current Interest on any Note when the same becomes due and payable, and such default continues for a period of five days, or (ii) default is made in the payment of the principal of any Note when the same becomes due and payable on the applicable
Maturity Date, the Issuer will, upon demand of the Indenture Trustee, pay to it, for the benefit of the Noteholders, the whole amount then due and payable on such Notes for principal and interest, with interest on the overdue principal and, to the
extent payment at such rate of interest shall be legally enforceable, on overdue installments of interest at the rate borne by the Notes and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel. 
  
 (b) In case the Issuer shall fail forthwith to pay such amounts upon such demand, the Indenture Trustee, in its own name and as trustee of an express
trust, may institute a Proceeding for the collection of the sums so due and unpaid, and may prosecute such Proceeding to judgment or final decree, and may enforce the same against the Issuer upon such Notes and collect in the manner provided by law
out of the property of the Issuer upon such Notes, wherever situated, the moneys adjudged or decreed to be payable. 
  
 (c) If an Indenture Event of Default occurs and is continuing, the Indenture Trustee may, in its discretion, or shall, at the direction of the Noteholders
of Priority Class Notes representing not less than a majority of the Outstanding Balance thereof, as more particularly provided in Section 5.4, proceed to protect and enforce its rights and the rights of the Noteholders, by such appropriate
Proceedings as the Indenture Trustee shall deem most effective to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the Indenture Trustee by this Indenture or by law. 
  
 (d) In case there shall be pending, relative to the Issuer or any other obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust Fund, Proceedings under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, or liquidator,
sequestrator or similar official shall have been appointed for or taken possession of the Issuer or its property or such other obligor or Person, or in case of any other comparable Proceedings relative to the Issuer or other obligor upon the Notes,
or to the creditors or property of the Issuer or such other obligor, the Indenture Trustee, irrespective of whether the principal of any Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of
whether the Indenture Trustee shall have made any demand pursuant to the provisions of this Section, shall be entitled and empowered, by intervention in such Proceedings or otherwise: 
  
 (i) to file and prove a claim or claims for the whole amount of principal and interest owing and unpaid in
respect of the Notes and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee (including any claim for reasonable compensation to the Indenture 
  

 28 

 
Trustee and each predecessor Indenture Trustee, and their respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities
incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee, except as a result of negligence or bad faith) and of the Noteholders allowed in such Proceedings; 
  
 (ii) unless prohibited by applicable law and regulations, to
vote on behalf of the Noteholders in any election of a trustee, a standby trustee or Person performing similar functions in any such Proceedings; 
  
 (iii) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute all amounts received
with respect to the claims of the Noteholders and of the Indenture Trustee on their behalf; and 
  
 (iv) to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the
Indenture Trustee or the Noteholders allowed in any Proceedings relative to the Issuer, its creditors and its property; 
  
 and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is hereby authorized by each of such Noteholders to make payments to the
Indenture Trustee. In the event that the Indenture Trustee shall consent to the making of payments directly to such Noteholders, any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is authorized to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their respective agents, attorneys and counsel, and all other expenses and liabilities
incurred by it or its agents, and all advances made by the Indenture Trustee and each predecessor Indenture Trustee except as a result of negligence or bad faith. 
  
 (e) Nothing herein contained shall be deemed to authorize the Indenture Trustee to authorize or consent to or vote for or
accept or adopt on behalf of any Noteholder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Noteholder thereof or to authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar Person. 
  
 (f) All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other Proceedings relative thereto, and any such action or Proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an express trust, and
any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their respective agents and attorneys, shall be for the ratable benefit of the
Noteholders. 
  
 (g) In any Proceedings brought by the Indenture
Trustee (and also any Proceedings involving the interpretation of any provision of this Indenture to which the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all Noteholders, and it shall not be necessary to
make any Noteholder a party to any such Proceedings. 
  

 29 

 SECTION 5.4 Remedies; Priorities. 
  
 (a) If an Indenture Event of Default shall have occurred and be continuing, the Indenture Trustee may, and at the direction
of the Noteholders of Priority Class Notes representing a majority of the Outstanding Balance thereof shall, do one or more of the following (subject to Section 5.5): 
  
 (i) institute Proceedings in its own name and as trustee of an express trust for the collection of all
amounts then payable on the Notes or under this Indenture with respect thereto, whether by declaration or otherwise, enforce any judgment obtained and collect from the Issuer and any other obligor upon such Notes moneys adjudged due; 
  
 (ii) institute Proceedings from time to time for the
complete or partial foreclosure of this Indenture with respect to the Trust Fund; 
  
 (iii) exercise any remedies of a secured party under the UCC and take any other appropriate action to protect and enforce the rights and
remedies of the Indenture Trustee and the Holders of the Notes; and 
  
 (iv) sell the Trust Fund or any portion thereof or rights or interest therein, at one or more public or private sales called and conducted in any manner permitted by law; 
  
 provided, however, that the Indenture Trustee may not sell or otherwise liquidate any
Trust Fund following an Indenture Event of Default, other than an Indenture Event of Default described in Section 5.1(a) or 5.1(b), unless (A) the proceeds of such sale or liquidation distributable to the Noteholders are sufficient to discharge in
full all amounts then due and unpaid upon such Notes for principal and interest or (B) the Indenture Trustee determines that the Trust Fund will not continue to provide sufficient funds for the payment of principal of and interest on the Notes as
they would have become due if the Notes had not been declared due and payable, and the Indenture Trustee obtains the consent of Noteholders evidencing 66-2/3% of the Outstanding Balance of the Notes. In determining such sufficiency or insufficiency
with respect to clauses (A) and (B), the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Trust Fund for such purpose. 
  
 (b) If the
Indenture Trustee collects any money or property pursuant to this Article V, such money or property shall be distributed in accordance with Section 7.7(f) of the Transfer and Servicing Agreement. 
  
 SECTION 5.5 Optional Preservation of the Trust Fund. 
  
 If the Notes have been declared to be due and payable under Section 5.2
following an Indenture Event of Default and such declaration and its consequences have not been rescinded and annulled, the Indenture Trustee may elect to maintain possession of the Trust Fund. It is the desire of the parties hereto and the
Noteholders that there be at all times sufficient funds for the 
  

 30 

 
payment of principal of and interest on the Notes, and the Indenture Trustee shall take such desire into account when determining whether or not to maintain
possession of the Trust Fund. In determining whether to maintain possession of the Trust Fund, the Indenture Trustee may, but need not, obtain and rely upon an opinion (at the expense of the Issuer) of an Independent investment banking or accounting
firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Trust Fund for such purpose. 
  
 SECTION 5.6 Limitation of Suits. 
  
 (a) Other than as otherwise expressly provided herein in the case of an Indenture Event of Default, no Noteholder shall have any right to institute any
Proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless: 
  

(i) such Noteholder has previously given written notice to the Indenture Trustee of a continuing Indenture Event of Default;

  
 (ii) Noteholders evidencing not less than 25%
of the Outstanding Balance of the Notes have made written request to the Indenture Trustee to institute such Proceeding in respect of such Indenture Event of Default in its own name as Indenture Trustee hereunder; 
  
 (iii) such Noteholder or Noteholders have offered to the
Indenture Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in complying with such request; 
  
 (iv) the Indenture Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute such
Proceedings; and 
  
 (v) no direction
inconsistent with such written request has been given to the Indenture Trustee during such 60-day period by Noteholders evidencing of a majority of the Outstanding Balance of the Notes. 
  
 (b) It is understood and intended that no one or more Noteholders shall have any right in any manner whatever by virtue of,
or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Noteholders or to obtain or to seek to obtain priority or preference over any other Noteholders or to enforce any right under this Indenture,
except in the manner herein provided. 
  
 (c) In the event the
Indenture Trustee shall receive conflicting or inconsistent requests and indemnity from two or more groups of Noteholders, each representing less than a majority of the Outstanding Balance of the Notes, the Indenture Trustee in its sole discretion
may determine what action, if any, shall be taken, notwithstanding any other provisions of this Indenture. 
  

 31 

 SECTION 5.7 Unconditional Rights of Noteholders To Receive Principal and Interest. 
  
 Notwithstanding any other provisions in this Indenture, any Noteholder shall
have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Note on or after the respective due dates thereof expressed in such Note or in this Indenture (or, in the case of redemption,
on or after the Redemption Date) and to institute suit for the enforcement of any such payment, and such right shall not be impaired without the consent of such Noteholder. 
  
 SECTION 5.8 Restoration of Rights and Remedies. 
  
 If the Indenture Trustee or any Noteholder has instituted any Proceeding to enforce any right or remedy under this Indenture
and such Proceeding has been discontinued or abandoned for any reason or has been determined adversely to the Indenture Trustee or to such Noteholder, then and in every such case the Issuer, the Indenture Trustee and the Noteholders shall, subject
to any determination in such Proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Indenture Trustee and the Noteholders shall continue as though no such Proceeding had
been instituted. 
  
 SECTION 5.9 Rights and Remedies
Cumulative. 
  
 No right or remedy herein conferred upon or
reserved to the Indenture Trustee or to the Noteholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

  
 SECTION 5.10 Delay or Omission Not a Waiver.

  
 No delay or omission of the Indenture Trustee or any
Noteholder to exercise any right or remedy accruing upon any Indenture Default or Indenture Event of Default shall impair any such right or remedy or constitute a waiver of any such Indenture Default or Indenture Event of Default or an acquiescence
therein. Every right and remedy given by this Article V or by law to the Indenture Trustee or to the Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee or by the Noteholders, as the case
may be. 
  
 SECTION 5.11 Control by Noteholders.

  
 (a) Except as otherwise provided in Section 5.2, Noteholders
evidencing of a majority of the Outstanding Balance of the Notes shall have the right to direct the time, method and place of conducting any Proceeding for any remedy available to the Indenture Trustee with respect to the Notes or exercising any
trust or power conferred on the Indenture Trustee; provided that: 
  
 (i) such direction shall not be in conflict with any rule of law or with this Indenture; 
  

 32 

 (ii) subject to the express terms of Section 5.4, any direction to the Indenture Trustee
to sell or liquidate the Trust Fund shall be by Noteholders representing not less than 66-2/3% of the Outstanding Balance of the Notes; 
  
 (iii) if the conditions set forth in Section 5.5 have been satisfied and the Indenture Trustee elects to retain the Trust Fund pursuant to
such Section, then any direction to the Indenture Trustee by Noteholders representing less than 66-2/3% of the Outstanding Balance of the Notes to sell or liquidate the Trust Fund shall be of no force and effect; and 
  
 (iv) the Indenture Trustee may take any other action deemed
proper by the Indenture Trustee that is not inconsistent with such direction. 
  
 (b) Notwithstanding the rights of the Noteholders set forth in Section 5.11(a) subject to Section 6.1(h) the Indenture Trustee need not take any action that it determines might involve it in liability or might
materially adversely affect the rights of any Noteholders not consenting to such action. 
  
 SECTION 5.12 Waiver of Past Defaults. 
  
 Prior to the declaration of the acceleration of the maturity of the Notes as provided in Section 5.2, Noteholders evidencing of not less than a majority of the Outstanding Balance of the Notes may waive, in writing,
any past Indenture Default or Indenture Event of Default and its consequences except an Indenture Default (a) in payment of principal of or interest on any of the Notes or (b) in respect of a covenant or provision hereof which cannot be modified or
amended without the consent of each Noteholder. In the case of any such waiver, the Issuer, the Indenture Trustee and the Noteholders shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to
any subsequent or other Indenture Default or impair any right consequent thereto. 
  
 Upon any such waiver, such Indenture Default shall cease to exist and be deemed to have been cured and not to have occurred, and any Indenture Event of Default arising therefrom shall be deemed to have been cured and
not to have occurred, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Indenture Default or Indenture Event of Default or impair any right consequent thereto. 
  
 SECTION 5.13 Undertaking for Costs. 
  
 All parties to this Indenture agree, and each Noteholder by such
Noteholder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Indenture Trustee for any
action taken, suffered or omitted by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant. The provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholder or group of Noteholders, in each case holding in the aggregate more than 10% of the Outstanding Balance of 

  

 33 

 
the Notes or (c) any suit instituted by any Noteholder for the enforcement of the payment of principal of or interest on any Note on or after the respective
due dates expressed in such Note and in this Indenture (or, in the case of redemption, on or after the Redemption Date). 
  
 SECTION 5.14 Waiver of Stay or Extension Laws. 
  
 The Issuer covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead or in any manner whatsoever claim or
take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Indenture Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted. 
  
 SECTION 5.15 Action on
Notes. 
  
 The Indenture Trustee’s right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture. Neither the lien of this Indenture nor any rights or remedies of the
Indenture Trustee or the Noteholders shall be impaired by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any execution under such judgment upon any portion of the Trust Fund or upon any of the assets of
the Issuer. Any money or property collected by the Indenture Trustee shall be applied in accordance with Section 5.4. 
  
 SECTION 5.16 Performance and Enforcement of Certain Obligations. 
  
 (a) Promptly following a request from the Indenture Trustee to do so, the Issuer shall take all such lawful action as the
Indenture Trustee may request to compel or secure the performance and observance by either Seller, the Originator, the Depositor, the Master Servicer, the Subservicer, the Securities Administrator as applicable, of each of their obligations to the
Issuer under or in connection with the Transfer and Servicing Agreement, and to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer under or in connection with the Transfer and Servicing Agreement to the
extent and in the manner directed by the Indenture Trustee, including the transmission of notices of default on the part of the Seller, the Depositor, the Originator, the Subservicer, the Securities Administrator, the Master Servicer, as applicable,
under the Transfer and Servicing Agreement and the institution of legal or administrative actions or proceedings to compel or secure performance by either Seller, the Originator, the Depositor, the Subservicer, the Securities Administrator, the
Master Servicer of each of their applicable obligations under Transfer and Servicing Agreement. 
  
 (b) If an Indenture Event of Default has occurred and is continuing, the Indenture Trustee may, and at the direction (which direction shall be in writing
or by telephone (confirmed in writing promptly thereafter)) of Noteholders evidencing a majority of the Outstanding Balance of the Priority Class Notes shall, exercise all rights, remedies, powers, privileges and claims of the Issuer against either
Seller the Depositor, the Originator, the Master Servicer, the Subservicer, the Securities Administrator under or in connection with the Transfer and Servicing 
  

 34 

 Agreement, including the right or power to take any action to compel or secure performance or observance by either
Seller, the Depositor, the Subservicer, the Securities Administrator or the Master Servicer, of each of their applicable obligations to the Issuer thereunder and to give any consent, request, notice, direction, approval, extension or waiver under
the Transfer and Servicing Agreement, and any right of the Issuer to take such action shall be suspended. 
  
 ARTICLE VI 
  
 THE INDENTURE TRUSTEE 
  
 SECTION 6.1 Duties of
Indenture Trustee. 
  
 (a) If an Indenture Event of Default
has occurred and is continuing, the Indenture Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in
the conduct of such person’s own affairs. 
  
 (b) Except
during the continuance of an Indenture Event of Default: 
  
 (i) the Indenture Trustee undertakes to perform only such duties as are specifically set forth in this Indenture and shall not be liable except for the performance of such duties and obligations as are specifically
set forth in this Indenture; and no implied covenants or obligations shall be read into this Indenture against the Indenture Trustee; and 
  
 (ii) in the absence of bad faith on its part, the Indenture Trustee may conclusively rely upon certificates or opinions furnished to the
Indenture Trustee as to the truth of the statements and the correctness of the opinions expressed therein; however, the Indenture Trustee shall examine the certificates and opinions to determine whether or not they conform on their face to the
requirements of this Indenture. 
  
 (c) The Indenture Trustee may
not be relieved from liability for its own negligent action, its own negligent failure to act, its own willful misconduct or its own bad faith, except that: 
  
 (i) this paragraph does not limit the effect of paragraph (a) of this Section; 
  
 (ii) the Indenture Trustee shall not be liable for any error
of judgment made in good faith by a Responsible Officer, unless it is proved that the Indenture Trustee was negligent in ascertaining the pertinent facts; 
  
 (iii) the Indenture Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with this
Indenture or upon a direction received by it from the requisite Noteholders pursuant to Article V; and 
  
 (iv) the Indenture Trustee shall not be required to take notice or be deemed to have notice or knowledge of (A) any failure by the Issuer
to comply with its obligations hereunder or in the Operative Agreements or (B) any Indenture Default or Indenture 

  

 35 

 
Event of Default, unless a Responsible Officer of the Indenture Trustee assigned to and working in its corporate trust department obtains actual knowledge of
such Indenture Default or Indenture Event of Default or shall have received written notice thereof. In the absence of such actual knowledge or notice, the Indenture Trustee may conclusively assume that there is no Indenture Default or Indenture
Event of Default. 
  
 (d) Every provision of this Indenture that
in any way relates to the Indenture Trustee is subject to the provisions of this Section. 
  
 (e) The Indenture Trustee shall not be liable for indebtedness evidenced by or arising under any of the Operative Agreements, including principal of or interest on the Notes, or interest on any money received by it
except as the Indenture Trustee may agree in writing with the Issuer. 
  
 (f) Money held in trust by the Indenture Trustee need not be segregated from other funds except to the extent required by law or the terms of this Indenture or the Transfer and Servicing Agreement. 
  
 (g) No provision of this Indenture shall require the Indenture Trustee to
expend, advance 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 it shall have reasonable grounds to believe that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably assured to it; provided, however, that the Indenture Trustee shall not refuse or fail to perform any of its duties hereunder solely as a result of nonpayment
of its normal fees and expenses. 
  
 (h) Every provision of this
Indenture or any Operative Agreement relating to the conduct or affecting the liability of or affording protection to the Indenture Trustee shall be subject to the provisions of this Section 6.1 and Section 6.2 and to the provisions of the TIA.

  
 (i) The Indenture Trustee shall execute and deliver the
Transfer and Servicing Agreement and perform its duties thereunder. 
  
 (j) The Indenture Trustee shall not have any duty or obligation to manage, make any payment with respect to, register, record, sell, dispose of, or otherwise deal with the Trust Fund, or to otherwise take or refrain from taking any action
under, or in connection with, any document contemplated hereby to which the Indenture Trustee is a party, except as expressly provided (i) in accordance with the powers granted to and the authority conferred upon the Indenture Trustee pursuant to
this Indenture or any other Operative Agreement and (ii) in accordance with any document or instruction delivered to the Indenture Trustee pursuant to the terms of this Indenture. No implied duties or obligations shall be read into this Indenture or
any Operative Agreement against the Indenture Trustee. The Indenture Trustee agrees that it will, at the cost and expense of the Issuer, promptly take all action as may be necessary to discharge any liens on any part of the Trust Fund that result
from actions by, or claims against itself (in its individual capacity, and not in the capacity of Indenture Trustee) that are not related to the administration of the Trust Fund. 
  

 36 

 SECTION 6.2 Rights of Indenture Trustee. 
  
 (a) The Indenture Trustee may rely on any document believed by it to be
genuine and to have been signed or presented by the proper person. The Indenture Trustee need not investigate any fact or matter stated in the document. 
  
 (b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel, which shall not be
at the expense of the Indenture Trustee. The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on an Officer’s Certificate or Opinion of Counsel. The right of the Indenture Trustee to
perform any discretionary act enumerated in this Indenture or in any Operative Agreement shall not be construed as a duty and the Indenture Trustee shall not be answerable for other than its negligence or willful misconduct in the performance of
such act. 
  
 (c) The Indenture Trustee may execute any of the
trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys or a custodian or nominee. 
  
 (d) The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, that the Indenture Trustee’s conduct does not constitute willful misconduct, negligence or bad faith. 
  
 (e) The Indenture Trustee may consult with counsel, and any Opinion of Counsel with respect to legal matters relating to this Indenture, any Operative
Agreement and the Notes shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and in accordance with any Opinion of Counsel of such counsel.

  
 (f) In the event that the Indenture Trustee is also acting as
Paying Agent, Note Registrar or Master Servicer hereunder or under any Operative Agreement, the rights and protections afforded to the Indenture Trustee pursuant to this Article VI shall be afforded to such Paying Agent, Note Registrar and Master
Servicer. 
  
 (g) The permissive rights of the Indenture Trustee
enumerated herein shall not be construed as duties. 
  
 SECTION
6.3 Individual Rights of Indenture Trustee. 
  
 (a) The
Indenture Trustee in its individual or any other capacity may become the Noteholder or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with the same rights it would have if it were not Indenture Trustee. Any Paying Agent,
Note Registrar, co-registrar or co-paying agent may do the same with like rights. However, the Indenture Trustee must comply with Section 6.11. 
  
 SECTION 6.4 Indenture Trustee’s Disclaimer. 
  
 (a) The Indenture Trustee shall not be responsible for and makes no representation as to the validity or adequacy of any of the Operative Agreements or
the Notes or the sufficiency of 

  

 37 

 
the Trust Fund. The Indenture Trustee shall not be accountable for the Issuer’s use of the proceeds from the Notes, and it shall not be
responsible for any statement of the Issuer or the Subservicer in this Indenture, any Operative Agreement or in any other document issued in connection with the sale of the Notes or in the Notes other than the Indenture Trustee’s certificate of
authentication. 
  
 SECTION 6.5 Notice of Indenture
Defaults. 
  
 If an Indenture Default occurs and is continuing
and if a Responsible Officer of the Indenture Trustee has actual knowledge thereof, the Indenture Trustee shall give prompt written notice thereof to each Noteholder. 
  
 SECTION 6.6 Reserved. 
  
 SECTION 6.7 Compensation and Indemnity. 
  
 The Indenture Trustee shall be entitled, as compensation for its services, to the Indenture Trustee Fee, as provided in the Transfer and Servicing
Agreement. The Indenture Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Indenture Trustee and any co-trustee shall be reimbursed on behalf of the Issuer from funds in the Collection
Account, as provided in the Transfer and Servicing Agreement, for all reasonable ordinary out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the compensation for its services (as provided in the Transfer and
Servicing Agreement). Reimbursable expenses under this Section shall include the reasonable compensation and expenses, disbursements and advances of the Indenture Trustee’s agents, counsel, accountants and experts. The Issuer shall indemnify
the Indenture Trustee, any co-trustee and their respective employees, directors and agents, as provided in the Transfer and Servicing Agreement, against any and all claim, loss, liability or expense (including attorneys’ fees) incurred by it in
connection with the administration of this trust and the performance of its duties hereunder or under any Operative Agreement. The Indenture Trustee or co-trustee, as applicable, shall notify the Issuer promptly of any claim for which it may seek
indemnity. Failure by the Indenture Trustee or the co-trustee, as applicable, to so notify the Issuer shall not relieve the Issuer of its obligations hereunder. The Issuer shall defend any such claim, and the Indenture Trustee and any co-trustee may
have separate counsel and the fees and expenses of such counsel shall be payable on behalf of the Issuer from funds in the Collection Account. The Issuer shall not be required to reimburse any expense or indemnify against any loss, liability or
expense incurred by the Indenture Trustee or any co-trustee through the Indenture Trustee’s or co-trustee’s, as the case may be, own willful misconduct, negligence or bad faith. 
  
 The Issuer’s obligations to the Indenture Trustee and any co-trustee pursuant to this Section shall survive the
resignation or removal of the Indenture Trustee and the termination or discharge of this Indenture. When the Indenture Trustee or any co-trustee incurs expenses after the occurrence of an Indenture Default specified in Section 5.1(d) or 5.1(e) with
respect to the Issuer, the expenses are intended to constitute expenses of administration under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or similar law. 
  

 38 

 SECTION 6.8 Replacement of Indenture Trustee. 
  
 (a) No resignation or removal of the Indenture Trustee and no appointment of
a successor Indenture Trustee shall become effective until the acceptance of appointment by the successor Indenture Trustee pursuant to this Section. The Indenture Trustee may resign at any time by giving 90 days’ written notice thereof to the
Depositor, the Issuer, each Noteholder and each Rating Agency. The Issuer shall remove the Indenture Trustee if: 
  
 (i) the Indenture Trustee fails to comply with Section 6.11; 
  
 (ii) the Indenture Trustee is adjudged bankrupt or insolvent; 
  
 (iii) a receiver or other public officer takes charge of the
Indenture Trustee or its property; or 
  
 (iv)
the Indenture Trustee otherwise becomes incapable of acting. 
  
 (b) If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of the Indenture Trustee for any reason (the Indenture Trustee in such event being referred to herein as the retiring Indenture Trustee), the Issuer
shall promptly appoint a successor Indenture Trustee that satisfies the eligibility requirements of Section 6.11. 
  
 (c) The resigning or removed Indenture Trustee agrees to cooperate with any successor Indenture Trustee in effecting the termination of the resigning or
removed Indenture Trustee’s responsibilities and rights hereunder and shall promptly provide such successor Indenture Trustee all documents and records reasonably requested by it to enable it to assume the Indenture Trustee’s functions
hereunder. 
  
 (d) A successor Indenture Trustee shall deliver a
written acceptance of its appointment to the retiring Indenture Trustee and to the Issuer. Thereupon the resignation or removal of the retiring Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the rights,
powers and duties of the Indenture Trustee under this Indenture. The successor Indenture Trustee shall mail a notice of its succession to Noteholders. The retiring Indenture Trustee shall promptly transfer all property held by it as Indenture
Trustee to the successor Indenture Trustee. 
  
 (e) If a successor
Indenture Trustee does not take office within 30 days after the retiring Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or Noteholders evidencing a majority in the Outstanding Balance of the Notes may petition
any court of competent jurisdiction for the appointment of a successor Indenture Trustee. 
  
 (f) If the Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition any court of competent jurisdiction for the removal of the Indenture Trustee and the appointment of a successor Indenture
Trustee. 
  

 39 

 SECTION 6.9 Successor Indenture Trustee by Merger. 
  
 If the Indenture Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation without any further act shall be the successor Indenture Trustee;
provided, that such corporation or banking association shall be otherwise qualified and eligible under Section 6.11. The Indenture Trustee shall provide each Rating Agency prior written notice of any such transaction. 
  
 In case at the time such successor or successors by merger, conversion or
consolidation to the Indenture Trustee shall succeed to the trusts created by this Indenture any of the Notes shall have been authenticated but not delivered, any such successor to the Indenture Trustee may adopt the certificate of authentication of
any predecessor trustee and deliver such Notes so authenticated; and in case at that time any of the Notes shall not have been authenticated, any successor to the Indenture Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor to the Indenture Trustee. 
  
 SECTION 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee. 
  
 (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of meeting any legal requirement of any jurisdiction in which any
part of the Trust Fund may at the time be located, the Indenture Trustee shall have the power and may execute and deliver all instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate trustee or separate trustees,
of all or any part of the Trust, and to vest in such Person or Persons, in such capacity and for the benefit of the Noteholders, such title to the Trust Fund, or any part hereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable. No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 6.11 and no
notice to Noteholders of the appointment of any co-trustee or separate trustee shall be required under Section 6.8 hereof. 
  
 (b) 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 Indenture Trustee shall be conferred or imposed upon and exercised or performed by the Indenture 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 Indenture 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 the Indenture 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 Indenture Trustee; 
  

 40 

 (ii) no trustee hereunder shall be personally liable by reason of any act or omission of
any other trustee hereunder; and 
  
 (iii) the
Indenture Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee. 
  
 (c) Any notice, request or other writing given to the Indenture 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 Indenture and the conditions of this Article VI. 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 Indenture Trustee or separately, as may be provided therein, subject to all the provisions of this Indenture,
specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording protection to, the Indenture Trustee. Every such instrument shall be filed with the Indenture Trustee. 
  
 (d) Any separate trustee or co-trustee may at any time constitute the
Indenture 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 Indenture 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 Indenture Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee. 
  
 SECTION 6.11 Eligibility;
Disqualification. 
  
 The Indenture Trustee shall at all
times: 
  
 (a) satisfy the requirements of TIA Section 310(a);

  
 (b) have a combined capital and surplus of at least
$100,000,000 as set forth in its most recently published annual report of condition; 
  
 (c) have a long-term debt rating equivalent to “A” or better by the Rating Agencies or be otherwise acceptable to the Rating Agencies; and 
  
 (d) not be an Affiliate of the Issuer or the Owner Trustee. 
  
 The Indenture Trustee shall comply with TIA Section 310(b), including the optional provision permitted by the second
sentence of TIA Section 310(b)(9); provided, however, that there shall be excluded from the operation of TIA Section 310(b)(1) any indenture or indentures under which other securities of the Issuer are [outstanding] if the requirements
for such exclusion set forth in TIA Section 310(b)(1) are met. 
  
 SECTION 6.12 Representations and Warranties. 
  
 The
Indenture Trustee hereby represents and warrants to the other parties hereto as of the Closing Date or such other date as is specified, that: 
  

 41 

 (a) The Indenture Trustee has been duly organized and is validly existing as a national banking
association in good standing under the laws of the United States of America, with full power and authority to own its assets and conduct its business as presently being conducted. 
  
 (b) The Indenture Trustee has the full power and authority to execute and deliver this Indenture and to perform its
obligations hereunder, and the execution, delivery and performance of this Indenture (including all instruments of transfer to be delivered pursuant to this Indenture) by the Indenture Trustee and the consummation of the transactions contemplated
hereby have been duly and validly authorized. 
  
 (c) This
Indenture constitutes a legal, valid and binding obligation of the Indenture Trustee, enforceable against the Indenture Trustee in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by general principles of equity (whether considered in a
proceeding at law or in equity). 
  
 (d) None of the execution and
delivery of this Indenture, the transactions contemplated hereby or the fulfillment of or compliance with the terms and conditions of this Indenture will conflict with or result in a breach of any of the terms, certificate of formation or operating
Indenture or any legal restriction or any Indenture or instrument to which the Indenture Trustee is now a party or by which it is bound, or constitute a default or result in the violation of any law, rule, regulation, order, judgment or decree to
which Indenture Trustee or its property is subject, or impair the ability of the Trust to realize on the Mortgage Loans, or impair the value of the Mortgage Loans. 
  
 (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 Indenture Trustee of or compliance by the Indenture Trustee with this Indenture, or if required, such consent, approval, authorization or order has been obtained prior to the related Closing Date. 
  
 (f) There is no action, suit, proceeding or investigation pending or to its
knowledge threatened against the Indenture Trustee which, either individually or in the aggregate, may result in any material adverse change in the business, operations, financial condition, properties or assets of the Indenture Trustee, or in any
material impairment of the right or ability of the Indenture Trustee to carry on its business substantially as now conducted, or which would draw into question the validity of this Indenture or the Mortgage Loans or of any action taken or to be
contemplated herein, or which would be likely to impair materially the ability of the Indenture Trustee to perform under the terms of this Indenture. 
  
 SECTION 6.13 Preferential Collection of Claims Against Issuer. 
  
 The Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section
311(b). An Indenture Trustee which has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated. 
  

 42 

 ARTICLE VII 
  
 NOTEHOLDERS’ LISTS AND REPORTS 
  
 SECTION 7.1 Note Registrar To Furnish to the Indenture Trustee the Names and Addresses of Noteholders. 
  
 The Note Registrar will furnish or cause to be furnished to the Indenture
Trustee within 30 days after receipt by the Note Registrar of a written request from the Indenture Trustee, a list of the names and addresses of the Noteholders as of a date not more than 10 Business Days prior to the time such list is furnished.

  
 SECTION 7.2 Preservation of Information; Communications to
Noteholders. 
  
 (a) The Note Registrar shall preserve, in the
most current form as is reasonably practicable, the names and addresses of the Noteholders contained in the most recent list furnished to the Indenture Trustee as provided in Section 7.1 and the names and addresses of Noteholders received by the
Note Registrar. The Note Registrar may destroy any list furnished to it as provided in Section 7.1 upon receipt of a new list so furnished. If three or more Noteholders, or one or more Noteholders of a Class of Notes evidencing not less than 25% of
the Outstanding Balance thereof (hereinafter referred to as “Applicants”) apply in writing to the Note Registrar, and such application states that the Applicants desire to communicate with other Noteholders with respect to their
rights under this Indenture or under the Notes, then the Note Registrar shall, within five Business Days after the receipt of such application, afford such Applicants access, during normal business hours, to the current list of Noteholders. Every
Noteholder, by receiving and holding a Note, agrees with the Issuer and the Indenture Trustee that neither the Issuer nor the Indenture Trustee shall be held accountable by reason of the disclosure of any such information as to the names and
addresses of the Noteholders under this Indenture, regardless of the source from which such information was derived. 
  
 (b) Pursuant to TIA Section 312(b), Noteholders may communicate with other Noteholders with respect to their rights under this Indenture or under the
Notes. 
  
 (c) The Issuer, the Note Registrar and the Indenture
Trustee shall have the protection of TIA Section 3l2(c). 
  
 SECTION 7.3 Reports by Issuer. 
  
 (a) The Issuer
shall: 
  
 (i) file with the Indenture Trustee
and the Commission in accordance with the rules and regulations prescribed from time to time by the Commission such additional information, documents and reports with respect to compliance by the Issuer with the conditions and covenants of this
Indenture as may be required from time to time by such rules and regulations; and 
  
 (ii) supply to the Indenture Trustee/[Securities Administrator] (and the Indenture Trustee/[Securities Administrator] shall transmit by
mail to all Noteholders) 
  

 43 

 
such summaries of any information, documents and reports required to be filed by the Issuer pursuant to clause (i) of this Section 7.3(a) and by rules and
regulations prescribed from time to time by the Commission. 
  
 (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer shall end on December 31 of each year. 
  
 (c) Delivery of such reports, information and documents to the Indenture Trustee is for informational purposes only and the Indenture Trustee’s
receipt of such reports shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Issuer’s compliance with any of its covenants hereunder (as to which the
Indenture Trustee is entitled to rely exclusively on Officers’ Certificates). 
  
 SECTION 7.4 Reports by Indenture Trustee. 
  
 If required by TIA Section 313(a), within 60 days after each                  , beginning with
                 , 200_, the Indenture Trustee shall mail to each Noteholder as required by TIA Section 313(c) a brief report dated as of such date that
complies with TIA Section 313(a). The Indenture Trustee also shall comply with TIA Section 313(b). 
  
 A copy of each report at the time of its mailing to Noteholders shall be filed by the Indenture Trustee with the Commission and each securities exchange,
if any, on which the Notes are listed. The Issuer shall notify the Indenture Trustee if and when the Notes are listed on any securities exchange. 
  
 ARTICLE VIII 
  
 COLLECTIONS AND RELEASES 
 SECTION 8.1 Collection of Money. 
  
 Except as otherwise expressly provided herein, the Indenture Trustee may
demand payment or delivery of, and shall receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable by the Indenture Trustee pursuant to this
Indenture. The Indenture Trustee shall apply all such money received by it as provided in this Indenture. Except as otherwise expressly provided in this Indenture, if any default occurs in the making of any payment or performance under any agreement
or instrument that is part of the Trust Fund, the Indenture Trustee may take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate proceedings. Any such action shall be
without prejudice to any right to claim an Indenture Default or Indenture Event of Default under this Indenture and any right to proceed thereafter as provided in Article V. 
  
 SECTION 8.2 Release of Trust Fund. 
  
 (a) Except as otherwise provided in subsections (b) and (c) of this Section and the terms of the Operative Agreements, the
Indenture Trustee shall release property from the lien of 
  

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this Indenture only upon receipt by it of an Issuer Order accompanied by (i) an Officer’s Certificate, (ii) an Opinion of Counsel, (iii) certificates in
accordance with TIA Sections 314(c) and 314(d)(1) and (iv)(A) Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1) or (B) an Opinion of Counsel in lieu of such Independent Certificates to the effect that the TIA does not
require any such Independent Certificates; provided, however, that no such Independent Certificates or Opinion of Counsel shall be necessary in respect of property released from the lien of the Indenture in accordance with the
provisions hereof if such property consists solely of cash. All such releases shall be subject to the payment of the Indenture Trustee Fee and expenses pursuant to Section 6.7. 
  
 (b) The Subservicer (or if the Subservicer does not, the Master Servicer), on behalf of the Issuer, shall be entitled to
obtain a release from the lien of this Indenture for any Mortgage Loan and the Mortgaged Property at any time: 
  
 (i) after a payment of the Repurchase Price of the Mortgage Loan; 
  
 (ii) after a Qualified Substitute Mortgage Loan is substituted for such Mortgage Loan and payment of the
Substitution Adjustment Amount, if any; 
  
 (iii)
after liquidation of the Mortgage Loan in accordance with the Transfer and Servicing Agreement and the deposit of all Liquidation Proceeds and Insurance Proceeds in the Collection Account; 
  
 (iv) upon the termination of a Mortgage Loan (due to, among
other causes, a prepayment in full of the Mortgage Loan and sale or other disposition of the related Mortgaged Property); or 
  
 (v) as contemplated by Section 9.2 of the Transfer and Servicing Agreement. 
  
 (c) The Indenture Trustee shall, if requested by the Subservicer, temporarily release to such party the Mortgage File
pursuant to the provisions of the Transfer and Servicing Agreement and the Custodial Agreement; provided, however, that the Mortgage File shall have been stamped to signify the Issuer’s pledge to the Indenture Trustee under the
Indenture. 
  
 (d) The Indenture Trustee shall, at such time as
there are no Notes that are Outstanding and all sums due to the Noteholders pursuant to the Transfer and Servicing Agreement and all fees and expenses of the Indenture Trustee, the Securities Administrator, the Paying Agent, the Note Registrar and
the Master Servicer pursuant to this Indenture or any other Operative Agreement have been paid, release any remaining portion of the Trust Fund that secured the Notes from the lien of this Indenture. The Indenture Trustee shall release property from
the lien of this Indenture pursuant to this subsection 8.2 only upon receipt of an Issuer Request accompanied by an Officer’s Certificate, an Opinion of Counsel and (if required by the TIA) Independent Certificates in accordance with TIA
Sections 314(c) and 314(d)(1) meeting the applicable requirements of Section 11.1 hereof. 
  

 45 

 ARTICLE IX 
  

SUPPLEMENTAL INDENTURES 
  
 SECTION 9.1 Supplemental Indentures Without Consent of Noteholders. 
  
 (a) Without the consent of any Noteholder but with prior notice to each Rating Agency, the Issuer, the Securities
Administrator and the Indenture Trustee, when authorized by an Issuer Order, at any time and from time to time, may enter into one or more supplemental indentures (which shall conform to the provisions of the Trust Indenture Act as in force at the
date of the execution thereof), in form satisfactory to the Indenture Trustee, for any of the following purposes: 
  
 (i) to correct or amplify the description of any property at any time subject to the lien of this Indenture, or better to assure, convey
and confirm unto the Indenture Trustee any property subject or required to be subjected to the lien of this Indenture, or to subject to the lien of this Indenture additional property; 
  
 (ii) to evidence the succession, in compliance with the applicable provisions hereof, of another person to
the Issuer, and the assumption by any such successor of the covenants of the Issuer herein and contained in the Notes; 
  
 (iii) to add to the covenants of the Issuer, for the benefit of the Noteholders, or to surrender any right or power herein conferred upon
the Issuer; 
  
 (iv) to convey, transfer, assign,
mortgage or pledge any property to or with the Indenture Trustee; 
  
 (v) (A) to cure any ambiguity, (B) to correct or supplement any provision herein or in any supplemental indenture that may be inconsistent with any other provisions herein or in any supplemental indenture or to
conform the provisions hereof to those of any Prospectus, (C) to obtain or maintain a rating for a Class of Notes from a nationally recognized statistical rating organization, (D) to make any other provisions with respect to matters or questions
arising under this Indenture; provided, however, that no such supplemental indenture entered into pursuant to clause (D) of this subclause (v) shall adversely affect in any material respect the interests of any Noteholder not
consenting thereto; 
  
 (vi) to evidence and
provide for the acceptance of the appointment hereunder by a successor trustee with respect to the Notes and to add to or change any of the provisions of this Indenture as shall be necessary to facilitate the administration of the trusts hereunder
by more than one trustee, pursuant to the requirements of Article VI; or 
  
 (vii) to modify, eliminate or add to the provisions of this Indenture to such extent as shall be necessary to effect the qualification of this Indenture under the TIA or under any similar federal statute hereafter
enacted and to add to this Indenture such other provisions as may be expressly required by the TIA; 
  

 46 

 provided, however, that no such supplemental indenture shall be entered into unless the Indenture Trustee shall
have received an Opinion of Counsel stating that as a result of such supplemental indenture (i) the Trust will not be subject to federal income tax at an entity level and (ii) the Notes will not lose their status as debt for federal income tax
purposes. 
  
 The Indenture Trustee and the Securities
Administrator are hereby authorized to join in the execution of any such supplemental indenture and to make any further appropriate agreements and stipulations that may be therein contained. 
  
 (b) A letter from each Rating Agency to the effect that any supplemental
indenture entered into pursuant to this Section 9.1 will not cause the then-current ratings on the Notes to be qualified, reduced or withdrawn shall constitute conclusive evidence that such amendment does not adversely affect in any material respect
the interests of the Noteholders. 
  
 SECTION 9.2 Supplemental
Indentures with Consent of Noteholders. 
  
 The Issuer, the
Securities Administrator and the Indenture Trustee, when authorized by an Issuer Order, also may, with prior notice to each Rating Agency and with the consent of Noteholders representing not less than 66-2/3% of the Outstanding Balance of the Notes,
by Act of such Noteholders delivered to the Issuer and the Indenture Trustee, enter into an indenture or supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this
Indenture or of modifying in any manner the rights of the Noteholders under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Noteholder of each Note affected, adversely affect the
interests of such Noteholders by (i) reducing in any manner the amount of, or delay the timing of, payments in respect of any Note, (ii) altering the obligations of the Subservicer or the Master Servicer to make an Advance or altering the servicing
standards set forth in the Transfer and Servicing Agreement, (iii) reducing the aforesaid percentages of Notes the Noteholders of which are required to consent to any such supplemental indenture, without the consent of the Noteholders of all Notes
affected thereby or (iv) permitting the creation of any lien ranking prior to or on a parity with the lien of this Indenture with respect to any part of the Trust Fund or, except as otherwise permitted or contemplated herein, terminating the lien of
this Indenture on any property at any time subject hereto or depriving any Noteholder of the security provided by the lien of this Indenture. 
  
 The Indenture Trustee may rely on an Opinion of Counsel to determine whether or not any Notes would be affected by any supplemental indenture and any such
determination shall be conclusive upon all Noteholders, whether theretofore or thereafter authenticated and delivered hereunder. 
  
 It shall not be necessary under this Section for any Noteholders to approve the particular form of any proposed supplemental indenture, but it shall be
sufficient if the Noteholders approve the substance thereof. 
  
 Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental indenture pursuant to this Section, the Issuer shall mail to the Noteholders to which such amendment or supplemental indenture relates and each Rating
Agency a notice setting forth in 
  

 47 

 general terms the substance of such supplemental indenture. Any failure of the Indenture Trustee to mail such notice, or
any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture. 
  
 SECTION 9.3 Execution of Supplemental Indentures. 
  
 In executing, or permitting the additional trusts created by any supplemental indenture permitted by this Article IX or the modification thereby of the
trusts created by this Indenture, the Indenture Trustee and the Securities Administrator shall be entitled to receive and shall be fully protected in relying upon, an Opinion of Counsel to the effect provided below, in addition to the documents
required under Section 11.1. Each of the Indenture Trustee and the Securities Administrator may, but shall not be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s or the Securities
Administrator’s own rights, duties, liabilities or immunities under this Indenture or otherwise. 
  
 In connection with any supplemental indenture pursuant to this Article IX, the Indenture Trustee and the Securities Administrator shall be entitled to
receive an Opinion of Counsel to the effect that such supplemental indenture is authorized or permitted by this Indenture and that all conditions precedent to the execution of such supplemental indenture in accordance with the relevant provisions of
this Article IX have been met. 
  
 Nothing in this Section shall
be construed to require that any Person obtain the consent of the Indenture Trustee or the Securities Administrator to any amendment or waiver of any provision of any document where the making of such amendment or the giving of such waiver without
obtaining the consent of the Indenture Trustee is not prohibited by this Indenture or by the terms of the document that is the subject of the proposed amendment or waiver. 
  
 SECTION 9.4 Effect of Supplemental Indenture. 
  
 Upon the execution of any supplemental indenture pursuant to the provisions hereof, this Indenture shall be and shall be
deemed to be modified and amended in accordance therewith with respect to the Notes affected thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and immunities under this Indenture of the Indenture Trustee,
the Issuer and the Noteholders shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed
to be part of the terms and conditions of this Indenture for any and all purposes. 
  
 SECTION 9.5 Conformity with Trust Indenture Act. 
  
 Every amendment of this Indenture and every supplemental indenture executed pursuant to this Article IX shall conform to the requirements of the Trust Indenture Act as then in effect so long as this Indenture shall
then be qualified under the Trust Indenture Act. 
  
 SECTION 9.6
Reference in Notes to Supplemental Indentures. 
  
 Notes
authenticated and delivered after the execution of any supplemental indenture pursuant to this Article IX may, and if required by the Indenture Trustee or the Securities 
  

 48 

 Administrator shall, bear a notation in a form approved by the Indenture Trustee as to any matter provided for in such
supplemental indenture. If the Issuer, the Securities Administrator or the Indenture Trustee shall so determine, new Notes so modified as to conform to any such supplemental indenture may be prepared and executed by the Issuer and authenticated and
delivered by the Note Registrar in exchange for Outstanding Notes. 
  
 ARTICLE X 
  
 REDEMPTION OF NOTES

  
 SECTION 10.1 Redemption. 
  
 The Notes are subject to redemption pursuant to Section 9.2 of the Transfer
and Servicing Agreement. If the Notes are to be redeemed pursuant to Section 9.2 of the Transfer and Servicing Agreement, the Servicing Rights Owner shall furnish notice of its exercise of its option to redeem the Notes to the Indenture Trustee, the
Securities Administrator and the Master Servicer no later than 15 days prior to the Redemption Date and the Servicing Rights Owner shall deposit the Redemption Price of the Notes to be redeemed by 10:00 A.M. New York City time on the Redemption Date
with the Securities Administrator in the Payment Account, whereupon all such Notes shall be due and payable on the Redemption Date upon the furnishing of a notice complying with Section 10.2 hereof to each Noteholder. The Issuer shall furnish each
Rating Agency notice of such redemption. 
  
 SECTION 10.2 Form
of Redemption Notice. 
  
 (a) Notice of redemption under
Section 10.1 shall be given by the Securities Administrator by first-class mail, postage prepaid, or by facsimile mailed or transmitted not later than 10 days prior to the applicable Redemption Date to each Noteholder, as of the close of business on
the Record Date preceding the applicable Redemption Date, at such Noteholder’s address or facsimile number appearing in the Note Register. 
  
 (b) All notices of redemption shall state: 
  
 (i) the Redemption Date; 
  
 (ii) the Redemption Price; and 
  
 (iii) the place where such Notes are to be surrendered for payment of the Redemption Price (which shall be the office or agency of the
Issuer to be maintained as provided in Section 3.2). 
  
 (c)
Notice of redemption of the Notes shall be given by the Indenture Trustee in the name and at the expense of the Issuer. Failure to give notice of redemption, or any defect therein, to any Noteholder shall not impair or affect the validity of the
redemption of any other Note. 
  

 49 

 SECTION 10.3 Notes Payable on Redemption Date. 
  
 The Notes or portions thereof to be redeemed shall, following notice of
redemption as required under Section 10.2 (in the case of redemption pursuant to Section 10.1) and remittance to the Indenture Trustee of the Redemption Price as required under Section 10.1, on the Redemption Date become due and payable at the
Redemption Price and (unless the Issuer shall default in the payment of the Redemption Price) no interest shall accrue on the Redemption Price for any period after the date to which accrued interest is calculated for purposes of calculating the
Redemption Price. 
  
 ARTICLE XI 
  
 MISCELLANEOUS 
  
 SECTION 11.1 Compliance Certificates and Opinions, etc. 
  
 (a) Upon any application or request by the Issuer to the Indenture Trustee or
the Securities Administrator, Note Registrar or Paying Agent to take any action under any provision of this Indenture, the Issuer shall furnish to the Indenture Trustee, Securities Administrator, Note Registrar or Paying Agent, as applicable: (i) an
Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, (ii) an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, and (iii) if required by the TIA, an Independent Certificate from a firm of Independent Accountants meeting the applicable requirements of this Section, except that, in the case of any such
application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture, no additional certificate or opinion need be furnished. 
  
 (b) Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture
shall include: 
  
 (i) a statement that each
signatory of such certificate or opinion has read or has caused to be read such covenant or condition and the definitions herein relating thereto; 
  
 (ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; 
  
 (iii)
a statement that, in the opinion of each such signatory, such signatory has made such examination or investigation as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been
complied with; and 
  
 (iv) a statement as to
whether, in the opinion of each such signatory, such condition or covenant has been complied with. 
  

 50 

 SECTION 11.2 Form of Documents Delivered. 
  
 In any case where several matters are required to be certified by or covered
by an opinion of any specified Person, it is not necessary that all such matters be certified by or covered by the opinion of only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give
an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  
 Any certificate or opinion of an Authorized Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of or representations by counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with
respect to the matters upon which such officer’s certificate or opinion is based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or
opinion of or representations by an officer or officers of the Depositor, the Issuer, the Subservicer or the Master Servicer, stating that the information with respect to such factual matters is in the possession of the Depositor, the Issuer, the
Subservicer or the Master Servicer, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous. 
  
 Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated into one instrument. 
  
 In connection with any application or certificate or report, if the Issuer is required to deliver any document as a
condition of the granting of such application or as evidence of the Issuer’s compliance with any term hereof, it is intended that the truth and accuracy, at the time of the granting of such application or at the effective date of such
certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions precedent to the right of the Issuer to have such application granted or to the sufficiency of such certificate or report.
The foregoing shall not, however, be construed to affect the right of the Indenture Trustee, the Securities Administrator, the Paying Agent or the Note Registrar to rely upon the truth and accuracy of any statement or opinion contained in any such
document as provided in Article VI. 
  

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 SECTION 11.3 Acts of Noteholders. 
  
 (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be
given or taken by Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in person or by agents duly appointed in writing. Except as otherwise expressly provided herein, such
action shall become effective when such instrument or instruments are delivered to the Indenture Trustee and, if expressly required, to the Issuer. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Noteholders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 6.1) conclusive in favor of the Indenture Trustee and the Issuer, if made in the manner provided in this Section. 
  
 (b) The fact and date of the execution by any person of any such instrument or writing may be proved in any manner that the Indenture Trustee deems
sufficient. 
  
 (c) Ownership of Notes shall be proved by the Note
Register. 
  
 (d) Any request, demand, authorization, direction,
notice, consent, waiver or other action by any Noteholder shall bind the Noteholder of every Note issued upon the registration thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of such action is made upon such Note. 
  
 SECTION 11.4 Notices, etc., to Indenture Trustee, Securities Administrator, Issuer and Rating Agencies. 
  
 (a) Any request, demand, authorization, direction, notice, consent, waiver or
Act of any Noteholders or other documents provided or permitted by this Indenture shall be in writing. If such request, demand, authorization, direction, notice, consent, waiver or Act of any Noteholders is to be made upon, given or furnished to or
filed with: 
  
 (i) the Indenture Trustee by any
Noteholder or by the Issuer, it shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Indenture Trustee at its Corporate Trust Office; or 
  
 (ii) the Securities Administrator or the Note Registrar by
the Indenture Trustee, by any Noteholder or by the Issuer, it shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Securities Administrator or the Note Registrar at its Corporate Trust Office
as applicable; or 
  
 (iii) the Issuer by the
Indenture Trustee, by the Securities Administrator or by any Noteholder, it shall be sufficient for every purpose hereunder if in writing and mailed first-class, postage prepaid to the Issuer addressed to the address provided in the Transfer and
Servicing Agreement, or at any other address previously furnished in writing to the Indenture Trustee by the Issuer. The Issuer shall promptly transmit any notice received by it from the Noteholders to the Indenture Trustee. 
  

 52 

 (b) Notices required to be given to the Rating Agencies by the Issuer, the Indenture Trustee, the
Securities Administrator or the Owner Trustee shall be in writing, personally delivered or mailed by certified mail, return receipt requested, to the address provided in the Transfer and Servicing Agreement or such other address as shall be
designated by written notice to the other parties. 
  
 SECTION
11.5 Notices to Noteholders; Waiver. 
  
 Where this
Indenture provides for notice to Noteholders of any event, such notice shall be in writing and mailed, first-class, postage prepaid to each Noteholder affected by such event, at such Noteholder’s address as it appears on the Note Register, not
later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Noteholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to
any particular Noteholder shall affect the sufficiency of such notice with respect to other Noteholders, and any notice that is mailed in the manner herein provided shall conclusively be presumed to have been duly given. 
  
 Where this Indenture provides for notice in any manner, such notice may be
waived in writing by any Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the Indenture Trustee but such filing
shall not be a condition precedent to the validity of any action taken in reliance upon such a waiver. 
  
 If it shall be impractical to mail notice of any event of Noteholders due to suspension of regular mail service as a result of a strike, work stoppage or
similar activity, any manner of giving such notice that is satisfactory to the Indenture Trustee shall be deemed to be sufficient. 
  
 Where this Indenture provides for notice to the Rating Agencies, failure to give such notice shall not affect any other rights or obligations created
hereunder and shall not under any circumstance constitute an Indenture Default or Indenture Event of Default. 
  
 SECTION 11.6 Conflict with Trust Indenture Act. 
  
 If any provision hereof limits, qualifies or conflicts with another provision hereof that is required to be included in this Indenture by any of the
provisions of the Trust Indenture Act, such required provision shall control. 
  
 The provisions of TIA Sections 310 through 317 that impose duties on any person (including the provisions automatically deemed included herein unless expressly excluded by this Indenture) are a part of and govern this
Indenture, whether or not physically contained herein. 
  
 SECTION
11.7 Effect of Headings and Table of Contents. 
  
 The
Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
  

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 SECTION 11.8 Successors and Assigns. 
  
 All covenants and agreements in this Indenture and the Notes by the Issuer shall bind its successors and assigns, whether so
expressed or not. All agreements of the Indenture Trustee in this Indenture shall bind its successors, co-trustees and agents. 
  
 SECTION 11.9 Severability. 
  
 In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby. 
  
 SECTION 11.10 Benefits of Indenture and Consents of Noteholders. 
  
 Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, the
Owner Trustee and the Noteholders any benefit or any legal or equitable right, remedy or claim under this Indenture. Each Noteholder and Noteholder, by acceptance of a Note or, in the case of a Noteholder, a beneficial interest in a Note, consents
to and agrees to be bound by the terms and conditions of this Indenture. 
  
 SECTION 11.11 Legal Holidays. 
  
 If the date on which any payment is due is not a Business Day, notwithstanding any other provision of the Notes or this Indenture, payment need not be made on such date but may be made on the next succeeding Business Day with the same force
and effect as if made on the date on which nominally due, and no interest shall accrue for the period from and after any such nominal date. 
  
 SECTION 11.12 Governing Law. 
  
 This indenture shall be governed by and construed in accordance with the laws of the State of New York, without reference to its conflict of law
provisions (other than Section 5-1401 of the general obligations law), and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. 
  
 SECTION 11.13 Counterparts. 
  

This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument. 
  
 SECTION 11.14 Recording of Indenture. 
  
