Document:

EXECUTION COPY 

  

AMENDED AND RESTATED TRUST AGREEMENT 

between 

INDYMAC ABS, INC., 

as Depositor,  

WILMINGTON TRUST COMPANY, 

as Owner Trustee  

and 

DEUTSCHE BANK NATIONAL TRUST COMPANY 

as Administrator  

Dated as of December 21, 2006 

           INDYMAC HOME EQUITY MORTGAGE LOAN ASSET-BACKED TRUST, 

SERIES 2006-H4,  

INDYMAC HOME EQUITY MORTGAGE LOAN ASSET-BACKED CERTIFICATES, 

SERIES 2006-H4  

  

 

 

TABLE OF CONTENTS  

	  

	  
	  

	  

	
Page   

	
ARTICLE I   
	
        DEFINITIONS   
	
1   

	  	  
	
Section 1.01   
	
Definitions   
	
1   

	  	  
	
Section 1.02   
	
Other Definitional Provisions   
	
5   

	
ARTICLE II   
	
        ORGANIZATION   
	
6   

	  	  
	
Section 2.01   
	
Name   
	
6   

	  	  
	
Section 2.02   
	
Office   
	
6   

	  	  
	
Section 2.03   
	
Purpose and Powers   
	
6   

	  	  
	
Section 2.04   
	
Appointment of the Owner Trustee   
	
7   

	  	  
	
Section 2.05   
	
Initial Capital Contribution; Declaration of Trust   
	
7   

	  	  
	
Section 2.06   
	
Issuance of Initial Certificates   
	
7   

	  	  
	
Section 2.07   
	
Liability of the Holder of the Certificates   
	
7   

	  	  
	
Section 2.08   
	
Situs of Trust   
	
7   

	  	  
	
Section 2.09   
	
Title to Trust Property   
	
8   

	  	  
	
Section 2.10   
	
Representations and Warranties of the Depositor   
	
8   

	  	  
	
Section 2.11   
	
Designation of REMIC and Interests Therein   
	
9   

	  	  
	
Section 2.12   
	
Designation of Start-up Day   
	
12   

	  	  
	
Section 2.13   
	
REMIC Notes Maturity Date   
	
12   

	  	  
	
Section 2.14   
	
Withholding Taxes   
	
12   

	  	  
	
Section 2.15   
	
Tax Returns   
	
12   

	  	  
	
Section 2.16   
	
Investment Company   
	
13   

	
ARTICLE III   
	
        THE CERTIFICATES AND TRANSFERS OF INTERESTS   
	
13   

	  	  
	
Section 3.01   
	
The Certificates   
	
13   

	  	  
	
Section 3.02   
	
Execution, Authentication and Delivery of the Certificates   
	
14   

	  	  
	
Section 3.03   
	
Registration of and Limitations on Transfers and Exchanges of   
	  

	  

	  
	  

	
the Certificates   
	
14   

	  	  
	
Section 3.04   
	
Lost, Stolen, Mutilated or Destroyed Certificates   
	
18   

	  	  
	
Section 3.05   
	
Persons Deemed Certificateholders   
	
18   

	  	  
	
Section 3.06   
	
Access to List of Certificateholders’ Names and Addresses   
	
19   

	  	  
	
Section 3.07   
	
ERISA Restrictions   
	
19   

	  	  
	
Section 3.08   
	
Maintenance of Office or Agency   
	
19   

	  	  
	
Section 3.09   
	
Certificate Paying Agent   
	
19   

	  	  
	
Section 3.10   
	
Initial Beneficiary   
	
21   

	  	  
	
Section 3.11   
	
Distributions on the Certificates   
	
21   

 

 

TABLE OF CONTENTS 

(continued)  

	  

	  
	  

	  

	
Page   

	
ARTICLE IV   
	
        APPLICATION OF TRUST FUNDS; CERTAIN DUTIES   
	
21   

	  	  
	
Section 4.01   
	
Certificate Account   
	
21   

	  	  
	
Section 4.02   
	
Application of Trust Funds   
	
22   

	  	  
	
Section 4.03   
	
Method of Payment   
	
22   

	  	  
	
Section 4.04   
	
REMIC Related Covenants   
	
22   

	  	  
	
Section 4.05   
	
Segregation of Moneys; No Interest   
	
23   

	
ARTICLE V   
	
        AUTHORITY AND DUTIES OF THE OWNER TRUSTEE;   
	  

	  

	  
	
        ACTION BY CERTIFICATEHOLDERS   
	
24   

	  	  
	
Section 5.01   
	
General Authority   
	
24   

	  	  
	
Section 5.02   
	
General Duties   
	
24   

	  	  
	
Section 5.03   
	
Action Upon Instruction   
	
24   

	  	  
	
Section 5.04   
	
No Duties Except as Specified under Specified Documents or   
	  

	  	  
	  

	
in Instructions   
	
25   

	  	  
	
Section 5.05   
	
Restrictions   
	
26   

	  	  
	
Section 5.06   
	
Prior Notice to the Certificateholders with Respect to Certain   
	  

	  	  
	  

	
Matters   
	
26   

	  	  
	
Section 5.07   
	
Action by the Certificateholders with Respect to Bankruptcy   
	
29   

	  	  
	
Section 5.08   
	
Restrictions on the Certificateholders’ Power   
	
29   

	  	  
	
Section 5.09   
	
Insurer’s Rights Regarding Actions, Proceedings or   
	  

	  

	  
	  

	
Investigations   
	
29   

	
ARTICLE VI   
	
        CONCERNING THE OWNER TRUSTEE   
	
31   

	  	  
	
Section 6.01   
	
Acceptance of Trust and Duties   
	
31   

	  	  
	
Section 6.02   
	
Furnishing of Documents   
	
32   

	  	  
	
Section 6.03   
	
Books and Records   
	
32   

	  	  
	
Section 6.04   
	
Representations and Warranties   
	
32   

	  	  
	
Section 6.05   
	
Reliance; Advice of Counsel   
	
34   

	  	  
	
Section 6.06   
	
Not Acting in Individual Capacity   
	
35   

	  	  
	
Section 6.07   
	
Owner Trustee Not Liable for Certificates or Collateral   
	
35   

	  	  
	
Section 6.08   
	
Owner Trustee May Own Certificates and Notes   
	
35   

	  	  
	
Section 6.09   
	
Licenses   
	
35   

	  	  
	
Section 6.10   
	
Doing Business in Other Jurisdictions   
	
36   

	  	  
	
Section 6.11   
	
Sarbanes-Oxley Act   
	
36   

	
ARTICLE VII   
	
        INDEMNIFICATION AND COMPENSATION   
	
36   

 

2 

 

 

TABLE OF CONTENTS 

(continued)  

    

	  

	  
	  

	  

	
Page   

	  	  
	
Section 7.01   
	
Trust Expenses   
	
36   

	  	  
	
Section 7.02   
	
Indemnification   
	
36   

	  	  
	
Section 7.03   
	
Compensation   
	
37   

	  	  
	
Section 7.04   
	
Lien on Trust Estate   
	
37   

	
ARTICLE VIII   
	
        TERMINATION OF AGREEMENT   
	
37   

	  	  
	
Section 8.01   
	
Termination of Agreement   
	
37   

	  	  
	
Section 8.02   
	
Additional Termination Requirements   
	
38   

	
ARTICLE IX   
	
        SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER   
	  

	  

	  
	
        TRUSTEES   
	
39   

	  	  
	
Section 9.01   
	
Eligibility Requirements for Owner Trustee   
	
39   

	  	  
	
Section 9.02   
	
Resignation or Removal of Owner Trustee   
	
39   

	  	  
	
Section 9.03   
	
Successor Owner Trustee   
	
40   

	  	  
	
Section 9.04   
	
Merger or Consolidation of Owner Trustee   
	
40   

	  	  
	
Section 9.05   
	
Appointment of Co-Trustee or Separate Trustee   
	
41   

	
ARTICLE X   
	
        MISCELLANEOUS   
	
42   

	  	  
	
Section 10.01   
	
Supplements and Amendments   
	
42   

	  	  
	
Section 10.02   
	
No Legal Title to Trust Estate in Certificateholders   
	
44   

	  	  
	
Section 10.03   
	
Pledge of Collateral by Owner Trustee is Binding   
	
44   

	  	  
	
Section 10.04   
	
Limitations on Rights of Others   
	
44   

	  	  
	
Section 10.05   
	
Notices   
	
44   

	  	  
	
Section 10.06   
	
Severability   
	
44   

	  	  
	
Section 10.07   
	
Separate Counterparts   
	
44   

	  	  
	
Section 10.08   
	
Successors and Assigns   
	
45   

	  	  
	
Section 10.09   
	
Headings   
	
45   

	  	  
	
Section 10.10   
	
Governing Law   
	
45   

	  	  
	
Section 10.11    	
Third Party Beneficiary   
	
45   

	  	  
	
Section 10.12   
	
No Petition   
	
45   

	  
	  
	
Section 10.13   
	
No Recourse   
	
46   

	
ARTICLE XI   
	
        OFFICERS   
	
46   

	  	  
	
Section 11.01   
	
Appointment of Officers   
	
46   

	  	  
	
Section 11.02   
	
Officers to Provide Information to the Owner Trustee   
	
46   

	
ARTICLE XII   
	
        COMPLIANCE WITH REGULATION AB   
	
47   

	  
	  
	
Section 12.01   
	
Intent of the Parties; Reasonableness   
	
47   

 

3 

 

 

TABLE OF CONTENTS 

(continued)  

	  

	  
	  

	  

	
Page   

	  	  
	
Section 12.02   
	
  Additional Representations and Warranties of the Owner   
	  

	  	  
	  

	
 Trustee   
	
47   

	  	  
	
Section 12.03   
	
  Information to Be Provided by the Owner Trustee   
	
48   

	  	  
	
Section 12.04   
	
  Indemnification; Remedies   
	
49   

 
	  
	
Exhibit A-1   
	
Form of Class B Certificate   

	  
	
Exhibit A-2   
	
Form of Class L Certificate   

	  
	
Exhibit A-3   
	
Form of Class R Certificate   

	  
	Exhibit B 	
Form of Certificate of Trust   

	  
	
Exhibit C-1   
	
Form of Rule 144A Investment Letter   

	  
	
Exhibit C-2   
	
Form of Non-Rule 144A Investment Letter   

	  
	Exhibit D 	
Form of Certificate of Non-Foreign Status   

	  
	
Exhibit E-1   
	
Form of Class [L][R] Certificate Transfer Affidavit (Transferor)   

	  
	
Exhibit E-2   
	
Form of Class [L][R] Certificate Transfer Affidavit (Transferee)   

	  
	Exhibit F 	
Owner Trustee Fee Letter Agreement   

 

4 

 

 

           This AMENDED AND RESTATED TRUST AGREEMENT, dated as of December 21, 2006, is by and between INDYMAC ABS, INC., a Delaware corporation (the “Depositor
”), WILMINGTON TRUST COMPANY, a Delaware banking corporation, as owner trustee (the “Owner Trustee”), and DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking
association, as administrator (the “Administrator”), and amends and restates in its entirety that certain Trust Agreement, dated December 6, 2006, between, the Depositor and the
Owner Trustee.  

           WHEREAS, the Trust was formed pursuant to a Trust Agreement, dated December 6, 2006, between the Depositor and the Owner Trustee.  

           WHEREAS, pursuant to the Sale and Servicing Agreement entered into simultaneously with this Trust Agreement, the Depositor intends to sell, transfer and assign to the Delaware statutory trust created
hereunder certain Mortgage Loans and related assets (collectively, the “Collateral”), which statutory trust will then pledge such Collateral under an indenture in order to secure
the issuance of its IndyMac Home Equity Mortgage Loan Asset-Backed Notes, Series 2006-H4 (the “Notes”), with the net proceeds of the sale of such Notes to be applied by the
Depositor toward the purchase of the Collateral from IndyMac Bank, F.S.B. (the “Seller”) pursuant to the Mortgage Loan Purchase Agreement.  

           WHEREAS, the Depositor, the Owner Trustee and the Administrator desire to enter into this Agreement in order to effect the foregoing.  

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

ARTICLE I 

DEFINITIONS 

           Section 1.01   Definitions. For all purposes of this Agreement, the following terms shall have the meanings set
forth below.  

           Actual Knowledge: With respect to the Owner Trustee, any officer within the Corporate Trust Office of the Owner Trustee responsible for administering the Trust
hereunder, or under the Transaction Documents, who has actual knowledge of an action taken or an action not taken with regard to the Trust. Actions taken or actions not taken of which the Owner Trustee should have had knowledge, or has constructive
knowledge, do not meet the definition of Actual Knowledge hereunder. With respect to the Administrator, any Responsible Officer of the Administrator who has actual knowledge of an action taken or an action not taken with regard to the Trust.
Actions taken or actions not taken of which the Administrator should have had knowledge, or has constructive knowledge, do not meet the definition of Actual Knowledge hereunder.  

           Agreement or Trust Agreement: This Trust Agreement and any further amendments, modifications or supplements hereof.  

 

 

           Authorized Officer: With respect to the Trust, any officer of the Owner Trustee who is authorized to act for the Owner Trustee in matters relating to the Trust 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 amended, modified or supplemented from time to time thereafter) and, so long as the Administration
Agreement is in effect, any Vice President, Assistant Vice President, Trust Officer, or more senior officer of the Administrator who is authorized to act for the Administrator in matters relating to the Trust and to be acted upon by the
Administrator pursuant to the Administration Agreement and who is identified on the list of Authorized Officers delivered by the Administrator to the Indenture Trustee on the Closing Date (as such list may be amended, modified or supplemented from
time to time thereafter).  

           Bank: Wilmington Trust Company, in its individual capacity and not as Owner Trustee under this Agreement.  

           Certificate: Any Class B Certificate, Class L Certificate or Class R Certificate.  

           Certificate of Trust: The Certificate of Trust to be filed by the Owner Trustee for the Trust pursuant to Section 3810(a) of the Delaware Trust Statute in the form of
Exhibit B hereto.  

           Certificate Paying Agent: Initially, the Administrator, in its capacity as Certificate Paying Agent, or any successor to the Administrator in such capacity. 

           Certificate Register: The register maintained by the Certificate Registrar in which the Certificate Registrar shall provide for the registration of the Certificates
and of transfers and exchanges of such Certificates.  

           Certificate Registrar: Initially, the Administrator, in its capacity as Certificate Registrar, or any successor to the Administrator in such capacity.  

           Certificateholder: The Person in whose name a Certificate is registered in the Certificate Register.  

           Class B Certificate: A Regular Certificate, substantially in the form of Exhibit A-1 hereto.  

           Class L Certificate: A Residual Certificate, substantially in the form of Exhibit A-2 hereto.  

           Class R Certificate: A Residual Certificate, substantially in the form of Exhibit A-3 hereto.  

           Collateral: As defined in the Indenture. 

           Corporate Trust Office: With respect to the Owner Trustee, the corporate trust office of the Owner Trustee located at Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890-0001; or at such other address in the State of Delaware as the Owner Trustee may designate by notice to the Certificateholders and, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to
the Insurer, the Insurer, or the principal 

2 

 

 

corporate trust office of any successor Owner Trustee (the address (which shall be in the State of Delaware) of which the successor owner trustee will notify the Certificateholders and, so long as the Notes are Outstanding or any
Reimbursement Amounts remain due and owing to the Insurer, the Insurer) or with respect to the Certificate Registrar, the designated office for presentment and surrender of certificates for registration, transfer or exchange thereof located at DB
Services Tennessee, 648 Grassmere Road, Nashville, Tennessee 37211, Attn: Transfer Unit, or at such other address as the Certificate Registrar may designate from time to time by notice to the Noteholders, the Trust and, so long as the Notes are
Outstanding or any Reimbursement Amounts remain due and owing to the Insurer, the Insurer, or the principal corporate trust office of any successor Certificate Registrar at the address designated by such successor Certificate Registrar by notice to
the Noteholders and the Trust.  

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

           Depositor: IndyMac ABS, Inc., a Delaware corporation.  

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

           Expenses: The meaning specified in Section 7.02.  

           Indenture: The indenture dated December 21, 2006, between the Issuer and the Indenture Trustee, as such may be amended, modified or supplemented from time to time. 

           IndyMac Information: The meaning specified in Section 12.04(c) .  

           Initial Holder: IndyMac ABS, Inc., or any successor in interest.  

           Insurer: MBIA INSURANCE CORPORATION a stock insurance corporation incorporated under the laws of the State of New York, or any successor thereto.  

           Latest Possible Maturity Date: The Payment Date in March 2037.  

           Lower Tier REMIC: The meaning specified in Section 2.11(a) .  

           Net Proceeds from the Notes: The proceeds received by the Trust from time to time from the issuance and sale of its Notes, less the costs and expenses incurred in
connection with the issuance and sale of such Notes.  

           Non-U.S. Person: Any person other than a “United States person” as defined in Section 7701(a)(30) of the Code.  

           Note: Any Note designated “Note” on the face thereof.  

           Noteholder: A Person in whose name a Note is registered on the Note Register.  

           Note Register: As defined in the Indenture. 

           Officer: Those officers of the Trust referred to in Article XI. 

3 

 

 

           Opinion of Counsel: One or more written opinions of counsel who may, except as otherwise expressly provided in this Agreement, be employees of or counsel to the
Depositor and who shall be satisfactory to the Owner Trustee and the Administrator, which opinion shall be addressed to the Owner Trustee and the Administrator.  

           Owner Trustee: Wilmington Trust Company, a Delaware banking corporation, and any successor in interest, not in its individual capacity, but solely as owner trustee
under the Trust Agreement.  

           Owner Trustee Information: The meaning specified in Section 12.04(a)(1)(A) .  

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

           Percentage Interest: With respect to any Certificate, the percentage set forth on the face thereof.  

           Permitted Transferee: Any Person other than (i) a “disqualified organization,” within the meaning of section 860E(e)(5) of the Code, or (ii) a Non-U.S.
Person.  

           Regular Certificates: Any of the Class B Certificates.  

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

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

           Residual Certificates: Any of the Class R Certificates and the Class L Certificates.  

           Responsible Officer: With respect to the Owner Trustee, any officer within the Corporate Trust Office of the Owner Trustee with direct responsibility for the
administration of the Trust and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of, and familiarity with, the particular subject; and with respect to the
Administrator, any officer with direct responsibility for the administration of the Trust and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of, and familiarity
with, the particular subject.  

           Sale and Servicing Agreement: The Sale and Servicing Agreement dated December 12, 2006, by and among the Trust, the Depositor, as seller, the Servicer and the
Indenture Trustee, as such may be amended, modified or supplemented from time to time.  

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

4 

 

 

           Seller: IndyMac Bank, F.S.B. 

           Similar Law: The meaning specified in Section 3.07.  

           Transaction Party: The meaning specified in Section 12.02(a) .  

           Trust: The trust established pursuant to this Agreement which shall carry on its business operations under the name of “IndyMac Home Equity Mortgage Loan
Asset-Backed Trust, Series 2006-H4.”  

           Upper Tier REMIC: The meaning specified in Section 2.11(a) .  

           Section 1.02 Other Definitional Provisions. Capitalized terms used herein and not defined herein shall have
the same meanings assigned to them in the Sale and Servicing Agreement or if not so defined therein, then as defined in the Indenture and the rules of construction therein shall apply herein.  

           (a) All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein.  

  
           (b) As used in this Agreement and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not
defined in this Agreement or in any such certificate or other document, and accounting terms partly defined in this Agreement or in any such certificate or other document to the extent not defined, shall have the respective meanings given to them
under generally accepted accounting principles. To the extent that the definitions of accounting terms in this Agreement or in any such certificate or other document are inconsistent with the meanings of such terms under generally accepted
accounting principles, the definitions contained in this Agreement or in any such certificate or other document shall control.  

  
           (c) The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this Agreement; Section and Exhibit references contained in this Agreement are references to Sections and Exhibits in or to this Agreement unless otherwise specified; and the term
“including” shall mean “including without limitation.”  

  
           (d) The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine
as well as the feminine and neuter genders of such terms.  

  
           (e) 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.  

5 

 

 

ARTICLE II 

ORGANIZATION 

           Section 2.01   Name. The trust continued by this Agreement shall be referred to as “IndyMac Home Equity
Mortgage Loan Asset-Backed Trust, Series 2006-H4” in which name the Owner Trustee and the Officers may conduct the activities contemplated hereby, including the making and executing of contracts and other instruments on behalf of the Trust and
sue and be sued.  

           Section 2.02   Office. The principal office of the Trust shall be in care of the Owner Trustee at its Corporate
Trust Office. The Trust shall also have an office in care of the Administrator at its Corporate Trust Office.  

           Section 2.03   Purpose and Powers. The Trust shall have the power and authority to engage in any of the
following activities:  

           (a) to issue the Notes from time to time pursuant to the Indenture and the Certificates pursuant to this Agreement and to sell, transfer and
exchange such Notes and such Certificates;  

  

           (b) to pay the organizational, start-up and transactional expenses of the Trust and to transfer the Notes and Certificates to the Depositor in
consideration of the transfer to the Trust of the Collateral;  

  

           (c) to assign, grant, transfer, pledge, mortgage and convey the Trust Estate pursuant to the Indenture on behalf of the Noteholders and for the
benefit of the Insurer and to hold, manage and distribute to the Certificateholders pursuant to the terms of the Sale and Servicing Agreement any portion of the Collateral released from the lien of, and remitted to the Trust pursuant to, the
Indenture;  

  

           (d) to enter into and perform its obligations under the Transaction Documents to which it is to be a party;  

  

           (e) to engage in those activities, including entering into agreements, that are necessary, suitable or convenient to accomplish the foregoing
or are incidental thereto or connected therewith; and  

  

           (f) subject to compliance with the Transaction Documents, to engage in such other activities as may be required in connection with conservation
of the Trust Estate and the making of distributions and payments, as applicable, to the Certificateholders, the Noteholders, the Issuer, the Owner Trustee, the Indenture Trustee and any Person pursuant to the Transaction Documents.  

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

6 

 

 

           Section 2.04   Appointment of the Owner Trustee. The Depositor hereby appoints the Bank to act as Owner Trustee
of the Trust effective as of the date hereof to have all the rights, powers and duties set forth herein with respect to accomplishing the purposes of the Trust.  

           The Owner Trustee is hereby authorized to execute this Agreement, the Indenture, the Administration Agreement, the Insurance Agreement, the Sale and Servicing Agreement and any other Transaction
Document on behalf of the Trust. The Owner Trustee is hereby authorized to take all actions required or permitted to be taken by it in accordance with the terms of this Agreement.  

           Section 2.05   Initial Capital Contribution; Declaration of Trust.  

           (a) The Depositor hereby sells, assigns, transfers, conveys and sets over to the Trust, as of the date hereof, the sum of $1 in exchange
for which the Owner Trustee shall issue to the Depositor the Class L Certificate and the Class R Certificate. The Owner Trustee hereby acknowledges receipt in trust from the Depositor, as of the Closing Date, of the foregoing transfers which shall
constitute the initial corpus of the Trust Estate and shall be deposited in the Certificate Account. The Depositor shall pay organizational expenses of the Trust as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse
the Owner Trustee for any such expenses paid by the Owner Trustee. The Depositor’s payment of such amounts will not increase the Class Principal Balance of any Certificate.  

  

           (b) The Owner Trustee hereby declares that it will hold the Trust Estate in trust upon and subject to the conditions set forth herein for the
use and benefit of the Certificateholders, subject to the obligations of the Trust under the Transaction Documents. It is the intention of the parties hereto that the Trust constitutes a statutory trust under the Delaware Trust Statute and that this
Agreement constitutes the governing instrument of such statutory trust. No later than the Closing Date, the Owner Trustee shall cause the filing of the Certificate of Trust with the Secretary of State. Except as otherwise provided in this
Agreement, the rights of the Certificateholders will be those of beneficial owners of the Trust.  

           Section 2.06   Issuance of Initial Certificates. Upon the sale, assignment and transfer of the Mortgage Loans by
the Depositor to the Trust pursuant to Section 2.01 of the Sale and Servicing Agreement, the Owner Trustee shall issue the Class B Certificates and Class R Certificates to or at the direction of the Initial Holder and the Class L Certificates to the
Initial Holder.  

           Section 2.07   Liability of the Holder of the Certificates. Each Certificateholder shall be entitled to the same
limitation of personal liability extended to stockholders of private corporations for profit organized under the General Corporation Law of Delaware.  

           Section 2.08   Situs of Trust. 

           The Trust will be located and administered in the State of Delaware. All bank accounts maintained by the Owner Trustee on behalf of the Trust shall be located in the States of Delaware, New York or
the jurisdiction where the Indenture Trustee maintains bank accounts 

7 

 

 

with respect to collections on the Collateral. The only office of the Trust will be as described in Section 2.02 hereof. The Trust shall not have any employees; provided, however,
that nothing herein shall restrict or prohibit the Owner Trustee from having employees within or without the State of Delaware. Payments will be received by the Trust only in Delaware, New York, the jurisdiction in which the Indenture
Trustee maintains the Certificate Account or such other jurisdiction designated by the Depositor, and payments will be made by the Trust only from Delaware, New York, the jurisdiction in which the Indenture Trustee maintains the Certificate Account
or such other jurisdiction designated by the Depositor.  

           Section 2.09   Title to Trust Property. 

            (a) Subject to the Indenture, title to all of the Trust Estate shall be vested at all times in the Trust as a separate legal entity until this
Agreement terminates pursuant to Article VIII hereof; provided, however, that if the laws of any jurisdiction require that title to any part of the Trust Estate be vested in the trustee of
the Trust, then title to that part of the Trust Estate shall be deemed to be vested in the Owner Trustee or any co-trustee or separate trustee, as the case may be, appointed pursuant to Article IX of this Agreement.  

              (b) The Certificateholders shall have beneficial but not legal title to any part of the Trust Estate. No transfer by operation of law or
otherwise of any interest of the Certificateholders shall operate to terminate this Agreement or the trust created hereunder or entitle any transferee to an accounting or to the transfer to it of any part of the Trust Estate.  

           Section 2.10   Representations and Warranties of the Depositor. The Depositor hereby represents and warrants to
the Owner Trustee, the Insurer and the Administrator as of the Closing Date, as follows:  

            (a) The Depositor is a Delaware corporation validly existing and in good standing. The Depositor has the power and authority to execute and
deliver this Agreement and to perform in accordance herewith; 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 by all necessary action of the Depositor; this Agreement evidences the valid, binding and enforceable obligation of the Depositor; and all requisite action has been taken by the
Depositor to make this Agreement valid, binding and enforceable upon the Depositor in accordance with its terms, subject to the effect of bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally or the application of equitable principles in any proceeding, whether at law or in equity.  

              (b) The consummation of the transactions contemplated by this Agreement will not result in (i) the breach of any terms or provisions of the
Depositor’s certificate of incorporation or bylaws, (ii) the breach of any term or provision of, or conflict with or constitute a default under or result in the acceleration of any obligation under, any material agreement, indenture or loan or
credit agreement or other material instrument to 

8 

 

 

which the Depositor, or its property is subject, or (iii) the violation of any law, rule, regulation, order, judgment or decree to which the Depositor or its respective property is subject.  

              (c) To the Depositor’s best knowledge, it is not in default with respect to any order or decree of any court or any order, regulation or
demand of any federal, state, municipal or other governmental agency, which default might have consequences that would materially and adversely affect the condition (financial or otherwise) or operations of the Depositor or its properties or might
have consequences that would materially and adversely affect its performance hereunder.  

              (d) To the Depositor’s best knowledge, there are no proceedings or investigations pending or threatened before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties: (A) asserting the invalidity of this Agreement, (B) seeking to prevent the consummation of any of the transactions contemplated by
this Agreement or (C) seeking any determination or ruling that might materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of, this Agreement.  

           Section 2.11   Designation of REMIC and Interests Therein.  

            (a) For purposes of the REMIC Provisions: the Trust Estate shall be treated as comprising two segregated accounts each of which will be a real
estate mortgage investment conduit (each a “REMIC” or, in the alternative, the “Lower Tier REMIC” and the “Upper Tier REMIC”); each of the Notes and the Class B Certificates shall represent ownership of a regular
interest in the Upper Tier REMIC; the Class L Certificate shall represent the sole class of residual interest in the Lower Tier REMIC; and the Class R Certificate represents ownership of the sole class of residual interest in the Upper Tier REMIC. 

              (b) For purposes of the REMIC provisions the Lower Tier REMIC shall hold as its assets the Trust Estate and shall be deemed to have issued the
Class L Certificate and the uncertificated interests in the Lower Tier REMIC (each, a “Lower-Tier Interest”). The following table describes the designation, interest rate, and initial principal balance for the Class L Certificate and each
Lower-Tier Interest and shows the Notes or corresponding class of Certificates.  

	  

	  
	

	  
	

	  

	  
	
Corresponding   

	
Lower-Tier   
	  
	
Lower-Tier Interest 
	  
	
Initial Principal   
	  
	
Class of Notes   

	
Designation   
	  
	
Rate 
	  
	
Balance   
	  
	
or Certificates   

	

 
	
	

 
	
	

 
	

 
	
	

 

	
LT-Notes   
	  
	
(1) 
	  
	
$ 
	 325,000,000   
	  
	
Notes   

	
LT-Q   
	  
	
(1) 
	  
	
$ 
	
325,002,683   
	  
	
N/A   

	
Class L Certificate   
	  
	
(2) 
	  
	
$ 
	
0   
	  
	
N/A   

 
	
(1) 	
The interest rate with respect to any Payment Date (and the related Interest Accrual Period) for each of these Lower-Tier Interests is the Maximum Rate.  
	  

9 

 

 

	
(2) 	
The interest rate with respect to any Payment Date (and the related Interest Accrual Period) during the Managed Amortization Period for the Class L Certificates is the Note Rate for such Payment Date, and for each Payment
Date (and the related Interest Accrual Period) thereafter, the Maximum Rate.  