 If this
Indenture is subject to recording in any appropriate public recording offices, such recording is to be effected by the Issuer and at its expense accompanied by an Opinion of Counsel (which may be counsel to the Indenture Trustee or any other counsel
reasonably acceptable to the Indenture Trustee) to the effect that such recording is necessary either for the 

  

 54 

 protection of the Noteholders or any other Person secured hereunder or for the enforcement of any right or remedy granted
to the Indenture Trustee under this Indenture. 
  
 SECTION 11.15
Trust Obligations. 
  
 (a) No recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee, the Master Servicer, the Note Registrar, the Paying Agent, the Securities Administrator or the Indenture Trustee on the Notes or under this Indenture or any
certificate or other writing delivered in connection herewith or therewith, against (i) the Indenture Trustee, the Master Servicer, the Note Registrar, the Paying Agent, the Securities Administrator or the Owner Trustee in their respective
individual capacities, (ii) any Noteholder of a beneficial interest in the Issuer or (iii) any partner, Noteholder, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee, the Securities Administrator, the Master Servicer,
the Note Registrar, the Paying Agent, or the Owner Trustee in its respective individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee, the Master Servicer, the Note Registrar, the Paying Agent, the Securities
Administrator or the Indenture Trustee or of any successor or assign of the Indenture Trustee, the Securities Administrator, the Note Registrar, the Master Servicer, the Paying Agent or the Owner Trustee in its individual capacity, except as any
such Person may have expressly agreed (it being understood that the Indenture Trustee, the Master Servicer, the Note Registrar, the Paying Agent, the Securities Administrator and the Owner Trustee have no such obligations in their respective
individual capacities) and except that any such partner, Noteholder or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment
or call owing to such entity. For all purposes of this Indenture, in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles
V, VI and VII of the Owner Trust Agreement. 
  
 (b) In addition,
(i) this Indenture is executed and delivered by Wilmington Trust Company, not individually or personally but solely as Owner Trustee, 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 Issuer or the Owner Trustee is made and intended not as personal representations, undertakings and agreements by Wilmington Trust Company but is made and intended for the purpose for binding
only the Trust, (iii) nothing herein contained shall be construed as creating any liability on Wilmington Trust Company, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any,
being expressly waived by the Indenture Trustee and by any Person claiming by, through or under the Indenture Trustee, and (iv) under no circumstances shall Wilmington Trust Company be personally liable for the payment of any indebtedness or
expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Indenture or the Operative Agreements. 
  
 SECTION 11.16 No Petition. 
  
 The Indenture Trustee and the Securities Administrator, by entering into this
Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree that they will not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor 
  

 55 

 
or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or
state bankruptcy or similar law in connection with any obligations relating to the Notes, this Indenture or any of the Operative Agreements. 
  
 SECTION 11.17 Inspection. 
  
 The Issuer agrees that, on reasonable prior notice, it will permit any representative of the Indenture Trustee or the Securities Administrator, during the
Issuer’s normal business hours, to examine all the books of account, records, reports and other papers of the Issuer, to make copies and extracts therefrom, to cause such books to be audited by Independent Accountants, and to discuss the
Issuer’s affairs, finances and accounts with the Issuer’s officers, employees and Independent certified public accountants, all at such reasonable times and as often as may be reasonably requested. The Indenture Trustee or the Securities
Administrator shall, and shall cause its representatives to, hold in confidence all such information except to the extent disclosure may be required by law (and all reasonable applications for confidential treatment are unavailing) and except to the
extent that the Indenture Trustee or the Securities Administrator may reasonably determine that such disclosure is consistent with its obligations hereunder. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 56 

 IN WITNESS WHEREOF, the Issuer, the Securities Administrator and the Indenture Trustee have caused this
Indenture to be duly executed by their respective officers, thereunto duly authorized and duly attested, all as of the day and year first above written. 
  

					
	FIRST NLC SECURITIZATION TRUST 200_-_,
	 	    	 as Issuer

					
	
	 By: [ - ],

	 	 	not in its individual capacity but solely as
Owner Trustee

					
			
	 	 	By:	 	  

	 	 	 	 	 Name:

	 	 	 	 	 Title:

			
	 	 	 [ - ],
	 	 as Securities Administrator

			
	 	 	By:	 	  

	 	 	 	 	 Name:

	 	 	 	 	 Title:

			
	 	 	[ - ],	 	as Indenture Trustee
			
	 	 	By:	 	  

	 	 	 	 	 Name:

	 	 	 	 	 Title:

  

 [INDENTURE] 

 EXHIBIT A 
  
 FIRST NLC SECURITIZATION TRUST 200  -   
 ASSET-BACKED NOTES, 
 SERIES
200  -   
  
 GLOBAL CLASS
[            ] NOTES 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT
GUARANTEED BY, THE ISSUER, THE DEPOSITOR, THE SELLERS, THE ORIGINATOR, THE SUBSERVICER, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY
ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER. 
  
 THE PRINCIPAL OF
THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  
 EACH PURCHASER OF THIS SECURITY WILL BE DEEMED TO HAVE MADE THE REPRESENTATIONS AND AGREEMENTS SET FORTH IN SECTION 2.3 OF
THE INDENTURE. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUER,
THE INDENTURE TRUSTEE OR ANY INTERMEDIARY. 
  
 THIS NOTE MAY NOT
BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR TO ANY SUBSTANTIALLY SIMILAR LAW (“SIMILAR LAW”) OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING (“BENEFIT PLAN”), UNLESS THE
TRANSFEREE REPRESENTS AND WARRANTS THAT THE ACQUISITION AND HOLDING OF THIS NOTE: (X) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS
EXEMPTION 

  

 A-1 

 
EXHIBIT A 
  
 (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR SOME OTHER APPLICABLE EXEMPTION AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY
SIMILAR LAW SUBSTANTIALLY SIMILAR APPLICABLE LAW. EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS
NOTE IN VIOLATION OF THE FOREGOING. 
  

 A-2 

 EXHIBIT A 
  
 FIRST NLC SECURITIZATION TRUST 200  -   
 ASSET-BACKED NOTES, 
 SERIES
200  -   
  
 GLOBAL CLASS
[    ] NOTES 
  

			
	 Aggregate Class Principal Amount of
 the Class [ - ]
Notes: $[ - ]
	 	 Class Principal Amount
 of this Note: $[ -
]

		
	Interest Rate: Adjustable	 	Cut-off Date: [ - ]
		
	Number: [ - ]	 	CUSIP No.: [ - ]

  
 FIRST NLC
SECURITIZATION TRUST 200  -  , a statutory trust organized and existing under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to
CEDE & CO. or registered assigns, the principal sum of [            ]($[        ]) payable on each Payment Date pursuant to the
Indenture, dated as of                  , 200   (as amended and supplemented from time to time, the “Indenture”), among
the Issuer,             , as indenture trustee (the “Indenture Trustee”) and             , as
securities administrator (the “Securities Administrator”); provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the Payment Date occurring in
[            ] (the “Maturity Date”) or as otherwise specified in the Indenture. Capitalized terms used but not defined herein have the meanings assigned to such
terms in the Indenture or the Transfer and Servicing Agreement, dated as of                  , 200     (as amended and
supplemented from time to time, the “Transfer and Servicing Agreement”), by and among the Issuer, the Indenture Trustee, First NLC Securitization, Inc., as depositor (the “Depositor”),
            , as Securities Administrator and master servicer (in such capacity, the “Master Servicer”),
            , as subservicer, and             , as the originator,
             as sellers, which agreements also contain rules as to construction that shall be applicable herein. 
  
 On each Payment Date until the principal of this Note is paid or made available for payment in full, the Issuer will pay
interest on this Note at a per annum rate equal to the applicable Note Interest Rate, on the principal amount of this Note outstanding on the immediately preceding Payment Date (after giving effect to all payments of principal made on such preceding
Payment Date) . 
  
 Payments on this Note will be made on the
         day of each month or, if such a day is not a Business Day, then on the next succeeding Business Day, commencing in
             200   (each, a “Payment Date”), to the Person in whose name this Note is registered at the close of business on the Business Day
immediately preceding the Payment Date (the “Record Date”), in an amount equal to the product of the Percentage Interest evidenced by this Note and the amount, if any, required to be paid to all the Notes of the Class of Notes
represented by this Note. All sums distributable on this Note are payable in the coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Such principal of and
interest on this Note shall be paid in the manner specified on the reverse hereof. 
  

 A-3 

 EXHIBIT A 
  
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect
as though fully set forth on the face of this Note. 
  
 Unless the
certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose. 
  

 A-4 

 EXHIBIT A 
  
 IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below. 
  

			
	 FIRST NLC SECURITIZATION TRUST 200  -  

	
	 By: [ - ], solely as owner trustee and not in its individual capacity

		
	 By:
	 	 
	 	 	 Authorized Signatory

	
	 Dated:
                   , 200_

  
 CERTIFICATE OF
AUTHENTICATION 
  
 This is one of the Class [ - ] Notes designated
above and referred to in the within-mentioned Indenture. 
  

			
	 [ - ], solely as Security Administrator and not in its
 individual capacity

		
	 By:
	 	 
	 	 	 Authorized Signatory

	
	 Dated:               
    , 200  

  

 A-5 

 EXHIBIT A 
  
 FIRST NLC SECURITIZATION TRUST 200_-_ 
 ASSET-BACKED NOTES, 
 SERIES 200_-_ 
  
 This Note is one of a duly authorized issue of Notes of the Issuer, all
issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Noteholders of the
Notes. To the extent that any provision of this Note contradicts or is inconsistent with the provisions of the Indenture, the provisions of the Indenture shall control and supersede such contradictory or inconsistent provision herein. This Note is
subject to all terms of the Indenture. 
  
 Payments to each
Noteholder shall be made (i) by check mailed to the Person whose name appears as the Registered Noteholder of this Note on the books of the Note Registrar and Paying Agent as of the close of business on each Record Date or (ii) upon written request
made to the Note Registrar and Paying Agent prior to the related Record Date by the Noteholder of a Note having an initial Note Principal Amount of not less than $[2,500,000], by wire transfer in immediately available funds to an account specified
in writing by such Noteholder. The final payment in retirement of this Note shall be made only upon surrender of this Note to the Note Registrar and Paying Agent at the office thereof specified in the notice to Noteholders of such final payment
mailed prior to the Payment Date on which the final payment is expected to be made to the Noteholder thereof. 
  
 As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Note may be registered by the Note Registrar upon
surrender of this Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly
executed by, the Noteholder hereof or such Noteholder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements
include membership or participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee
or transferees. No service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection
with any such registration of transfer or exchange. 
  
 The Notes
are subject to optional redemption and a clean-up call in accordance with the Indenture and the Transfer and Servicing Agreement. 
  
 Each Noteholder, by acceptance of a Note or a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Owner Trustee, the Securities Administrator or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the
Indenture Trustee, the Securities Administrator or the Owner Trustee in their 
  

 A-6 

 EXHIBIT A 
  
 respective individual capacities, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee, the Securities Administrator or the Owner Trustee in its individual capacity, any Noteholder of a beneficial interest in the Issuer, the Owner Trustee, the Securities Administrator or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
  
 Each Noteholder, by acceptance of a Note or a beneficial interest in a Note, covenants and agrees by accepting the benefits
of the Indenture that such Noteholder will not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture or the other Operative Agreements. 
  
 Each Noteholder, by acceptance of a Note or a beneficial interest in a Note, consents to and agrees to be bound by the terms
and conditions of the Indenture and the Transfer and Servicing Agreement. 
  
 The Issuer has entered into the Indenture and this Note is issued with the intention that, for federal, state and local income, single business and franchise tax purposes, the Notes will qualify as indebtedness of the
Issuer secured by the Trust Fund. Each Noteholder, by acceptance of a Note or a beneficial interest in a Note, agrees to treat the Notes for all federal, state and local income tax purposes as indebtedness (except that any Note held by a person
that, for federal income tax purposes, owns or is treated as owning a 100% Percentage Interest of the Ownership Certificate shall not be treated as outstanding indebtedness). 
  
 Prior to the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee, the Note
Registrar, the Paying Agent and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note be overdue, and none of the Issuer, the Indenture Trustee, the Note Registrar, the Paying Agent or any such agent shall be affected by notice to the contrary. 
  
 The Indenture permits, with certain exceptions as therein provided, the
amendment thereof by supplemental indenture and the modification of the rights and obligations of the Issuer and the rights of the Noteholders of the Notes under the Indenture at any time by the Depositor, the Issuer and the Indenture Trustee with
the consent of the Noteholders of not less than 66-2/3% of the Outstanding Balance of the Notes for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any manner
the rights of the Noteholders. Any such consent or waiver by the Noteholder of this Note shall be conclusive and binding upon such Noteholder and upon all future Noteholders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. The 
  

 A-7 

 EXHIBIT A 
  
 Indenture also permits the amendment thereof, in certain limited circumstances, or the waiver of certain terms and conditions set forth in
the Indenture, without the consent of Noteholders of the Notes issued thereunder. 
  
 The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture. 
  
 The Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth.

  
 THIS NOTE AND THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  
 No reference
herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in
the coin or currency herein prescribed. 
  
 Anything herein to the
contrary notwithstanding, except as expressly provided in the Operative Agreements, none of the Issuer in its individual capacity, the Owner Trustee in its individual capacity, the Indenture Trustee in its individual capacity, any owner of a
beneficial interest in the Issuer, or any of their respective partners, beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of
principal of or interest on this Note or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in the Indenture. The Noteholder of this Note by its acceptance hereof agrees that, except as expressly
provided in the Operative Agreements, in the case of an Event of Default under the Indenture, the Noteholder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Note. 
  

 A-8 

 ASSIGNMENT 
  
 Social Security or taxpayer I.D. or other identifying number of assignee:
                     
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto: 
  

 (name and address of assignee) 
  
 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
            , attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 
  
 Dated:            */ 
  
 Signature Guaranteed: 
  
             */ 
  
 */ NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change
whatever. Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in STAMP or such other “signature guarantee
program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
  

 A-9 

 EXHIBIT B 
  
 FORM OF ERISA TRANSFER AFFIDAVIT 
  

	
	
	  

	 date

  

			
	STATE OF NEW YORK	 	)
	 	 	 ) ss.:

	 COUNTY OF NEW YORK
	 	 )

  
 Re: FIRST NLC
SECURITIZATION TRUST 200_-_ 
       Asset-Backed Notes, Series 200_-_ 
  
 1. The undersigned is the
             of              (the “Investor”), a [corporation duly organized] and existing under
the laws of             , on behalf of which s/he makes this affidavit. 
  
 2. The Investor hereby confirms (i) it is not, and on              [date of transfer]
will not be, acquiring the Notes for, or on behalf of, an employee benefit plan or other retirement arrangement that is subject to Section 406 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or to
Section 4975 of the Internal Revenue Code of 1986, as amended (or to any substantially similar law (“Similar Law”)) or any entity deemed to hold the plan assets of the foregoing (a “Plan”) or (ii) its acquisition
and holding of the Notes for, or on behalf of, a Plan will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code which is not covered under Prohibited Transaction Class Exemption
(“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or some other applicable exemption, and will not result in a non-exempt violation of any Similar Law. 
  
 3. The Investor hereby acknowledges that under the terms of the Indenture, dated as of
                 , 200_, among First NLC Securitization Trust 200_-_, as Issuer,
            , as Securities Administrator, and             , as Indenture Trustee, no transfer of any Note shall be
permitted to be made to any person unless the Indenture Trustee has received a certificate from such transferee in the form hereof. 
  
 IN WITNESS WHEREOF, the Investor has caused this instrument to be executed on its behalf, pursuant to proper authority, by its duly authorized officer,
duly attested, this              day of             , 20    . 
  

			
	

	 [Investor]

		
	 By:
	 	

	 	 	 Name:

	 	 	 Title:

  

 B-1 

 ATTEST: 
  

			
		
	 STATE OF
	 	)
	 	 	 ) ss.:

	 COUNTY OF
	 	)

  
 Personally appeared
before me the above-named             , known or proved to me to be the same person who executed the foregoing instrument and to be the
             of the Investor, and acknowledged that he executed the same as his free act and deed and the free act and deed of the Investor. 
  
 Subscribed and sworn before me this
             day of              20    . 
  

			
		
	 	 	 
	 	 	 NOTARY PUBLIC

		
	 	 	 My commission expires the

	 	 	      day of             ,
20    .

  

 B-2EXHIBIT 4.3

 [Exhibit 4.3] 
  

  
 FIRST NLC SECURITIZATION TRUST 200  -  , 
 as Issuer 
  
 FIRST NLC SECURITIZATION, INC., 
 as Depositor 
  
 [ - ], 
 Servicing Rights Owner 
  
 FIRST NLC FINANCIAL SERVICES, LLC, 
 as Originator 
  
 [ - ], 
 as Sellers 
  
 [ - ], 
 as
Servicer 
  
 [ - ], 
 as Securities Administrator and Master Servicer 
  
 and 
  
 [ - ], 
 as Indenture Trustee 
  

  
 TRANSFER AND SERVICING AGREEMENT 
  
 Dated as of                  , 200   
  

  
 First NLC Securitization Trust 200  -   
 Asset-Backed Notes, Series
200  -   
  

 TABLE OF CONTENTS 
  

							
	 	  	 	 	 	  	Page

	 ARTICLE I DEFINITIONS AND INTERPRETATION
	  	2
				
	 	  	SECTION 1.1	 	Definitions.	  	2
	 	  	SECTION 1.2	 	Calculations With Respect to the Mortgage Loans.	  	29
	 	  	SECTION 1.3	 	Calculations With Respect to Accrued Interest.	  	30
	 	  	SECTION 1.4	 	Rules of Construction.	  	30
		
	 ARTICLE II CONVEYANCE OF MORTGAGE LOANS
	  	30
				
	 	  	SECTION 2.1	 	Conveyance of Mortgage Loans to the Depositor.	  	30
	 	  	SECTION 2.2	 	Conveyance of Mortgage Loans to the Trust.	  	31
	 	  	SECTION 2.3	 	Assignment of Mortgage Loans.	  	32
	 	  	SECTION 2.4	 	Books and Records.	  	32
	 	  	SECTION 2.5	 	Review of Documentation.	  	33
	 	  	SECTION 2.6	 	Granting Clause.	  	34
	 	  	SECTION 2.7	 	Subsequent Transfers	  	36
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES
	  	38
				
	 	  	SECTION 3.1	 	Representations and Warranties of each Seller.	  	38
	 	  	SECTION 3.2	 	Representations and Warranties of the Originator.	  	40
	 	  	SECTION 3.3	 	Representations and Warranties of the Depositor.	  	41
	 	  	SECTION 3.4	 	Representations and Warranties of the Servicing Rights Owner.	  	42
	 	  	SECTION 3.5	 	Representations and Warranties of the Servicer.	  	43
	 	  	SECTION 3.6	 	Representations and Warranties of the Master Servicer.	  	45
	 	  	SECTION 3.7	 	Representations and Warranties in respect of the Mortgage Loans.	  	46
		
	 ARTICLE IV ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS BY THE SERVICER
	  	48
				
	 	  	SECTION 4.1	 	General.	  	48
	 	  	SECTION 4.2	 	Liquidation of Mortgage Loans.	  	50
	 	  	SECTION 4.3	 	Collection of Mortgage Loan Payments.	  	51
	 	  	SECTION 4.4	 	Establishment of and Deposits to Custodial Account.	  	51
	 	  	SECTION 4.5	 	Investment of Funds in the Custodial Account.	  	53
	 	  	SECTION 4.6	 	Permitted Withdrawals From Custodial Account.	  	53
	 	  	SECTION 4.7	 	Establishment of and Deposits to Escrow Account.	  	54
	 	  	SECTION 4.8	 	Permitted Withdrawals From Escrow Account.	  	55
	 	  	SECTION 4.9	 	Payment of Taxes, Insurance and Other Charges.	  	55
	 	  	SECTION 4.10	 	Transfer of Accounts.	  	56
	 	  	SECTION 4.11	 	Maintenance of Hazard Insurance.	  	56
	 	  	SECTION 4.12	 	Maintenance of Blanket Mortgage Hazard Insurance.	  	58
	 	  	SECTION 4.13	 	Maintenance of Fidelity Bond and Errors and Omissions Insurance.	  	58
	 	  	SECTION 4.14	 	Inspections.	  	58
	 	  	SECTION 4.15	 	Restoration of Mortgaged Property.	  	59

  

 i 

 TABLE OF CONTENTS 
  

							
	 	  	 	 	 	  	Page

	 	  	SECTION 4.16	 	Maintenance of PMI Policy; Claims.	  	59
	 	  	SECTION 4.17	 	Title, Management and Disposition of REO Property.	  	60
	 	  	SECTION 4.18	 	Real Estate Owned Reports.	  	61
	 	  	SECTION 4.19	 	Liquidation Reports.	  	61
	 	  	SECTION 4.20	 	Reports of Foreclosure and Abandonment of Mortgaged Property.	  	61
	 	  	SECTION 4.21	 	Notification of Adjustments.	  	61
	 	  	SECTION 4.22	 	Prepayment Premiums.	  	62
	 	  	SECTION 4.23	 	Credit Reporting; Gramm Leach Bliley Act.	  	62
		
	 ARTICLE V GENERAL SERVICING PROCEDURES
	  	63
				
	 	  	SECTION 5.1	 	Transfers of Mortgaged Property.	  	63
	 	  	SECTION 5.2	 	Satisfaction of Mortgages and Release of Mortgage Files.	  	63
	 	  	SECTION 5.3	 	Servicing Compensation.	  	65
	 	  	SECTION 5.4	 	Annual Statement as to Compliance.	  	65
	 	  	SECTION 5.5	 	Annual Independent Public Accountants’ Servicing Report.	  	66
	 	  	SECTION 5.6	 	Sarbanes-Oxley Related Certifications.	  	66
	 	  	SECTION 5.7	 	Examination Rights.	  	68
	 	  	SECTION 5.8	 	Servicer Events of Default.	  	69
	 	  	SECTION 5.9	 	Waiver of Defaults.	  	70
	 	  	SECTION 5.10	 	Limitation on Resignation and Assignment by Servicer.	  	70
	 	  	SECTION 5.11	 	Merger or Consolidation of Servicer.	  	71
	 	  	SECTION 5.12	 	Termination without Cause.	  	71
	 	  	SECTION 5.13	 	Opinion.	  	72
	 	  	SECTION 5.14	 	Indemnification; Third Party Claims.	  	72
	 	  	SECTION 5.15	 	Documents, Records and Funds in Possession of Servicer To Be Held for Indenture Trustee.	  	73
		
	 ARTICLE VI ADMINISTRATION AND SERVICING OF MORTGAGE LOANS BY THE MASTER SERVICER
	  	74
				
	 	  	SECTION 6.1	 	Duties of the Master Servicer.	  	74
	 	  	SECTION 6.2	 	Master Servicer Errors and Omissions Insurance Policy.	  	74
	 	  	SECTION 6.3	 	Power to Act; Procedures.	  	75
	 	  	SECTION 6.4	 	Master Servicer Liable for Enforcement.	  	75
	 	  	SECTION 6.5	 	Alternative Index.	  	75
	 	  	SECTION 6.6	 	Compensation to the Master Servicer.	  	76
	 	  	SECTION 6.7	 	Merger or Consolidation.	  	76
	 	  	SECTION 6.8	 	Resignation of Master Servicer.	  	76
	 	  	SECTION 6.9	 	Assignment or Delegation of Duties by the Master Servicer.	  	76
	 	  	SECTION 6.10	 	Limitation on Liability of the Master Servicer and Others.	  	77
	 	  	SECTION 6.11	 	Indemnification; Third-Party Claims.	  	78
	 	  	SECTION 6.12	 	Master Servicer to Act as Servicer; Appointment of Successor.	  	78
	 	  	SECTION 6.13	 	Assumption of Master Servicing by Indenture Trustee.	  	81
	 	  	SECTION 6.14	 	Master Servicer Events of Default; Indenture Trustee To Act; Appointment of Successor.	  	81

  

 ii 

 TABLE OF CONTENTS 
  

							
	 	  	 	 	 	  	Page

	 	  	SECTION 6.15	 	Additional Remedies of Indenture Trustee Upon Master Servicer Event of Default.	  	85
	 	  	SECTION 6.16	 	Waiver of Defaults.	  	85
	 	  	SECTION 6.17	 	Notification to Noteholders and to Ownership Certificateholder.	  	86
	 	  	SECTION 6.18	 	Directions by Noteholders and Duties of Indenture Trustee During Event of Default.	  	86
	 	  	SECTION 6.19	 	Action Upon Certain Failures of the Master Servicer and Upon Event of Default.	  	86
		
	 ARTICLE VII DEPOSITS AND PAYMENTS TO NOTEHOLDERS; REPORTING
	  	87
				
	 	  	SECTION 7.1	 	Servicer Remittances.	  	87
	 	  	SECTION 7.2	 	Statements to Master Servicer and Securities Administrator.	  	88
	 	  	SECTION 7.3	 	Advances by Master Servicer and Servicer.	  	88
	 	  	SECTION 7.4	 	Collection Account.	  	89
	 	  	SECTION 7.5	 	Application of Funds in the Collection Account.	  	91
	 	  	SECTION 7.6	 	The Payment Account.	  	93
	 	  	SECTION 7.7	 	Payments from the Payment Account.	  	94
	 	  	SECTION 7.8	 	The Pre-Funding Account.	  	96
	 	  	SECTION 7.9	 	The Capitalized Interest Account.	  	97
	 	  	SECTION 7.10	 	Reports to the Indenture Trustee, the Noteholders and the Ownership Certificateholder.	  	98
	 	  	SECTION 7.11	 	Preparation of Reports.	  	101
	 	  	SECTION 7.12	 	Advance Facilities.	  	101
		
	 ARTICLE VIII CONCERNING THE SECURITIES ADMINISTRATOR
	  	104
				
	 	  	SECTION 8.1	 	Duties of the Securities Administrator.	  	104
	 	  	SECTION 8.2	 	Records.	  	106
	 	  	SECTION 8.3	 	Compensation.	  	106
	 	  	SECTION 8.4	 	Independence of the Securities Administrator.	  	106
	 	  	SECTION 8.5	 	No Joint Venture.	  	107
	 	  	SECTION 8.6	 	Other Activities of Securities Administrator and the Depositor.	  	107
	 	  	SECTION 8.7	 	Certain Matters Affecting the Securities Administrator.	  	107
	 	  	SECTION 8.8	 	Securities Administrator Not Liable for Notes or Mortgage Loans.	  	109
	 	  	SECTION 8.9	 	Securities Administrator May Own Notes.	  	109
	 	  	SECTION 8.10	 	Expenses of the Securities Administrator.	  	109
	 	  	SECTION 8.11	 	Eligibility Requirements for the Securities Administrator.	  	110
	 	  	SECTION 8.12	 	Resignation and Removal of the Securities Administrator.	  	110
	 	  	SECTION 8.13	 	Successor Securities Administrator.	  	111
	 	  	SECTION 8.14	 	Merger or Consolidation of Securities Administrator.	  	111
		
	 ARTICLE IX TERMINATION
	  	112
				
	 	  	SECTION 9.1	 	Termination.	  	112
	 	  	SECTION 9.2	 	Optional Termination; Clean-up Call; Termination Prior to Maturity Date.	  	112
	 	  	SECTION 9.3	 	Certain Notices upon Final Payment.	  	113

  

 iii 

 TABLE OF CONTENTS 
  

							
	 	  	Page

	 ARTICLE X MISCELLANEOUS PROVISIONS
	  	113
				
	 	  	SECTION 10.1	 	Binding Nature of Agreement.	  	113
	 	  	SECTION 10.2	 	Entire Agreement.	  	113
	 	  	SECTION 10.3	 	Amendment.	  	114
	 	  	SECTION 10.4	 	Acts of the Noteholders.	  	115
	 	  	SECTION 10.5	 	Recordation of Agreement.	  	115
	 	  	SECTION 10.6	 	Governing Law.	  	115
	 	  	SECTION 10.7	 	Notices.	  	115
	 	  	SECTION 10.8	 	Severability of Provisions.	  	117
	 	  	SECTION 10.9	 	Indulgences; No Waivers.	  	117
	 	  	SECTION 10.10	 	Headings Not To Affect Interpretation.	  	117
	 	  	SECTION 10.11	 	Benefits of Agreement.	  	118
	 	  	SECTION 10.12	 	Special Notices to the Rating Agencies.	  	118
	 	  	SECTION 10.13	 	Counterparts.	  	119
	 	  	SECTION 10.14	 	Execution by the Trust; Closing Certifications.	  	119
	 	  	SECTION 10.15	 	Assignment of OTC Hedge Agreements	  	119

  

			
	ATTACHMENTS
		
	 Exhibit A
	 	Information Fields for Mortgage Loan Schedule
	 Exhibit B
	 	Contents of Each Mortgage File
	 Exhibit C
	 	Form of Lost Note Affidavit
	 Exhibit D
	 	Form of Request for Release
	 Exhibit E
	 	Form of Monthly Remittance Advice
	 Exhibit F
	 	Standard Layout For Monthly Defaulted Loan Report
	 Exhibit G
	 	Form of Subsequent Transfer Agreements
	 Exhibit H
	 	Form of Sarbanes-Oxley Supporting Certifications
	 Exhibit I
	 	Credit Reporting Procedure
	 Exhibit J
	 	Subsequent Mortgage Loan Criteria
	 Exhibit K
	 	Form of Initial Certification
	 Exhibit L
	 	Form of Final Certification
		
	 Schedule A
	 	Mortgage Loan Schedule
	 Schedule B
	 	Representations and Warranties in respect of the Mortgage Loans
	 Schedule C
	 	LIBOR Formula

  

 iv 

 This TRANSFER AND SERVICING AGREEMENT, dated as of
                 , 2005, is by and among FIRST NLC SECURITIZATION TRUST 200  -  , a Delaware statutory trust, as
issuer (the “Issuer”), FIRST NLC SECURITIZATION, INC., a Delaware corporation, as depositor (the “Depositor”),
                            , as servicing rights owner (the “Servicing Rights
Owner”), FIRST NLC FINANCIAL SERVICES, LLC, as originator (the “Originator”),
                            , as sellers (collectively, the “Sellers” and each,
individually, a “Seller”),                             , as servicer (the
“Servicer”),                             , as securities administrator (the
“Securities Administrator”) and master servicer (the “Master Servicer”), and
                            , as indenture trustee (the “Indenture Trustee”).

  
 PRELIMINARY STATEMENT 
  
 WHEREAS, each Seller seeks to sell to the Depositor and the Depositor seeks
to purchase from such Seller all of the rights, title and interest of such Seller in certain conventional, first and second priority lien, fixed-rate and adjustable-rate, residential mortgage loans identified in Schedule A hereto on a
servicing-released basis from such Seller pursuant to this Agreement; 
  
 WHEREAS, the Originator will make representations and warranties as set forth herein with respect to the Mortgage Loans; 
  
 WHEREAS, on the Closing Date the Depositor will be the owner of the Mortgage Loans and the other property being conveyed by it to the Issuer hereunder for
inclusion in the Trust Fund on the Closing Date; 
  
 WHEREAS, the
Depositor has duly authorized the execution and delivery of this Agreement to provide for the conveyance to the Issuer of the Mortgage Loans and the other property constituting the Trust Fund; 
  
 WHEREAS, on the Closing Date, the Depositor and an affiliate of the Depositor
will acquire the Notes and the Ownership Certificate from the Issuer as consideration for its transfer to the Issuer of the Mortgage Loans and the other property constituting the Trust Fund; 
  
 WHEREAS, pursuant to the Indenture, the Issuer will pledge the Mortgage Loans
and the other property constituting the Trust Fund to the Indenture Trustee for the benefit of the Noteholders as security for the Notes; 
  
 WHEREAS, the Servicer is willing to service the Mortgage Loans for the benefit of the Issuer and the Indenture Trustee for the benefit of the Noteholders;

  
 WHEREAS, the Master Servicer is willing to master service the
Mortgage Loans for the benefit and account of the Issuer and the Indenture Trustee for the benefit of the Noteholders; and 
  
 WHEREAS, the Issuer has entered into certain agreements in connection with the issuance of the Notes and the Ownership Certificate, including the
Operative Agreements. 

 NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as
follows: 
  
 The following table sets forth (or describes) the
Class designation, Note Interest Rate, initial Class Principal Amount, minimum denomination and rating for each Class of Notes issued pursuant to the Indenture. 
  

											
	 Class
 Designation

	 	 Initial
 Class Principal
Amount

	 	 Note
 Interest
 Rate(1)(2)

	 	 Maturity
 Date(3)

	 	 Minimum
 Denominations

	 	 Ratings
 [S&P]/[Moody’s]
 [Fitch] (4)

	A	 	 	 	 	 	 	 	(5)	 	 
	M	 	 	 	 	 	 	 	(5)	 	 

	(1)	The interest rate for each Class of Notes is the least of (a) one-month LIBOR plus the applicable margin, (b) the Available Funds Rate, and (c) a fixed rate cap of [ - ]% per annum.
The interest rate is subject to adjustment. 

	(2)	On the Margin Stepup Date, the margin on the Class A Notes will increase to [ - ] times the margin shown above and the margin for each Class of Class M Notes will increase to [ - ]
times the applicable margin shown above. 

	(3)	Assumes the Payment Date following the latest possible maturity date for any Mortgage Loan plus one month. 

	(4)	The designation “NR” means that the Depositor has not and will not obtain a rating from the respective Rating Agency for the applicable Class of Notes.

	(5)	The Notes will be issued in minimum denominations of $[25,000] and increments of $1 thereafter. 

  
 ARTICLE I 
  
 DEFINITIONS AND INTERPRETATION 
  
 SECTION 1.1 Definitions. 
  
 The following words and phrases, unless the context otherwise requires, shall have the following meanings: 
  
 Accepted Master Servicing Practices: With respect to any Mortgage
Loan, those customary mortgage loan master servicing practices of prudent mortgage servicing institutions that master service mortgage loans of the same type and quality as such Mortgage Loan in the jurisdiction where the related Mortgaged Property
is located, to the extent applicable to the Master Servicer, and in accordance with the applicable state, local and federal laws, rules and regulations. 
  
 Accepted Servicing Practices: The servicing and administration of the Mortgage Loans for which the Servicer is responsible hereunder: 

 
 (a) in the same manner in which, and with the same care, skill, prudence
and diligence with which, the Servicer generally services and administers similar mortgage loans with similar mortgagors (i) for other third parties, giving due consideration to customary and usual standards of practice of prudent institutional
residential mortgage lenders servicing their own loans or (ii) held in the Servicer’s own portfolio, whichever standard is higher; 
  

 2 

 (b) with a view to the maximization of the recovery on such Mortgage Loans on a net present value basis
and the best interests of the Trust or any Person to which the Mortgage Loans may be transferred by the Trust; 
  
 (c) without regard to (i) any relationship that the Servicer or any affiliate thereof may have with the related Mortgagor or any other party to the
transactions, (ii) the right of the Servicer to receive compensation or other fees for its services rendered pursuant to this Agreement, (iii) the obligations of the Servicer to make Monthly Advances and Servicing Advances, (iv) the ownership,
servicing or management by the Servicer or any affiliate thereof for others of any other mortgage loans or mortgaged properties, and (v) any debt the Servicer or any of its affiliates has extended to any mortgagor; and 
  
 (d) in accordance with the applicable state, local and federal laws, rules
and regulations. 
  
 Account: Each of the Custodial
Account, the Escrow Account, the Collection Account, the Payment Account (including each sub-account thereof), the Pre-Funding Account and the Capitalized Interest Account. 
  
 Accountant: A person engaged in the practice of accounting who (except when this Agreement provides that an
Accountant must be Independent) may be employed by or affiliated with the Master Servicer or an Affiliate of the Master Servicer. 
  
 Addition Notice: The notice pursuant to Section 2.7(b). 
  
 Adjustable Rate Mortgage Loan: A Mortgage Loan that contains a provision pursuant to which the Mortgage Rate is adjusted periodically. 

 
 Adjusted Class Principal Amount: With respect to any Payment Date
and a Class of Notes, prior to giving effect to principal payments made with respect to the Notes on that Payment Date, an amount equal to (a) the Class Principal Amount of such Class of Notes minus (b) the Class Impairment Amount of such
Class of Notes. 
  
 Adjustment Date: As to each Adjustable
Rate Mortgage Loan, the date on which the Mortgage Rate is adjusted in accordance with the terms of the related Mortgage Note and Mortgage. 
  
 Advance: Any Monthly Advance or Servicing Advance. 
  
 Affiliate: With respect to any specified Person, any other Person controlling or controlled by or under common control with such specified Person.
For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities,
by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 Agreement: This Transfer and Servicing Agreement, including all exhibits and schedules hereto, and all amendments and supplements hereto.

  

 3 

 Appraised Value: With respect to any Mortgage Loan, the lesser of (a) the value set forth on the
appraisal made in connection with the origination of the related Mortgage Loan as the value of the related Mortgaged Property, or (b) the amount paid by the Mortgagor for the Mortgaged Property, provided, however, that in the case of a
refinanced Mortgage Loan, such value shall be based solely on the appraisal made in connection with the origination of such Mortgage Loan. 
  
 Assignment of Mortgage: An assignment of the Mortgage, notice of transfer or equivalent instrument, in recordable form, sufficient under the laws
of the jurisdiction wherein the related Mortgaged Property is located to reflect the assignment of the Mortgage to the Indenture Trustee for the benefit of the Noteholders and the Ownership Certificateholder, which assignment, notice of transfer or
equivalent instrument may be in the form of one or more blanket assignments covering the Mortgage Loans secured by Mortgaged Properties located in the same jurisdiction, if permitted by law; provided, however, that none of the Issuer,
the Owner Trustee, the Master Servicer, the Securities Administrator or the Indenture Trustee shall be responsible for determining whether any such assignment is in recordable form. 
  
 Authorized Officer: With respect to the Issuer, any Trust officer who is appointed pursuant to Section 11.1 of the
Owner Trust Agreement or any officer of the Owner Trustee who is authorized to act for the Owner Trustee in matters relating to the Issuer and who is identified on the list of Authorized Officers delivered by the Owner Trustee to the Indenture
Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter). 
  
 Available Class Principal Payment Amount: With respect to any Payment Date and each Class of Notes, the excess, if any, of (a) the related Target
Class Principal Payment Amount over (b) the related Class Incremental Impairment Amount. 
  
 Available Class Principal Payment Fraction: With respect to any Payment Date and a Class of Notes, a fraction equal to (a) the Available Class Principal Payment Amount for such Class of Notes over (b) the
aggregate Available Class Principal Payment Amounts for all Classes of Notes. 
  
 Available Funds Rate: For any Payment Date, the per annum rate equal to the product of (a) the quotient of (i) the excess, if any, of (A) Interest Proceeds over (B) the amount by which any payment under Section
7.7(b)(i) exceeds the Interest Support Amount, if any, and (ii) the aggregate Adjusted Class Principal Amount of the Notes as of the first day of the related Interest Accrual Period, and (b) 360 divided by the actual number of days in the Interest
Accrual Period. 
  
 Bankruptcy Code: The United States
Bankruptcy Code of 1986, as amended, as codified in 11 U.S.C. §§ 101-1330. 
  
 Basis Risk Shortfall: With respect to a Class of Notes on any Payment Date, the sum of (a) the excess, if any, of (i) the amount that would have been the Current Interest for such Class of Notes at the Formula
Rate over (ii) the actual amount of Current Interest paid for such Class of Notes, (b) any excess described in clause (a) above for any prior Payment Date that remains unpaid (together with any unpaid interest thereon), and (c) interest accrued
during the Interest Accrual Period related to such Payment Date on the amount described in clause (b) above at the Formula Rate applicable to such Class of Notes. 
  

 4 

 Book-Entry Notes: As defined in the Indenture. 
  
 Business Day: Any day other than (a) a Saturday or a Sunday or (b) a
day on which banking institutions in the State of New York or the city in which the Corporate Trust Office of the Indenture Trustee or the Securities Administrator or the principal office of the Master Servicer or the Trust is located, are
authorized or obligated by law or executive order to be closed. 
  
 Cap Agreement: The agreement entered into by and between the Trust and the Cap Provider, dated as of                  ,
200  , providing for payments with respect to any Basis Risk Shortfall on the Notes to the extent not paid by Monthly Excess Cashflow. 
  
 Cap Payment: The aggregate of all payments received from the Cap Provider on a Payment Date pursuant to the Cap Agreement. 
  
 Cap Provider:
                            . 
  
 Capitalized Interest Account: The account created and maintained by the Indenture Trustee pursuant to Section 7.9
hereof. 
  
 Capitalized Interest Requirement: As to any
Payment Date to and including the Payment Date following the end of the Pre-Funding Period, an amount equal to the product of (a) the weighted average Net Mortgage Rate of the Mortgage Loans divided by 12, multiplied by (b) the excess of (i) the
balance in the Pre-Funding Account as of the Closing Date over (ii) the aggregate Scheduled Principal Balance of the Subsequent Mortgage Loans that will have a scheduled interest payment included in the related Interest Proceeds for such Payment
Date. 
  
 Certificate Paying Agent: As defined in the Owner
Trust Agreement. 
  
 Certificate Registrar: As defined in
the Owner Trust Agreement. 
  
 Certificate Register: As
defined in the Owner Trust Agreement. 
  
 Class: All Notes
bearing the same class designation. 
  
 Class A Notes: The
First NLC Securitization Trust 200  -  , Asset-Backed Notes, Series 200  -   Class A Notes issued under the Indenture. 
  
 [Class A-IO Notes:
                            ]. 
  
 Class Current Ratio: With respect to any Payment Date and a Class of Notes, after giving effect to payments made on
such Payment Date in respect to the Principal Payment Amount of such Class and in respect to Monthly Excess Cashflow to all Classes of Notes that are made ahead of payments to the subject Class of Notes, a fraction equal to (a) the Class Principal
Amount of such Class of Notes over (b) the sum of (i) the Class Principal Amount of such Class of Notes and (ii) the Class Principal Amount of all Classes of Notes that are senior to such Class of Notes. 
  

 5 

 Class Impairment Amount: With respect to any Payment date and a Class of Notes, prior to giving
effect to any principal payments made with respect to the Notes on the current Payment Date, the lesser of (a) the Class Principal Amount of such Class of Notes and (b) the amount, if any, by which the sum of the Class Principal Amount of such Class
of Notes and all Classes of Notes that are senior to such Class of Notes exceeds the aggregate principal balance of the Mortgage Loans as of the first day of the related Due Period. 
  
 Class Incremental Impairment Amount: With respect to any Payment Date and a Class of Notes, the excess, if any, of
(a) the amount, if any, by which (i) the sum of the Class Principal Amounts of such Class of Notes and all Classes of Notes that are senior to such Class of Notes prior to taking into account any reduction thereof due to all principal payments made
with respect to the Notes on such Payment Date, exceeds (ii) the sum of (A) the aggregate principal balance of the Mortgage Loans as of the last day of the Due Period for the current Payment Date (after giving effect to Principal Proceeds received,
and Realized Losses incurred, during such Due Period and the related Prepayment Period), and (B) the Principal Proceeds received during the related Due Period and Prepayment Period for the current Payment Date, minus (C) the Interest Support
Amount for the Current Payment Date, over (b) the Class Impairment Amount of such Class of Notes, if any, for the current Payment Date. 
  
 Class M Notes: The First NLC Securitization Trust 200  -  , Asset-Backed Notes, Series
200  -   Class M Notes issued under the Indenture. 
  
 Class Principal Amount: With respect to each Class of Notes, the aggregate of the Note Principal Amounts of all Notes of such Class at the date of determination. 
  
 Class Principal Payment Amount: With respect to any Payment Date and
each Class of Notes, the product of (a) the Available Class Principal Payment Fraction for such Class of Notes and (b) the Principal Payment Amount for the Payment Date. 
  
 Class Total Impairment Amount: With respect to any Payment Date and each Class of Notes, the sum of (a) the Class
Impairment Amount and (b) the Class Incremental Impairment Amount. 
  
 Clean-up Call: The right of the Servicer to purchase the Mortgage Loans pursuant to Section 9.2. 
  
 Closing Date:                  ,
200  . 
  
 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. 
  
 Collection Account: The account established and maintained pursuant to Section 7.4 hereof. 
  

 6 

 Combined Loan-to-Value Ratio or CLTV: For any Mortgage Loan in a junior lien position, the
fraction, expressed as a percentage, the numerator of which is the sum of (1) the original loan amount of the related Mortgage Loan and (2) any outstanding principal balance of mortgage loans the liens on which are equal in priory or senior to the
lien on such related Mortgage Loan (such sum calculated at the date of origination of such related Mortgage Loan), and the denominator of which is the lesser of (A) the Appraised Value of the related Mortgaged Property and (B) the sale price of the
related Mortgaged Property at time of origination of the Mortgage Loan. 
  
 Commission: The Securities and Exchange Commission. 
  
 Compensating Interest Payment: With respect to any Payment Date, an amount equal to the lesser of (a) the aggregate Prepayment Interest Shortfall with respect to such Payment Date and (b) the Subservicing Fee payable to the Servicer
in respect of such Payment Date. 
  
 Condemnation Proceeds:
All awards or settlements in respect of a Mortgaged Property, whether permanent or temporary, partial or entire, by exercise of the power of eminent domain or condemnation, to the extent not required to be released to a Mortgagor in accordance with
the terms of the related Mortgage Loan Documents. 
  
 Control: The meaning specified in Section 8-106 of the UCC. 
  
 Convertible Mortgage Loan: Those Mortgage Loans which contain a provision allowing the Mortgagor to convert the Mortgage Loan from an Adjustable Rate Mortgage Loan to a Fixed Rate Mortgage Loan. 
  
 Corporate Trust Office: With respect to: 
  
 (a) the Securities Administrator, the principal corporate trust office at
which, at any particular time, its corporate trust business in connection with this Agreement shall be administered, which office, at the date of the execution of this Agreement, is located at
                            , Attention:
                            , or at such other address as the Securities Administrator may designate
from time to time by notice to Noteholders, the Indenture Trustee, the Depositor, the Sellers, the Master Servicer and the Servicer. With respect to the Securities Administrator, the Note Registrar and the Certificate Registrar and presentment of
Notes or the Ownership Certificate for registration of transfer, exchange or final payment:
                            , Attention:
                            . 
  
 (b) the Indenture Trustee, the principal office of the Indenture Trustee at which at any particular time its corporate trust
business shall be administered, which office at the date of execution of this Agreement is located at
                            , Attention:
                            , or at such other address as the Indenture Trustee may designate from
time to time by notice to the Noteholders and the Trust, or the principal corporate trust office of any successor Indenture Trustee at the address designated by such successor Indenture Trustee by notice to the Noteholders and the Trust. 

 
 Co-Underwriter:
                            . 
  
  

 7 

 Cumulative Realized Loss Rate: With respect to any Payment Date, a fraction, expressed as a
percentage, obtained by dividing (a) the aggregate amount of all Realized Losses incurred on the Mortgage Loans from the Cut-off Date through the last day of the related Due Period by (b) the aggregate Cut-off Date Balance of the Mortgage Loans.

  
 Current Fraction: With respect to any Payment Date and
a Class of Notes, prior to giving effect to principal payments on the Notes made on such Payment Date, a fraction equal to (a) the Adjusted Class Principal Amount of such Class of Notes over (b) the aggregate Adjusted Class Principal Amount of all
of the Notes; provided that for the initial Payment Date, the Current Fraction will equal the Target Fraction. 
  
 Current Interest: With respect to any Payment Date and each Class of Notes, the interest accrued during the related Interest Accrual Period at the
applicable Note Interest Rate for such Class of Notes on the Class Principal Amount of such Class immediately prior to such Payment Date; provided, however, that in the case of the Class M Notes and any Payment Date, Current Interest
shall be reduced by the amount of Deferred Interest for such Class for such Payment Date. 
  
 Custodial Account: The account or accounts established and maintained pursuant to Section 4.4 hereof. 
  
 Custodial Agreement: The agreement, dated as of             
    , 200  , by and between the Custodian and the Indenture Trustee governing the retention of the originals of each Mortgage Note, Mortgage, Assignment of Mortgage and other Mortgage Loan Documents.

  
 Custodian:
                            , as the custodian under the Custodial Agreement, or its successor in
interest or assigns, or any successor to the Custodian under the Custodial Agreement as provided therein. 
  
 Cut-off Date: With respect to the Initial Mortgage Loans [ - ], and with respect to the Subsequent Mortgage Loans, the date on which such
Subsequent Mortgage Loans are transferred to the Trust Fund. 
  
 Cut-off Date Balance: As to any Mortgage Loan, the Scheduled Principal Balance thereof as of the close of business on the Cut-off Date. 
  
 Debt Service Reduction: With respect to any Mortgage Loan, a reduction of the Scheduled Monthly Payment that the related Mortgagor is obligated to
pay on any Due Date as a result of any proceeding under bankruptcy law or any similar proceeding. 
  
 Deferred Interest: For any Class M Notes and any Payment Date, the sum of (a) the interest accrued during the related Interest Accrual Period at
the applicable Formula Rate on the Class Impairment Amount for that Class, (b) any amount described in clause (a) for a prior Payment Date remaining unpaid (together with any unpaid interest thereon), and (c) interest accrued on the amount described
in clause (b) above during the Interest Accrual Period related to such Payment Date at the applicable Formula Rate. 
  

 8 

 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 the Mortgage Loan, or any reduction in the amount of principal to be paid in connection with any Scheduled Monthly Payment that results in a
permanent forgiveness of principal, which valuation or reduction results from an order of such court which is final and non-appealable in a proceeding under the Bankruptcy Code. 
  
 Definitive Notes: As defined in the Indenture. 
  
 Deleted Mortgage Loan: A Mortgage Loan that is repurchased from the Trust Fund or as to which one or more Qualified
Substitute Mortgage Loans are substituted therefor. 
  
 Delinquency Rate: For any Due Period, the fraction, expressed as a percentage, the numerator of which is the aggregate outstanding principal balance of all Mortgage Loans that are 60 or more days delinquent (including all
foreclosures and REO Properties) as of the close of business on the last day of such Due Period, and the denominator of which is the aggregate principal balance of the Mortgage Loans as of the close of business on the last day of such Due Period.

  
 Depositor: First NLC Securitization, Inc., a Delaware
corporation, or its successors in interest. 
  
 Depository:
The initial Depository shall be The Depository Trust Company, the nominee of which is Cede & Co., as the registered Holder of the Book-Entry Notes. The Depository shall at all times be a “clearing corporation” as defined in Section
8-102(a)(5) of the UCC of the State of New York and registered as a “clearing agency” pursuant to Section 17A of the Exchange Act as amended. 
  
 Determination Date: With respect to any Payment Date, the      day of each month in which such Payment Date occurs, or
if such      day is not a Business Day, the next preceding Business Day. 
  
 Due Date: The day of the month on which the Scheduled Monthly Payment is due on a Mortgage Loan, exclusive of any days of grace, as specified in
the related Mortgage Note. 
  
 Due Period: With respect to
any Payment Date and a Mortgage Loan, the period commencing on the second day of the month immediately preceding the month in which such Payment Date occurs (or the day following the Cut-off Date in respect of the initial Due Period) and ending on
the first day of the calendar month in which such Payment Date occurs. 
  
 EDGAR: The “Electronic Data Gathering, Analysis, and Retrieval” system of the Commission, which performs automated collection, validation, indexing, acceptance, and forwarding of submissions by companies and others who are
required by law to file forms with the Commission. 
  
 Eligible
Account: Any of (a) an account or accounts maintained with a federal or state chartered depository institution or trust company the short-term unsecured debt obligations of which (or, in the case of a depository institution or trust company that
is the principal subsidiary 
  

 9 

 of a holding company, the debt obligations of such holding company) have the highest short-term ratings of each Rating
Agency at the time any amounts are held on deposit therein, (b) 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), provided that any such
deposits not so insured shall be maintained in an account at a depository institution or trust company whose commercial paper or other short term debt obligations (or, in the case of a depository institution or trust company which is the principal
subsidiary of a holding company, the commercial paper or other short term debt obligations of such holding company) have been rated by each Rating Agency in its highest short-term rating category, (c) a trust account or accounts maintained with (i)
the trust department of a federal or state chartered depository institution or (ii) a trust company, acting in its fiduciary capacity, or (d) any other account acceptable to each Rating Agency. Eligible Accounts may bear interest, and may include,
if otherwise qualified under this definition, accounts maintained with the Indenture Trustee, the Securities Administrator or the Master Servicer. 
  
 Eligible Investments: Any dollar-denominated investment that is one or more of the following (and may include investments for which the Indenture
Trustee, the Securities Administrator and/or their Affiliates, or the Master Servicer and/or its Affiliates, provides services or receives compensation): 
  
 (a) cash; 
  
 (b) direct registered obligations of, and registered obligations the timely payment of principal and interest on which is fully and expressly guaranteed
by, the United States or any agency or instrumentality of the United States the obligations of which are expressly backed by the full faith and credit of the United States; 
  
 (c) demand and time deposits in, interest bearing trust accounts at, certificates of deposit of, bankers’ acceptances
payable within 183 days of issuance issued by, or Federal funds sold by any depository institution or trust company incorporated under the laws of the United States or any state thereof and subject to supervision and examination by Federal and/or
state banking authorities so long as the commercial paper and/or the debt obligations of such depository institution or trust company (or, in the case of the principal depository institution in a holding company system, the commercial paper or debt
obligations of such holding company) at the time of such investment or contractual commitment providing for such investment have a credit rating of not less than “AA+” by S&P, “Aa2” by Moody’s (and if rated
“Aa2”, such rating is not on watch for downgrade by Moody’s), and “AA+” by Fitch (if rated by Fitch) in the case of long-term debt obligations, or “A-1+” by S&P, “P-1” by Moody’s (and if rated
“P-1”, such rating is not on watch for downgrade by Moody’s) and “F1+” by Fitch (if rated by Fitch) in the case of commercial paper and short-term debt obligations; provided that (i) in each case, the issuer thereof
must have at the time of such investment or contractual commitment providing for such investment a long-term credit rating of not less than “Aa2” by Moody’s (and if rated “Aa2”, such rating is not on watch for downgrade by
Moody’s) and “AA+” by Fitch (if rated by Fitch) and (ii) in the case of commercial paper and short-term debt obligations with a maturity of longer than 91 days, the issuer thereof must also have at the time of such investment or
contractual commitment providing for such investment a long-term credit rating of not less than “AA+” by S&P and “AA+” by Fitch (if rated by Fitch); 
  

 10 

 (d) unleveraged repurchase obligations (if treated as debt for U.S. Federal income tax purposes by the
issuer) with respect to (i) any security described in clause (b) above or (ii) any other registered security issued or guaranteed by an agency or instrumentality of the United States (in each case without regard to the final maturity of such
security), in either case entered into with a U.S. Federal or state depository institution or trust company (acting as principal) described in clause (c) above or entered into with a corporation (acting as principal) whose long-term rating at the
time of such investment or contractual commitment providing for such investment is not less than “AA+” by S&P, “Aa2” by Moody’s (and if rated “Aa2”, such rating is not on watch for downgrade by Moody’s)
and “AA+” by Fitch (if rated by Fitch) or whose short-term credit rating at the time of such investment or contractual commitment providing for such investment is “A-1+” by S&P, “P-1” by Moody’s (and if rated
“P-1”, such rating is not on watch for downgrade by Moody’s) and “F1+” by Fitch (if rated by Fitch) at the time of such investment; provided that (A) in each case, the issuer thereof must have at the time of such
investment or contractual commitment providing for such investment a long-term credit rating of not less than “Aa2” by Moody’s (and if rated “Aa2”, such rating is not on watch for downgrade by Moody’s) “AA+”
by Fitch (if rated by Fitch) and (B) if such security has a maturity of longer than 91 days, the issuer thereof must also have at the time of such investment or contractual commitment providing for such investment a long-term credit rating of not
less than “AA+” by S&P, “Aa2” by Moody’s (and if rated “Aa2”, such rating is not on watch for downgrade by Moody’s) and “AA+” by Fitch (if rated by Fitch); 
  
 (e) registered debt securities bearing interest or sold at a discount issued
by any corporation incorporated under the laws of the United States or any state thereof that have a credit rating at the time of such investment or contractual commitment providing for such investment of not less than “AA” by S&P,
“Aa2” by Moody’s (and if rated “Aa2”, such rating is not on watch for downgrade by Moody’s) and “AA+” by Fitch (if rated by Fitch); 
  
 (f) commercial paper or other short-term obligations with a maturity of not more than 183 days from the date of issuance and
having at the time of such investment or contractual commitment providing for such investment a credit rating of “A-1+” by S&P and “F1+” by Fitch (if rated by Fitch); provided that (i) in each case, the issuer thereof
must have at the time of such investment or contractual commitment providing for such investment a long-term credit rating of not less than “Aa2” by Moody’s (and if rated “Aa2”, such rating is not on watch for downgrade by
Moody’s) and “AA+” by Fitch (if rated by Fitch) and (ii) if such security has a maturity of longer than 91 days, the issuer thereof must also have at the time of such investment or contractual commitment providing for such investment
a long-term credit rating of not less than “AA” by S&P and “AA+” by Fitch (if rated by Fitch); 
  
 (g) Reinvestment Agreements (as defined herein) issued by any bank (if treated as a deposit by such bank), or a registered Reinvestment Agreement issued
by any insurance company or other corporation or entity organized under the laws of the United States or any state thereof (if treated as debt for tax purposes by the issuer), in each case, that has a credit rating of not less than “A-1+”
by S&P, “P-1” by Moody’s (and if rated “P-1”, such rating is not on watch for downgrade by Moody’s) and “F1+” by Fitch (if rated by Fitch); provided that (i) in each case, the issuer thereof must
have at the time of such investment or contractual commitment providing for such investment a long-term credit rating of not less than “Aa2” by Moody’s (and if rated “Aa2”, such rating is not on watch for downgrade by
Moody’s) and not less than “AA+” by Fitch 
  

 11 

 (if rated by Fitch) and (ii) if such security has a maturity of longer than 91 days, the issuer thereof must also have at
the time of such investment or contractual commitment providing for such investment a long-term credit rating of not less than “AA” by S&P and “AA+” by Fitch (if rated by Fitch); and 
  
 (h) interests in any money market fund or similar investment vehicle having
at the time of investment therein the highest credit rating assigned by each of the Rating Agencies; provided, that such fund or vehicle is formed and has its principal office outside the United States and is not engaged in a United
States trade or business; and, in each case (other than clause (a)), with a final maturity (giving effect to any applicable grace period) no later than the Business Day immediately preceding the Payment Date next following the Due Period in which
the date of investment occurs; provided, that Eligible Investments may not include (i) any interest-only security, any security purchased at a price in excess of 100% of the par value, (ii) any floating rate security whose interest
rate is inversely or otherwise not proportionately related to an interest rate index or is calculated as other than the sum of an interest rate index plus a spread, (iii) securities subject to an offer, (iv) any security with a rating from
S&P which includes the subscript “p,” “pi,” “q,” “r” or “t”, or (v) any investment, the income from which is or will be subject to deduction or withholding for or on account of any withholding or
similar tax. 
  
 ERISA: The Employee Retirement Income
Security Act of 1974, as amended. 
  
 Errors and Omissions
Insurance Policy: An errors and omissions insurance policy to be maintained by the Servicer pursuant to Section 4.3. 
  
 Escrow Account: The separate account or accounts created and maintained pursuant to Section 4.7 hereof. 
  
 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 related document. 
  
 Exchange Act: The Securities Exchange Act of 1934, as amended. 
  
 Fannie Mae: Fannie Mae, a federally chartered and privately owned corporation organized and existing under the Federal National Mortgage Association Charter Act, or any successor thereto. 
  
 FDIC: The Federal Deposit Insurance Corporation, or any successor
thereto. 
  
 FICO: The credit score used for underwriting a
Mortgage Loan. 
  
 Fidelity Bond: A fidelity bond to be
maintained by the Servicer pursuant to Section 4.13. 
  
  

 12 

 Final Certification: [A certification as to the completeness of the Mortgage File substantially in
the form of Exhibit L attached hereto provided by the Indenture Trustee within [ - ] days of the Closing Date (or, in the case of the Subsequent Mortgage Loans, the applicable Subsequent Sale Date) pursuant to Section 2.5(c) hereof.]

  
 Financial Asset: The meaning specified in Section
8-102(a) of the UCC. 
  
 Fitch: Fitch, Inc., or any
successor in interest. 
  
 Formula Principal Payment
Amount: With respect to any Payment Date, an amount equal to the sum of (a) the Principal Proceeds received during the related Due Period and (b) the aggregate Class Incremental Impairment Amounts for all Classes of Notes, minus (c) the
Interest Support Amount and the Overcollateralization Release Amount on such Payment Date. 
  
 Formula Rate: For each Class of Notes, the lesser of (a) One Month LIBOR plus the applicable margin for such Class of Notes and (b) [ - ]%. 
  
 Freddie Mac: The entity formerly known as the Federal Home Loan Mortgage Corporation (FHLMC), or any successor
thereto. 
  
 Gross Margin: With respect to each Adjustable
Rate Mortgage Loan, the fixed percentage amount set forth in the related Mortgage Note which is added to the Index in order to determine the related Mortgage Rate, as set forth in the Mortgage Loan Schedule. 
  
 HUD: The United States Department of Housing and Urban Development, or
any successor thereto. 
  
 Indenture: The Indenture dated
as of                          , 200  , among the Issuer, the Securities Administrator and the
Indenture Trustee, as such may be amended or supplemented from time to time. 
  
 Indenture Event of Default: Means the events of default as defined in Section 5.1 of the Indenture. 
  
 Indenture Trustee:
                                        ,
or any successor in interest. 
  
 Indenture Trustee Fee:
$                     to be paid by the Master Servicer from the Master Servicing Fee. 
  
 Independent: When used with respect to any Accountants, a Person who
is “independent” within the meaning of Rule 2-01(b) of the Securities and Exchange Commission’s Regulation S-X. When used with respect to any other Person, a Person who (a) is in fact independent of another specified Person and any
Affiliate of such other Person, (b) does not have any material direct financial interest in such other Person or any Affiliate of such other Person, and (c) is not connected with such other Person or any Affiliate of such other Person as an officer,
employee, promoter, underwriter, trustee, partner, director or Person performing similar functions. 
  

 13 

 Index: The index specified in the related Mortgage Note for calculation of the Mortgage Rate
thereof. 
  
 Initial Certification: [A certification as to
the completeness of the Mortgage File substantially in the form of Exhibit K hereto provided by the Indenture Trustee on the Closing Date (or, in the case of the Subsequent Mortgage Loans, the applicable Subsequent Sale Date) pursuant to
Section 2.5(b) hereof.] 
  
 Initial Mortgage Loan: A
Mortgage Loan that is conveyed to the Trust Fund pursuant to this Agreement on the Closing Date. 
  
 Insurance Proceeds: With respect to each Mortgage Loan, proceeds of insurance policies insuring the Mortgage Loan or the related Mortgaged
Property, if applicable, including the proceeds of any hazard or flood insurance policy. 
  
 Interest Accrual Period: With respect to any Payment Date, the period commencing on the Payment Date in the month immediately preceding the month in which such Payment Date occurs (or, in the case of the first
Payment Date, the Closing Date) and ending at the close of business on the calendar day immediately preceding such Payment Date. 
  
 Interest Proceeds: With respect to any Payment Date, the sum of: 
  
 (i) all interest collected (other than the interest portion of Prepayment Premiums) or interest advanced in
respect of Scheduled Monthly Payments with respect to the related Due Period by the Servicer, the Master Servicer or the Indenture Trustee, minus: (A) previously unreimbursed Advances due to the Servicer, the Master Servicer or the Indenture
Trustee (solely in its capacity as successor Master Servicer) to the extent allocable to interest and the allocable portion of previously unreimbursed Advances with respect to the Mortgage Loans, (B) the Servicing Rights Fee, Master Servicing Fee
and the Owner Trustee Fee with respect to such Mortgage Loans and (C) any amounts withdrawn by the Master Servicer or the Servicer from the Collection Account in respect of the Issuer’s reimbursement and indemnification obligations to the
Master Servicer and the Servicer hereunder; 
  
 (ii) any Compensating Interest Payments or payments in respect of Prepayment Interest Shortfalls paid by the Servicer, the Master Servicer or the Indenture Trustee (solely in its capacity as successor Master Servicer) with respect to the
related Prepayment Period with respect to the Mortgage Loans; 
  
 (iii) the portion of any Repurchase Price or Substitution Adjustment Amount paid with respect to the Mortgage Loans during the related Prepayment Period allocable to interest; and 
  
 (iv) all Liquidation Proceeds (less liquidation expenses),
Insurance Proceeds and any other recoveries collected with respect to the Mortgage Loans during the related Prepayment Period, to the extent allocable to interest. 
  

 14 

 Interest Support Amount: With respect to any Payment Date, the lesser of (a) the excess, if any,
of (i) the Target Available Funds Amount for such Payment Date over (ii) the excess, if any, of the Interest Proceeds for such Payment Date over the payment payable under Section 7.7(b)(i) and (b) the Principal Proceeds for such Payment Date. The
Interest Support Amount, if any, on a Payment Date will be funded with the Principal Proceeds for such Payment Date. 
  
 Interim Funder: With respect to each MERS Designated Mortgage Loan, the Person named on the MERS® System as the interim funder pursuant to the MERS Procedures Manual. 
  
 Intervening Assignments: The original intervening assignments of the
Mortgage, notices of transfer or equivalent instrument. 
  
 Investor: With respect to each MERS Designated Mortgage Loan, the Person named on the MERS® System as the investor pursuant to the MERS Procedures Manual. 
  
 Lead Underwriter:
                                        .

  
 LIBOR: The London interbank offered rate for one-month
United States dollar deposits established on each LIBOR Determination Date pursuant to Schedule C hereto. 
  
 LIBOR Business Day: As defined in Schedule C. 
  
 LIBOR Determination Date: As defined in Schedule C. 
  

Reference Banks: As defined in Schedule C. 
  
 Liquidated Mortgage Loan: With respect to any Payment Date, a defaulted Mortgage Loan (including any REO Property) which was liquidated in the
Prepayment Period preceding the month of such Payment Date and as to which the Servicer has certified that it has received all amounts it expects to receive in connection with the liquidation of such Mortgage Loan, including the final disposition of
any REO Property. 
  
 Liquidation Expenses: With respect to
a Mortgage Loan in liquidation, unreimbursed expenses paid or incurred by or for the account of the Servicer and not recovered by the Servicer under any PMI Policy for reasons other than the Servicer’s failure to ensure the maintenance of or
compliance with a PMI Policy, such expenses including (a) property protection expenses, (b) property sales expenses, (c) foreclosure and sale costs, including court costs and reasonable attorneys’ fees, and (d) similar expenses reasonably paid
or incurred in connection with liquidation. 
  
 Liquidation
Proceeds: Cash received in connection with the liquidation of a defaulted Mortgage Loan, whether through the sale or assignment of such Mortgage Loan, trustee’s sale, foreclosure sale or otherwise, or the sale of the related Mortgaged
Property if the Mortgaged Property is acquired in satisfaction of the Mortgage Loan. 
  

 15 

 Loan-to-Value Ratio or LTV: With respect to any Mortgage Loan secured by a first lien mortgage,
the ratio of the original loan amount of the Mortgage Loan at its origination (unless otherwise indicated) to the Appraised Value of the Mortgaged Property. 
  
 Margin Stepup Date: The first Payment Date on which the Scheduled Principal Balance of the Mortgage Loans as of the beginning of the related Due
Period is equal to or less than [ - ]% of the aggregate Cut-off Date Balance. 
  
 Master Servicer:                              and its
successors and assigns in its capacity as master servicer. 
  
 Master Servicer Errors and Omissions Insurance Policy: An errors and omissions insurance policy to be maintained by
                             pursuant to Section 6.2. 
  
 Master Servicer Event of Default: As defined in Section 6.14(a).

  
 Master Servicer Report: The report provided by the
Master Servicer to the Securities Administrator pursuant to Section 7.6. 
  
 Master Servicing Fee: As to each Mortgage Loan and any Payment Date, an amount equal to (i) one twelfth of the Master Servicing Fee Rate multiplied by (ii) the Scheduled Principal Balance of such Mortgage Loan
as of the Due Date in the prior calendar month. 
  
 Master
Servicing Fee Rate: [ - ]% per annum. 
  
 Material
Defect: With respect to any Mortgage Loan, as defined in Section 2.5(d). 
  
 Maturity Date: With respect to any Class of Notes, the Payment Date in              20    . 
  
 MERS: MERSCORP, Inc., its successor and assigns. 
  
 MERS Designated Mortgage Loan: A Mortgage Loan for which (a) the
Originator has designated or will designate MERS as, and has taken or will take such action as is necessary to cause MERS to be, the mortgagee of record, as nominee for the Originator and its successors and assigns, in accordance with MERS
Procedures Manual and (b) the applicable Seller has designated or will designate the Indenture Trustee as the Investor on the MERS® System. 
  
 MERS Procedures Manual: The MERS Procedures Manual, as it may be amended, supplemented or otherwise modified from time to time. 
  
 MERS Report: The report from the MERS® System listing MERS Designated Mortgage Loans and other information.

  
 MERS® System: MERS mortgage electronic registry system, as more particularly described in
the MERS Procedures Manual. 
  

 16 

 MOM Loan: Any Mortgage Loan as to which MERS acts 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 Advance: With respect to any Mortgage Loan on any Determination Date, an amount equal to the portion of each Scheduled Monthly Payment due
in the Due Period to which such Determination Date relates that is delinquent at the close of business on such Determination Date. 
  
 Monthly Excess Cashflow: With respect to a Payment Date, the sum of (a) any Interest Proceeds remaining after application pursuant to clauses (i)
through (xviii) of Section 7.7(b), (b) any Principal Payment Amount remaining after application pursuant to clause (i) of Section 7.7(c) and (c) the Overcollateralization Release Amount, if any. 
  
 Moody’s: Moody’s Investors Service, Inc. 
  
 Mortgage: The mortgage, deed of trust or other instrument securing a
Mortgage Note, which creates a lien on an estate in fee simple or leasehold estate in real property securing the Mortgage Note. 
  
 Mortgage File: The mortgage documents listed on Exhibit B pertaining to a particular Mortgage Loan. 
  
 Mortgage Loan: An individual Mortgage Loan which is the subject of
this Agreement, each Mortgage Loan sold and subject to this Agreement being identified on the Mortgage Loan Schedule hereto, which Mortgage Loan includes without limitation the Mortgage File, the Scheduled 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. The Subsequent Mortgage Loans subject to this
Agreement will be identified on each Subsequent Mortgage Loan Schedule to be annexed hereto as Schedule A on each Subsequent Sale Date. 
  
 Mortgage Loan Documents: The documents referred to in Section (a) of Exhibit B. 
  
 Mortgage Loan Remittance Rate: With respect to each Mortgage Loan, the
related Mortgage Rate less the Subservicing Fee Rate. 
  
 Mortgage Loan Schedule: The list of Mortgage Loans (as from time to time amended by the Depositor to reflect the addition of Qualified Substitute Mortgage Loans and Subsequent Mortgage Loans and the deletion of Deleted Mortgage Loans
pursuant to the provisions of this Agreement) transferred to the Indenture Trustee as part of the Trust Fund and from time to time subject to this Agreement attached hereto as Schedule A. 
  
 Mortgage Note: The original executed note or other evidence of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan, including any riders or addenda thereto. 
  

 17 

 Mortgage Rate: With respect to each Mortgage Loan, the annual rate at which interest accrues on
such Mortgage Loan from time to time in accordance with the provisions of the related Mortgage Note, net of any interest premium charged by the mortgagee to obtain or maintain any PMI Policy, as such premium is determined by the Servicer and as paid
by the Servicer from interest collections on such Mortgage Loan. 
  
 Mortgaged Property: The real property securing repayment of the debt evidenced by a Mortgage Note. 
  
 Mortgagor: The obligor on a Mortgage Note. 
  
 Net Mortgage Rate: With respect to any Mortgage Loan, the Mortgage Rate thereof reduced by the sum of the Servicing Rights Fee Rate and the Master
Servicing Fee Rate for such Mortgage Loan. 
  
 Non-recoverable
Advance: Any Servicing Advance (in respect of the Servicer only) or Monthly Advance previously made or proposed to be made in respect of a Mortgage Loan by the Servicer or Master Servicer which, in the reasonable discretion of the Servicer or
Master Servicer will not or, in the case of a proposed Servicing Advance or Monthly Advance, would not, ultimately be recoverable by the Servicer or Master Servicer from the related Mortgagor, related Liquidation Proceeds, Condemnation Proceeds,
Insurance Proceeds, REO Disposition Proceeds or otherwise. The determination by the Servicer that all or a portion of a Servicing Advance or Monthly Advance would be a Non-recoverable Advance shall be evidenced by an Officer’s Certificate
delivered to the Master Servicer setting forth such determination and a reasonable explanation thereof. 
  
 Note or Notes: Any of the Class A Notes and the Class M Notes issued pursuant to the Indenture. 
  
 Noteholder: The person in whose name a Note is registered on the books
of the Note Registrar, except that, solely for the purposes of taking any action or giving any consent pursuant to this Agreement, any Note registered in the name of the Depositor, the Master Servicer, the Securities Administrator or the Indenture
Trustee or any Affiliate thereof shall be deemed not to be outstanding in determining whether the requisite percentage necessary to effect any such consent has been obtained. The Master Servicer, the Securities Administrator, the Note Registrar and
the Indenture Trustee may conclusively rely upon and shall be protected in relying on certifications by the Depositor in determining whether any Note is registered to an Affiliate of the Depositor. In the absence of such certification, the Master
Servicer, the Securities Administrator, the Note Registrar and the Indenture Trustee may conclusively assume that a Note is not held by an affiliate of the Depositor. 
  
 Note Interest Rate: For each Class of Notes, the lesser of (a) the related Formula Rate and (b) the Available Funds
Rate. 
  
 Note Principal Amount: With respect to any Note,
the initial principal amount thereof on the Closing Date, less the amount of all principal previously paid with respect to such Note. 
  
 Note Register: As defined in the Indenture. 
  

 18 

 Note Registrar: As defined in the Indenture. 
  
 Officer’s Certificate: A certificate (a) signed by the Chairman
of the Board, the Vice Chairman of the Board, the President, a Managing Director, a Vice President, an Assistant Vice President, the Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant Secretaries of the Depositor or the
Servicer, as the case may be, or (b), if provided for in this Agreement, signed by a Servicing Officer and delivered to the Depositor, the Master Servicer, the Securities Administrator, and the Indenture Trustee, as the case may be, as required by
this Agreement. 
  
 Operative Agreements: The Owner Trust
Agreement, the Custodial Agreement, the Certificate of Trust of the Issuer, the Indenture, the Cap Agreement, this Agreement and each other document contemplated by any of the foregoing to which the Depositor, the Originator, the Sellers, the
Servicing Rights Owner, the Custodian, the Servicer, the Owner Trustee, the Securities Administrator, the Indenture Trustee or the Trust is a party. 
  
 Opinion of Counsel: A written opinion of counsel, which shall not be at the expense of the Master Servicer, the Securities Administrator or the
Indenture Trustee, who may be counsel for the Sellers, the Originator, the Servicer, the Servicing Rights Owner, the Custodian, the Depositor, the Master Servicer, the Securities Administrator or the Indenture Trustee, including in-house counsel,
reasonably acceptable to the Securities Administrator, the Indenture Trustee and/or the Master Servicer, as applicable; provided, however, that with respect to the interpretation or application of the federal income tax or ERISA
matters, such counsel must be Independent of the Securities Administrator, the Indenture Trustee and the Master Servicer. 
  
 Optional Termination Date: The date on which the Servicing Rights Owner exercises its right to purchase the assets of the Trust pursuant to Section
9.2. 
  
 Originator: First NLC Financial Services, LLC, its
successors in interest and assigns or any successor to the Originator under this Agreement. 
  
 Overall Target Ratio: With respect to any Class of Notes, a fraction equal to (a) the Target Fraction for such Class of Notes over (b) the sum of the Target Fractions for such Class of Notes and all other
Classes of Notes that will be paid simultaneously with such Class of Notes pursuant to clause (ii) of Section 7.7(d). 
  
 Overcollateralization Amount: As of any Payment Date, the amount by which the aggregate Scheduled Principal Balance of the Mortgage Loans as of the
last day of the related Due Period exceeds the aggregate Class Principal Amounts of the Notes after payments are made on the Notes on such Payment Date. 
  
 Overcollateralization Build Amount: With respect to any Payment Date, the positive difference, if any, between the Target Overcollateralization
Amount and the Overcollateralization Amount. 
  
 Overcollateralization Release Amount: For any Payment Date, an amount equal to the lesser of (a) the Principal Proceeds received for that Payment Date, minus the Interest Support Amount for such Payment Date, and (b) the
excess of (i) the Overcollateralization Amount for that Payment Date (assuming all of the Principal Proceeds less the Interest Support Amount is applied as a payment on the Notes on that Payment Date) over (ii) the Target Overcollateralization
Amount for that Payment Date. 
  

 19 

 Owner Trust Agreement: The Owner Trust Agreement, dated as of
                         , 200  , among the Depositor, the Securities Administrator and the Owner
Trustee, as such may be amended or supplemented from time to time. 
  
 Owner Trustee:                             , and any successor in interest, not in its
individual capacity, but solely as owner trustee under the Owner Trust Agreement. 
  
 Owner Trustee Fee: The annual fee of $                     to be paid on the Payment Date in March of
each year. 
  
 Ownership Certificate: As defined in the
Owner Trust Agreement. 
  
 Ownership Certificateholder: The
registered holder of the Ownership Certificate as recorded on the books of the Certificate Registrar. In the absence of prior written notice from the Depositor, the Securities Administrator, the Certificate Paying Agent and the Certificate
Registrar, the Indenture Trustee may conclusively assume that the Ownership Certificate is not registered to an Affiliate of the Depositor. 
  
 Paying Agent: As defined in the Indenture. 
  
 Payment Date: The      day of each month or, if such      day is not a Business Day, the next
succeeding Business Day, commencing in                      200  . 
  
 Payment Account: The separate account established and maintained
pursuant to Section 7.6. 
  
 Percentage Interest: Shall
equal (a) in the case of the Ownership Certificate, the percentage interest on the face of such certificate or (b) in the case of any Note, the percentage interest set forth on the face thereof or equal to the percentage obtained by dividing the
initial principal amount of such Note by the initial Class Principal Amount of all Notes of the same Class. 
  
 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. 
  
 PMI Policy: A policy of primary mortgage guaranty insurance issued by a Qualified Insurer, as required by this Agreement with respect to certain Mortgage Loans. 
  
 PPMI Policy: A policy of mortgage guaranty insurance issued by a
mortgage insurer in which a party other than the Mortgagor is responsible for the premiums associated with such mortgage insurance policy. 
  
 Pre-Funding Account: The separate account established and maintained pursuant to Section 7.8 hereof. 
  

 20 

 Pre-Funded Amount: $ [ - ]. 
  
 Pre-Funding Period: The period beginning on the Closing Date and ending on the earlier of (i) the close of business
on [ - ], and (ii) the date on which there is $[ - ] or less (exclusive of investment earnings) remaining in the Pre-Funding Account. 
  
 Prepayment Interest Shortfall: As to any Servicer Remittance Date and each Mortgage Loan subject to a Principal Prepayment received during the
Prepayment Period, the amount, if any, by which one month’s interest at the related Mortgage Loan Remittance Rate on such Principal Prepayment exceeds the amount of interest paid in connection with such Principal Prepayment. 
  
 Prepayment Period: With respect to any Payment Date, the calendar
month preceding the month of such Payment Date. 
  
 Prepayment
Premium: With respect to a Mortgage Loan, the prepayment charge or penalty interest required to be paid by the Mortgagor in connection with a prepayment of the related Mortgage Loan, as provided in the related Mortgage Note or Mortgage, and as
specified on the related Mortgage Loan Schedule. 
  
 Prime
Rate: The prime rate of the United States money center commercial banks as published in The Wall Street Journal, Northeast Edition. 
  
 Principal Payment Amount: For any Payment Date, an amount equal to the excess, if any, of (a) the Principal Proceeds, over (b) the
Overcollateralization Release Amount and the Interest Support Amount, if any, for such Payment Date. 
  
 Principal Prepayment: Any payment or other recovery of principal on a Mortgage Loan which is received in advance of its scheduled Due Date,
including any Prepayment Premium thereon. 
  
 Principal
Proceeds: With respect to any Payment Date, the sum of: 
  
 (i) all principal collected or principal advanced in respect of Scheduled Monthly Payments on the Mortgage Loans during the related Due Period whether by the Servicer, the Master Servicer or the Indenture Trustee
(less unreimbursed Advances due to the Master Servicer, the Servicer or the Indenture Trustee (solely in its capacity as Successor Master Servicer), to the extent allocable to principal and any unreimbursed Servicing Advances), minus any
amounts withdrawn by the Master Servicer or the Servicer from the Collection Account in respect of the Issuer’s reimbursement and indemnification obligations to the Master Servicer and the Servicer hereunder; 
  
 (ii) all Principal Prepayments in full or in part received
during the related Prepayment Period on the Mortgage Loans; 
  
 (iii) the Scheduled Principal Balance of each Mortgage Loan that was purchased by the Originator from the Trust Fund, during the related Prepayment Period; 
  

 21 

 (iv) the portion of any Substitution Adjustment Amount paid with respect to any Deleted
Mortgage Loan repurchased by the Originator during the related Prepayment Period allocable to principal; 
  
 (v) all Liquidation Proceeds (less liquidation expenses), Insurance Proceeds, REO Disposition Proceeds and other recoveries collected with
respect to such Mortgage Loans during the related Prepayment Period, to the extent allocable to principal; and 
  
 (vi) all other collections and recoveries in respect of principal during the related Prepayment Period exclusive of Prepayment Premium.

  
 Proceeding: Any suit in equity, action at law or other
judicial or administrative proceeding. 
  
 Prospectus: The
prospectus supplement, dated                          , 200  , together with the accompanying
prospectus, dated                          , 200  , relating to the Class A Notes and Class M
Notes. 
  
 Qualified Insurer: A mortgage guaranty insurance
company duly authorized and licensed where required by law to transact mortgage guaranty insurance business and approved as an insurer by Fannie Mae or Freddie Mac. 
  
 Qualified Substitute Mortgage Loan: A mortgage loan eligible to be substituted by a Seller or the Originator for a
Deleted Mortgage Loan which must meet the following criteria as confirmed by the Master Servicer: 
  
 (i) have an outstanding principal balance, after deduction of all Scheduled Monthly Payments due in the month of substitution (or in the
case of a substitution of more than one mortgage loan for a Deleted Mortgage Loan, an aggregate principal balance), not in excess of the Scheduled Principal Balance of the Deleted Mortgage Loan; 
  
 (ii) have a Mortgage Loan Remittance Rate not less than, and
not more than 2% greater than, the Mortgage Loan Remittance Rate of the Deleted Mortgage Loan; 
  
 (iii) have a remaining term to maturity not greater than and not more than one year less than that of the Deleted Mortgage Loan;

  
 (iv) comply with each representation and
warranty set forth in Section 3.7; 
  
 (v) be of
the same type as the Deleted Mortgage Loan; 
  
 (vi) have a Gross Margin not less than that of the Deleted Mortgage Loan, if the Deleted Mortgage Loan was an Adjustable Rate Mortgage Loan; 
  
 (vii) be a first lien Mortgage Loan (or a first or a second if the Selected Mortgage Loan is a Second Lien Mortgage Loan); 
  
 (viii) have the same Index as the Deleted Mortgage Loan;

  

 22 

 (ix) will have a FICO score not less than that of the Deleted Mortgage Loan; 

 
 (x) have an LTV (or, in the case of a Second Lien
Mortgage Loan, a CLTV) not greater than that of the Deleted Mortgage Loan; 
  
 (xi) have a Prepayment Premium with a term and an amount at least equal to the Prepayment Premium of the Deleted Mortgage Loan; and 
  
 (xii) have a credit grade not lower in quality than that of the Deleted Mortgage Loan. 
  
 Rating Agency: Each of Fitch, Moody’s and S&P, or any
successor thereto. 
  
 Realized Loss: With respect to each
Liquidated Mortgage Loan, an amount (not less than zero or more than the Scheduled Principal Balance of the Mortgage Loan) as of the date of such liquidation, equal to (a) the Scheduled Principal Balance of the Liquidated Mortgage Loan as of the
date of such liquidation, plus (b) interest at the Net Mortgage Rate from the Due Date as to which interest was last paid or advanced (and not reimbursed) to the Noteholders up to the Due Date in the month in which Liquidation Proceeds are
required to be paid on the Scheduled Principal Balance of such Liquidated Mortgage Loan from time to time, minus (c) the Liquidation Proceeds, if any, received during the month in which such liquidation occurred, to the extent applied as
recoveries of interest at the Net Mortgage Rate and to principal of the Liquidated Mortgage Loan. With respect to each Mortgage Loan which has become the subject of a Deficient Valuation, if the principal amount due under the related Mortgage Note
has been reduced, 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 and any Payment Date, the amount, if any, by which the principal portion of the related Scheduled Monthly Payment has been reduced. 
  
 Redemption Price: In the case of a redemption of the Notes pursuant to
Section 9.2, an amount equal to the sum of (a) the outstanding Class Principal Amount of the Notes together with accrued interest thereon (at the applicable Note Interest Rate), to the extent unpaid, (b) any unreimbursed Advances, (c) any
costs and damages incurred by the Trust associated with any violation of applicable federal, state or local anti-predatory or anti-abusive lending laws with respect to any Mortgage Loans in the Trust Fund, and (d) all other amounts to be paid or
reimbursed to the Master Servicer, the Servicer, the Custodian, the Securities Administrator, the Indenture Trustee and the Owner Trustee. 
  
 Reinvestment Agreement: A guaranteed reinvestment agreement from a bank, insurance company or other corporation or entity organized under the laws
of the United States or any state thereof under which no payments are subject to any withholding tax or, if subject to withholding tax imposed by any jurisdiction, the obligor thereunder is required to make “gross up” payments that cover
the full amount of any such withholding tax on an after-tax basis; provided that such agreement provides that it is terminable by the purchaser, without premium or penalty, in the event that the rating assigned to such agreement by any Rating
Agency is at any time lower than the rating required pursuant to the terms of this Indenture to be assigned to such agreement in order to permit the purchase thereof. 
  

 23 

 Relief Act: The Servicemembers Civil Relief Act, as such may be amended from time to time, or any
similar state laws. 
  
 REO Disposition Proceeds: All
amounts received with respect to an REO Property pursuant to Section 4.17. 
  
 REO Property: A Mortgaged Property acquired by the Servicer through foreclosure or deed-in-lieu of foreclosure in connection with a defaulted Mortgage Loan. 
  
 Repurchase Price: With respect to any Mortgage Loan required to be
purchased pursuant to Sections 3.7 or 5.2 of this Agreement, an amount equal to the sum of (a) 100% of the unpaid principal balance of the Mortgage Loan on the date of such purchase, (b) accrued interest thereon at the applicable Mortgage
Rate from the date through which interest was last paid by the 
 Mortgagor to the Due Date in the month in which the Repurchase Price is to
be paid to the Trust and (c) any unreimbursed advances and any costs and damages incurred in connection with the violation by such Mortgage Loan of any predatory or anti-abusive lending law. 
  
 Request for Release: The Request for Release submitted by the Servicer
to the Indenture Trustee or the Securities Administrator on behalf of the Indenture Trustee, in the form of Exhibit D. 
  
 RESPA: The Real Estate Settlement Procedures Act. 
  
 Responsible Officer: With respect to: 
  
 (a) the Servicer, any officer of the Servicer with direct responsibility for the administration of this Agreement and any other officer to whom, with
respect to a particular matter, such matter is referred due to such officer’s knowledge of an familiarity with the particular subject. 
  
 (b) the Indenture Trustee, any managing director, any director, vice president, any assistant vice president, any associate, any assistant secretary, any
trust officer or any other officer of the Indenture Trustee customarily performing functions similar to those performed by any of the above designated officers who at such time shall be officers to whom, with respect to a particular matter, the
matter is referred because of the officer’s knowledge of and familiarity with the particular subject and who has direct responsibility for the administration of this Agreement. 
  
 (c) the Securities Administrator, any vice president, any managing director, any director, any associate, any assistant vice
president, any assistant secretary, any trust officer or any other officer or employee of the Securities Administrator 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 or employee’s knowledge of and familiarity with the particular subject and in each case who shall have direct responsibility for the administration of this
Agreement. 
  

 24 

 (d) the Master Servicer, any vice president, any managing director, any director, any associate, any
assistant vice president, any assistant secretary, any trust officer or any other officer or employee of the Master Servicer 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 or employee’s knowledge of and familiarity with the particular subject and in each case who shall have direct responsibility for the administration of this
Agreement. 
  
 Rolling Three Month Delinquency Rate: With
respect to any Payment Date, the average of the Delinquency Rates for each of the three (or a shorter period, in the case of the first and second Payment Dates starting from the Cut-off Date) immediately preceding months. 
  
 S&P: Standard & Poor’s Rating Services, a division of The
McGraw-Hill Companies, Inc. 
  
 Scheduled Monthly Payment:
Each scheduled payment of principal and interest (or of interest only, if applicable) to be paid by the Mortgagor on a Mortgage Loan, as reduced (except where otherwise specified herein) by the amount of any related Debt Service Reduction or
pursuant to the Relief Act (excluding all amounts of principal and interest that were due on or before the Cut-off Date whenever received) and, in the case of an REO Property, an amount equivalent to the Scheduled Monthly Payment that would have
been due on the related Mortgage Loan if such Mortgage Loan had remained in existence. 
  
 Scheduled Principal Balance: With respect to (a) any Mortgage Loan as of any date of determination, the principal balance of such Mortgage Loan at the close of business on the Cut-off Date after giving effect
to (i) principal payments due on or before the Cut-off Date or for Mortgage Loans with a “first pay” date of                     
    , 200  , whether or not received, less an amount equal to principal payments due after the Cut-off Date and on or before the Due Date in the related Due Period, whether or not received from the
Mortgagor or advanced by the Servicer or the Master Servicer, and (ii) all amounts allocable to unscheduled principal payments (including Principal Prepayments, Liquidation Proceeds, Insurance Proceeds and condemnation proceeds, in each case to the
extent identified and applied prior to or during the related Prepayment Period) received prior to such date and (b) any REO Property as of any Payment Date, the Scheduled Principal Balance of the related Mortgage Loan on the Due Date immediately
preceding the date of acquisition of such REO Property by or on behalf of the Indenture Trustee (reduced by any amount applied as a reduction of principal on the Mortgage Loan). 
  
 Second Lien Mortgage Loan: A Mortgage Loan secured by a Mortgage, which lien is subordinate to another
mortgage on the same Mortgaged Property. 
  
 Securities
Act: The Securities Act of 1933, as amended. 
  
 Securities
Administrator:                         . 
  
 Sellers:
                                    . 
  
 Senior Note: Any Class A Notes. 
  

 25 

 Servicing Advances: All customary, reasonable and necessary “out of pocket” costs and
expenses (including reasonable attorneys’ fees and disbursements) other than Monthly Advances incurred prior to, on or after the Cut-off Date in the performance by the Servicer of its servicing obligations, including, but not limited to, the
cost of (a) the preservation, restoration and protection of any Mortgaged Property, (b) any enforcement or judicial proceedings, including foreclosures, in respect of a particular Mortgage Loan, including any expenses incurred in relation to any
such proceedings that result from the Mortgage Loan being registered on the MERS® System, (c) the management (including reasonable fees in connection therewith) and liquidation of any REO Property, (d) compliance with the obligations under
Section 4.9 and (e) obtaining any legal documentation required to be included in the Mortgage File and/or correcting any outstanding title issues (i.e., any lien or encumbrance on the Mortgaged Property that prevents the effective
enforcement of the intended lien position) reasonably necessary for the Servicer to perform its obligations under this Agreement. Servicing Advances also include any reasonable “out-of-pocket” cost and expenses (including legal fees)
incurred by the Subservicer in connection with executing and recording instruments of satisfaction, deeds of reconveyance or an Assignment of Mortgage to the extent not recovered from the Mortgagor or otherwise payable under this Agreement.

  
 Servicing File: With respect to each Mortgage Loan, the
file retained by the Servicer consisting of originals of all documents in the Mortgage File which are not delivered to the Custodian and copies of the Mortgage Loan Documents, the originals of which are delivered to the Indenture Trustee.

  
 Servicing Officer: Any officer of a 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 on the Closing Date to the Master Servicer upon request, as such list may from time to time be
amended. 
  
 Servicing Rights: With respect to each
Mortgage Loan, any and all of the following: (a) all rights to service the Mortgage Loan; (b) all rights to receive servicing fees, additional servicing compensation (including without limitation any late fees, assumption fees, penalties or similar
payments with respect to the Mortgage Loan, and income on escrow accounts or other receipts on or with respect to the Mortgage Loan), reimbursements or indemnification for servicing the Mortgage Loan, and any payments received in respect of the
foregoing and proceeds thereof; (c) the right to collect, hold and disburse escrow payments or other similar payments with respect to the Mortgage Loans and any amounts actually collected with respect thereto and to receive interest income on such
amounts to the extent permitted by applicable law; (d) all accounts and other rights to payment related to any of the property described in this paragraph; (e) possession and use of any and all Servicing Files pertaining to the Mortgage Loans or
pertaining to the past, present or prospective servicing of the Mortgage Loans; (f) all rights and benefits relating to the direct solicitation of the related mortgagors for refinance or modification of the Mortgage Loans and attendant right, title
and interest in and to the list of such mortgagors and data relating to their respective Mortgage Loans; (g) all rights, powers and privileges incident to any of the foregoing; and (h) all agreements or documents creating, defining or evidencing any
of the foregoing rights to the extent they relate to such rights. 
  

 26 

 Servicing Rights Fee: With respect to each Mortgage Loan, the amount of the annual fee payable to
the Servicing Rights Owner, which shall, for a period of one full month, be equal to one-twelfth of the product of (i) the excess of the Servicing Rights Fee Rate over the applicable Subservicing Fee Rate and (ii) the Scheduled Principal Balance of
such Mortgage Loan, less the Subservicing Fee for such month with respect to such Mortgage Loan. Such fee, if any, shall be received 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 Servicing Rights Fee, if any, is payable solely from the interest portion (including recoveries with respect to interest from Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds to the extent
permitted by Section 4.6) of such Scheduled Monthly Payment collected by the Servicer, or as otherwise provided under Section 4.6. 
  
 Servicing Rights Fee Rate: [ - ]% per annum. 
  
 Servicing Rights Owner:
                    , or any successor in interest. 
  

Stepdown Date: The later to occur of (a) the Payment Date in
                     200  , and (b) the first Payment Date on which the aggregate Scheduled Principal Balance of the Mortgage
Loans as of the last day of the related Due Period is less than or equal to [ - ]% of the aggregate Cut-off Date Balance. 
  
 Servicer:                      and its
successor in interest or assigns or any successor to the Servicer under this Agreement. 
  
 Servicer Business Day: Any day other than (a) a Saturday or a Sunday or (b) a day on which banking institutions in the State of New York, the State of New Jersey, the State of Florida or the city in which the
Corporate Trust Office of the Indenture Trustee or the Securities Administrator or the principal office of the Servicer or Master Servicer is located, are authorized or obligated by law or executive order to be closed. 
  
 Servicer Event of Default: Any one of the conditions or circumstances
enumerated in Section 5.8. 
  
 Servicer Remittance
Amount: As defined in Section 7.1. 
  
 Servicer Remittance
Date: The day in each calendar month on which the Servicer is required to remit payments to the Collection Account, which is the      day of each calendar month (or, if such      day is not a
Servicer Business Day, the next succeeding Servicer Business Day), commencing in                      200  . 
  
 Subsequent Mortgage Loans: Each of the Mortgage Loans acquired with
amounts in the Pre-Funding Account conveyed to the Trust Fund that is listed on a schedule attached to a Subsequent Transfer Agreement. 
  
 Subsequent Mortgage Loan Schedule: The schedule to be annexed hereto as Schedule A on each Subsequent Sale Date identifying the relevant
Subsequent Mortgage Loans subject to this Agreement. 
  

 27 

 Subsequent Sale Date: The date of each Subsequent Transfer Agreement. 
  
 Subsequent Transfer Agreement: A Subsequent Transfer Agreement entered
into between the Seller, the Servicer, the Issuer, the Depositor, the Indenture Trustee, the Master Servicer and the Securities Administrator, substantially in the form attached as Exhibit G. 
  
 Subservicing Fee: With respect to each Mortgage Loan, the amount of
the annual fee payable to the Servicer, which shall, for a period of one full month, be equal to one-twelfth of the product of (a) the applicable Subservicing Fee Rate and (b) Scheduled Principal Balance of such Mortgage Loan as of the beginning of
the related Due Period as set forth on the Mortgage Loan Schedule, and which shall be payable on each Payment Date; provided that, if a successor servicer shall be appointed, a portion of the Subservicing Fee may be paid to the Ownership
Certificateholder in its capacity as Servicing Rights Owner. The Subservicing Fee is payable solely from, the interest portion (including recoveries with respect to interest from Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds to
the extent permitted by Section 4.6) of such Scheduled Monthly Payment collected by the Servicer, or as otherwise provided under Section 4.6. 
  
 Subservicing Fee Rate: The rate set forth in a separate letter agreement between the Servicer and the Servicing Rights Owner. 
  
 Substituting Party: As defined in Section 3.7(d). 
  
 Substitution Adjustment Amount: As defined in Section 3.7. 

 
 Target Available Funds Amount: With respect to any Payment Date, an
amount equal to the lesser of (a) the Interest Proceeds for such Payment Date or (b) the aggregate Current Interest that would be payable on all Notes with the Current Interest on each Class of Notes, for this purpose only, determined using the
Formula Rate. 
  
 Target Class Principal Payment Amount:
With respect to any Payment Date and each Class of Notes, the product of (a) the Current Fraction for such Class of Notes and (b) the Formula Principal Payment Amount. 
  
 Target Fraction: With respect to a Class of Notes, a fraction equal to (a) the Class Principal Amount of such Class
of Notes as of the Closing Date over (b) the aggregate Class Principal Amount of all of the Notes as of the Closing Date. 
  
 Target Overcollateralization Amount: With respect to any Payment Date prior to the Stepdown Date, approximately [ - ]% of the aggregate Cut-off
Date Balance. With respect to any Payment Date on or after the Stepdown Date, the lesser of (a) [ - ]% of the Cut-off Date Balance, and (b) [ - ]% of the aggregate Scheduled Principal Balance of the Mortgage Loans as of the last day of the related
Due Period, subject to a floor equal to [ - ]% of the Cut-off Date Balance; provided, however, if a Trigger Event has occurred and is continuing on the related Payment Date, the Target Overcollateralization Amount will be the same as
the Target Overcollateralization Amount on the preceding Payment Date. 
  

 28 

 Target Ratio: With respect to any Class of Notes, a fraction equal to (a) the Target Fraction for
such Class of Notes over (b) the sum of the Target Fractions for such Class of Notes and all other Classes of Notes that are senior to such Class of Notes. 
  
 Termination Date: As defined in Section 9.1. 
  
 Trigger Event: With respect to any Payment Date, a Trigger Event shall have occurred if the Rolling Three Month Delinquency Rate as of the last day
of the related Due Period equals or exceeds [ - ]%, or if the Cumulative Realized Loss Rate exceed: 
  

			
	 Payment Date Occurring In

	  	 Percentage

	                     
200  -                    200  
	  	[ - ]% with respect to                      200  , plus an additional
[ - ]th of [ - ]% for each month thereafter
		
	                     
200  -                    200  
	  	[ - ]% with respect to                      200  , plus an additional
[ - ]th of [ - ]% for each month thereafter
		
	                     
200  -                     200  
	  	[ - ]% with respect to                      200  , plus an additional
[ - ]th of [ - ]% for each month thereafter
		
	                     
200   and thereafter
	  	[ - ]%

  
 Trust: First
NLC Securitization Trust 200  -  , a Delaware statutory trust, and its permitted successors and assigns. 
  
 Trust Fund: As defined in the Indenture. 
  
 UCC: The Uniform Commercial Code as enacted in the relevant jurisdiction. 
  
 Underwriting Guidelines: Those underwriting guidelines employed by the Originator in originating the Mortgage Loans.

  
 Voting Interests: The portion of the voting rights of
all the Notes that is allocated to any Note for purposes of the voting provisions of this Agreement. At all times during the term of this Agreement, 98% of all voting rights will be allocated among the holders of the Notes as provided below. The
portion of such voting rights allocated to such Notes will be based on the fraction, expressed as a percentage, the numerator of which is the aggregate Class Principal Amount then outstanding and the denominator of which is the aggregate outstanding
principal balance of the Notes. The Ownership Certificate shall be allocated 2% of the voting rights. 
  
 SECTION 1.2 Calculations With Respect to the Mortgage Loans. 
  
 Calculations required to be made pursuant to this Agreement with respect to any Mortgage Loan in the Trust Fund shall be
made based upon current information as to the terms of the Mortgage Loans and reports of payments received from the Mortgagor on such Mortgage Loans provided by the Servicer to the Master Servicer. Payments to be made by the Securities Administrator
shall be based on information provided by the Master Servicer. Neither the Indenture Trustee nor the Securities Administrator shall be required to recompute, verify or recalculate the information supplied to it by the Master Servicer or the
Servicer. 
  

 29 

 SECTION 1.3 Calculations With Respect to Accrued Interest. 
  
 Accrued interest, if any, on any Note shall be calculated based upon a
360-day year and the actual number of days in each Interest Accrual Period. 
  
 SECTION 1.4 Rules of Construction. 
  
 Unless the context otherwise clearly requires: 
  
 (a) the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined; 
  
 (b) whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms; 
  
 (c) the words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation;” 
  
 (d) the word “will” shall be construed to have the same meaning and effect as the word “shall;” 
  
 (e) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth
herein); 
  
 (f) any reference herein to any Person, or to any
Person in a specified capacity, shall be construed to include such Person’s permitted successors and assigns or such Person’s permitted successors in such capacity, as the case may be; and 
  
 (g) all references in this instrument to designated “Sections,”
“clauses” and other subdivisions are to the designated Sections, clauses and other subdivisions of this instrument as originally executed, and the words “herein,” “hereof,” “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular Section, clause or other subdivision. 
  
 ARTICLE II 
  
 CONVEYANCE OF MORTGAGE LOANS 
  
 SECTION 2.1
Conveyance of Mortgage Loans to the Depositor. 
  
 (a) On
the Closing Date, in exchange for valuable consideration which the Sellers hereby acknowledge, each Seller does hereby sell, transfer, assign, or set over, deposit with and otherwise convey and the Depositor does hereby purchase, without recourse
(except as provided herein), on a servicing-released basis, all right, title and interest of such Seller in and to the Mortgage Loans indicated as being sold by such Seller in the Mortgage Loan Schedule, having an aggregate Cut-off Date Balance as
set forth in such Mortgage Loan Schedule. 
  

 30 

 (b) The Depositor shall be entitled to (i) all scheduled principal due after the Cut-off Date, (ii) all
other recoveries of principal collected after the Cut-off Date (less scheduled payments of principal due on or before the Cut-off Date and collected after the Cut-off Date), (iii) all payments of interest on the Mortgage Loans at the Mortgage Loan
Remittance Rate (minus that portion of any such payment which is allocable to the period prior to the Cut-off Date) and (iv) all Prepayment Premiums; provided, however, that for any Mortgage Loan that has a “first pay” date
of                  , 200    , any scheduled principal payment due in the Due Period for the initial Payment Date will be the
property of the applicable Seller. Scheduled Monthly Payments prepaid for a Due Date after the Cut-off Date shall not be applied to the principal balance as of the Cut-off Date, but shall be the property of the Depositor. The applicable Seller shall
remit to the Servicer for deposit any such prepaid amounts into the Custodial Account for the benefit of the Depositor. 
  
 In the case of Mortgage Loans that have been prepaid in full after the applicable Cut-off Date and prior to the Closing Date, the applicable Seller shall
remit to the Master Servicer for deposit in the Collection Account the portion of any amount so prepaid that is required to be deposited in the Collection Account pursuant to Section 7.4. 
  
 (c) Upon the sale of the Mortgage Loans, the ownership of each Mortgage Note,
the related Mortgage and the related Mortgage File shall vest immediately in the Depositor, and the ownership of all records and documents with respect to the related Mortgage Loan prepared by or which come into the possession of the applicable
Seller shall vest immediately in the Depositor and shall be retained and maintained by such Seller, in trust, at the will of the Depositor and only in such custodial capacity. 
  
 (d) Each Seller shall deliver the Mortgage Loan Schedule, the Mortgage Loan File and Mortgage Loan Documents to be purchased
on the related Closing Date to the Custodian at least three Business Days prior to such Closing Date. 
  
 SECTION 2.2 Conveyance of Mortgage Loans to the Trust. 
  
 (a) As of the Closing Date, in consideration of the Trust’s delivery of the Notes and the Ownership Certificate to the Depositor or its designees,
and concurrently with the execution and delivery of this Agreement, the Depositor does hereby sell, transfer, assign, set over, deposit with and otherwise convey to the Trust, without recourse (except as otherwise provided herein), on a
servicing-released basis, all right, title and interest of the Depositor in and to the Mortgage Loans purchased by the Depositor from the Sellers. 
  
 (b) The Trust shall be entitled to all payments on the Mortgage Loans as provided in Section 2.1(b). 
  
 (c) Upon the issuance of the Notes and the Ownership Certificates, the
ownership of each Mortgage Note, the related Mortgage and the related Mortgage File shall vest immediately in the Trust, and the ownership of all records and documents with respect to the related Mortgage Loan prepared by or which come into the
possession of the applicable Seller shall vest immediately in the Trust and shall be retained and maintained by such Seller, in trust, at the will of the Trust and only in such custodial capacity. 
  

 31 

 SECTION 2.3 Assignment of Mortgage Loans. 
  
 (a) Each Seller shall cause an Assignment of Mortgage with respect to each
Mortgage Loan (other than a MOM Loan) to be completed in the form and substance acceptable for recording in the relevant jurisdiction, such assignment being either (A) in blank, without recourse, or (B) or endorsed to
“                    , as Indenture Trustee of the First NLC Securitization Trust 200  -  ,
Asset-Backed Notes, Series 200  -  , without recourse,” within 30 days following the Closing Date; provided, however, that such Assignment of Mortgage need not be recorded unless and until the
Indenture Trustee determines, in its good faith business judgment, that such Assignment of Mortgage is required to be recorded to protect the Indenture Trustee’s interest in the related Mortgage Loans. Any such recordation of an Assignment of
Mortgage shall be effected at the expense of the applicable Seller. 
  
 (b) In connection with the assignment of any Mortgage Loan registered on the MERS® System, the applicable Seller agrees that it will cause, within 30 Business Days after the Closing Date, the Originator to cause the MERS® System to
indicate that such Mortgage Loans have been assigned by the applicable Seller to the Depositor which has assigned such Mortgage Loans to the Trust, which has collaterally assigned such Mortgage Loans to the Indenture Trustee in accordance with this
Agreement for the benefit of the Noteholders and the Ownership Certificateholder by including (or deleting, in the case of Mortgage Loans which are repurchased in accordance with this Agreement) in such computer files the code in the field that
identifies the specific Indenture Trustee and the code in the field “Pool Field” that identifies the series of the Notes for which such Mortgage Loans serve as collateral. The applicable Seller further agrees that it will not, and will not
permit the Servicer to, and each of the Servicer and the Master Servicer agree that it will not, alter the codes referenced in this paragraph with respect to any MOM Loan during the term of this Agreement unless and until such MOM Loan is
repurchased in accordance with the terms of this Agreement. 
  
 SECTION 2.4 Books and Records. 
  
 (a) The
contents of each Servicing File are and shall be held in trust by the Servicer for the benefit of the Trust as the owner thereof. The Servicer shall take all necessary steps to ensure that the documents required to be included in the Servicing File
are complete and shall maintain the Servicing File as required by this Agreement, Accepted Servicing Practices and applicable law. Possession of each Servicing File by the Servicer is at the will of the Trust for the sole purpose of servicing the
related Mortgage Loan and such retention and possession by the applicable Seller is in a custodial capacity only. The Servicer shall release its custody of the contents of any Servicing File only in accordance with written instructions from the
Indenture Trustee, unless such release is required as incidental to any Seller’s servicing of the Mortgage Loans or is in connection with the transfer of servicing or a repurchase of any Mortgage Loan. 
  
 (b) All original documents relating to the Mortgage Loans that are not
delivered to the Custodian are and shall be held by the Servicer in trust for the benefit of the Indenture Trustee on behalf of the Noteholders and the Ownership Certificateholder. In the event that any such original document is required pursuant to
the terms of this Section to be a part of a Mortgage File, such document shall be delivered promptly to the Indenture Trustee. 
  

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 (c) Upon and after a sale of Mortgage Loans to the Trust, all proceeds arising out of the Mortgage Loans,
including, but not limited to, all funds received on or in connection with the Mortgage Loans, shall be received and held by the Servicer in trust for the benefit of the Trust as owner of the Mortgage Loans. 
  
 (d) The applicable Seller and Depositor shall each be responsible for
maintaining, and shall maintain, a complete set of books and records for each Mortgage Loan which shall be marked clearly to reflect the ownership of each Mortgage Loan by the Trust. 
  
 (e) Nothing in this Agreement shall be construed to constitute an assumption by the Trust Fund, the Indenture Trustee, or
the Noteholders of any unsatisfied duty, claim or other liability on any Mortgage Loan or to any Mortgagor. 
  
 SECTION 2.5 Review of Documentation. 
  
 (a) The Indenture Trustee declares that, subject to the review provided for in this Section, it has received and shall hold the Trust Fund, as Indenture
Trustee, in trust, for the benefit and use of the Noteholders and the Ownership Certificateholder and for the purposes and subject to the terms and conditions set forth in this Agreement, and, concurrently with such receipt, the Trust has issued and
delivered the Notes and the Ownership Certificate to the Depositor or its designee, in exchange for the Trust Fund. 
  