           On each Payment Date, for purposes of the REMIC provisions:  

            (1) The fees and expenses of the Trust paid from amounts on deposit in the Payment Account pursuant to Section 5.01(a) of the Sale and
Servicing Agreement shall be treated as having been paid as an expense of the Lower Tier REMIC;  

                  (2) During the Managed Amortization Period, amounts remaining in the Payment Account after the payments under priority (1) above shall be paid
on the Class L Certificate to the extent of any interest accrued thereon at the rate described above;  

                  (3) Amounts remaining in the Payment Account after the payments under priorities (1) and (2) above shall be paid on each of the Lower-Tier
Interests at the rates described above, pro rata, based on the amount of interest accrued on each such Lower-Tier Interest for the related Interest Accrual Period, provided however, that
interest that accrues on the LT-Q Interest shall be deferred in an amount necessary to make the principal distributions described under priority (5) below for such Payment Date. Any interest so deferred shall itself bear interest at the interest
rate for the LT-Q Interest;  

                  (4) During the Managed Amortization Period, amounts remaining in the Payment Account after the payments under priorities (1), (2), and (3)
above shall be paid on the Class L Certificate until its Class Principal Balance is reduced to zero;  

                  (5) Amounts remaining in the Payment Account after the payments under priorities (1), (2), (3), and (4) above shall be paid on the LT-Notes
Lower-Tier Interests until the principal balance of each such Lower-Tier Interest equals 50% of the Note Principal Amount of the Notes immediately after such Payment Date;  

                  (6) Amounts remaining in the Payment Account after the payments under priorities (1), (2), (3), (4), and (5) above shall be paid – 

    

	  	i. 	During the Managed Amortization Period, on the LT-Q Lower-Tier Interest until its principal balance is reduced to zero, and 
	  	  	  
	  	ii. 	During the Rapid Amortization Period, first, to the LT-Q Lower-Tier Interest until the its principal balance equals the sum of (A) 50% of the Note Principal Amount of the Notes immediately after such Payment Date plus (B) the excess of (I) the Overcollateralization Amount immediately after such Payment 

10 

 

 

	  	  	Date over (II) the Additional Balance Advance Amount immediately after such Payment Date, and then, to the Class L Certificate, any remaining amount. 
	  	  	  

           On each Payment Date, Investor Charge-off Amounts (as defined in the Sale and Servicing Agreement) shall be allocated to and applied in reduction of the principal balance of the Lower-Tier Interests
and the Class L Certificate in the same manner in which principal is distributed on the Lower-Tier Interests pursuant to priorities (5) and (6) above.  

            (c) For purposes of the REMIC Provisions, the Upper Tier REMIC shall hold as assets the Lower-Tier Interests and shall issue the interests
described in the table below, each of which will relate to the Notes or corresponding Class of Certificates. The following table describes the designation, interest rate, initial principal balance and the Notes or corresponding Class of Certificates
for each interest.  

	  

	  
	

	  
	

	  
	
Corresponding   

	
Upper-Tier   
	  
	
Upper-Tier 
	  
	

	  
	
Class of Notes   

	
Designation   
	  
	
Interest Rate 
	  
	
Initial Principal Balance 
	  
	
or Certificates   

	

 
	
	
 
	
	

 
	
	

 

	
UT-Notes   
	  
	
(1) 
	  
	
$650,000,000 
	  
	
Notes   

	
UT-B   
	  
	
(2) 
	  
	
(initial Overcollateralization Amount) 
	  
	
B   

	
Class R   
	  
	
(3) 
	  
	
(4) 
	  
	
R   

 

	
(1) 	
The interest rate with respect to any Payment Date (and the related Interest Accrual Period) for each of these Upper-Tier Interests is the Note Rate applicable to the Notes for the Payment Date.  
	  
	
(2) 	
The UT-B Upper-Tier Interest shall comprise two components, each of which is hereby designated as a regular interest in the Upper Tier REMIC. The first component is a principal-only component and represents the right to
receive distributions from the Upper Tier REMIC in an amount equal to the Overcollateralization Amount determined as of the Closing Date. The second component is an interest-only component and represents the right to receive on each Payment Date
interest accrued on the Lower-Tier Interests at a per annum rate equal to the excess, if any, of (i) the Maximum Rate over (ii) the product of (a) two multiplied by (b) the weighted average of the interest rates for such payment date on the
Lower-Tier Interests, weighted on the basis of their principal balances as of the first day of the related Interest Accrual Period (after taking into account payments made on such date) and computed for this purpose by subjecting the interest rate
on the LT-Q Lower-Tier Interest to a cap of 0.00% and subjecting the interest rate on each of the LT-Notes, Lower-Tier Interests to a cap equal to the Note Rate in effect for such Payment Date on the Notes.  
	  
	
(3) 	
For purposes of the REMIC Provisions, the R Upper-Tier Interest is the sole residual interest in the Upper Tier REMIC. It does not have an interest rate or a principal balance.  
	  

           On each Payment Date, the payments made on each Upper-Tier Interest shall correspond to the payments required to be made on the Notes or Certificates under the terms of the Sale and Servicing
Agreement of this Agreement, provided, however, that any payments made on any of the Notes with respect to Deferred Interest shall be treated as payments made by the Upper Tier REMIC in
respect of the UT-B Interest, and therefore, to the holder of the Class B Certificates, and then paid by the holder of the Class B Certificates to the holders of the Notes. For federal income tax purposes, the rights of the holders of the Notes to
receive payments of Deferred Interest shall be treated as contractual rights to receive payments under a notional principal 

11 

 

 

contract written by the holder of the Class B Certificates in favor of the holders of the Notes. For federal income tax reporting purposes, this notional principal contract shall be deemed to have a value of zero on the Closing
Date.  

           Section 2.12   Designation of Start-up Day. The Closing Date is hereby designated as the “start-up
day” of each REMIC within the meaning of Section 860G(a)(9) of the Code.  

           Section 2.13   REMIC Notes Maturity Date. Solely for purposes of satisfying Section 1.860G -1(a)(4)(iii) of the
Treasury Regulations, the “latest possible maturity date” of each Lower-Tier Interest and each Upper-Tier Interest and, therefore, the Notes and the Class B Certificates, is the Latest Possible Maturity Date.  

           Section 2.14   Withholding Taxes. In the event that any withholding tax is imposed under federal, state, or
local law on the Trust’s payment (or allocations of income) to a Certificateholder, such tax shall reduce the amount otherwise distributable to such Certificateholder in accordance with this Section 2.14. The Administrator is hereby authorized
and directed to retain in the Certificate Account from amounts otherwise distributable to the Certificateholders sufficient funds for the payment of any tax that is legally owed by the Trust (but such authorization shall not prevent the
Administrator from contesting any such tax in appropriate proceedings, and withholding payment of such tax, if permitted by law, pending the outcome of such proceedings). The Certificate Registrar will provide the Administrator with a statement
indicating the amount of any such withholding tax. The amount of any withholding tax imposed with respect to a Certificateholder shall be treated as cash distributed to such Certificateholder at the time it is withheld by the Administrator and
remitted to the appropriate taxing authority from the Payment Account at the direction of the Administrator. If there is a possibility that withholding tax is payable with respect to a distribution, the Administrator may in its sole discretion
direct the Administrator to withhold such amounts in accordance with this paragraph. In the event that a Certificateholder wishes to apply for a refund of any such withholding tax, the Owner Trustee and the Administrator shall reasonably cooperate
with such Certificateholder in making such claim so long as such Certificateholder agrees in writing to reimburse the Owner Trustee and the Administrator for any out-of-pocket expenses incurred.  

           Section 2.15   Tax Returns. 

            (a) For federal income tax purposes, each of the REMICs created hereunder shall have a calendar year taxable year and shall maintain its books
on the accrual method of accounting.  

              (b) The Administrator shall prepare or cause to be prepared and shall file or cause to be filed with the Internal Revenue Service and
applicable state or local tax authorities income tax and information returns for each taxable year with respect to each REMIC containing such information at the times and in the manner as may be required by the Code or state or local tax laws,
regulations, or rules, and shall furnish or cause to be furnished to the REMICs and the Certificateholders the schedules, statements or information at such times and in such manner as may be required thereby. Within thirty (30) days of the Closing
Date, the Owner Trustee shall furnish or cause to be furnished to the Internal Revenue Service, on Form 8811 or as otherwise required by the 

12 

 

 

Code, the name, title, address and telephone number of the person that holders of the Securities may contact for tax information relating thereto, together with such additional information at the time or times and in the manner
required by the Code. Such federal, state, or local income tax or information returns shall be signed by the Administrator, or such other Person as may be required to sign such returns by the Code or state or local tax laws, regulations, or rules. 

              (c) In the first federal income tax return of each REMIC for their short taxable year ending December 31, 2006, REMIC status shall be elected
by the Administrator for such taxable year and all succeeding taxable years.  

              (d) The Administrator shall maintain or cause to be maintained such records relating to each REMIC, including but not limited to the income,
expenses, assets and liabilities of the Trust, and the fair market value and adjusted basis of the Trust Estate and assets determined at such intervals as may be required by the Code, as may be necessary to prepare the foregoing returns, schedules,
statements or information.  

              (e) If any tax is imposed on “prohibited transactions” (as defined in Section 860F(a)(2) of the Code) of each REMIC created
hereunder, on any contribution to any REMIC created hereunder after the Closing Date pursuant to Section 860G(d) of the Code, or any other tax is imposed, including any minimum tax imposed on any REMIC created hereunder pursuant to Sections 23153
and 24874 of the California Revenue and Taxation Code, if not paid as otherwise provided for herein, the tax shall be paid by (i) the Administrator, if any such other tax arises out of or results from negligence of the Administrator in the
performance of any of its obligations under this Agreement, (ii) the Depositor, in the case of any such minimum tax, if such tax arises out of or results from a breach by the Depositor of any of its obligations under this Agreement, or (iii) in all
other cases, or if the Administrator or the Depositor fails to honor its obligations under the preceding clauses (i) or (ii), any such tax will be paid with amounts otherwise to be distributed to the Residual Certificateholders pursuant to Section
3.11 of this Agreement.  

           Section 2.16   Investment Company. None of the Depositor, the Administrator and any Certificateholder shall take
any action which would cause the Trust to become an “investment company” which would be required to register under the Investment Company Act of 1940, as amended.  

ARTICLE III 

THE CERTIFICATES AND TRANSFERS OF INTERESTS  

           Section 3.01 The Certificates. Each Class of the Certificates shall be issued in definitive, fully registered
form and shall initially be registered in the name of the Initial Holder. The Class B Certificate shall be issued in minimum denominations of 1% Percentage Interest in such Certificates. The Class L Certificates shall not be issued in authorized
denominations of less than a 100% Percentage Interest in such Certificates. The Class R Certificates shall not be issued in authorized denominations of less than a 100% Percentage Interest in such Certificates. The Certificates shall be executed on
behalf of the Trust by manual or facsimile signature of an 

13 

 

 

Authorized Officer of the Owner Trustee and authenticated in the manner provided in Section 3.02. A Certificate bearing the manual signatures of individuals who were, at the time when such signatures shall have been affixed,
authorized to sign on behalf of the Trust, shall be validly issued and entitled to the benefit of this Agreement, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of
such Certificate or did not hold such offices at the date of authentication and delivery of such Certificate. A Person shall become a Certificateholder and shall be entitled to the rights and subject to the obligations of a Certificateholder
hereunder upon such Person’s acceptance of a Certificate duly registered in such Person’s name pursuant to Section 3.03.  

           Section 3.02   Execution, Authentication and Delivery of the Certificates. Concurrently with the sale of the
Collateral to the Trust pursuant to the Sale and Servicing Agreement, the Owner Trustee shall cause the Certificates issued hereunder to be executed on behalf of the Trust and authenticated and delivered to the Initial Holder. The Depositor hereby
directs the Owner Trustee to so deliver the Certificates. The Certificates shall not entitle its Holder to any benefits under this Agreement or be valid for any purpose unless there shall appear on such Certificate a certificate of authentication
substantially in the form set forth in Exhibits A-1, A-2 and A-3 hereto, respectively, executed by the Owner Trustee or the Administrator, as the Owner Trustee’s authenticating agent, by manual signature; such authentication shall constitute
conclusive evidence that such Certificate shall have been duly authenticated and delivered hereunder. A Certificate shall be dated the date of its authentication.  

           Section 3.03   Registration of and Limitations on Transfers and Exchanges of the Certificates.  

           (a) The Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.08, a Certificate Register in which, subject to such reasonable regulations as it
may prescribe, the Certificate Registrar shall provide for the registration of the Certificates and of transfers and exchanges of the Certificates as herein provided; provided, however, that
no Class R Certificate or Class L Certificate shall be issued in any such transfer and exchange representing less than a 100% Percentage Interest in such Certificate. The Administrator shall be the initial Certificate Registrar. If the Certificate
Registrar resigns or is removed, the Owner Trustee, with the consent of the Depositor, shall appoint a successor Certificate Registrar.  

           Subject to satisfaction of the conditions set forth below, upon surrender for registration of transfer of a Certificate at the office or agency maintained pursuant to Section 3.08, the Owner Trustee
shall execute, authenticate and deliver (or cause the Administrator as its authenticating agent to authenticate and deliver), in the name of the designated transferee, a new Certificate evidencing the Percentage Interest of the Certificate so
surrendered and dated the date of authentication by the Owner Trustee or the Certificate Registrar.  

           Every Certificate presented or surrendered for registration of transfer or exchange shall be accompanied by a written instrument of transfer in form satisfactory to the Owner Trustee and the
Certificate Registrar duly executed by the Certificateholder or such Certificateholder’s attorney duly authorized in writing. Each Certificate surrendered for registration of transfer or 

14 

 

 

exchange shall be cancelled and subsequently disposed of by the Certificate Registrar in accordance with its customary practice.  

           No service charge shall be made for any registration of transfer or exchange of the Certificates, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover
any tax or governmental charge that may be imposed in connection with any transfer or exchange of the Certificates or any other expense arising as a result of any registration of transfer or exchange.  

           Except for the initial issuance of the Class L and Class R Certificates on the Closing Date, no Person shall become a Certificateholder of Class L or Class R Certificates until it shall establish its
non-foreign status by submitting to the Certificate Paying Agent an IRS Form W-9 and the Certificate of Non-Foreign Status set forth in Exhibit D hereto.  

           The preceding provisions of this Section notwithstanding, the Owner Trustee shall not make and the Certificate Registrar shall not register any transfer or exchange of a Class L Certificate or a Class
R Certificate for a period of 15 days preceding the due date for any payment with respect to such Residual Certificates.  

           (b) The Certificates shall be assigned, transferred, exchanged, pledged, financed, hypothecated or otherwise conveyed (collectively, for
purposes of this Section 3.03 and any other Section referring to the Certificates, “transferred” or a “transfer”) only in accordance with this Section 3.03.  

           (c) No transfer of a Certificate shall be made unless such transfer is exempt from the registration requirements of the Securities Act and any
applicable state securities laws or is made in accordance with the Securities Act and such laws. Each prospective transferee of a Certificate, other than the Initial Holder, shall represent and warrant, in writing, to the Owner Trustee and the
Certificate Registrar and any of their respective successors that:  

            (I) Such Person is (A) a “qualified institutional buyer” as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), (such Person shall execute an
investment letter in the form attached hereto as Exhibit C-1 to such effect) and is aware that the seller of such Certificate may be relying on the exemption from the registration requirements of the Securities Act provided by Rule 144A and is
acquiring such Certificate for its own account or for the account of one or more qualified institutional buyers for whom it is authorized to act or (B) an “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of the
Securities Act (such Person shall execute an investment letter in the form attached hereto as Exhibit C-2 to such effect) and is aware that the seller of such Certificate is relying on an exemption from the registration requirements of the
Securities Act and is acquiring such Certificate for its own account;  

              (II) Such Person understands that such Certificate has not been and will not be registered under the Securities Act and may be offered, sold, pledged or otherwise transferred only to a person (A) whom
the seller reasonably believes is a “qualified institutional buyer” or (B) an “accredited investor” (as defined in Rule 501(a)(1), (2), (3) 

15 

 

 

or (7) of the Securities Act, in each case in a transaction exempt from registration under the Securities Act and in accordance with any applicable securities laws of any state of the United States; and  

              (III) Such Person shall comply with the provisions of Section 3.07, as applicable, relating to the ERISA restrictions with respect to the acceptance or acquisition of such Certificate.  

              (d) For so long as any of the Certificates are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act,
the Administrator agrees to cooperate with the Depositor to provide to any Certificateholders and to any prospective purchaser of Certificates designated by such Certificateholder, upon the request of such Certificateholder or prospective purchaser,
any information required to be provided to such holder or prospective purchaser to satisfy the condition set forth in Rule 144A(d)(4) under the Securities Act. Any reasonable, out-of-pocket expenses incurred by the Administrator in providing such
information shall be reimbursed by the Depositor.  

              (e) Each prospective transferee of any Class L or Class R Certificate, other than the Initial Holder, shall execute and deliver the Certificate
of Non-Foreign Status (in the form attached hereto as Exhibit D).  

              (f) Each Person that has or that acquires any Ownership Interest in any Class L or Class R Certificate
shall be deemed by the acceptance or acquisition of such Ownership Interest to have agreed to be bound by the following provisions and to have irrevocably appointed the Certificate Registrar or its designee as its
attorney-in-fact to negotiate the terms of any mandatory sale under clause (v) below and to execute all instruments of transfer and to do all other things necessary in connection with any such sale, and the rights of each Person acquiring any
Ownership Interest in the Class L or Class R Certificates are expressly subject to the following provisions:  

  
            (i) Each Person holding or acquiring any Ownership Interest in a Class L or Class R Certificate
shall be a Permitted Transferee and shall promptly notify the Owner Trustee and the Certificate Registrar of any change or impending change in its status as a Permitted
Transferee.  

                (ii) No Person shall acquire an Ownership Interest in a Class L or Class R Certificate
unless such Ownership Interest is a pro rata undivided interest.  

                (iii) No Ownership Interest in a Class L or Class R Certificate may be transferred
without the express written consent of the Owner Trustee, the Depositor and the Certificate Registrar. In connection with any proposed transfer of any Ownership Interest in a Class L or Class R Certificate, the Owner Trustee shall as a condition to
such consent, require delivery to it, the Depositor and the Certificate Registrar in form and substance satisfactory to it, of each of the following:  

  

16 

 

 

            (A) an affidavit in the form of Exhibit E-1 hereto from the proposed transferor, and an affidavit in the form of Exhibit E-2 hereto from the
proposed transferee to the effect that such transferee is a Permitted Transferee and that it is not acquiring its Ownership Interest in the Class L or Class R Certificate that is the subject
of the proposed transfer as a nominee, trustee or agent for any Person who is not a Permitted Transferee; and  

                  (B) a covenant of the proposed transferee to the effect that the proposed transferee agrees to be bound by and to abide by the transfer
restrictions applicable to the Class L or Class R Certificate.  

    

                (iv) Any attempted or purported transfer of any Ownership Interest in a Class L or Class R Certificate
in violation of the provisions of this Section 3.03 shall be absolutely null and void and shall vest no rights in the purported transferee. If any purported transferee shall, in violation of the provisions of this
Section 3.03, become a holder of a Class L or Class R Certificate, then the prior holder of such Class L or Class R Certificate that is a Permitted Transferee shall, upon discovery that the
registration of transfer of such Class L or Class R Certificate was not in fact permitted by this Section 3.03, be restored to all rights as holder thereof retroactive to the date of
registration of transfer of such Class L or Class R Certificate. The Owner Trustee and the Certificate Registrar shall be under no liability to any Person for any registration of transfer of
any Class L or Class R Certificate that is in fact not permitted by this Section 3.03 or for making any distributions due on such Class L or Class R Certificate
to the holder thereof or taking any other action with respect to such holder under the provisions of this Agreement so long as the Owner Trustee, the Depositor and the Certificate Registrar received all affidavits and
covenants with respect to such transfer provided for under this Section 3.03. The Certificate Paying Agent, on behalf of the Trust, shall be entitled to recover from any holder of a Class L
or Class R Certificate that was in fact not a Permitted Transferee at the time such distributions were made all distributions made on such Class L or Class R Certificate. Any such
distributions so recovered by the Certificate Paying Agent shall be distributed and delivered by the Certificate Paying Agent to the prior holder of such Residual Certificate that is a
Permitted Transferee.  

                (v) If any Person other than a Permitted Transferee acquires any Ownership Interest in a Class L or Class R Certificate
in violation of the restrictions in this Section 3.03, then the Certificate Registrar shall have the right but not the obligation, without notice to the holder of such Class L or Class R
Certificate or any other Person having an Ownership Interest therein, to notify the underwriter to arrange for the sale of such Class L or Class R Certificate. The proceeds of such sale,
net of commissions (which may include commissions payable to the Certificate Registrar or its affiliates), expenses and taxes due, if any, will be remitted by the Certificate Paying Agent to the previous holder of such Class L or Class R
Certificate that is a Permitted Transferee, except that in the event that the Certificate Paying Agent determines that the holder of such 

  

17 

 

 

Class L or Class R Certificate may be liable for any amount due under this Section 3.03 or any other provisions of this Agreement, the
Certificate Paying Agent may withhold a corresponding amount from such remittance as security for such claim. The terms and conditions of any sale under this clause (v) shall be determined in the sole discretion of the
Certificate Registrar and the Certificate Paying Agent, and neither such Person shall not be liable to any Person having an Ownership Interest in a Class L or Class R Certificate as a result
of its exercise of such discretion.  

                (vi) If any Person other than a Permitted Transferee acquires any Ownership Interest in a Class L or Class R Certificate
in violation of the restrictions in this Section 3.03, then the Administrator will provide to the Internal Revenue Service, and to the persons specified in Section 860E(e)(3) of the Code, information
needed to compute the tax imposed under Section 860E(e)(1) of the Code on transfers of residual interests to disqualified organizations.  

  

              (g) Each Person that has or that acquires any Ownership Interest in any Class L Certificate
shall be deemed by the acceptance or acquisition of such Ownership Interest to have agreed to be bound to make advances and purchase Additional Balances through funding of the Reserve Account as and to the extent set forth in Section
2.01(b) of the Sale and Servicing Agreement.  

           Section 3.04   Lost, Stolen, Mutilated or Destroyed Certificates. If (a) a mutilated Certificate is surrendered
to the Certificate Registrar, or (b) the Certificate Registrar receives evidence to its satisfaction that a Certificate has been destroyed, lost or stolen, and there is delivered to the Certificate Registrar proof of ownership satisfactory to the
Certificate Registrar, together with such security or indemnity as required by the Certificate Registrar and the Owner Trustee to save each of them harmless, then in the absence of notice to the Certificate Registrar or the Owner Trustee that such
Certificate has been acquired by a protected purchaser, the Owner Trustee shall execute on behalf of the Trust, and the Owner Trustee or the Certificate Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Certificate, a new Certificate of like tenor and Percentage Interest. In connection with the issuance of any new Certificate under this Section 3.04, the Owner Trustee or the Certificate Registrar may require the payment of
a sum sufficient to cover any expenses of the Owner Trustee or the Certificate Registrar (including any fees and expenses of counsel) and any tax or other governmental charge that may be imposed in connection therewith. Any duplicate Certificate
issued pursuant to this Section 3.04 shall constitute conclusive evidence of ownership in the Trust, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.  

           Section 3.05   Persons Deemed Certificateholders. Notwithstanding any other provision contained herein, prior to
due presentation of a Certificate for registration of transfer, the Owner Trustee, the Certificate Registrar, the Insurer or any Certificate Paying Agent may treat the holder as the owner of such Certificate for the purpose of receiving
distributions pursuant to Section 4.02 and for all other purposes whatsoever, and none of the Trust, the Owner Trustee, the Certificate Registrar, the Insurer or any Certificate Paying Agent shall be bound by any notice to the contrary.  

18 

 

 

           Section 3.06   Access to List of Certificateholders’ Names and Addresses. The Certificate Registrar shall
furnish or cause to be furnished to the Depositor, the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) or the Owner Trustee, within
15 days after receipt by the Certificate Registrar of a written request therefor from the Depositor or the Owner Trustee, in such form as the Depositor or the Owner Trustee, as the case may be, may reasonably require, of the name and address of the
holder as of the most recent Record Date. A holder, by receiving and holding a Certificate, shall be deemed to have agreed not to hold any of the Trust, the Depositor, the Certificate Registrar, the Insurer or the Owner Trustee accountable or liable
for damages by reason of the disclosure of its name and address, regardless of the source from which such information was derived.  

           Section 3.07   ERISA Restrictions. The Certificates may not be acquired or transferred to a transferee, other
than the Initial Holder or its affiliate, for or, on behalf of, an employee benefit plan or other retirement arrangement that is subject to Title I of ERISA or Section 4975 of the Code, or any entity deemed to hold the “plan assets” of the
foregoing (each, a “Benefit Plan”). Each prospective transferee, other than the Initial Holder or its affiliate, shall represent and warrant to the Certificate Registrar that it is not a Benefit Plan, in accordance with Exhibit C-1, C-2 or
E-1 or E-2 hereto, as applicable. By accepting and holding its beneficial ownership interest in its Certificate, as the case may be, the holder thereof shall be deemed to have represented and warranted that it is not a Benefit Plan.  

           Section 3.08   Maintenance of Office or Agency. The Certificate Registrar on behalf of the Trust, shall maintain
an office or offices or agency or agencies where a Certificate may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Owner Trustee in respect of the Certificates and the Transaction Documents may be
served. The Certificate Registrar shall give the Owner Trustee prompt notice, in writing, of any such notice or demand. The Certificate Registrar initially designates the Corporate Trust Office of the Administrator as its office for such purposes.
The Certificate Registrar shall give prompt written notice to the Depositor, the Owner Trustee, the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred
and is continuing) and the Certificateholders of any change in the location of the Certificate Register or any such office or agency.  

           Section 3.09   Certificate Paying Agent. 

            (a) The Owner Trustee may appoint, and hereby appoints, the Administrator as Certificate Paying Agent under this Agreement. The Certificate
Paying Agent shall make distributions to the Certificateholders from the Certificate Account pursuant to Section 4.02 hereof and, upon request, shall report the amounts of such distributions to the Owner Trustee. The Certificate Paying Agent shall
have the revocable power to withdraw funds from the Certificate Account for the purpose of making the distributions referred to above. The Administrator hereby accepts such appointment and further agrees that it will be bound by the provisions of
this Agreement and the Sale and Servicing Agreement relating to the Certificate Paying Agent and shall:  

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            (i) hold all sums held by it for the payment of amounts due with respect to the Certificates in trust for the benefit of the Person entitled
thereto until such sums shall be paid to such Person or otherwise disposed of as herein provided;  

                (ii) give the Owner Trustee notice of any default by the Trust of which a Responsible Officer of the Administrator has actual knowledge in the
making of any payment required to be made with respect to the Certificates;  

                (iii) at any time during the continuance of any such default, upon the written request of the Owner Trustee forthwith pay to the Owner Trustee
on behalf of the Trust all sums so held in Trust by such Certificate Paying Agent;  

                (iv) immediately resign as Certificate Paying Agent and forthwith pay to the Owner Trustee on behalf of the Trust all sums held by it in trust
for the payment of Certificates if at any time it ceases to meet the standards under this Section 3.09 required to be met by the Certificate Paying Agent at the time of its appointment; and  

                (v) not institute bankruptcy proceedings against the Trust in connection with this Agreement.  

  

              (b) In the event that the Administrator shall no longer be the Certificate Paying Agent hereunder, the Owner Trustee, with the consent of the
Depositor, shall appoint a successor to act as Certificate Paying Agent (which shall be a bank or trust company). The Owner Trustee shall cause such successor Certificate Paying Agent or any additional Certificate Paying Agent appointed by the Owner
Trustee to execute and deliver to the Owner Trustee an instrument in which such successor Certificate Paying Agent or additional Certificate Paying Agent shall agree with the Owner Trustee that as Certificate Paying Agent, such successor Certificate
Paying Agent or additional Certificate Paying Agent will hold all sums, if any, held by it for payment in trust for the benefit of the Certificateholders entitled thereto until such sums shall be paid to such Certificateholder. The Certificate
Paying Agent shall return all unclaimed funds to the Owner Trustee, and upon removal of a Certificate Paying Agent, such Certificate Paying Agent shall also return all funds in its possession to the Owner Trustee. The provisions of Sections 5.03,
5.04, 6.01, 6.05, 6.07, 6.08, 7.01 and 7.02 shall apply to the Administrator also in its role as Certificate Paying Agent for so long as the Administrator shall act as Certificate Paying Agent and, to the extent applicable, to any other Certificate
Paying Agent appointed hereunder. Any reference in this Agreement to the Certificate Paying Agent shall include any co-paying agent unless the context requires otherwise. Notwithstanding anything herein to the contrary, the Administrator and the
Certificate Paying Agent shall be the same entity as the Indenture Trustee under the Indenture and the Sale and Servicing Agreement unless an Indenture Event of Default has occurred and is continuing and the Indenture Trustee determines or is
advised that a conflict of interest exists or will exist if the Indenture Trustee continues to act as Administrator and Certificate Paying Agent. In such event, the Administrator and the Certificate Paying 

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Agent shall resign and the Owner Trustee, with the consent of the Depositor, shall appoint a successor Administrator in accordance with the Administration Agreement.  

           Section 3.10 Initial Beneficiary. Upon the formation of the Trust by the contribution by the Depositor
pursuant to Section 2.05 and until the issuance of the Certificates, the Depositor shall be the sole beneficiary of the Trust.  