 (b) On the Closing Date, the Custodian will execute and deliver to the Depositor, the Master Servicer, the Servicer, the Securities Administrator and the
Indenture Trustee an Initial Certification with respect to the Mortgage Loans delivered on or before the Closing Date, as applicable. Based on its review and examination, and only as to the documents identified in each such Initial Certification,
the Custodian acknowledges that such documents appear regulation on their face and relate to such Mortgage Loan. The Custodian shall not be under any duty or obligation to inspect, review or examine said documents, instruments, certificates or other
papers to determine that the same are genuine, enforceable, recordable or appropriate for the represented purpose or that they have actually been recorded in the real estate records or that they are other than what they purport to be on their face.

  
 (c) Within [ - ] days after the Closing Date, the Custodian
will deliver a Final Certification with any applicable exceptions noted therein. The Custodian, as applicable, shall determine whether such documents are executed and endorsed, but shall be under no duty or obligation to inspect, review or examine
any such documents, instruments, certificates or other papers to determine that the same are valid, binding, legally effective, properly endorsed, genuine, enforceable or appropriate for the represented purpose or that they have actually been
recorded or are in recordable form or that they are other than what they purport to be on their face. The Custodian shall not have any responsibility for verifying the genuineness or the legal effectiveness of or authority for any signatures of or
on behalf of any party or endorser. 
  
 (d) If in the course of
the review described in paragraph (b) above, the Custodian discovers any document or documents constituting a part of a Mortgage File is missing, does not appear regular on its face (i.e., is mutilated, damaged, defaced, torn or otherwise
physically altered) or appears to be unrelated to the Mortgage Loans identified in the Mortgage Loan 
  

 33 

 Schedule, as applicable (each, a “Material Defect”), the Custodian, shall identify the Mortgage Loan to
which such Material Defect relates in the Final Certification. Within 90 days of its receipt of such notice, the Originator shall be required to cure such Material Defect (and, in such event, the Originator shall provide the Indenture Trustee and
the Custodian with an Officer’s Certificate confirming that such cure has been effected). The Originator may, in lieu of repurchasing a Mortgage Loan pursuant to this Section (d), substitute for such Mortgage Loan a Qualified Substitute
Mortgage Loan subject to the provisions of Section 3.7. The failure of the Indenture Trustee to deliver, or cause the Custodian to deliver, the Final Certification within 90 days after the Closing Date shall not affect or relieve the Originator of
its obligation to repurchase any Mortgage Loan pursuant to this Section (d), Section 3.7, or any other Section of this Agreement requiring the repurchase of Mortgage Loans from the Trust Fund. 
  
 SECTION 2.6 Granting Clause. 
  
 (a) It is intended that the conveyance of the Mortgage Loans by each Seller
to the Depositor and by the Depositor to the Trust, as provided for in Sections 2.1 and 2.2, be construed as a sale of the Mortgage Loans and other assets in the Trust Fund by the Sellers to the Depositor and by the Depositor to the Trust. Further,
it is not intended that any such conveyances be deemed a pledge of the Mortgage Loans by a Seller to the Depositor to secure a debt or other obligation of the applicable Seller, or a pledge of the Mortgage Loans by the Depositor to the Trust to
secure a debt or other obligation of the Depositor. However, in the event that the Mortgage Loans are held to be property of a Seller or the Depositor or if for any reason this Agreement is held or deemed to create a security interest in the
Mortgage Loans and other assets in the Trust Fund, then it is intended that: 
  
 (i) this Agreement shall also be deemed to be a security agreement within the meaning of Articles 8 and 9 of the UCC; 
  
 (ii) the conveyances provided for in Sections 2.1 and 2.2 shall be deemed a grant by each Seller to the Depositor, and by the Depositor to
the Trust, as the case may be, of a security interest in all of the applicable Seller’s right and Depositor’s right, as applicable, (including the power to convey title thereto), title and interest, whether now owned or hereafter acquired,
in and to (A) the Mortgage Loans, including the Mortgage Notes, the Mortgages, any related insurance policies and all other documents in the related Mortgage Files, (B) all amounts payable pursuant to the Mortgage Loans in accordance with the terms
thereof and (C) any and all general intangibles consisting of, arising from or relating to any of the foregoing, and all proceeds of the conversion, voluntary or involuntary, of the foregoing into cash, instruments, securities or other property,
including without limitation all Liquidation Proceeds, all Insurance Proceeds and all amounts from time to time held or invested in the Collection Account, whether in the form of cash, instruments, securities or other property and (2) an assignment
by the Sellers to the Depositor and by the Depositor to the Trust of any security interest in any and all of the Sellers’ and Depositor’s right (including the power to convey title thereto), title and interest, whether now owned or
hereafter acquired, in and to the property described in the foregoing clauses (1)(A) through (C); 
  

 34 

 (iii) the possession by the Indenture Trustee, the Custodian, or any other agent of the
Indenture Trustee of Mortgage Notes, and such other items of property as constitute instruments, money, negotiable documents or chattel paper shall be deemed to be “possession by the secured party,” or possession by a purchaser or a person
designated by such secured party, for purposes of perfecting the security interest pursuant to the UCC and any other relevant UCC (including, without limitation, Section 9-313, 8-313 or 8-321 thereof); and 
  
 (iv) 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 Trust for the
purpose of perfecting such security interest under applicable law. 
  
 (b) Each Seller and the Depositor shall, to the extent consistent with this Agreement, take such reasonable actions as may be necessary to ensure that, if this Agreement were deemed to create a security interest in the Mortgage Loans and
the other property of the Trust 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 this Agreement. Without limiting the
generality of the foregoing, the applicable Seller and the Depositor shall prepare and file any UCC financing statements that are necessary to perfect the Depositor’s and the Indenture Trustee’s security interest in or lien on the Mortgage
Loans, as evidenced by an Officer’s Certificate of the applicable Seller and the Depositor, and furnish a copy of each such filed financing statement to the Securities Administrator. The Depositor shall prepare and file, at the expense of the
Trust, all filings necessary to maintain the effectiveness of any original filings necessary under the relevant UCC to perfect the Indenture Trustee’s security interest in or lien on the Mortgage Loans, including without limitation (x)
continuation statements, and (y) to the extent that a Responsible Officer of the Depositor has received written notice of such change or transfer, such other statements as may be occasioned by (1) any change of name of a Seller, the Depositor or the
Trust, (2) any change of location of the place of business or the chief executive office of a Seller or the Depositor or (3) any transfer of any interest of a Seller or the Depositor in any Mortgage Loan. 
  
 Neither a Seller nor the Depositor shall organize under the law of any
jurisdiction other than the State under which each is organized as of the Closing Date (whether changing its jurisdiction of organization or organizing under an additional jurisdiction) without giving 30 days prior written notice of such action to
the Master Servicer, the Servicer, the Securities Administrator and the Indenture Trustee. Before effecting such change, each of a Seller or the Depositor proposing to change its jurisdiction of organization shall prepare and file in the appropriate
filing office any financing statements or other statements necessary to continue the perfection of the interests of its transferees, including the Indenture Trustee, in the Mortgage Loans. 
  
 (c) Neither any Seller nor the Depositor shall take any action inconsistent
with the sale by such Seller or the Depositor of its right, title and interest in and to the Mortgage Loans or Trust Fund and shall indicate or shall cause to be indicated in its records and records held on its behalf that ownership of each Mortgage
Loan and the other property of the Trust is held by the 
  

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 Trust. In addition, each Seller and the Depositor shall respond to any inquiries from third parties with respect to
ownership of a Mortgage Loan or any other property of the Trust Fund by stating that it is not the owner of such Mortgage Loan and that ownership of such Mortgage Loan or other property of the Trust Fund is held by the Trust. 
  
 SECTION 2.7 Subsequent Transfers 
  
 (a) Subject to the satisfaction of the conditions set forth in paragraph (b)
below and pursuant to the terms of each Subsequent Transfer Agreement, in consideration of the Indenture Trustee’s delivery, on behalf of the Trust, on the related Subsequent Sale Date to or upon the order of the Sellers of the purchase price
therefor, each Seller shall on any Subsequent Sale Date sell, transfer, assign, set over and otherwise convey without recourse to the Trust, all right, title and interest of the Seller, in and to each Subsequent Mortgage Loan transferred pursuant to
such Subsequent Transfer Agreement, including (i) the related Scheduled Principal Balance as of the related Cut-Off Date after giving effect to payments of principal due on or before the related Cut-Off Date; (ii) all collections in respect of
interest and principal received after the related Cut-Off Date (other than principal and interest due on or before such related Cut-off Date); (iii) property which secured such Subsequent Mortgage Loan and which has been acquired by foreclosure or
deed in lieu of foreclosure; (iv) its interest in any insurance policies in respect of such Subsequent Mortgage Loan; [(v) all cash instruments and other property held or required to be deposited in the Capitalized Interest Account and the
Pre-Funding Account]; and (vi) all proceeds of any of the foregoing. The transfer by each of the Sellers to the Trust of the Subsequent Mortgage Loans set forth on the Subsequent Mortgage Loan Schedule shall be absolute and shall be intended by the
Sellers and all parties hereto, other than for federal income tax purposes, to be treated as a sale by the Sellers to the Trust. 
  
 If the assignment and transfer of the Mortgage Loans and the other property specified in this Section 2.7 from the Seller to the Trust pursuant to this
Agreement is held or deemed not to be a sale or is held or deemed to be a pledge of security for a loan, the Seller intends that the rights and obligations of the parties shall be established pursuant to the terms of this Agreement and that, in such
event, (i) the Seller shall be deemed to have granted and does hereby grant to the Trust as of such Subsequent Sale Date a first priority security interest in the entire right, title and interest of the Seller in and to the Subsequent Mortgage Loans
and all other property conveyed to the Trust pursuant to this Section 2.7 and all proceeds thereof and (ii) this Agreement shall constitute a security agreement under applicable law. The purchase price shall be 100% of the Scheduled Principal
Balances of the Subsequent Mortgage Loans as of the related Cut-Off Date. On or before each Subsequent Sale Date, the Sellers shall deliver to, and deposit with the Indenture Trustee the related documents with respect to each Subsequent Mortgage
Loan transferred on such Subsequent Sale Date, and the related Subsequent Mortgage Loan Schedule in computer readable format with respect to such Subsequent Mortgage Loans. 
  
 (b) Each of the Sellers shall transfer and deliver to the Indenture Trustee the Subsequent Mortgage Loans and the other
property and rights related thereto described in paragraph (a) of this Section 2.7 only upon the satisfaction of each of the following conditions on or prior to the applicable Subsequent Sale Date: 
  
 (i) Each Seller shall have provided the Servicer, the
Indenture Trustee, the Depositor, the Securities Administrator, the Master Servicer and the Rating Agencies with an Addition Notice, which notice shall be given not less than two Business Days prior to the applicable Subsequent Sale Date and shall
designate the Subsequent Mortgage Loans to be sold to the Trust and the aggregate Scheduled Principal Balance of such Mortgage Loans and the Rating Agencies shall have informed the Seller, the Depositor, the Indenture Trustee, the Securities
Administrator, the Master Servicer or the Servicer prior to the applicable Subsequent Sale Date that the inclusion of such Subsequent Mortgage Loans will not result in the downgrade, withdrawal or qualification of the ratings assigned to the Notes;

  

 36 

 (ii) Each Seller shall have delivered to the Indenture Trustee, the Depositor, the
Securities Administrator, the Master Servicer and the Servicer a duly executed Subsequent Transfer Agreement in substantially the form of Exhibit G; 
  
 (iii) Each Seller shall have delivered to the Master Servicer for deposit in the Collection Account all principal collected and interest
collected to the extent accrued and due after the related Cut-off Date; 
  
 (iv) As of each Subsequent Sale Date, each Seller was not insolvent, will not be made insolvent by such transfer and is not aware of any pending insolvency; 
  
 (v) Such addition will not result in a material adverse tax
consequence to any Noteholder; 
  
 (vi) The
Pre-Funding Period shall not have terminated; 
  
 (vii) Each Seller shall have provided the Indenture Trustee, the Securities Administrator, the Depositor and the Rating Agencies with an Opinion of Counsel relating to the sale of the Subsequent Mortgage Loans from the Seller to the Trust,
the enforceability of the Subsequent Transfer Agreement with respect to the Seller, which matters may be covered in the opinions delivered on the Closing Date; 
  

(viii) The Depositor shall have provided the Indenture Trustee, the Securities Administrator, the Depositor and the Rating Agencies
with an Opinion of Counsel to the effect that the transfer of such Subsequent Mortgage Loans will not adversely affect the tax status of the Notes; 
  
 (ix) The aggregate Scheduled Principal Balance of Subsequent Mortgage Loans does not exceed the amount on deposit in the Pre-Funding
Account as of the Closing Date; 
  
 (x) The
conditions specified in Exhibit J hereto shall be met; and 
  
 (xi) On the last Subsequent Sale Date, the Indenture Trustee and the Securities Administrator shall have received an accountant’s letter confirming that the characteristics of the Mortgage Loans (including the
Subsequent Mortgage Loans), satisfy the parameters set forth in Exhibit J hereto. 
  

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 (c) Each party hereto shall comply with its respective obligations set forth in Sections 3.1, 3.2 and 3.7
with respect to the Subsequent Mortgage Loans delivered on each Subsequent Sale Date. References in such Sections to the Initial Mortgage Loans or Mortgage Loans shall be deemed to refer to the Subsequent Mortgage Loans and references
to the Cut-Off Date or the Closing Date, as applicable, shall be deemed to refer to the applicable related Cut-Off Date or Subsequent Sale Date, respectively, except that references to 360 days after the Closing Date shall remain unchanged as shall
representations made with specific reference to the Mortgage Loans delivered on the Closing Date. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 3.1
Representations and Warranties of each Seller. 
  
 Each
Seller hereby represents and warrants to the other parties hereto as of the Closing Date that: 
  
 (a) Each Seller has been duly organized and is validly existing as a
                     in good standing under the laws of
                    , with full power and authority to own its assets and conduct its business as presently being conducted. 
  
 (b) Each Seller has the full power and authority to execute and deliver this
Agreement and to perform its obligations hereunder, and the execution, delivery and performance of this Agreement (including all instruments of transfer to be delivered pursuant to this Agreement) by such Seller and the consummation of the
transactions contemplated hereby have been duly and validly authorized. 
  
 (c) This Agreement constitutes a legal, valid and binding obligation of such Seller, enforceable such Seller in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by general principles of equity (whether considered in a proceeding at law or
in equity). 
  
 (d) None of the execution and delivery of this
Agreement, the sale of the Mortgage Loans by such Seller, the transactions contemplated hereby, or the fulfillment of or compliance with the terms and conditions of this Agreement will conflict with or result in a breach of any of the terms,
Certificate of Formation or operating agreements (or, if applicable, the certificate of incorporation or bylaws) or any legal restriction or any agreement or instrument to which such Seller is now a party or by which it is bound, or constitute a
default or result in the violation of any law, rule, regulation, order, judgment or decree to which such Seller or its property is subject, or impair the ability of the Trust to realize on the Mortgage Loans, or impair the value of the Mortgage
Loans. 
  
 (e) No consent, approval, authorization or order of any
court or governmental agency or body is required for the execution, delivery and performance by a Seller of or compliance by such Seller with this Agreement or the sale of the Mortgage Loans as evidenced by the consummation of the transactions
contemplated by this Agreement, or if required, such consent, approval, authorization or order has been obtained prior to the related Closing Date. 
  

 38 

 (f) There is no action, suit, proceeding or investigation pending or to its knowledge threatened, against
such Seller which, either individually or in the aggregate, may result in any material adverse change in the business, operations, financial condition, properties or assets of such Seller, or in any material impairment of the right or ability of
each Seller to carry on its business substantially as now conducted, or which would draw into question the validity of this Agreement or the Mortgage Loans or of any action taken or contemplated herein, or which would be likely to impair materially
the ability of each Seller to perform under the terms of this Agreement. 
  
 (g) The transfer, assignment and conveyance of the Mortgage Notes and the Mortgages by such Seller pursuant to this Agreement are not subject to the bulk transfer or any similar statutory provisions in effect in any
applicable jurisdiction. 
  
 (h) Such Seller is solvent and the
sale of the Mortgage Loans will not cause each Seller to become insolvent. The sale of the Mortgage Loans is not undertaken to hinder, delay or defraud any of such Seller’s creditors. 
  
 (i) The consideration received by such Seller upon the sale of the Mortgage
Loans under this Agreement constitutes fair consideration and reasonably equivalent value for the Mortgage Loans. 
  
 (j) The Mortgage Loans have been selected on such Closing Date from among the outstanding fixed and adjustable rate one- to four-family mortgage loans in
such Seller’s portfolio at such Closing Date as to which the representations and warranties set forth in Schedule B could be made and such selection will not be made in a manner so as to affect adversely the interests of the Trust.

  
 (k) None of this Agreement, the information set forth in the
Mortgage Loan Schedule attached hereto and the information contained in the related electronic data file delivered to the Master Servicer by such Seller, nor any statement, report or other document furnished or to be furnished by or on behalf of
such Seller pursuant to this Agreement or in connection with the transactions contemplated hereby contains any untrue statement of material fact or omits to state a material fact necessary to make the statements contained therein not misleading.

  
 (l) Such Seller has determined that the disposition of the
Mortgage Loans from Seller to Depositor pursuant to this Agreement will be afforded sale treatment for accounting purposes, all on a non-consolidated basis. 
  
 (m) Such Seller has not dealt with any broker, investment banker, agent or other Person that may be entitled to any commission or compensation in the
connection with the sale of the Mortgage Loans. 
  
 (n) Neither
such Seller nor anyone acting on its behalf has offered, transferred, pledged, sold or otherwise disposed of any Mortgage Loans, any interest in any Mortgage Loans or any other similar security to, or solicited any offer to buy or accept a transfer,
pledge or other 
  

 39 

 disposition of any Mortgage Loans, any interest in any Mortgage Loans or any other similar security from, or otherwise
approached or negotiated with respect to any Mortgage Loans, any interest in any Mortgage Loans or any other similar security with, any person in any manner, or made any general solicitation by means of general advertising or in any other manner, or
taken any other action which would constitute a distribution of the Mortgage Loans under the Securities Act or which would render the disposition of any Mortgage Loans a violation of Section 5 of the Securities Act or require registration pursuant
thereto, nor will it act, nor has it authorized or will it authorize any person to act, in such manner with respect to the Mortgage Loans. 
  
 (o) The information about such Seller under the heading “The Trust—Assignment of Mortgage Loans” in the Prospectus relating to the Sellers
does not include an untrue statement of a material fact and does not omit to state a material fact, with respect to the statements made, necessary in order to make the statements in light of the circumstances under which they were made not
misleading. 
  
 SECTION 3.2 Representations and Warranties of
the Originator. 
  
 The Originator hereby represents and
warrants to the other parties hereto as of the Closing Date that: 
  
 (a) The Originator has been duly organized and is validly existing as a limited liability company in good standing under the laws of Florida, with full power and authority to own its assets and conduct its business as presently being
conducted. 
  
 (b) The Originator has the full power and authority
to execute and deliver this Agreement and to perform its obligations hereunder, and the execution, delivery and performance of this Agreement (including all instruments of transfer to be delivered pursuant to this Agreement) by the Originator and
the consummation of the transactions contemplated hereby have been duly and validly authorized. 
  
 (c) This Agreement constitutes a legal, valid and binding obligation of the Originator, enforceable against the Originator in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and except as such
enforceability may be limited by general principles of equity (whether considered in a proceeding at law or in equity). 
  
 (d) None of the execution and delivery of this Agreement, the transactions contemplated hereby, or the fulfillment of, or compliance with the terms and
conditions of this Agreement will conflict with or result in a breach of any of the terms, certificate of formation, operating agreement or any legal restriction or any agreement or instrument to which the Originator is now a party or by which it is
bound, or constitute a default or result in the violation of any law, rule, regulation, order, judgment or decree to which Originator or its property is subject, or impair the ability of the Trust to realize on the Mortgage Loans, or impair the
value of the Mortgage Loans. 
  

 40 

 (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 Originator of or compliance by the Originator with this Agreement, or if required, such consent, approval, authorization or order has been obtained prior to the related Closing Date. 
  
 (f) There is no action, suit, proceeding or investigation pending or to its
knowledge threatened against the Originator which, either individually or in the aggregate, may result in any material adverse change in the business, operations, financial condition, properties or assets of the Originator, or in any material
impairment of the right or ability of the Originator to carry on its business substantially as now conducted, or which would draw into question the validity of this Agreement or the Mortgage Loans or of any action taken or to be contemplated herein,
or which would be likely to impair materially the ability of the Originator to perform under the terms of this Agreement. 
  
 (g) The information about the Originator under the heading “The Originator” in the Prospectus relating to the Originator does not include an
untrue statement of a material fact and does not omit to state a material fact, with respect to the statements made, necessary in order to make the statements in light of the circumstances under which they were made not misleading. 
  
 (h) All financial statements provided by the Originator fairly present the
pertinent results of operations and changes in financial position for each of such periods and the financial position at the end of each such period of the Originator and its subsidiaries and have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods involved. 
  
 (i) There has been no material adverse change in the business, operations, financial condition or assets of the Originator since the date of the Originator’s most recent financial statements. 
  
 SECTION 3.3 Representations and Warranties of the Depositor.

  
 The Depositor hereby represents and warrants to the other
parties hereto as of the Closing Date that: 
  
 (a) The Depositor
has been duly organized and is validly existing as a corporation in good standing under the laws of Delaware, with full power and authority to own its assets and conduct its business as presently being conducted. 
  
 (b) The Depositor has the full corporate power and authority to execute and
deliver this Agreement and to perform its obligations hereunder, and the execution, delivery and performance of this Agreement (including all instruments of transfer to be delivered pursuant to this Agreement) by the Depositor and the consummation
of the transactions contemplated hereby have been duly and validly authorized. 
  
 (c) This Agreement constitutes a legal, valid and binding obligation of the Depositor, enforceable against the Depositor in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by general principles of equity (whether
considered in a proceeding at law or in equity). 
  

 41 

 (d) None of the execution and delivery of this Agreement, the transactions contemplated hereby or the
fulfillment of or compliance with the terms and conditions of this Agreement will conflict with or result in a breach of any of the terms, Certificate of Formation or bylaws or any legal restriction or any agreement or instrument to which the
Depositor is now a party or by which it is bound, or constitute a default or result in the violation of any law, rule, regulation, order, judgment or decree to which Depositor or its property is subject, or impair the ability of the Trust to realize
on the Mortgage Loans, or impair the value of the Mortgage Loans. 
  
 (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 Depositor of or compliance by the Depositor with this Agreement, or if required,
such consent, approval, authorization or order has been obtained prior to the related Closing Date. 
  
 (f) There is no action, suit, proceeding or investigation pending or to its knowledge threatened against the Depositor which, either individually or in
the aggregate, may result in any material adverse change in the business, operations, financial condition, properties or assets of the Depositor, or in any material impairment of the right or ability of the Depositor to carry on its business
substantially as now conducted, or which would draw into question the validity of this Agreement or the Mortgage Loans or of any action taken or to be contemplated herein, or which would be likely to impair materially the ability of the Depositor to
perform under the terms of this Agreement. 
  
 (g) Immediately
prior to the transfer by the Depositor to the Trust Fund of each Mortgage Loan, the Depositor had good and equitable title to each Mortgage Loan (insofar as such title was conveyed to it by the Sellers) subject to no prior lien, claim, participation
interest, mortgage, security interest, pledge, charge or other encumbrance or other interest of any nature. 
  
 (h) As of the Closing Date, the Depositor has transferred all right, title and interest in the Mortgage Loans to the Trust. 
  
 (i) The Depositor has not transferred the Mortgage Loans to the Trust Fund
with any intent to hinder, delay or defraud any of its creditors. 
  
 (j) The consideration received by the Depositor upon the sale of the Mortgage Loans under this Agreement constitutes fair consideration and reasonably equivalent value for the Mortgage Loans. 
  
 SECTION 3.4 Representations and Warranties of the Servicing Rights
Owner. 
  
 The Servicing Rights Owner hereby represents and
warrants to the other parties hereto as of the Closing Date that: 
  
 (a) The Servicing Rights Owner has been duly organized and is validly existing as a                      in good standing under the
laws of                     , with full power and authority to own its assets and conduct its business as presently being conducted.

  

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 (b) The Servicing Rights Owner has the full power and authority to execute and deliver this Agreement and
to perform its obligations hereunder, and the execution, delivery and performance of this Agreement (including all instruments of transfer to be delivered pursuant to this Agreement) by the Servicing Rights Owner and the consummation of the
transactions contemplated hereby have been duly and validly authorized. 
  
 (c) This Agreement constitutes a legal, valid and binding obligation of the Servicing Rights Owner, enforceable against the Servicing Rights Owner in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by general principles of equity
(whether considered in a proceeding at law or in equity). 
  
 (d)
None of the execution and delivery of this Agreement, the transactions contemplated hereby, or the fulfillment of or compliance with the terms and conditions of this Agreement will conflict with or result in a breach of any of the terms, Certificate
of Formation or operating agreement or any legal restriction or any agreement or instrument to which the Servicing Rights Owner is now a party or by which it is bound, or constitute a default or result in the violation of any law, rule, regulation,
order, judgment or decree to which Servicing Rights Owner or its property is subject, or impair the ability of the Trust to realize on the Mortgage Loans, or impair the value of the Mortgage Loans. 
  
 (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 Servicing Rights Owner of or compliance by the Servicing Rights Owner with this Agreement, or if required, such consent, approval, authorization or order has been obtained
prior to the related Closing Date. 
  
 (f) There is no action,
suit, proceeding or investigation pending or to its knowledge threatened against the Servicing Rights Owner which, either individually or in the aggregate, may result in any material adverse change in the business, operations, financial condition,
properties or assets of the Servicing Rights Owner, or in any material impairment of the right or ability of the Servicing Rights Owner to carry on its business substantially as now conducted, or which would draw into question the validity of this
Agreement or the Mortgage Loans or of any action taken or to be contemplated herein, or which would be likely to impair materially the ability of the Servicing Rights Owner to perform under the terms of this Agreement. 
  
 SECTION 3.5 Representations and Warranties of the Servicer.

  
 The Servicer hereby represents and warrants to the other
parties hereto as of the Closing Date that: 
  
 (a) The Servicer
has been duly organized and is validly existing in good standing under the laws of the jurisdiction of its organization, with full power and authority to own its assets and conduct its business as presently being conducted. 
  
 (b) The Servicer has the full power and authority to execute and deliver this
Agreement and to perform its obligations hereunder, and the execution, delivery and performance of this Agreement (including all instruments of transfer to be delivered pursuant to this Agreement) by the Servicer and the consummation of the
transactions contemplated hereby have been duly and validly authorized. 
  

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 (c) This Agreement constitutes a legal, valid and binding obligation of the Servicer, enforceable against
the Servicer in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights
in general and except as such enforceability may be limited by general principles of equity (whether considered in a proceeding at law or in equity). 
  
 (d) None of the execution and delivery of this Agreement, the transactions contemplated hereby, or the fulfillment of or compliance with the terms and
conditions of this Agreement will conflict with or result in a breach of any of the terms, articles of incorporation or by-laws or any legal restriction or any agreement or instrument to which the Servicer is now a party or by which it is bound, or
constitute a default or result in the violation of any law, rule, regulation, order, judgment or decree to which the Servicer or its property is subject, or impair the ability of the Trust to realize on the Mortgage Loans, or impair the value of the
Mortgage Loans. 
  
 (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 as evidenced by the consummation of the transactions contemplated by this
Agreement, or if required, such consent, approval, authorization or order has been obtained prior to the related Closing Date. 
  
 (f) There is no action, suit, proceeding or investigation pending or to its knowledge threatened against the Servicer which, either individually or in the
aggregate, may result in any material adverse change in the business, operations, financial condition, properties or assets of the Servicer, or in any material impairment of the right or ability of the Servicer to carry on its business substantially
as now conducted, or which would draw into question the validity of this Agreement or the Mortgage Loans or of any action taken or to be contemplated herein, or which would be likely to impair materially the ability of the Servicer to perform under
the terms of this Agreement. 
  
 (g) The consummation of the
transactions contemplated by this Agreement are in the ordinary course of business of the Servicer, who is in the business of selling and servicing loans. 
  
 (h) The Servicer is an approved servicer of conventional residential mortgage loans for Fannie Mae or Freddie Mac, with the facilities, procedures, and
experienced personnel necessary for the sound servicing of mortgage loans of the same type as the Mortgage Loans. The Servicer is a HUD approved mortgagee pursuant to Section 203 of the National Housing Act and is in good standing to service
mortgage loans for Fannie Mae or Freddie Mac, and no event has occurred, including but not limited to a change in insurance coverage, which would make the Servicer unable to comply with Fannie Mae or Freddie Mac eligibility requirements or which
would require notification to either Fannie Mae or Freddie Mac. 
  

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 (i) The Servicer acknowledges and agrees that the Subservicing Fee represents reasonable compensation for
performing such services and that the entire Subservicing Fee shall be treated by the Servicer, for accounting and tax purposes, as compensation for the servicing and administration of the Mortgage Loans pursuant to this Agreement. 
  
 (j) The Servicer does not believe, nor does it have any reason or cause to
believe, that it cannot perform each and every applicable covenant contained in this Agreement. The Servicer is solvent and the sale of the Mortgage Loans will not cause the Servicer to become insolvent. 
  
 (k) There has been no material adverse change in the business, operations,
financial condition or assets of the Servicer since the date of the Servicer’s most recent financial statements. 
  
 (l) The information about the Servicer under the heading “The Servicer and the Master Servicer” in the Prospectus relating to the Servicer does
not include an untrue statement of a material fact and does not omit to state a material fact, with respect to the statements made, necessary in order to make the statements in light of the circumstances under which they were made not misleading.

  
 SECTION 3.6 Representations and Warranties of the Master
Servicer. 
  
 The Master Servicer hereby represents and
warrants to the other parties hereto as of the Closing Date that: 
  
 (a) The Master Servicer has been duly organized and is validly existing as a                      in good standing under the laws of
                    , with full power and authority to own its assets and conduct its business as presently being conducted. 
  
 (b) The Master Servicer has the full power and authority to execute and
deliver this Agreement and to perform its obligations hereunder, and the execution, delivery and performance of this Agreement (including all instruments of transfer to be delivered pursuant to this Agreement) by the Master Servicer and the
consummation of the transactions contemplated hereby have been duly and validly authorized. 
  
 (c) This Agreement constitutes a legal, valid and binding obligation of the Master Servicer, enforceable against the Master Servicer in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and except as such enforceability may be limited by general principles of equity
(whether considered in a proceeding at law or in equity). 
  
 (d)
None of the execution and delivery of this Agreement, the transactions contemplated hereby, or the fulfillment of or compliance with the terms and conditions of this Agreement will conflict with or result in a breach of any of the terms, articles of
incorporation or by-laws or any legal restriction or any agreement or instrument to which the Master Servicer is now a party or by which it is bound, or constitute a default or result in the violation of any law, rule, regulation, order, judgment or
decree to which the Master Servicer or its property is subject, or impair the ability of the Trust to realize on the Mortgage Loans, or impair the value of the Mortgage Loans. 
  

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 (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 Master Servicer of or compliance by the Master Servicer with this Agreement as evidenced by the consummation of the transactions contemplated by this Agreement, or if required, such consent,
approval, authorization or order has been obtained prior to the related Closing Date. 
  
 (f) There is no action, suit, proceeding or investigation pending or to its knowledge threatened against the Master Servicer which, either individually or in the aggregate, may result in any material adverse change in
the business, operations, financial condition, properties or assets of the Master Servicer, or in any material impairment of the right or ability of the Master Servicer to carry on its business substantially as now conducted, or which would draw
into question the validity of this Agreement or the Mortgage Loans or of any action taken or to be contemplated herein, or which would be likely to impair materially the ability of the Master Servicer to perform under the terms of this Agreement.

  
 (g) The Master Servicer is an approved servicer of
conventional residential mortgage loans for Fannie Mae or Freddie Mac, with the facilities, procedures, and experienced personnel necessary for the sound servicing of mortgage loans of the same type as the Mortgage Loans. The Master Servicer or an
Affiliate of the Master Servicer is a HUD-approved mortgagee pursuant to Section 203 of the National Housing Act and is in good standing to service mortgage loans for Fannie Mae or Freddie Mac, and no event has occurred, including but not limited to
a change in insurance coverage, which would make the Master Servicer or an Affiliate of the Master Servicer unable to comply with Fannie Mae or Freddie Mac eligibility requirements or which would require notification to either Fannie Mae or Freddie
Mac. 
  
 SECTION 3.7 Representations and Warranties in respect
of the Mortgage Loans. 
  
 (a) The Originator hereby makes
those representations and warranties as to the characteristics of the Mortgage Loans set forth in Schedule B. 
  
 (b) Upon discovery or receipt of written notice by the Depositor, Master Servicer, the Securities Administrator, the Indenture Trustee or the Owner
Trustee that the Originator has breached any representation or warranty set forth in Schedule B in respect of a Mortgage Loan that materially and adversely affects the value of such Mortgage Loan or the interest therein of the Noteholders and
the Ownership Certificateholder, the Depositor, the Master Servicer, the Securities Administrator, the Indenture Trustee, or the Owner Trustee, as the case may be, promptly shall notify the other party in writing of such breach, and the Indenture
Trustee shall enforce the Originator’s obligations under this Agreement and cause the Originator to repurchase the related Mortgage Loan from the Trust Fund at the Repurchase Price on or prior to the Determination Date following the expiration
of the 90-day period following the earlier of the date on which the breach was discovered or notice of the breach was received by the Indenture Trustee; provided, however, that, subject to Sections 3.7(c) and (d) below, in
connection with any such breach that cannot reasonably be cured within such 90-day period, if the Originator shall have commenced to cure such breach within such 90-day period, the Originator shall be permitted to proceed thereafter diligently and
expeditiously to cure the breach within an additional 90-day period. 
  

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 (c) The Repurchase Price for any Mortgage Loan repurchased pursuant to Section 3.7(a) above shall be
deposited into the Collection Account. The Custodian, upon receipt of a Request for Release from the Securities Administrator on behalf of the Indenture Trustee (which Request for Release shall only be submitted upon certification of the repurchase
and the remittance of the Purchase Price to the Master Servicer and the Securities Administrator by the Originator, if the Securities Administrator and the Master Servicer are separate parties, and confirmation from the Master Servicer of such
deposit into the Collection Account), shall release to the Originator the related Mortgage File. The Indenture Trustee or its authorized designee shall execute and deliver such instruments of transfer or assignment, in each case without recourse,
representation or warranty, as the Originator may furnish to the Indenture Trustee or the Custodian and as shall be necessary to vest in such party any Mortgage Loan released pursuant hereto. None of the Indenture Trustee, the Securities
Administrator, the Master Servicer or the Custodian shall have any responsibility for determining the sufficiency of such assignment for its intended purpose, and upon such release the Indenture Trustee and the Custodian shall have no further
responsibility with regard to such Mortgage File. It is understood and agreed that the obligations of the Originator to cure, repurchase or substitute for any Mortgage Loan as to which a document is missing, a material defect in a constituent
document exists or as to which such a breach has occurred and is continuing shall constitute the sole remedy available to the Indenture Trustee on behalf of the Noteholders and the Ownership Certificateholder against such party respecting such
omission, defect or breach. If the Originator is not a member of MERS at the time it repurchases a Mortgage Loan and the Mortgage is registered on the MERS® System, the Indenture Trustee shall cause the Originator, at the Originator’s own
expense and without any right of reimbursement, to cause MERS to execute and deliver an assignment of the Mortgage in recordable form to transfer the Mortgage from MERS to the Originator and to cause such Mortgage to be removed from registration on
the MERS® System in accordance with the MERS rules and regulations. 
  
 (d) In lieu of repurchasing any such Mortgage Loan as provided above, the Originator (as such, the “Substituting Party”) may cause such Mortgage Loan to be removed from the Trust Fund (in which case it shall become a
“Deleted Mortgage Loan”) and substitute one or more Qualified Substitute Mortgage Loans in the manner and subject to the limitations of this Section 3.7. As to any Deleted Mortgage Loan for which the Substituting Party substitutes a
Qualified Substitute Mortgage Loan or Loans, such substitution shall be effected by delivering to the Custodian, for such Qualified Substitute Mortgage Loan or Loans, the Mortgage Note, the Mortgage, the assignment to the Substituting Party, and
such other documents and agreements, with all necessary endorsements thereon, together with an Officers’ Certificate stating that each such Qualified Substitute Mortgage Loan satisfies the definition thereof and specifying the Substitution
Adjustment Amount (as described below), if any, in connection with such substitution. The Custodian shall acknowledge receipt for such Qualified Substitute Mortgage Loan and, within 45 days thereafter, shall review such Mortgage Files and deliver to
the Substituting Party, the Master Servicer, the Indenture Trustee and the Depositor, with respect to such Qualified Substitute Mortgage Loans, a certification substantially in the form of a revised Initial Certification, with any exceptions noted
thereon. Within 180 days of the date of substitution, the Custodian shall deliver to the Substituting Party, the Master Servicer and the 
  

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 Depositor a certification substantially in the form of a revised Final Certification, with respect to such Qualified
Substitute Mortgage Loans, with any exceptions noted thereon. Scheduled Monthly Payments due with respect to Qualified Substitute Mortgage Loans in the month of substitution shall not be included as part of the Trust Fund and shall be retained by
the Substituting Party. For the month of substitution, payments to the Noteholders shall reflect the collections and recoveries in respect of such Deleted Mortgage Loan in the related Due Period and the Substituting Party shall thereafter be
entitled to retain all amounts subsequently received in respect of such Deleted Mortgage Loan. Upon such substitution, such Qualified Substitute Mortgage Loan shall constitute part of the Trust Fund and shall be subject in all respects to the terms
of this Agreement as of the date of substitution. 
  
 (e) The
Depositor shall amend the related Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage Loan and the substitution of the Qualified Substitute Mortgage Loan or Loans and the applicable Seller shall deliver the amended Mortgage Loan
Schedule to the Indenture Trustee, the Master Servicer, the Securities Administrator, the Custodian and the Servicer. Upon such substitution, the Qualified Substitute Mortgage Loan shall be subject to the terms of this Agreement in all respects, and
the applicable Seller and the Depositor shall be deemed to have made with respect to such Qualified Substitute Mortgage Loan, as of the date of substitution, the representations and warranties made pursuant to Sections 3.1 and 3.3, respectively,
with respect to such Mortgage Loan. 
  
 (f) For any month in which
any Substituting Party substitutes one or more Qualified Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Originator shall deposit the excess (each, a “Substitution Adjustment Amount”), if any, by which the
aggregate Scheduled Principal Balances of all such Deleted Mortgage Loans exceeds the aggregate Scheduled Principal Balances of the Qualified Substitute Mortgage Loans replacing such Deleted Mortgage Loans, together with one month’s interest on
such excess amount at the applicable Net Mortgage Rate. On the date of such substitution, the Originator shall deliver or cause to be delivered to the Master Servicer for deposit in the Collection Account an amount equal to the related Substitution
Adjustment Amount, if any, and the Custodian, upon receipt of the related Qualified Substitute Mortgage Loan or Loans, a Request for Release and a written certification by the Master Servicer of such deposit, shall release to the Substituting Party
the related Mortgage File or Files and the Custodian shall execute and deliver such instruments of transfer or assignment, in each case without recourse, representation or warranty, as the Substituting Party shall deliver to the Indenture Trustee
any Deleted Mortgage Loan released pursuant hereto as shall be necessary to vest therein. 
  
 ARTICLE IV 
  
 ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS BY THE SERVICER 
  
 SECTION 4.1 General. 
  
 (a) The Servicer, as an independent contractor, shall service and administer the Mortgage Loans on behalf of the Trust and, subject to the Servicing Rights held by the Servicing Rights Owner shall have full power and authority, acting alone
or through Servicers, to do any 
  

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 and all things in connection with such servicing and administration which the Servicer may deem necessary or desirable,
consistent with the terms of this Agreement and with Accepted Servicing Practices. In servicing and administering the Mortgage Loans, the Servicer shall employ procedures (including collection procedures) consistent with Accepted Servicing Practices
where such practices do not conflict with the requirements of this Agreement. 
  
 (b) Subject to the terms of this Agreement, the Servicer may waive, modify or vary any term of any Mortgage Loan or consent to the postponement of strict compliance with any such term or in any manner grant indulgence
to any Mortgagor if in the Servicer’s reasonable and prudent determination such waiver, modification, postponement or indulgence is not materially adverse to the Trust; provided, however, the Servicer shall not make any future
advances of funds to the Mortgagor with respect to a Mortgage Loan. In the event of any modification which permits the deferral of interest or principal payments on any Mortgage Loan, the Servicer shall, on the Business Day immediately preceding the
Servicer Remittance Date in any month in which any such principal or interest payment has been deferred, deposit as a Monthly Advance in the Custodial Account from its own funds the difference between (i) 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 (ii) the amount paid by the Mortgagor. The Servicer shall be entitled to reimbursement for such advances to the same extent as for
all other Monthly Advances. Without limiting the generality of the foregoing, the Servicer shall continue, and is hereby authorized and empowered, to execute and deliver on behalf of itself and the Trust, 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. If reasonably required by the Servicer, the Indenture Trustee shall furnish
the Servicer with any powers of attorney and other documents necessary or appropriate to enable the Servicer to carry out its servicing and administrative duties under this Agreement. 
  
 (c) The Servicer, with the consent of the Indenture Trustee, the Master Servicer and the Servicing Rights Owner, may arrange
for the subservicing of any Mortgage Loan it services by a Servicer pursuant to a subservicing agreement; provided, however, that such subservicing arrangement and the terms of the related subservicing agreement must provide for the
servicing of such Mortgage Loan in a manner consistent with the servicing arrangements contemplated hereunder. The Servicer shall be solely liable for all fees owed to the Servicer under the subservicing agreement, regardless whether the
Servicer’s compensation hereunder is adequate to pay such fees. Notwithstanding the provisions of any subservicing agreement, any of the provisions of this Agreement relating to agreements or arrangements between the Servicer and a Servicer or
reference to actions taken through a Servicer or otherwise, the Servicer shall remain obligated and liable to the Trust for the servicing and administration of the Mortgage Loans it services in accordance with the provisions of this Agreement
without diminution of such obligation or liability by virtue of such subservicing agreements or arrangements or by virtue of indemnification from the Servicer and to the same extent and under the same terms and conditions as if the Servicer alone
were servicing and administering those Mortgage Loans. All actions of each Servicer performed pursuant to the related subservicing agreement shall be performed as agent of the Servicer with the same force and effect as if performed directly by the
Servicer. For purposes of this Agreement, the Servicer shall be deemed to have received any collections, recoveries or payments with respect to the Mortgage Loans it services that are received by a Servicer regardless of whether such payments are
remitted by the Servicer to the 
  

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 Servicer. Any subservicing agreement entered into by the Servicer shall provide that it may be assumed or terminated by
the Master Servicer, if the Master Servicer has assumed the duties of the Servicer, or by any successor servicer, at the Master Servicer’s or successor servicer’s option, as applicable, without cost or obligation to the assuming or
terminating party or its assigns. Any subservicing agreement, and any other transactions or services relating to the Mortgage Loans involving a Servicer, shall be deemed to be between the Servicer and such Servicer alone, and the Master Servicer
shall not be deemed parties thereto and shall have no claims or rights of action against, rights, obligations, duties or liabilities to or with respect to the Servicer or its officers, directors or employees, except as set forth in Section 4.1(b).

  
 SECTION 4.2 Liquidation of Mortgage Loans. 

 
 In the event that any payment due under any Mortgage Loan and not
postponed pursuant to Section 4.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace
period, the Servicer shall take such action as (a) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (b) shall be consistent with Accepted Servicing Practices, (c)
the Servicer shall determine prudently to be in the best interest of the Trust, and (d) is consistent with any related PMI Policy or PPMI Policy. Foreclosure or comparable proceedings shall be initiated within 120 days of default for Mortgaged
Properties for which no satisfactory arrangements can be made for collection of delinquent payments unless prevented by statutory limitations or states whose insolvency laws prohibit such actions within such timeframe. As an alternative to
foreclosure, the Servicer may arrange for the sale of such Mortgage Loan to a third party in an arms length transaction and at fair market value. The Servicer shall use its commercially reasonable best efforts to realize upon defaulted Mortgage
Loans in such manner as will maximize the receipt of principal and interest by the Trust, taking into account, among other things, the timing of foreclosure proceedings. In such connection, the Servicer shall from its own funds make all necessary
and proper Servicing Advances; provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall
determine (x) that such preservation, restoration and/or foreclosure will increase the net proceeds of liquidation of the Mortgage Loan to the Trust after reimbursement for such expenses and (y) that such expenses will be recoverable by it either
through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.6) or through Insurance Proceeds (respecting which it shall have similar priority). 
  
 If the Servicer has knowledge that a Mortgaged Property that the Servicer 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 Servicer, the Servicer will, prior to acquiring the Mortgaged Property,
consider such risks and only take action in accordance with Accepted Servicing Practices. The Servicer shall not have any obligation to purchase any Mortgaged Property at any foreclosure sale. 
  

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 SECTION 4.3 Collection of Mortgage Loan Payments. 
  
 Continuously from the date hereof until the principal and interest on all
Mortgage Loans are paid in full or the Mortgage Loans have been fully liquidated (with respect to Mortgage Loans that remain subject to this Agreement), in accordance with this Agreement and Accepted Servicing Practices, the Servicer shall proceed
diligently to collect all payments due under each of the Mortgage Loans when the same shall become due and payable and shall ascertain and estimate Escrow Payments and all other charges that will become due and payable with respect to the Mortgage
Loan and the Mortgaged Property, 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. 
  
 Consistent with the foregoing, the Servicer may in its reasonable discretion (a) waive any late payment charge with respect
to a Mortgage Loan it services and (b) extend the due dates for payments due on a Mortgage Note for a period not greater than 120 days; provided, however, that the Servicer cannot extend the maturity of any such Mortgage Loan past the
date on which the final payment is due on the latest maturing Mortgage Loan as of the Cut-off Date. In the event of any such arrangement, the Servicer shall make Monthly Advances on the related Mortgage Loan during the scheduled period in accordance
with the amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements. 
  
 SECTION 4.4 Establishment of and Deposits to Custodial Account. 
  
 (a) The Servicer shall segregate and hold all funds collected and received pursuant to a Mortgage Loan separate and apart
from any of its own funds and general assets and shall establish and maintain one or more Custodial Accounts, in the form of time deposit or demand accounts, titled “Custodial Account of
                    , as Servicer for the benefit of First NLC Securitization Trust 200_-_.” The Custodial Account shall be established
as an Eligible Account. Upon request of the Master Servicer and within ten days thereof, the Servicer shall provide the Master Servicer with written confirmation of the existence of such Custodial Account. Any funds deposited in the Custodial
Account shall at all times be insured to the fullest extent allowed by applicable law. Funds deposited in the Custodial Account may be drawn on by the Servicer in accordance with Section 4.6. 
  
 (b) The Servicer shall deposit in the Custodial Account within two Business
Days of Servicer’s receipt, and retain therein, the following collections received by the Servicer and payments made by the Servicer after the Cut-off Date, other than payments of principal and interest due on or before the Cut-off Date, or
received by the Servicer prior to the Cut-off Date but allocable to a period subsequent thereto: 
  
 (i) all payments on account of principal on the Mortgage Loans, including all Principal Prepayments (including Prepayment Premiums paid by
any Mortgagor or by the Servicer pursuant to Section 4.22 of this Agreement); 
  
 (ii) all payments on account of interest on the Mortgage Loans adjusted to the Mortgage Loan Remittance Rate; 
  
 (iii) all Liquidation Proceeds; 
  

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 (iv) all Insurance Proceeds, including amounts required to be deposited pursuant to
Section 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 a Mortgagor in accordance with Section 4.15), Section 4.12 and Section 4.16; 
  
 (v) all Condemnation Proceeds which are not applied to the
restoration or repair of the Mortgaged Property or released to the Mortgagor in accordance with Section 4.15; 
  
 (vi) any amounts required to be deposited in the Custodial Account pursuant to Sections 4.1 or 5.2; 
  
 (vii) any amounts payable in connection with the repurchase
of any Mortgage Loan and all amounts required to be deposited by the Servicer in connection with a shortfall in principal amount of any Qualified Substitute Mortgage Loan pursuant to Section 3.7 above; 
  
 (viii) with respect to each Principal Prepayment and any
Prepayment Interest Shortfall, the Compensating Interest Payment (to be paid by the Servicer out of its own funds); 
  
 (ix) any amounts required to be deposited by the Servicer pursuant to 4.12 in connection with the deductible clause in any blanket hazard
insurance policy; 
  
 (x) any amounts received
with respect to or related to any REO Property and all REO Disposition Proceeds pursuant to Section 4.17; and 
  
 (xi) any other amounts required to be deposited into the Custodial Account hereunder. 
  
 (c) The Servicer shall deposit in the Custodial Account Monthly Advances in
accordance with Section 7.3. 
  
 The foregoing requirements for
deposit into 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, assumption fees and other ancillary income (other than
Prepayment Premiums), to the extent permitted by Section 5.3, need not be deposited by the Servicer into the Custodial Account. Any interest paid on funds deposited in the Custodial Account by the depository institution 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 4.6. The Servicer shall maintain adequate records with respect to all withdrawals made pursuant to this Section
4.4. All funds required to be deposited in the Custodial Account shall be held in trust for the Indenture Trustee for the benefit of the Noteholders until withdrawn in accordance with Section 4.6. 
  
 In the event that the Servicer shall remit any amount not required to be
remitted and not otherwise subject to withdrawal pursuant to Section 4.6, it may at any time withdraw such amount from the Custodian Account, any provision herein to the contrary notwithstanding. The 
  

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 Servicer shall maintain adequate records with respect to all withdrawals made pursuant to this Section. In no event shall
the Securities Administrator, the Master Servicer or the Indenture Trustee incur liability for withdrawals from the Custodian Account at the direction of the Servicer. 
  
 SECTION 4.5 Investment of Funds in the Custodial Account. 
  
 The depository institution at which the Custodial Account has been
established may at the direction of the Servicer, invest the funds in the Custodial Account only in Eligible Investments, which shall mature not later than the Business Day prior to the Servicer Remittance Date next following the date of such
investment. All income and gain realized from any such investment shall be for the benefit of the Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of any such investments shall
be deposited in the Custodial Account by the Servicer out of its own funds immediately as such losses are realized. 
  
 SECTION 4.6 Permitted Withdrawals From Custodial Account. 
  

The Servicer shall, from time to time, withdraw funds from the Custodial Account for the following purposes: 
  
 (a) to make remittances to the Master Servicer in the amounts and in the
manner provided for in Section 7.1; 
  
 (b) to reimburse itself
for Monthly Advances of the Servicer’s funds, the Servicer’s right to reimburse itself pursuant to this subclause (b) being limited to amounts received on the related Mortgage Loan which represent late payments of principal and/or interest
respecting which any such advance was made, it being understood that, in the case of any such reimbursement, the Servicer’s right thereto shall be prior to the rights of the Trust, except that, where the Servicer is required to repurchase a
Mortgage Loan pursuant to Section 5.2, the Servicer’s right to such reimbursement shall be subsequent to the payment to the Trust of the Repurchase Price pursuant to such Sections and all other amounts required to be paid to the Trust with
respect to such Mortgage Loan; 
  
 (c) to reimburse itself for
unreimbursed Servicing Advances, and for any unpaid Subservicing Fees, the Servicer’s right to reimburse itself pursuant to this subclause (c) with respect to any Mortgage Loan being limited to related Liquidation Proceeds, Condemnation
Proceeds, Insurance Proceeds and such other amounts as may be collected by the Servicer from the Mortgagor or otherwise relating to the Mortgage Loan, it being understood that, in the case of any such reimbursement, the Servicer’s right thereto
shall be prior to the rights of the Trust, except that where the Servicer is required to repurchase a Mortgage Loan pursuant to Section 5.2, in which case the Servicer’s right to such reimbursement shall be subsequent to the payment to the
Trust of the Repurchase Price pursuant to such Sections and all other amounts required to be paid to the Trust with respect to such Mortgage Loan; 
  
 (d) to pay itself as part of its servicing compensation interest on funds deposited in the Custodial Account if such interest amount was previously
credited; 
  

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 (e) to pay any amount required to be paid pursuant to Section 4.17 related to any REO Property, it being
understood that, in the case of any such expenditure or withdrawal related to a particular REO Property, the amount of such expenditure or withdrawal from the Custodial Account shall be limited to amounts on deposit in the Custodial Account with
respect to the related REO Property; 
  
 (f) to reimburse itself
for any Servicing Advances or expenses after liquidation of the Mortgaged Property not otherwise reimbursed above; 
  
 (g) to pay the premiums with respect to any PPMI Policy; 
  
 (h) to remove funds inadvertently placed in the Custodial Account by the Servicer; 
  
 (i) to clear and terminate the Custodial Account upon the termination of this Agreement; 
  
 (j) to transfer funds to another Eligible Account; and 
  
 (k) to invest funds only in Eligible Investments. 
  
 The Servicer may use such withdrawn funds only for the purposes described in
this Section 4.6. The Servicer shall keep and maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from the Custodial Account. 
  
 SECTION 4.7 Establishment of and Deposits to Escrow Account.

  
 (a) The Servicer shall segregate and hold all funds collected
and received pursuant to a Mortgage Loan constituting Escrow Payments separate and apart from any of its own funds and general assets and shall establish and maintain one or more Escrow Accounts, in the form of time deposit or demand accounts,
titled, “Escrow Account of                     , as Servicer for the benefit of First NLC Securitization Trust
200  -  .” The Escrow Account shall be established as an Eligible Account, in a manner which shall provide maximum available insurance thereunder. Upon request of the Master Servicer and within ten days
thereof, the Servicer shall provide the Master Servicer with written confirmation of the existence of such Escrow Account. Funds deposited in the Escrow Account may be drawn on by the Servicer in accordance with Section 4.8. 
  
 (b) The Servicer shall deposit in the Escrow Account or Accounts within two
Business Days of Servicer’s receipt, and retain therein: 
  
 (i) all Escrow Payments collected on account of the Mortgage Loans, for the purpose of effecting timely payment of any such items as required under the terms of this Agreement; and 
  
 (ii) all amounts representing Insurance Proceeds or
Condemnation Proceeds which are to be applied to the restoration or repair of any Mortgaged Property. 
  

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 The Servicer shall make withdrawals from the Escrow Account only to effect such payments as are required
under this Agreement, as set forth in Section 4.8. The Servicer 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
any Mortgagor. To the extent required by law, the Servicer shall pay interest on escrowed funds to a Mortgagor notwithstanding that the Escrow Account may be non-interest bearing or that interest paid thereon is insufficient for such purposes.

  
 SECTION 4.8 Permitted Withdrawals From Escrow Account.

  
 Withdrawals from the Escrow Account or Accounts may be made
by the Servicer only: 
  
 (a) to effect timely payments of ground
rents, taxes, assessments, water rates, mortgage insurance premiums, condominium charges, fire and hazard insurance premiums or other items constituting Escrow Payments for the related Mortgage; 
  
 (b) to reimburse the Servicer for any Servicing Advances made by the Servicer
pursuant to Section 4.9 with respect to a related Mortgage Loan, but only from amounts received on the related Mortgage Loan which represent late collections of Escrow Payments thereunder; 
  
 (c) to refund to any Mortgagor any funds found to be in excess of the amounts
required under the terms of the related Mortgage Loan; 
  
 (d) for
transfer to the Custodial Account for application to reduce the principal balance of the Mortgage Loan in accordance with the terms of the related Mortgage and Mortgage Note; 
  
 (e) for application to the restoration or repair of the Mortgaged Property in accordance with the procedures outlined in
Section 4.15; 
  
 (f) to pay to the Servicer, or any Mortgagor to
the extent required by law, any interest paid on the funds deposited in the Escrow Account; 
  
 (g) to remove funds inadvertently placed in the Escrow Account by the Servicer; and 
  
 (h) to clear and terminate the Escrow Account on the termination of this Agreement. 
  
 SECTION 4.9 Payment of Taxes, Insurance and Other Charges. 
  
 With respect to each Mortgage Loan, the Servicer shall maintain accurate
records reflecting the status of ground rents, taxes, assessments, water rates, sewer rents, and other charges which are or may become a lien upon the Mortgaged Property and the status of PMI 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, 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. The Servicer assumes full responsibility for the timely payment of all such bills
and shall effect 
  

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 timely payment of all such charges irrespective of each Mortgagor’s faithful performance in the payment of same of
the making of the Escrow Payments, and the Servicer shall make advances from its own funds to effect such payments, which advances shall constitute Servicing Advances hereunder; provided, however, that the Servicer shall be required to
so advance only to the extent that the Servicer, in its good faith judgment, believes the Servicing Advance to be recoverable from Insurance Proceeds or Liquidation Proceeds or otherwise. To the extent that a Mortgage does not provide for Escrow
Payments, the Servicer shall use its reasonable efforts in accordance with Accepted Servicing Practices to determine whether any such payments are made by the Mortgagor at the time they first become due. The Servicer shall make advances from its own
funds to effect such delinquent payments within such time period as will avoid the loss of the related Mortgaged Property by foreclosure of a tax or other lien. The costs incurred by the Servicer, if any, in effecting the timely payments of taxes
and assessments on the Mortgaged Properties and related insurance premiums shall not be added to the Scheduled Principal Balances of the related Mortgage Loans, notwithstanding that the terms of such Mortgage Loans so permit. 
  
 SECTION 4.10 Transfer of Accounts. 
  
 The Servicer may transfer the Custodial Account or the Escrow Account to a
different Eligible Account from time to time; provided, however, that the Servicer shall give notice to the Master Servicer, the Indenture Trustee and the Securities Administrator of any proposed change of the location of either
Account not later than ten Business Days prior to any change thereof. 
  
 SECTION 4.11 Maintenance of Hazard Insurance. 
  
 The Servicer shall cause to be maintained for each Mortgage Loan hazard insurance such that all buildings upon the Mortgaged Property are insured by an insurer acceptable to Fannie Mae or Freddie Mac against loss by fire, hazards of
extended coverage and such other hazards as are customary or required by law in the area where the Mortgaged Property is located, in an amount which is at least equal to the lesser of (a) 100% of the maximum insurable value of the improvements
securing such Mortgage Loan and (b) the greater of (i) the outstanding principal balance of the Mortgage Loan and (ii) an amount such that the proceeds thereof shall be sufficient to prevent the Mortgagor or the loss payee from becoming a
co-insurer. In the event a hazard insurance policy shall be in danger of being terminated, or in the event the insurer shall cease to be acceptable to Fannie Mae or Freddie Mac, the Servicer shall notify the related Mortgagor, and shall use its
commercially reasonable best efforts, as permitted by applicable law, to obtain from another qualified insurer a replacement hazard insurance policy substantially and materially similar in all respects to the original policy. In no event, however,
shall a Mortgage Loan be without a hazard insurance policy at any time, subject only to Section 4.12. 
  
 If the related Mortgaged Property is located in an area identified by the Flood Emergency Management Agency as having special flood hazards (and such
flood insurance has been made available), the Servicer will cause to be maintained a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance
carrier acceptable to Fannie Mae or Freddie Mac in an amount representing coverage equal to the lesser of (a) the minimum amount required, under the terms of coverage, to compensate for any damage or loss on a replacement cost basis (or the unpaid

  

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 balance of the mortgage if replacement cost coverage is not available for the type of building insured) and (b) 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 Servicer determines in accordance with applicable law and pursuant to the FEMA
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 Servicer shall
notify the related Mortgagor to obtain such flood insurance coverage, and if said Mortgagor fails to obtain the required flood insurance coverage within 45 days after such notification, the Servicer shall immediately force place the required flood
insurance on the Mortgagor’s behalf. Any out-of-pocket expenses or advance made by the Servicer on such force placed flood insurance coverage shall be deemed a Servicing Advance. 
  
 If a Mortgage is secured by a unit in a condominium project, the Servicer shall verify that the coverage required of the
owner’s association, including hazard, flood, liability, and fidelity coverage, is being maintained in accordance with then current Fannie Mae or Freddie Mac requirements, and secure from the owner’s association its agreement to notify the
Servicer promptly of any change in the insurance coverage or of any condemnation or casualty loss that may have a material effect on the value of the Mortgaged Property as security. 
  
 In the event that the Servicer shall determine that the Mortgaged Property should be insured against loss or damage by
hazards and risks not covered by the insurance required to be maintained by the Mortgagor pursuant to the terms of the Mortgage, the Servicer shall communicate and consult with the Mortgagor with respect to the need for such insurance and bring to
the Mortgagor’s attention the desirability of protection of the Mortgaged Property. 
  
 All policies required hereunder shall name the Servicer as loss payee and shall be endorsed with standard mortgagee clauses, without contribution, which shall provide for at least 30 days prior written notice of any
cancellation, reduction in amount or material change in coverage. 
  
 The Servicer shall not interfere with the Mortgagor’s freedom of choice in selecting either an insurance carrier or agent; provided, however, that the Servicer shall not accept any such insurance policies from insurance
companies unless such companies are acceptable to Fannie Mae or Freddie Mac and are licensed to do business in the jurisdiction in which the Mortgaged Property is located. The Servicer shall determine that such policies provide sufficient risk
coverage and amounts, that they insure the property owner, and that they properly describe the property address. The Servicer shall furnish to the Mortgagor a formal notice of expiration of any such insurance in sufficient time for the Mortgagor to
arrange for renewal coverage by the expiration date. 
  
 Pursuant
to Section 4.4, 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 related Mortgaged Property, or property acquired in liquidation
of the Mortgage Loan, or to be released to the Mortgagor, in accordance with the Servicer’s normal servicing procedures as specified in Section 4.15) shall be deposited in the Custodial Account subject to withdrawal pursuant to Section 4.6.

  

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 SECTION 4.12 Maintenance of Blanket Mortgage Hazard Insurance. 
  
 In the event that the Servicer shall obtain and maintain a blanket policy
insuring against losses arising from fire and hazards covered under extended coverage on all of the Mortgage Loans, then, to the extent such policy (a) names the Servicer as loss payee, (b) provides coverage in an amount equal to the amount required
pursuant to Section 4.11 without coinsurance and (c) otherwise complies with Accepted Servicing Practices and all other requirements of Section 4.11, it shall conclusively be deemed to have satisfied its obligations as set forth in Section 4.11. The
Servicer shall prepare and make any claims on the blanket policy as deemed necessary by the Servicer in accordance with prudent servicing practices. Any amounts collected by the Servicer under any such policy relating to a Mortgage Loan shall be
deposited in the Custodial Account subject to withdrawal pursuant to Section 4.6. Such policy may contain a deductible clause, in which case, in the event that there shall not have been maintained on the related Mortgaged Property a policy complying
with Section 4.11, and there shall have been a loss which would have been covered by such policy, the Servicer shall deposit in the Custodial Account at the time of such loss the amount not otherwise payable under the blanket policy because of such
deductible clause, such amount to be deposited from the Servicer’s funds, without reimbursement therefor. Upon request of the Master Servicer, the Servicer shall cause to be delivered to the Master Servicer or the Indenture Trustee, as the case
may be, a certified true copy of any such policy. 
  
 SECTION 4.13
Maintenance of Fidelity Bond and Errors and Omissions Insurance. 
  
 The Servicer shall maintain with responsible companies, at its own expense, a blanket Fidelity Bond and an Errors and Omissions Insurance Policy, with broad coverage on all officers, employees or other persons acting
in any capacity requiring such persons to handle funds, money, documents or papers relating to the Mortgage Loans. Any such Fidelity Bond and Errors and Omissions Insurance Policy 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 Policy also shall protect and insure
the Servicer against losses in connection with the release or satisfaction of a Mortgage Loan without having obtained payment in full of the indebtedness secured thereby. No provision of this Section 4.13 requiring such Fidelity Bond and Errors and
Omissions Insurance Policy 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 Errors and Omissions Insurance Policy shall be at least equal to
the amounts acceptable to Fannie Mae or Freddie Mac. Upon the request of the Master Servicer or the Indenture Trustee, the Servicer shall cause to be delivered to the Master Servicer or the Indenture Trustee, as the case may be, a certificate of
insurance for such Fidelity Bond and Errors and Omissions Insurance Policy. 
  
 SECTION 4.14 Inspections. 
  
 If any Mortgage Loan is more than 60 days delinquent, the Servicer immediately shall inspect the Mortgaged Property and shall conduct subsequent inspections in accordance with Accepted Servicing Practices or as may be required by any
primary mortgage guaranty insurer. The Servicer shall keep a written report of each such inspection. 
  

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 SECTION 4.15 Restoration of Mortgaged Property. 
  
 The Servicer need not obtain the approval of the Master Servicer or the
Indenture Trustee prior to releasing any Insurance Proceeds or Condemnation Proceeds to any Mortgagor to be applied to the restoration or repair of any Mortgaged Property if such release is in accordance with Accepted Servicing Practices. For claims
greater than $15,000, at a minimum the Servicer shall comply with the following conditions in connection with any such release of Insurance Proceeds or Condemnation Proceeds: 
  
 (a) the Servicer shall receive satisfactory independent verification of completion of repairs and issuance of any required
approvals with respect thereto; 
  
 (b) the Servicer shall take
all steps necessary to preserve the priority of the lien of the Mortgage, including, but not limited to requiring waivers with respect to mechanics’ and materialmen’s liens; 
  
 (c) the Servicer shall verify that the Mortgage Loan is not in default; and 
  
 (d) pending repairs or restoration, the Servicer shall place the Insurance
Proceeds or Condemnation Proceeds in the Escrow Account. 
  
 If
the Trust is named as an additional loss payee, the Servicer is hereby empowered to endorse any loss draft issued in respect of such a claim in the name of the Trust. 
  
 SECTION 4.16 Maintenance of PMI Policy; Claims. 
  
 The Servicer will maintain or cause to be maintained in full force and effect any PPMI Policy issued by a mortgage insurer
with respect to each Mortgage Loan for which such coverage is in existence or is obtained. The Originator shall notify the Servicer of any Mortgage Loan covered under an PPMI Policy. The Servicer shall not take any action which would result in
non-coverage under any applicable PMI Policy or PPMI 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 5.1, the Servicer shall promptly notify the insurer under the related PMI Policy or PPMI Policy, if any, of such assumption or substitution of liability in accordance with the terms of such PMI Policy or PPMI Policy and shall
take all actions which may be required by such insurer as a condition to the continuation of coverage under such PMI Policy or PPMI Policy. If such PMI Policy or PPMI Policy is terminated as a result of such assumption or substitution of liability,
the Servicer shall obtain a replacement PMI Policy or PPMI Policy as provided below. In the event that a PMI Policy shall be terminated other than as required by law, the Servicer shall obtain from another Qualified Insurer a comparable replacement
policy, with a total coverage equal to the remaining coverage of such terminated PMI Policy. If the insurer shall cease to be a Qualified Insurer, the Servicer shall determine whether recoveries under the PMI Policy are jeopardized for reasons
related to the financial condition of such insurer, it being understood that the Servicer shall in no event have any responsibility or liability for any failure to recover under the PMI Policy for such reason. If the Servicer determines that
recoveries are so jeopardized, it shall notify the Master Servicer and the Mortgagor, if required, and obtain from another Qualified Insurer a replacement insurance policy. 
  

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 In connection with its activities as servicer, the Servicer agrees to prepare and present, on behalf of
itself and the Trust, claims to the insurer under any PMI Policy or PPMI Policy in a timely fashion in accordance with the terms of such PMI Policy or PPMI Policy and, in this regard, to take such action as shall be necessary to permit recovery
under any PMI Policy or PPMI Policy respecting a defaulted Mortgage Loan. Pursuant to Section 4.4, any amounts collected by the Servicer under any PMI Policy or PPMI Policy shall be deposited in the Custodial Account, subject to withdrawal pursuant
to Section 4.6. 
  
 SECTION 4.17 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 Trust, or in the event the Trust 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 Servicer from any attorney duly licensed to practice law in the state where the REO Property is located. The Person or Persons holding such title other than the Trust shall acknowledge
in writing that such title is being held as nominee for the Trust. 
  
 The Servicer shall manage, conserve, protect and operate each REO Property for the Trust solely for the purpose of its prompt disposition and sale. The Servicer, either itself or through an agent selected by the Servicer, shall manage,
conserve, protect and operate the REO Property consistent with Accepted Servicing Practices. The Servicer shall attempt to sell the same (and may temporarily rent the same for a period not greater than one year, except as otherwise provided below)
on such terms and conditions as the Servicer deems to be in the best interest of the Trust. 
  
 The Servicer shall use its commercially reasonable 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 Servicer determines, and gives an appropriate notice to the Master Servicer to such effect, that a longer period is necessary for the orderly liquidation of such REO Property. If a period longer than one year is permitted under
the foregoing sentence and is necessary to sell any REO Property, (x) the Servicer shall report monthly to the Master Servicer and the Indenture Trustee as to the progress being made in selling such REO Property and (y) if a purchase money mortgage
is taken in connection with such sale, such purchase money mortgage shall name the Servicer as mortgagee. 
  
 The Servicer shall also maintain on each REO Property fire and hazard insurance with extended coverage in 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 the amount required above.

  

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 The disposition of REO Property 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 interests of the Trust. The proceeds of 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 unreimbursed Servicing Advances, unpaid Subservicing Fees and unreimbursed advances. On the Servicer Remittance Date immediately following the Prepayment Period in which such sale proceeds are
received, the net cash proceeds of such sale remaining in the Custodial Account shall be remitted to the Master Servicer. 
  
 The Servicer shall withdraw from the Custodial Account funds necessary for the proper operation management and maintenance of the REO Property, including
the cost of maintaining any hazard insurance pursuant to Section 4.11. The Servicer shall make monthly remittances on each Servicer Remittance Date to the Master Servicer of the net cash flow from the REO Property (which shall equal the
revenues from such REO Property net of the expenses described in this Section 4.17 and of any reserves reasonably required from time to time to be maintained to satisfy anticipated liabilities for such expenses). 
  
 SECTION 4.18 Real Estate Owned Reports. 
  
 The Servicer shall furnish to the Master Servicer on or before the Servicer
Remittance Date each month a statement with respect to any REO Property covering the operation of such REO Property for the previous month and the Servicer’s efforts in connection with the sale of such REO Property and any rental of such REO
Property incidental to the sale thereof for the previous month. That statement shall be accompanied by such other information as the Master Servicer shall reasonably request. 
  
 SECTION 4.19 Liquidation Reports. 
  
 Upon the foreclosure sale of any Mortgaged Property or the acquisition thereof by the Trust pursuant to a deed in lieu of
foreclosure, the Servicer shall submit to the Master Servicer a liquidation report with respect to such Mortgaged Property. 
  
 SECTION 4.20 Reports of Foreclosure and Abandonment of Mortgaged Property. 
  
 Following the foreclosure sale or abandonment of any Mortgaged Property, the Servicer shall report such foreclosure or
abandonment as required pursuant to Section 6050J of the Code. The Servicer shall file information reports with respect to the receipt of mortgage interest received in a trade or business and information returns relating to cancellation of
indebtedness income with respect to any Mortgaged Property as required by the Code. Such reports shall be in form and substance sufficient to meet the reporting requirements imposed by the Code. 
  
 SECTION 4.21 Notification of Adjustments. 
  
 With respect to each Mortgage Loan, the Servicer shall adjust the Mortgage
Rate on the related Adjustment Date in compliance with the requirements of applicable law and the related Mortgage and Mortgage Note. The Servicer shall execute and deliver any and all necessary notices required under applicable law and the terms of
the related Mortgage Note and Mortgage regarding the Mortgage Rate adjustments. Upon the discovery by the Servicer or the receipt of 
  

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 notice from the Master Servicer that the Servicer has failed to adjust a Mortgage Rate in accordance with the terms of
the related Mortgage Note, the Servicer shall immediately deposit in the Custodial Account from its own funds the amount of any interest loss or deferral caused thereby. 
  
 SECTION 4.22 Prepayment Premiums. 
  
 (a) To the extent consistent with the terms of this Agreement, the Servicer may waive (or permit a servicer to waive) a
Prepayment Premium only under the following circumstances: (i) such waiver 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 Premium and the related Mortgage Loan or (ii) such waiver is required under state or federal law. The Servicer shall not waive any Prepayment Premium unless it is waived in accordance with this Section 4.22(a). 

 
 (b) The Servicer shall pay the amount of any Prepayment Premium (to the
extent not collected and remitted to the Trust) to the Master Servicer or its assignees if (i) the representation in Section 3.5 is breached and such breach materially and adversely affects the interests of the Trust or its assigns, (ii) the
Servicer waives any Prepayment Premium other than as permitted under Section 4.22(a) or (iii) such Prepayment Premium is not collectable as a result of its enforceability being found to be limited or prohibited by applicable law. The Servicer shall
pay the amount of such Prepayment Premium, for the benefit of the Trust or any assignee of the Trust, by depositing such amount into the Custodial Account at the time that the amount prepaid on the related Mortgage Loan is required to be deposited
into the Custodial Account. 
  
 SECTION 4.23 Credit Reporting;
Gramm Leach Bliley Act. 
  
 (a) The Servicer agrees to fully
furnish, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (e.g., favorable and unfavorable) on its mortgagor credit files to Equifax, Experian, and Trans Union Credit Information
Servicer (three of the credit repositories), on a monthly basis. 
  
 (b) The Servicer agrees to transmit full-file credit reporting data for each Mortgage Loan pursuant to Exhibit I and for each Mortgage Loan, the Servicer shall report one of the following statuses each month: new origination;
current; delinquent (30-, 60-, 90-days, etc.); foreclosed or charged-off. 
  
 (c) The Servicer shall comply with Title V of the Gramm-Leach-Bliley Act of 1999 and all applicable regulations promulgated thereunder, relating to the Mortgage Loans and the related Mortgagors and shall provide all
required notices thereunder. 
  

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 ARTICLE V 
  

GENERAL SERVICING PROCEDURES 
  
 SECTION 5.1 Transfers of Mortgaged Property. 
  
 The Servicer shall use its commercially reasonable best efforts to enforce any “due-on-sale” provision contained in any Mortgage or Mortgage
Note and to deny assumption by the person to whom the Mortgaged Property has been or is about to be sold whether by absolute conveyance or by contract of sale, and whether or not the Mortgagor remains liable on the Mortgage and the Mortgage Note.
When the Mortgaged Property has been conveyed by the Mortgagor, the Servicer shall, to the extent it has knowledge of such conveyance, exercise its rights to accelerate the maturity of such Mortgage Loan under the “due-on-sale” clause
applicable thereto; provided, however, that the Servicer shall not exercise such rights if prohibited by law from doing so or if the exercise of such rights would impair or threaten to impair any recovery under the related PMI Policy,
if any. 
  
 If the Servicer reasonably believes it is unable under
applicable law to enforce such “due-on-sale” clause or such enforcement would impair or threaten to impair any recovery under the related PMI Policy, if any, the Servicer shall enter into (a) an assumption and modification agreement with
the person to whom such property has been conveyed, pursuant to which such person becomes liable under the Mortgage Note and the original Mortgagor remains liable thereon or (b) in the event the Servicer is unable under applicable law to require
that the original Mortgagor remain liable under the Mortgage Note and the Servicer has the prior consent of the primary mortgage guaranty insurer, a substitution of liability agreement with the purchaser of the Mortgaged Property pursuant to which
the original Mortgagor is released from liability and the purchaser of the Mortgaged Property is substituted as Mortgagor and becomes liable under the Mortgage Note. If an assumption fee is collected by the Servicer for entering into an assumption
agreement the fee will be retained by the Servicer as additional servicing compensation. In connection with any such assumption, neither the Mortgage Rate borne by the related Mortgage Note, the term of the Mortgage Loan, the outstanding principal
amount of the Mortgage Loan nor any other material terms shall be changed without Master Servicer’s consent. 
  
 To the extent that any Mortgage Loan is assumable, the Servicer shall inquire diligently into the credit-worthiness of the proposed transferee, and shall
use the underwriting criteria for approving the credit of the proposed transferee which are used with respect to underwriting mortgage loans by the applicable Seller of the same type as the Mortgage Loans. If the credit-worthiness of the proposed
transferee does not meet such underwriting criteria, the Servicer diligently shall, to the extent permitted by the Mortgage or the Mortgage Note and by applicable law, accelerate the maturity of the Mortgage Loan. 
  
 SECTION 5.2 Satisfaction of Mortgages and Release of Mortgage Files.

  
 (a) Upon the payment in full of any Mortgage Loan, or the
receipt by the Servicer of a notification that payment in full will be escrowed in a manner customary for such purposes, the Servicer shall request the release of any Mortgage Loan Documents. 
  

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 If the Servicer satisfies or releases a Mortgage without first having obtained payment in full of the
indebtedness secured by the Mortgage or should the Servicer otherwise prejudice any rights the Trust may have under the mortgage instruments, upon written demand of the Master Servicer, the Servicer shall repurchase the related Mortgage Loan at the
Repurchase Price by deposit thereof in the Custodial Account within two Business Days of receipt of such demand by the Master Servicer. The Servicer shall maintain the Fidelity Bond and Errors and Omissions Insurance Policy as provided for in
Section 4.13 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. 
  
 (b) Upon (i) becoming aware of the payment in full of any Mortgage Loan or (ii) the receipt by the Servicer of a
notification that payment in full has been or will be escrowed in a manner customary for such purposes, the Servicer will promptly notify the Indenture Trustee and Custodian by a certification (which certification shall include a statement to the
effect that all amounts received in connection with such payment that are required to be deposited in the Collection Account maintained by the Servicer pursuant to Section 7.4 have been or will be so deposited) of a Servicing Officer and shall
request the Custodian, to deliver to the Servicer the related Mortgage File. Upon receipt of such certification and Request for Release, the Custodian shall promptly release the related Mortgage File to the Servicer and the Indenture Trustee shall
have no further responsibility with regard to such Mortgage File. Upon any such payment in full, the Servicer is authorized to give, as agent for the Indenture Trustee, as the mortgagee under the Mortgage that secured the Mortgage Loan, an
instrument of satisfaction (or assignment of mortgage without recourse) regarding the Mortgaged Property subject to the Mortgage, which instrument of satisfaction or assignment, as the case may be, shall be delivered to the Person or Persons
entitled thereto against receipt therefor of such payment, it being understood and agreed that no expenses incurred in connection with such instrument of satisfaction or assignment, as the case may be, shall be chargeable to the Collection Account.

  
 (c) From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan, the Indenture Trustee shall execute such documents as shall be prepared and furnished to the Indenture Trustee by the Servicer (in form reasonably acceptable to the Indenture Trustee) and as are necessary to the
prosecution of any such proceedings. The Indenture Trustee shall, upon request of the Servicer, as applicable, and delivery to the Indenture Trustee, of a trust receipt signed by a Servicing Officer, cause the Custodian to release the related
Mortgage File held in its possession or control to the Servicer. Such trust receipt shall obligate the Servicer to return the Mortgage File to the Custodian when the need therefor by the Servicer no longer exists unless the Mortgage Loan shall be
liquidated, in which case, upon receipt of a certificate of a Servicing Officer similar to that hereinabove specified, the trust receipt shall be released by the Indenture Trustee to the Servicer. 
  
 (d) The Indenture Trustee shall furnish the Servicer, upon request, with any
powers of attorney empowering the Servicer to execute and deliver instruments of satisfaction or cancellation, or of partial or full release or discharge, and to foreclose upon or otherwise liquidate Mortgaged Property, and to appeal, prosecute or
defend in any court action relating to the Mortgage Loans or the Mortgaged Property, in accordance with this Agreement, and the Indenture Trustee shall execute and deliver such other documents as the Servicer may request, necessary or appropriate to
enable the Servicer to service the Mortgage Loans and carry out its 
  

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 duties hereunder, in each case in accordance with Accepted Servicing Practices (and the Indenture Trustee shall have no
liability for misuse of any such powers of attorney by the Servicer). 
  
 (e) In no event shall the Servicer, without the Indenture Trustee’s written consent, (i) initiate any action, suit or proceeding solely under the Indenture Trustee’s name without indicating the Servicer’s representative
capacity or (ii) take any action with the intent to cause, and which actually does cause, the Indenture Trustee to be registered to do business in any state. The Servicer shall indemnify the Indenture Trustee for any and all costs, liabilities and
expenses incurred by the Indenture Trustee in connection with the negligent or willful misuse of such powers of attorney by the Servicer. In the performance of its duties hereunder, the Servicer shall be an independent contractor and shall not,
except in those instances where it is taking action in the name of the Indenture Trustee, be deemed to be the agent of the Indenture Trustee. 
  
 SECTION 5.3 Servicing Compensation. 
  
 As compensation for its services hereunder, the Servicer shall be entitled to withdraw from the Custodial Account the amount of its Subservicing Fee to
the extent deposited on the Servicing Remittance Date. The Subservicing Fee shall be payable monthly and shall be computed on the basis of the same unpaid scheduled principal balance and for the period respecting which any related interest payment
on a Mortgage Loan is computed. The obligation of the Trust to pay the Subservicing Fee is limited to, and payable solely from, the interest portion of such Scheduled Monthly Payments. Notwithstanding the foregoing, with respect to the payment of
the Subservicing Fee for any month, the aggregate Subservicing Fee shall be reduced (but not below zero) by an amount equal to the Compensating Interest Payment for the related Payment Date. 
  
 Additional servicing compensation in the form of assumption fees, to the
extent provided in Section 5.1, late payment charges and other ancillary income (other than Prepayment Premiums) 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 thereof except as specifically provided for herein. 
  
 SECTION 5.4 Annual Statement as to Compliance. 
  
 The Servicer shall deliver to the Master Servicer, the Depositor and the Securities Administrator, on or before March [-] of
each year, commencing in March 200  , an Officer’s Certificate, stating that (a) a review of the activities of the Servicer during the preceding fiscal year and of performance under this Agreement has been made under such
officer’s supervision, and (b) to the best of such officer’s knowledge, based on such review, the Servicer has fulfilled all its obligations under this Agreement throughout such fiscal 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 and the action being taken by the Servicer to cure such default. 
  

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 The Master Servicer shall deliver to the Depositor, on or before March [-] of each year, commencing in
March 200_, an Officer’s Certificate, stating that (a) a review of the activities of the Master Servicer during the preceding fiscal year and of performance under this Agreement has been made under such officer’s supervision, and (b) to
the best of such officer’s knowledge, based on such review, the Master Servicer has fulfilled all its obligations under this Agreement throughout such fiscal 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 and the action being taken by the Master Servicer to cure such default. 
  
 SECTION 5.5 Annual Independent Public Accountants’ Servicing Report. 
  
 On or before March [-] of each year, commencing in March 200_, 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 effect that such firm has examined certain documents and records relating to the servicing of the residential
mortgage loans by the Servicer during such fiscal year and that such firm is of the opinion that, on the basis of such examination conducted substantially in compliance with the Uniform Single Attestation Program for Mortgage Bankers, nothing has
come to their attention which would indicate that such servicing has not been conducted in compliance therewith, except for (a) such exceptions as such firm shall believe to be immaterial, and (b) such other exceptions as shall be set forth in such
statement. By providing the Master Servicer, the Depositor and the Securities Administrator a copy of a Uniform Single Attestation Program Report from their independent public accountant’s on an annual basis, the Servicer shall be considered to
have fulfilled its obligations under this Section 5.5. 
  
 On or
before March [-] of each year, commencing in March 200_, the Master 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 effect that such firm has examined certain documents and records relating to the servicing of the residential mortgage loans by the Master Servicer during such fiscal year and that such firm is of the opinion that, on the basis of such
examination conducted substantially in compliance with the Uniform Single Attestation Program for Mortgage Bankers, nothing has come to their attention which would indicate that such servicing has not been conducted in compliance therewith, except
for (a) such exceptions as such firm shall believe to be immaterial, and (b) such other exceptions as shall be set forth in such statement. By providing the Depositor and the Securities Administrator a copy of a Uniform Single Attestation Program
Report from their independent public accountant’s on an annual basis, the Master Servicer shall be considered to have fulfilled its obligations under this Section 5.5. 
  
 SECTION 5.6 Sarbanes-Oxley Related Certifications. 
  
 (a) On or before March [-] of each year, commencing in March 200_, or at any other time upon 30 days written request from
the Depositor, an officer of the Servicer shall execute and deliver an Officer’s Certificate to the Depositor, signed by the President, Managing Director or a Vice President in charge of servicing operations of the Servicer certifying as to the
following matters: 
  

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 (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 Securities Administrator 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 and the Securities Administrator by the Servicer under the Transfer and Servicing Agreement also has been provided to the Depositor; 
  
 (iii) I am responsible for reviewing the activities performed by the Servicer under the Transfer and
Servicing Agreement and based upon the review required by the Transfer and Servicing Agreement, and except as disclosed in the Annual Statement of Compliance or the Annual Independent Public Accountant’s Servicing Report, the Servicer has, as
of the date of this certification, fulfilled its obligations under the Transfer and Servicing Agreement; and 
  
 (iv) I have disclosed to the Master Servicer, the Depositor and the Securities Administrator all significant deficiencies relating to the
Servicer’s compliance with the minimum servicing standards in accordance with a review conducted in compliance with the Uniform Single Attestation Program for Mortgage Bankers or similar standard as set forth in the Transfer and Servicing
Agreement. 
  
 (b) The Servicer shall indemnify and hold harmless
the Master Servicer, the Depositor and the Securities Administrator and its officers, directors, agents and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments and other
costs and expenses arising out of or based upon a breach by the Servicer or any of its officers, directors, agents or affiliates of its obligations under this Section 5.6 or the negligence or willful misconduct of the Servicer in connection
therewith. If the indemnification provided for herein is unavailable or insufficient to hold harmless the Master Servicer, the Depositor and the Securities Administrator then the Servicer agrees that it shall contribute to the amount paid or payable
by the Master Servicer, the Depositor and the Securities Administrator as a result of the losses, claims, damages or liabilities of such parties in such proportion as is appropriate to reflect the relative fault of such parties on the one hand and
the Servicer on the other in connection with a breach of the Servicer’s obligations under this Section 5.6 or the Servicer’s negligence or willful misconduct in connection therewith. 
  
 (c) On or before March [-] of each year, commencing in March 200_, or at any
other time upon 30 days written request from the Depositor, an officer of the Securities Administrator shall execute and deliver an Officer’s Certificate to the Depositor, signed by a Responsible Officer that is a vice president or managing
director of the Securities Administrator as set forth in clause (a) of Exhibit H hereto. 
  
 (d) On or before March [-] of each year, commencing in March 200_, or at any other time upon 30 days written request from the Depositor, an officer of the
Master Servicer shall execute and deliver an Officer’s Certificate to the Depositor, signed by the Master Servicer as set forth in clause (b) of Exhibit H hereto. 
  

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 (e) Each of the Securities Administrator and the Master Servicer shall indemnify and hold harmless the
Depositor and its officers, directors, agents and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments and other costs and expenses arising out of or based upon a breach
by the Securities Administrator or the Master Servicer, as applicable, or any of its officers, directors, agents or affiliates of its obligations under this Section 5.6 or the negligence or willful misconduct of the Master Servicer, as applicable,
in connection therewith. If the indemnification provided for herein is unavailable or insufficient to hold harmless the Depositor then the Securities Administrator or the Master Servicer, as applicable, agrees that it shall contribute to the amount
paid or payable by the Depositor as a result of the losses, claims, damages or liabilities of such parties in such proportion as is appropriate to reflect the relative fault of such parties on the one hand and the Servicer on the other in connection
with a breach of the Master Servicer’s obligations under this Section 5.6 or the Master Servicer’s negligence or willful misconduct in connection therewith. 
  
 (f) The Servicer, the Master Servicer and the Depositor acknowledge that the laws, rules and regulations governing the
foregoing certifications may change before the Notes are paid in their entirety. To that end, each agrees that it will provide such additional certifications as such revised laws, rules and regulations may require. 
  
 SECTION 5.7 Examination Rights. 
  
 (a) The Master Servicer, the Indenture Trustee, the Depositor and the
Securities Administrator, or its designee, shall have the right to examine and audit any and all of the related books, records, or other information of the Servicer, whether held by the Servicer or by another on its behalf, with respect to or
concerning this Agreement or the Mortgage Loans, during business hours or at such other times as may be reasonable under applicable circumstances, upon reasonable advance notice. Each party shall pay its own travel expenses associated with such
examination. 
  
 (b) The Depositor, or its designee, shall have
the right to examine any and all of the related books, records, or other information of the Master Servicer and the Securities Administrator, whether held by the Master Servicer and the Securities Administrator or by another on their behalf, solely
and specifically relating to this Agreement or the Mortgage Loans, during business hours or at such other times as may be reasonable under applicable circumstances, upon reasonable advance notice; provided, however, that such examination will not be
permitted to the extent such examination would be inconsistent with (i) the Master Servicer’s of Securities Administrator’s current reasonable procedures and policies in effect at such time, (ii) applicable law (including any rules and
regulations promulgated thereunder), including but not limited to applicable copyright and trademark laws, (iii) any evidentiary privileges that the Master Servicer or Securities Administrator may have with respect to such materials, i.e.,
disclosure of such materials may cause the Master Servicer or Securities Administrator to lose such privilege, and (iv) the confidentiality obligations imposed upon the Master Servicer or Securities Administrator by any unaffiliated third-party
relating to such books of account and records. Each party shall pay its own travel expenses associated with such examination. 
  

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 (c) The Depositor or its employees, agents, representatives and attorneys may inspect the facilities and
records of each of the Servicer and the Master Servicer during normal business hours and upon reasonable prior written notice. Each of the Servicer, the Master Servicer and the Securities Administrator shall make available for interview to the
Depositor or its employees, agents, representatives and attorneys, such officers and employees that responsible for and/or knowledgeable about the performance of the applicable party’s obligations under the Operative Documents. Any such
inspection or interview shall be upon reasonable advance notice and only as long as such inspection or interview does not disrupt the operations of the Master Servicer. 
  
 SECTION 5.8 Servicer Events of Default. 
  
 Each of the following shall constitute a Servicer Event of Default on the part of the Servicer: 
  
 (a) any failure by the Servicer to remit to the Master Servicer any payment
required to be made under the terms of this Agreement; 
  
 (b)
failure by 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, including, but not limited to, breach by the Servicer of any one or more of
the representations, warranties and covenants of the Servicer as set forth in Section 3.5, which continues unremedied for a period of 30 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been
given to the Servicer by the Master Servicer or the Indenture Trustee; 
  
 (c) failure by the Servicer to maintain its license to do business in any jurisdiction where the Mortgaged Property is located if such license is required; 
  
 (d) a decree or order of a court or agency or supervisory authority having jurisdiction for the appointment of a conservator
or receiver or liquidator in any insolvency, readjustment of debt, including bankruptcy, 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 60 days; 
  
 (e) the Servicer shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets
and liabilities or similar proceedings of or relating to the Servicer or of or relating to all or substantially all of its assets; 
  
 (f) 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, bankruptcy or reorganization statute, make an assignment for the benefit of its creditors, voluntarily suspend payment of its obligations or cease its normal business operations for three Business Days; 
  
 (g) the Servicer ceases to meet the Servicer eligibility qualifications of
Fannie Mae or Freddie Mac; or 
  

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 (h) the Servicer attempts to assign its right to servicing compensation hereunder or to assign this
Agreement or the servicing responsibilities hereunder or to delegate its duties hereunder or any portion thereof in violation of Section 5.10. 
  
 If the Servicer obtains knowledge of a Servicer Event of Default, the Servicer shall promptly notify the Master Servicer and the Indenture Trustee. In
each and every such case, so long as a Servicer Event of Default shall not have been remedied, in addition to whatever rights the Master Servicer or the Indenture Trustee may have at law or equity to damages, including injunctive relief and specific
performance, the Master Servicer or the Indenture Trustee, by notice in writing to the Servicer, may terminate all the rights and obligations of the Servicer under this Agreement and in and to the Mortgage Loans and the proceeds thereof. 

 
 Upon 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 6.12. 
  
 SECTION 5.9 Waiver of Defaults. 
  
 By a written notice, the Master Servicer may waive any default by the Servicer in the performance of its obligations
hereunder and its consequences. Upon any waiver of a past default, such default shall cease to exist, and any Servicer 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. 
  
 SECTION 5.10 Limitation on Resignation and Assignment by Servicer. 
  
 The Servicer shall not assign this Agreement or the servicing hereunder or delegate its rights or duties hereunder or any
portion hereof or sell or otherwise dispose of all of its property or assets without the prior written consent of the Master Servicer or the Indenture Trustee, which consent shall not be unreasonably withheld. 
  
 The Servicer shall not resign from the obligations and duties hereby imposed
on it except by mutual consent of the Servicer, the Indenture Trustee and the Master Servicer 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 Master Servicer and the Indenture Trustee, which Opinion of Counsel shall be in form and substance acceptable
to the Master Servicer and the Indenture Trustee. No such resignation shall become effective until a successor acceptable to the Master Servicer and the Indenture Trustee shall have assumed the Servicer’s responsibilities and obligations.

  

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 Without in any way limiting the generality of this Section 5.10, in the event that the Servicer either
shall assign this Agreement or the servicing responsibilities hereunder or delegate its 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 consent of
the Master Servicer and the Indenture Trustee, then the Master Servicer and the Indenture Trustee shall have the right to terminate this Agreement with respect to the Servicer upon notice given as set forth in Section 5.8, without any payment of any
penalty or damages and without any liability whatsoever to the Servicer or any third party. 
  
 In connection with the foregoing, the Servicer being terminated shall bear all reasonable out-of-pocket costs of a servicing transfer, including but not limited to those of the Master Servicer, the Securities
Administrator, the Indenture Trustee, legal fees and expenses, accounting and financial consulting fees and expenses, and costs of amending the Agreement, if necessary. If such amounts are not paid by the terminated Servicer, they shall be paid from
amounts held in the Collection Account. 
  
 SECTION 5.11 Merger
or Consolidation of Servicer. 
  
 Any Person into which the
Servicer may be merged or consolidated, or any Person resulting from any merger, conversion, other change in form or consolidation to which the Servicer shall be a party, or any Person succeeding to the business of the Servicer, shall be the
successor to the Servicer hereunder, without the execution or filing of any paper or any further act on the party of any of the parties hereto, anything herein to the contrary notwithstanding; provided, however, that the successor or
resulting Person to the Servicer shall be a Person that shall be qualified and approved (or that have an Affiliate that is qualified and approved) to service mortgage loans for Fannie Mae or Freddie Mac and shall a net worth of not less than
$25,000,000. In accordance with the foregoing, on an unspecified date following the execution of this Agreement, the Servicer expects to enter into an agreement in which it will transfer substantially all of its rights and obligations to
                             and
                             will assume all of such rights and obligations, and
                             shall become the Servicer for all purposes under this Agreement and
                             shall have no rights or obligations under this Agreement. 
  
 SECTION 5.12 Termination without Cause. 
  
 The Servicing Rights Owner may terminate the Servicer without cause upon 90
days prior written notice; provided, however, that no such termination will be effective until the assumption of a successor servicer appointed in accordance with Section 6.12. Notwithstanding the foregoing, if the Servicer is
terminated without cause, the Servicing Rights Owner or a successor servicer shall reimburse the Servicer for all accrued and unpaid Servicing Fees and unreimbursed Monthly Advances and Servicing Advances upon the transfer of servicing to such
successor servicer. Furthermore, the Servicer shall bear no cost or expense in connection with the transfer of servicing and shall be reimbursed for any out-of-pocket costs related thereto. 
  

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 SECTION 5.13 Opinion. 
  
 On or before the Closing Date, the Servicer shall cause to be delivered to the Depositor, the Sellers, the Indenture
Trustee, the Trust, the Securities Administrator and the Master Servicer one or more Opinions of Counsel, dated the Closing Date, in form and substance reasonably satisfactory to the recipients thereof, as to the due authorization, execution and
delivery of this Agreement by the Servicer and the enforceability thereof. 
  
 SECTION 5.14 Indemnification; Third Party Claims. 
  
 (a) The Servicer agrees to indemnify the Depositor, the Trust, the Indenture Trustee, the Owner Trustee, the Servicing Rights Owner, the Securities Administrator and the Master Servicer and hold them harmless against
any and all claims, losses, penalties, fines, forfeitures, legal fees and related costs, judgments, and any other costs, liability, fees and expenses that the Depositor, the Trust, the Indenture Trustee, the Owner Trustee, the Servicing Rights Owner
or the Master Servicer may sustain as a result of the failure of the Servicer to perform its duties and its obligations under this Agreement and its duties and obligations to service the Mortgage Loans in compliance with the terms of this Agreement.
The Depositor, the Trust, the Indenture Trustee, the Owner Trustee, the Servicing Rights Owner or the Master Servicer shall immediately notify the Servicer if a claim is made by a third party with respect to this Agreement or the Mortgage Loans
entitling the Depositor, the Trust, the Indenture Trustee, the Owner Trustee, the Servicing Rights Owner or the Master Servicer to indemnification under this Section 5.14, whereupon the Servicer shall assume the defense of any such claim and pay all
expenses in connection therewith, including counsel fees, and promptly pay, discharge and satisfy any judgment or decree which may be entered against it or them in respect of such claim. 
  
 (b) The Depositor, the Servicer, the Master Servicer, the Securities Administrator and any director, officer, employee or
agent of the Depositor, the Master Servicer and the Servicer shall be indemnified by the Trust Fund and held harmless against any loss, liability or expense incurred in connection with any audit, controversy or judicial proceeding relating to a
governmental taxing authority or any legal action relating to this Agreement or the Notes or any other unanticipated or extraordinary expense, other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or
negligence (or gross negligence in the case of the Depositor) in the performance of duties hereunder or by reason of reckless disregard of obligations and duties hereunder. None of the Depositor, the Master Servicer or the Servicer shall be under
any obligation to appear in, prosecute or defend any legal action that is not incidental to its respective duties hereunder and which in its opinion may involve it in any expense or liability; provided, however, that each of the
Depositor, the Master Servicer and the Servicer may in its sole discretion undertake any such that it may deem necessary or desirable in respect of this Agreement and the rights and duties of the parties hereto and interests of the Indenture Trustee
and the Noteholders hereunder. In such event, the legal expenses and costs of such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Trust Fund, and the Depositor, the Master Servicer and the Servicer shall
be entitled to be reimbursed therefor out of the Collection Account. 
  

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 SECTION 5.15 Documents, Records and Funds in Possession of Servicer To Be Held for Indenture
Trustee. 
  
 (a) The Servicer shall transmit to the Custodian
such documents and instruments coming into the possession of the Servicer from time to time as are required by the terms hereof to be delivered to the Custodian. Any funds received by the Servicer in respect of any Mortgage Loan or which otherwise
are collected by the Servicer as Liquidation Proceeds or Insurance Proceeds in respect of any Mortgage Loan shall be held for the benefit of the Indenture Trustee, the Noteholders and the Ownership Certificateholder subject to the Servicer’s
right to retain or withdraw amounts provided in this Agreement, to the right of the Servicer to retain its Subservicing Fee and other amounts as provided herein and to the Servicing Rights Owner to obtain its Servicing Rights Fee. The Servicer shall
provide access to information and documentation regarding the Mortgage Loans to the Indenture Trustee, its respective agents and accountants at any time upon reasonable request and during normal business hours, and to the Noteholders and the
Ownership Certificateholder 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 Servicer designated by it. In fulfilling such a request the 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 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 Servicer for and on behalf of the Indenture Trustee as the
Indenture Trustee’s agent and bailee for purposes of perfecting the Indenture Trustee’s security interest therein as provided by relevant UCC or laws; provided, however, that the Servicer shall be entitled to setoff against,
and deduct from, any such funds any amounts that are properly due and payable to the Servicer under this Agreement and shall be authorized to remit such funds to the Indenture Trustee in accordance with this Agreement. 
  
 (c) The Servicer hereby acknowledges that concurrently with the execution of
this Agreement, the Indenture Trustee shall have a security interest in the Mortgage Loans and in all Mortgage Files representing such Mortgage Loans and in all funds and investment property now or hereafter held by, or under the control of, the
Servicer are collected by the Servicer in connection with the Mortgage Loans, whether as scheduled installments of principal and interest or as full or partial prepayments of principal or interest or as Liquidation Proceeds or Insurance Proceeds or
otherwise, and in all proceeds of the foregoing and proceeds of proceeds (but excluding any fee or other amounts to which the Servicer is entitled to hereunder); and the Servicer agrees that so long as the Mortgage Loans are collaterally assigned to
and held by the Indenture Trustee, all documents or instruments constituting part of the Mortgage Files, and such funds relating to the Mortgage Loans which come into the possession or custody of, or which are subject to the control of, the Servicer
shall be held by the Servicer and on behalf of the Indenture Trustee as the Indenture Trustee’s agent and bailee for purposes of perfecting the Indenture Trustee’s security interest therein as provided by the applicable UCC or other
applicable laws. 
  

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 ARTICLE VI 
  

ADMINISTRATION AND SERVICING OF MORTGAGE LOANS BY THE MASTER SERVICER 
  
 SECTION 6.1 Duties of the Master Servicer. 
  
 (a) For and on behalf of the Trust, the Indenture Trustee, the Noteholders and the Ownership Certificateholder, the Master
Servicer shall master service the Mortgage Loans in accordance with the Accepted Master Servicing Practices and the provisions of this Agreement. 
  
 (b) The Master Servicer shall not be required to (i) take any action with respect to the servicing of any Mortgage Loan that the Servicer is not required
to take under this Agreement and (ii) cause the Servicer to take any action or refrain from taking any action if this Agreement does not require the Servicer to take such action or refrain from taking such action. 
  
 (c) The Master Servicer, for the benefit of the Trust, the Indenture Trustee,
the Noteholders and the Ownership Certificateholder, shall enforce the obligations of the Servicer hereunder, and shall, in the event that the Servicer fails to perform its obligations in accordance herewith, terminate the rights and obligations of
the Servicer hereunder and either act as servicer of the related Mortgage Loans or cause other parties to either assume the obligations of the Servicer under this Agreement (or agree to execute and deliver a successor subservicing agreement with a
successor servicer). The Master Servicer shall pay the costs of such enforcement at its own expense, and shall be reimbursed for the costs of such enforcement initially (i) from a general recovery resulting from such enforcement only to the extent,
if any, that such recovery exceeds all amounts due in respect of the related Mortgage Loans, (ii) from a specific recovery of costs, expenses or attorneys’ fees against the party against whom such enforcement is directed, and then, (iii) to the
extent that such amounts are insufficient to reimburse the Master Servicer for the costs of such enforcement, from the Collection Account. 
  
 SECTION 6.2 Master Servicer Errors and Omissions Insurance Policy. 
  
 (a)
                                        ,
in its individual capacity and not in its capacity as the Master Servicer, at its expense, shall maintain in effect 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 (a “Master Servicer Errors and Omissions Policy”). The Master Servicer Errors and
Omissions Insurance Policy shall be in such form and amount that would be consistent with coverage customarily maintained by master servicers of mortgage loans similar to the Mortgage Loans. The Master Servicer shall provide the Depositor and the
Indenture Trustee, upon request, with a copy of such policy and Fidelity Bond. 
  

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 (b) The Master Servicer shall promptly report to the Indenture Trustee and the Securities Administrator
any material changes that may occur in the Master Servicer’s errors and omissions insurance policy that would cause such policy not to qualify as a Master Servicer’s Errors and Omissions Insurance Policy. The Master Servicer shall furnish
to either the Indenture Trustee or the Securities Administrator upon request, certificates evidencing that such bond and insurance policy are in full force and effect. The Master Servicer shall promptly report to the Indenture Trustee and the
Depositor all cases of embezzlement or fraud, if such events involve funds relating to the Mortgage Loans. The total losses, regardless of whether claims are filed with the applicable insurer or surety, shall be disclosed in such reports together
with the amount of such losses covered by insurance. If a bond or insurance claim report is filed with any of such bonding companies or insurers relating to the Mortgage Loans, the Master Servicer shall promptly furnish a copy of such report to the
Indenture Trustee and the Securities Administrator. Any amounts relating to the Mortgage Loans collected by the Master Servicer under any such bond or policy shall be promptly deposited into the Collection Account. 
  
 SECTION 6.3 Power to Act; Procedures. 
  
 (a) The Master Servicer shall master service the Mortgage Loans. The Master
Servicer shall not take, or knowingly permit the Servicer to take, any action that is inconsistent with or prejudices the interests of the Trust, the Indenture Trustee, the Noteholders or the Ownership Certificateholder in any Mortgage Loan or the
rights and interests of the Depositor, the Trust, the Indenture Trustee and the Noteholders and the Ownership Certificateholder under this Agreement and the Indenture. 
  
 SECTION 6.4 Master Servicer Liable for Enforcement. 
  
 The Master Servicer shall use commercially reasonable efforts to ensure that the Mortgage Loans are serviced in accordance
with the provisions of this Agreement and shall use commercially reasonable efforts to enforce the applicable provisions of this Agreement for the benefit of the Noteholders and the Ownership Certificateholder. The Master Servicer shall be entitled
to enter into any agreement with the Servicer for indemnification of the Master Servicer and nothing contained in this Agreement shall be deemed to limit or modify such indemnification. Except as expressly set forth herein, the Master Servicer shall
have no liability for the acts or omissions of the Servicer in the performance by such Servicer of its obligations. 
  
 SECTION 6.5 Alternative Index. 
  
 In the event that the Index for any Mortgage Loan, as specified in the related Mortgage Note, becomes unavailable for any reason, the Servicer shall
select an alternative index in accordance with the terms of such Mortgage Note or, if such Mortgage Note does not make provision for the selection of an alternative index in such event, the Servicing Rights Owner shall, subject to applicable law,
select an alternative index based on information comparable to that used in connection with the original Index and, in either case, such alternative index shall thereafter be the Index for such Mortgage Loan. 
  

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 SECTION 6.6 Compensation to the Master Servicer. 
  
 Pursuant to Section 7.5, the Master Servicer will be entitled to the Master
Servicer Fee on each Payment Date after the Master Servicer has paid the Indenture Trustee Fee due on such Payment Date. Pursuant to Section 7.4(e), all income and gain realized from any investment of funds in the Collection Account shall be for the
benefit of the Master Servicer as compensation. Notwithstanding the foregoing, the Master Servicer shall deposit in the Collection Account, on or before the related Payment Date, an amount equal to the lesser of (a) its master servicing compensation
with respect to such Payment Date and (b) the amount of any Compensating Interest Payment required to be paid by the Servicer with respect to such Payment Date pursuant to this Agreement, but which is not paid by the Servicer. 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 6.7 Merger or Consolidation. 
  
 Any Person into which the Master Servicer may be merged or consolidated, or any Person resulting from any merger,
conversion, other change in form or consolidation to which the Master Servicer shall be a party, or any Person succeeding to the business of the Master Servicer, shall be the successor to the Master Servicer hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided, however, that the successor or resulting Person to the Master Servicer shall be a Person that
shall be qualified and approved (or that have an Affiliate that is qualified and approved) to service mortgage loans for Fannie Mae or Freddie Mac and shall have a net worth of not less than $25,000,000. 
  
 SECTION 6.8 Resignation of Master Servicer. 
  
 Except as otherwise provided in Section 6.13 and this Section 6.8, the
Master Servicer shall not resign from the obligations and duties hereby imposed on it unless a successor master servicer has been appointed pursuant to Section 6.14. No such resignation shall become effective until a successor master servicer shall
have been appointed by the Indenture Trustee and until such successor shall have assumed the Master Servicer’s responsibilities and obligations under this Agreement. Notice of such resignation shall be given promptly by the Master Servicer and
the Depositor to the Indenture Trustee. 
  
 Upon the resignation
of the Master Servicer and the appointment of a successor master servicer, the Securities Administrator, if the same party, also may resign with notice to the Depositor and the Indenture Trustee. 
  
 SECTION 6.9 Assignment or Delegation of Duties by the Master Servicer.

  
 Except as expressly provided herein, the Master Servicer
shall not assign or transfer any of its rights, benefits or privileges hereunder to any other Person, or delegate to or subcontract with, or authorize or appoint any other Person to perform any of the duties, covenants or obligations to be performed
by the Master Servicer hereunder, unless the Indenture Trustee and the Depositor shall have consented to such action; provided, however, that the Master Servicer shall have the right without the prior written consent of the Indenture
Trustee or the Depositor to 
  

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 delegate or assign to or subcontract with or authorize or appoint an Affiliate of the Master Servicer to perform and
carry out any duties, covenants or obligations to be performed and carried out by the Master Servicer hereunder. In no case, however, shall any such delegation, subcontracting or assignment to an Affiliate of the Master Servicer relieve the Master
Servicer of any liability hereunder. Notice of such permitted assignment shall be given promptly by the Master Servicer to the Depositor and the Indenture Trustee. If, pursuant to any provision hereof, the duties of the Master Servicer are
transferred to a successor master servicer, the entire amount of compensation payable to the Master Servicer pursuant hereto, including amounts payable to or permitted to be retained or withdrawn by the Master Servicer pursuant to Section 6.6, shall
thereafter be payable to such successor master servicer. 
  
 SECTION 6.10 Limitation on Liability of the Master Servicer and Others. 
  
 (a) The Master Servicer undertakes to perform such duties and only such duties as are specifically set forth in this Agreement. 
  

(b) No provision of this Agreement shall be construed to relieve the Master Servicer from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct; provided, however, that the duties and obligations of the Master Servicer shall be determined solely by the express provisions of this Agreement, the Master Servicer shall not be liable
except for the performance of such duties and obligations as are specifically set forth in this Agreement; no implied covenants or obligations shall be read into this Agreement against the Master Servicer and, in absence of bad faith on the part of
the Master Servicer, the Master Servicer may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Master Servicer and conforming to the
requirements of this Agreement. 
  
 (c) Neither the Master
Servicer nor any of the directors, officers, employees or agents of the Master Servicer shall be under any liability to the Indenture Trustee or to the Noteholders or the Ownership Certificateholder for any action taken or for refraining from the
taking of any action in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Master Servicer or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence in its performance of its duties or by reason of reckless disregard for its obligations and duties under this Agreement. The Master Servicer and any director, officer, employee or
agent of the Master Servicer shall be entitled to indemnification by the Trust Fund and will be held harmless against any loss, liability or expense incurred in connection with any legal action relating to this Agreement, Notes or the Ownership
Certificate other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of his or its duties hereunder or by reason of reckless disregard of his or its obligations and duties
hereunder. The Master Servicer and any director, officer, employee or agent of the Master Servicer may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder.
The Master Servicer shall be under no obligation to appear in, prosecute or defend any legal action that is not incidental to its duties to master service the Mortgage Loans in accordance with this Agreement and that in its opinion may involve it in
any expenses or liability; provided, however, that the Master Servicer may in its sole discretion undertake any such action that it may deem necessary or desirable in respect to 
  

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 this Agreement and the rights and duties of the parties hereto and the interests of the Noteholders or the Ownership
Certificateholder hereunder. In such event, the legal expenses and costs of such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Trust and the Master Servicer shall be entitled to be reimbursed therefor
out of the Collection Account. 
  