           Section 3.11 Distributions on the Certificates. The Certificateholders will be entitled to distributions on
each Payment Date, as provided in this Agreement, the Sale and Servicing Agreement and the Indenture. With respect to any Payment Date, any amounts remaining in the Payment Account for payment to the Certificateholders pursuant to Section
5.01(a)(II) of the Sale and Servicing Agreement, to the extent such funds are received by the Owner Trustee, shall be distributed by the Owner Trustee as follows:  

            (i) with respect to any Payment Date during the Managed Amortization Period, concurrently
, to the Class B Certificateholders and the Class L Certificateholders, pro rata based on their respective Class Principal Balances; and  

                (ii) with respect to any Payment Date during the Rapid Amortization Period, concurrently
, to the Class B Certificateholders;  

  

provided, further, on the Payment Date on which the Optional Redemption Price is distributed, the portion, if any, of the Optional Redemption Price equal to the sum of the Class Principal Balance
of the Class L Certificates shall be distributed pursuant to this Section 3.11 to the Class L Certificateholders, and the portion remaining, if any, of the Optional Redemption Price equal to the Class Principal Balance of the Class B Certificates
shall be distributed pursuant to this Section 3.11 to the Class B Certificateholders, as applicable.  

With respect to each Payment Date, the Indenture Trustee, to the extent the Servicer has provided the Mortgage Loan data delivered by the Servicer to the Indenture Trustee pursuant to Section 4.09(a) of the Sale and Servicing
Agreement (the “Indenture Trustee Report”), shall deliver or make available the report to be provided by the Indenture Trustee pursuant to Section 4.09 of the Sale and Servicing Agreement for such Payment Date to each Residual
Certificateholder.  

ARTICLE IV 

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES  

           Section 4.01 Certificate Account. All of the right, title and interest of the Trust in all funds on deposit
from time to time in the Certificate Account and in all proceeds thereof shall be held for the benefit of the Certificateholders and such other persons entitled to payments therefrom. Except as otherwise expressly provided herein or in the Sale and
Servicing Agreement, the Certificate Account shall be under the sole dominion and control of the Owner Trustee for the benefit of the Certificateholders.  

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           The Certificate Account shall be subject to and established and maintained in accordance with the applicable provisions of the Sale and Servicing Agreement and the Indenture, including, without
limitation, the provisions of Section 5.07 of the Sale and Servicing Agreement regarding distributions from the Certificate Account.  

           Section 4.02 Application of Trust Funds. 

            (a) On each Payment Date, the Owner Trustee shall direct the Certificate Paying Agent to distribute to the Certificateholders, from amounts on
deposit in the Certificate Account, the distributions as provided in Sections 5.01 and 5.07 of the Sale and Servicing Agreement with respect to such Payment Date. The Owner Trustee hereby directs the Certificate Paying Agent to distribute on each
Payment Date to the Certificateholders amounts on deposit in the Certificate Account in accordance with Section 5.07 of the Sale and Servicing Agreement and the Certificate Paying Agent hereby acknowledges such direction.  

              (b) All payments to be made under this Agreement by the Certificate Paying Agent shall be made only from the income and proceeds of the Trust
Estate and only to the extent that the Certificate Paying Agent has received such income or proceeds. The Bank shall not be liable to any Certificateholder, the Indenture Trustee or the Administrator for any amounts payable pursuant to this Section
4.02 except to the extent that non-payment is due to the Owner Trustee’s acts or omissions amounting to willful misconduct or gross negligence.  

              (c) Distributions to the Certificateholders shall be subordinated to the creditors of the Trust, including, without limitation, the
Noteholders.  

           Section 4.03 Method of Payment. Subject to Section 8.01(c), distributions required to be made to the
Certificateholders on any Payment Date as provided in Section 4.02 shall be made to the Person who was the Certificateholder on the preceding Record Date either by wire transfer, in immediately available funds, to the account of such
Certificateholder at a bank or other entity having appropriate facilities therefor, if the Certificateholder shall have provided to the Certificate Registrar appropriate written instructions at least five Business Days prior to such Payment Date or,
if not, by check mailed to such Certificateholder at the address of such Certificateholder appearing in the Certificate Register.  

           Section 4.04 REMIC Related Covenants. For as long as the Trust shall exist, the Depositor, the Owner Trustee
and the Administrator, in connection with any actions taken by any such Person on behalf of the Trust, shall act in accordance herewith for the purpose of continuing treatment of each REMIC as a REMIC and avoid the imposition of tax on any REMIC.
In particular:  

            (a) The Trust shall not create, or permit the creation of, any “interests” in any REMIC within the meaning of Code Section 860D(a)(2)
other than the interests described in Section 2.11 hereof;  

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            (b) Except as otherwise provided in the Code, the Depositor shall not grant and the Trust shall not accept property unless (i) substantially
all of the property held in each REMIC constitutes either “qualified mortgages” or “permitted investments” as defined in Code Sections 860G(a)(3) and (5), respectively, and (ii) no property shall be contributed to any REMIC after
the start-up day unless such grant would not subject the Trust to the 100% tax on contributions to a REMIC after the start-up day of such REMIC imposed by Code Section 860G(d);  

              (c) The Trust shall not accept on behalf of any REMIC any fee or other compensation for services and the Owner Trustee and the Administrator
shall not knowingly accept on behalf of the Trust any income from assets other than those permitted to be held by such REMIC;  

              (d) The Trust shall not sell or permit the sale of all or any portion of the Collateral unless such sale is pursuant to a “qualified
liquidation” as defined in Code Section 860F(a)(4)(A) of the applicable REMIC;  

              (e) The Administrator shall maintain books with respect to the Trust Fund on a calendar year taxable year and on an accrual basis; and 

              (f) The Trust shall not engage in a “prohibited transaction” (as defined in Code Section 860F(a)(2)), except that, with the prior
written consent of the Depositor, the Trust may engage in the activities otherwise prohibited by the foregoing paragraphs (b), (c) and (d), provided that the Depositor shall have delivered
to the Owner Trustee, the Indenture Trustee and the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) an Opinion of Counsel to the
effect that such transaction will not result in the imposition of a tax on the REMICs and will not disqualify the REMICs from treatment as REMICs; and provided, further, that such action
will not adversely affect the rights of the Certificateholders of the Securities and will not adversely impact the ratings of the Notes.  

           Section 4.05 Segregation of Moneys; No Interest. Moneys received by or on behalf of the Owner Trustee
hereunder and deposited into the Certificate Account will be segregated except to the extent required otherwise by law or the provisions of the Sale and Servicing Agreement. The Owner Trustee shall not be liable for payment of any interest in
respect of such moneys.  

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ARTICLE V 

AUTHORITY AND DUTIES OF THE OWNER TRUSTEE; ACTION BY CERTIFICATEHOLDERS  

           Section 5.01 General Authority. 

           The Owner Trustee is authorized and directed to execute and deliver the Notes, the Certificates, and the other Transaction Documents to which it is to be a party and each certificate or other document
attached as an exhibit to or contemplated by the Transaction Documents to which the Trust is to be a party and any amendment or other agreement or instrument described herein, as evidenced conclusively by the Owner Trustee’s execution thereof,
and, on behalf of the Trust, to direct the Owner Trustee to authenticate the Notes. In addition to the foregoing, the Owner Trustee is authorized, but shall not be obligated, to take all actions required of the Trust pursuant to the Transaction
Documents.  

           Section 5.02 General Duties. 

            (a) It shall be the duty of the Owner Trustee to discharge (or cause to be discharged) all of its responsibilities pursuant to the terms of
this Agreement and the other Transaction Documents to which the Trust is a party and to administer the Trust in the interest of the Certificateholders subject to the Transaction Documents and in accordance with the provisions of this Agreement.
Notwithstanding the foregoing, the Owner Trustee shall be deemed to have discharged its duties and responsibilities hereunder and under the Transaction Documents to the extent the Administrator has agreed in the Administration Agreement, the Sale
and Servicing Agreement or this Agreement, respectively, to perform any act or to discharge any duty of the Owner Trustee or the Trust hereunder or under any Transaction Document, and the Owner Trustee shall not be held liable for the default or
failure of the Administrator to carry out its obligations under the Administration Agreement, this Agreement or the Sale and Servicing Agreement, respectively; and  

              (b) It shall be the duty of the Depositor under the Administration Agreement to obtain and preserve the Trust’s qualification to do
business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of the Indenture, the Notes, the Collateral and each other instrument and agreement included in the Trust Estate. It shall
be the duty of the Owner Trustee to cooperate with the Depositor with respect to such matters.  

           Section 5.03 Action Upon Instruction. 

            (a) Subject to Article V and in accordance with the terms of the Transaction Documents, a Certificateholder or the Insurer (so long as the
Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) may by written instruction direct the Owner Trustee in the management of the Trust, but only to the extent
consistent with the limited purpose of the Trust. Such direction may be exercised at any time by written instruction of a Certificateholder or the Insurer pursuant to this Article V.  

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            (b) Notwithstanding the foregoing, the Owner Trustee shall not be required to take any action hereunder or under any Transaction Document if
the Owner Trustee shall have reasonably determined, or shall have been advised by counsel, that such action is likely to result in liability on the part of the Owner Trustee or is contrary to the terms hereof or of any Transaction Document or is
otherwise contrary to law.  

              (c) Whenever the Owner Trustee is unable to decide between alternative courses of action permitted or required by the terms of this Agreement
or under any other Transaction Document, or in the event that the Owner Trustee is unsure as to the application of any provision of this Agreement or any other Transaction Document or any such provision is ambiguous as to its application, or is, or
appears to be, in conflict with any other applicable provision, or in the event that this Agreement permits any determination by the Owner Trustee or is silent or is incomplete as to the course of action that the Owner Trustee is required to take
with respect to a particular set of facts, the Owner Trustee may promptly give notice (in such form as shall be appropriate under the circumstances) to the Certificateholders and the Insurer requesting instruction as to the course of action to be
adopted and, to the extent the Owner Trustee acts in good faith in accordance with any written instruction of the Certificateholders or the Insurer, the Owner Trustee shall not be liable on account of such action to any Person. If the Owner Trustee
shall not have received appropriate instruction within 10 days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to,
take or refrain from taking such action not inconsistent with this Agreement or any other Transaction Document, as it shall deem to be in the best interests of the Certificateholders and the Insurer, and the Owner Trustee shall have no liability to
any Person for such action or inaction.  

           Section 5.04 No Duties Except as Specified under Specified Documents or in Instructions. The Owner 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 Estate, or to otherwise take or refrain from taking any action under, or in connection with, any
document contemplated hereby to which the Owner Trustee is a party, except as expressly provided (i) in accordance with the powers granted to and the authority conferred upon the Owner Trustee pursuant to this Agreement, and (ii) in accordance with
any document or instruction delivered to the Owner Trustee pursuant to Section 5.03; and no implied duties or obligations shall be read into this Agreement or any Transaction Document against the Owner Trustee. The Owner Trustee shall have no
responsibility for filing any financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security interest or lien granted to the Trust or to prepare or file any Securities and
Exchange Commission filing for the Trust or to record this Agreement or any Transaction Document or to prepare or file any tax return for the Trust. The Owner Trustee nevertheless agrees that it will, at its own cost and expense, promptly take all
action as may be necessary to discharge any liens on any part of the Trust Estate that result from actions by, or claims against the Bank that are not related to the ownership or the administration of the Trust Estate.  

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           Section 5.05 Restrictions. 

            (a) The Owner Trustee shall not take any action that is inconsistent with the purposes of the Trust set forth in Section 2.03. The
Certificateholders shall not direct the Owner Trustee to take action that would violate the provisions of this Section 5.05.  

              (b) The Owner Trustee shall not, except as provided herein, convey or transfer any of the Trust’s properties or assets, including those
included in the Trust Estate, to any person unless such conveyance or transfer shall not violate the provisions of the Indenture.  

           Section 5.06 Prior Notice to the Certificateholders with Respect to Certain Matters. With respect to the
following matters, the Owner Trustee shall not take action unless at least 30 days before the taking of such action, the Owner Trustee shall have notified the Certificateholders and the Insurer (so long as the Notes are Outstanding or any
Reimbursement Amounts remain due and owing to the Insurer) in writing of the proposed action and the Certificateholders shall have notified the Owner Trustee in writing prior to the 30th day after such notice is given that such Certificateholder and
the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer) has consented to such action or provided alternative direction:  

            (a) The initiation of any claim or lawsuit by the Trust (except claims or lawsuits brought in connection with the collection of cash
distributions due and owing under the Collateral) and the compromise of any action, claim or lawsuit brought by or against the Trust (except with respect to the aforementioned claims or lawsuits for collection of cash distributions due and owing
under the Collateral);  

              (b) the election by the Trust to file an amendment to the Certificate of Trust (unless such amendment is required to be filed under the
Delaware Trust Statute);  

              (c) the amendment of the Indenture by a supplemental indenture or of this Agreement or any other Transaction Document in circumstances where
the consent of any Noteholder is required;  

              (d) the amendment or other change of the Indenture by a supplemental indenture or of this Agreement or any other Transaction Document in
circumstances where the consent of any Noteholder is not required and such amendment materially adversely affects the interests of the Certificateholders;  

              (e) the amendment of the Sale and Servicing Agreement in circumstances where the consent of any Noteholder is required;  

              (f) the amendment, change or modification of the Administration Agreement, except to cure any ambiguity or to amend or supplement any provision
in a manner or add any provision that would not materially and adversely affect the interests of the Certificateholders;  

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            (g) the appointment pursuant to the Indenture of a successor Note Registrar, Paying Agent or Indenture Trustee or pursuant to this Agreement of
a successor Certificate Registrar or Certificate Paying Agent or the consent to the assignment by the Note Registrar, Paying Agent, Indenture Trustee, Certificate Registrar or Certificate Paying Agent of its obligations under the Indenture or this
Agreement, as applicable;  

              (h) the consent to the calling or waiver of any default of any Transaction Document;  

              (i) the consent to the assignment by the Indenture Trustee of its obligations under any Transaction Document;  

              (j) except as provided in Article VIII hereof, dissolve, terminate or liquidate the Trust in whole or in part;  

              (k) the merger, conversion or consolidation of the Trust with or into any other entity, or conveyance or transfer of all or substantially all
of the Trust’s assets to any other entity;  

              (l) the incurrence, assumption or guaranty by the Trust of any indebtedness other than as set forth in this Agreement;  

              (m) the taking of any action which conflicts with any Transaction Document or would make it impossible to carry on the ordinary business of the
Trust or change the Trust’s purpose and powers set forth in this Agreement;  

  
           (n) the confession of a judgment against the Trust;  

              (o) the possession of the Trust assets, or assignment of the Trust’s right to property, for other than a Trust purpose; or  

              (p) the lending of funds by the Trust to any entity.  

           In addition, the Trust shall (i) hold itself out as a separate entity from each Certificateholder and not conduct any business in the name of any Certificateholder, (ii) correct any known
misunderstanding regarding its separate identity, (iii) maintain adequate capital in light of its contemplated business operations, (iv) correct any known misunderstanding regarding its separate identity, (v) maintain appropriate minutes or other
records of all appropriate actions and shall maintain its office and bank accounts separate from any other Person or entity, (vi) conduct its own business in its own name and use stationery, invoices, checks or other business forms under its own
name and not that of any other Person, (vii) observe all formalities required under the Delaware Trust Statute and other formalities required by the Transaction Documents, (viii) conduct business with the Certificateholders or any Affiliate thereof
on an arm’s-length basis, and (ix) maintain its financial and accounting books and records separate from those of any other Person or entity. In addition, the Trust shall not (i) guarantee or become obligated for the debts of any other person
or entity, (ii) acquire the obligations or securities of its Certificateholders or its Affiliates, (iii) identify itself as a division of any other Person or entity, (iv) commingle its assets with those of any other Person or entity, (v) engage in
any 

27 

 

 

business activity in which it is not currently engaged other than as contemplated by the Transaction Documents and related documentation, (vi) form, or cause to be formed, any subsidiaries, (vii) own or acquire any asset other
than as contemplated by the Transaction Documents and related documentation, (viii) acquire the obligations or securities of its Affiliates or the Seller, (ix) hold out its credit as being available to satisfy the obligations of any other person or
entity, (x) identify itself as a division of any other person or entity, and (xi) make loans to any other person or entity or buy or hold evidence of indebtedness issued by any other person or entity. Other than as expressly set forth herein, the
Trust shall (i) pay its indebtedness, operating expenses and liabilities from its own funds, and neither incur any indebtedness nor pay the indebtedness, operating expenses and liabilities of any other entity and (ii) not engage in any dissolution,
liquidation, consolidation, merger or sale of assets. Other than as contemplated by the Transaction Documents and related documentation, the Trust shall (i) not pledge its assets for the benefit of any other person or entity and (ii) not follow the
directions or instructions of the Depositor.  

           For accounting purposes, the Trust shall be treated as an entity separate and distinct from the Certificateholders. The pricing and other material terms of all transactions and agreements to which the
Trust is a party shall be intrinsically fair to all parties thereto. This Agreement is and shall be the only agreement among the parties thereto with respect to the creation, operation and termination of the Trust.  

           The Owner Trustee shall not have the power, except upon the written direction of the Certificateholders, and to the extent otherwise consistent with the Transaction Documents, to (i) remove or replace
the Indenture Trustee, or (ii) institute a bankruptcy against the Trust. So long as the Indenture remains in effect, to the extent permitted by applicable law, the Certificateholders shall have no power to commence, and shall not commence, any
bankruptcy with respect to the Trust or direct the Owner Trustee to commence any bankruptcy with respect to the Trust.  

            (q) The Owner Trustee shall not have the power, except upon the written direction of the Insurer, or if the Notes are no longer Outstanding and
no Reimbursement Amounts remain due and owing to the Insurer or an Insurer Default has occurred and is continuing, the Certificateholders, to (i) remove the Administrator under the Administration Agreement pursuant to Section 9 thereof, (ii) appoint
a successor Administrator pursuant to Section 9 of the Administration Agreement, or (iii) except as expressly provided in the Indenture, to sell the Collateral after the termination of the Indenture. The Owner Trustee shall take the actions referred
to in the preceding sentence only upon written instructions signed and authorized by the Insurer, or if the Notes are no longer Outstanding and no Reimbursement Amounts remain due and owing to the Insurer or if an Insurer Default has occurred and is
continuing, the Certificateholders.  

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           Section 5.07 Action by the Certificateholders with Respect to Bankruptcy.  

           The Owner Trustee shall not have the power to commence or consent to a bankruptcy relating to the Trust without the prior approval of the Insurer, or if the Notes are no longer Outstanding, the
Certificateholders and the delivery to the Owner Trustee by the Certificateholders of a certificate certifying that the Insurer, or if the Notes are no longer Outstanding and no Reimbursement Amounts remain due and owing to the Insurer, the
Certificateholders reasonably believes that the Trust is insolvent. This paragraph shall survive for one year and one day following termination of this Agreement. So long as the Indenture remains in effect, the Certificateholders shall not have the
power to institute, and shall not institute, any bankruptcy with respect to the Trust or direct the Owner Trustee to take such action.  

           Section 5.08 Restrictions on the Certificateholders’ Power.  

           The Certificateholders shall not direct the Owner Trustee to take or to refrain from taking any action if such action or inaction would be contrary to any obligation of the Trust or the Owner Trustee
under this Agreement or any of the Transaction Documents or would be contrary to Section 2.03 nor shall the Owner Trustee be obligated to follow any such direction, if given.  

           Section 5.09 Insurer’s Rights Regarding Actions, Proceedings or Investigations.  

           Until all Notes and Reimbursement Amounts have been paid in full, all amounts owed to the Insurer have been paid in full, the Insurance Agreement has terminated and the Policy has been returned to the
Insurer for cancellation, the following provisions shall apply:  

            (a) Notwithstanding anything to the contrary in the Transaction Documents (but in all cases subject to Section 5.09(g) and (h)), without the
prior written consent of the Insurer, the Owner Trustee shall not (i) remove a Servicer, (ii) initiate any claim, suit or proceeding by the Trust or compromise any claim, suit or proceeding brought by or against the Trust, other than with respect to
the enforcement of any Mortgage Loan or any rights of the Trust thereunder or confess a judgment against the Trust, (iii) authorize the merger or consolidation of the Trust with or into any other statutory trust or other entity or convey or transfer
all or substantially all of the Trust’s assets to any other Person, (iv) amend the Certificate of Trust unless required by the Delaware Trust Statute or (v) amend this Agreement in accordance with Section 10.01 of this Agreement.  

              (b) Notwithstanding anything contained herein or in the other Transaction Documents to the contrary and providing that no Insurer Default has
occurred or is continuing (but in all cases subject to Section 5.09(g) and (h)), the Insurer shall have the right to participate in, to direct the enforcement or defense of, and, at the Insurer’s sole option, to institute or assume the defense
of, any action, proceeding or investigation that could adversely affect the Trust, the Trust Estate, the Collateral, or the rights or obligations of the Insurer hereunder or under the Policy or the Transaction Documents, including (without
limitation) any insolvency or bankruptcy proceeding in respect of the Servicer, the Seller, the Depositor, the Trust or any affiliate thereof. Following notice to the Indenture Trustee, the Insurer shall have exclusive right to determine, in its
sole 

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discretion, the actions necessary to preserve and protect the Trust, the Trust Estate and the Collateral. All costs and expenses of the Insurer in connection with such action, proceeding or investigation, including (without
limitation) any judgment or settlement entered into affecting the Insurer or the Insurer’s interests, shall be included in the Reimbursement Amount.  

              (c) In connection with any action, proceeding or investigation that could adversely affect the Trust, the Trust Estate, the Collateral or the
rights or obligations of the Insurer hereunder or under the Policy or the Transaction Documents, including (without limitation) any insolvency or bankruptcy proceeding in respect of the Servicer, the Originator, the Seller, the Depositor, the Trust
or any affiliate thereof, the Owner Trustee hereby agrees to cooperate with the Insurer, and the Certificateholders agree that the Owner Trustee on behalf of the Trust shall take such action as directed by, the Insurer, including (without
limitation) entering into such agreements and settlements as the Insurer shall direct, in its sole discretion, without the consent of any Noteholder.  

              (d) The Owner Trustee hereby agrees to provide the Insurer written notice of any action, proceeding or investigation of which it has Actual
Knowledge regarding this agreement or any other Transaction Document.  

              (e) Each Certificateholder, by acceptance of its Certificate, as appropriate, and the Owner Trustee agree that the Insurer shall have such
rights as set forth in this Section, which are in addition to any rights of the Insurer pursuant to the other provisions of the Transaction Documents, that the rights set forth in this Section may be exercised by the Insurer, in its sole discretion,
without the need for the consent or approval of any Certificateholder or the Owner Trustee, notwithstanding any other provision contained herein or in any of the other Transaction Documents, and that nothing contained in this Section shall be deemed
to be an obligation of the Insurer to exercise any of the rights provided for herein.  

           (f) Notwithstanding anything contained herein or in any of the other Transaction Documents to the contrary (but in all cases subject to
Sections 5.09(g) and (h)), the Owner Trustee shall not, without the Insurer’s prior written consent or unless directed by the Insurer, undertake or join any litigation or agree to any settlement of any action, proceeding or investigation
affecting the Trust, the Trust Estate, the Collateral or the rights or obligations of the Insurer hereunder or under the Policy or the Transaction Documents.  

            (g) With respect to the Insurer, the Owner Trustee undertakes to perform or observe only such of the covenants and obligations of the Owner
Trustee as are expressly set forth in this Trust Agreement, and no implied covenants or obligations with respect to the Insurer shall be read into this Trust Agreement or the other Transaction Documents against the Owner Trustee. The Owner Trustee
shall not be deemed to owe any fiduciary duty to the Insurer, and shall not be liable to any such person other than as a result of the gross negligence or willful misconduct of the Owner Trustee in the performance of its express obligations under
this Trust Agreement.  

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            (h) Whenever the Owner Trustee acts or refrains from acting pursuant to this Section 5.09, the Owner Trustee shall have all the rights,
privileges and immunities that the Owner Trustee otherwise has under this Agreement or any other Transaction Document including, but not limited to, the right to request the Insurer provide adequate indemnity reasonably acceptable to the Bank and
the Owner Trustee to hold the Bank and the Owner Trustee harmless.  

ARTICLE VI 

CONCERNING THE OWNER TRUSTEE 

           Section 6.01 Acceptance of Trust and Duties. The Owner Trustee accepts the trusts hereby created and agrees
to perform the same but only upon the terms of this Agreement. The Owner Trustee also agrees to disburse all moneys actually received by it constituting part of the Trust Estate upon the terms of this Agreement. The Bank shall not be answerable or
accountable hereunder or under any other Transaction Documents under any circumstances, except (i) for its own willful misconduct, gross negligence or bad faith, (ii) in the case of the inaccuracy of any representation or warranty contained in
Section 6.04(a), (iii) for liabilities arising from the failure by the Bank to perform obligations expressly undertaken by it in the last sentence of Section 5.04, or (iv) for taxes, fees or other charges based on or measured by any fees,
commissions or compensation received by the Bank in connection with any of the transactions contemplated by this Agreement, any other Transaction Documents or the Notes. In particular, but not by way of limitation:  

            (a) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Owner Trustee;  

              (b) The Bank shall not be liable with respect to any action taken or omitted to be taken by the Owner Trustee in accordance with the
instructions of the Certificateholders or Insurer;  

              (c) No provision of this Agreement shall require the Bank to expend or risk funds or otherwise incur any financial liability in the performance
of any of the Owner Trustee’s rights or powers hereunder or under any other Transaction Documents if the Bank shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured or provided to it;  

              (d) Under no circumstance shall the Bank be liable for indebtedness evidenced by or arising under any of the Transaction Documents, including
the principal of and interest on the Notes;  

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            (e) The Bank shall not be liable with respect to any action taken or omitted to be taken by the Depositor, the Insurer, the Administrator, the
Servicer, the Indenture Trustee, any Officer or the Certificate Paying Agent under this Agreement or any other Transaction Document or otherwise and the Bank shall not be obligated to perform or monitor the performance of any obligations or duties
under this Agreement or the other Transaction Documents which are to be performed by the Certificate Paying Agent under this Agreement, the Administrator under the Administration Agreement, the Indenture Trustee under the Indenture or by any other
Person under any of the Transaction Documents; and  

              (f) The Bank shall not be responsible for or in respect of the recitals herein, the validity or sufficiency of this Agreement or for the due
execution hereof by the Depositor or for the form, character, genuineness, sufficiency, value or validity of any of the Trust Estate or for or in respect of the validity or sufficiency of the Transaction Documents, other than the certificate of
authentication on the Certificates, and the Bank shall in no event assume or incur any liability, duty or obligation to any Noteholder, the Insurer, the Depositor or to the Certificateholders, other than as expressly provided for herein.  

           Section 6.02 Furnishing of Documents. 

           The Owner Trustee will furnish to the Administrator (for distribution to the Certificateholders), promptly upon receipt of a written request therefor, duplicates or copies of all reports, notices,
requests, demands, certificates, financial statements and any other instruments furnished to the Owner Trustee hereunder or under the Transaction Documents unless the Administrator shall have already received the same.  

           Section 6.03 Books and Records. The Owner Trustee shall keep or cause to be kept proper books of record and
account of all the transactions under this Agreement, including a record of the name and address of the Certificateholders. The Owner Trustee shall be deemed to have complied with this Section 6.03 by the appointment of the Administrator and the
Certificate Paying Agent to perform such duties hereunder.  

           Section 6.04 Representations and Warranties.  

            (a) The Bank represents and warrants to the Depositor, for the benefit of the Certificateholders and the Insurer, as follows:  

  
            (i) the Bank is a banking corporation duly formed and validly existing and in good standing under the laws of the State of Delaware and has the
power and authority to execute, deliver and perform its obligations under this Agreement and (assuming due authorization, execution and delivery of this Agreement by the Depositor and Administrator), has the power and authority as Owner Trustee to
execute and deliver the Transaction Documents and to perform its obligations thereunder and, assuming the due authorization, execution and delivery hereof by the other parties hereto, this Agreement constitutes a legal, valid and binding obligation
of the Bank or the Owner Trustee, as the case may be, enforceable 

  

32 

 

 

against the Bank or the Owner Trustee, as the case may be, in accordance with its terms, except that (a) the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating
to creditors’ rights generally and (b) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be
brought;  

                (ii) the Bank has no reason to believe that anyone authorized to act on its behalf has offered any interest in and to the Trust for sale to, or
solicited any offer to acquire any of the same from, anyone;  

                (iii) the execution, delivery and performance by the Bank, either in its individual capacity or as Owner Trustee, as the case may be, of the
Transaction Documents will not result in any violation of, or be in any conflict with, or constitute a default under any of the provisions of any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, note or bond
purchase agreement, license, judgment, order or other agreement to which the Bank is a party or by which it or any of its properties is bound;  

                (iv) the execution and delivery by the Bank of this Agreement, and the performance of its duties as Owner Trustee hereunder, do not require the
consent or approval of, the giving of notice to, or the registration with, or the taking of any other action with respect to, any governmental authority or agency of the State of Delaware (except as may be required by the Delaware Trust Statute);
and  

                (v) there are no pending or, to the best of its knowledge, threatened actions or proceedings against the Bank before any court, administrative
agency or tribunal which, if determined adversely to it, would materially and adversely affect its ability, either in its individual capacity or as Owner Trustee, as the case may be, to perform its obligations under this Agreement or the Transaction
Documents.  

  

              (b) Deutsche Bank National Trust Company, as Administrator, hereby represents and warrants to the Depositor, for the benefit of the
Certificateholders and the Insurer, that:  

  
            (i) it is a national banking association duly organized and validly existing in good standing under the laws of the United States, and has the
power and authority to execute, deliver and perform its obligations under this Agreement and, assuming the due authorization, execution and delivery hereof by the other parties hereto, this Agreement constitutes a legal, valid and binding obligation
of the Administrator, enforceable against the Administrator in accordance with its terms, except that (a) the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to
creditors’ rights generally and (b) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be
brought;  

  

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            (ii) it has taken all action necessary to authorize the execution and delivery by it of this Agreement, and this Agreement will be executed and
delivered by one of its officers who is duly authorized to execute and deliver this Agreement on its behalf; and  

                (iii) neither the execution nor the delivery by it of this Agreement nor the consummation by it of the transactions contemplated hereby nor
compliance by it with any of the terms or provisions hereof will contravene any federal governmental rule or regulation governing the banking or trust powers of the Administrator or any judgment or order binding on it, or constitute any default
under its charter documents or by-laws or any indenture, mortgage, contract, agreement or instrument to which it is a party or by which any of its properties may be bound.  