 SECTION 6.11
Indemnification; Third-Party Claims. 
  
 The Master
Servicer agrees to indemnify the Depositor, the Trust, the Indenture Trustee, the Owner Trustee, the Servicing Rights Owner and the Servicer and hold them harmless against any and all claims, losses, penalties, fines, forfeitures, legal fees and
related costs, judgments, and any other costs, liability, fees and expenses that the Depositor, the Trust, the Indenture Trustee, the Owner Trustee, the Servicing Rights Owner or the Servicer may sustain as a result of the failure of the Master
Servicer to perform its duties hereunder in compliance with the terms of this Agreement. The Depositor, the Trust, the Indenture Trustee, the Owner Trustee, the Servicing Rights Owner or the Servicer shall immediately notify the Master Servicer if a
claim is made by a third party with respect to this Agreement or with respect to the Mortgage Loans entitling the Depositor, the Trust, the Indenture Trustee, the Owner Trustee, the Servicing Rights Owner or the Servicer to indemnification under
this Section 6.11, whereupon the Master Servicer shall assume the defense of any such claim and pay all expenses in connection therewith, including counsel fees, and promptly pay, discharge and satisfy any judgment or decree which may be entered
against it or them in respect of such claim. 
  
 SECTION 6.12
Master Servicer to Act as Servicer; Appointment of Successor. 
  
 (a) The Master Servicer shall be entitled to terminate the rights and obligations of the Servicer, as applicable, upon the occurrence of a Servicer Event of Default; provided, however, that in the event of termination of the
Servicer by the Master Servicer, the Master Servicer shall provide for the servicing of the Mortgage Loans by a successor servicer as provided in this Section 6.12. 
  
 (b) The Master Servicer will provide written notice of the Servicer’s termination to the Servicer and the Servicing
Rights Owner at least 15 Business Days prior to such termination becoming effective. Upon receipt of such notice, the Servicing Rights Owner may nominate a successor servicer to the Master Servicer. If the Master Servicer does not reasonably object
to the proposed successor servicer, the Master Servicer shall appoint such proposed successor servicer as the successor servicer. If the Master Servicer does object to the proposed successor servicer, the Servicing Rights Owner may propose a second
successor servicer. If the Master Servicer objects to the second proposed successor servicer, in its sole discretion, it will appoint a successor servicer or assume the obligations of the Servicer itself. 
  
 (c) On and after the time any Servicer resigns or is terminated pursuant to
the terms of this Agreement, the Master Servicer either shall appoint a successor servicer pursuant to this Agreement or shall assume the obligations of such Servicer in its capacity as Servicer under this Agreement and the transactions set forth or
provided for herein and shall be subject to all the responsibilities, duties and liabilities relating thereto placed on such Servicer by the terms and provisions of this Agreement and applicable law; provided, however, it is understood
and 
  

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 acknowledged by the parties hereto that there will be a period of transition (not to exceed 90 days) before the actual
servicing functions can be fully transferred to such successor servicer. As compensation therefor, the Master Servicer shall be entitled to all funds relating to the Mortgage Loans that the Servicer would have been entitled to charge to the related
Collection Account if the Servicer had continued to act hereunder. Notwithstanding the foregoing, if the Master Servicer has become the successor to the Servicer, the Master Servicer may, if it shall be unwilling to so act, 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 as the successor to the Servicer pursuant to this Agreement in the assumption of all or any part of the
responsibilities, duties or liabilities of the Servicer thereunder. 
  
 (d) Any successor to the Servicer shall be an institution that is a Fannie Mae-and Freddie Mac-approved servicer in good standing, has a net worth of at least $25,000,000 and is willing to service the Mortgage Loans and shall execute and
deliver to the Depositor, the Indenture Trustee, the Securities Administrator and the Master Servicer an agreement accepting such delegation and assignment, which contains an assumption by such Person of the rights, powers, duties, responsibilities,
obligations and liabilities of such Servicer, with like effect as if originally named as a party to this Agreement; provided further that each Rating Agency acknowledges that its rating of the Notes in effect immediately prior to such
assignment and delegation shall not be downgraded, withdrawn or qualified as a result of such assignment and delegation. Pending the appointment of a successor to the terminated Servicer, the Master Servicer shall act in such capacity as hereinabove
provided. 
  
 (e) In connection with such appointment and
assumption, the Master Servicer may make such arrangements for the compensation of such successor out of payments on Mortgage Loans as it and such successor shall agree; provided, however, that no such compensation shall be in excess
of the Servicing Rights Fee; provided, that, upon the appointment of a successor servicer, the Subservicing Fee Rate will be adjusted thereafter to reflect the compensation paid to such Servicer, but not in excess of the Servicing Rights Fee
Rate. The Master Servicer and such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. Neither the Master Servicer nor any other successor servicer shall be deemed to be in
default hereunder by reason of any failure to make, or any delay in making, any remittance or payment 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 resigning or replaced Servicer to deliver or provide, or any delay in delivering or providing, any cash, information, documents or records to it. 
  
 (f) So long as the Servicer is terminated upon the occurrence of a Servicer Event of Default as described in Section 5.8,
upon written request from the Master Servicer, the Servicer shall, at its expense, prepare, execute and deliver to the successor entity designated by the Master Servicer any and all documents and other instruments, place in such successor’s
possession all Mortgage Files, and do or cause to be done all other acts or things necessary or appropriate to effect the purposes of such notice of termination, including but not limited to the transfer and endorsement or assignment of the Mortgage
Loans and related documents, at the Servicer’s sole expense. The Servicer shall cooperate with the Master Servicer 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.

  

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 To the extent that the costs and expenses of the Master Servicer related to any termination of a
Servicer, appointment of a successor servicer or the transfer and assumption of servicing by the Master Servicer with respect to this Agreement (including, without limitation, (i) all legal costs and expenses and all due diligence costs and expenses
associated with an evaluation of the potential termination of the Servicer as a result of an event of default by such Servicer and (ii) all costs and expenses associated with the complete transfer of servicing, including all servicing files and all
servicing data and the completion, correction or manipulation of such servicing data as may be required by the successor servicer to correct any errors or insufficiencies in the servicing data or otherwise to enable the successor servicer to service
the Mortgage Loans in accordance with this Agreement) are not fully and timely reimbursed by the terminated Servicer, the Master Servicer shall be entitled to reimbursement of such costs and expenses from the Collection Account. The Servicer being
terminated pursuant to Section 5.8 shall bear all reasonable out-of-pocket costs of a subservicing transfer, including but not limited to those of the Indenture Trustee, legal fees and expenses, accounting and financial consulting fees and expenses,
and costs of amending the Agreement, if necessary. 
  
 (g) If the
Master Servicer acts as Servicer, it will not assume liability for the representations and warranties of the Servicer, if any, that it replaces. 
  
 (h) Any successor to the Servicer shall give notice to the related Mortgagors of such change of servicer and shall, during the term of its service as
Servicer maintain in force the policy or policies that such Servicer is required to maintain pursuant to this Agreement. 
  
 (i) No successor servicer will be responsible for delays attributable to the Servicer’s failure to deliver information, defects in the information
supplied by the Servicer or other circumstances beyond the control of the successor servicer. The successor servicer will make arrangements with the Servicer for the prompt and safe transfer of, and the Servicer shall provide to the successor
servicer, all necessary servicing files and records, including (as deemed necessary by the successor servicer at such time): (i) microfiche loan documentation, (ii) servicing system tapes, (iii) mortgage loan payment history, (iv) collections
history and (v) the trial balances, as of the close of business on the day immediately preceding conversion to the successor servicer, reflecting all applicable mortgage loan information. The successor servicer shall have no responsibility and shall
not be in default hereunder nor incur any liability for any failure, error, malfunction or any delay in carrying out any of its duties under this Indenture if any such failure or delay results from the successor servicer acting in accordance with
information prepared or supplied by a Person other than the successor servicer or the failure of any such Person to prepare or provide such information. The successor servicer shall have no responsibility, shall not be in default and shall incur no
liability (i) for any act or failure to act by any third party, including the servicer, or for any inaccuracy or omission in a notice or communication received by the successor servicer from any third party or (ii) which is due to or results from
the invalidity, unenforceability of any Mortgage Loan with applicable law or the breach or the inaccuracy of any representation or warranty made with respect to any Mortgage Loan. 
  

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 SECTION 6.13 Assumption of Master Servicing by Indenture Trustee. 
  
 (a) In the event the Master Servicer shall for any reason no longer be the
Master Servicer (including by reason of any Master Servicer Event of Default under Section 6.14 of this Agreement), the Indenture Trustee shall thereupon assume all of the rights and obligations of such Master Servicer hereunder. The Indenture
Trustee, its designee or any successor master servicer appointed by the Indenture Trustee shall be deemed to have assumed all of the Master Servicer’s interest herein, except that the Master Servicer shall not thereby be relieved of any
liability or obligations of the Master Servicer accruing prior to its replacement as Master Servicer, and shall be liable to the Indenture Trustee, and hereby agrees to indemnify and hold harmless the Indenture Trustee from and against all costs,
damages, expenses and liabilities (including reasonable attorneys’ fees) incurred by the Indenture Trustee as a result of such liability or obligations of the Master Servicer and in connection with the Indenture Trustee’s assumption (but
not its performance, except to the extent that costs or liability of the Indenture Trustee are created or increased as a result of negligent or wrongful acts or omissions of the Master Servicer prior to its replacement as Master Servicer) of the
Master Servicer’s obligations, duties or responsibilities thereunder. 
  
 (b) The Master Servicer that has been terminated shall, upon request of the Indenture Trustee but at the expense of such Master Servicer, deliver to the assuming party all documents and records relating to the
Mortgage Loans and an accounting of amounts collected and held by it and otherwise use its commercially reasonable best efforts to effect the orderly and efficient transfer of master servicing to the assuming party. 
  
 SECTION 6.14 Master Servicer Events of Default; Indenture Trustee To Act;
Appointment of Successor. 
  
 (a) The occurrence of any one
or more of the following events shall constitute a “Master Servicer Event of Default”: 
  
 (i) any failure by the Master Servicer to remit to the Securities Administrator for payment to the Noteholders any funds required to be
remitted by the Master Servicer under the terms of this Agreement; or 
  
 (ii) any failure on the part of the Master Servicer duly to observe or perform in any material respect any other of the covenants or agreements on the part of the Master Servicer contained in this Agreement, which
continues unremedied for a period of 30 days after the earlier of (i) the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Master Servicer by the Depositor or the Indenture Trustee, or to
the Master Servicer, the Depositor and the Indenture Trustee by the Noteholders representing 66 2/3% of the total
Voting Interests and (ii) actual knowledge of such failure by a Servicing Officer of the Master Servicer; or 
  
 (iii) a decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case under any
present or future federal or state bankruptcy, insolvency or similar law or the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and 
  

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 liabilities or similar proceeding, or for the winding-up or liquidation of its affairs, shall have been
entered against the Master Servicer and such decree or order shall have remained in force undischarged or unstayed for a period of 90 days; or 
  
 (iv) the Master Servicer shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of
debt, marshalling of assets and liabilities or similar proceedings of or relating to it or of or relating to all or substantially all of its property; or 
  
 (v) the Master Servicer shall admit in writing its inability to pay its debts generally as they become due, file a petition to take
advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations; or 
  
 (vi) the Master Servicer shall be dissolved, or shall dispose of all or substantially all of its assets, or
consolidate with or merge into another entity or shall permit another entity to consolidate or merge into it, such that the resulting entity does not meet the criteria for a successor servicer as specified in Section 6.7; or 
  
 (vii) if a representation or warranty set forth in Section
3.6 shall prove to be incorrect as of the time made in any respect that materially and adversely affects the interests of the Noteholders and the Ownership Certificateholder, and the circumstance or condition in respect of which such representation
or warranty was incorrect shall not have been eliminated or cured within 30 days after the date on which written notice of such incorrect representation or warranty shall have been given to the Master Servicer by the Indenture Trustee or to the
Master Servicer, and the Indenture Trustee by the Noteholders representing 66 2/3% Voting Interests; or

  
 (viii) a sale or pledge of any of the
rights of the Master Servicer hereunder or an assignment of this Agreement by the Master Servicer or a delegation of the rights or duties of the Master Servicer hereunder shall have occurred in any manner not otherwise permitted hereunder and
without the prior written consent of the Indenture Trustee and Noteholders representing 66 2/3% Voting Interests;
or 
  
 (ix) any failure of the Master
Servicer to make any Advances required to be made hereunder within two days following notice of such default by the Indenture Trustee. 
  
 If a Master Servicer Event of Default described in subclauses (i) through (ix) of this Section 6.14 shall occur, then, in each and every case, subject to
applicable law, so long as any such Master Servicer Event of Default shall not have been remedied within any period of time prescribed by this Section 6.14, if any, the Indenture Trustee, by notice in writing to the Master Servicer may, and shall,
if so directed by Noteholders representing 66 2/3% of the Voting Interests, terminate all of the rights and
obligations of the Master Servicer hereunder and in and to the Mortgage Loans and the proceeds thereof. If a Master Servicer Event of Default described in clause (x) of this Section 6.14 shall occur, then, in each and every case, subject to
applicable law, so long as such Master Servicer Event of Default shall not have been remedied within the 
  

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 time period prescribed by clause (x) of this Section 6.14, the Indenture Trustee, by notice in writing to the Master
Servicer, shall promptly terminate all of the rights and obligations of the Master Servicer hereunder and in and to the Mortgage Loans and the proceeds thereof. 
  

On or after the receipt by the Master Servicer of such written notice, all authority and power of the Master Servicer, and only in its capacity as
Master Servicer under this Agreement, whether with respect to the Mortgage Loans or otherwise, shall pass to and be vested in the Indenture Trustee pursuant to and under the terms of this Agreement; and the Indenture Trustee is hereby authorized and
empowered to execute and deliver, on behalf of the defaulting Master Servicer as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to complete the transfer and endorsement or assignment of the Mortgage Loans and related documents or otherwise. The defaulting Master Servicer agrees to cooperate with the Indenture Trustee in
effecting the termination of the defaulting Master Servicer’s responsibilities and rights hereunder as Master Servicer including, without limitation, notifying the Servicer of the assignment of the master servicing function and providing the
Indenture Trustee or its designee all documents and records in electronic or other form reasonably requested by it to enable the Indenture Trustee or its designee to assume the defaulting Master Servicer’s functions hereunder and the transfer
to the Indenture Trustee for administration by it of all amounts which shall at the time be or should have been deposited by the defaulting Master Servicer in the Collection Account maintained by such defaulting Master Servicer and any other account
or fund maintained with respect to the Notes and the Ownership Certificate or thereafter received with respect to the Mortgage Loans. The Master Servicer being terminated shall bear all reasonable out-of-pocket costs of a master servicing transfer,
including but not limited to those of the Indenture Trustee, legal fees and expenses, accounting and financial consulting fees and expenses, and costs of amending the Agreement, if necessary. 
  
 The Indenture Trustee shall be entitled to be reimbursed from the Master
Servicer (or by the Trust Fund, if the Master Servicer is unable to fulfill its obligations hereunder) for all costs associated with the transfer of servicing from the predecessor Master Servicer, including, without limitation, any costs or expenses
associated with the complete transfer of all servicing data and the completion, correction or manipulation of such servicing data as may be required by the Indenture Trustee to correct any errors or insufficiencies in the servicing data or otherwise
to enable the Indenture Trustee to master service the Mortgage Loans properly and effectively. If the terminated Master Servicer does not pay such reimbursement within 30 days of its receipt of an invoice therefor, such reimbursement shall be an
expense of the Trust Fund and the Indenture Trustee shall be entitled to withdraw such reimbursement from amounts on deposit in the Collection Account pursuant to Section 7.5(xiii); provided that the terminated Master Servicer shall
reimburse the Trust Fund for any such expense incurred by the Trust Fund; and provided, further, that the Indenture Trustee shall decide whether and to what extent it is in the best interest of the Noteholders and the Ownership
Certificateholder to pursue any remedy against any party obligated to make such reimbursement. 
  
 Notwithstanding the termination of its activities as Master Servicer, each terminated Master Servicer shall continue to be entitled to reimbursement to the extent provided in Section 6.6 to the extent such
reimbursement relates to the period prior to such Master Servicer’s termination. 
  

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 If any Master Servicer Event of Default shall occur, of which a Responsible Officer of the Indenture
Trustee has actual knowledge, the Indenture Trustee shall promptly notify each Rating Agency of the nature and extent of such Master Servicer Event of Default. The Securities Administrator or the Master Servicer shall immediately give written notice
to the Indenture Trustee upon the Master Servicer’s failure to remit Advances on the date specified herein. 
  
 (b) On and after the time the Master Servicer receives a notice of termination from the Indenture Trustee pursuant to Section 6.14(a) or the Indenture
Trustee receives the resignation of the Master Servicer evidenced by an Opinion of Counsel pursuant to Section 6.8, the Indenture Trustee, unless another master servicer shall have been appointed, shall be the successor in all respects to the Master
Servicer in its capacity as such under this Agreement and the transactions set forth or provided for herein and shall have all the rights and powers and be subject to all the responsibilities, duties and liabilities relating thereto and arising
thereafter placed on the Master Servicer hereunder, including the obligation to make Advances; provided, however, that any failure to perform such duties or responsibilities caused by the Master Servicer’s failure to provide
information required by this Agreement shall not be considered a default by the Indenture Trustee hereunder. In addition, the Indenture Trustee shall have no responsibility for any act or omission of the Master Servicer prior to the issuance of any
notice of termination and shall have no liability relating to the representations and warranties of the Master Servicer set forth in Section 3.6. In the Indenture Trustee’s capacity as such successor, the Indenture Trustee shall have the same
limitations on liability herein granted to the Master Servicer. As compensation therefor, the Indenture Trustee shall be entitled to receive all compensation payable to the Master Servicer under this Agreement. 
  
 (c) Notwithstanding the above, the Indenture Trustee may, if it shall be
unwilling to continue to so act, or shall, if it is unable to so act, or does not satisfy the requirements set forth in the proviso to Section 6.7, appoint, or petition a court of competent jurisdiction to appoint, any established housing and home
finance institution servicer, master servicer, servicing or mortgage servicing institution having a net worth of not less than $25,000,000 and meeting such other standards for a successor master servicer as are set forth in this Agreement, as the
successor to such Master Servicer in the assumption of all of the responsibilities, duties or liabilities of a master servicer, like the Master Servicer. Such successor master servicer may be an Affiliate of the Indenture Trustee; provided,
however, that, unless such Affiliate meets the net worth requirements and other standards set forth herein for a successor master servicer, the Indenture Trustee, in its individual capacity shall agree, at the time of such designation, to be
and remain liable to the Trust and the Indenture Trustee for such Affiliate’s actions and omissions in performing its duties hereunder. In connection with such appointment and assumption, the Indenture Trustee may make such arrangements for the
compensation of such successor out of payments on the Mortgage Loans as it and such successor shall agree; provided, however, that no such compensation shall be in excess of that permitted to the Master Servicer hereunder. 

 
 The Indenture Trustee and such successor shall take such actions,
consistent with this Agreement, as shall be necessary to effectuate any such succession and may make other arrangements with respect to the servicing to be conducted hereunder which are not inconsistent herewith. The Master Servicer shall cooperate
with the Indenture Trustee and any successor master servicer in effecting the termination of the Master Servicer’s responsibilities and rights hereunder including, without limitation, notifying the Servicer of the assignment of the master

  

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 servicing functions and providing the Indenture Trustee and successor master servicer, as applicable, all documents and
records in electronic or other form reasonably requested by it to enable it to assume the Master Servicer’s functions hereunder and the transfer to the Indenture Trustee or such successor master servicer, as applicable, all amounts or
investment property which shall at the time be or should have been deposited by the Master Servicer in the Collection Account and any other account or fund maintained with respect to the Notes and the Ownership Certificate or thereafter be received
with respect to the Mortgage Loans. Neither the Indenture Trustee nor any other successor master servicer shall be deemed to be in default hereunder by reason of any failure to make, or any delay in making, any remittance or payment hereunder or any
portion thereof caused by (i) the failure of the Master Servicer to deliver, or any delay in delivering, cash, documents or records to it, (ii) the failure of the Master Servicer to cooperate as required by this Agreement, (iii) the failure of the
Master Servicer to deliver the Mortgage Loan data to the Indenture Trustee as required by this Agreement or (iv) restrictions imposed by any regulatory authority having jurisdiction over the Master Servicer. 
  
 SECTION 6.15 Additional Remedies of Indenture Trustee Upon Master Servicer
Event of Default. 
  
 During the continuance of any Master
Servicer Event of Default, so long as such Master Servicer Event of Default shall not have been remedied, the Indenture Trustee, in addition to the rights specified in Section 6.14, shall have the right, in its own name and as trustee of an express
trust, to take all actions now or hereafter existing at law, in equity or by statute to enforce its rights and remedies and to protect the interests, and enforce the rights and remedies, of the Noteholders and the Ownership Certificateholder
(including the institution and prosecution of all judicial, administrative and other proceedings and the filings of proofs of claim and debt in connection therewith). Except as otherwise expressly provided in this Agreement, no remedy provided for
by this Agreement shall be exclusive of any other remedy, and each and every remedy shall be cumulative and in addition to any other remedy, and no delay or omission to exercise any right or remedy shall impair any such right or remedy or shall be
deemed to be a waiver of any Event of Default. 
  
 SECTION 6.16
Waiver of Defaults. 
  
 Noteholders representing 66 2/3% of the Voting Interests may, on behalf of all Noteholders, waive any default or Master Servicer Event of Default
by the Master Servicer in the performance of its obligations hereunder, except that a default in the making of any required deposit to the Collection Account that would result in a failure of the Indenture Trustee to make any required payment of
principal of or interest on the Notes may only be waived with the consent of 100% of the affected Noteholders. 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. 
  

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 SECTION 6.17 Notification to Noteholders and to Ownership Certificateholder. 
  
 Upon termination of the Master Servicer or appointment of a successor to the
Master Servicer, in each case as provided herein, the Indenture Trustee shall promptly mail notice thereof by first class mail to the Noteholders and the Ownership Certificateholder at their respective addresses appearing on the applicable register.
The Indenture Trustee shall also, within 45 days after the occurrence of any Master Servicer Event of Default known to the Indenture Trustee, give written notice thereof to the Noteholders and the Ownership Certificateholder, unless such Master
Servicer Event of Default shall have been cured or waived prior to the issuance of such notice and within such 45-day period. 
  
 SECTION 6.18 Directions by Noteholders and Duties of Indenture Trustee During Event of Default. 
  
 During the continuance of any Master Servicer Event of Default, Noteholders
representing 66 2/3% of the Voting Interests may direct the time, method and place of conducting any proceeding
for any remedy available to the Indenture Trustee, or exercising any trust or power conferred upon the Indenture Trustee, under this Agreement; provided, however, that the Indenture Trustee shall be under no obligation to pursue any
such remedy, or to exercise any of the trusts or powers vested in it by this Agreement (including, without limitation, (a) the conducting or defending of any administrative action or litigation hereunder or in relation hereto and (b) the terminating
of the Master Servicer or any successor master servicer from its rights and duties as master servicer hereunder) at the request, order or direction of any of the Noteholders, unless such Noteholders shall have offered to the Indenture Trustee
reasonable security or indemnity against the cost, expenses and liabilities which may be incurred therein or thereby; and, provided further, that the Indenture Trustee shall have the right to decline to follow any such direction if the
Indenture Trustee, in accordance with an Opinion of Counsel, determines that the action or proceeding so directed may not lawfully be taken or if the Indenture Trustee in good faith determines that the action or proceeding so directed would involve
it in personal liability for which it is not indemnified to its satisfaction or be unjustly prejudicial to the non-assenting Noteholders. 
  
 SECTION 6.19 Action Upon Certain Failures of the Master Servicer and Upon Event of Default. 
  
 In the event that a Responsible Officer of the Indenture Trustee or the
Securities Administrator shall have actual knowledge of any action or inaction of the Master Servicer that would become a Master Servicer Event of Default upon the Master Servicer’s failure to remedy the same after notice, the Indenture Trustee
or Securities Administrator, as applicable, shall give notice thereof to the Master Servicer. 
  

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 ARTICLE VII 
  
 DEPOSITS AND PAYMENTS TO NOTEHOLDERS; REPORTING 
  
 SECTION 7.1 Servicer Remittances. 
  
 On each Servicer Remittance Date, the Servicer, shall remit to the Master Servicer the sum of the following (the
“Servicer Remittance Amount”): 
  
 (a) all
amounts deposited in the Custodial Account as of the close of business on the Determination Date (net of charges against or withdrawals from the Custodial Account pursuant to Section 4.6); plus 
  
 (b) all amounts, if any, which the Servicer is obligated to advance pursuant
to Section 7.3; minus 
  
 (c) any amounts attributable to
Principal Prepayments received after the applicable Prepayment Period which amounts shall be remitted on the following Servicer Remittance Date, together with any additional interest required to be deposited in the Custodial Account in connection
with such Principal Prepayment in accordance with Section 4.4; and minus 
  
 (d) any amounts attributable to Scheduled Monthly Payments collected but due on a Due Date or Dates subsequent to the first day of the month in which such Servicer Remittance Date occurs, which amounts shall be
remitted on the Servicer Remittance Date next succeeding the Due Period for such amounts. 
  
 On each Servicer Remittance Date, no later than 1:00 p.m. New York City time, the Servicer shall remit the Servicer Remittance Amount by wire transfer of immediately available funds to the Master Servicer. All
remittances required to be made to the Master Servicer shall be made to the following wire account or to such other account as may be specified by the Master Servicer from time to time: 
  

			
	[ - ]	  	 
	ABA#:	  	[ - ]
	Account Name:	  	[ - ]
	Account Number:	  	[ - ]
	For further credit to:	  	[First NLC Securitization Trust 200  -  ]

  
 With respect to any
remittance received by the Master Servicer after the Servicer Remittance Date on which such remittance was due, the Servicer shall pay to the Master Servicer interest on any such late remittance at an annual rate equal to the Prime Rate, adjusted as
of the date of each change, plus three percentage points, but in no event greater than the maximum amount permitted by applicable law. The payment by the Servicer of any such interest shall not be deemed an extension of time for payment or a waiver
of any Servicer Event of Default by the Servicer. 
  

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 SECTION 7.2 Statements to Master Servicer and Securities Administrator. 
  
 (a) Not later than the [ - ] calendar day of each month, the Servicer shall
furnish to the Depositor, the Master Servicer and the Securities Administrator (i) a monthly remittance advice with the reporting criteria in the format set forth in Exhibit E and a monthly defaulted loan report with the reporting criteria
set forth in Exhibit F (or in such other format mutually agreed to among the Servicer, the Master Servicer and the Securities Administrator in respect of the prior Due Period and Prepayment Period and (ii) all such information required
pursuant to clause (b) above on a magnetic tape or other similar media reasonably acceptable to the Master Servicer and the Securities Administrator. Such monthly remittance advice shall also be accompanied by a supplemental report provided to the
Master Servicer and the Securities Administrator which includes on an aggregate basis for the previous calendar month (i) the amount of any insurance claims filed, (ii) the amount of any claim payments made and (iii) the amount of claims denied or
curtailed. 
  
 (b) In addition, not more than 45 days after the
end of each calendar year, commencing December 31, 200_, the Servicer shall provide (as such information becomes reasonably available to the Servicer) to the Master Servicer and the Securities Administrator such information concerning the Mortgage
Loans and annual remittances to the Master Servicer therefrom as is necessary for the Securities Administrator to prepare the Trust’s federal income tax return and for any investor in the Notes or the Ownership Certificate to prepare any
required tax return. Such obligation of the Servicer shall be deemed to have been satisfied to the extent that substantially comparable information shall be provided by the Servicer to the Master Servicer and the Securities Administrator pursuant to
any requirements of the Code as from time to time are in force. The Servicer shall also provide to the Securities Administrator such information as may be requested by it and required for the completion of any tax reporting responsibility of the
Securities Administrator within such reasonable time frame as shall enable the Securities Administrator to timely file each tax report or return. 
  
 (c) If a party does not act as both the Master Servicer and the Securities Administrator, not later than the Business Day prior to each Payment Date, the
Master Servicer shall forward to the Securities Administrator a statement setting forth the status of the Collection Account maintained by the Master Servicer as of the close of business on the Business Day prior to the related Payment Date,
indicating that all remittances or payments required by this Agreement to be made by the Master Servicer have been made (or if any required remittance or payment has not been made by the Master Servicer, specifying the nature and status thereof) and
showing, for the period covered by such statement, the aggregate of deposits into and withdrawals from the Collection Account maintained by the Master Servicer. 
  

SECTION 7.3 Advances by Master Servicer and Servicer. 
  

(a) No later than the close of business on the Determination Date, the Servicer shall deposit in the Custodial Account from its own funds or from
amounts held for future remittance an amount equal to all Scheduled Monthly Payments (with interest adjusted to the Mortgage Loan Remittance Rate) which were due on the Mortgage Loans during the applicable Due Period and which were delinquent at the
close of business on the related Determination Date or which were deferred. Any amounts held for future remittance and so used shall be replaced by the 
  

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 Servicer by deposit in the Custodial Account on or before any future Servicer Remittance Date if funds in the Custodial
Account on such Servicer Remittance Date shall be less than payments to the Master Servicer required to be made on such Servicer Remittance Date. The Servicer’s obligation to make such Monthly Advances as to any Mortgage Loan will continue
through the later of (i) the last Scheduled Monthly Payment due prior to the payment in full of the Mortgage Loan, or (ii) the last Servicer Remittance Date prior to the Servicer Remittance Date for the remittance of all Liquidation Proceeds and
other payments or recoveries (including Insurance Proceeds and Condemnation Proceeds) with respect to the Mortgage Loan; provided, however, that any such obligation under this Section 7.3 shall cease if the Servicer determines, in its
sole reasonable opinion, that Monthly Advances with respect to such Mortgage Loan are Non-recoverable Advances. In the event that the Servicer determines that any such Monthly Advances are Non-recoverable Advances, the Servicer shall provide the
Master Servicer with a certificate signed by two officers of the Servicer evidencing such determination and setting forth the basis for such determination. 
  
 (b) If the Servicer fails to remit a Monthly Advance, the Master Servicer shall itself make such Advance. If the Master Servicer determines that a Monthly
Advance is required, it shall, on the Business Day immediately prior to the related Payment Date deposit in the Collection Account immediately available funds in an amount equal to such Monthly Advance. The Master Servicer shall be entitled to be
reimbursed from the Collection Account in accordance with Section 7.5 for all Monthly Advances made by it. Notwithstanding anything to the contrary herein, in the event the Master Servicer determines in its reasonable judgment that a Monthly Advance
is a Non-recoverable Advance, the Master Servicer shall be under no obligation to make such Monthly Advance. In the event that the Master Servicer determines that any such Monthly Advances are Non-recoverable Advances, the Master Servicer shall
provide the Indenture Trustee with a certificate signed by two officers of the Master Servicer evidencing such determination and setting forth the basis for such determination. 
  
 (c) In the event that the Servicer fails to make a required Servicing Advance from time-to-time pursuant to Section 4.9, the
Master Servicer shall itself make such Servicing Advance. Notwithstanding anything to the contrary herein, in the event the Master Servicer determines in its reasonable judgment that a Servicing Advance is a Non-recoverable Advance, the Master
Servicer shall be under no obligation to make such Servicing Advance. In the event that the Master Servicer determines that any such Servicing Advances are Non-recoverable Advances, the Master Servicer shall provide the Indenture Trustee with a
certificate signed by two officers of the Master Servicer evidencing such determination and setting forth the basis for such determination. 
  
 SECTION 7.4 Collection Account. 
  
 (a) The Master Servicer shall segregate and hold all funds collected and received pursuant to this Agreement separate and apart from any of its own funds
and general assets and shall establish and maintain the Collection Account, in the form of time deposit or demand accounts, titled “Collection Account of
                            , as Master Servicer for the benefit of First NLC Securitization Trust
200  -  .” The Collection Account shall be established as an Eligible Account. Funds deposited in the Collection Account may be drawn on by the Master Servicer in accordance with Sections 7.4 and 7.5.

  

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 (b) If an existing Collection Account ceases to be an Eligible Account, the Master Servicer shall
establish a new Collection Account that is an Eligible Account within 10 days and transfer all funds and investment property on deposit in such existing Collection Account into such new Collection Account. 
  
 (c) The Master Servicer shall give to the Securities Administrator and the
Indenture Trustee prior written notice of the name and address of the depository institution at which the Collection Account is maintained and the account number of such Collection Account. The Master Servicer shall take such actions as are
necessary to cause the depository institution holding the Collection Account to hold such account in the name of the Indenture Trustee. 
  
 (d) The Master Servicer shall deposit or cause to be deposited into the Collection Account, no later than the Business Day following the Closing Date, any
amounts received with respect to the Mortgage Loans representing Scheduled Monthly Payments on the Mortgage Loans due after the Cut-off Date and unscheduled payments received on or after the Cut-off Date and on or before the Closing Date.
Thereafter, the Master Servicer shall deposit or cause to be deposited in the Collection Account on the earlier of the applicable Payment Date and one Business Day following receipt thereof, the following amounts received or payments made by it
(other than in respect of principal of and interest on the Mortgage Loans due on or before the Cut-off Date): 
  
 (i) all remittances from the Custodial Account by the Servicer to the Master Servicer; 
  
 (ii) all Monthly Advances made by the Master Servicer
pursuant to Section 7.3 and any payment in respect of Prepayment Interest Shortfalls paid by it; and 
  
 (iii) the Repurchase Price of any Mortgage Loan repurchased by the Originator or purchased by the Servicer pursuant to Section 5.2 during
the related Prepayment Period or any other Person and any Substitution Adjustment Amount related to any Qualified Substitute Mortgage Loan. 
  
 (e) Funds in the Collection Account may be invested by the Master Servicer only in Eligible Investments selected by and at the written direction of the
Master Servicer, which shall mature not later than one Business Day prior to the next Payment Date (or on the Payment Date with respect to any Eligible Investment of the Master Servicer or any other fund managed or advised by it or any Affiliate)
and any such Eligible Investment shall not be sold or disposed of prior to its maturity. All such Eligible Investments shall be made in the name of the Master Servicer in trust for the benefit of the Trust. All income and gain realized from any
Eligible Investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time, subject to Section 7.5 and shall not be part of the Trust Fund. The amount of any losses incurred in respect of
any such investments shall be deposited in such Collection Account by the Master Servicer out of its own funds, without any right of reimbursement therefor, immediately as realized. The foregoing requirements for deposit in the Collection Account
are exclusive, it being understood and agreed that, without limiting the generality of the foregoing, payments of interest on funds in the Collection Account and payments in the nature of late payment charges, assumption fees and other incidental
fees and 
  

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 charges relating to the Mortgage Loans need not be deposited by the Master Servicer in the Collection Account and may be
retained by the Master Servicer or the Servicer, as applicable, as additional servicing compensation. 
  
 SECTION 7.5 Application of Funds in the Collection Account. 
  
 The Master Servicer may, from time to time, make, or cause to be made, withdrawals from the Collection Account for the
following purposes: 
  
 (i) to reimburse the
Master Servicer or the Servicer, as applicable, for Monthly Advances or Servicing Advances made by any such party, such right to reimbursement pursuant to this subclause (i) being limited to amounts received on or in respect of a particular Mortgage
Loan (including, for this purpose, Liquidation Proceeds and amounts representing Insurance Proceeds with respect to the property subject to the related Mortgage) which represent late recoveries (net of the applicable Subservicing Fee) of payments of
principal or interest respecting which any such Advance was made, it being understood, in the case of any such reimbursement, that the Master Servicer’s or Servicer’s right thereto shall be prior to the rights of the Noteholders and the
Ownership Certificateholder; 
  
 (ii) to
reimburse the Master Servicer or the Servicer following a final liquidation of a Mortgage Loan for any previously unreimbursed Monthly Advances made by any such party (A) that such party determines in good faith will not be recoverable from amounts
representing late recoveries of payments of principal or interest respecting the particular Mortgage Loan as to which such Advance was made or from Liquidation Proceeds or Insurance Proceeds with respect to such Mortgage Loan and/or (B) to the
extent that such unreimbursed Monthly Advances exceed the related Liquidation Proceeds or Insurance Proceeds, it being understood, in the case of each such reimbursement, that the Master Servicer’s or Servicer’s right thereto shall be
prior to the rights of the Noteholders and the Ownership Certificateholder; 
  
 (iii) to reimburse the Master Servicer or the Servicer from Liquidation Proceeds for Liquidation Expenses and for amounts expended by it in good faith in connection with the restoration of damaged property and, to the
extent that Liquidation Proceeds after such reimbursement exceed the unpaid principal balance of the related Mortgage Loan, together with accrued and unpaid interest thereon at the applicable Mortgage Rate less the applicable Subservicing Fee Rate
for such Mortgage Loan to the Due Date next succeeding the date of its receipt of such Liquidation Proceeds, to pay to itself or the Servicer out of such excess the amount of any unpaid assumption fees, late payment charges or other Mortgagor
charges on the related Mortgage Loan and to retain any excess remaining thereafter as additional servicing compensation, it being understood, in the case of any such reimbursement or payment, that such Master Servicer’s or Servicer’s right
thereto shall be prior to the rights of the Noteholders and the Ownership Certificateholder; 
  
 (iv) to pay to the Originator or Servicer, as applicable, with respect to each Mortgage Loan or REO Property acquired in respect thereof
that has been purchased 
  

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 pursuant to this Agreement, all amounts received thereon and not remitted on the date on which the
related purchase was effected, and to pay to the applicable party any Monthly Advances and Servicing Advances to the extent specified in the definition of Repurchase Price; 
  
 (v) to the extent not paid by the Servicer, to pay any insurance premium with respect to a Mortgage Loan;

  
 (vi) to pay to the Master Servicer income
earned on the investment of funds on deposit in the Collection Account; 
  
 (vii) on or before the Business Day immediately prior to each Payment Date, (A) to pay to itself the Master Servicing Fee and (B) to remit funds therein to the Securities Administrator for deposit into the Payment
Account of amounts to make payment to the Noteholders and the Ownership Certificateholder in the amounts and in the manner provided for in Section 7.7 for the related Payment Date (to the extent collected by the Master Servicer); 
  
 (viii) to make payment of expenses and indemnities to itself
and the Servicer, pursuant to any provision of this Agreement or the Indenture; 
  
 (ix) to withdraw funds deposited in error in the Collection Account; 
  
 (x) to remit to the Securities Administrator, the Master Servicing Fee to be further remitted by the
Securities Administrator to the Custodian, the Indenture Trustee, the Securities Administrator and the Master Servicer in payment of their respective fees, set forth in separate fee letters with the Master Servicer and such parties; 
  
 (xi) on each Payment Date, to make payment (A) to the Owner
Trustee, the Owner Trustee Fee, if applicable and (B) to the Servicing Rights Owner, the Servicing Rights Fee; 
  
 (xii) to clear and terminate the Collection Account pursuant to Article IX; and 
  
 (xiii) to reimburse a successor master servicer (solely in
its capacity as successor master servicer), for any fee or advance occasioned by a termination of the Master Servicer, and the assumption of such duties by the Indenture Trustee or a successor master servicer appointed by the Indenture Trustee
pursuant to Section 6.14, in each case to the extent not reimbursed by the terminated Master Servicer, it being understood, in the case of any such reimbursement or payment, that the right of the Master Servicer or the Indenture Trustee thereto
shall be prior to the rights of the Noteholders and the Ownership Certificateholder. 
  
 In connection with withdrawals pursuant to subclauses (i), (ii), (iii) and (iv) above, the Master Servicer’s or the Servicer’s or such other Person’s entitlement thereto is limited to collections or
other recoveries on the related Mortgage Loan. The Master Servicer shall therefore keep and maintain a separate accounting for each Mortgage Loan for the purpose of justifying any withdrawal from the Collection Account it maintains pursuant to such
subclauses. 
  

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 SECTION 7.6 The Payment Account. 
  
 (a) The Securities Administrator shall segregate and hold all funds collected and received pursuant to this Agreement
separate and apart from any of its own funds and general assets, and shall establish and maintain a Payment Account, in the form of time deposit or demand accounts, titled “Payment Account of
                    , as Securities Administrator, for the benefit of First NLC Securitization Trust
200  -  .” The Payment Account shall be established as an Eligible Account. Any funds deposited in the Payment Account shall at all times be insured to the fullest extent allowed by applicable law. 

 
 (b) If an existing Payment Account ceases to be an Eligible Account, the
Securities Administrator shall establish a new Payment Account that is an Eligible Account within ten days and transfer all funds and investment property on deposit in such existing Payment Account into such new Payment Account. 
  
 (c) The Securities Administrator shall give to the Master Servicer and the
Indenture Trustee prior written notice of the name and address of the depository institution at which the Payment Account is maintained and the account number of such Payment Account. The Securities Administrator shall take such actions as are
necessary to cause the depository institution holding the Payment Account to hold such account in the name of the Indenture Trustee. 
  
 (d) The Securities Administrator shall deposit or cause to be deposited into the Payment Account all amounts remitted to it by the Master Servicer
pursuant to Section 7.6 and the Cap Payments, if any, on or before the Business Day prior to the Payment Date. On each Payment Date, the entire amount on deposit in the Payment Account (subject to permitted withdrawals) shall be applied to make the
required payment of principal and/or interest on each class of Notes and to make any required distribution to the Ownership Certificate. 
  
 (e) The Securities Administrator shall make withdrawals from the Payment Account only for the purposes set forth in Section 7.7 and for the following
purposes: 
  
 (i) to withdraw amounts deposited
in the Payment Account in error; 
  
 (ii) to make
payments pursuant to this Article VII and the terms of the Indenture and the Owner Trust Agreement; and 
  
 (iii) to clear and terminate the Payment Account pursuant to Article IX. 
  
 (f) Five Business Days prior to each Payment Date, the Master Servicer shall make available a Master Servicer Report (in a
mutually agreeable format) to the Securities Administrator and the Depositor. The Securities Administrator is entitled to conclusively rely on such report to make all necessary distributions from the Payment Account under the Section 7.6.

  

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 SECTION 7.7 Payments from the Payment Account. 
  
 (a) On each Payment Date, the Securities Administrator (or the Paying Agent
on behalf of the Securities Administrator) shall withdraw amounts on deposit in the Payment Account and shall apply such amount as specified in this Section 7.7. 
  
 (b) On each Payment Date, other than a date on which an Indenture Event of Default has occurred and is continuing, the
Securities Administrator will pay the following amounts, in the following order of priority, out of the Interest Proceeds and the Interest Support Amount, if any, to the extent available, based solely on the information from the Master Servicer
Report: 
  
 (i) to the Securities Administrator,
the Custodian, the Indenture Trustee and the Owner Trustee, in that order, previously unreimbursed extraordinary costs, liabilities and expenses as provided herein; provided that the cumulative amount paid under this clause (i) may not, in the
aggregate, exceed $100,000 in any twelve consecutive month period; 
  
 (ii) to the holders of the Class A Notes pro rata by Percentage Interest, the Current Interest for such Class of Notes for such Payment Date; 
  
 (iii) to the holders of the Class M Notes pro rata by Percentage Interest, the Current Interest for
such Class of Notes for such Payment Date; 
  
 (iv) to the Securities Administrator, the Custodian, the Indenture Trustee and the Owner Trustee, in that order, previously unreimbursed extraordinary costs, liabilities and expenses as provided herein, to the extent not paid under clause
(i) above, whether as a result of the amount limitation imposed thereunder or otherwise; and 
  
 (v) for application as part of Monthly Excess Cash Flow for such Payment Date pursuant to Section 7.7(d), any such Interest Proceeds
remaining after application of clauses (i) through (iv) above. 
  
 (c) On each Payment Date, other than a date on which an Indenture Event of Default has occurred and is continuing, the Securities Administrator (or the Paying Agent on behalf of the Securities Administrator) shall pay the following amounts,
in the following order of priority, out of the Principal Payment Amount, if any, to the extent available: 
  
 (i) to the holders of each Class of Notes, the respective Class Principal Payment Amount for such Class of Notes until the Class Principal
Amount of such Class of Notes has been reduced to zero, and such Class Principal Payment Amount to be paid among the holders of each such Class of Notes pro rata by Percentage Interest; and 
  
 (ii) after the Class Principal Amount of all Classes of
Notes has been reduced to zero, for application as part of Monthly Excess Cashflow pursuant to Section 7.7(d) for such Payment Date, any such Principal Payment Amount remaining after application of clause (i) above. 
  

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 (d) On each Payment Date, other than a date on which an Indenture Event of Default has occurred and is
continuing, the Securities Administrator (or the Paying Agent on behalf of the Securities Administrator) shall apply the Monthly Excess Cashflow in the following order of priority, to the extent available: 
  
 (i) If any Class Total Impairment Amount exists with respect
to the Class A Notes, to pay principal to the Class A Notes in reduction of their Class Principal Amount until such Class Total Impairment Amount is reduced to zero; 
  
 (ii) If any Class Total Impairment Amount exists for any Class M Notes, by order of seniority, (A) to pay
principal with respect to such Class of Notes in reduction of its Class Principal Amount until its Class Current Ratio equals the Target Ratio, and (B) thereafter, to pay principal with respect to such Class of Notes and all Classes of Notes senior
to such Class of Notes in reduction of their Class Principal Amounts pro rata in accordance with their Overall Target Ratios, each until such Class Total Impairment Amount is reduced to zero; 
  
 (iii) To pay principal to each Class of Notes pro
rata based upon their respective Target Fractions until the Target Overcollateralization Amount is achieved; 
  
 (iv) To pay any Basis Risk Shortfall on the Notes sequentially in order of seniority; 
  
 (v) To pay any amount of Deferred Interest sequentially in
order of seniority; and 
  
 (vi) Any remaining
Monthly Excess Cashflow shall be paid to the Ownership Certificate. 
  
 (e) On the Optional Termination Date, the Securities Administrator (or the Paying Agent on behalf of the Securities Administrator) shall pay to each Class of Notes the related Optional Termination Price therefor. 
  
 (f) If the Indenture Trustee collects any money or property in relation to an
Indenture Event of Default pursuant to Article V of the Indenture, the Indenture Trustee shall pay out the money or property in the following order: 
  
 (i) first: to the Indenture Trustee, for any costs or expenses, including any reasonable out-of-pocket attorneys’ fees,
incurred by it in connection with the enforcement of the remedies provided for in this Section 7.5(vi) and for any other unpaid amounts due to the Indenture Trustee hereunder, to the Securities Administrator for any amounts due and owing to it, to
the Master Servicer for any amounts due and owing to it under the Transfer and Servicing Agreement, and to the Owner Trustee, to the extent of any fees and expenses due and owing to it (including pursuant to Section 7.3 of the Owner Trust Agreement)
and for any other unpaid amounts due to the Owner Trustee hereunder; 
  

 95 

 (ii) second: to the Master Servicer and Servicer for any fees then due and unpaid
and any unreimbursed Advances; 
  
 (iii)
third: to the Notes, all accrued and unpaid interest thereon and amounts in respect of principal according to the priorities set forth in Section 7.7 of this Agreement; provided, however, that accrued and unpaid interest shall be paid to
Noteholders of each Class of Notes before any payments in respect of principal; and 
  
 (iv) fourth: to the Owner Trustee or its Paying Agent for any amounts to be distributed to the Ownership Certificateholder.

  
 (g) On each Payment Date, the Securities Administrator (or the
Paying Agent on behalf of the Securities Administrator) shall apply any Cap Payment, first, to pay to Noteholders of each Class of Notes for which any Basis Risk Shortfall remains after application of the Monthly Excess Cashflow pursuant to
Section 7.7(d), in alphanumeric order in reduction of any Basis Risk Shortfalls, and, second, to the Ownership Certificateholders. 
  
 (h) On each Payment Date, the Securities Administrator (or the Paying Agent on behalf of the Securities Administrator) shall apply Prepayment Premiums, if
any, to the Ownership Certificateholders. 
  
 SECTION 7.8 The
Pre-Funding Account. 
  
 (a) The Securities Administrator has
heretofore established or caused to be established and shall hereafter maintain or cause to be maintained a separate account (the “Pre-Funding Account”), which is and shall continue to be an Eligible Account in the name of the
Securities Administrator and shall be designated “Pre-Funding Account, [ - ], as Securities Administrator, in trust for Holders of the First NLC Securitization Trust 200  -  , Asset-Backed Securities.” Any
investment earnings from Pre-Funding Account will be paid to the Seller on each Payment Date during the Pre-Funding Period; provided, however, that if the final Subsequent Sale Date occurs after the Payment Date in a month, on such Subsequent Sale
Date, the Securities Administrator shall (i) transfer the amount remaining on deposit in the Pre-Funding Account at the end of the Pre-Funding Period from the Pre-Funding Account to the Collection Account, (ii) transfer any investment earnings to
the Sellers as soon as practicable and (iii) close the Pre-Funding Account. The amount on deposit in the Pre-Funding Account shall be invested only in Eligible Investments. All investment earnings on funds on deposit in the Pre-Funding Account will
be treated as owned by, and will be taxable to, the Sellers. 
  
 (b) On the Closing Date, the Sellers will cause to be deposited $[ - ] in the Pre-Funding Account from the sale of the Notes. 
  
 (c) On each Subsequent Sale Date, (i) each of the Sellers shall instruct the Securities Administrator to withdraw from the Pre-Funding Account an amount
equal to 100% of the aggregate Scheduled Principal Balances of the Subsequent Mortgage Loans sold to the Trust on such Subsequent Sale Date and (ii) the Securities Administrator shall pay such amounts to or upon the order of the Sellers with respect
to such transfer. 
  

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 (d) If at the end of the Pre-Funding Period amounts still remain in the Pre-Funding Account, the
Securities Administrator shall withdraw such amounts from the Pre-Funding Account on the immediately following Payment Date and deposit such amounts in the Collection Account. 
  
 (e) Unless sooner closed as provided above, the Pre-Funding Account shall be closed at the close of business on the Payment
Date immediately following the end of the Pre-Funding Period. 
  
 SECTION 7.9 The Capitalized Interest Account. 
  
 (a) The Indenture Trustee shall establish and maintain in its name, an account entitled “Capitalized Interest Account of [ - ], as Indenture Trustee, for the benefit of the Holders of First NLC Securitization Trust 200_-_ Asset-Backed
Securities, Series 200_-_.” On the Closing Date, the Depositor shall deposit in the Capitalized Interest Account the Original Capitalized Interest Amount. 
  

(b) The Capitalized Interest Account shall be an Eligible Account. If an existing Capitalized Interest Account ceases to be an Eligible Account, the
Indenture Trustee shall establish a new Capitalized Interest Account that is an Eligible Account within 30 days and transfer all funds on deposit in such existing Capitalized Interest Account into such new Capitalized Interest Account. 

 
 (c) On the Business Day preceding any Payment Date occurring during the
Pre-Funding Period, the Indenture Trustee shall withdraw from the Capitalized Interest Account an amount equal to the Capitalized Interest Requirement for deposit into the Distribution Account for distribution to Noteholders in accordance with
Section 7.7 on such Payment Date. 
  
 (d) Amounts on deposit in
the Capitalized Interest Account may be invested by the Indenture Trustee only in Eligible Investments at the written direction of the Depositor. All investment income and other gain on such investments shall be for the benefit of the Depositor and
shall be subject to withdrawal on order of the Depositor from time to time. The amount of any losses incurred in respect of any such investments shall be paid by the Depositor by a deposit into the Capitalized Interest Account of its own funds,
without right of reimbursement therefor, immediately as realized. In the event the Depositor does not provide written direction to the Indenture Trustee pursuant to this Section, all funds on deposit in the Capitalized Interest Account shall be
invested in money market funds as described in the definition of Eligible Investments. 
  
 On the last day of the Pre-Funding Period, the Indenture Trustee shall transfer any remaining amounts on deposit in the Capitalized Interest Account to the Distribution Account, which will be held uninvested, and will
be included in the Available Distribution Amount for distribution to the Noteholders as an additional prepayment of principal on the immediately following Payment Date in accordance with the priorities set forth in Section 7.7 and terminate such
Account. 
  

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 SECTION 7.10 Reports to the Indenture Trustee, the Noteholders and the Ownership
Certificateholder. 
  
 (a) On each Payment Date, the
Securities Administrator shall make available to the Indenture Trustee, each Noteholder, the Ownership Certificateholder and the Cap Provider, a report containing information with respect to such Payment Date, including the following items (on the
basis of a Master Servicer Report): 
  
 (i) the
Current Interest of each Class of Notes and the calculation thereof; 
  
 (ii) the Note Interest Rate applicable to such Payment Date with respect to each Class of Notes; 
  
 (iii) the Interest Proceeds; 
  
 (iv) the Principal Proceeds, including Liquidation Proceeds and Insurance Proceeds, stating separately the amount attributable to
scheduled principal payments and unscheduled payments in the nature of principal; 
  
 (v) the Principal Payment Amount, separately stating the Overcollateralization Release Amount and the Interest Support Amount; 

 
 (vi) the Class Principal Amount of each Class of Notes,
to the extent applicable, as of such Payment Date after giving effect to payments allocated to principal reported under subclause (i) above; 
  
 (vii) the Class Principal Payment Amount for each Class of Notes; 
  
 (viii) the amount, if any, of any payment to the Ownership Certificateholder; 
  
 (ix) the amount of any Realized Losses incurred with respect
to the Mortgage Loans (x) in the applicable Prepayment Period and (y) in the aggregate since the Cut-off Date; 
  
 (x) for each Class of Notes the Class Impairment Amount and Class Incremental Impairment Amount prior to giving effect to payments made on
that Payment Date and the Class Impairment Amount after giving effect to a payments made on the Payment Date; 
  
 (xi) the amount of the Servicing Rights Fees, Master Servicing Fees and Subservicing Fees paid during the Due Period to which such Payment
Date relates; 
  
 (xii) the total number of
Mortgage Loans, the aggregate Scheduled Principal Balance of all the Mortgage Loans as of the close of business on the last day of the related Due Period, after giving effect to payments allocated to principal reported under subclause (i) above;

  

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 (xiii) the number and aggregate Scheduled Principal Balance of Mortgage Loans, as
reported to the Master Servicer by the Servicer: 
  
 (A) remaining outstanding, 
  
 (B)
delinquent 30 to 59 days on a contractual basis, 
  
 (C) delinquent 60 to 89 days on a contractual basis, 
  
 (D) delinquent 90 or more days on a contractual basis, 
  
 (E) as to which foreclosure proceedings have been commenced as of the close of business on the last Business Day of the calendar month
immediately preceding the month in which such Payment Date occurs, 
  
 (F) in bankruptcy, and 
  
 (G) that are REO Properties; 
  
 (xiv)
the aggregate Scheduled Principal Balance of any Mortgage Loans with respect to which the related Mortgaged Property became an REO Property as of the close of business on the last Business Day of the calendar month immediately preceding the month in
which such Payment Date occurs; 
  
 (xv) with
respect to substitution of Mortgage Loans in the preceding calendar month, the Scheduled Principal Balance of each Deleted Mortgage Loan and of each Qualified Substitute Mortgage Loan; 
  
 (xvi) the aggregate amount of any Monthly Advances made by or on behalf of the Servicer (or the Master
Servicer) solely to the extent reported to the Securities Administrator by the Master Servicer; 
  
 (xvii) the amount of Monthly Excess Cashflow, any Overcollateralization Build Amount and the Overcollateralization Amount after giving
effect to the payments made on such Payment Date; 
  
 (xviii) LIBOR with respect to such Payment Date and the following Interest Accrual Period; and 
  
 (xix) the amount of funds remaining in the Capitalized Interest Account [(after giving effect to distributions on a Payment Date)].