  

           Section 6.05 Reliance; Advice of Counsel. 

            (a) Except as provided in Section 6.01, the Owner Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice,
resolution, request, consent, order, certificate, report, opinion, bond or other document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties. The Owner Trustee may accept a certified copy of a
resolution of the board of directors or other governing body of any corporate or partnership entity as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect. As to any fact or
matter the manner of ascertainment of which is not specifically prescribed herein, the Owner Trustee may for all purposes hereof rely on a certificate, signed by the president or any vice president (or the general partner, in the case of a
partnership) and by the treasurer or any assistant treasurer or the secretary or any assistant secretary of the relevant party, as to such fact or matter, and such certificate shall constitute full protection to the Owner Trustee for any action
taken or omitted to be taken by it in good faith in reliance thereon.  

              (b) In its exercise or administration of the trusts and powers hereunder, including its obligations under Section 5.02(b), and in the
performance of its duties and obligations under this Agreement or the other Transaction Documents, the Owner Trustee may employ agents and attorneys and enter into agreements (including the Administration Agreement) with any of them, and the Owner
Trustee shall not be answerable for the default or misconduct of any such agents or attorneys if such agents or attorneys shall have been selected by the Owner Trustee with reasonable care. If, and to the extent, the Depositor shall have failed to
reimburse the Owner Trustee for all reasonable expenses incurred pursuant to this Section 6.05(b), as provided in Section 7.01, the Owner Trustee may seek reimbursement therefor from the Trust Estate.  

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            (c) In the administration of the trusts and performance of its duties hereunder, the Owner Trustee may consult with counsel, accountants and
other skilled Persons to be selected and employed by it, and the Owner Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the reasonable advice or opinion of any such counsel, accountants or
other skilled Persons. If, and to the extent, the Depositor shall have failed to reimburse the Owner Trustee for all reasonable expenses incurred pursuant to this Section 6.05(c), as provided in Section 7.01, the Owner Trustee may seek reimbursement
therefor from the Trust Estate.  

           Section 6.06 Not Acting in Individual Capacity. Except as provided in this Article VI, in accepting the trusts
hereby created the Owner Trustee acts solely as trustee hereunder and not in its individual capacity, and all persons having any claim against the Owner Trustee by reason of the transactions contemplated by the Transaction Documents shall look only
to the Trust Estate for payment or satisfaction thereof.  

           Section 6.07 Owner Trustee Not Liable for Certificates or Collateral. The recitals contained herein and in
the Certificates (other than the signature and countersignature of the Owner Trustee on the Certificates) shall be taken as the statements of the Depositor, and the Owner Trustee assumes no responsibility for the correctness thereof. The Owner
Trustee makes no representations as to the validity or sufficiency of this Agreement, of any Transaction Document or of the Certificates (other than the signature and countersignature of the Owner Trustee on the Certificates) or the Notes, or of any
Collateral or related documents. The Owner Trustee shall at no time have any responsibility or liability for or with respect to the legality, validity and enforceability of any Collateral, or the perfection and priority of any security interest
created by any Collateral or the maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Trust Estate or its ability to generate the payments to be distributed to Certificateholders under this Agreement or
the Noteholders under the Indenture, including, without limitation: the existence, condition and ownership of any Collateral; the existence and enforceability of any insurance thereon; the existence and contents of any Collateral on any computer or
other record thereof; the validity of the assignment of any Collateral to the Trust or of any intervening assignment; the completeness of any Collateral; the performance or enforcement of any Collateral; the compliance by the Depositor with any
warranty or representation made under any Transaction Documents or in any related document or the accuracy of any such warranty or representation or any action of the Administrator or the Indenture Trustee taken in the name of the Owner Trustee. 

           Section 6.08 Owner Trustee May Own Certificates and Notes. The Owner Trustee in its individual capacity may
become a Certificateholder (provided it is an Eligible corporation) or the owner or pledgee of Notes and may deal with the Depositor, the Administrator and the Indenture Trustee in banking transactions with the same rights as it would have if it
were not Owner Trustee.  

           Section 6.09 Licenses. The Depositor shall cause the Trust to use its best efforts to obtain and maintain the
effectiveness of any licenses required in connection with this Agreement and the other Transaction Documents and the transactions contemplated hereby and thereby until such time as the Trust shall terminate in accordance with the terms hereof. It
shall be the duty of the Owner Trustee to cooperate with the Depositor with respect to such matters.  

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           Section 6.10 Doing Business in Other Jurisdictions. Notwithstanding anything contained herein to the
contrary, neither the Bank nor the Owner Trustee shall be required to take any action in any jurisdiction other than in the State of Delaware if the taking of such action will (i) require the consent or approval or authorization or order of or the
giving of notice to, or the registration with or the taking of any other action in respect of, any state or other governmental authority or agency of any jurisdiction other than the State of Delaware; (ii) result in any fee, tax or other
governmental charge under the laws of any jurisdiction or any political subdivisions thereof in existence on the date hereof other than the State of Delaware becoming payable by the Bank or the Owner Trustee; or (iii) subject the Bank or the Owner
Trustee to personal jurisdiction in any jurisdiction other than the State of Delaware for causes of action arising from acts unrelated to the consummation of the transactions by the Bank or the Owner Trustee, as the case may be, contemplated hereby.
The Owner Trustee shall be entitled to obtain advice of counsel (which advice shall be an expense of the Trust) to determine whether any action required to be taken pursuant to this Agreement results in the consequences described in clauses (i),
(ii) and (iii) of the immediately preceding sentence. In the event that such counsel advises the Owner Trustee that such action will result in such consequences, the Owner Trustee will appoint a co-trustee pursuant to Section 9.05 hereof to proceed
with such action.  

           Section 6.11 Sarbanes-Oxley Act. Notwithstanding anything to the contrary herein or in any other Transaction
Document, the Owner Trustee shall not be required to execute, deliver or certify on behalf of the Issuer or any other Person any filings, certificates, affidavits or other instruments in connection with certifications required under the
Sarbanes-Oxley Act of 2002.  

ARTICLE VII 

INDEMNIFICATION AND COMPENSATION 

           Section 7.01 Trust Expenses. The Depositor shall pay the organizational expenses of the Trust as they may
arise or shall, upon the request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee in connection therewith. The Depositor shall also pay (or reimburse the Bank for) all reasonable expenses of
the Owner Trustee hereunder, including, without limitation, the reasonable compensation, expenses and disbursements of such agents, representatives, experts and counsel as the Owner Trustee may employ in connection with the exercise and performance
of its rights and duties under the Transaction Documents.  

           Section 7.02 Indemnification. The Depositor agrees to assume liability for, and indemnify the Bank and its
successors, assigns, officers, directors, agents and servants, against and from, any and all liabilities, obligations, losses, damages, taxes, claims, actions, suits, costs, expenses and disbursements (including reasonable legal fees and expenses)
of any kind and nature whatsoever (collectively, “Expenses”) which may be imposed on, incurred by or asserted at any time against the Bank (whether or not indemnified against by other parties) in any way relating to or arising out of this
Agreement, any Transaction Document, the Collateral, the administration of the Trust Estate or the action or inaction of the Owner Trustee hereunder, except only that Depositor shall not be required to indemnify the Bank for Expenses arising or
resulting from any of the matters described in the third sentence of Section 6.01. The indemnities contained in this Section 7.02 shall survive the resignation or termination of the Owner Trustee or the termination of this Agreement. In the event
of any claim, action or 

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proceeding for which indemnity will be sought pursuant to this Section, the Owner Trustee’s choice of legal counsel shall be subject to the approval of the Depositor, which approval shall not be unreasonably withheld. 

           Section 7.03 Compensation. The Bank shall receive as compensation for its services hereunder such fees as are
set forth in the Fee Letter Agreement between the Bank and the Depositor attached hereto as Exhibit G. Such fees shall be paid first from the Trust Fund in accordance with the priorities of payment set forth in the Sale and Servicing Agreement, and
if not so paid, then by the Depositor.  

           Section 7.04 Lien on Trust Estate. The Bank shall have a lien on the Trust Estate for any compensation or
indemnity due hereunder, such lien to be subject only to prior liens of the Indenture. The Bank shall not bring any proceedings to foreclose on such lien if and to the extent the Trust Estate is subject to the lien of the Indenture. Any amount paid
to the Owner Trustee pursuant to this Article VII shall be deemed not to be part of the Trust Estate immediately after such payment.  

ARTICLE VIII 

TERMINATION OF AGREEMENT 

           Section 8.01 Termination of Agreement. 

            (a) This Agreement (other than Article VII) shall terminate and the trust created hereby shall dissolve and terminate and the Trust Estate
shall, subject to the Indenture and Section 3808 of the Delaware Trust Statute, be distributed to the Certificateholders, and this Agreement shall be of no further force or effect, upon the later of (i) the Payment Date immediately following the
payment in full of all amounts owing to the Insurer and (ii) the earliest of (A) the Payment Date on which the aggregate Note Principal Amount of the Notes (after application of any principal payments on such date) has been reduced to zero and all
other amounts due and owing to the Noteholders have been paid in full, (B) the Payment Date immediately following the final payment or other liquidation of the last Mortgage Loan in the Trust, (C) the Payment Date immediately following the Optional
Redemption of the Notes by the Servicer, as described below and (D) the Payment Date in March 2037. The bankruptcy, liquidation or dissolution of the Certificateholder shall not operate to terminate this Agreement, nor entitle such
Certificateholder’s legal representatives to claim an accounting or to take any action or proceeding in any court for a partition or winding up of the Trust Estate, nor otherwise affect the rights, obligations and liabilities of the parties
hereto. The Insurer’s rights to indemnification shall survive the Termination of the Trust.  

              (b) Except as provided in Section 8.01(a), neither the Depositor nor the Certificateholders shall be entitled to revoke or terminate the Trust
established hereunder.  

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            (c) Notice of any termination of the Trust, specifying the Payment Date upon which each Certificateholder shall surrender its Certificate to
the Certificate Paying Agent for payment of the final distribution and cancellation, shall be given by the Certificate Paying Agent by letter to the Certificateholders, the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts
remain due and owing to the Insurer) and the Rating Agencies mailed within five Business Days of receipt of notice of the final payment on the Notes from the Indenture Trustee, stating (i) the Payment Date upon or with respect to which final payment
of the Certificate shall be made upon presentation and surrender of the Certificate at the office of the Certificate Paying Agent therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to
such Payment Date is not applicable, payments being made only upon presentation and surrender of the Certificate at the office of the Certificate Paying Agent therein specified. The Certificate Paying Agent shall give such notice to the Owner
Trustee and the Certificate Registrar at the time such notice is given to the Certificateholders. Upon presentation and surrender of the Certificate, the Certificate Paying Agent shall cause to be distributed to the Certificateholders amounts
distributable on such Payment Date pursuant to Section 5.01 and Section 5.07 of the Sale and Servicing Agreement.  

              (d) Upon the winding up of the Trust and its termination and notice from the Certificate Paying Agent, the Owner Trustee shall cause the
Certificate of Trust to be cancelled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810 of the Delaware Trust Statute.  

           Section 8.02 Additional Termination Requirements.  

            (a) In the event of an Optional Redemption in accordance with Section 8.01 of the Sale and Servicing Agreement, the Trust shall be terminated
in accordance with the following additional requirements, unless the Owner Trustee has received an Opinion of Counsel to the effect that the failure of the Trust to comply with the requirements of this Section 8.02 will not (i) result in the
imposition of taxes on “prohibited transactions” of the Trust as defined in Section 860F of the Code, or (ii) cause any REMIC created hereunder to fail to qualify as a REMIC at any time that any Securities are outstanding:  

  
            (A) the Trust shall sell or cause to be sold all of the assets of the Trust Estate
for cash in accordance with Section 8.01 of the Sale and Servicing Agreement;  

                (B) Within 90 days of such sale, the Indenture Trustee shall distribute the proceeds of such sale to the Securityholders in complete
liquidation of the Trust Estate and the REMICs then in existence; and  

                (C) The Administrator shall attach a statement to the final Federal income tax return for the REMIC then in existence stating that pursuant to
Treasury Regulation § 1.860F -1, the first day of the 90-day liquidation period for the REMICs was the date on which the Trust sold the assets of the Trust Estate.  

  

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            (b) By their acceptance of the Class L and Class R Certificates, the holders of each thereof hereby agree to the adoption of such a plan of
complete liquidation if required under paragraph (a) above and to take such action in connection therewith as may be reasonably requested by the Owner Trustee or the Administrator. 

ARTICLE IX 

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES  

           Section 9.01 Eligibility Requirements for Owner Trustee. The Owner Trustee shall at all times be a corporation
satisfying the provisions of Section 3807(a) of the Delaware Trust Statute; authorized to exercise corporate powers; having a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by Federal or state
authorities and, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing, acceptable to the Insurer in its sole reasonable discretion; and having (or
having a parent which has) a short-term debt rating of at least “A-1” or the equivalent by, or which is otherwise acceptable to, the Rating Agencies. If such corporation shall publish reports of condition at least annually, pursuant to law
or to the requirements of the aforesaid supervising or examining authority, then for the purpose of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. In case at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of this Section, the Owner Trustee shall resign immediately in the manner and with the effect specified in
Section 9.02.  

           Section 9.02 Resignation or Removal of Owner Trustee. The Owner Trustee may at any time resign and be
discharged from the trust hereby created by giving 30 days’ prior written notice thereof to the Depositor, the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer) and the Indenture
Trustee. Upon receiving such notice of resignation, the Depositor shall promptly appoint a successor Owner Trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Owner Trustee and one copy to
the successor Owner Trustee and, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer, the Insurer. If no successor Owner Trustee shall have been so appointed and have accepted appointment within 30
days after the giving of such notice of resignation, the resigning Owner Trustee may petition any court of competent jurisdiction for the appointment of a successor Owner Trustee.  

           If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of Section 9.01 and shall fail to resign after written request therefor by the Depositor, or if at any
time the Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of the Owner Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Owner Trustee or
of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Depositor may, and at the written direction of the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to
the Insurer), shall, remove the Owner Trustee. If the Depositor shall remove the Owner Trustee under the authority of the immediately preceding sentence, the Depositor shall promptly appoint a successor Owner Trustee by written
instrument 

39 

 

 

in duplicate, one copy of which instrument shall be delivered to the outgoing Owner Trustee so removed and one copy to the successor Owner Trustee and, so long as the Notes are Outstanding or any Reimbursement Amounts remain due
and owing to the Insurer, the Insurer and payment of all fees owed to the outgoing Owner Trustee.  

           Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee pursuant to any of the provisions of this Section shall not become effective until acceptance of
appointment by the successor Owner Trustee pursuant to Section 9.03 and payment of all fees and expenses owed to the outgoing Owner Trustee. The Administrator shall provide notice of such resignation or removal of the Owner Trustee to the Rating
Agencies.  

           Section 9.03 Successor Owner Trustee. Any successor Owner Trustee appointed pursuant to Section 9.02 shall
execute, acknowledge and deliver to the Administrator and the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer) and to its predecessor Owner Trustee an instrument accepting such
appointment under this Agreement, and thereupon the resignation or removal of the predecessor Owner Trustee shall become effective and such successor Owner Trustee without any further act, deed or conveyance, shall become fully vested with all the
rights, powers, duties, and obligations of its predecessor under this Agreement, with like effect as if originally named as Owner Trustee. The predecessor Owner Trustee shall upon payment of its fees and expenses deliver to the successor Owner
Trustee all documents and statements and monies held by it under this Agreement; and the Administrator and the predecessor Owner Trustee 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 Owner Trustee all such rights, powers, duties, and obligations.  

           No successor Owner Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor Owner Trustee shall be eligible pursuant to Section 9.01. 

           Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section, the Administrator shall mail notice of the successor of such Owner Trustee to all Certificateholders, the
Indenture Trustee, the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer), the Noteholders and the Rating Agencies. If the Administrator fails to mail such notice within 10 days after
acceptance of appointment by the successor Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed at the expense of the Administrator.  

           Section 9.04 Merger or Consolidation of Owner Trustee. Any Person into which the Owner Trustee may be merged
or converted or with which it may be consolidated or any Person resulting from any merger, conversion or consolidation to which the Owner Trustee shall be a party, or any Person succeeding to all or substantially all of the corporate trust business
of the Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided that such Person shall be eligible pursuant to Section 9.01, without the execution or filing of any
instrument or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding and provided, further that (so long as the Notes are Outstanding or
any 

40 

 

 

Reimbursement Amounts remain due and owing to the Insurer) the Owner Trustee shall mail notice to the Insurer.  

           Section 9.05 Appointment of Co-Trustee or Separate Trustee. Notwithstanding any other provisions of this
Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Trust Estate or any Collateral may at the time be located, and for the purpose of performing certain duties and obligations of the
Owner Trustee with respect to the Trust and the Certificates under the Sale and Servicing Agreement, the Owner Trustee shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved by the Owner Trustee
and the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) to act as co-trustee, jointly with the Owner Trustee, or separate trustee
or separate trustees, of all or any part of the Trust Estate, and to vest in such Person, in such capacity, such title to the Trust, or any part thereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights
and trusts as the Owner Trustee may consider necessary or desirable. No co-trustee or separate trustee under this Agreement shall be required to meet the terms of eligibility as a successor trustee pursuant to Section 9.01 and no notice of the
appointment of any co-trustee or separate trustee shall be required pursuant to Section 9.03.  

           The Owner Trustee hereby appoints the Indenture Trustee as Administrator for the purpose of establishing and maintaining the Certificate Account and making the distributions therefrom to the Persons
entitled thereto pursuant to Section 5.01 and Section 5.07 of the Sale and Servicing Agreement. The Owner Trustee and the Administrator each agree that upon the occurrence and continuation of an Indenture Event of Default and a determination by the
Indenture Trustee that a conflict of interest exists or will exist if the Indenture Trustee continues to act as the Administrator, the Administrator shall resign and the Owner Trustee shall appoint a successor Administrator in accordance with the
Administration Agreement.  

           Each separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provision and conditions:  

            (a) all rights, powers, duties and obligations conferred or imposed upon the Owner Trustee shall be conferred upon and exercised or performed
by the Owner 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 Owner 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 Owner 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 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 Owner Trustee;  

              (b) no trustee under this Agreement shall be personally liable by reason of any act or omission of any other trustee under this Agreement; and 

41 

 

 

            (c) the Administrator and the Owner Trustee acting jointly may at any time accept the resignation of or remove any separate trustee or
co-trustee.  

           Any notice, request or other writing given to the Owner Trustee shall be deemed to have been given to the separate trustees and co-trustees, as if given to each of them. Every instrument appointing
any separate trustee or co-trustee, other than this Agreement, shall refer to this Agreement and to the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of appointment, shall be vested with the estates specified
in its instrument of appointment, either jointly with the Owner Trustee or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the conduct of,
affecting the liability of, or affording protection to, the Owner Trustee. Each such instrument shall be filed with the Owner Trustee and a copy thereof given to the Administrator and the Insurer (so long as the Notes are Outstanding or any
Reimbursement Amounts remain due and owing to the Insurer).  

           Any separate trustee or co-trustee may at any time appoint the Owner Trustee as its Agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act
under or in respect of this Agreement on its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Owner Trustee, to the extent permitted by law, without the appointment of a new or successor trustee.  

           ARTICLE X 

MISCELLANEOUS 

           Section 10.01 Supplements and Amendments. This Agreement may be amended by the Depositor, the Administrator
and the Owner Trustee, with the consent of the Certificateholders and the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer) and with prior written notice to the Rating Agencies, but
without the consent of any of the Noteholders or the Indenture Trustee, to cure any ambiguity, to correct or supplement any provisions in this Agreement or for the purpose of adding any provisions to or changing in any manner or eliminating any of
the provisions in this Agreement or of modifying in any manner the rights of the Noteholders or the Certificateholders or to add, delete or amend any provisions to the extent necessary or desirable to comply with any requirements imposed by the Code
and the REMIC Provisions; provided, however, that such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any Noteholder, any
holder of a Certificate or adversely affect the Insurer without the consent of the Insurer, or adversely affect the tax status of the REMICs created by this Agreement. An amendment shall not be deemed to adversely affect in any material respect the
interests of any Noteholder or any Certificateholder and no opinion referred to in the preceding proviso shall be required to be delivered if the Person requesting the amendment obtains a letter from each Rating Agency stating that the amendment
would not result in the downgrading or withdrawal of the respective ratings then assigned to each of the Notes. Notwithstanding the preceding sentence, an Opinion of Counsel shall be required with respect to tax matters as set forth in this
paragraph.  

           This Agreement may also be amended from time to time by the Depositor, the Administrator, the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts 

42 

 

 

remain due and owing to the Insurer) and the Owner Trustee, with the prior written consent of the Rating Agencies and with the prior written consent of the Indenture Trustee, the holders of Notes evidencing more than 66-2/3% of
the Outstanding Amount of the Notes, and the consent of the holders, 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 any holder;
provided, however, that no such amendment shall, as evidenced by an Opinion of Counsel, adversely affect the tax status of the Trust; and provided,
further, that no such amendment shall (a) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on the Collateral or distributions that shall be required to be
made for the benefit of the Noteholders or the Certificateholders or the Insurer or (b) reduce the aforesaid percentage of the Outstanding Amount of the Notes required to consent to or to waive the requirement for the holders to consent to any such
amendment, in either case of clause (a) or (b) without the consent of the Certificateholders of all the outstanding Notes, the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer) and the
Certificateholders.  

           Notwithstanding the foregoing, no provision of Sections 2.03 or 5.06 hereof may be amended in any manner unless (i) 100% of the Outstanding Amount of the Noteholders have consented in writing thereto,
(ii) the Rating Agencies have consent in writing thereto or (iii) the Notes have been paid in full and the Indenture has been discharged.  

           Promptly after the execution of any such amendment or consent, the Administrator shall furnish written notification of the substance of such amendment or consent to the Certificateholders, the Insurer
(so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer), the Indenture Trustee and the Rating Agencies.  

           It shall not be necessary for the consent of the Certificateholders, the Noteholders or the Indenture Trustee pursuant to this Section 10.01 to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents (and any other consents of the Certificateholders provided for in this Agreement or in any other Transaction Document) and
of evidencing the authorization of the execution thereof by the Certificateholders shall be subject to such reasonable requirements as the Owner Trustee may prescribe.  

           Promptly after the execution of any amendment to the Certificate of Trust, the Owner Trustee shall cause the filing of such amendment with the Secretary of State.  

           Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the Owner Trustee and the Administrator shall be entitled to receive and rely upon an Opinion of Counsel, at the
expense of the Trust, stating that the execution of such amendment is authorized or permitted by this Agreement. Neither the Owner Trustee nor the Administrator shall be obligated to enter into any such amendment which affects the Owner
Trustee’s or Administrator’s own rights, duties or immunities under this Agreement or otherwise.  

43 

 

 

           Section 10.02 No Legal Title to Trust Estate in Certificateholders. The Certificateholders shall not have
legal title to any part of the Trust Estate and shall only be entitled to receive distributions with respect to its undivided beneficial interest therein pursuant to Section 4.02 once all amounts then owing with respect to the Notes have been paid
in accordance with the Indenture. No transfer, by operation of law of any right, title and interest of the Certificateholders in and to its undivided beneficial interest in the Trust Estate or hereunder shall operate to terminate this Agreement or
the trusts hereunder or entitle any successor transferee to an accounting or to the transfer to it of legal title to any part of the Trust Estate.  

           Section 10.03 Pledge of Collateral by Owner Trustee is Binding. The pledge of the Collateral to the Indenture
Trustee by the Trust made under the Indenture and pursuant to the terms of this Agreement shall bind the Certificateholders and shall be effective to transfer or convey the rights of the Trust and the Certificateholders in and to such Collateral to
the extent set forth in the Indenture. No purchaser or other grantee shall be required to inquire as to the authorization, necessity, expediency or regularity of such pledge or as to the application of any proceeds with respect thereto by the Owner
Trustee.  

           Section 10.04 Limitations on Rights of Others. Nothing in this Agreement, whether express or implied (except
for Section 7.04 and Section 10.11), shall be construed to give to any Person other than the Owner Trustee and the Certificateholders any legal or equitable right in the Trust Estate or under or in respect of this Agreement or any covenants,
conditions or provisions contained herein.  

           Section 10.05 Notices. Unless otherwise expressly specified or permitted by the terms hereof, all notices
shall be in writing and delivered by hand, by courier or mailed by certified mail, postage prepaid, (a) if to the Owner Trustee or the Trust, addressed to it at the Owner Trustee’s Corporate Trust Office or to such other address as the Owner
Trustee may have set forth in a written notice to the Certificateholders and the Depositor addressed to it at the address set forth for such Certificateholders in the Certificate Register; (b) if to the Administrator, Deutsche Bank National Trust
Company, 1761 East St. Andrew Place, Santa Ana, California 92705, Attention: Trust Administration IN06H4; (c) if to the Depositor, IndyMac ABS, Inc., 3465 East Foothill Boulevard, Pasadena, California 91107, Attention: Secondary Marketing
-Transaction Management; and (d) if to the Insurer, MBIA Insurance Corporation, 113 King Street, Armonk, New York 10504, Attention: IPM-SF. Whenever any notice in writing is required to be given by the Owner Trustee or the Administrator, such
notice shall be deemed given and such requirement satisfied if such notice is mailed by certified mail, postage prepaid, addressed as provided above.  

           Section 10.06 Severability. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.  

           Section 10.07 Separate Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.  

44 

 

 

           Section 10.08 Successors and Assigns. All representations, warranties, covenants and agreements contained
herein shall be binding upon, and inure to the benefit of, the Owner Trustee and its successors and assigns and the Depositor, the Insurer and the Certificateholders and its respective successors, all as herein provided. This Agreement shall also
inure to the benefit of the Insurer. The Insurer shall be entitled to rely on and enforce all covenants in this Agreement which confers rights upon the Insurer. Any request, notice, direction, consent, waiver or other instrument or action by the
Certificateholders shall bind the successors of such Certificateholder.  

           Section 10.09 Headings. The headings of the various Articles and Sections herein are for convenience of
reference only and shall not define or limit any of the terms or provisions hereof.  

           Section 10.10 Governing Law. THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO THE CONFLICT OF LAWS PROVISIONS THEREOF, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.  

           Section 10.11 Third Party Beneficiary. The parties hereto acknowledge that the Insurer is an express third
party beneficiary hereof entitled to enforce the provisions hereof as if it were actually a party hereto. Nothing in this Section 10.11 however shall be construed to mitigate in any way, the fiduciary responsibilities of the Owner Trustee to the
beneficiaries of the Trust.  

           Section 10.12 No Petition. 

            (a) The Owner Trustee and the Administrator, by entering into this Agreement, the Certificateholders, by accepting a Certificate, and the
Indenture Trustee and each Noteholder, by accepting the benefits of this Agreement, hereby covenant and agree that they will not at any time institute against the Depositor or the Trust, or join in any institution against the Depositor or the Trust
of, any bankruptcy under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Certificates, the Notes, this Agreement or any of the other Transaction Documents.  

              (b) The Depositor shall not be liable for the default or misconduct of the Administrator, the Owner Trustee, the Indenture Trustee or the
Certificate Paying Agent under any of the Transaction Documents or otherwise and the Depositor shall have no obligation or liability to perform the obligations of the Trust under this Agreement or the Transaction Documents that are required to be
performed by the Administrator under the Administration Agreement or the Indenture Trustee under the Indenture.  

45 

 

 

            (c) Notwithstanding any provisions contained in this Agreement to the contrary, the Depositor shall not be obligated to pay any amount pursuant
to this Agreement unless the Depositor has received funds which may be used to make such. Any amount which the Depositor does not pay pursuant to the operation of the preceding sentence shall not constitute a claim (as defined in § 101 of the
Bankruptcy Code) against or corporate obligation of the Depositor for any such insufficiency unless and until the Depositor satisfies the provisions of such preceding sentence.  

           Section 10.13 No Recourse. The Certificateholders by accepting a Certificate acknowledges that such
Certificate represents a beneficial interest in the Trust only and does not represent an interest in or an obligation of the Depositor, the Administrator, the Insurer, the Owner Trustee, any co-trustee, the Bank or any Affiliate thereof (other than
the Trust) and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated in this Agreement, the Certificates or the other Transaction Documents.  

ARTICLE XI 

OFFICERS  

           Section 11.01 Appointment of Officers. The Trust may have one or more Officers who are hereby empowered to
take and are responsible for performing all ministerial duties on behalf of the Trust pursuant to this Agreement and the other Transaction Documents, including, without limitation, the execution of the Officers’ Certificate (as defined in the
Indenture), the Trust Order (as defined in the Indenture), the Trust Request (as defined in the Indenture), the annual compliance report required under Section 3.09 of the Indenture, and any annual reports, documents and other reports which the
Trust is required to file with the Securities and Exchange Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended. Each of the Chairman of the Board, the Chief Executive Officer, the President, each Senior Vice
President and each Vice President of the Depositor is hereby appointed as an Officer of the Trust. The Depositor shall promptly deliver to the Owner Trustee and the Indenture Trustee a list of its officers who shall become the Officers of the Trust
pursuant to this Section 11.01.  

           Section 11.02 Officers to Provide Information to the Owner Trustee. It shall be the duty of each Officer to
keep the Owner Trustee reasonably and promptly informed as to material events relating to the Trust, including, without limitation, all claims pending or threatened against the Trust, the purchase and sale of any material portion of the Trust Estate
and the execution by such Officer on behalf of the Trust of any material agreements or instruments.  

46 

 

 

ARTICLE XII 

COMPLIANCE WITH REGULATION AB 

           Section 12.01 Intent of the Parties; Reasonableness. The Depositor and the Owner Trustee acknowledge and
agree that the purpose of this Article XII is to facilitate compliance by the Depositor with the provisions of Regulation AB and related rules and regulations of the Commission. The Depositor shall not exercise its right to request delivery of
information or other performance under these provisions other than in good faith, or for purposes other than compliance with the Securities Act, the Exchange Act and the rules and regulations of the Commission under the Securities Act and the
Exchange Act. The Owner Trustee acknowledges that interpretations of the requirements of Regulation AB may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the
mortgage-backed securities markets, advice of counsel, or otherwise, and agrees to comply with reasonable requests made by the Depositor in good faith for delivery of information under these provisions on the basis of evolving interpretations of
Regulation AB. The Owner Trustee shall cooperate in good faith with any reasonable request by the Depositor for information regarding the Owner Trustee that is necessary or required, in the reasonable good faith determination of the Depositor, to
permit the Depositor to comply with the provisions of Regulation AB.  

           Section 12.02 Additional Representations and Warranties of the Owner Trustee.  

            (a) The Owner Trustee shall be deemed to represent and warrant to the Depositor as of the date hereof and on each date on which information is
provided to the Depositor under Sections 12.01, 12.02(b) or 12.03 that, except as disclosed in writing to the Depositor prior to such date: (i) it is not aware and has not received notice that any default, early amortization or other performance
triggering event has occurred as to any other Securitization Transaction due to any default of the Owner Trustee; (ii) there are no aspects of its financial condition that could have a material adverse effect on the performance by it of its trustee
obligations under this Trust Agreement or any other Securitization Transaction as to which it is a trustee; (iii) there are no material legal or governmental proceedings pending (or known to be contemplated) against it that would be material to
Noteholders; (iv) there are no relationships or transactions (as described in Item 1119(b) of Regulation AB) relating to the Owner Trustee with respect to the Depositor or any sponsor, issuing entity, servicer, trustee, originator, significant
obligor, enhancement or support provider or other material transaction party (as each of such terms are used in Regulation AB) relating to the Securitization Transaction contemplated by this Trust Agreement, as identified by the Depositor to the
Owner Trustee in writing as of the Closing Date (each, a “Transaction Party”) that are outside the ordinary course of business or on terms other than would be obtained in an arm’s length transaction with an unrelated third party,
apart from the Securitization Transaction, and that are material to the investors’ understanding of the Notes; and (v) the Owner Trustee is not an affiliate (as contemplated by Item 1119(a) of Regulation AB) of any Transaction Party. The
Depositor shall notify the Owner Trustee of any change in the identity of a Transaction Party after the Closing Date at least five (5) Business Days prior to January 31 of each calendar year.  

47 

 

 

            (b) If so requested by the Depositor on any date following the Closing Date, the Owner Trustee shall, within five (5) Business Days following
such request, confirm in writing the accuracy of the representations and warranties set forth in paragraph (a) of this Section or, if any such representation and warranty is not accurate as of the date of such confirmation, provide the pertinent
facts, in writing, to the Depositor. Any such request from the Depositor shall not be given more than once each calendar quarter, unless the Depositor shall have a reasonable basis for questioning the accuracy of any of the representations and
warranties.  

           Section 12.03 Information to Be Provided by the Owner Trustee.  

            (a) For so long as the Notes are outstanding, for the purpose of satisfying the Depositor’s reporting obligation under the Exchange Act
with respect to the Notes, the Owner Trustee shall provide to the Depositor a written description of (i) the commencement of, a material development in or, if applicable, the termination of, any and all legal proceedings against the Owner Trustee or
any and all proceedings of which any property of the Owner Trustee is the subject, that would be material to Noteholders; and (ii) any such proceedings known to be contemplated by governmental authorities that would be material to Noteholders. The
Owner Trustee shall also notify the Depositor, in writing, as promptly as practicable following notice to or discovery by a Responsible Officer of the Owner Trustee of any material changes to proceedings described in the preceding sentence. In
addition, the Owner Trustee will furnish to the Depositor, in writing, the necessary disclosure regarding the Owner Trustee describing such proceedings required to be disclosed under Item 1117 of Regulation AB, for inclusion in reports filed by or
on behalf of the Depositor pursuant to the Exchange Act. The Depositor will allow the Owner Trustee to review any disclosure relating to material litigation against the Owner Trustee prior to filing such disclosure with the Commission to the extent
the Depositor changes the information provided by the Owner Trustee. Any descriptions required with respect to legal proceedings, as well as updates to previously provided descriptions, under this Section 12.03(a) shall be given no later than five
(5) Business Days prior to the Determination Date following the month in which the relevant event occurs. 

              (b) For so long as the Notes are outstanding, for the purpose of satisfying the Depositor’s reporting obligation under the Exchange Act
with respect to the Notes, the Owner Trustee shall, no later than January 31 of each calendar year, (i) provide to the Depositor such information regarding the Owner Trustee as is required for the purpose of compliance with Item 1119 of Regulation
AB; provided, however, the Owner Trustee shall not be required to provide such information in the event that there has been no change to the information previously provided by the Owner Trustee to the Depositor; and (ii) as promptly as practicable
following notice to or discovery by a Responsible Officer of the Owner Trustee of any changes to such information, provide to the Depositor, in writing, such updated information. Such information shall include, at a minimum, a description of any
affiliation between the Owner Trustee and any of the following parties to the Securitization Transaction contemplated by this Trust Agreement, as such parties and their affiliates are identified to the Owner Trustee by the Depositor in connection
with the closing of each Securitization Transaction or, if there has been a 

48 

 

 

change in any such party, as such party is identified by the Depositor in a written notice to the Owner Trustee at least five (5) Business Days prior to January 31 of each calendar year:  

	  	
(1 
	
)   
	
the sponsor;   

	  	  	  	  
	  	
(2 
	
)   
	
any depositor;   

	  	  	  	  
	  	
(3 
	
)   
	
the issuing entity;   

	  	  	  	  
	  	
(4 
	
)   
	
any servicer;   

	  	  	  	  
	  	
(5 
	
)   
	
any other trustee;   

	  	  	  	  
	  	
(6 
	
)   
	
any originator;   

	  	  	  	  
	  	
(7 
	
)   
	
any significant obligor;   

	  	  	  	  
	  	
(8 
	
)   
	
any enhancement or support provider; and   

	  	  	  	  
	  	
(9 
	
)   
	
any other material party related to any Securitization Transaction.   

           In addition, the Owner Trustee shall provide a description of whether there is, and if so the general character of, any business relationship, agreement, arrangement, transaction or understanding
between the Owner Trustee and any above-listed party that is entered into outside the ordinary course of business or is on terms other than would be obtained in an arm’s length transaction with an unrelated third party, apart from the
Securitization Transaction contemplated by this Trust Agreement, that currently exists or that existed during the past two years and that is material to an investor’s understanding of the Notes.  

            (c) As of the related Payment Date with respect to each Report on Form 10-D with respect to the Notes filed by or on behalf of the Depositor,
and as of March 15 preceding the date each Report on Form 10-K with respect to the Notes is filed, the Owner Trustee shall be deemed to represent and warrant that any information previously provided by the Owner Trustee under this Article XII is
materially correct and does not have any material omissions unless the Owner Trustee has provided an update to such information.  

           Section 12.04 Indemnification; Remedies. 

            (a) The Owner Trustee shall indemnify the Depositor, each affiliate of the Depositor, the Servicer and each affiliate of the Servicer, and the
respective present and former directors, officers, employees and agents of each of the foregoing, and shall hold each of them harmless from and against any claims, losses, liabilities (including penalties), actions, suits, judgments, demands,
damages, costs and expenses (including reasonable fees and expenses of attorneys or, as necessary, consultants and auditors and reasonable costs of investigations) that any of them may sustain arising out of or based upon:  

49 

 

 

            (1) (A) any untrue statement of a material fact contained or alleged to be contained in any information, report, certification or other
material provided under this Article XII by or on behalf of the Owner Trustee (collectively, the “Owner Trustee Information”), or (B) the omission or alleged omission to state in
the Owner Trustee Information a material fact required to be stated in the Owner Trustee Information or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; or  

                (2) any failure by the Owner Trustee to deliver any information, report, certification or other material when and as required under this
Article XII.  

  

              (b) In the case of any failure of performance described in clause (2) of Section 12.04(a), the Owner Trustee shall (i) promptly reimburse the
Depositor for all costs reasonably incurred by the Depositor in order to obtain the information, report, certification or other material not delivered by the Owner Trustee as required and (ii) cooperate with the Depositor to mitigate any damages
that may result from such failure.  

              (c) The Depositor and the Servicer shall indemnify the Owner Trustee, each affiliate of the Owner Trustee and the respective present and former
directors, officers, employees and agents of the Owner Trustee, and shall hold each of them harmless from and against any losses, damages, penalties, fines, forfeitures, legal fees and expenses and related costs, judgments, and any other costs, fees
and expenses that any of them may sustain arising out of or based upon (i) any untrue statement of a material fact contained or alleged to be contained in any information provided under this Trust Agreement by or on behalf of the Depositor or the
Servicer for inclusion in any report filed with Commission under the Exchange Act (collectively, the “IndyMac Information”), or (ii) the omission or alleged omission to state in the IndyMac Information a material fact required to be stated
in the IndyMac Information or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  

              (d) Notwithstanding any provision in this Section 12.04 to the contrary, the parties agree that none of the Owner Trustee, the Depositor or the
Servicer shall be liable to the other for any consequential or punitive damages whatsoever, whether in contract, tort (including negligence and strict liability), or any other legal or equitable principle; provided, however, that such limitation
shall not be applicable with respect to third party claims made against a party.  

50 

 

 

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

	  
	INDYMAC ABS, INC.,   
	  
	as Depositor 
	  

	  

	  
	By:  /s/ Jill Jacobson_________________________ 
	  	
Name:   
	
Jill Jacobson   

	  	
Title:   
	
Vice President   

	  

	  

	  

	  
	WILMINGTON TRUST COMPANY, 
	  
	as Owner Trustee 
	  

	  

	  
	By:  /s/ J. Christopher Murphy_________________   
	  	
Name:   
	
J. Christopher Murphy   

	  	
Title:   
	
Financial Services Officer   

	  

	  

	  

	
  
	DEUTSCHE BANK NATIONAL 
	  
	TRUST COMPANY,   
	  
	not in its individual capacity 
	  
	but solely as Administrator 
	  

	  

	  
	By:  /s/ Amy Stoddard_______________________ 
	  	
Name:   
	
Amy Stoddard   

	  	
Title:   
	
Authorized Signer   

  

 

	
S-1   
	
IndyMac Home Equity Mortgage Loan   

	  

	
Asset-Backed Trust, Series 2006-H4   

	  

	
Amended and Restated Trust Agreement   

 

 

EXHIBIT A-1 

FORM OF CLASS B CERTIFICATE 

           THIS CLASS B CERTIFICATE IS A REMIC REGULAR INTEREST CERTIFICATE. THIS CLASS B CERTIFICATE REPRESENTS CERTAIN RESIDUAL RIGHTS TO PAYMENT TO THE EXTENT DESCRIBED HEREIN AND IN THE TRUST AGREEMENT
REFERRED TO HEREIN.  

           THIS CLASS B CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
CLASS B CERTIFICATE WITHOUT SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION WHICH DOES NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3.03 OF THE TRUST AGREEMENT REFERRED TO
HEREIN.  

           NO TRANSFER OF THIS CLASS B CERTIFICATE MAY BE MADE UNLESS THE TRANSFEREE PROVIDES A REPRESENTATION LETTER FROM THE TRANSFEREE OF SUCH CLASS B CERTIFICATE, ACCEPTABLE TO AND IN FORM AND SUBSTANCE
SATISFACTORY TO THE OWNER TRUSTEE AND THE INSURER, TO THE EFFECT THAT SUCH TRANSFEREE IS NOT ACQUIRING THE CLASS B CERTIFICATE FOR, OR ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO TITLE I 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 (THE “CODE”), OR ANY ENTITY DEEMED TO HOLD THE “PLAN ASSETS” OF THE FOREGOING, WHICH
REPRESENTATION LETTER SHALL NOT BE AN EXPENSE OF THE OWNER TRUSTEE OR THE INSURER.  

           NO TRANSFER OF A CLASS B CERTIFICATE SHALL BE MADE UNLESS SUCH TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS
OR IS MADE IN ACCORDANCE WITH SAID ACT AND LAWS. EXCEPT FOR THE INITIAL ISSUANCE OF THE CLASS B CERTIFICATE TO THE INITIAL HOLDER, THE OWNER TRUSTEE SHALL REQUIRE THE TRANSFEREE TO EXECUTE AN INVESTMENT LETTER ACCEPTABLE TO AND IN FORM AND
SUBSTANCE SATISFACTORY TO THE OWNER TRUSTEE AND THE INSURER CERTIFYING TO THE OWNER TRUSTEE AND THE INSURER THE FACTS SURROUNDING SUCH TRANSFER, WHICH INVESTMENT LETTER SHALL NOT BE AN EXPENSE OF THE OWNER TRUSTEE, OR THE INSURER. THE HOLDER OF A
CLASS B CERTIFICATE DESIRING TO EFFECT SUCH TRANSFER SHALL, AND DOES HEREBY AGREE TO, INDEMNIFY THE DEPOSITOR, THE OWNER TRUSTEE, THE CERTIFICATE REGISTRAR AND THE INSURER AGAINST ANY LIABILITY THAT MAY RESULT IF THE TRANSFER IS NOT SO EXEMPT OR IS
NOT MADE IN ACCORDANCE WITH SUCH FEDERAL AND STATE LAWS.  

A-1-1 

 

 

           THIS CLASS B CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

  

  

A-1-2 

 

 

INDYMAC HOME EQUITY MORTGAGE LOAN ASSET-BACKED TRUST, 

SERIES 2006-H4 

CLASS B CERTIFICATE  

	
 
	
Class: B   
	
Cut-off Date: December 12, 2006   

	
Percentage Interest: [_____]%    	
Issue Date: December 21, 2006   

	
First Payment Date: January 25, 2007   
	  

	
 

 

No. 1  

INDYMAC ABS, INC. 

Class B Certificateholder 

  

  

A-1-3 

 

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION  

This is one of the Class B Certificates referred to in the within-mentioned Trust Agreement. 

           WILMINGTON TRUST COMPANY, 

not in its individual capacity but solely as Owner Trustee  

           By: ______________________________

Authenticating Agent 

  

  

  

A-1-4 

 

 

           The Trust was created pursuant to a Trust Agreement dated December 6, 2006, between IndyMac ABS, Inc. (the “Depositor”) and Wilmington Trust Company, as owner trustee (the
“Owner Trustee”), as amended and restated by the Amended and Restated Trust Agreement, dated December 21, 2006 (as further amended, modified or supplemented, the
“Trust Agreement”) between the Depositor, Deutsche Bank National Trust Company, as administrator (the “Administrator
”) and the Owner Trustee, a summary of certain of the pertinent provisions of which is set forth below. To the extent not otherwise defined herein, the capitalized terms used herein have the meanings assigned to them in the Trust
Agreement.  

           This Class B Certificate is one of the duly authorized Class B Certificates designated as “IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4 Asset-Backed Certificates, Class
B” (herein called, together with the IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4 Asset-Backed Certificates, Class L and the IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4 Asset-Backed Certificates,
Class R, the “Certificates”). Also issued by the Trust under the Indenture are Notes (the “Notes”). These Class
B Certificates are issued under and are subject to the terms, provisions and conditions of the Trust Agreement, to which Trust Agreement the holder of this Class B Certificate by virtue of the acceptance hereof assents and by which such holder is
bound. The property of the Trust includes a pool of certain adjustable rate home equity revolving line of credit loans (the “Mortgage Loans”) (including any Additional Balances
related thereto).  

           Under the Sale and Servicing Agreement, dated as of December 12, 2006, between the Issuer, the Depositor, the Servicer and the Indenture Trustee, there will be distributed on the 25
th day of each month or, if such 25th day is not a Business Day, the next Business Day (the “Payment
Date”), commencing in January 2007 to the Person in whose name this Class B Certificate is registered at the close of business on the last Business Day of the preceding calendar month (the “
Record Date”) such Class B Certificateholder’s Percentage Interest in the amount to be distributed to Class B Certificateholders on such Payment Date.  

           The holder of this Class B Certificate acknowledges and agrees that its rights to receive distributions in respect of this Class B Certificate are subordinated to the rights of the Noteholders as
described in the Sale and Servicing Agreement, the Indenture and the Trust Agreement, as applicable.  

           The holder of this Class B Certificate, by acceptance of this Class B Certificate, specifically acknowledges that it has no right to or interest in any monies at any time held in the Trust Estate
prior to the release of such monies pursuant to Section 5.01(a)(II) of the Sale and Servicing Agreement, such monies being held in trust for the benefit of the Noteholders and the Insurer. Notwithstanding the foregoing, in the event that it is ever
determined that the monies held in the Trust Estate constitute a pledge of collateral, then the provisions of the Sale and Servicing Agreement shall be considered to constitute a security agreement and the Certificateholder of this Class B
Certificate hereby grants to the Indenture Trustee and the Insurer a first priority perfected security interest in such amounts. In addition, each Class B Certificateholder, by acceptance of its Class B Certificate, hereby appoints the Depositor as
its agent to pledge a first priority perfected security interest in the Trust Estate and agrees to execute 

A-1-5 

 

 

and deliver such instruments of conveyance, assignment, grant, confirmation, etc., as well as any financing statements, in each case as the Insurer shall consider reasonably necessary in order to perfect the Indenture
Trustee’s security interest in the Trust Estate.  

           Each Class B Certificateholder, by its acceptance of a Class B Certificate, covenants and agrees that such Class B Certificateholder will not at any time institute against the Trust, the Seller or the
Depositor, or join in any institution against the Trust, the Seller or the Depositor 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 Class B Certificates, the Trust Agreement or any of the Transaction Documents.  

           Distributions on this Class B Certificate will be made as provided in the Sale and Servicing Agreement and the Indenture by the Owner Trustee by wire transfer to the Class B Certificateholder of
record in the Certificate Register without the presentation or surrender of this Class B Certificate or the making of any notation hereon. Except as otherwise provided in the Trust Agreement and notwithstanding the above, the final distribution on
this Class B Certificate will be made after due notice by the Owner Trustee of the pendency of such distribution and only upon presentation and surrender of this Class B Certificate at the office or agency maintained for the purpose by the Owner
Trustee in the Corporate Trust Office.  

           Unless the certificate of authentication hereon shall have been executed by an authorized officer of the Owner Trustee, by manual signature, this Class B Certificate shall not entitle the holder
hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.  

           The Class B Certificates do not represent an obligation of, or an interest in, the Seller, the Depositor, a Servicer, the Servicer, the Insurer, the Owner Trustee or any Affiliates of any of them and
no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated herein or in the Trust Agreement, the Indenture or the Transaction Documents. In addition, this Class B Certificate is not guaranteed
by any governmental agency or instrumentality and is limited in right of payment to certain collections with respect to the Mortgage Loans, as more specifically set forth herein, in the Sale and Servicing Agreement and in the Indenture. A copy of
each of the Sale and Servicing Agreement and the Trust Agreement may be examined during normal business hours at the principal office of the Depositor, and at such other places, if any, designated by the Depositor, by any Class B Certificateholder
upon written request.  

           The Trust Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor, the Administrator and the rights of
the Class B Certificateholders under the Trust Agreement at any time by the Depositor, the Administrator and the Owner Trustee with the prior written consent of the Insurer and with the consent of the holders of the Notes and the Class B
Certificates evidencing not less than a majority of the outstanding Notes and the Class B Certificates. Any such amendment shall be conclusive and binding upon the holder of this Class B Certificate and on all future holders of this Class B
Certificate and of any Class B Certificate issued upon the transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent is made upon this 

A-1-6 

 

 

Class B Certificate. The Trust Agreement also permits the amendment thereof, in certain limited circumstances, without the consent of the holders of any of the Class B Certificates (other than the Initial Holder, or the Insurer). 

           As provided in the Trust Agreement and subject to certain limitations therein set forth, the transfer of this Class B Certificate is registrable in the Certificate Register upon surrender of this
Class B Certificate for registration of transfer at the offices or agencies of the Certificate Registrar maintained by the Owner Trustee in the Corporate Trust Office, accompanied by a written instrument of transfer in form satisfactory to the Owner
Trustee and the Certificate Registrar duly executed by the holder hereof or such holder’s attorney duly authorized in writing, and thereupon one or more new Class B Certificates in authorized denominations evidencing the same aggregate interest
in the Trust will be issued to the designated transferee. The initial Certificate Registrar appointed under the Trust Agreement is Deutsche Bank National Trust Company.  

           The Class B Certificates are issuable only as registered Class B Certificates without coupons in minimum Percentage Interests of 1%. As provided in the Trust Agreement and subject to certain
limitations therein set forth, Class B Certificates are exchangeable for new Class B Certificates in authorized denominations evidencing the same aggregate denomination, as requested by the holder surrendering the same. No service charge will be
made for any such registration of transfer or exchange, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith.  

           The Owner Trustee, the Certificate Registrar, the Insurer and any agent of the Owner Trustee, the Certificate Registrar, or the Insurer may treat the person in whose name this Class B Certificate is
registered as the owner hereof for all purposes, and none of the Owner Trustee, the Certificate Registrar, the Insurer nor any such agent shall be affected by any notice to the contrary.  

           The obligations and responsibilities created by the Trust Agreement and the Trust created thereby shall terminate upon the payment to Class B Certificateholders of all amounts required to be paid to
them pursuant to the Trust Agreement, the Indenture and the Sale and Servicing Agreement and the disposition of all property held as part of the Trust. The Servicer may at its option redeem the Notes at a price and upon the satisfaction of certain
conditions specified in Section 8.01 of the Sale and Servicing Agreement, and if all of the Notes are redeemed, such redemption may result in termination of the Trust which may effect a transfer of the Class B Certificates; however, such right of
purchase is exercisable, subject to certain restrictions set forth in the Sale and Servicing Agreement.  

           The recitals contained herein shall be taken as the statements of the Depositor or the Servicer, as the case may be, and the Owner Trustee assumes no responsibility for the correctness thereof. The
Owner Trustee makes no representations as to the validity or sufficiency of this Class B Certificate or of any Mortgage Loan or related document.  

           Unless the certificate of authentication hereon shall have been executed by an authorized officer of the Owner Trustee, by manual or facsimile signature, this Class B Certificate shall not 

A-1-7 

 

 

entitle the holder hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.  

  

  

A-1-8 

 

 

           IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not in its individual capacity, has caused this Class B Certificate to be duly executed.  

	  
	  	INDYMAC HOME EQUITY MORTGAGE LOAN 
	  
	  	ASSET-BACKED TRUST, SERIES 2006-H4 
	  

	  

	  	
By:   
	
WILMINGTON TRUST COMPANY, not   

	  
	  	in its individual capacity but solely as 
	  	  

	
Owner Trustee   

	  

	  	  	  
	  	
By:   
	  

		
	

 

	  	  

	
Name:   

	  	  

	
Title:   

 

Dated: __________, 2006 

  

  

A-1-9 

 

 

ASSIGNMENT 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

  
PLEASE INSERT SOCIAL SECURITY 

OR OTHER IDENTIFYING NUMBER 

OF ASSIGNEE  

	
 
	(Please print or type name and address, including postal zip code, of assignee) 
	  

          the within Class B Certificate, and all rights thereunder, hereby irrevocably constituting and appointing  

_________________________________ Attorney to transfer said Class B Certificate on the books of the Certificate Registrar, 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 Class B Certificate 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 Certificate Registrar, which requirements include membership or participation in STAMP or such other “signature
guarantee program” as may be determined by the Certificate Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.  
	  

A-1-10 

 

 

EXHIBIT A-2 

FORM OF CLASS L CERTIFICATE 

           THIS CLASS L CERTIFICATE IS A REMIC RESIDUAL INTEREST CERTIFICATE. THIS CLASS L CERTIFICATE REPRESENTS CERTAIN RESIDUAL RIGHTS TO PAYMENT TO THE EXTENT DESCRIBED HEREIN AND IN THE TRUST AGREEMENT
REFERRED TO HEREIN.  

           THIS CLASS L CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON.  

           THIS CLASS L CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
CLASS L CERTIFICATE WITHOUT SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION WHICH DOES NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3.03 OF THE TRUST AGREEMENT REFERRED TO
HEREIN.  

           NO TRANSFER OF THIS CLASS L CERTIFICATE MAY BE MADE UNLESS THE TRANSFEREE PROVIDES A REPRESENTATION LETTER FROM THE TRANSFEREE OF SUCH CLASS L CERTIFICATE, ACCEPTABLE TO AND IN FORM AND SUBSTANCE
SATISFACTORY TO THE OWNER TRUSTEE AND THE INSURER, TO THE EFFECT THAT SUCH TRANSFEREE IS NOT ACQUIRING THE CLASS L CERTIFICATE FOR, OR ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO TITLE I 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 (THE “CODE”), OR ANY ENTITY DEEMED TO HOLD THE “PLAN ASSETS” OF THE FOREGOING, WHICH
REPRESENTATION LETTER SHALL NOT BE AN EXPENSE OF THE OWNER TRUSTEE OR THE INSURER.  

           NO TRANSFER OF A CLASS L CERTIFICATE SHALL BE MADE UNLESS SUCH TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS
OR IS MADE IN ACCORDANCE WITH SAID ACT AND LAWS. EXCEPT FOR THE INITIAL ISSUANCE OF THE CLASS L CERTIFICATE TO THE INITIAL HOLDER, THE OWNER TRUSTEE SHALL REQUIRE THE TRANSFEREE TO EXECUTE AN INVESTMENT LETTER ACCEPTABLE TO AND IN FORM AND SUBSTANCE
SATISFACTORY TO THE OWNER TRUSTEE AND THE INSURER CERTIFYING TO THE OWNER TRUSTEE AND THE INSURER THE FACTS SURROUNDING SUCH TRANSFER, WHICH INVESTMENT LETTER SHALL NOT BE AN EXPENSE OF THE OWNER TRUSTEE, OR THE INSURER. THE HOLDER OF A CLASS L
CERTIFICATE DESIRING TO EFFECT SUCH TRANSFER SHALL, AND DOES HEREBY AGREE TO, INDEMNIFY THE DEPOSITOR, THE OWNER TRUSTEE, THE CERTIFICATE REGISTRAR AND THE INSURER AGAINST ANY LIABILITY THAT MAY RESULT IF THE TRANSFER IS NOT SO EXEMPT OR IS NOT MADE
IN ACCORDANCE WITH SUCH FEDERAL AND STATE LAWS.  

A-2-1 

 

 

           NEITHER THIS CLASS L CERTIFICATE, NOR ANY BENEFICIAL INTEREST IN THIS CLASS L CERTIFICATE, MAY BE TRANSFERRED, SOLD, PLEDGED, OR OTHERWISE DISPOSED OF UNLESS PRIOR TO SUCH DISPOSITION, THE PROPOSED
TRANSFEREE DELIVERS TO THE OWNER TRUSTEE AND THE CERTIFICATE REGISTRAR AN AFFIDAVIT STATING (A) THAT THE PROPOSED TRANSFEREE IS NOT A “DISQUALIFIED ORGANIZATION” WITHIN THE MEANING OF SECTION 860E(E)(5) OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE “CODE”) AND IS NOT PURCHASING THE CLASS L CERTIFICATE ON BEHALF OF A DISQUALIFIED ORGANIZATION AND (B) THAT NO PURPOSE OF SUCH TRANSFER IS TO AVOID OR IMPEDE THE ASSESSMENT OR COLLECTION OF TAX.  

           NO TRANSFER OF THIS CLASS L CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE REGISTRAR SHALL HAVE RECEIVED A CERTIFICATE OF NON-FOREIGN STATUS CERTIFYING AS TO THE TRANSFEREE’S STATUS AS A U.S.
PERSON OR CORPORATION UNDER U.S. LAW AND THE OTHER OPINIONS AND CERTIFICATES SPECIFIED IN SECTION 3.03 OF THE AGREEMENT REFERRED TO HEREIN.  

           THIS CLASS L CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.  

A-2-2 

 

 

INDYMAC HOME EQUITY MORTGAGE LOAN ASSET-BACKED TRUST, 

SERIES 2006-H4 

CLASS L CERTIFICATE  

	
 
	 Class: L    	 Cut-off Date: December 12, 2006    
	 Percentage Interest: [_____]%    	 Issue Date: December 21, 2006    
	 First Payment Date: January 25, 2007    	   
	
 

 

No. 1 

INDYMAC ABS, INC. 

Class L Certificateholder 

  

A-2-3 

 

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION  

This is one of the Class L Certificates referred to in the within-mentioned Trust Agreement. 

     

	  	WILMINGTON TRUST COMPANY, 

not in its individual capacity but solely as Owner 

Trustee  
	  	  	  
	  	  	  
	  
	By: 	  

	  
	  

	

 
	  
	  

	
Authenticating Agent   
	  

  

 

A-2-4 

 

 

           The Trust was created pursuant to a Trust Agreement dated December 6, 2006, between IndyMac ABS, Inc. (the “Depositor”) and Wilmington Trust Company, as owner trustee (the
“Owner Trustee”), as amended and restated by the Amended and Restated Trust Agreement, dated December 21, 2006 (as further amended, modified or supplemented, the
“Trust Agreement”) between the Depositor, Deutsche Bank National Trust Company, as administrator (the “Administrator
”) and the Owner Trustee, a summary of certain of the pertinent provisions of which is set forth below. To the extent not otherwise defined herein, the capitalized terms used herein have the meanings assigned to them in the Trust
Agreement.  