  
 The Securities Administrator will make such report and
additional loan level information (and, at its option, any additional files containing the same information in an alternative format) available each month to the Rating Agencies, the Indenture Trustee, the Noteholders, the Ownership
Certificateholder and the Cap Provider via the Securities Administrator’s website. The Securities Administrator’s website can be accessed at
                    . Assistance in using the website can be obtained by calling the Securities Administrator’s customer service

  

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 desk at
                    . Such parties that are unable to use the website are entitled to have a paper copy mailed to them via first class mail by
notifying the Securities Administrator at the address set forth herein, 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. 
  
 The foregoing information and reports shall be prepared and determined by the Securities Administrator based solely on
Mortgage Loan data provided to the Master Servicer and the Securities Administrator by the Servicer pursuant to Section 7.2. 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 Master Servicer and the Securities Administrator by the Servicer, and neither the Securities Administrator nor the Master
Servicer shall be obligated to verify, recompute, reconcile or recalculate any such information or data. The Securities Administrator and the Master Servicer shall be entitled to conclusively rely on the Mortgage Loan data provided by the Servicer
and shall have no liability for any errors in such Mortgage Loan data. 
  
 (b) Upon the reasonable advance written request of any Noteholder that is a savings and loan, bank or insurance company, which request, if received by the Indenture Trustee shall be forwarded promptly to the Securities Administrator, the
Securities Administrator shall provide, or cause to be provided (or, to the extent that such information or documentation is not required to be provided by the Servicer, shall use reasonable efforts to obtain such information and documentation from
the Servicer, and provide), to such Noteholder such reports and access to information and documentation regarding the Mortgage Loans as such Noteholder may reasonably deem necessary to comply with applicable regulations of the Office of Thrift
Supervision or its successor or other regulatory authorities with respect to an investment in the Notes; provided, however, that the Securities Administrator shall be entitled to be reimbursed by such Noteholder for actual expenses
incurred in providing such reports and access. 
  
 (c) Within 90
days, or such shorter period as may be required by statute or regulation, after the end of each calendar year, the Securities Administrator shall have prepared and shall make available to each Person who at any time during the calendar year was a
Noteholder of record, and make available to such Noteholders, to the extent required by and in accordance with applicable regulations, a report summarizing the items provided to the Noteholders pursuant to Section 7.10(a) above on an annual basis as
may be required to enable such Noteholders to prepare their federal income tax returns; provided, however, that this Section 7.10(c) shall not be applicable where relevant reports or summaries are required elsewhere in this Agreement.
Such information shall include the amount of original issue discount accrued on each Class of Notes and information regarding the expenses of the Trust. The Securities Administrator shall be deemed to have satisfied such requirement if it forwards
such information in any other format permitted by the Code. 
  
 (d) The Securities Administrator shall furnish any other information that is required by the Code and regulations thereunder to be made available to the Noteholders and the Ownership Certificateholder. The Master Servicer shall provide the
Securities Administrator with such information as is necessary for the Securities Administrator to prepare such reports (and the Securities Administrator may rely solely upon such information). 
  

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 SECTION 7.11 Preparation of Reports. 
  
 (a) The Depositor shall prepare or cause to be prepared the initial current
report on Form 8-K. Thereafter, within 15 days after each Payment Date, the Securities Administrator shall, in accordance with industry standards customary for securities similar to the Notes as required by the Exchange Act and the rules and
regulations of the Commission, file with the Commission via EDGAR, a Form 8-K with a copy of the statement to the Noteholders for such Payment Date as an exhibit thereto. 
  
 (b) Prior to January 30, 200  , the Securities Administrator shall, in accordance with industry standards
applicable to the Securities, file a Form 15 Suspension Notification with respect to the Trust, if applicable. Prior to March 31, 200  , the Securities Administrator shall prepare (and the Depositor will execute) a Form 10-K, in
substance conforming to industry standards applicable to the Securities, with respect to the Trust. The Form 10-K shall include the certification required pursuant to Rule 13a-14 under the Securities and Exchange Act of 1934, as amended (the
“Form 10-K Certification,”) which Form 10-K Certification shall be signed by the Depositor. The Indenture Trustee and the Securities Administrator shall have no liability for any delay in filing the Form 10-K due to the failure of
such party to timely sign the Form 10-K or Form 10-K Certification. 
  
 (c) The Depositor hereby grants to the Securities Administrator a limited power of attorney to execute each such Form 8-K on behalf of the Depositor. Such power of attorney shall continue until either the earlier of (i) receipt by the
Master Servicer and the Securities Administrator from the Depositor of written termination of such power of attorney and (ii) the termination of the Trust. The Depositor agrees to promptly furnish to the Securities Administrator, from time to time
upon request, such further information, reports, and financial statements within its control related to this Agreement and the Mortgage Loans as the Depositor reasonably deems appropriate to prepare and file all necessary reports with the
Commission. The Securities Administrator shall have no responsibility to file any items other than those specified in this Section. 
  
 (d) Each person (including their officers or directors) that signs any Form 10-K and Form 8-K Certification shall be entitled to indemnification from the
Trust Fund for any liability or expense incurred by it in connection with such certification, other than any liability or expense attributable to such Person’s own bad faith, negligence or willful misconduct. The provisions of this subsection
shall survive any termination of this Agreement and the resignation or removal of such Person. 
  
 SECTION 7.12 Advance Facilities. 
  
 (a) Notwithstanding anything to the contrary contained herein, (i) the Servicer is hereby authorized to enter into an advance facility (“Advance Facility”) under which (A) the Servicer sells, assigns
or pledges to another Person (together with such person’s successors and assigns, an “Advancing Person”) the Servicer’s rights under this Agreement to be reimbursed 
  

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 for any Monthly Advances or Servicing Advances and/or (B) an Advancing Person agrees to fund some or all Monthly Advances
or Servicing Advances required to be made by the Servicer pursuant to this Agreement and (ii) the Servicer is hereby authorized to assign its rights to the Subservicing Fee; it being understood that neither the Trust Fund nor any party hereto shall
have a right or claim (including without limitation any right of offset) to the portion of the Subservicing Fee so assigned. No consent of the Indenture Trustee, Noteholders or any other party is required before the Servicer may enter into an
Advance Facility. Notwithstanding the existence of any Advance Facility under which an Advancing Person agrees to fund Monthly Advances and/or Servicing Advances on the Servicer’s behalf, the Servicer shall remain obligated pursuant to this
Agreement to make Monthly Advances and Servicing Advances pursuant to and as required by this Agreement, and shall not be relieved of such obligations by virtue of such Advance Facility. 
  
 (b) If the Servicer enters into an Advance Facility, and for so long as an Advancing Person remains entitled to receive
reimbursement for any Monthly Advances including Non-recoverable Advances related thereto (“Monthly Advance Reimbursement Amounts”) and/or Servicing Advances including Non-recoverable Advances related thereto (“Servicing
Advance Reimbursement Amounts” and, together with Monthly Advance Reimbursement Amounts, “Reimbursement Amounts”) (in each case to the extent that such type of Reimbursement Amount is included in the Advance Facility), then
the Servicer shall identify such Reimbursement Amounts as received, consistently with the reimbursement rights set forth in this Agreement, and shall remit such Reimbursement Amounts in accordance with the documentation establishing the Advance
Facility to such Advancing Person or to a trustee, agent or custodian (an “Advance Facility Indenture Trustee”) designated by such Advancing Person. 
  
 If the Servicer enters into an Advance Facility, the Servicer and the related Advancing Person shall deliver to the
Indenture Trustee and the Securities Administrator a written notice of the existence of such Advance Facility (an “Advance Facility Notice”), stating the identity of the Advancing Person and any related Advance Facility Trustee. An
Advance Facility Notice may only be terminated by the joint written direction of the Servicer and the related Advancing Person as described in Section 7.12(h) below. 
  
 (c) Reimbursement Amounts shall consist solely of amounts in respect of Monthly Advances and/or Servicing Advances made with
respect to the Mortgage Loans for which the Servicer would be permitted to reimburse itself in accordance with this Agreement, assuming the Servicer had made the related Monthly Advance(s) and/or Servicing Advance(s). The Indenture Trustee, the
Securities Administrator and the Master Servicer shall have no duty or liability with respect to the calculation of any Reimbursement Amount, nor shall the Indenture Trustee, the Securities Administrator and the Master Servicer have any
responsibility to track or monitor the administration of the Advance Facility or the payment of Reimbursement Amounts to the related Advancing Person or Advance Facility Trustee. The Servicer shall maintain and provide to any successor servicer a
detailed accounting on a loan by loan basis as to amounts advanced by, pledged or assigned to, and reimbursed to any Advancing Person. The successor servicer shall be entitled to rely on any such information provided by the predecessor servicer, and
the successor servicer shall not be liable for any errors in such information. 
  

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 (d) An Advancing Person who receives an assignment or pledge of the rights to be reimbursed for Monthly
Advances and/or Servicing Advances, and/or whose obligations are limited to the making or funding of Monthly Advances will not be deemed to be a sub-Servicer under this Agreement or be required to meet the criteria for qualification as a
sub-Servicer under this Agreement. 
  
 (e) Reimbursement Amounts
allocated to reimburse Monthly Advances or Servicing Advances made with respect to any particular Mortgage Loan shall be allocated to the reimbursement of the unreimbursed Monthly Advances or Servicing Advances (as the case may be) made with respect
to that Mortgage Loan on a “first-in, first out” (“FIFO”) basis, such that the Reimbursement Amounts shall be applied to reimburse the Monthly Advance or Servicing Advance (as the case may be) for that Mortgage Loan that
was disbursed earliest in time first, and to reimburse the Monthly Advance or Servicing Advance (as the case may be) for that Mortgage Loan that was disbursed latest in time last. Liquidation Proceeds with respect to a Mortgage Loan shall be applied
to reimburse Servicing Advances outstanding with respect to that Mortgage Loan before being applied to reimburse Monthly Advances outstanding with respect to that Mortgage Loan. The Servicer shall provide to the related Advancing Person or Advance
Facility Trustee loan-by-loan information with respect to each Reimbursement Amount remitted to such Advancing Person or Advance Facility Trustee, to enable the Advancing Person or Advance Facility Trustee to make the FIFO allocation of each such
Reimbursement Amount with respect to each Mortgage Loan. 
  
 (f)
The Servicer who enters into an Advance Facility shall indemnify the Indenture Trustee, the Trust, the Master Servicer, the Securities Administrator, the Depositor and any successor servicer for any claim, loss, liability or damage resulting from
any claim by the related Advancing Person, except to the extent that such claim, loss, liability or damage resulted from or arose out of negligence, recklessness or willful misconduct on the part of the Indenture Trustee, the Master Servicer, the
Securities Administrator, the Depositor or the successor servicer. 
  
 (g) Any rights of set-off that the Trust Fund, the Indenture Trustee, the Depositor, the Master Servicer, the Securities Administrator, any successor servicer or any other Person might otherwise have against the Servicer under this
Agreement shall not attach to any rights to be reimbursed for Monthly Advances or Servicing Advances that have been sold, transferred, pledged, conveyed or assigned to any Advancing Person. 
  
 (h) At any time when an Advancing Person shall have ceased funding Monthly
Advances and/or Servicing Advances (as the case may be) and the Advancing Person or related Advance Facility Trustee shall have received Reimbursement Amounts sufficient in the aggregate to reimburse all Monthly Advances and/or Servicing Advances
(as the case may be) the right to reimbursement for which were assigned to the Advancing Person, then upon the delivery of a written notice signed by the Advancing Person and the related Servicer to the Indenture Trustee terminating the Advance
Facility Notice (the “Notice of Facility Termination”), the Servicer shall again be entitled to withdraw and retain the related Reimbursement Amounts from the Custodial Account pursuant to the applicable Sections of this Agreement.

  

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 (i) Any amendment to this Section 7.12 or to any other provision of this Agreement that may be necessary
or appropriate to effect the terms of an Advance Facility as described generally in this Section 7.12 including amendments to add provisions relating to a successor servicer, may be entered into by the Depositor, the Indenture Trustee and the
Servicer without the consent of any Noteholder or the Ownership Certificateholder, notwithstanding anything to the contrary in this Agreement. 
  
 (j) After delivery of any Advance Facility Notice, and until any such Advance Facility Notice has been terminated by a Notice of Facility Termination,
this Section 7.12 may not be amended or otherwise modified without the prior written consent of the related Advancing Person. 
  
 ARTICLE VIII 
  
 CONCERNING THE SECURITIES ADMINISTRATOR 
  
 SECTION 8.1 Duties of the Securities Administrator. 
  
 (a) The Securities Administrator shall perform such duties and only such duties that are specifically set forth in the Owner Trust Agreement, this
Agreement and the Indenture. Any permissive right of the Securities Administrator enumerated in this Agreement shall not be construed as a duty. 
  
 (b) The Trust will indemnify the Securities Administrator, and its agents for, and hold them harmless against, any losses, liability or expense incurred
without gross negligence or bad faith on their part, arising out of or in connection with the acceptance or administration of the transactions contemplated by the Owner Trust Agreement or this Agreement, including the reasonable costs and expenses
of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties under the Owner Trust Agreement, the Indenture or this Agreement. 
  
 (c) The Securities Administrator, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other instruments furnished to it, which are specifically required to be furnished pursuant to any provision of this Agreement and the Operative Agreements, shall examine them to
determine whether they conform to the requirements of this Agreement and the Operative Agreements; provided, however, that the Securities Administrator shall not be responsible for the accuracy or content of any resolution, certificate
statement, opinion, report, document, order or other instrument furnished by the Servicer, the Sellers, the Master Servicer or the Depositor. If any such instrument is found not to conform to the requirements of this Indenture in a material manner,
the Securities Administrator shall take such action as it deems appropriate to have the instrument corrected, and if the instrument is not corrected to its satisfaction, the Securities Administrator will provide notice to the Noteholders.
Notwithstanding the foregoing, the Securities Administrator shall have no obligation to reconcile, recompute or recalculate any remittances or reports of the Servicer or the Master Servicer, and the Securities Administrator may fully rely upon and
shall have no liability with respect to information provided by the Servicer. 
  

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 (d) On each Payment Date, the Securities Administrator, as paying agent, shall make monthly payments and
the final payment to the Noteholders as provided in Section 7.7 of the Transfer and Servicing Agreement. 
  
 (e) No provision of this Agreement shall be construed to relieve 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) The duties and obligations of the Securities Administrator shall be determined solely by the express provisions of this Agreement and
the Operative Agreements; the Securities Administrator shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Agreement, the Owner Trust Agreement or the Indenture; no implied covenants or
obligations shall be read into this Agreement and the Operative Agreements against the Securities Administrator and, in the absence of bad faith on the part of the Securities Administrator, the Securities Administrator may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Securities Administrator that conform to the requirements of this Agreement and the Operative Agreements, as
applicable; 
  
 (ii) The Securities Administrator
shall not be liable for an error of judgment made in good faith by a Responsible Officer of the Securities Administrator unless it shall be proved that the Securities Administrator was negligent in ascertaining or investigating the facts related
thereto; 
  
 (iii) The Securities Administrator
shall not be personally liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the consent or at the direction of Holders of Notes as provided herein relating to the time, method and place of
conducting any remedy pursuant to this Agreement and the Operative Agreements, or exercising or omitting to exercise any trust or power conferred upon the Securities Administrator under this Agreement and the Operative Agreements; and 
  
 (iv) The Securities Administrator shall not be required to
expend or risk its own funds or otherwise incur financial or other liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such
funds or indemnity satisfactory to it against such risk or liability is not assured to it, and none of the provisions contained in this Indenture shall in any event require the Securities Administrator to perform, or be responsible for the manner of
performance of, any of the obligations of the Servicer under this Agreement and the Operative Agreements. 
  

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 In carrying out the foregoing duties or any of its other obligations under this Agreement, the Securities
Administrator may enter into transactions with or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings shall be in accordance with any directions received from the Trust and
shall be, in the Securities Administrator’s opinion, no less favorable to the Trust than would be available from unaffiliated parties. 
  
 In carrying out the foregoing duties or any of its other obligations under this Agreement, the Securities Administrator shall be subject to the same
standard of care and have the same rights, indemnifications and immunities as the Indenture Trustee under the Indenture, including, without limitation, the right to reimbursement and indemnification on behalf of the Trust from funds in the
Collection Account for all losses, costs and expenses of any kind or nature (including without limitation attorneys’ fees and disbursements) incurred by the Securities Administrator (including without limitation in its various capacities as
Paying Agent, Certificate Paying Agent, Certificate Registrar and Note Registrar) in connection with the performance of its duties hereunder or under any other Operative Agreement. 
  
 The Securities Administrator in its capacity as the Certificate Registrar, and upon a request received from the Owner
Trustee, shall promptly notify the Ownership Certificateholder of (i) any change in the Corporate Trust Office of the Owner Trustee, (ii) any amendment to the Owner Trust Agreement requiring notice be given to the Ownership Certificateholder and
(iii) any other notice required to be given to the Ownership Certificateholder by the Owner Trustee under the Owner Trust Agreement. 
  
 SECTION 8.2 Records. 
  
 The Securities Administrator shall maintain appropriate books of account and records relating to services performed hereunder, which books of account and
records shall be accessible for inspection by the Trust and the Depositor at any time during normal business hours. 
  
 SECTION 8.3 Compensation. 
  
 The Securities Administrator will perform the duties and provide the services called for under Sections 8.1 and 8.2 above for such compensation as shall
be agreed upon between the Securities Administrator and the Master Servicer. 
  
 SECTION 8.4 Independence of the Securities Administrator. 
  
 For all purposes of this Agreement, the Securities Administrator shall be an independent contractor and shall not be subject to the supervision of the
Trust or the Owner Trustee with respect to the manner in which it accomplishes the performance of its obligations hereunder. Unless expressly authorized by the Trust, the Securities Administrator shall have no authority to act for or represent the
Trust or the Owner Trustee in any way and shall not otherwise be deemed an agent of the Trust or the Owner Trustee. 
  

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 SECTION 8.5 No Joint Venture. 
  
 Nothing contained in this Agreement (a) shall constitute the Securities Administrator, the Master Servicer, the Servicer,
the Sellers, the Originator, the Servicing Rights Owner or the Depositor, respectively, and any of the Trust, the Indenture Trustee or the Owner Trustee, as members of any partnership, joint venture, association, syndicate, unincorporated business
or other separate entity, (b) shall be construed to impose any liability as such on any of them or (c) shall be deemed to confer on any of them any express, implied or apparent authority to incur any obligation or liability on behalf of the others.

  
 SECTION 8.6 Other Activities of Securities Administrator
and the Depositor. 
  
 Nothing herein shall prevent the
Securities Administrator, the Depositor or their respective Affiliates from engaging in other businesses or, in its sole discretion, from acting in a similar capacity as an Securities Administrator for any other person or entity even though such
person or entity may engage in business activities similar to those of the Trust or the Owner Trustee. 
  
 SECTION 8.7 Certain Matters Affecting the Securities Administrator. 
  
 (a) The Securities Administrator may request and conclusively rely upon, and shall be fully protected in acting or
refraining from acting upon, any resolution, Officers’ Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document reasonably
believed by it to be genuine and to have been signed or presented by the proper party or parties, and the manner of obtaining consents and of evidencing the authorization of the execution thereof by Noteholders shall be subject to such reasonable
regulations as the Securities Administrator may prescribe; 
  
 (b)
The Securities Administrator may consult with counsel of its selection and any advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it
hereunder in good faith and in accordance with such advice or Opinion of Counsel; 
  
 (c) The Securities Administrator shall not be under any obligation to exercise any of the powers vested in it by this Agreement and the Operative Agreements or to institute, conduct or defend any litigation hereunder
or in relation hereto at the request, order or direction of any of the Noteholders, pursuant to the provisions of this Agreement and the Operative Agreements, unless such Noteholders shall have offered to the Securities Administrator reasonable
security or indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby; 
  
 (d) The Securities Administrator shall not be personally liable for any action taken, suffered or omitted by it in good faith and believed by it to be
authorized or within the discretion or rights or powers conferred upon it by this Agreement and the Operative Agreements; 
  

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 (e) The Securities Administrator shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing to do so by the Holders of Notes entitled to at least 25% of the
Voting Interests; provided, however, that if the payment within a reasonable time to the Securities Administrator of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion
of the Securities Administrator not reasonably assured to the Securities Administrator by such Noteholders, the Securities Administrator may require reasonable indemnity satisfactory to it against such expense, or liability from such Noteholders as
a condition to taking any such action; 
  
 (f) The Securities
Administrator may execute any of the powers hereunder or perform any duties hereunder either directly or by or through agents, nominees, attorneys or a custodian; 
  
 (g) The Securities Administrator shall not be liable for any loss on any investment of funds pursuant to this Indenture or
the Transfer and Servicing Agreement (other than as issuer of the investment security); 
  
 (h) The Securities Administrator shall not be deemed to have notice of any Event of Default unless a Responsible Officer of the Securities Administrator has actual knowledge thereof or unless written notice of any
event which is in fact such a default is received by the Securities Administrator at the Corporate Trust Office of the Securities Administrator, and such notice references the Notes and this Agreement. The Securities Administrator shall not have any
responsibility or liability for any action or failure to act by the Master Servicer, the Servicer or any Seller nor shall the Securities Administrator be obligated to supervise or monitor the performance of the Master Servicer, Servicer or any
Seller hereunder or otherwise; 
  
 (i) The rights, privileges,
protections, immunities and benefits given to the Securities Administrator, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, each Paying Agent, Note Registrar, agent, custodian and other
Person employed to act hereunder; 
  
 (j) The right of the
Securities Administrator to perform any discretionary act enumerated in this Agreement and the Operative Agreements shall not be construed as a duty, and the Securities Administrator shall not be answerable for other than its negligence or willful
misconduct in the performance of such act; and 
  
 (k) All rights
of action under this Agreement and the Operative Agreements, enforceable by the Securities Administrator, may be enforced by it without the possession of any of the Notes, or the production thereof at the trial or other proceeding relating thereto,
and any such suit, action or proceeding instituted by the Securities Administrator shall be brought in its name for the benefit of all the Holders of such Notes, subject to the provisions of this Agreement and the Operative Agreements. 

 

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 (l) Notwithstanding anything in this Indenture to the contrary, in no event shall the Securities
Administrator be liable to any Person for any act or omission of the Master Servicer, the Servicer, any Seller or the Custodian. 
  
 SECTION 8.8 Securities Administrator Not Liable for Notes or Mortgage Loans. 
  
 The recitals contained herein and in the Notes (other than the authentication and countersignature on the Notes) shall be
taken as the statements of the Seller, and neither the Securities Administrator, the Paying Agent nor the Note Registrar assumes any responsibility for the correctness of the same. The Securities Administrator does not make any representations or
warranties as to the validity or sufficiency of this Agreement, the Operative Agreements or of the Notes (other than the countersignature on the Notes) or of any Mortgage Loan or related document or of MERS or the MERS System. The Securities
Administrator shall not be accountable for the use or application by the Depositor of any of the Notes or of the proceeds of such Notes, or for the use or application of any funds paid to the Depositor in respect of the Mortgage Loans or deposited
in or withdrawn from the Custodial Account by the Servicer. The Securities Administrator shall not have any duty (a) to see to any recording, filing or depositing of this Agreement, the Operative Agreements or any financing statement or continuation
statement evidencing a security interest, or to see to the maintenance of any such recording, filing or depositing thereof, (b) to see to any insurance or (c) to see to the payment or discharge of any tax, assessment or other governmental charge or
any lien or encumbrance of any kind owing with respect to, assessed or levied against, any part of the Trust Fund. 
  
 SECTION 8.9 Securities Administrator May Own Notes. 
  
 The Securities Administrator, in its individual capacities, or in any capacity other than as Securities Administrator hereunder, may become the owner or
pledgee of any Notes with the same rights as they would have if they were not Securities Administrator, and may otherwise deal with the parties hereto. 
  
 SECTION 8.10 Expenses of the Securities Administrator. 
  
 The Securities Administrator and its officers, directors, employees and agents will be entitled to recover from the Trust Fund from amounts held in the
Collection Account, and shall be indemnified from the Trust Fund for, all reasonable out-of-pocket expenses, disbursements, and advances, including costs of collection, upon any Indenture Event of Default, any breach of this Agreement and the
Operative Agreements and any loss, liability, expense, claim or legal action (including any pending or threatened claim or legal action) incurred or made by any of them in the performance of their duties under this Agreement and the Operative
Agreements (including the reasonable compensation, expenses and disbursements of its counsel) except any such expense, loss, liability, disbursement or advance as may arise from its negligence or intentional misconduct. If funds in the Collection
Account are insufficient therefor, the Securities Administrator shall recover such expenses from future funds deposited in the Collection Account. Such compensation and reimbursement obligation shall not be limited by any provision of law in regard
to the compensation of a Securities Administrator of an express trust. Such obligations shall survive the termination of this Agreement and the Operative Agreements and the removal or resignation of the Securities Administrator. 
  

 109 

 SECTION 8.11 Eligibility Requirements for the Securities Administrator. 
  
 The Securities Administrator hereunder shall at all times be an entity duly
organized and validly existing under the laws of the United States of America or any state thereof, authorized under such laws to exercise corporate trust powers, and shall each have a combined capital and surplus of at least $50,000,000, a minimum
long-term debt rating in the third highest rating category by each Rating Agency, a minimum short-term debt rating in the second highest rating category by a Rating Agency, and shall each be subject to supervision or examination by federal or state
authority. If such entity publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section 8.11, the combined capital and surplus of
such entity shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. In case at any time the Securities Administrator shall cease to be eligible in accordance with the provisions of
this Section 8.11, the Securities Administrator shall resign immediately in the manner and with the effect specified in Section 8.12. 
  
 SECTION 8.12 Resignation and Removal of the Securities Administrator. 
  
 The Securities Administrator (including the Securities Administrator as Paying Agent and as Note Registrar) may at any time
resign and be discharged from the trust hereby created by giving written notice thereof to the Depositor, the Sellers, the Master Servicer, the Servicer and each Rating Agency. Upon receiving such notice of resignation of the Securities
Administrator, the Depositor shall promptly appoint a successor Securities Administrator that meets the requirements in Section 8.11, by written instrument, in duplicate, one copy of which instrument shall be delivered to each of the resigning
Securities Administrator and one copy to the successor Securities Administrator. If no successor Securities Administrator shall have been so appointed and having accepted appointment within 60 days after the giving of such notice of resignation, the
resigning Securities Administrator may petition any court of competent jurisdiction for the appointment of a successor Securities Administrator. 
  
 If at any time the Securities Administrator shall cease to be eligible in accordance with the provisions of Section 8.11 or if at any time the Securities
Administrator shall be legally unable to act, or shall be adjudged a bankrupt or insolvent, or a receiver of the Securities Administrator or of its property shall be appointed, or any public officer shall take charge or control of the Securities
Administrator or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Depositor may remove the Securities Administrator (including the Securities Administrator as Paying Agent and as Note Registrar). If
the Depositor removes the Securities Administrator under the authority of the immediately preceding sentence, the Depositor shall promptly appoint a successor Securities Administrator that meets the requirements of Section 8.11, by written
instrument, in duplicate, one copy of which instrument shall be delivered to the successor Securities Administrator and one copy to each of the Master Servicer and the Servicer. 
  
 Holders of Notes entitled to at least 51% of the Voting Rights may at any time remove the Securities Administrator
(including the Securities Administrator as Paying Agent and as Note Registrar) and appoint a successor Securities Administrator by written instrument or instruments signed by such Holders or their attorneys-in-fact duly authorized, one complete set
of which 
  

 110 

 instruments shall be delivered to the Depositor, one complete set to the Securities Administrator so removed and one
complete set to the successor so appointed. A copy of such instrument shall be delivered to the Noteholders, the Securities Administrator and the Master Servicer and the Servicer by the Depositor. 
  
 SECTION 8.13 Successor Securities Administrator. 
  
 Any successor Securities Administrator appointed as provided in Section 8.12
shall execute, acknowledge and deliver to the Depositor, the Sellers, the Servicer, the Master Servicer and to its predecessor Securities Administrator an instrument accepting such appointment hereunder, and thereupon the resignation or removal of
the predecessor Securities Administrator shall become effective, and such successor Securities Administrator without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as Securities Administrator. The Depositor, the Sellers, the Servicer, the Master Servicer and the predecessor Securities Administrator shall execute and deliver such instruments and do
such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Securities Administrator, all such rights, powers, duties and obligations. 
  
 No successor Securities Administrator shall accept appointment as provided in this Section 8.13 unless at the time of such
acceptance such successor Securities Administrator shall be eligible under the provisions of Section 8.11 and the appointment of such successor Securities Administrator shall not result in a downgrading of the Classes of Notes rated by any Rating
Agency, as evidenced by a letter from each Rating Agency. 
  
 Upon
acceptance of appointment by a successor Securities Administrator as provided in this Section 8.13, the successor Securities Administrator shall mail notice of such appointment hereunder to all Holders of Notes at their addresses as shown in the
Note Register and to the Rating Agencies. 
  
 SECTION 8.14
Merger or Consolidation of Securities Administrator. 
  
 Any corporation or association into which the Securities Administrator may be merged or converted or with which it may be consolidated or any corporation or association resulting from any merger, conversion or consolidation to which the
Securities Administrator shall be a party, or any corporation or association succeeding to the business of the Securities Administrator shall be the successor of the Securities Administrator hereunder, provided such corporation or association shall
be eligible under the provisions of Section 8.11, 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. 
  

 111 

 ARTICLE IX 
  

TERMINATION 
  
 SECTION 9.1 Termination. 
  
 The respective obligations and responsibilities of the Master Servicer, the Securities Administrator, the Depositor, the Trust, the Servicer, the Sellers,
the Originator, the Servicing Rights Owner and the Indenture Trustee created hereby (other than obligations expressly stated to survive the termination of the Trust) shall terminate on the date (the “Termination Date”) which is the
earlier to occur of: 
  
 (i) the day after the
day on which the Notes are paid in full (including payment pursuant to Section 9.2 below); and 
  
 (ii) the date that is 21 years from the death of the last survivor of the descendants of Joseph P. Kennedy, the late ambassador of the
United States to the Court of St. James’s, living on the date hereof. 
  
 SECTION 9.2 Optional Termination; Clean-up Call; Termination Prior to Maturity Date. 
  
 (a) On the Payment Date following the month in which the Scheduled Principal Balance of the Mortgage Loans as of the last day of the related Due Period is
equal to or less than [ - ]% of the Cut-off Date Balance of the Mortgage Loans, the [Servicing Rights Owner] acting directly or through one or more Affiliates, shall have the option to purchase the Mortgage Loans, any REO Property and any other
property remaining in the Trust for a price equal to or greater than the Redemption Price. The Master Servicer and the Servicer will be reimbursed from the Redemption Price for any outstanding Monthly Advances, Servicing Advances, unpaid
Subservicing Fees and other amounts not previously reimbursed pursuant to the provisions of this Agreement, as applicable, and the Securities Administrator, the Owner Trustee and the Indenture Trustee shall be reimbursed for any previously
unreimbursed amounts for which they are entitled to be reimbursed pursuant to this Agreement, the Indenture or the Owner Trust Agreement, as applicable. If such option is exercised, the Trust will be terminated resulting in a mandatory redemption of
the Notes. The [Servicing Rights Owner] shall deliver written notice of its intention to exercise such option to the Trust, the Depositor, the Securities Administrator, the Indenture Trustee and the Master Servicer not less than 30 days prior to the
applicable Payment Date. 
  
 In connection with such purchase, the
[Servicing Rights Owner] shall cause the Servicer to remit to the Securities Administrator all amounts then on deposit in the Custodial Account in respect of the related Servicer Remittance Amount for deposit to the Collection Account, which deposit
shall be deemed to have occurred immediately preceding such purchase. 
  
 (b) On the Payment Date following the month in which the aggregate principal balance of the Mortgage Loans as of the last day of the related Due Period is less than [ - ]% of the aggregate Cut-off Date Balance, and if the [Servicing Rights
Owner] has not exercised its option in accordance with Section 9.2(a), the Servicer shall have the option to purchase the 
  

 112 

 Mortgage Loans, any REO Property and any other property remaining in the Trust for a price equal to the greater of (a)
100% of the aggregate Class Principal Amount of the Notes, plus unpaid interest through the day before the final Payment Date and any unpaid administrative expenses of the Trust and (b) the aggregate unpaid Scheduled Principal Balance of all
Mortgage Loans in the Mortgage Pool on that day plus any Principal Proceeds and Interest Proceeds collected or advanced during the related Due Period. If the Servicer exercises such option, it shall comply with all of the provisions of Sections 9.2
and 9.3 that would have been applicable to the Servicing Rights Owner had the [Servicing Rights Owner] exercised its option pursuant to Section 9.2(a). The Servicer shall deliver written notice of its intention to exercise such option to the Trust,
the Depositor, the Securities Administrator, the Indenture Trustee and the Master Servicer, not less than 30 days prior to the applicable Payment Date. 
  
 (c) Promptly following any such purchase pursuant to paragraphs (a), (b) or (c) of this Section, the Custodian shall release the Mortgage Files to the
purchaser of such Mortgage Loans pursuant to this Section 9.2, or otherwise upon its order. 
  
 SECTION 9.3 Certain Notices upon Final Payment. 
  
 The Master Servicer or the Securities Administrator, as applicable, shall give the Trust, the Indenture Trustee, the Owner Trustee, each Rating Agency, each Noteholder, the Ownership Certificateholder, the Servicing
Rights Owner and the Depositor at least 10 days’ prior written notice of the date on which the Trust is expected to terminate in accordance with Section 9.1, or the date on which the Notes will be redeemed in accordance with Section 9.2. Not
later than the fifth Business Day in the Due Period in which the final payment in respect to the Notes is payable to the Noteholders, the Indenture Trustee shall mail to the Noteholders a notice specifying the procedures with respect to such final
payment. The Securities Administrator on behalf of the Indenture Trustee shall give a copy of such notice to each Rating Agency at the time such notice is given to the Noteholders. Following the final payment thereon, such Notes shall become void,
no longer outstanding and no longer evidence any right or interest in the Mortgage Loans, the Mortgage Files or any proceeds of the foregoing. 
  
 ARTICLE X 
  
 MISCELLANEOUS PROVISIONS 
  
 SECTION 10.1 Binding Nature of Agreement. 
  
 This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
  
 SECTION 10.2 Entire Agreement. 
  
 This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control
and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. 
  

 113 

 SECTION 10.3 Amendment. 
  
 (a) This Agreement may be amended from time to time by the parties hereto and the Ownership Certificateholder, without
notice to or the consent of any of the Noteholders: 
  
 (i) to cure any ambiguity; 
  
 (ii) to
cause the provisions herein to conform to or be consistent with or in furtherance of the statements made with respect to the Notes or the Ownership Certificate, the Trust or this Agreement in any Prospectus, or to correct or supplement any provision
herein which may be inconsistent with any other provisions herein or in any other Operative Agreement, to make any other provisions with respect to matters or questions arising under this Agreement; 
  
 (iii) to make any other provision with respect to matters or
questions arising under this Agreement or; 
  
 (iv) to add, delete, or amend any provisions to the extent necessary or desirable to comply with any requirements imposed by the Code or ERISA and applicable regulations. 
  
 No such amendment effected pursuant to the preceding sentence shall, as evidenced by an Opinion of Counsel (which shall be
an expense of the party requesting such amendment and shall not be an expense of the Trust), adversely affect the status of the Notes as debt or subject the Issuer to entity level tax for federal income tax purposes, nor shall such amendment
effected pursuant to clause (iii) of such sentence adversely affect in any material respect the interests of any Noteholder, nor shall such amendment be made with respect to Section 7.7(b), 7.7(c) or 7.7(d) or the definition of “Interest
Proceeds” or “Principal Proceeds.” Prior to entering into any amendment without the consent of the Noteholders pursuant to this paragraph, the Indenture Trustee and the Securities Administrator may require an Opinion of Counsel (at
the expense of the party requesting such amendment) to the effect that such amendment is permitted under this paragraph. Any such amendment shall be deemed not to adversely affect in any material respect any Noteholder, if the Indenture Trustee
receives written confirmation from each Rating Agency that such amendment will not cause such Rating Agency to downgrade, withdraw or qualify the then current rating assigned to the Notes. 
  
 (b) This Agreement may also be amended from time to time by the parties
hereto, with the consent of the Noteholders representing 66 2/3% of the Voting Interests 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 Notes; provided, however, that no such amendment may (i) reduce in any manner the
amount of, or delay the timing of, payments which are required to be made on any Class of Notes, without the consent of the Noteholders of such Class or (ii) reduce the aforesaid percentages of Class Principal Amount of Notes, the Noteholders are
required to consent to any such amendment without the consent of the Noteholders of 100% of the Class Principal Amount of the Notes. No such amendment may be made with respect to Sections 7.7(b), 7.7(c) or 7.7(d) or the definition of “Interest
Proceeds” or “Principal Proceeds” without 100% of the Voting Interests. 
  

 114 

 (c) Promptly after the execution of any such amendment, the Indenture Trustee shall furnish written
notification of the substance of such amendment to each Noteholder, the Depositor and to each Rating Agency. 
  
 (d) It shall not be necessary for the consent of the Noteholders under this Section 10.3 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 the Noteholders shall be subject to such reasonable regulations as the
Indenture Trustee may prescribe. 
  
 SECTION 10.4 Acts of the
Noteholders. 
  
 Except as otherwise specifically provided
herein, whenever action, consent or approval by a Noteholder is required under this Agreement, such action, consent or approval shall be deemed to have been taken or given on behalf of, and shall be binding upon, all Noteholders if Noteholders
representing 66 2/3% of the Voting Interests agree to take such action or give such consent or approval.

  
 SECTION 10.5 Recordation of Agreement.

  
 To the extent permitted by applicable law, this Agreement, or
a memorandum thereof if permitted under applicable law, is subject to recordation in all appropriate public offices for real property records in all of the counties or other comparable jurisdictions in which any or all of the properties subject to
the Mortgages are situated, and in any other appropriate public recording office or elsewhere, such recordation to be effected by the Depositor on direction and at the expense of the Noteholders of not less than 66 2/3% of the of the Note Principal Amount of the Notes and of Ownership Certificateholder requesting such recordation,
but only when accompanied by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Noteholders, or is necessary for the administration or servicing of the Mortgage Loans.

  
 SECTION 10.6 Governing Law. 
  
 This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York without reference to its conflict of laws rules (other than Section 5-1401 of the General Obligations Law, which the parties hereto expressly rely upon in the choice of such law as the governing law hereunder)
and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. 
  
 SECTION 10.7 Notices. 
  
 All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given if mailed by overnight courier,
addressed as follows or delivered by facsimile (or such other address as may hereafter be furnished to the other party by like notice): 
  

	 	(i)	if to the Originator: 

  
 First NLC Financial Services, LLC 
 c/o
Friedman, Billings, Ramsey & Co., Inc. 
 1001 Nineteenth Street North 
 Arlington, Virginia 22202 
 Attention: FBR
Chief Legal Counsel 
 Telephone: (703) 469-1040 
 Facsimile: (703) 469-1140 
  

 115 

 with a copy to: 
  
 Friedman, Billings, Ramsey & Co., Inc. 
 1001 Nineteenth Street North 
 Arlington, Virginia 22202 
 Attention: FBR Chief Legal Counsel 
 Telephone: (703) 469-1040 
 Facsimile: (703) 469-1140 
  

	 	(ii)	if to the Sellers: 

  
 [ - ] 
  

	 	(iii)	if to the Servicer: 

  
 [ - ] 
  

	 	(iv)	if to the Master Servicer or the Securities Administrator: 

  
 [ - ] 
  

	 	(v)	if to the Indenture Trustee: 

  
 [ - ] 
  

	 	(vi)	if to the Depositor: 

  
 First NLC Securitization, Inc. 
 1001
Nineteenth Street North 
 Arlington, Virginia 22202 
 Attention: Michael Warden 
 Telephone: (703) 312-1809 
 Facsimile: (703) 469-1075 
  
 with a copy to: 
  
 Friedman, Billings, Ramsey & Co., Inc. 
 1001 Nineteenth Street North 
 Arlington, Virginia 22202 
 Attention: FBR Chief Legal Counsel 
 Telephone: (703) 469-1040 
 Facsimile: (703) 469-1140 
  

 116 

  

	 	(vii)	if to the Trust: 

  
 [ - ] 
  

	 	(viii)	if to the Servicing Rights Owner: 

  
 [ - ] 
  
 with a copy to: 
  
 [ - ] 
  
 All demands, notices and communications to a party hereunder shall be in writing and shall be deemed to have been duly given when delivered to such party
at the relevant address, facsimile number or electronic mail address set forth above or at such other address, facsimile number or electronic mail address as such party may designate from time to time by written notice in accordance with this
Section 10.7. 
  
 SECTION 10.8 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 Notes or of the Ownership Certificate or the rights of the Noteholders or the Ownership Certificateholder. 
  
 SECTION 10.9 Indulgences; No Waivers. 
  
 Neither the failure nor any delay on the part of a party to exercise any
right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right,
remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be
effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
  
 SECTION 10.10 Headings Not To Affect Interpretation. 
  
 The headings contained in this Agreement are for convenience of reference only, and they shall not be used in the interpretation hereof. 
  

 117 

 SECTION 10.11 Benefits of Agreement. 
  
 Nothing in this Agreement or in the Notes or the Ownership Certificate,
express or implied, shall give to any Person, other than the parties to this Agreement and their successors hereunder and the Noteholders and the Ownership Certificateholder, any benefit or any legal or equitable right, power, remedy or claim under
this Agreement. Notwithstanding the foregoing, the Owner Trustee shall be an express third-party beneficiary of this Agreement. 
  
 SECTION 10.12 Special Notices to the Rating Agencies. 
  
 (a) The Sellers shall give prompt notice to each Rating Agency of the occurrence of any of the following events of which it has notice: 
  
 (i) any amendment to this Agreement pursuant to Section
10.3; and 
  
 (ii) the making of a final payment
hereunder. 
  
 (b) All notices to the Rating Agencies provided for
by this Section shall be in writing and sent by first class mail, telecopy or overnight courier, as follows: 
  
 if to Moody’s: 
  
 Moody’s Investors Service, Inc. 
 99
Church Street 
 New York, New York 10004 
 Facsimile: (212) 553-4392 
  
 if
to S&P: 
  
 Standard & Poor’s Ratings Service, a
division 
 of the McGraw-Hill Companies, Inc. 
 55 Water Street 
 New York, New York 10041 
 Facsimile: (212) 438-2661 
  
 if to Fitch: 
  
 Fitch Ratings 
 One State Street Plaza

 New York, New York 10004 
 Attention: Residential Mortgage Surveillance 
  
 (c) The
Securities Administrator shall make available to the Rating Agencies each report prepared pursuant to Section 7.8. 
  

 118 

 SECTION 10.13 Counterparts. 
  
 This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all of
which together shall constitute one and the same instrument. 
  
 SECTION 10.14 Execution by the Trust; Closing Certifications. 
  
 It is expressly understood and agreed by the parties hereto that (a) this Agreement is executed and delivered by
                    , not individually or personally but solely as Owner Trustee of the Trust, in the exercise of the powers and authority
conferred and vested in it as trustee, (b) each of the representations, undertakings and agreements herein made on the part of the Trust is made and intended not as personal representations, undertakings and agreements by
                     but is made and intended for the purpose of binding only the Trust, (c) nothing herein contained shall be construed as
creating any liability on                     , individually or personally, to perform any covenant either expressed or implied contained
herein, all such liability, if any, being expressly waived by the parties hereto and by any person claiming by, through or under the parties hereto and (d) under no circumstances shall
                     be personally liable for the payment of any indebtedness or expenses of the Trust or be liable for the breach or failure
of any obligation, representation, warranty or covenant made or undertaken by the Trust under this Agreement or any other document. 
  
 The Depositor may make any certifications of the Issuer and required under the Indenture on and as of the Closing Date in connection with the issuance of
the Notes. 
  
 SECTION 10.15 Assignment of OTC Hedge
Agreements 
  
 Notwithstanding anything herein or the
Operative Agreements to the contrary, from time to time the Depositor may assign to the Issuer certain derivative contracts for the exclusive benefit of the Ownership Certificateholder (each, an “OTC Hedge Agreement”) if the
following conditions are met on the date such OTC Hedge Agreement is assigned: 
  
 (a) The Depositor has provided at least seven Business Days prior notice of such assignment to the Issuer, the Owner Trustee, the Securities Administrator and the Indenture Trustee; 
  
 (b) No payments are due to the hedge counterparty under the OTC Hedge
Agreement, including any payment that may arise from an event of default or termination event thereunder; 
  
 (c) The OTC Hedge Agreement is documented on standard forms promulgated by the International Swaps and Derivatives Association, Inc.; 
  
 (d) Each OTC Hedge Agreement is governed by, and construed in accordance
with, the laws of the State of New York, and contains standard submission to jurisdiction and waivers of jury trial; and 
  
 (e) Each OTC Hedge Agreement contains appropriate “limited recourse” and “non-petition” provisions. 
  

 119 

 While any such OTC Hedge Agreement will be an asset of the Issuer, it will not be part of the Trust Fund.
Any payments received under an OTC Hedge Agreement will not be available to pay principal and interest on the Notes or to pay any fee, expense and indemnity obligations of the Issuer under the Operative Agreement. The Securities Administrator shall
remit promptly any payments received under the OTC Hedge Agreement to the Ownership Certificateholder. The Securities Administrator will also forward promptly any communications received from the counterparty to the OTC Hedge Agreement. The
Securities Administrator shall no obligation to engage in any other action with respect to an OTC Hedge Agreement unless the Depositor or the Ownership Certificateholder has provided indemnity satisfactory to the Securities Administrator, as
determined in its sole discretion. 
  
 None of the Owner Trustee,
the Sellers, the Originator the Servicer, the Master Servicer, the Servicing Rights Owner, the Indenture Trustee or, except as set forth in this Section, the Securities Administrator will have any duties to monitor and otherwise enforce any OTC
Hedge Agreement. 
  
 Payments received under the OTC Hedge
Agreement need not be reflected in any report to Noteholders or the Ownership Certificateholder as otherwise provided in this Agreement. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 120 

 IN WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto by their respective
officers hereunto duly authorized as of the day and year first above written. 
  

					
	 FIRST NLC SECURITIZATION TRUST 200  -  ,
 as Issuer

		
	By:	 	[ - ], not in its
	 	 	individual capacity but solely as Owner
	 	 	Trustee
			
	 	 	By:	 	  

	 	 	Name:	 	  

	 	 	Title:	 	  

  

			
	 FIRST NLC SECURITIZATION, INC., as
 Depositor

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 [ - ], not in its individual capacity but solely as
 Indenture

	 Trustee
	 	 
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	[ - ], as Securities Administrator and
	Master Servicer
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 121 

			
	[ - ], as Seller
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	FIRST NLC FINANCIAL SERVICES, LLC, as
	Originator and Seller
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	[ - ], as Servicer
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 122 

			
	[ - ], as Servicing Rights
	Owner	 	 
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 123 

 EXHIBIT A 
  

INFORMATION FIELDS FOR MORTGAGE LOAN SCHEDULE 
  
 The Mortgage Loan Schedule shall set forth, among other things, the following information with respect to each Mortgage Loan: 
  

	1.	the Loan information; 

  

	2.	the applicable Cut-off Date; 

  

	3.	the zip code of the Mortgaged Property; 

  

	4.	a code indicating whether the Mortgaged Property is a single family residence, two-family residence, three-family residence, four-family residence, planned unit development or
condominium; 

  

	5.	the current Mortgage Rate; 

  

	6.	the current Scheduled Monthly Payment; 

  

	7.	the original term to maturity; 

  

	8.	the scheduled maturity date; 

  

	9.	the principal balance of the Mortgage Loan as of the Cut-off Date after deduction of payments of principal due on or before the Cut-off Date whether or not collected;

  

	10.	the Loan-to-Value Ratio or, if applicable, the Combined Loan-to-Value Ratio; 

  

	11.	the FICO score of the Mortgagor at the time of origination; 

  

	12.	a code indicating the credit grade and specific loan/underwriting program of each Mortgage Loan as assigned by the Trust; 

  

	13.	a code indicating the name of the issuer of the PMI Policy or PPMI Policy, if any, and the certificate number and percentage coverage, if applicable; 

  

	14.	the date on which the first Scheduled Monthly Payment was due and the applicable Due Date; 

  

	15.	the date on which the next payment is due; 

  

	16.	the documentation level (full, alternative, limited); 

  

	17.	loan purpose (i.e., purchase, rate/term refinancing, cash-out refinancing); 

  

 A-1 

	18.	a code indicating whether the Mortgaged Property is owner-occupied or investor property; 

  

	19.	a code indicating the product type (e.g., 2/28, 3/27, 15 year fixed, etc.); 

  

	20.	a code indicating whether the Mortgage Loan is subject to a Prepayment Premium; 

  

	21.	the term of any Prepayment Premium; 

  

	22.	the type and amount of any Prepayment Premium; 

  

	23.	with respect to each Adjustable Rate Mortgage Loan, the Gross Margin; 

  

	24.	with respect to each Adjustable Rate Mortgage Loan, the next Adjustment Date; 

  

	25.	with respect to each Adjustable Rate Mortgage Loan, the lifetime maximum Mortgage Interest Rate; 

  

	26.	with respect to each Adjustable Rate Mortgage Loan, the lifetime minimum Mortgage Interest Rate; 

  

	27.	with respect to each Adjustable Rate Mortgage Loan, the periodic Mortgage Interest Rate cap; 

  

	28.	with respect to each Adjustable Rate Mortgage Loan, the Index; 

  

	29.	the applicable Subservicing Fee Rate and Servicing Rights Fee Rate; 

  

	30.	a code indicating whether the Mortgage Loan is an adjustable rate or fixed rate mortgage loan; 

  

	31.	a code indicating whether the Mortgage Loan is a balloon loan; and 

  

	32.	a code indicating whether the Mortgage Loan is a “high cost” (or similarly classified) loan under applicable federal, state and local laws. 

  
 With respect to the Mortgage Loans in the aggregate in the related Mortgage
Loan Package, the respective Mortgage Loan Schedule shall set forth the following information, as of the Cut-off Date: 
  

	1.	the number of Mortgage Loans; 

  

	2.	the current aggregate outstanding principal balance of the Mortgage Loans; 

  

	3.	the current weighted average Mortgage Interest Rate of the Mortgage Loans; and 

  

	4.	the weighted average months to maturity of the Mortgage Loans. 

  

 A-2 

 EXHIBIT B 
  

CONTENTS OF EACH MORTGAGE FILE 
  
 With respect to each Mortgage Loan, the Mortgage File shall include each of the following items delivered to the Custodian, portions of which may be held
by the Servicer in the Servicing File: 
  
 (i)
The original Mortgage Note endorsed “Pay to the order of                             , as
indenture trustee (the “Indenture Trustee”) under the Transfer and Servicing Agreement, dated as of                  ,
200  , by and among First NLC Securitization, Inc., as Depositor, the Indenture Trustee,
                            , as Securities Administrator and Master Servicer, First NLC
Securitization Trust 200  -  , as Issuer,
                            , as Servicer, First NLC Financial Services, LLC, as Originator, and
                            , as Sellers, and
                            , as Servicing Rights Owner relating to First NLC Securitization Trust
200  -   Mortgage Backed Securities, without recourse” and signed in the name of the applicable Seller by an Authorized Officer (provided, in the event that the Mortgage Loan was acquired by the
applicable Seller in a merger, the signature must be in the following form: “[Seller], successor by merger to [name of predecessor]”; and in the event that the Mortgage Loan was acquired or originated by the applicable Seller while doing
business under another name, the signature must be in the following form: “[Seller], formerly known as [previous name]”). The Mortgage Note must contain all necessary intervening endorsements showing a complete chain of endorsement from
the Originator (each such endorsement being sufficient to transfer all right, title and interest of the party so endorsing, as the holder of the Mortgage Note or assignee thereof, in and to that Mortgage Note); or 
  
 With respect to no more than 1% of the unpaid principal
balance of the Mortgage Loans as of the Cut-off Date, a certified copy of the Mortgage Note (endorsed as provided above) together with a lost note affidavit in the form of Exhibit C, providing indemnification to the holder thereof for any
losses incurred due to the fact that the original Mortgage Note is missing. 
  
 (ii) The original of any guarantee executed in connection with the Mortgage Note (if any). 
  
 (iii) The original Mortgage, with evidence of recording thereon, except as follows: If in connection with any Mortgage Loan, the
applicable Seller cannot deliver or cause to be delivered the original Mortgage with evidence of recording thereon on or prior to the Closing Date because of a delay caused by the public recording office where such Mortgage has been delivered for
recordation or because such Mortgage has been lost or because such public recording office retains the original recorded Mortgage, the applicable Seller shall deliver or cause to be delivered to the Custodian, a photocopy of such Mortgage, together
with (a) in the case of a delay caused by the public recording office, an Officer’s Certificate of the applicable Seller stating that such Mortgage has been dispatched to the appropriate public recording office for recordation and that the

  

 B-1 

 original recorded Mortgage or a copy of such Mortgage certified by such public recording office to be a
true and complete copy of the original recorded Mortgage will be promptly delivered to the Custodian upon receipt thereof by the applicable Seller; or (b) in the case of a Mortgage where a public recording office retains the original recorded
Mortgage or in the case where a Mortgage is lost after recordation in a public recording office, a copy of such Mortgage certified by such public recording office or by the title insurance company that issued the title policy to be a true and
complete copy of the original recorded Mortgage. 
  
 (iv) The originals or certified true copies of any document sent for recordation of all assumption, modification, consolidation or extension agreements, with evidence of recording thereon, or, if the original of any such agreement with
evidence of recording thereon has not been returned by the public recording office where such agreement has been delivered for recordation or such agreement has been lost or such public recording office retains the original recorded agreement, a
photocopy of such agreement, certified by the applicable Seller or its agent to be a true and correct copy of the agreement delivered to the appropriate public recording office for recordation. The original recorded agreement or, in the case of a
agreement where a public recording office retains the original recorded agreement or in the case where an agreement is lost after recordation in a public recording office, a copy of such agreement certified by such public recording office to be a
true and complete copy of the original recorded agreement, will be promptly delivered to the Custodian upon receipt thereof by the applicable Seller. 
  