           This Class L Certificate is one of the duly authorized Class L Certificates designated as “IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4 Asset-Backed Certificates, Class
L” (herein called, together with the IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4 Asset-Backed Certificates, Class B and the IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4 Asset Backed Certificates,
Class R, the “Certificates”). Also issued by the Trust under the Indenture are Notes (the “Notes”). These Class
L Certificates are issued under and are subject to the terms, provisions and conditions of the Trust Agreement, to which Trust Agreement the holder of this Class L Certificate by virtue of the acceptance hereof assents and by which such holder is
bound. The property of the Trust includes a pool of certain adjustable rate home equity revolving line of credit loans (the “Mortgage Loans”) (including any Additional Balances
related thereto).  

           Under the Sale and Servicing Agreement dated as of December 12, 2006 between the Issuer, the Depositor, the Servicer and the Indenture Trustee, there will be distributed on the 25
th day of each month or, if such 25th day is not a Business Day, the next Business Day (the “Payment
Date”), commencing in January 2007, to the Person in whose name this Class L Certificate is registered at the close of business on the last Business Day of the preceding calendar month (the “
Record Date”) such Class L Certificateholder’s Percentage Interest in the amount to be distributed to Class L Certificateholders on such Payment Date.  

           The holder of this Class L Certificate acknowledges and agrees that its rights to receive distributions in respect of this Class L Certificate are subordinated to the rights of the Noteholders as
described in the Sale and Servicing Agreement, the Indenture and the Trust Agreement, as applicable. 

           The holder of this Class L Certificate, by acceptance of this Class L Certificate, specifically acknowledges (i) that it has no right to or interest in any monies at any time held in the Trust Estate
prior to the release of such monies pursuant to Section 5.01(a)(II) of the Sale and Servicing Agreement, such monies being held in trust for the benefit of the Noteholders and the Sale and Servicing Agreement, and (ii) the obligations of the holder
of the Class L Certificate in the Sale and Servicing Agreement. Notwithstanding the foregoing, in the event that it is ever determined that the monies held in the Trust Estate constitute a pledge of collateral, then the provisions of the Sale and
Servicing Agreement shall be considered to constitute a security agreement and the holder of this Class L Certificate hereby grants to the Indenture Trustee and the Insurer a first priority perfected security interest in such amounts. In addition,
each Class L Certificateholder, by acceptance of its Class L Certificate, hereby appoints the Depositor, as its agent to pledge a first priority perfected security interest in the Trust Estate and agrees to execute and deliver such instruments of
conveyance, assignment, grant, confirmation, etc., as well as any 

A-2-5 

 

 

financing statements, in each case as the Insurer shall consider reasonably necessary in order to perfect the Indenture Trustee’s security interest in the Trust Estate.  

           Each Class L Certificateholder, by its acceptance of a Class L Certificate, covenants and agrees that such Class L Certificateholder will not at any time institute against the Trust, the Seller or the
Depositor, or join in any institution against the Trust, the Seller or the Depositor 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 Class L Certificates, the Trust Agreement or any of the Transaction Documents.  

           Distributions on this Class L Certificate will be made as provided in the Sale and Servicing Agreement and the Indenture by the Owner Trustee by wire transfer to the Class L Certificateholder of
record in the Certificate Register without the presentation or surrender of this Class L Certificate or the making of any notation hereon. Except as otherwise provided in the Trust Agreement and notwithstanding the above, the final distribution on
this Class L Certificate will be made after due notice by the Owner Trustee of the pendency of such distribution and only upon presentation and surrender of this Class L Certificate at the office or agency maintained for the purpose by the Owner
Trustee in the Corporate Trust Office.  

           Unless the certificate of authentication hereon shall have been executed by an authorized officer of the Owner Trustee, by manual signature, this Class L Certificate shall not entitle the holder
hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.  

           The Class L Certificates do not represent an obligation of, or an interest in, the Seller, the Depositor, a Servicer, the Servicer, the Insurer, the Owner Trustee or any Affiliates of any of them and
no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated herein or in the Trust Agreement, the Indenture or the Transaction Documents. In addition, this Class L Certificate is not guaranteed
by any governmental agency or instrumentality and is limited in right of payment to certain collections with respect to the Mortgage Loans, as more specifically set forth herein, in the Sale and Servicing Agreement and in the Indenture. A copy of
each of the Sale and Servicing Agreement and the Trust Agreement may be examined during normal business hours at the principal office of the Depositor, and at such other places, if any, designated by the Depositor, by any Class L Certificateholder
upon written request.  

           The Trust Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor, the Administrator and the rights of
the Class L Certificateholders under the Trust Agreement at any time by the Depositor, the Administrator and the Owner Trustee with the prior written consent of the Insurer and with the consent of the holders of the Notes and the Class L
Certificates evidencing not less than a majority of the outstanding Notes and the Class L Certificates. Any such amendment shall be conclusive and binding upon the holder of this Class L Certificate and on all future holders of this Class L
Certificate and of any Class L Certificate issued upon the transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent is made upon this Class L Certificate. The Trust Agreement also permits the amendment thereof,
in certain limited 

A-2-6 

 

 

circumstances, without the consent of the holders of any of the Class L Certificates (other than the Initial Holder, or the Insurer).  

           As provided in the Trust Agreement and subject to certain limitations therein set forth, the transfer of this Class L Certificate is registrable in the Certificate Register upon surrender of this
Class L Certificate for registration of transfer at the offices or agencies of the Certificate Registrar maintained by the Owner Trustee in the Corporate Trust Office, accompanied by a written instrument of transfer in form satisfactory to the Owner
Trustee and the Certificate Registrar duly executed by the Certificateholder hereof or such Certificateholder’s attorney duly authorized in writing, and thereupon one or more new Class L Certificates in authorized denominations evidencing the
same aggregate interest in the Trust will be issued to the designated transferee. The initial Certificate Registrar appointed under the Trust Agreement is Deutsche Bank National Trust Company.  

           The Class L Certificates are issuable only as registered Class L Certificates without coupons in minimum Percentage Interests of 100%. As provided in the Trust Agreement and subject to certain
limitations therein set forth, Class L Certificates are exchangeable for new Class L Certificates evidencing the same denomination, as requested by the holder surrendering the same. No service charge will be made for any such registration of
transfer or exchange, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith.  

           The Owner Trustee, the Certificate Registrar, the Insurer and any agent of the Owner Trustee, the Certificate Registrar, or the Insurer may treat the person in whose name this Class L Certificate is
registered as the owner hereof for all purposes, and none of the Owner Trustee, the Certificate Registrar, the Insurer nor any such agent shall be affected by any notice to the contrary. 

           The obligations and responsibilities created by the Trust Agreement and the Trust created thereby shall terminate upon the payment to Class L Certificateholders of all amounts required to be paid to
them pursuant to the Trust Agreement, the Indenture and the Sale and Servicing Agreement and the disposition of all property held as part of the Trust. The Servicer may at its option redeem the Notes at a price and upon the satisfaction of certain
conditions specified in Section 8.01 of the Sale and Servicing Agreement, and if all of the Notes are redeemed, such redemption may result in termination of the Trust which may effect a transfer of the Class L Certificates; however, such right of
purchase is exercisable, subject to certain restrictions set forth in the Sale and Servicing Agreement.  

           The recitals contained herein shall be taken as the statements of the Depositor or the Servicer, as the case may be, and the Owner Trustee assumes no responsibility for the correctness thereof. The
Owner Trustee makes no representations as to the validity or sufficiency of this Class L Certificate or of any Mortgage Loan or related document.  

           Unless the certificate of authentication hereon shall have been executed by an authorized officer of the Owner Trustee, by manual or facsimile signature, this Class L Certificate shall not entitle the
holder hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.  

A-2-7 

 

 

           IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not in its individual capacity, has caused this Class L Certificate to be duly executed.  

  

	  	INDYMAC HOME EQUITY MORTGAGE LOAN ASSET- 
	  	BACKED TRUST, SERIES 2006-H4 
	  	  	  
	  	By: 	WILMINGTON TRUST COMPANY, 
	  	  	not in its individual capacity but solely as Owner Trustee 
	  	  	  
	  	  	  
	  	  	  
	  	By: 	  
	  	  	
 
	  	  	Name: 
	  	  	Title:  

Dated: __________, 2006  

  

A-2-8 

 

 

ASSIGNMENT 

           FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

PLEASE INSERT SOCIAL SECURITY 

OR OTHER IDENTIFYING NUMBER 

OF ASSIGNEE  

	  
	
 
	
(Please print or type name and address, including postal zip code, of assignee)   

	  

           the within Class L Certificate, and all rights thereunder, hereby irrevocably constituting and appointing 

_____________________________________________ Attorney to transfer said Class L Certificate on the books of the Certificate Registrar, 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 Class L Certificate 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 Certificate Registrar, which requirements include membership or participation in STAMP or such other “signature
guarantee program” as may be determined by the Certificate Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.  
	  

A-2-9 

 

 

EXHIBIT A-3 

FORM OF CLASS R CERTIFICATE 

           THIS CLASS R CERTIFICATE IS A REMIC RESIDUAL INTEREST CERTIFICATE. THIS CLASS R CERTIFICATE REPRESENTS CERTAIN RESIDUAL RIGHTS TO PAYMENT TO THE EXTENT DESCRIBED HEREIN AND IN THE TRUST AGREEMENT
REFERRED TO HEREIN.  

           THIS CLASS R CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON.  

           THIS CLASS R CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
CLASS R CERTIFICATE WITHOUT SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION WHICH DOES NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3.03 OF THE TRUST AGREEMENT REFERRED TO
HEREIN.  

           NO TRANSFER OF THIS CLASS R CERTIFICATE MAY BE MADE UNLESS THE TRANSFEREE PROVIDES A REPRESENTATION LETTER FROM THE TRANSFEREE OF SUCH CLASS R CERTIFICATE, ACCEPTABLE TO AND IN FORM AND SUBSTANCE
SATISFACTORY TO THE OWNER TRUSTEE AND THE INSURER, TO THE EFFECT THAT SUCH TRANSFEREE IS NOT ACQUIRING THE CLASS R CERTIFICATE FOR, OR ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO TITLE I 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 (THE “CODE”), OR ANY ENTITY DEEMED TO HOLD THE “PLAN ASSETS” OF THE FOREGOING, WHICH
REPRESENTATION LETTER SHALL NOT BE AN EXPENSE OF THE OWNER TRUSTEE OR THE INSURER.  

           NO TRANSFER OF A CLASS R CERTIFICATE SHALL BE MADE UNLESS SUCH TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS
OR IS MADE IN ACCORDANCE WITH SAID ACT AND LAWS. EXCEPT FOR THE INITIAL ISSUANCE OF THE CLASS R CERTIFICATE TO THE INITIAL HOLDER, THE OWNER TRUSTEE SHALL REQUIRE THE TRANSFEREE TO EXECUTE AN INVESTMENT LETTER ACCEPTABLE TO AND IN FORM AND SUBSTANCE
SATISFACTORY TO THE OWNER TRUSTEE AND THE INSURER CERTIFYING TO THE OWNER TRUSTEE AND THE INSURER THE FACTS SURROUNDING SUCH TRANSFER, WHICH INVESTMENT LETTER SHALL NOT BE AN EXPENSE OF THE OWNER TRUSTEE, OR THE INSURER. THE HOLDER OF A CLASS R
CERTIFICATE DESIRING TO EFFECT SUCH TRANSFER SHALL, AND DOES HEREBY AGREE TO, INDEMNIFY THE DEPOSITOR, THE OWNER TRUSTEE, THE CERTIFICATE REGISTRAR AND THE INSURER AGAINST ANY LIABILITY THAT MAY RESULT IF THE TRANSFER IS NOT SO EXEMPT OR IS NOT MADE
IN ACCORDANCE WITH SUCH FEDERAL AND STATE LAWS.  

A-3-1 

 

 

           NEITHER THIS CLASS R CERTIFICATE, NOR ANY BENEFICIAL INTEREST IN THIS CLASS R CERTIFICATE, MAY BE TRANSFERRED, SOLD, PLEDGED, OR OTHERWISE DISPOSED OF UNLESS PRIOR TO SUCH DISPOSITION, THE PROPOSED
TRANSFEREE DELIVERS TO THE OWNER TRUSTEE AND THE CERTIFICATE REGISTRAR AN AFFIDAVIT STATING (A) THAT THE PROPOSED TRANSFEREE IS NOT A “DISQUALIFIED ORGANIZATION” WITHIN THE MEANING OF SECTION 860E(E)(5) OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE “CODE”) AND IS NOT PURCHASING THE CLASS R CERTIFICATE ON BEHALF OF A DISQUALIFIED ORGANIZATION AND (B) THAT NO PURPOSE OF SUCH TRANSFER IS TO AVOID OR IMPEDE THE ASSESSMENT OR COLLECTION OF TAX.  

           NO TRANSFER OF THIS CLASS R CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE REGISTRAR SHALL HAVE RECEIVED A CERTIFICATE OF NON-FOREIGN STATUS CERTIFYING AS TO THE TRANSFEREE’S STATUS AS A U.S.
PERSON OR CORPORATION UNDER U.S. LAW AND THE OTHER OPINIONS AND CERTIFICATES SPECIFIED IN SECTION 3.03 OF THE AGREEMENT REFERRED TO HEREIN.  

           THIS CLASS R CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.  

A-3-2 

 

 

INDYMAC HOME EQUITY MORTGAGE LOAN ASSET-BACKED TRUST, 

SERIES 2006-H4  

CLASS R CERTIFICATE  

 
	
 
	 Class: R    	 Cut-off Date: December 21, 2006    
	 Percentage Interest: [_____]%    	 Issue Date: December 12, 2006    
	 First Payment Date: January 25, 2007    	   
	
 

 

No. 1  

INDYMAC ABS, INC. 

Class R Certificateholder  

  

  

A-3-3 

 

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Class R Certificates referred to in the within-mentioned Trust Agreement. 

  	  	WILMINGTON TRUST COMPANY, 

not in its individual capacity but solely as Owner 

Trustee 
	  	  	  
	  	  	  
	   	By: 	   	  
	   	

 
	  
	   	 Authenticating Agent    	  

    

  

 

A-3-4 

 

 

           The Trust was created pursuant to a Trust Agreement dated December 6, 2006, between IndyMac ABS, Inc. (the “Depositor”) and Wilmington Trust Company, as owner trustee (the
“Owner Trustee”), as amended and restated by the Amended and Restated Trust Agreement, dated December 21, 2006 (as further amended, modified or supplemented, the
“Trust Agreement”) between the Depositor, Deutsche Bank National Trust Company, as administrator (the “Administrator”) and the Owner Trustee, a summary of certain of the
pertinent provisions of which is set forth below. To the extent not otherwise defined herein, the capitalized terms used herein have the meanings assigned to them in the Trust Agreement.  

           This Class R Certificate is one of the duly authorized Class R Certificates designated as “IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4 Asset-Backed Certificates, Class
R” (herein called, together with the IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4 Asset-Backed Certificates, Class B and the IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4 Asset Backed Certificates,
Class L, the “Certificates”). Also issued by the Trust under the Indenture are Notes (the “Notes”). These Class
R Certificates are issued under and are subject to the terms, provisions and conditions of the Trust Agreement, to which Trust Agreement the holder of this Class R Certificate by virtue of the acceptance hereof assents and by which such holder is
bound. The property of the Trust includes a pool of certain adjustable rate home equity line of credit loans (the “Mortgage Loans”) (including any Additional Balances related
thereto).  

           Under the Sale and Servicing Agreement dated as of December 12, 2006 between the Issuer, the Depositor, the Servicer and the Indenture Trustee, there will be distributed on the 25
th day of each month or, if such 25th day is not a Business Day, the next Business Day (the “Payment
Date”), commencing in January 2007, to the Person in whose name this Class R Certificate is registered at the close of business on the last Business Day of the preceding calendar month (the “
Record Date”) such Class R Certificateholder’s Percentage Interest in the amount to be distributed to Class R Certificateholders on such Payment Date.  

           The holder of this Class R Certificate acknowledges and agrees that its rights to receive distributions in respect of this Class R Certificate are subordinated to the rights of the Noteholders as
described in the Sale and Servicing Agreement, the Indenture and the Trust Agreement, as applicable. 

           The holder of this Class R Certificate, by acceptance of this Class R Certificate, specifically acknowledges (i) that it has no right to or interest in any monies at any time held in the Trust Estate,
and (ii) the obligations of the holder of the Class R Certificate in the Sale and Servicing Agreement. In addition, each Class R Certificateholder, by acceptance of its Class R Certificate, hereby appoints the Depositor, as its agent to pledge a
first priority perfected security interest in the Trust Estate and agrees to execute and deliver such instruments of conveyance, assignment, grant, confirmation, etc., as well as any financing statements, in each case as the Insurer shall consider
reasonably necessary in order to perfect the Indenture Trustee’s security interest in the Trust Estate.  

A-3-5 

 

 

           Each Class R Certificateholder, by its acceptance of a Class R Certificate, covenants and agrees that such Class R Certificateholder will not at any time institute against the Trust, the Seller or the
Depositor, or join in any institution against the Trust, the Seller or the Depositor 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 Class R Certificates, the Trust Agreement or any of the Transaction Documents.  

           Distributions on this Class R Certificate will be made as provided in the Sale and Servicing Agreement and the Indenture by the Owner Trustee by wire transfer to the Class R Certificateholder of
record in the Certificate Register without the presentation or surrender of this Class R Certificate or the making of any notation hereon. Except as otherwise provided in the Trust Agreement and notwithstanding the above, the final distribution on
this Class R Certificate will be made after due notice by the Owner Trustee of the pendency of such distribution and only upon presentation and surrender of this Class R Certificate at the office or agency maintained for the purpose by the Owner
Trustee in the Corporate Trust Office.  

           Unless the certificate of authentication hereon shall have been executed by an authorized officer of the Owner Trustee, by manual signature, this Class R Certificate shall not entitle the holder
hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.  

           The Class R Certificates do not represent an obligation of, or an interest in, the Seller, the Depositor, a Servicer, the Servicer, the Insurer, the Owner Trustee or any Affiliates of any of them and
no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated herein or in the Trust Agreement, the Indenture or the Transaction Documents. In addition, this Class R Certificate is not guaranteed
by any governmental agency or instrumentality and is limited in right of payment to certain collections with respect to the Mortgage Loans, as more specifically set forth herein, in the Sale and Servicing Agreement and in the Indenture. A copy of
each of the Sale and Servicing Agreement and the Trust Agreement may be examined during normal business hours at the principal office of the Depositor, and at such other places, if any, designated by the Depositor, by any Class R Certificateholder
upon written request.  

           The Trust Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor, the Administrator and the rights of
the Class R Certificateholders under the Trust Agreement at any time by the Depositor, the Administrator and the Owner Trustee with the prior written consent of the Insurer and with the consent of the holders of the Notes and the Class R
Certificates evidencing not less than a majority of the outstanding Notes and the Class R Certificates. Any such amendment shall be conclusive and binding upon the holder of this Class R Certificate and on all future holders of this Class R
Certificate and of any Class R Certificate issued upon the transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent is made upon this Class R Certificate. The Trust Agreement also permits the amendment thereof,
in certain limited circumstances, without the consent of the holders of any of the Class R Certificates (other than the Initial Holder, or the Insurer).  

A-3-6 

 

 

           As provided in the Trust Agreement and subject to certain limitations therein set forth, the transfer of this Class R Certificate is registrable in the Certificate Register upon surrender of this
Class R Certificate for registration of transfer at the offices or agencies of the Certificate Registrar maintained by the Owner Trustee in the Corporate Trust Office, accompanied by a written instrument of transfer in form satisfactory to the Owner
Trustee and the Certificate Registrar duly executed by the holder hereof or such holder’s attorney duly authorized in writing, and thereupon one or more new Class R Certificates in authorized denominations evidencing the same aggregate interest
in the Trust will be issued to the designated transferee. The initial Certificate Registrar appointed under the Trust Agreement is Deutsche Bank National Trust Company.  

           The Class R Certificates are issuable only as registered Class R Certificates without coupons in minimum Percentage Interests of 100%. As provided in the Trust Agreement and subject to certain
limitations therein set forth, Class R Certificates are exchangeable for new Class R Certificates in authorized denominations evidencing the same aggregate denomination, as requested by the holder surrendering the same. No service charge will be
made for any such registration of transfer or exchange, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith.  

           The Owner Trustee, the Certificate Registrar, the Insurer and any agent of the Owner Trustee, the Certificate Registrar, or the Insurer may treat the person in whose name this Class R Certificate is
registered as the owner hereof for all purposes, and none of the Owner Trustee, the Certificate Registrar, the Insurer nor any such agent shall be affected by any notice to the contrary.  

           The obligations and responsibilities created by the Trust Agreement and the Trust created thereby shall terminate upon the payment to Class R Certificateholders of all amounts required to be paid to
them pursuant to the Trust Agreement, the Indenture and the Sale and Servicing Agreement and the disposition of all property held as part of the Trust. The Servicer may at its option redeem the Notes at a price and upon the satisfaction of certain
conditions specified in Section 8.01 of the Sale and Servicing Agreement, and if all of the Notes are redeemed, such redemption may result in termination of the Trust which may effect a transfer of the Class R Certificates; however, such right of
purchase is exercisable, subject to certain restrictions set forth in the Sale and Servicing Agreement.  

           The recitals contained herein shall be taken as the statements of the Depositor or the Servicer, as the case may be, and the Owner Trustee assumes no responsibility for the correctness thereof. The
Owner Trustee makes no representations as to the validity or sufficiency of this Class R Certificate or of any Mortgage Loan or related document.  

           Unless the certificate of authentication hereon shall have been executed by an authorized officer of the Owner Trustee, by manual or facsimile signature, this Class R Certificate shall not entitle the
holder hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.  

A-3-7 

 

 

           IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not in its individual capacity, has caused this Class R Certificate to be duly executed.  

	  
	  	INDYMAC HOME EQUITY MORTGAGE LOAN 
	  
	  	ASSET-BACKED TRUST, SERIES 2006-H4 
	  

	  	
By:   
	
WILMINGTON TRUST COMPANY, not in its   

	  	  

	
individual capacity but solely as Owner Trustee   

	  

	  

	  

	  	
By:   
	  

		
	

 

	  	  

	
Name:   

	  	  

	
Title:   

 

Dated: __________, 2006 

  

  

A-3-8 

 

 

ASSIGNMENT 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

  
PLEASE INSERT SOCIAL SECURITY 

OR OTHER IDENTIFYING NUMBER 

OF ASSIGNEE  

	
 
	
(Please print or type name and address, including postal zip code, of assignee)   

	  

           the within Class R Certificate, and all rights thereunder, hereby irrevocably constituting and appointing  

______________________________ Attorney to transfer said Class R Certificate on the books of the Certificate Registrar, 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 Class R Certificate 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 Certificate Registrar, which requirements include membership or participation in STAMP or such other “signature
guarantee program” as may be determined by the Certificate Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.  
	  

A-3-9 

 

 

EXHIBIT B 

FORM OF CERTIFICATE OF TRUST OF 

INDYMAC HOME EQUITY MORTGAGE LOAN ASSET-BACKED 

TRUST, SERIES 2006-H4  

           THIS Certificate of Trust of IndyMac Home Equity Mortgage Loan Asset-Backed Trust 2006-H4 (the “Trust”), is being duly executed and filed by the undersigned, as trustee, to form a statutory
trust under the Delaware Statutory Trust Act (12 DEL. CODE, Sections 3801 et seq.) (the “Act”)  

           1. NAME. The name of the statutory trust formed hereby is “INDYMAC HOME EQUITY MORTGAGE LOAN ASSET-BACKED TRUST, SERIES 2006-H4.”  

           2. DELAWARE TRUSTEE. The name and business address of the trustee of the Trust in the State of Delaware are WILMINGTON TRUST COMPANY, Rodney Square North, 1100 North Market Street, Wilmington,
Delaware 19890-0001, Attention: Corporate Trust Administration.  

           3. EFFECTIVE DATE. This Certificate of Trust shall be effective upon filing.  

           IN WITNESS WHEREOF, the undersigned, being the owner trustee of the Trust, has executed this Certificate of Trust in accordance with Section 3811(a) of the Act.  

	  	
WILMINGTON TRUST COMPANY,   

	  	
as Owner Trustee   

	  	  

	  	  

	  	
By:   
	  
	  	  	
 
	  	  	Name: 
	  	  	Title: 

 

B-1 

 

 

EXHIBIT C-1 

FORM OF RULE 144A INVESTMENT LETTER 

	  	  
	  	
 
	  	
Date   

DEUTSCHE BANK NATIONAL TRUST COMPANY, 

   as Certificate Registrar 

1761 East St. Andrew Place 

Santa Ana, California 92705 

Attention: IndyMac Home Equity Mortgage Loan Asset-Backed Trust 2006-H4 

	
Re:   
	
IndyMac Home Equity Mortgage Loan Asset-Backed Trust 2006-H4 Certificate,   

	  

	
Series 2006-H4   

            Ladies and Gentlemen:  

           In connection with our acquisition of the IndyMac Home Equity Mortgage Loan Asset-Backed Trust 2006-H4 Certificate, Series 2006-H4 (the “Certificate”), we certify that (a) we understand that
the Certificate has not been registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred to us in a transaction that is exempt from the registration requirements of the Act
and any such laws, (b) we have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of investments in the Certificate, (c) we have had the opportunity to ask questions of and receive
answers from the IndyMac ABS, Inc. (the “Depositor”) concerning the purchase of the Certificate and all matters relating thereto or any additional information deemed necessary to our decision to purchase the Certificate, (d) we have not,
nor has anyone acting on our behalf, offered, transferred, pledged, sold or otherwise disposed of the Certificate or any interest in the Certificate, or solicited any offer to buy, transfer, pledge or otherwise dispose of the Certificate or any
interest in the Certificate from any person in any manner, or made any general solicitation by means of general advertising or in any other manner, or taken any other action that would constitute a distribution of the Certificate under the Act or
that would render the disposition of the Certificate a violation of Section 5 of the Act or any state securities laws or require registration pursuant thereto, and we will not act, or authorize any person to act, in such manner with respect to the
Certificate and (e) we are a “qualified institutional buyer” as that term is defined in Rule 144A under the Act (“Rule 144A”). We are aware that the sale to us is being made in reliance on Rule 144A.  

           We are acquiring the Certificate for our own account or for resale pursuant to Rule 144A and understand that such Certificate may be resold, pledged or transferred only (1) to a person reasonably
believed to be a qualified institutional buyer that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A or (2)
pursuant to another exemption from registration under the Act.  

C-1-1 

 

 

           In addition, we hereby certify that we are not, and are not purchasing the Certificate 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 or to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) or to any substantially similar law, or any entity deemed to hold the plan assets of the foregoing. 

           Moreover, we hereby certify that we are a United States person within the meaning of Section 7701(a)(30) of the Code.  

           We hereby acknowledge that under the terms of the Trust Agreement among IndyMac ABS, Inc., as Depositor, Wilmington Trust Company, as Owner Trustee, and Deutsche Bank National Trust Company, as
Administrator, dated December 21, 2006, no transfer of the Certificates shall be permitted to be made to any person unless the Certificate Registrar has received a certificate from such transferee in the form hereof.  

           We hereby indemnify the Depositor, Certificate Registrar, the Insurer and the Owner Trustee against any liability that may result to either of them if our transfer or other disposition of any
Certificates (or any interest therein) is not exempt from the registration requirements of the Act and any applicable state securities laws or is not made in accordance with such federal and state laws, the provisions of this certificate or the
applicable provisions of the Indenture.  

	  	
Very truly yours,   

	  	  

	  	
[Name of Transferee]   

	  	  

	  	  

	  	
By: 	  
	  	  	
 
	  	  
	Name: 
	  	  
	Title: 

 
	  	  
	
CC:  	
Wilmington Trust Company, as Owner Trustee 

MBIA Insurance Corporation., as Insurer  
	  

C-1-2 

 

 

EXHIBIT C-2 

FORM OF NON-RULE 144A INVESTMENT LETTER 

	  	  
	  	
 
	  	 Date    

 

DEUTSCHE BANK NATIONAL TRUST COMPANY, 

   as Certificate Registrar 

1761 East St. Andrew Place 

Santa Ana, California 92705 

Attention: IndyMac Home Equity Mortgage Loan Asset-Backed Trust 2006-H4 

	
Re:   
	
IndyMac Home Equity Mortgage Loan Asset-Backed Trust 2006-H4   

	  

	
Residential Certificate Series 2006-H4   

	
	

 

           Ladies and Gentlemen: 

           In connection with our acquisition of the above-referenced certificates (the “Certificates”) we certify that (a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred to us in a transaction that is exempt from the registration requirements of the Act and any such laws, (b) we are an “accredited
investor,” as defined in Rule 501(a)(1), (2), (3) or (7) under the Act, and have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the Depositor concerning the purchase of the Certificates and all matters relating thereto or any additional information deemed necessary to our decision to purchase the
Certificates, (d) we are acquiring the Certificates for investment for our own account and not with a view to any distribution of such Certificates (but without prejudice to our right at all times to sell or otherwise dispose of the Certificates in
accordance with clause (f) below), (e) we have not offered or sold any Certificates to, or solicited offers to buy any Certificates from, any person, or otherwise approached or negotiated with any person with respect thereto, or taken any other
action that would result in a violation of Section 5 of the Act or any state securities laws and (f) we will not sell, transfer or otherwise dispose of any Certificates unless (1) such sale, transfer or other disposition is made pursuant to an
effective registration statement under the Act and in compliance with any relevant state securities laws or is exempt from such registration requirements and, if requested, we will at our expense provide an opinion of counsel satisfactory to the
addressees of this certificate that such sale, transfer or other disposition may be made pursuant to an exemption from the Act, (2) the purchaser or transferee of such Certificate has executed and delivered to you a certificate to substantially the
same effect as this certificate and (3) the purchaser or transferee has otherwise complied with any conditions for transfer set forth in the Amended and Restated Trust Agreement dated December 21, 2006 (the “Trust Agreement”), among
IndyMac ABS, Inc., as Depositor, 

C-2-1 

 

 

Wilmington Trust Company, as Owner Trustee and Deutsche Bank National Trust Company, as Administrator.  