 (v) The original Assignment of Mortgage, in blank, for each Mortgage Loan, in form and substance acceptable for recording (except for the
insertion of the name of the assignee and recording information). If the Mortgage Loan was acquired by the applicable Seller in a merger, the Assignment of Mortgage must be made by “[Seller], successor by merger to [name of predecessor].”
If the Mortgage Loan was acquired or originated by the applicable Seller while doing business under another name, the Assignment of Mortgage must be made by “[Seller], formerly know as [previous name].” Subject to the foregoing and where
permitted under the applicable laws of the jurisdiction wherein the Mortgaged property is located, such Assignments of Mortgage may be made by blanket assignments for Mortgage Loans secured by the Mortgaged Properties located in the same county. If
the related Mortgage has been recorded in the name of MERS or its designee, no Assignment of Mortgage will be required to be prepared or delivered and instead, the applicable Seller shall take all actions as are necessary to cause the Custodian to
be shown as the owner of the related Mortgage Loan on the records of MERS for purposes of the system of recording transfers of beneficial ownership of mortgages maintained by MERS. 
  
 (vi) For any Mortgage Loan not recorded in the name of MERS, originals or certified true copies of documents
sent for recordation of all Intervening Assignments of the Mortgage with evidence of recording thereon, or if any such Intervening Assignment has not been returned from the applicable recording office or has been lost or if such public recording
office retains the original recorded assignments of mortgage, the applicable Seller shall deliver or cause to be delivered to the Custodian, a photocopy of 
  

 B-2 

 such Intervening Assignment, together with (i) in the case of a delay caused by the public recording
office, an Officer’s Certificate of the applicable Seller stating that such Intervening Assignment of Mortgage has been dispatched to the appropriate public recording office for recordation and that such original recorded Intervening Assignment
of Mortgage or a copy of such Intervening Assignment of Mortgage certified by the appropriate public recording office or by the title insurance company that issued the title policy to be a true and complete copy of the original recorded Intervening
Assignment of Mortgage will be promptly delivered to the Custodian upon receipt thereof by the applicable Seller; or (ii) in the case of an Intervening Assignment where a public recording office retains the original recorded Intervening Assignment
of Mortgage or in the case where an Intervening Assignment of Mortgage is lost after recordation in a public recording office, a copy of such Intervening Assignment of Mortgage certified by such public recording office to be a true and complete copy
of the original recorded Intervening Assignment of Mortgage. 
  
 (vii) The original PMI Policy or certificate of insurance, where required pursuant to the Agreement. 
  
 (viii) The original mortgagee policy of title insurance in the form required by the Agreement or, if the original lender’s title
insurance policy has not been issued, the preliminary report or irrevocable binder or commitment to issue the same. 
  
 (ix) Any security agreement, chattel mortgage or equivalent executed in connection with the Mortgage. 
  
 (x) For each Mortgage Loan which is secured by a residential
long-term lease, if any, a copy of the lease with evidence of recording indicated thereon, or, if the lease is in the process of being recorded, a photocopy of the lease, certified by an officer of the respective prior owner of such Mortgage Loan or
by the applicable title insurance company, closing/settlement/escrow agent or company or closing attorney to be a true and correct copy of the lease transmitted for recordation. 
  
 (g) With respect to each Mortgage Loan, the Mortgage File shall include each of the following items to the extent required
in the Underwriting Guidelines: 
  
 (i) The
original hazard insurance policy and, if required by law, flood insurance policy. 
  
 (ii) Fully executed residential loan application. 
  
 (iii) Fully executed Mortgage Loan closing statement (i.e, a Form HUD-1) and any other
truth-in-lending or real estate settlement procedure forms required by law. 
  
 (iv) Verification of employment and income (if required pursuant to the Underwriting Guidelines). 
  
 (v) Verification of acceptable evidence of source and amount of down payment. 
  

 B-3 

 (vi) Credit report on the Mortgagor. 
  
 (vii) Residential appraisal report. 
  
 (viii) Photograph of the Mortgaged Property. 
  
 (ix) Survey of the Mortgaged Property, if required by the
title company or applicable law. 
  
 (x) Copy of
each instrument necessary to complete identification of any exception set forth in the exception schedule in the title policy (i.e., map or plat, restrictions, easements, sewer agreements, home association declarations, etc.). 
  
 (xi) All fully executed required disclosure statements
required by state and federal law. 
  
 (xii) If
applicable, termite report, structural engineer’s report, water portability and septic certification. 
  
 (xiii) Sales contract, if applicable. 
  
 (xiv) Evidence of payment of taxes and insurance premiums, insurance claim files, correspondence, current and historical computerized data
files, and all other processing, underwriting and closing papers and records which are customarily contained in a mortgage file and which are required to document the Mortgage Loan or to service the Mortgage Loan. 
  
 (xv) Amortization schedule, if available. 
  
 (xvi) Payment history for any Mortgage Loan that has been
closed for more than 90 days. 
  
 (xvii) Fully
executed power of attorney, if applicable. 
  
 In the event of a delay by the
public recording office in returning any recorded document, the applicable Seller shall deliver to the Custodian, within 180 days of the Closing Date, an Officer’s Certificate which shall (i) identify the recorded document, (ii) state that the
recorded document has not been delivered to the Custodian due solely to a delay caused by the public recording office, (iii) state the amount of time generally required by the applicable recording office to record and return a document submitted for
recordation, and (iv) specify the date the applicable recorded document will be delivered to the Custodian. The applicable Seller shall be required to deliver to the Custodian the applicable recorded document by the date specified in (iv) above. An
extension of the date specified in (iv) above may be requested form the Custodian, which consent shall not be unreasonably withheld. 
  

 B-4 

 EXHIBIT C 
  

FORM OF LOST NOTE AFFIDAVIT 
  
 I,
                                        
        , being duly sworn, do hereby state under oath that: 
  

	1.	I, as
                                        
of
                                        
         (the “Company”), am authorized to make this Affidavit on behalf of the Company. 

  

	2.	The Company received the following described mortgage note (the “Note”): 

  
 Loan No.: 
 Mortgagor(s): 
 Original Principal Amount: 
  

from the Mortgagor(s) to secure a Deed of Trust/Mortgage (the “Deed of Trust/Mortgage”) dated
                             from the Mortgagor(s) to the Company. 
  

	3.	The Company represents and warrants that it has not canceled, altered, assigned, or hypothecated the Note. 

  

	4.	The original Note, a true and correct copy of which is attached hereto, was not located after a thorough and diligent search, and based thereon, the Company declares the Note lost.

  

	5.	This Affidavit is intended to be relied on by the Indenture Trustee and its successors and assigns. 

  

	6.	The Company has assigned all of its right, title and interest in the Note and the Deed of Trust/Mortgage to the Indenture Trustee and agrees immediately and without further
consideration to surrender the original Note to the Indenture Trustee or its successor and assigns if such original Note ever comes into the Company’s possession, custody, or power. 

  

	7.	The Company further agrees to indemnify and hold harmless the Indenture Trustee and its successors and assigns from any and all loss, liability, costs, damages, reasonable
attorneys’ fees and expenses without limitation in connection with or arising out of the representations, warranties, and agreements made in this Affidavit and any claim of any nature made by any entity with respect to the Note.

  

	8.	The Company agrees and acknowledges that this Affidavit may be presented as evidence of the Note, whether in any proceeding or action with respect thereto or otherwise, and hereby
authorizes such use of this Affidavit. 

  

 C-1 

	9.	The representations, warranties, and agreements herein shall bind the undersigned and its successors and assigns, and shall inure to the benefit of the Indenture Trustee and its
successors and assigns. 

  
 EXECUTED THIS
             day of                     , 200   on behalf
of                     . 
  

			
	By:	 	  

	 Its:
	 	 

  

			
	STATE OF                                 	 	)
	 	 	)  ss:
	COUNTY OF                             	 	)

  
 On the
         day of                     ,
            , before me,
                                , a notary public in and for said State,
personally appeared
                                        ,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by
his/her signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. 
  
 WITNESS my hand and official seal. 
  

	
	  

 Notary Public

  
 My Commission Expires:
                                 
  

 C-2 

 EXHIBIT D 
  

FORM OF REQUEST FOR RELEASE 
  

 D-1 

 EXHIBIT E 
  

FORM OF MONTHLY REMITTANCE ADVICE 
  
 DATA FIELDS: 
  
 Deal Name 
 Investor_ID 
 Category_ID 
 Servicer loan number 
 Investor Loan # 
 Origin 
 Beginning schedule 100% P&I 
 Beginning
scheduled note rate 
 Beginning total scheduled servicer fee rate 
 Beginning Security balance 
 Beginning part
UPB 
 Ending due date 
 Ending
100% P&I 
 Ending note rate 
 Ending total scheduled servicer fee rate 
 Ending total scheduled servicer fee amount 
 Ending scheduled servicing fee rate 
 Scheduled servicing fee amount 
 Ending LPMI fee rate 
 LPMI fee amount 
 Ending DAD fee rate 
 DAD fee amount 
 DAD fee change 
 Ending Security balance 
 Ending part UPB

 Ending 100% UPB 
 PIF date

 PIF Principal Amount 
 PIF Net
Interest Paid 
 Principal 
 Curtailment 
 Curtailment Adj 
 Principal remitted 
 Interest remitted 
 Total remittance 
 Interest Only Indicator 
 Interest Only Period Ending Date 
 Stop
Advance Indicator 
  

 E-1 

 Prepayment Penalty 
 REO Loss 
 Comment 
  

REMITTANCE SUMMARY SHEET SHOULD INCLUDE FOLLOWING: 
  
 Beginning Scheduled UPB Balance 
 Ending
Scheduled UPB balance 
 Scheduled Principal remitted 
 Scheduled Interest remitted 
 Unscheduled Principal remitted (curtailments, adjustments, payoffs) 

Non Cash Liquidation 
 Prepayment Penalties

 3rd Party Receivables 
 Compensation Interest 
 Realized Loss 
 Total Service Fees retained 
  

 E-2 

 EXHIBIT F 
  

STANDARD LAYOUT FOR MONTHLY DEFAULTED LOAN REPORT 
  
 Servicer Loan Number 
 Investor Loan Number 
 Borrower Last Name 
 Due Date 
 Status Code 
 FC Start Date 
 FC end date 
 FC Sale Date 
 BK Chapter 
 BK Start Date 
 BK End Date 
 BK Post Petition Due Date 
 BK Case # 
 REO Start Date 
 REO Sale Date 
 Comment 
  

 F-1 

 EXHIBIT G 
  

FORM OF SUBSEQUENT TRANSFER AGREEMENTS 
  
  

 G-1 

 EXHIBIT H 
  

FORM OF SARBANES-OXLEY SUPPORTING CERTIFICATIONS 
  
 (a) On or before March 15th of each year, commencing with March 200_, or at any other time upon 30 days written request from the Depositor, an officer of the Securities Administrator shall execute and deliver an Officer’s Certificate to the Depositor
certifying as to the following matters: 
  

	 	(i)	The Securities Administrator has reviewed the annual report on Form 10-K for the fiscal year 200_, and all reports on Form 8-K containing distribution reports filed in respect of
periods included in the year covered by that annual report, relating to the above-referenced trust; 

  

	 	(ii)	Based solely upon the information provided to it by the Servicer, the information set forth in the reports referenced in (i) above does not contain any untrue statement of material
fact; and 

  

	 	(iii)	Based on its knowledge, the distribution information required to be provided by the Securities Administrator under the Transfer and Servicing Agreement is included in these reports.

  
 (b) On or before March 15th of each year, commencing with March 200_, or at any other time upon 30 days written request from the Depositor, an officer of
the Master Servicer shall execute and deliver an Officer’s Certificate to the Depositor certifying as to the following matters: 
  

	 	(i)	The Master Servicer has reviewed the information required to be provided to the Depositor by the Master Servicer pursuant to the Transfer and Servicing Agreement (the
“Servicing Information”); 

  

	 	(ii)	Based on its knowledge, the Servicing Information, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading as of the last day of the period covered by the annual report on Form 10-K for the fiscal year 200_ (the “Annual Report”);

  

	 	(iii)	Based on its knowledge, the Servicing Information required to be provided to the Depositor by the Master Servicer has been provided as required under the Transfer and Servicing
Agreement; 

  

	 	(iv)	Based upon its knowledge, and except as disclosed by written notice to the Depositor or in the annual compliance statement required or certified public accountant’s report
required to be delivered to the Depositor in accordance with the terms of the Transfer and Servicing Agreement, the Master Servicer has, for the period covered by the Annual Report, fulfilled its obligations under the Transfer and Servicing
Agreement; 

  

 H-1 

	 	(v)	Based upon its knowledge, and except as disclosed by written notice to the Depositor or in the annual compliance statement or certified public accountant’s report required to
be delivered to the Depositor in accordance with the terms of the Transfer and Servicing Agreement, the Servicer has, for the period covered by the Annual Report, fulfilled its obligations under the Transfer and Servicing Agreement; and

  

	 	(vi)	The Master Servicer has disclosed to the Depositor all significant deficiencies relating to the compliance by the Servicer with the minimum servicing standards in accordance with a
review conducted in compliance with the Uniform Single Attestation Program for Mortgage Bankers or similar procedure, as set forth in the Transfer and Servicing Agreement. 

  

 H-2 

 EXHIBIT I 
  

CREDIT REPORTING PROCEDURE 
  
 “Full-file” reporting requires that the Servicer submit a monthly report to each of the credit repositories to describe the exact status for each Mortgage
Loan.1 The status reported generally should be the one in effect as of the last business day of each month.

  
 The Servicer may, however, use a slightly later cut-off date — for
example, at the and of the first week of a month — to assure that payment corrections, returned checks, and other adjustments related to the previous month’s activity can be appropriately reflected in their report for that month. Statuses
that must be reported for any given mortgage include the following: new origination, current, delinquent (30-, 60-, 90-days, etc.), foreclosed, and charged-off. (The credit repositories will provide the applicable codes for reporting these statuses
to them.) A listing of each of the major repositories to which “full-file” status reports must be sent is attached. 
  
 The Servicer is responsible for the complete and accurate reporting of mortgage status information to the repositories and for resolving any disputes that arise about the
information they report. The Servicer must respond promptly to any inquiries from mortgagors regarding specific mortgage status information about them that was reported to the credit repositories. 
  

	1	Based upon Fannie Mae Guide Announcement 95-19. 

  

 I-1 

 Major Credit Repositories 
  
 A “full-file” status report for each Mortgage Loan serviced for Fannie Mae must be sent to the following repositories each month:

  

			
	Company	 	Telephone Number
	Consumer Credit Associates, Inc.	 	Call (713) 595-1190, either extension 950
	Threadneedle Street, Suite 200	 	150, 101, or 112, for all inquiries.
	Houston, Texas 77079-2903	 	 
		
	Equifax	 	Members that have an account number may call their local sales representative for all inquiries; lenders that need to set up an account should call (800) 685-5000 and select the customer
assistance option.
		
	 TRW Information Systems & Services
 601 TRW
Parkway
 Allen, Texas 75002
	 	Call (800) 831-5614 for all inquiries, current members should select option 3; lenders that need to set up an account should select Option 4.
		
	 Trans Union Corporation
 555 West Adams
 Chicago, Illinois 60661
	 	Call (312) 258-1818 to get the name of the local bureau to contact about setting up an account or obtaining other information.

 EXHIBIT J 
  

SUBSEQUENT MORTGAGE LOAN CRITERIA 
  
  

 J-1 

 EXHIBIT K 
  

FORM OF INITIAL CERTIFICATION 
  
  

 K-1 

 EXHIBIT L 
  

FORM OF FINAL CERTIFICATION 
  
  

 L-1 

 SCHEDULE A 
  

MORTGAGE LOAN SCHEDULE 
  

 Schedule-A 

 SCHEDULE B 
  

REPRESENTATIONS AND WARRANTIES IN RESPECT OF THE MORTGAGE LOANS 
  

(a) Mortgage Loans as Described. The information set forth in the Mortgage Loan Schedule is complete, true and correct; 
  
 (b) Payments Current. All payments required to be made up to the
related Closing Date for the Mortgage Loan under the terms of the Mortgage Note, other than payments not yet 30 days delinquent, have been made and credited. No payment required under the Mortgage Loan is 30 days or more delinquent nor has any
payment under the Mortgage Loan been 30 days or more delinquent at any time since the origination of the Mortgage Loan; 
  
 (c) No Outstanding Charges. Except for payment defaults of less than 30 days, there are no defaults in complying with the terms of the Mortgage,
and all taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, leasehold payments or ground rents which previously became due and owing have been paid, or an escrow of funds has been established in an amount
sufficient to pay for every such item which remains unpaid and which has been assessed but is not yet due and payable. Neither the Sellers nor the Originator have advanced funds, or induced, solicited or knowingly received any advance of funds by a
party other than the Mortgagor, directly or indirectly, for the payment of any amount required under the Mortgage Loan, except for interest accruing from the date of the Mortgage Note or date of disbursement of the Mortgage Loan proceeds, whichever
is earlier, to the date which precedes by one month the Due Date of the first installment of principal and interest; 
  
 (d) Original Terms Unmodified. The terms of the Mortgage Note and Mortgage have not been impaired, waived, altered or modified in any respect, from
the date of origination except by a written instrument which has been recorded, if necessary to protect the interests of the Depositor, and which has been delivered to the Custodian or to such other Person as the Depositor shall designate in
writing, and the terms of which are reflected in the Mortgage Loan Schedule. No Mortgage Loan has been modified so as to restructure the payment obligations or re-age the Mortgage Loan. The substance of any such waiver, alteration or modification
has been approved by the title insurer, if any, to the extent required by the policy, and its terms are reflected on the Mortgage Loan Schedule, if applicable. No Mortgagor has been released, in whole or in part, except in connection with an
assumption agreement, approved by the issuer of the title insurer, to the extent required by the policy, and which assumption agreement is part of the Mortgage File delivered to the Custodian or to such other Person as the Depositor shall designate
in writing and the terms of which are reflected in the Mortgage Loan Schedule; 
  
 (e) No Defenses. The Mortgage Loan is not subject to any right of rescission, set-off, counterclaim or defense, including without limitation the defense of usury, nor will the operation of any of the terms of
the Mortgage Note or the Mortgage, or the exercise of any right thereunder, render either the Mortgage Note or the Mortgage unenforceable, in whole or in part, or subject to any right of rescission, set-off, counterclaim or defense, including
without limitation the defense of usury, and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto, and no Mortgagor was a debtor in any state or federal bankruptcy or insolvency proceeding at, or
subsequent to, the time the Mortgage Loan was originated; 
  

 Schedule-B 

 (f) Hazard Insurance. Pursuant to the terms of the Mortgage, all buildings or other improvements
upon the Mortgaged Property are insured by a generally acceptable insurer against loss by fire, hazards of extended coverage and such other hazards as are customary in the area where the Mortgaged Property is located, in an amount which is at least
equal to the lesser of (i) the maximum insurable value of the improvements securing such Mortgage Loan and (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 or the loss payee from becoming a co-insurer. If required by the National Flood Insurance Act of 1968, as amended, each Mortgage Loan is covered by a flood insurance policy meeting the requirements of the current
guidelines of the Federal Insurance Administration as in effect with a generally acceptable insurance carrier rated A:VI or better in Best’s in an amount representing coverage equal to the lesser of (i) the minimum amount required, under the
terms of coverage, to compensate for any damage or loss on a replacement cost basis (or the unpaid balance of the mortgage if replacement cost coverage is not available for the type of building insured) and (ii) the maximum amount of insurance which
is available under the Flood Disaster Protection Act of 1973, as amended. All individual insurance policies contain a standard mortgagee clause naming either Seller and its successors and assigns as mortgagee, and all premiums thereon have been paid
and such policies may not be reduced, terminated or cancelled without 30 days’ prior written notice to the mortgagee. The Mortgage obligates the Mortgagor thereunder to maintain the hazard insurance policy at the Mortgagor’s cost and
expense, and on the Mortgagor’s failure to do so, authorizes the holder of the Mortgage to obtain and maintain such insurance at such Mortgagor’s cost and expense, and to seek reimbursement therefor from the Mortgagor. Where required by
state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or
any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer, is in full force and effect, and will be in full force and effect and inure to
the benefit of the Trust upon the consummation of the transactions contemplated by this Agreement. The Sellers and the Originator have not engaged in and have no knowledge of the Mortgagor’s or Servicer’s having engaged in, any act or
omission which would impair the coverage of any such policy, the benefits of the endorsement provided for herein, or the validity and binding effect of such policy, including, without limitation, no unlawful fee, commission, kickback or other
unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other person or entity, and no such unlawful items have been received, retained or realized by the Sellers or the Originator;

  
 (g) Compliance with Applicable Laws. Any and all
requirements of any federal, state or local law including, without limitation, usury, truth-in-lending, real estate settlement procedures, consumer credit protection, equal credit opportunity, disclosure or unfair and deceptive practices laws
applicable to the Mortgage Loan have been complied with, the consummation of the transactions contemplated hereby will not involve the violation of any such laws or regulations. Each Seller and the Originator shall maintain in their respective
possession, available for the Master Servicer’s inspection, and shall deliver to the Depositor upon demand, evidence of compliance with all such requirements; 
  

 Schedule-B 

 (h) No Satisfaction of Mortgage. The Mortgage has not been satisfied, canceled, subordinated or
rescinded, in whole or in part, and the Mortgaged Property has not been released from the lien of the Mortgage, in whole or in part, nor has any instrument been executed that would effect any such release, cancellation, subordination or rescission.
Neither the Sellers nor the Originator have 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. Neither the Sellers nor the Originator have
waived any default resulting from any action or inaction by the Mortgagor; 
  
 (i) Location and Type of Mortgaged Property. The Mortgaged Property is a fee simple property located in the state identified in the Mortgage Loan Schedule except that with respect to real property located in
jurisdictions in which the use of leasehold estates for residential properties is a widely-accepted practice, the Mortgaged Property may be a leasehold estate and consists of a single parcel of real property with a detached single family residence
erected thereon, or a two- to four-family dwelling, or an individual residential condominium unit in a low-rise condominium project, or an individual unit in a planned unit development and that no residence or dwelling is (i) a mobile home or (ii) a
manufactured home. As of the date of origination, no portion of the Mortgaged Property was used for commercial purposes, and since the date of origination, no portion of the Mortgaged Property has been used for commercial purposes; provided,
however, that Mortgaged Properties which contain a home office shall not be considered as being used for commercial purposes as long as the Mortgaged Property has not been altered for commercial purposes and is not storing any chemicals or
raw materials other than those commonly used for homeowner repair, maintenance and/or household purposes; 
  
 (j) Valid First or Second Lien. Each Mortgage is a valid and subsisting first or second lien (as applicable) of record on a single parcel of real
estate constituting the Mortgaged Property, including all buildings and improvements on the Mortgaged Property and all installations and mechanical, electrical, plumbing, heating and air conditioning systems located in or annexed to such buildings,
and all additions, alterations and replacements made at any time, with respect to the related Mortgage Loan, which exceptions are generally acceptable to prudent mortgage lending companies, and such other exceptions to which similar properties are
commonly subject and which do not individually, or in the aggregate, materially and adversely affect the benefits of the security intended to be provided by such Mortgage. The lien of the Mortgage is subject only to: 
  
 (i) the lien of current real property taxes and assessments
not yet due and payable; 
  
 (ii) covenants,
conditions and restrictions, rights of way, easements and other matters of the public record as of the date of recording acceptable to prudent mortgage lending institutions generally and specifically referred to in the lender’s title insurance
policy delivered to the Originator of the Mortgage Loan and (a) specifically referred to or otherwise considered in the appraisal made for the Originator of the Mortgage Loan or (b) which do not adversely affect the Appraised Value of the Mortgaged
Property set forth in such appraisal; 
  

 Schedule-B 

 (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 the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property; and 
  
 (iv) with respect to Second Lien Mortgage Loans, the lien of the first mortgage on the Mortgaged Property.

  
 Any security agreement, chattel mortgage or equivalent document related to and
delivered in connection with the Mortgage Loan establishes and creates a valid, subsisting, enforceable and perfected (A) first lien and first priority security interest with respect to each first lien mortgage loan, or (B) second lien and second
priority security interest with respect to each Second Lien Mortgage Loan, in either case, on the property described therein and the applicable Seller has full right to sell and assign the same to the Depositor; 
  
 (k) Validity of Mortgage Documents. The Mortgage Note and the Mortgage
and any other agreement executed and delivered by a Mortgagor in connection with a Mortgage Loan are genuine, and each is the legal, valid and binding obligation of the maker thereof enforceable in accordance with its terms. All parties to the
Mortgage Note, the Mortgage and any other such related agreement had legal capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage Note, the Mortgage and any such agreement, and the Mortgage Note, the Mortgage and any other
such related agreement have been duly and properly executed by other such related parties. The documents, instruments and agreements submitted for loan underwriting were not falsified and contain no untrue statement of material fact or omit to state
a material fact required to be stated therein or necessary to make the information and statements therein not misleading. No fraud, error, omission, misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan has taken place
on the part of any Person, including without limitation, the Mortgagor, any appraiser, any builder or developer, or any other party involved in the origination or servicing of the Mortgage Loan. 
  
 (l) Full Disbursement of Proceeds. The Mortgage Loan has been closed
and the proceeds of the Mortgage Loan have been fully disbursed and there is no requirement for future advances thereunder, and any and all requirements as to completion of any on-site or off-site improvement and as to disbursements of any escrow
funds therefor have been complied with. All costs, fees and expenses incurred in making or closing the Mortgage Loan and the recording of the Mortgage were paid, and the Mortgagor is not entitled to any refund of any amounts paid or due under the
Mortgage Note or Mortgage; 
  
 (m) Ownership. The
applicable Seller is the sole owner of record and holder of the Mortgage Loan and the indebtedness evidenced by each Mortgage Note and upon the sale of the Mortgage Loans to the Depositor. The Mortgage Loan is not assigned or pledged, and such
Seller has good, indefeasible and marketable title thereto, and has full right to transfer and sell the Mortgage Loan to the Depositor free and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security
interest, and has full right and authority subject to no interest or participation of, or agreement with, any other party, to sell and assign each Mortgage Loan pursuant to this Agreement and following the sale of each Mortgage Loan, the Depositor
will own such Mortgage Loan free and clear of any encumbrance, equity, participation 
  

 Schedule-B 

 interest, lien, pledge, charge, claim or security interest. The applicable Seller intends to relinquish all rights to
possess, control and monitor the related Mortgage Loan. After the related Closing Date, the applicable Seller will have no right to modify or alter the terms of the sale of any Mortgage Loan and such Seller and the Originator will have no obligation
or right to repurchase such Mortgage Loan or substitute another Mortgage Loan, except as provided in this Agreement; 
  
 (n) Doing Business. All parties which have had any interest in the Mortgage Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or,
during the period in which they held and disposed of such interest, were) (1) in compliance with any and all applicable licensing requirements of the laws of the state wherein the Mortgaged Property is located, and (2) (i) organized under the laws
of such state, (ii) qualified to do business in such state, or (iii) a federal savings and loan association, a savings bank or a national bank having a principal office in such state, or (3) not doing business in such state; 
  
 (o) LTV or CLTV. No Mortgage Loan has an LTV or CLTV greater than
100%; 
  
 (p) Title Insurance. The Mortgage Loan is covered
by an ALTA lender’s title insurance policy, or with respect to any Mortgage Loan for which the related Mortgaged Property is located in California a CLTA lender’s title insurance policy, and each such title insurance policy is issued by a
title insurer and qualified to do business in the jurisdiction where the Mortgaged Property is located, insuring the applicable Seller, its successors and assigns, as to the first priority lien (with respect to first lien Mortgage Loans) or second
priority lien (with respect to Second Lien Mortgage Loans) of the Mortgage in the original principal amount of the Mortgage Loan, subject only to the exceptions contained in subclause (i), and in the case of Adjustable Rate Mortgage Loans, against
any loss by reason of the invalidity or unenforceability of the lien resulting from the provisions of the Mortgage providing for adjustment to the Mortgage Interest Rate and Scheduled Monthly Payment. Where required by state law or regulation, the
Mortgagor has been given the opportunity to choose the carrier of the required mortgage title insurance. Additionally, such lender’s title insurance policy affirmatively insures ingress and egress, and against encroachments by or upon the
Mortgaged Property or any interest therein. The title policy does not contain any special exceptions (other than the standard exclusions) for zoning and uses and has been marked to delete the standard survey exception or to replace the standard
survey exception with a specific survey reading. The applicable Seller, its successor and assigns, are the sole insureds of such lender’s title insurance policy, and such lender’s title insurance policy is valid and remains in full force
and effect and will be in force and effect upon the consummation of the transactions contemplated by this Agreement. No claims are pending under such lender’s title insurance policy, and no prior holder of the related Mortgage, including the
applicable Seller, has done, by act or omission, anything which would impair the coverage of such lender’s title insurance policy, including without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of
any kind has been or will be received, retained or realized by any attorney, firm or other person or entity, and no such unlawful items have been received, retained or realized by the applicable Seller; 
  
 (q) No Defaults. There is no default, breach, violation or event which
would permit acceleration existing under the Mortgage or the Mortgage Note and no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a 
  

 Schedule-B 

 default, breach, violation or event which would permit acceleration, and neither of the Sellers nor any of their
affiliates nor any of their respective predecessors, have waived any default, breach, violation or event which would permit acceleration. With respect to each Second Lien Mortgage Loan, (i) the prior mortgage is in full force and effect, (ii) there
is no default, breach, violation or event of acceleration existing under such prior mortgage or the related mortgage note, (iii) no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute
a default, breach, violation or event of acceleration thereunder, and either (A) the prior mortgage contains a provision which allows or (B) applicable law requires, the mortgagee under the Second Lien Mortgage Loan to receive notice of, and affords
such mortgagee an opportunity to cure any default by payment in full or otherwise under the prior mortgage; 
  
 (r) No Mechanics’ Liens. There are no mechanics’ or similar liens or claims which have been filed for work, labor or material (and no
rights are outstanding that under law could give rise to such liens) affecting the related Mortgaged Property which are or may be liens prior to, or equal or coordinate with, the lien of the related Mortgage; 
  
 (s) Location of Improvements; No Encroachments. All improvements which
were considered in determining the Appraised Value of the Mortgaged Property lay wholly within the boundaries and building restriction lines of the Mortgaged Property, and no improvements on adjoining properties encroach upon the Mortgaged Property.
No improvement located on or being part of the Mortgaged Property is in violation of any applicable zoning law or regulation; 
  
 (t) Origination; Payment Terms. 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, savings and loan association, a savings bank, a commercial bank, credit union, insurance company or other similar institution which is supervised and examined by a federal or state authority. The
documents, instruments and agreements submitted for loan underwriting were not falsified and contain no untrue statement of material fact or omit to state a material fact required to be stated therein or necessary to make the information and
statements therein not misleading. No Mortgage Loan contains terms or provisions which would result in negative amortization. Principal payments on the Mortgage Loan commenced no more than sixty days after funds were disbursed in connection with the
Mortgage Loan. The Mortgage Rate as well as the lifetime rate cap and the periodic cap are as set forth on the Mortgage Loan Schedule. The Mortgage Note is payable in equal monthly installments of principal and interest, which installments of
interest, with respect to Adjustable Rate Mortgage Loans, are subject to change due to the adjustments to the Mortgage Rate on each Adjustment Date, with interest calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by
the stated maturity date, over an original term of not more than thirty years from commencement of amortization. There are no Convertible Mortgage Loans which contain a provision allowing the Mortgagor to convert the Mortgage Note from an Adjustable
Rate Mortgage Loan to a Fixed Rate Mortgage Loan. No Mortgage Loan is a simple interest mortgage loan; 
  
 (u) Customary Provisions. The Mortgage contains customary and enforceable provisions such as to render the rights and remedies of the holder
thereof adequate for the realization against the Mortgaged Property of the benefits of the security provided thereby, including, (i) in the case of a Mortgage designated as a Deed of Trust, by trustee’s sale, and 
  

 Schedule-B 

 (ii) otherwise by judicial foreclosure. Upon default by a Mortgagor on a Mortgage Loan and foreclosure on, or
trustee’s sale of, the Mortgaged Property pursuant to the proper procedures, the holder of the Mortgage Loan will be able to deliver good and merchantable title to the Mortgaged Property. There is no homestead or other exemption available to a
Mortgagor which would interfere with the right to sell the Mortgaged Property at a trustee’s sale or the right to foreclose the Mortgage, subject to applicable federal and state laws and judicial precedent with respect to bankruptcy and right
of redemption or similar law; 
  
 (v) Conformance with
Underwriting Guidelines. The Mortgage Loan was underwritten in accordance with the Underwriting Guidelines in effect as of the date of origination of such Mortgage Loan. The Mortgage Note and Mortgage are on forms acceptable to Freddie Mac or
Fannie Mae and the applicable Seller has not made any representations to a Mortgagor that are inconsistent with the mortgage instruments used; 
  
 (w) Occupancy of the Mortgaged Property. As of the related Closing Date the Mortgaged Property is lawfully occupied under applicable law. All
inspections, licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged Property and, with respect to the use and occupancy of the same, including but not limited to certificates of occupancy and
fire underwriting certificates, have been made or obtained from the appropriate authorities; 
  
 (x) No Additional Collateral. The Mortgage Note is not and has not been secured by any collateral except the lien of the corresponding Mortgage and the security interest of any applicable security agreement or
chattel mortgage; 
  
 (y) Deeds of Trust. In the event the
Mortgage constitutes a Deed of Trust, a trustee, authorized and duly qualified under applicable law to serve as such, has been properly designated and currently so serves and is named in the Mortgage, and no fees or expenses are or will become
payable by the Depositor to the trustee under the deed of trust, except in connection with a reconveyance of the Deed of Trust or a trustee’s sale after default by the Mortgagor; 
  
 (z) Acceptable Investment. There are no circumstances or conditions with respect to the Mortgage, the Mortgaged
Property, the Mortgagor, the Mortgage File or the Mortgagor’s credit standing (other than the status of the Mortgage Loan as a subprime mortgage loan) that can reasonably be expected to cause private institutional investors to regard the
Mortgage Loan as an unacceptable investment, cause the Mortgage Loan to become delinquent, or adversely affect the value or marketability of the Mortgage Loan, or cause the Mortgage Loans to prepay during any period materially faster or slower than
the mortgage loans originated by the Originator generally; 
  
 (aa) Delivery of Mortgage Documents. The Mortgage Note, the Mortgage, the Assignment of Mortgage and any other documents required to be delivered under the Custodial Agreement for each Mortgage Loan have been delivered to the
Custodian. The applicable Seller is in possession of a complete, true and accurate Mortgage File in compliance with Exhibit A hereto, except for such documents the originals of which have been delivered to the Custodian; 
  

 Schedule-B 

 (bb) Condominiums/Planned Unit Developments. If the Mortgaged Property is a condominium unit or a
planned unit development (other than a de minimis planned unit development), such condominium or planned unit development project is acceptable to Seller and underwritten in accordance with the Underwriting Guidelines; 
  
 (cc) Transfer of Mortgage Loans. The Assignment of Mortgage with
respect to each Mortgage Loan is in recordable form and is acceptable for recording under the laws of the jurisdiction in which the Mortgaged Property is located. The transfer, assignment and conveyance of the Mortgage Notes and the Mortgages by the
applicable Seller is not subject to the bulk transfer or similar statutory provisions in effect in any applicable jurisdiction; 
  
 (dd) Due-On-Sale. The Mortgage contains an enforceable provision (except as such enforcement may be effected by bankruptcy and insolvency laws or
by general principals of equity) for the acceleration of the payment of the unpaid principal balance of the Mortgage Loan in the event that the Mortgaged Property is sold or transferred without the prior written consent of the mortgagee thereunder,
and such provision is enforceable; 
  
 (ee) Assumability.
None of the Mortgage Loans, by their terms, are assumable; 
  
 (ff) No Buydown Provisions; No Graduated Payments or Contingent Interests. The Mortgage Loan does not contain provisions pursuant to which Scheduled Monthly Payments are paid or partially paid with funds deposited in any separate
account established by the applicable Seller, the Mortgagor, or anyone on behalf of the Mortgagor, or paid by any source other than the Mortgagor nor does it contain any other similar provisions which may constitute a “buydown” provision.
The Mortgage Loan is not a graduated payment mortgage loan and the Mortgage Loan does not have a shared appreciation or other contingent interest feature; 
  
 (gg) Consolidation of Future Advances. Any future advances made to the Mortgagor prior to the Cut-off Date have been consolidated with the
outstanding principal amount secured by the Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and single repayment term. The lien of the Mortgage securing the consolidated principal amount is expressly insured
as having first or second lien priority by a title insurance policy, an endorsement to the policy insuring the mortgagee’s consolidated interest or by other title evidence. The consolidated principal amount does not exceed the original
principal amount of the Mortgage Loan; 
  
 (hh) Mortgaged
Property Undamaged; No Condemnation Proceedings. There is no proceeding pending or threatened for the total or partial condemnation of the Mortgaged Property. As of the related Closing Date, the Mortgaged Property is undamaged by waste, fire,
earthquake or earth movement, windstorm, flood, tornado or other casualty so as to affect adversely the value of the Mortgaged Property as security for the Mortgage Loan or the use for which the premises were intended and each Mortgaged Property is
inhabitable under applicable state and local laws; 
  
 (ii)
Collection Practices; Escrow Deposits; Mortgage Rate Adjustments. The origination, servicing and collection practices used by the applicable Seller and its designated servicer with respect to the Mortgage Loan have been in all respects in
compliance with 
  

 Schedule-B 

 Accepted Servicing Practices, applicable laws and regulations, and have been in all respects legal and proper and prudent
in the mortgage origination and servicing business. With respect to escrow deposits and Escrow Payments, all such payments are in the possession of, or under the control of, the applicable Seller or its designated servicer and there exist no
deficiencies in connection therewith for which customary arrangements for repayment thereof have not been made. All Escrow Payments have been collected in full compliance with state and federal law and the provisions of the related Mortgage Note and
Mortgage. An escrow of funds is not prohibited by applicable law and has been established in an amount sufficient to pay for every item that remains unpaid and has been assessed but is not yet due and payable. No escrow deposits or Escrow Payments
or other charges or payments due to the applicable Seller have been capitalized under the Mortgage or the Mortgage Note. All Mortgage Rate adjustments have been made in strict compliance with state and federal law and the terms of the related
Mortgage and Mortgage Note on the related Adjustment Date. If, pursuant to the terms of the Mortgage Note, another Index was selected for determining the Mortgage Rate, the same Index was used with respect to each Mortgage Note which required a new
index to be selected, and such selection did not conflict with the terms of the related Mortgage Note. The applicable Seller executed and delivered any and all notices required under applicable law and the terms of the related Mortgage Note and
Mortgage regarding the Mortgage Rate and the Scheduled Monthly Payment adjustments. Any interest required to be paid pursuant to state, federal and local law has been properly paid and credited; 
  
 (jj) Conversion to Fixed Interest Rate. With respect to Adjustable
Rate Mortgage Loans, the Mortgage Loan is not a Convertible Mortgage Loan; 
  
 (kk) No Violation of Environmental Laws. To the best of the Originator’s knowledge, the Mortgaged Property is free from any and all toxic or hazardous substances and there exists no violation of any local,
state or federal environmental law, rule or regulation. 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; to the best of the
Originator’s knowledge, there is no violation of any environmental law, rule or regulation with respect to the Mortgage Property; and nothing further remains to be done to satisfy in full all requirements of each such law, rule or regulation
constituting a prerequisite to use and enjoyment of said property; 
  
 (ll) Servicemembers Civil Relief Act. The Mortgagor has not notified the applicable Seller or the Originator, and the applicable Seller and the Originator have no knowledge of any relief requested or allowed to the Mortgagor under
the Servicemembers Civil Relief Act; 
  
 (mm) Appraisal.
The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to the funding of the Mortgage Loan and prepared by a qualified appraiser, duly appointed by the related Originator, who had no interest, direct or indirect in
the Mortgaged Property or in any loan made on the security thereof, and whose compensation is not affected by the approval or disapproval of the Mortgage Loan, and the appraisal and appraiser both satisfy the requirements of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 and the regulations promulgated thereunder, all as in effect on the date the Mortgage Loan was originated; 
  

 Schedule-B 

 (nn) Disclosure Materials. The Mortgagor has received all disclosure materials required by, and
the Originator has complied with, all applicable law with respect to the making of the Mortgage Loans; 
  
 (oo) Construction or Rehabilitation of Mortgaged Property. No Mortgage Loan was made in connection with the construction or rehabilitation of a
Mortgaged Property or facilitating the trade-in or exchange of a Mortgaged Property; 
  
 (pp) Value of Mortgaged Property. The applicable Seller has no knowledge of any circumstances existing that could reasonably be expected to adversely affect the value or the marketability of any Mortgaged
Property or Mortgage Loan or to cause the Mortgage Loans to prepay during any period materially faster or slower than similar mortgage loans held by the applicable Seller generally secured by properties in the same geographic area as the related
Mortgaged Property; 
  
 (qq) No Defense to Insurance
Coverage. The applicable Seller and the Originator have caused or will cause to be performed any and all acts required to preserve the rights and remedies of the Depositor in any insurance policies applicable to the Mortgage Loans including,
without limitation, any necessary notifications of insurers, assignments of policies or interests therein, and establishments of coinsured, joint loss payee and mortgagee rights in favor of the Depositor. No action has been taken or failed to be
taken, no event has occurred and no state of facts exists or has existed on or prior to the related Closing Date (whether or not known to the applicable Seller on or prior to such date) which has resulted or will result in an exclusion from, denial
of, or defense to coverage under any applicable, special hazard insurance policy, or bankruptcy bond (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 applicable Seller, the related Mortgagor or any party involved in the application for such
coverage, including the appraisal, plans and specifications and other exhibits or documents submitted therewith to the insurer under such insurance policy, or for any other reason under such coverage, but not including the failure of such insurer to
pay by reason of such insurer’s breach of such insurance policy or such insurer’s financial inability to pay; 
  
 (rr) Escrow Analysis. With respect to each Mortgage with an Escrow Account, the Originator has within the last twelve months (unless such Mortgage
was originated within such twelve-month period) analyzed the required Escrow Payments for each Mortgage and adjusted the amount of such payments so that, assuming all required payments are timely made, any deficiency will be eliminated on or before
the first anniversary of such analysis, or any overage will be refunded to the Mortgagor, in accordance with RESPA and any other applicable law; 
  
 (ss) Prior Servicing. Each Mortgage Loan has been serviced in all material respects in compliance with Accepted Servicing Practices; 
  
 (tt) Leaseholds. If the Mortgage Loan is secured by a long-term
residential lease, 
  
 (i) the lessor under the
lease holds a fee simple interest in the land, 
  

 Schedule-B 

 (ii) the terms of such lease expressly permit the mortgaging of the leasehold estate, the
assignment of the lease without the lessor’s consent and the acquisition by the holder of the Mortgage of the rights of the lessee upon foreclosure or assignment in lieu of foreclosure or provide the holder of the Mortgage with substantially
similar protections, 
  
 (iii) the terms of such
lease do not (a) allow the termination thereof upon the lessee’s default without the holder of the Mortgage being entitled to receive written notice of, and opportunity to cure, such default, (b) allow the termination of the lease in the event
of damage or destruction as long as the Mortgage is in existence, (c) prohibit the holder of the Mortgage from being insured (or receiving proceeds of insurance) under the hazard insurance policy or policies relating to the Mortgaged Property or (d)
permit any increase in rent other than pre-established increases set forth in the lease, 
  
 (iv) the original term of such lease is not less than 15 years, 
  
 (v) the term of such lease does not terminate earlier than five years after the maturity date of the
Mortgage Note, and 
  
 (vi) the Mortgaged
Property is located in a jurisdiction in which the use of leasehold estates in transferring ownership in residential properties is a widely accepted practice; 
  

(uu) Prepayment Premium. The Mortgage Loan is subject to a Prepayment Premium as provided in the related Mortgage Note except as set forth on
the Mortgage Loan Schedule. With respect to each Mortgage Loan that has a Prepayment Premium, each such Prepayment Premium is enforceable and will be enforced by the applicable Seller for the benefit of the Depositor, and each Prepayment Premium is
permitted pursuant to federal, state and local law. Each such Prepayment Premium is in an amount less than or equal to the maximum amount permitted under applicable law and no such Prepayment Premium may be imposed for a term in excess of five years
with respect to Mortgage Loans originated prior to October, 1, 2002. With respect to Mortgage Loans originated on or after October 1, 2002, unless indicated otherwise in the Mortgage Loan Schedule, no such Prepayment Premium may be imposed for a
term in excess of three years; 
  
 (vv) Flood Certification
Contract. Each Mortgage Loan is covered by a paid in full, life of loan, flood certification contract and each of these contracts is assignable to the Depositor; 
  
 (ww) Qualified Mortgage. The Mortgage Loan is an obligation (including any participation or certificate of beneficial
ownership therein) which is principally secured by an interest in real property; 
  
 (xx) Regarding the Mortgagor. The Mortgagor is one or more natural persons and/or trustees for an Illinois land trust; 
  

 Schedule-B 

 (yy) Recordation. Each original Mortgage was recorded and, except for those Mortgage Loans subject
to the MERS identification system, all subsequent assignments of the original Mortgage (other than the assignment to the Depositor) have been recorded in the appropriate jurisdictions wherein such recordation is necessary to perfect the lien thereof
as against creditors of the applicable Seller, or is in the process of being recorded; 
  
 (zz) FICO Scores. Each Mortgage Loan has a non-zero FICO score. No Mortgage Loan has a Mortgagor where the FICO score used for underwriting approval was less than 500 as of the related origination date;

  
 (aaa) Compliance with Anti-Money Laundering Laws. Each
Seller and the Originator have complied with all applicable anti-money laundering laws and regulations, including without limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering Laws”); to the extent
applicable to the Sellers as of the related Closing Date, the Sellers have each established an anti-money laundering compliance program as required by the Anti-Money Laundering Laws, conducted the requisite due diligence in connection with the
origination of each Mortgage Loan for purposes of the Anti-Money Laundering Laws, including with respect to the legitimacy of the applicable Mortgagor and the origin of the assets used by the said Mortgagor to purchase the property in question, and
maintain, and will maintain, sufficient information to identify the applicable Mortgagor for purposes of the Anti-Money Laundering Laws; 
  
 (bbb) MERS Designations. With respect to each MERS Designated Mortgage Loan, the applicable Seller has designated the Custodian as the Investor and
no Person is listed as Interim Funder on the MERS® System; 
  
 (ccc) Owner of Record. The applicable Seller is the owner of record of each Mortgage and the indebtedness evidenced by each Mortgage Note, except for the Assignments of Mortgage which have been sent for recording, and upon
recordation the applicable Seller will be the owner of record of each Mortgage and the indebtedness evidenced by each Mortgage Note, and upon the sale of the Mortgage Loans to the Depositor, the applicable Seller will retain the Mortgage Files with
respect thereto in trust only for the purpose of servicing and supervising the servicing of each Mortgage Loan; 
  
 (ddd) Reports. On or prior to the related Closing Date, the applicable Seller has provided the Custodian and the Depositor with a MERS Report
listing the Custodian as the Investor with respect to each MERS Designated Mortgage Loan; 
  
 (eee) Payoffs. No Mortgage Loans have been prepaid in full prior to the related Closing Date; 
  
 (fff) Consent. Either (a) no consent for the Second Lien Mortgage Loan is required by the holder of the related first lien or (b) such consent has
been obtained and is contained in the Mortgage File; and 
  
 (ggg)
Anti-Predatory Lending Representations and Warranties. The Originator hereby represents and warrants with respect to the Mortgage Loans that as of the Closing Date or as of such date specifically provided herein: 
  
 (i) No Mortgage Loan is subject to the requirements of the
Home Ownership and Equity Protection Act of 1994 (“HOEPA”); 
  

 Schedule-B 

 (ii) Each Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all applicable predatory and abusive lending laws; 
  
 (iii) No Mortgage Loan originated on or after March 7, 2003 is a “High Cost Home Loan” as defined in the Georgia Fair Lending
Act, as amended (the “Georgia Act”). No Mortgage Loan subject to the Georgia Act and secured by owner occupied real property or an owner occupied manufactured home located in the State of Georgia was originated (or modified) on or
after October 1, 2002 through and including March 6, 2003; 
  
 (iv) No Mortgage Loan is a “High Cost Home Loan” as defined in New York Banking Law 6-1; 
  
 (v) No Mortgage Loan is a “High-Cost Home Loan” as defined in the Arkansas Home Loan Protection Act effective July 16, 2003 (Act
1340 of 2003); 
  
 (vi) No Mortgage Loan is a
“High-Cost Home Loan” as defined in the Kentucky high-cost home loan statute effective June 24, 2003 (Ky. Rev. Stat. Section 360.100); 
  
 (vii) No Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective November 27, 2003
(N.J.S.A. 46:10B-22 et seq.); 
  
 (viii) No
Mortgage Loan is a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act effective January 1, 2004 (N.M. Stat. Ann. §§ 58-21A-1 et seq.); 
  
 (ix) No Mortgage Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk Home Loan
Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); 
  
 (x) No Mortgage Loan is a “High-Cost Home Mortgage Loan” as defined in the Massachusetts Predatory Home Loan Practices Act, effective November 6, 2004 (Mass. Ann. Laws Ch. 183C); 
  
 (xi) No Mortgage Loan is subject to Ordinance No. 12361
passed by the City of Oakland, California; 
  
 (xii) Each Mortgage Loan originated in the state of Texas pursuant to Article XVI, Section 50(a)(6) of the Texas Constitution has been originated in compliance with the provisions of Article XVI, Section 50(a)(6) of the Texas Constitution,
Texas Civil Statutes and the Texas Finance Code; 
  
 (xiii) No Mortgage Loan is a “High Cost Loan” or “Covered Loan” as defined in Appendix E of S&P’s Glossary for File Format for LEVELS Version 5.6.B; 
  

 Schedule-B 

 (xiv) the Originator has implemented and conducted compliance procedures to determine if
each Mortgage Loan is “high-cost” home loan under the applicable laws and performed a review of the disclosure provided to the related Mortgagor in accordance with such laws and the related Mortgage Note in order to determine that such
Mortgage Loan, if subject to any such law, does not violate any such law; 
  
 (xv) The Originator’s underwriting methodology does not primarily rely on the extent of the Mortgagor’s equity in the collateral as the determining factor in assessing a Mortgagor’s ability to repay the
Mortgage Loan; 
  
 (xvi) With respect to any Mortgage Loan that
contains a provision permitting imposition of a Prepayment Penalty: (i) the Prepayment Penalty is disclosed to the Mortgagor in the loan documents pursuant to applicable state and federal law, and (ii) notwithstanding any state or federal law to the
contrary, the applicable Seller shall not impose such Prepayment Penalty in any instance when the Mortgage Loan is accelerated as the result of the Mortgagor’s default in making the Scheduled Monthly Payments; 
  
 (xvii) No Mortgagor was required to purchase any credit life, disability,
accident or health insurance product as a condition of obtaining the extension of credit. No Mortgagor obtained a prepaid single-premium credit life, disability, accident or health insurance policy in connection with the origination of the Mortgage
Loan. 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; and 
  
 (xviii) All fees and charges (including finance charges) and whether or not
financed, assessed, collected or to be collected in connection with the origination and servicing of each Mortgage Loan have been disclosed in writing to the Mortgagor in accordance with applicable state and federal law and regulation. 

 

 Schedule-B 

 SCHEDULE C 
  

LIBOR FORMULA 
  
 (a) On each LIBOR Determination Date (other than with respect to the initial Accrual Period) the Securities Administrator shall determine LIBOR on the
basis of the offered LIBOR quotations of the Reference Banks as of 11:00 a.m. London time on such LIBOR Determination Date in the following manner: 
  
 (i) If on any LIBOR Determination Date two or more of the Reference Banks provide such offered quotations, LIBOR for the next Interest
Accrual Period will be the arithmetic mean of such offered quotations (rounding such arithmetic mean if necessary to the nearest five decimal places); 
  
 (ii) If on any LIBOR Determination Date only one or none of the Reference Banks provides such offered quotations, LIBOR for the next
Interest Accrual Period will be whichever is the higher of (x) LIBOR as determined on the previous LIBOR Determination Date or (y) the Reserve Interest Rate. The “Reserve Interest Rate” will be either (A) the rate per annum which the
Securities Administrator determines to be the arithmetic mean (rounding such arithmetic mean if necessary to the nearest five decimal places) of the one-month Eurodollar lending rates that New York City banks selected by the Depositor are quoting,
on the relevant LIBOR Determination Date, to the principal London offices of at least two leading banks in the London interbank market or (B) in the event that the Securities Administrator can determine no such arithmetic mean, the lowest one-month
Eurodollar lending rate that the New York City banks selected by the Depositor are quoting on such LIBOR Determination Date to leading European banks; and 
  
 (iii) If on any LIBOR Determination Date the Securities Administrator is required but is unable to determine the Reserve Interest Rate in
the manner provided in paragraph (i) above, LIBOR for the next Interest Accrual Period will be LIBOR as determined on the previous LIBOR Determination Date or, in the case of the first LIBOR Determination Date, the Initial LIBOR Rate. 
  
 (b) The establishment of LIBOR by the Securities Administrator and the
Securities Administrator’s subsequent calculation of the Note Interest Rates applicable to the Notes for the relevant Interest Accrual Period, in the absence of manifest error, will be final and binding. In all cases, the Securities
Administrator may conclusively rely on quotations of LIBOR for the Reference Banks as such quotations appear on the display designated “LIBOR” on the Bloomberg Financial Markets Commodities News. 
  
 (c) If (x) with respect to any LIBOR Determination Date LIBOR is determined
pursuant to clause (b)(ii) above and (y) on the next succeeding LIBOR Determination Date LIBOR will be determined pursuant to such clause (b)(iidi) above, then the Depositor shall select an alternative interest rate index over which the Depositor
has no control that is used for determining Eurodollar lending rates and is calculated and published (or otherwise made available) by an independent third party, and such alternative interest rate index shall constitute LIBOR for all purposes
hereof. 
  

 Schedule-C 

 As used herein: 
  

“LIBOR” means the London interbank offered rate. 
  
 “LIBOR Business Day” means any day on which banks in London, England and New York, New York are open and
conducting transactions in foreign currency and exchange. 
  
 “LIBOR Determination Date” means the second LIBOR Business Day immediately preceding the commencement of each Interest Accrual Period, except with respect to the initial Interest Accrual Period, when it means the second
LIBOR Business Day preceding the Closing Date. 
  
 “Reference Banks” means four leading banks engaged in transactions in Eurodollar deposits in the international Eurocurrency market (a) with an established place of business in London, England, (b) whose quotations appear on
the “Bloomberg Screen LIBOR Index Page” (as described in the definition of LIBOR) on the applicable LIBOR Determination Date, and (c) which have been designated as such by the Depositor and are able and willing to provide such quotations
to the Depositor on each LIBOR Determination Date. The Reference Banks initially shall be Barclay’s plc, Bank of Tokyo, National Westminster Bank and Trust Company and Bankers Trust Company. If any of the initial Reference Banks should be
removed from the Bloomberg Screen LIBOR Index Page or in any other way fail to meet the qualifications of a Reference Bank, the Depositor shall use its best efforts to designate alternate Reference Banks. 
  

 Schedule-C

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