           In addition, we hereby certify that we are not, and are not purchasing the Certificate 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, or to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), or to any substantially similar law, or any entity deemed to hold the plan assets of the foregoing. 

           Moreover, we hereby certify that we are a United States person within the meaning of Section 7701(a)(30) of the Code.  

           We hereby acknowledge that under the terms of the Trust Agreement, no transfer of the Certificates shall be permitted to be made to any person unless the Certificate Registrar has received a
certificate from such transferee in the form hereof.  

           We hereby indemnify the Owner Trustee, the Depositor, the Insurer and the Certificate Registrar against any liability that may result to either of them if our transfer or other disposition of any
Certificates (or any interest therein) is not exempt from the registration requirements of the Act and any applicable state securities laws or is not made in accordance with such federal and state laws.  

 
	  	 Very truly yours,    
	  	   
	  	 [Name of Transferee]    
	  	   
	  	   
	  	 By: 	  
	  	  	
 
	  	   	Name: 
	  	   	Title: 

 
	
CC:   	
Wilmington Trust Company, as Owner Trustee 

MBIA Insurance Corporation., as Insurer  
	  

C-2-2 

 

 

EXHIBIT D 

FORM OF CERTIFICATE OF NON-FOREIGN STATUS  

           This certificate of Non-Foreign status (“certificate”) is delivered pursuant to Section 3.03 of the Amended and Restated Trust Agreement dated December 21, 2006 (the “Agreement”),
among IndyMac ABS, Inc., as Depositor, Wilmington Trust Company, as Owner Trustee, and Deutsche Bank National Trust Company, as Administrator, in connection with the acquisition of, transfer to or possession by the undersigned, whether as beneficial
owner (the “Beneficial Owner”), or nominee on behalf of the Beneficial Owner of the Class [L][R] Certificates, (the “Class [L][R] Certificate”). Capitalized terms used but not defined in this certificate have the respective
meanings given them in the Agreement.  

           Each holder must complete Part I, Part II (if the holder is a nominee), and in all cases sign and otherwise complete Part III. In addition, each holder shall submit with the certificate an IRS Form
W-9 relating to such holder.  

           To confirm to the Trust that the provisions of Sections 871, 881 or 1446 of the Internal Revenue Code (relating to withholding tax on foreign partners) do not apply in respect of the Class [L][R]
Certificate held by the undersigned, the undersigned hereby certifies:  

           PART I - COMPLETE EITHER A OR B  

            A.       Individual as Beneficial Owner  

  
            1.        I am (The Beneficial Owner is) not a Non-resident alien for purposes of U.S. Income Taxation;  

  

	  	
2. 
	
My (The Beneficial Owner’s) name and home address are:   
	  

			  	  
		
	

 
	  

			  	  
		

	
 

	  

			  	  
		
	

 
	; and 

            3.        My (The Beneficial Owner’s) U.S. Taxpayer Identification Number (Social Security Number) is .  

  

              B.       Corporate, Partnership or other entity as Beneficial Owner  

  
            1.        (Name of the Beneficial Owner) is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Code and Treasury Regulations);  

                2.        The Beneficial Owner’s office address and place of incorporation (if applicable) is _____________________________; and  

                3.        The Beneficial Owner’s U.S. employer identification number is ___________________
..  

  

D-1 

 

 

           PART II - NOMINEES 

           If the undersigned is the nominee for the Beneficial Owner, the undersigned certifies that this certificate has been made in reliance upon information contained in:  

_____ an IRS Form W-9  

_____ a form such as this or substantially similar  

           provided to the undersigned by an appropriate person and (i) the undersigned agrees to notify the Trust at least thirty (30) days prior to the date that the form relied upon becomes obsolete, and (ii)
in connection with change in Beneficial Owners, the undersigned agrees to submit a new Certificate of Non-Foreign Status to the Trust promptly after such change.  

           PART III - DECLARATION 

           The undersigned, as the Beneficial Owner or a nominee thereof, agrees to notify the Trust within sixty (60) days of the date that the Beneficial Owner becomes a foreign person. The undersigned
understands that this certificate may be disclosed to the Internal Revenue Service by the Trust and any false statement contained therein could be punishable by fines, imprisonment or both.  

           Under penalties of perjury, I declare that I have examined this certificate and to the best of my knowledge and belief it is true, correct and complete and will further declare that I will inform the
Trust of any change in the information provided above, and, if applicable, I further declare that I have the authority* to sign this document.  

	  	
 
	  	
Name   

	  	  
	  	  
	  	

 

	  	
Title (if applicable)   

	  	  
	  	  
	  	

 

	  	
Signature and Date   

 

           *NOTE: If signed pursuant to a power of attorney, the power of attorney must accompany this certificate.  

D-2 

 

 

EXHIBIT E-1 

FORM OF CLASS [L][R] CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEROR) 

	  	
 
	  	
Date   

 
	
Re:   
	
IndyMac Home Equity Mortgage Loan Asset-Backed Trust 2006-H4   

	  

	
Series 2006-H4   

 

           _______________________ (the “Transferor”) has reviewed the attached affidavit of _____________________________
(the “Transferee”), and has no actual knowledge that
such affidavit is not true and has no reason to believe that the information contained in paragraph 7 thereof is not true, and has no reason to believe that the Transferee has the intention to impede the assessment or collection of any federal,
state or local taxes legally required to be paid with respect to the Class [L][R] Certificate. In addition, the Transferor has conducted a reasonable investigation at the time of the transfer and found that the Transferee had historically paid its
debts as they came due and found no significant evidence to indicate that the Transferee will not continue to pay its debts as they become due.  

	  	
Very truly yours,   

	  	  
	  	  
	  	

 

	  	
Name:   

	  	
Title:   

 

E-1-1 

 

 

EXHIBIT E-2 

FORM OF CLASS [L][R] CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEREE) 

	
STATE OF   
	
)   

	  

	
) ss:   

	
COUNTY OF   
	
)   

           [NAME OF OFFICER], _________________ being first duly sworn, deposes and says:  

           1. That he [she] is [title of officer] _______________________ of [name of Purchaser] _________________________________________ (the “Purchaser”), a _______________________ [description of type of entity] duly organized and existing under the laws of the [State of __________] [United States], on behalf of which he [she] makes this affidavit.  

           2. That the Purchaser’s Taxpayer Identification Number is ______________

..  

           3. That the Purchaser is not a “disqualified organization” within the meaning of Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended (the “Code”) and will not be a
“disqualified organization” as of __________________
[date of transfer], and that the Purchaser is not acquiring a Class [L][R] Certificate (as defined in the Agreement) for the account of, or as agent (including a broker, nominee,
or other middleman) for, any person or entity from which it has not received an affidavit substantially in the form of this affidavit.  

           4. That the Purchaser is not an employee benefit plan or other retirement arrangement that is subject to the Employee Retirement Income Security Act of 1974, as amended, or to Section 4975 of the Code
or to any substantially similar law, or any entity deemed to hold the plan assets of the foregoing.  

           5. That the Purchaser hereby acknowledges that under the terms of the Amended and Restated Trust Agreement dated December 21, 2006, among IndyMac ABS, Inc., as Depositor, Deutsche Bank National Trust
Company, as Administrator, and Wilmington Trust Company, as Owner Trustee, no transfer of a Class [L][R] Certificate shall be permitted to be made to any person unless the Certificate Registrar, the Depositor and the Owner Trustee have received a
certificate from such transferee containing the representations in paragraphs 3, 4 and 5 hereof.  

           6. That the Purchaser does not hold REMIC residual securities as nominee to facilitate the clearance and settlement of such securities through electronic book-entry changes in accounts of
participating organizations (such entity, a “Book-Entry Nominee”).  

E-2-1 

 

 

           7. That the Purchaser does not have the intention to impede the assessment or collection of any federal, state or local taxes legally required to be paid with respect to such Class [L][R] Certificate,
and that the Purchaser has provided financial statements or other financial information requested by the transferor in connection with the transfer of the Class [L][R] Certificate in order to permit the transferor to assess the financial capability
of the Purchaser to pay such taxes.  

           8. That the Purchaser will not transfer a Class [L][R] Certificate to any person or entity (i) as to which the Purchaser has actual knowledge that the requirements set forth in paragraph 3, paragraph
6 or paragraph 10 hereof are not satisfied or that the Purchaser has reason to believe does not satisfy the requirements set forth in paragraph 7 hereof, and (ii) without obtaining from the prospective Purchaser an affidavit substantially in this
form and providing to the Indenture Trustee a written statement substantially in the form of Exhibit F-1 to the Trust Agreement.  

           9. That the Purchaser understands that, as the holder of a Class [L][R] Certificate, the Purchaser may incur tax liabilities in excess of any cash flows generated by the Class [L][R] Certificate and
that it intends to pay taxes associated with holding such Class [L][R] Certificate as they become due.  

           10. That the Purchaser is a U.S. Person. A “U.S. Person” means (i) a citizen or resident of the United States; (ii) a corporation (or entity treated as a corporation for tax purposes)
created or organized in the United States or under the laws of the United States or of any state thereof, including, for this purpose, the District of Columbia; (iii) a partnership (or entity treated as a partnership for tax purposes) organized in
the United States or under the laws of the United States or of any state thereof, including, for this purpose, the District of Columbia (unless provided otherwise by future Treasury regulations); (iv) an estate whose income is includible in gross
income for United States income tax purposes regardless of its source; (v) a trust, if a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. Persons have authority to
control all substantial decisions of the trust; (vi) and, to the extent provided in Treasury regulations, certain trusts in existence prior to August 20, 1996 that are treated as United States persons prior to such date and elect to continue to be
treated as United States persons.  

           11. That the Purchaser agrees to such amendments of the Trust Agreement as may be required to further effectuate the restrictions on transfer of any Class [L][R] Certificate to such a
“disqualified organization,” an agent thereof, a Book-Entry Nominee, or a person that does not satisfy the requirements of paragraph 7 and paragraph 10 hereof.  

E-2-2 

 

 

           IN WITNESS WHEREOF, the Purchaser has caused this instrument to be executed on its behalf, pursuant to authority of its Board of Directors, by its [title of officer] this _____ day of __________ 20__.  

	  

	  
	
[name of Purchaser]   

	  

	  

	  
	By: 
	  

	
	
	

 

	  

	  
	
Name:   

	  

	  
	
Title:   

 

           Personally appeared before me the above-named [name of officer] ________________, known or proved to me to be the same person who executed the foregoing instrument and to be the [title of
officer] _________________ of the Purchaser, and acknowledged to me that he [she] executed the same as his [her] free act and deed and the free act and deed of the Purchaser.  

                     Subscribed and sworn before me this _____ day of __________ 20__.  

	  	
NOTARY PUBLIC   
	  
	  
	

	  	  			
	  	  			
	  	

 
	
	
	

	  	  	  	  	
	  
	COUNTY OF _____________________ 	  	  
	

	  	  	  	  	
	  
	STATE OF _______________________ 	  	  
	

	  	  	  	  	  
	  	
My commission expires the______ day of _______________20 __.  
	  
	  
	  

 

E-2-3 

 

 

EXHIBIT F 

OWNER TRUSTEE FEE LETTER AGREEMENT 

  

ON FILE WITH INDYMAC ABS, INC. 

  

  

  

  

  

F-1Exhibit 4.2

EXECUTION COPY

 

INDENTURE

Between

INDYMAC HOME EQUITY MORTGAGE LOAN ASSET-BACKED TRUST, 

SERIES 2006-H4,

Issuer

and

DEUTSCHE BANK NATIONAL TRUST COMPANY,

Indenture Trustee

Dated as of December 21, 2006

 

TABLE OF CONTENTS

 

	 
	 
	Page

	 	 	 
	ARTICLE I
	DEFINITIONS AND INCORPORATION BY REFERENCE
	2

	 
	Section 1.01.
	Definitions
	2

	 
	Section 1.02.
	Incorporation by Reference of Trust Indenture Act
	7

	 
	Section 1.03.
	Rules of Construction
	8

	ARTICLE II
	THE NOTES
	9

	 
	Section 2.01.
	Form
	9

	 
	Section 2.02.
	Execution, Authentication and Delivery
	9

	 
	Section 2.03.
	Limitations on Transfer of the Notes
	9

	 
	Section 2.04.
	Registration; Registration of Transfer and Exchange
	11

	 
	Section 2.05.
	Mutilated, Destroyed, Lost or Stolen Notes
	12

	 
	Section 2.06.
	Persons Deemed Owners
	13

	 
	Section 2.07.
	Payment of Principal and Interest
	13

	 
	Section 2.08.
	Cancellation
	14

	 
	Section 2.09.
	Release of Collateral
	14

	 
	Section 2.10.
	Book-Entry Notes
	15

	 
	Section 2.11.
	Notices to Clearing Agency
	15

	 
	Section 2.12.
	Definitive Notes
	16

	 
	Section 2.13.
	Tax Treatment
	16

	ARTICLE III
	COVENANTS
	16

	 
	Section 3.01.
	Payment of Principal and Interest
	16

	 
	Section 3.02.
	Maintenance of Office or Agency
	17

	 
	Section 3.03.
	Money for Payments to be Held in Trust
	17

	 
	Section 3.04.
	Existence
	19

	 
	Section 3.05.
	Protection of Collateral
	19

	 
	Section 3.06.
	Opinions as to Collateral
	19

	 
	Section 3.07.
	Performance of Obligations; Servicing of the Mortgage Loans
	20

	 
	Section 3.08.
	Negative Covenants
	21

	 
	Section 3.09.
	Annual Statement as to Compliance
	22

	 
	Section 3.10.
	No Other Business
	22

	 
	Section 3.11.
	No Borrowing
	22

	 
	Section 3.12.
	Guarantees, Loans, Advances and Other Liabilities
	22

 

 

 

	
             
 	
            i
 

 

TABLE OF CONTENTS

(continued)

 

 

	 
	 
	Page

	 	 	 	 
	 
	Section 3.13.
	Capital Expenditures
	22

	 
	Section 3.14.
	Restricted Payments
	22

	 
	Section 3.15.
	Notice of Rapid Amortization Events and Events of Servicing Termination
	23

	 
	Section 3.16.
	Further Instruments and Acts
	23

	 
	Section 3.17.
	Covenants of the Issuer
	23

	 
	Section 3.18.
	Representations and Warranties of the Issuer
	23

	ARTICLE IV
	SATISFACTION AND DISCHARGE
	24

	 
	Section 4.01.
	Satisfaction and Discharge of Indenture
	24

	 
	Section 4.02.
	Application of Trust Money
	25

	 
	Section 4.03.
	Repayment of Moneys Held by Paying Agent
	26

	ARTICLE V
	REMEDIES
	26

	 
	Section 5.01.
	Remedies
	26

	 
	Section 5.02.
	Limitation of Suits
	26

	 
	Section 5.03.
	Unconditional Rights of Noteholders To Receive Principal and Interest
	27

	 
	Section 5.04.
	Restoration of Rights and Remedies
	27

	 
	Section 5.05.
	Rights and Remedies Cumulative
	27

	 
	Section 5.06.
	Delay or Omission Not a Waiver
	27

	 
	Section 5.07.
	Control by Insurer and Noteholders
	28

	 
	Section 5.08.
	Undertaking for Costs
	28

	 
	Section 5.09.
	Waiver of Stay or Extension Laws
	28

	 
	Section 5.10.
	Action on Notes
	29

	 
	Section 5.11.
	Performance and Enforcement of Certain Obligations
	29

	 
	Section 5.12.
	Subrogation
	29

	 
	Section 5.13.
	Preference Claims
	30

	 
	Section 5.14.
	Noteholder Rights
	31

	 
	Section 5.15.
	Insurer’s Rights Regarding Actions, Proceedings or Investigations
	31

	ARTICLE VI
	THE INDENTURE TRUSTEE
	32

	 
	Section 6.01.
	Duties of Indenture Trustee
	32

	 
	Section 6.02.
	Rights of Indenture Trustee
	34

 

	
             
 	
            ii
 

 

TABLE OF CONTENTS

(continued)

	 
	 
	Page

	 	 	 	 
	 
	Section 6.03.
	Individual Rights of Indenture Trustee
	35

	 
	Section 6.04.
	Indenture Trustee’s Disclaimer
	35

	 
	Section 6.05.
	Notice of Rapid Amortization Events and Events of Servicing Termination
	35

	 
	Section 6.06.
	Reports by Indenture Trustee to Holders
	36

	 
	Section 6.07.
	Compensation and Indemnity
	36

	 
	Section 6.08.
	Replacement of Indenture Trustee
	36

	 
	Section 6.09.
	Successor Indenture Trustee by Merger
	38

	 
	Section 6.10.
	Appointment of Co-Indenture Trustee or Separate Indenture Trustee
	38

	 
	Section 6.11.
	Eligibility; Disqualification
	39

	 
	Section 6.12.
	Representations and Warranties
	39

	 
	Section 6.13.
	Preferential Collection of Claims Against Issuer
	40

	ARTICLE VII
	NOTEHOLDERS’ LISTS AND REPORTS
	40

	 
	Section 7.01.
	Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders
	40

	 
	Section 7.02.
	Preservation of Information; Communications to Noteholders
	40

	 
	Section 7.03.
	Reports by Issuer
	41

	 
	Section 7.04.
	Reports by Indenture Trustee
	41

	ARTICLE VIII
	ACCOUNTS, DISBURSEMENTS AND RELEASES
	41

	 
	Section 8.01.
	Collection of Money
	41

	 
	Section 8.02.
	Trust Accounts and Certificate Account
	42

	 
	Section 8.03.
	General Provisions Regarding Accounts
	42

	 
	Section 8.04.
	Release of Collateral
	42

	ARTICLE IX
	SUPPLEMENTAL INDENTURES
	43

	 
	Section 9.01.
	Supplemental Indentures Without Consent of Noteholders
	43

	 
	Section 9.02.
	Supplemental Indentures with Consent of Insurer and Noteholders
	44

	 
	Section 9.03.
	Execution of Supplemental Indentures
	45

	 
	Section 9.04.
	Effect of Supplemental Indenture
	45

	 
	Section 9.05.
	Conformity with Trust Indenture Act
	45

	 
	Section 9.06.
	Reference in Notes to Supplemental Indentures
	45

 

 

	
             
 	
            iii
 

 

TABLE OF CONTENTS

(continued)

 

	 
	 
	Page

	 	 	 	 
	 
	Section 9.07.
	Opinion of Counsel
	46

	ARTICLE X
	REDEMPTION OF NOTES
	46

	 
	Section 10.01.
	Redemption
	46

	 
	Section 10.02.
	Form of Redemption Notice
	46

	 
	Section 10.03.
	Notes Payable on Optional Redemption Date
	47

	ARTICLE XI
	MISCELLANEOUS
	47

	 
	Section 11.01.
	Compliance Certificates and Opinions, etc
	47

	 
	Section 11.02.
	Form of Documents Delivered to Indenture Trustee
	48

	 
	Section 11.03.
	Acts of Noteholders
	49

	 
	Section 11.04.
	Notices, etc., to Indenture Trustee, Issuer, Insurer and Rating Agencies
	49

	 
	Section 11.05.
	Notices to Noteholders; Waiver
	50

	 
	Section 11.06.
	Rights of Insurer to Exercise Rights of Noteholders
	50

	 
	Section 11.07.
	Conflict with Trust Indenture Act
	51

	 
	Section 11.08.
	Effect of Headings and Table of Contents
	51

	 
	Section 11.09.
	Successors and Assigns
	51

	 
	Section 11.10.
	Severability
	51

	 
	Section 11.11.
	Benefits of Indenture and Consents of Noteholders
	51

	 
	Section 11.12.
	Legal Holidays
	51

	 
	Section 11.13.
	Governing Law
	51

	 
	Section 11.14.
	Counterparts
	52

	 
	Section 11.15.
	Recording of Indenture
	52

	 
	Section 11.16.
	Trust Obligations
	52

	 
	Section 11.17.
	No Petition
	53

	 
	Section 11.18.
	Inspection
	53

 

	
             
 	
            iv
 

 

TABLE OF CONTENTS

(continued)

 

 

 

EXHIBITS

	
            EXHIBIT A
 	
            Form of Notes
 	
             

	
            EXHIBIT B
 	
            Form of ERISA Transfer Affidavit
 	
             

	
            EXHIBIT C
 	
            Form of Rule 144A Investment Representation Letter
 
				

 

	
             
 	
            v
 

 

 

 

This Indenture (this “Indenture”), dated as of December 21, 2006, is by and between INDYMAC HOME EQUITY MORTGAGE LOAN ASSET-BACKED TRUST, SERIES 2006-H4, a Delaware statutory trust (the “Issuer”), and DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking association, as indenture trustee and not in its individual capacity (the “Indenture Trustee”).

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Issuer’s variable rate notes (the “Notes”) and the Insurer:

As security for the payment and performance by the Issuer of its obligations under this Indenture and the Notes, and as an additional inducement to the Insurer to issue the Policy, the Issuer has agreed to assign the Collateral (as defined below) to the Indenture Trustee on behalf of the Noteholders and the Insurer.

MBIA Insurance Corporation. (the “Insurer”) has issued and delivered a financial guaranty insurance policy for the Notes, dated the Closing Date (the “Policy”), pursuant to which the Insurer guarantees the Insured Payment (as defined in the Policy).

As an inducement to the Insurer to issue and deliver the Policy, the Issuer and the Insurer have executed and delivered the Insurance and Indemnity Agreement, dated as of December 21, 2006 (as amended from time to time, the “Insurance and Indemnity Agreement”), among the Insurer, the Issuer, IndyMac ABS, Inc., IndyMac Bank, F.S.B., and the Indenture Trustee.

GRANTING CLAUSE

Each of the Issuer and the Owner Trustee hereby Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of the Holders of the Notes and the Insurer, all of the Issuer’s right, title and interest, whether now owned or hereafter acquired, in and to:  (i) the Trust Fund (as defined in the Sale and Servicing Agreement); (ii) the Issuer’s rights and benefits but none of its obligations under the Sale and Servicing Agreement (including the Issuer’s right to cause the Depositor to repurchase Mortgage Loans from the Issuer under the circumstances described therein); (iii) the Issuer’s rights and benefits but none of its obligations under the Administration Agreement; (iv) the Issuer’s rights and benefits but none of its obligations under the Mortgage Loan Purchase Agreement (including the Issuer’s right to cause the Seller to
repurchase Mortgage Loans from the Issuer under the circumstances described therein); (v) the Trust Accounts, all amounts, security entitlements and other property in the Trust Accounts from time to time; (vi) all other property of the Issuer from time to time; and (vii) all present and future claims, demands, causes of action and choses in action in respect of any or all of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all 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 (collectively, the “Collateral”).

 

 

 

 

The foregoing Grant is made in trust to secure the payment of principal of and interest on, and any other amounts owing in respect of, the Notes, and to secure (i) the payment of all amounts due on the Notes in accordance with their terms, (ii) the payment of all other sums payable under this Indenture with respect to the Notes, and (iii) compliance with the provisions of this Indenture, all as provided in this Indenture.

The Indenture Trustee, as indenture trustee on behalf of the Holders of the Notes, acknowledges such Grant, accepts the trusts under this Indenture in accordance with the provisions of this Indenture and agrees to perform its duties required in this Indenture to the best of its ability to the end that the interests of the Holders of the Notes and the Insurer may be adequately and effectively protected.

The Indenture Trustee hereby agrees that it will hold the Policy in trust and that it will hold any proceeds of any claim made upon the Policy solely for the use and the benefit of the Noteholders in accordance with the terms hereof and the terms of the Policy.

Neither the Indenture Trustee nor the Issuer assumes or shall assume any obligation under any Mortgage Note that provides for the funding of future Draws to the Mortgagor thereunder, and neither the Indenture Trustee nor the Issuer shall be obligated to fund any such future Draws.

ARTICLE I

 

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01.    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.  Capitalized terms used but not defined herein shall have the respective meanings set forth in the Sale and Servicing Agreement (as defined below).

Act:  The meaning specified in Section 11.03(a).

Applicable Law:  The meaning specified in Section 6.02(h).  

Applicants:  The meaning set forth in Section 7.02.

Authorized Officer:  With respect to the Issuer, 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) and, so long as the Administration Agreement is in effect, any Vice President, Assistant Vice President, Trust Officer or more senior officer of the Administrator within its Corporate Trust Office who is authorized to act for the Administrator in matters relating to the Issuer and to be acted upon by the Administrator pursuant to the Administration Agreement.

Benefit Plans:  The meaning specified in Section 2.03(a).

 

 

	
             
 	
            2
 

 

 

 

Book-Entry Notes:  Beneficial interests in the Notes designated as “Book-Entry Notes” in this Indenture, ownership and transfers of which shall be evidenced or made through book entries by a Clearing Agency as described in Section 2.10; provided, that after the occurrence of a condition whereupon Definitive Notes are to be issued to Note Owners, such Book-Entry Notes shall no longer be “Book-Entry Notes.”

Certificate of Trust:  The certificate of trust of the Issuer substantially in the form of Exhibit B to the Trust Agreement.

Clearing Agency:  An organization registered as a “clearing agency” pursuant to Section 17A of the Exchange Act, as amended.  As of the Closing Date, the Clearing Agency shall be The Depository Trust Company.

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

Clearstream:  Clearstream Banking Luxembourg, société anonyme, and any successor thereto.

Collateral:  The meaning specified in the Granting Clause of this Indenture.

Commission:  The Securities and Exchange Commission, or any successor thereto.

Corporate Trust Office:  The designated office of the Indenture Trustee in the State of California at which at any particular time its corporate trust business with respect to this Indenture is administered, which office at the date of the execution of this Indenture is located at 1761 East St. Andrew Place, Santa Ana, California 92705, Attn:  Corporate Trust Administration IN06H4 (IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4), facsimile no. (714) 247-6285, and which is the address to which notices to and correspondence with the Indenture Trustee should be directed, or with respect to the Certificate Registrar, the designated office for presentment and surrender of certificates for registration, transfer or exchange thereof located at DB Services Tennessee, 648 Grassmere Road, Nashville, Tennessee 37211, Attn: Transfer Unit.

Default:  Any occurrence that is, or with notice or the lapse of time or both would become, a Rapid Amortization Event.

Definitive Notes:  Any definitive, fully registered Note.

Depository Institution:  Any depository institution or trust company, including the Indenture Trustee, that (a) is incorporated under the laws of the United States of America or any State thereof, (b) is subject to supervision and examination by federal or state banking authorities and (c) has outstanding unsecured commercial paper or other short-term unsecured debt obligations that are rated in the highest rating category by each Rating Agency, or is otherwise acceptable to each Rating Agency.

Euroclear:  Euroclear SA/NV, as operator of the Euroclear System.

 

 

	
             
 	
            3
 

 

 

 

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

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 Securities:  The meaning specified in Section 2.01.

Grant:  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 Collateral or of any other agreement or instrument shall include all rights, powers and options (but none of the obligations) of the granting party thereunder, including the immediate and continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect of the Collateral and all other 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.

Holder or Noteholder: A Person in whose name a Note is registered on the Note Register.

Independent:  When used with respect to any specified Person, that such Person (a) is in fact independent of the Issuer, any other obligor on the Notes, the Seller, the Depositor and any Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest or any material indirect financial interest in the Issuer, any such other obligor, the Seller, the Depositor or any Affiliate of any of the foregoing Persons and (c) is not connected with the Issuer, any such other obligor, the Seller, the Depositor or any Affiliate of any of the foregoing Persons as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions.

Independent Certificate:  A certificate or opinion to be delivered to the Indenture Trustee and, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing, the Insurer under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.01, made by an Independent appraiser or other expert appointed by an Issuer Order and approved by the Indenture Trustee and, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing, the Insurer in the exercise of reasonable care, and such opinion or certificate shall state that the signer has read the definition of “Independent” in this Indenture and that the signer is Independent
within the meaning thereof.

Issuer:  IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4, a Delaware statutory trust, or any successor and, for purposes of any provision contained herein and required by the TIA, each other obligor on the Notes.

 

 

	
             
 	
            4
 

 

 

 

Issuer Order or Issuer Request:  A written order or request signed in the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture Trustee.

Notes:  The Notes issued pursuant to this Indenture, substantially in the form attached hereto as Exhibit A.

Note Depository Agreement:  The agreement dated December 21, 2006, among the Issuer, the Administrator, the Indenture Trustee and The Depository Trust Company, as the initial Clearing Agency, relating to the Notes.

Note Owner or Owner:  With respect to a Book-Entry Note, the Person that is the beneficial owner of such Book-Entry Note, as reflected on the books of the Clearing Agency or on the books of a Person maintaining an account with such Clearing Agency (directly as a Clearing Agency Participant or as an indirect participant, in each case in accordance with the rules of such Clearing Agency), and with respect to a Definitive Note, the Person that is the registered owner of such Note as reflected in the Note Register.

Note Register and Note Registrar:  The respective meanings specified in Section 2.04.

Officer’s Certificate:  A certificate signed by any Authorized Officer of the Issuer, under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.01, and delivered to the Indenture Trustee and, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing, the Insurer.  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.

Outstanding:  As of the date of determination, all Notes theretofore authenticated and delivered under this Indenture except:

(i)           Notes theretofore cancelled by the Note Registrar or delivered to the Note Registrar for cancellation;

(ii)          Notes the payment for which money in the necessary amount has been theretofore deposited with the Indenture Trustee or any Paying Agent in trust for the Holders of such Notes (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 Indenture Trustee); and

(iii)        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 bona fide purchaser;

provided, however, that Notes which have been paid with proceeds of the Policy shall continue to remain Outstanding for purposes of the Indenture until the Insurer has been paid as subrogee under the Insurance and Indemnity Agreement or the Insurer has been reimbursed pursuant to the Insurance and Indemnity Agreement, as evidenced by a written notice from the Insurer delivered to the Indenture Trustee, and the Insurer shall be deemed to be the Holder thereof to the extent of 

 

	
             
 	
            5
 

 

 

any payments thereon made by the Insurer; provided further, that in determining whether the Holders of the requisite Outstanding Amount of the Notes have given any request, demand, authorization, direction, notice, consent or waiver hereunder or under any Transaction Document, Notes owned by the Issuer, any other obligor upon the Notes, the Depositor, the Owner Trustee, the Indenture Trustee, the Servicer, the Administrator or any Affiliate of any of the foregoing Persons shall be disregarded and deemed not to be Outstanding, except that, 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 Amount and 100% of the Outstanding Amount 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 Servicer, the Administrator or any Affiliate of any of the foregoing Persons.

Outstanding Amount:  With respect to any Notes or all of the Notes, as applicable, and any date of determination, the Note Principal Amount or aggregate Note Principal Amount that is Outstanding as of such date.

Paying Agent:  The Indenture Trustee or any other Person that meets the eligibility standards for the Indenture Trustee specified in Section 6.11 and is authorized by the Issuer to make payments to and distributions from the Trust Accounts, including payments of principal and/or interest on the Notes on behalf of the Issuer.

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 2.05 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.

Preference Claim:  The meaning specified in Section 5.13(b).

Proceeding:  Any suit in equity, action at law or other judicial or administrative proceeding.

Prospective Owner:  Each prospective purchaser and any subsequent transferee of a Note.

PTCE:  The meaning specified in Section 2.03(a).

QIB:  A “qualified institutional buyer” as defined in Rule 144A.

Rating Agency Condition:  With respect to any action to which the Rating Agency Condition applies, that each Rating Agency shall have been given 10 days (or such shorter period as is acceptable to such Rating Agency) prior notice thereof and that each Rating Agency shall have notified the Depositor, the Issuer, the Indenture Trustee, and, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer, the Insurer in 

 

	
             
 	
            6
 

 

 

writing that such action will not result in a reduction or withdrawal of the then current rating of the rated Notes without, in the case of the Notes, taking into account the Policy.

Responsible Officer:  When used with respect to the Indenture Trustee, any Managing Director, any Director, any 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.

Rule 144A:  Rule 144A under the Securities Act.

S&P:  Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc

Sale and Servicing Agreement:  The Sale and Servicing Agreement dated as of December 12, 2006, among the Issuer, IndyMac ABS, Inc., as depositor, IndyMac Bank, F.S.B., as seller and servicer, and Deutsche Bank National Trust Company, as indenture trustee, as such may be amended or supplemented from time to time.

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

Similar Law:  The meaning specified in Section 2.03(a).

State:  Any one of the 50 States of the United States of America or the District of Columbia.

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 Sale and Servicing Agreement.

	
             
 	
            Section 1.02.
 	
            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.

 

 

	
             
 	
            7
 

 

 

 

“indenture trustee” or “institutional trustee” means the Indenture Trustee.

“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 Commission have the respective meanings assigned to them by such definitions.

	
             
 	
            Section 1.03.
 	
            Rules of Construction.  Unless the context otherwise requires:
 
					

(i)          a term has the meaning assigned to it;

(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)      “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.

 

 

	
             
 	
            8
 

 

 

 

ARTICLE II

 

THE NOTES

Section 2.01.    Form.  The Notes shall be designated as the “IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4, Series 2006-H4, Asset-Backed Notes, Series 2006-H4.”  The Notes, together with the Indenture Trustee’s certificate of authentication, shall be in substantially the forms 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, consistently herewith, 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 global certificates (“Global Securities”) representing the Book-Entry Notes shall be typewritten, printed, lithographed or engraved or produced by any 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 2.02.     Execution, Authentication and Delivery.  The Notes shall be executed on behalf of the Issuer by any Authorized Officer of the Owner Trustee or the Administrator.  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 or the Administrator 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 Indenture Trustee shall, upon Issuer Order, authenticate and deliver the Notes for original issue in the Initial Note Principal Amount of $650,000,000.  The aggregate principal amounts of the Notes at any time may not exceed such amount.

The Notes will be issued in minimum principal amount denominations of $250,000 and integral multiples of $1,000 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 Indenture Trustee 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 2.03.
 	
            Limitations on Transfer of the Notes.
 

 

 

	
             
 	
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(a)          No transfer of a Note in the form of a Definitive Note shall be made unless the Note Registrar shall have received either (i) a representation from the transferee of such Note, acceptable to and in form and substance satisfactory to the Note Registrar and the Depositor (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 such transferee (i) is not acquiring such Note for, or on behalf of, an employee benefit plan or other retirement arrangement that is subject to ERISA or to Section 4975 of the Code or to any substantially similar law (“Similar Law”), or any entity deemed to hold the plan assets of the foregoing (collectively, “Benefit
Plans”), or (ii) its acquisition and holding of such Notes for, on behalf of, or with the assets of, a Benefit 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 (x) the statutory exemption set forth under Section 408(b)(17) of ERISA or Section 4975(d)(20) of the Code, (y) Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or (z) 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 first sentence 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 Note Holder of the beneficial interest in such Note).

(b)          To the extent permitted under applicable law (including, but not limited to, ERISA), none of the Indenture Trustee, the Note Registrar or the Depositor shall have any liability to any Person for any registration or transfer of any Note that is in fact not permitted by this Section 2.03 or for the Indenture Trustee (or any paying agent on its behalf) making any payments due on such Note to the Holder thereof or taking any other action with respect to such Holder 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 Indenture Trustee, the Note Registrar 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 Indenture Trustee, the Note Registrar 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 this Indenture, the Prospectus and any other offering document.

In the event that a Note is transferred to a Person that does not meet the requirements of this Section 2.03, 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 Depositor, the Indenture Trustee or any intermediary; and the Indenture Trustee shall not make any payments on such Note for as long as such Person is the Holder of such Note.

The Indenture Trustee shall cause each Note to contain a legend substantially similar to the applicable legend provided in Exhibit A hereto stating that transfer of such Note is subject to certain restrictions as set forth herein.

(c)          Any purported transfer of a Note (or any interest therein) not in accordance with this Section 2.03 shall be null and void and shall not be given effect for any purpose hereunder.

 

 

	
             
 	
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(d)          The Indenture Trustee will not have the ability to monitor transfers of the Notes while they are in book-entry form and will have liability for transfers of Book-Entry Notes in violation of any of the transfer restrictions described in this Section 2.03.

Section 2.04.   Registration; Registration of Transfer and Exchange.  The Indenture Trustee initially shall be the “Note Registrar” for the purpose of registering Notes and transfers of Notes as herein provided.  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.  The Issuer shall cause the Note Registrar to keep a register (the “Note Register”) in which, subject to such reasonable regulations as it 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.

If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar, the Issuer will give the Indenture Trustee and, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer, the Insurer prompt written notice of the appointment of such Note Registrar and of the location, and any change in the location, of the Note Register, and the Indenture Trustee and, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer, the Insurer 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 Holders of the Notes and the principal amounts and number of such Notes.

Subject to Section 2.03, upon surrender for registration of transfer of any Note at the office or agency of the Issuer to be maintained as provided in Section 3.02, the Issuer shall execute, and the Indenture Trustee shall authenticate and the Noteholder shall be entitled to obtain from the Indenture Trustee, in the name of the designated transferee or transferees, one or more new Notes in any authorized denominations, of a like aggregate principal amount.

At the option of the Holder, Notes may be exchanged for other Notes 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 Indenture Trustee shall authenticate and the Noteholder shall be entitled to obtain from the Indenture Trustee, 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.

Every Note presented or surrendered for registration of transfer or exchange shall be duly endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee duly executed by, the Holder thereof or such Holder’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 

 

	
             
 	
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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 Holder 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 Section 2.05 not involving any transfer.

The preceding provisions of this Section 2.04 notwithstanding, the Issuer shall not be required to make and the Note Registrar need not register transfers or exchanges of Notes selected for redemption or of any Note for a period of 15 days preceding the due date for any payment with respect to such Note.

Section 2.05.    Mutilated, Destroyed, Lost or Stolen Notes.  If (i) any mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the Indenture Trustee and the Insurer such security or indemnity as may be required by it to hold the Issuer, the Indenture Trustee and the Insurer harmless, then, in the absence of actual notice to the Issuer, the Note Registrar or the Indenture Trustee that such Note has been acquired by a bona fide purchaser, and upon certification provided by the Holder 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 Optional 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 bona fide 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 Insurer 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 bona fide 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 Insurer in connection therewith.

Upon the issuance of any replacement Note under this Section 2.05, the Issuer, the Indenture Trustee or the Note Registrar may require the payment by the Holder 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) connected therewith.

Every replacement Note issued pursuant to this Section 2.05 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 

 

	
             
 	
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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 2.05 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 2.06.    Persons Deemed Owners.  Prior to due presentment for registration of transfer of any Note, the Issuer, the Indenture Trustee and the Insurer and any agent of the Issuer, the Indenture Trustee or the Insurer may treat the Person in whose name any Note is registered (as of the day of determination) as the owner 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 Indenture Trustee or the Insurer or any agent of the Issuer, the Indenture Trustee or the Insurer shall be affected by notice to the contrary.

Section 2.07.     Payment of Principal and Interest.  (a)  The Notes shall accrue interest at the applicable Note Rate as set forth in the Sale and Servicing Agreement, and such interest shall be payable on each Payment Date, subject to Section 3.01.  Interest shall be computed on the Notes on the basis of a 360-day year and the actual number of days elapsed in each Interest Accrual Period.  With respect to the Notes, the Indenture Trustee shall determine LIBOR for each applicable Interest Accrual Period on the second London Business Day prior thereto, in accordance with the provisions of Section 5.02 of the Sale and Servicing Agreement.  All interest payments on the Notes shall be made pro rata to the Noteholders entitled thereto.  Any
installment of interest or principal payable on the Notes 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 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 Indenture Trustee at least five Business Days prior to the related Record Date, by the Holder of any Note, 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 2.10, with respect to Notes registered on the Record Date in the name of the nominee of the Clearing Agency (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, and provided further that the final installment
of principal payable with respect to any Note on a Payment Date or on the applicable Final Scheduled Payment Date for the Notes (and except for the Optional Redemption Price if the Notes are called for redemption pursuant to Section 10.01), which shall be payable as provided below.  The funds represented by any such checks returned undelivered shall be held in accordance with Section 3.03.

(b)          The principal of the Notes shall be payable in installments on each Payment Date as provided herein, in the Sale and Servicing Agreement and in the Notes, subject to Section 3.01.  Notwithstanding the foregoing, the entire unpaid principal amount of the Notes shall be due and payable, if not previously paid, following a Rapid Amortization Event to the extent and in the manner set forth in Section 5.08 of the Sale and Servicing Agreement.  All principal payments on the Notes shall be made pro rata to the Noteholders entitled thereto.  The Indenture Trustee shall notify the Person in whose name a Note is registered at the close of 

 

	
             
 	
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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 as soon as practicable 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.

Section 2.08.     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 Indenture Trustee and shall be promptly cancelled by the Indenture Trustee.  The Issuer may at any time deliver to the Indenture Trustee 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 Indenture Trustee.  No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section 2.08, except as expressly permitted by this Indenture.  All cancelled Notes may be held or disposed of by the Indenture Trustee 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 Indenture Trustee.

Section 2.09.     Release of Collateral.  (a)  Except as otherwise provided in subsections (b) and (c) of this Section 2.09 and the terms of the Transaction Documents, the Indenture Trustee shall release property from the lien of this Indenture only upon receipt by it of an Issuer Request accompanied by (i) an Officer’s Certificate, (ii) an Opinion of Counsel, (iii) certificates in accordance with TIA Sections 314(c) and (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 (which, so long as any Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default
has occurred and is continuing, shall also be addressed to the Insurer); provided that no such Independent Certificates or Opinion of Counsel in lieu of such Independent Certificates 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.

(b)          The Servicer, on behalf of the Issuer and with the consent of the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and not Insurer Default has occurred and is continuing), 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 by the Seller or the Servicer of the Purchase Price of the Mortgage Loan, (ii) after a Eligible Substitute Mortgage Loan is substituted for such Mortgage Loan and payment of the Substitution Amount, if any, (iii) after liquidation of the Mortgage Loan in accordance with the Sale 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 8.01 of the Sale and Servicing Agreement.

 

 

	
             
 	
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(c)          The Indenture Trustee shall, if requested by the Servicer, temporarily release or cause the applicable custodian temporarily to release to such party the Mortgage File pursuant to the provisions of Section 3.08 of the Sale and Servicing Agreement; provided, however, that the Mortgage File shall have been stamped to signify the Issuer’s pledge to the Indenture Trustee under the Indenture.

Section 2.10.    Book-Entry Notes.  The Notes will be issued in the form of typewritten Notes or Global Securities representing the Book-Entry Notes, to be delivered to, or to the Indenture Trustee as custodian for, the initial Clearing Agency, 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 Clearing Agency, and no Note Owner thereof will receive a Definitive Note representing such Note Owner’s interest in such Note, except as provided in Section 2.12.  Unless and until Definitive Notes have been issued to such Note Owners pursuant to Section 2.12:

(i)         the provisions of this Section 2.10 shall be in full force and effect;

(ii)          the Note Registrar and the Indenture Trustee shall be entitled to deal with the Clearing Agency 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 Note Owners;

(iii)        to the extent that the provisions of this Section 2.10 conflict with any other provisions of this Indenture, the provisions of this Section 2.10 shall control;

(iv)         the rights of Owners of Notes shall be exercised only through the Clearing Agency and shall be limited to those established by law and agreements between such Note Owners and the Clearing Agency and/or the Clearing Agency Participants pursuant to the Note Depository Agreement.  Unless and until Definitive Notes are issued pursuant to Section 2.12, neither the Indenture Trustee nor the Note Registrar shall register any transfer of a beneficial interest in a Book-Entry Note; and the initial Clearing Agency will make book-entry transfers among the Clearing Agency Participants and receive and transmit payments of principal of and interest on the Notes to such Clearing Agency Participants; and

(v)          whenever this Indenture requires or permits actions to be taken based upon instructions or directions of Holders of Notes evidencing a specified percentage of the Outstanding Amount of the Notes, the Clearing Agency shall be deemed to represent such percentage with respect to the Notes only to the extent that it has received instructions to such effect from Owners of the Notes and/or Clearing Agency Participants owning or representing, respectively, such required percentage of the beneficial interest in the Notes or the Notes, as applicable, and has delivered such instructions to the Indenture Trustee.

Section 2.11.     Notices to Clearing Agency.  Whenever a notice or other communication to the Holders of the Notes is required under this Indenture, unless and until Definitive Notes 

 

	
             
 	
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shall have been issued to Owners of the Notes pursuant to Section 2.12, the Indenture Trustee shall give all such notices and communications to the Notes and the Clearing Agency, and shall have no obligation to such Note Owners.

Section 2.12.     Definitive Notes.  If (i) the Clearing Agency 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 (ii) after the occurrence of a Rapid Amortization Trigger Event, Note Owners of the Book-Entry Notes representing beneficial interests aggregating at least a majority of the Outstanding Amount of the Book-Entry Notes advise the Clearing Agency in writing that the continuation of a book-entry system through the Clearing Agency is no longer in the best interests of such Note Owners, then the Clearing Agency shall notify all Note Owners and the Indenture Trustee of the occurrence of any such event and of the availability of Definitive Notes to Owners of the Notes
requesting the same.  Upon surrender to the Indenture Trustee of the typewritten Notes representing the Book-Entry Notes by the Clearing Agency, accompanied by registration instructions, the Issuer shall execute and the Indenture Trustee shall authenticate the Definitive Notes in accordance with the instructions of the Clearing Agency.  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 shall recognize the Holders of the Definitive Notes as Noteholders.

Section 2.13.     Tax Treatment.  The Issuer has made two REMIC elections pursuant to the Trust Agreement and the Notes will constitute a REMIC regular interest in the Upper-Tier REMIC.

ARTICLE III

 

COVENANTS

Section 3.01.     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, this Indenture and the Sale and Servicing Agreement.  Without limiting the foregoing and in accordance with Section 8.02(b), the Issuer will cause to be distributed on each Payment Date all amounts on deposit in the Payment Account, and deposited therein pursuant to the Sale and Servicing Agreement for the benefit of the Notes, to the Noteholders and the Insurer.  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 Collateral as provided in this Indenture.  The Issuer shall not otherwise be liable for payments of the Notes, and none of the owners, 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 3.01, the provisions of this Section 3.01 shall control.

 

 

	
             
 	
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Section 3.02.    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 3.03.     Money for Payments to be Held in Trust.  As provided in Section 8.02, all payments of amounts due and payable with respect to any Notes that are to be made from amounts withdrawn from the Payment Account pursuant to Article V of the Sale and Servicing Agreement shall be made on behalf of the Issuer by the Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from such accounts for payments of Notes shall be paid over to the Issuer except as provided in this Section 3.03.

On or before the Business Day preceding each Payment Date, the Issuer shall deposit or cause to be deposited in the Payment Account an aggregate sum sufficient to pay the amounts then becoming due under the Notes, such sum to be held in trust for the benefit of the Persons entitled thereto, and (unless the Paying Agent is the Indenture Trustee) shall promptly notify the Indenture Trustee of its action or failure so to act.

Any Paying Agent shall be appointed by Issuer Order with written notice thereof to the Indenture Trustee and, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer, the Insurer.  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 Indenture Trustee) which is not, at the time of such appointment, a Depository Institution.

The Issuer shall cause each Paying Agent other than the Indenture Trustee to execute and deliver to the Indenture Trustee and, so long as any Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer, the Insurer 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 3.03, that such Paying Agent will:

(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 and, so long as any Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer, the Insurer 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 with the written consent of the Insurer, if the Insurer is the Controlling Party, forthwith pay to the Indenture Trustee all sums so held in trust by such Paying Agent;

 

 

	
             
 	
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(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 Issuer shall have first provided the calculations pertaining thereto and the amount of any resulting withholding taxes to the Indenture Trustee.

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.

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 the Notes 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, with, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing, the prior written request of the Insurer, on Issuer Request; and the Holder of such Note 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, the Insurer or such Paying Agent with respect to such trust money shall thereupon cease; provided, however, that if such money or any portion thereof had been previously deposited by the Insurer with the Indenture Trustee for the payment of principal or interest on the Notes, to the extent any amounts are owing to the Insurer, such amounts shall be paid promptly to the Insurer upon receipt of a written request by the Insurer to such effect; and, provided, further, that the Indenture Trustee or such Paying Agent, before being required to make any such repayment, shall at the expense and direction of the Issuer cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general circulation in The City of New York (including, but not limited to, The Bond Buyer), 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 publication, any unclaimed balance of such money then remaining will be repaid to the Issuer.  The Indenture Trustee shall also adopt and employ, at the expense and direction of the Issuer, any other reasonable means of notification of such repayment (including, but not limited to, mailing notice of such repayment to Holders 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 Holder).

 

 

	
             
 	
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Section 3.04.     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 Collateral and each other instrument or agreement included in the Collateral.

(b)          Any successor to the Owner Trustee appointed pursuant to Section 9.03 of the 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 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 3.05.    Protection of Collateral.  The Issuer will from time to time prepare, 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 Collateral; or

(iv)         preserve and defend title to the Collateral and the rights of the Indenture Trustee, the Noteholders and the Insurer in such Collateral against the claims of all persons and parties.

The Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact to execute any financing statement, continuation statement or other instrument required to be executed pursuant to this Section 3.05 and hereby authorizes the Indenture Trustee to file in any filing office any financing statement, amendment to financing statement, or continuation statement required to be executed pursuant to this Section 3.05.  The foregoing designation shall not impose on the Indenture Trustee any obligation to take any such action.

Section 3.06.     Opinions as to Collateral.  On the Closing Date, the Issuer shall furnish to the Administrator, the Insurer 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 

 

	
             
 	
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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 3.07.    Performance of Obligations; Servicing of the Mortgage Loans.  (a)  The Issuer will not take any action and will use its best 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 Collateral 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 Sale and Servicing Agreement or such other instrument or agreement.

(b)          The Issuer may contract with other Persons acceptable to the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer) to assist it in performing its duties under this Indenture, and any performance of such duties by a Person identified to the Indenture Trustee and the Insurer in an Officer’s Certificate of the Issuer shall be deemed to be action taken by the Issuer.  Initially, the Issuer has contracted with the Administrator to assist the Issuer in performing its duties under this Indenture.

(c)          The Issuer will punctually perform and observe all of its obligations and agreements contained in this Indenture, the Transaction Documents and in the instruments and agreements included in the Collateral, 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 and the Sale and Servicing 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 Event of Servicer Termination, a Rapid Amortization Event or a Rapid Amortization Trigger Event under the Sale and Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee, the Insurer and each Rating Agency thereof.

(e)          As promptly as possible after the giving of notice of termination to the Servicer of the Servicer’s rights and powers pursuant to Section 7.01 of the Sale and Servicing Agreement, the Indenture Trustee shall proceed in accordance with Section 7.01 and 7.02 of the Sale and Servicing Agreement.

(f)           Without derogating from the absolute nature of the assignment granted to the Indenture Trustee under this Indenture or the rights of the Indenture Trustee hereunder, the Issuer agrees (i) that it will not, without the prior written consent of the Indenture Trustee and the Insurer (so long as the Notes remain Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing), amend, modify, waive, supplement, terminate or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender of, the terms of any Collateral or the Transaction Documents (except to the extent otherwise provided in any such Transaction Document), or waive timely performance or observance by (x) the Servicer or
the Depositor of its respective duties under the Sale and Servicing Agreement, and (y) the Seller of its obligations under the Mortgage Loan Purchase Agreement; and (ii) that any such amendment shall not (A) increase or 

 

	
             
 	
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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, the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer) and the Certificateholders, or (B) reduce the aforesaid percentage of the Notes that is required to consent to any such amendment, without the consent of the Holders of all the Outstanding Notes affected thereby.  If any such amendment, modification, supplement or waiver shall be so consented to by the Indenture Trustee, the Insurer or such Holders, the Issuer agrees, promptly following a request by the Indenture Trustee to do so, 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 3.08.    Negative Covenants.  So long as any Notes are Outstanding, the Issuer shall not:

(i)           except as expressly permitted by this Indenture, the Mortgage Loan Purchase Agreement or the Sale and Servicing Agreement, sell, transfer, exchange or otherwise dispose of any of the properties or assets of the Issuer, including those included in the Collateral without the consent of the Insurer (so long as the Notes remain Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing), or if an Insurer Default has occurred and is continuing, unless directed to do so by the Indenture Trustee;

(ii)          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 Collateral;

(iii)        (A) 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, (B) 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 Collateral 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 Collateral and arising solely as a
result of an action or omission of a Mortgagor or as otherwise permitted in the Sale and Servicing Agreement) or (C) 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 Sale and Servicing Agreement) security interest in the Collateral;

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

(v)          remove the Administrator without cause unless the Rating Agency Condition shall have been satisfied in connection with such removal;

 

 

	
             
 	
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(vi)         take any other action or fail to take any action that would result in an imposition of tax on the Issuer (including, but not limited to, the tax on prohibited transactions under the Code); or

(vii)       except with the prior written consent of the Noteholders, take any action described in Section 5.06 of the Trust Agreement.

Section 3.09.   Annual Statement as to Compliance.  The Issuer will deliver to the Indenture Trustee and the Insurer, within 120 days after the end of each fiscal year of the Issuer (commencing with the fiscal year 2006), 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 Collateral in the manner contemplated by this Indenture and the Transaction Documents 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 Sale 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 personally).

Section 3.14.    Restricted Payments.  The Issuer shall not, directly or indirectly, (i) 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 owner of a beneficial interest in the Issuer or otherwise with respect to any ownership or equity interest or security in or of the Issuer, (ii) redeem, purchase, retire or otherwise acquire for value any such ownership or equity interest or security or (iii) set aside or otherwise segregate any amounts for any such purpose; provided, however, the Issuer may make, or cause to be made, payments and 

 

	
             
 	
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distributions as contemplated by, and to the extent funds are available for such purpose under, the Sale and Servicing Agreement, this Indenture, the Insurance and Indemnity Agreement or the 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 Transaction Documents.

Section 3.15.    Notice of Rapid Amortization Events and Events of Servicing Termination.  The Issuer shall promptly, and in no event more than three Business Days following such event, give the Indenture Trustee, the Insurer and each Rating Agency written notice of each Rapid Amortization Event and/or Event of Servicer Termination under the Sale and Servicing Agreement, and each default on the part of the Servicer or the Depositor of its obligations under the Sale and Servicing Agreement, to the extent a responsible officer of the Owner Trustee shall have written notice or actual knowledge thereof.

Section 3.16.    Further Instruments and Acts.  Upon request of the Indenture Trustee or the Insurer, 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 3.17.     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 Trust Agreement will be, entering into this Indenture on behalf of the Issuer solely as Owner Trustee under the 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.

Section 3.18.    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 each applicable UCC) in the Collateral 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 either “instruments” or “general intangibles” within the meaning of each applicable UCC;

(iii)        The Issuer owns and has good title to the Collateral 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 Loans to the pledge of the Mortgage Loans 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 its custodian), as set forth in the Sale and Servicing Agreement;

 

 

	
             
 	
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(vi)         The Issuer has received a written acknowledgment from the Indenture Trustee (or its custodian) that it is holding the Mortgage Loans 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 Collateral.  The Issuer has not authorized the filing of, and is not aware of, any financing statements against the Issuer that include a description of the collateral covering the Collateral other than a financing statement relating to the security interest granted to the Indenture Trustee hereunder or that has been terminated.  The Issuer is not aware of any judgment or tax lien filings against the Issuer; 

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

(ix)         The Issuer has caused or will have caused, within ten days, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Collateral granted to the Indenture Trustee hereunder.

(b)          The representations and warranties set forth in this Section 3.18 shall survive the Closing Date and shall not be waived.

ARTICLE IV

 

SATISFACTION AND DISCHARGE

Section 4.01.    Satisfaction and Discharge of Indenture.  Upon payment in full to the Insurer of all amounts due to the Insurer and payment in full to each Noteholder of all amounts due on the Notes, this Indenture shall cease to be of further effect with respect to the Notes, except as to (i) rights of registration of transfer and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments of principal thereof and interest thereon, (iv) the rights, obligations and immunities of the Indenture Trustee hereunder (including the rights of the Indenture Trustee under Section 6.07 and the obligations of the Indenture Trustee under Sections 3.03 and 4.02) and (v) the rights of Noteholders and the Insurer as beneficiaries hereof with respect to
the property so deposited with the Indenture Trustee 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)
 	
            either
 

(1)          all Notes theretofore authenticated and delivered (other than (i) Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.05 and (ii) 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 3.03) have been delivered to the Indenture Trustee for 

 

	
             
 	
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cancellation and the Policy has terminated and been returned to the Insurer for cancellation and all amounts owing to the Insurer have been paid in full; or

(2)          all Notes not theretofore delivered to the Indenture Trustee for cancellation

a.            have become due and payable,

b.            will become due and payable at the applicable Final Scheduled Payment Date within one year, or

c.            are to be called for redemption within one year under arrangements satisfactory to the Indenture Trustee for the giving of notice of redemption by the Indenture Trustee in the name, and at the expense, of the Issuer,

and the Issuer, in the case of a., b. or c. above, has irrevocably deposited or caused to be irrevocably deposited with the Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (which will mature 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 Indenture Trustee for cancellation when due on the Final Scheduled Payment Date or Optional Redemption Date (if the Notes are called for redemption pursuant to Section 10.01 hereof), as the case may be;

(B)         the later of (a) payment in full of all outstanding obligations under the Notes, (b) the payment in full of all unpaid fees and expenses of the Indenture Trustee hereunder and the other Transaction Documents, (c) the payment of all amounts due and owing to the Insurer for unpaid premiums and unreimbursed prior draws made under the Policy and all other amounts owing to the Insurer, together with interest thereon as provided under the Insurance and Indemnity Agreement, and (d) the date on which the Issuer has paid or caused to be paid all other sums payable hereunder by the Issuer; and 

(C)         the Issuer has delivered to the Indenture Trustee and the Insurer an Officer’s Certificate and an Opinion of Counsel (at the Issuer’s expense) and (if required by the TIA or the Indenture Trustee) an Independent Certificate from a firm of certified public accountants, each meeting the applicable requirements of Section 11.01 hereof and, subject to Section 11.02 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

(D)         the Issuer has delivered to each Rating Agency notice of such satisfaction and discharge.

Section 4.02.    Application of Trust Money.  All moneys deposited with the Indenture Trustee pursuant to Sections 3.03 and 4.01 hereof shall be held in trust and applied by it, in accordance with the provisions of the Notes, the Sale and Servicing Agreement and this Indenture, to the payment, either directly or through any Paying Agent, as the Indenture Trustee may determine, to the Holders of the particular Notes for the payment or redemption of which such moneys have been deposited with the Indenture Trustee, of all sums due and to become due thereon for principal and interest and to the Insurer for payments of any amounts due to it under 

 

	
             
 	
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the Transaction Documents; but such moneys need not be segregated from other funds except to the extent required herein or in the Sale and Servicing Agreement or required by law.

Section 4.03.    Repayment of Moneys Held by Paying Agent.  In connection with the satisfaction and discharge of this Indenture with respect to the Notes, all moneys then held by any Paying Agent other than the Indenture Trustee under the provisions of this Indenture with respect to such Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and applied according to Section 3.03 and thereupon such Paying Agent shall be released from all further liability with respect to such moneys.

ARTICLE V

 

REMEDIES

Section 5.01.     Remedies.  If a Rapid Amortization Event as described in Section 5.08 of the Sale and Servicing Agreement shall have occurred and be continuing, the Noteholders shall be entitled on each Payment Date to an amount equal to the Maximum Principal Payment and Interest Payment Amount for such Payment Date payable during such Rapid Amortization Period, payable in accordance with the priorities set forth in Section 5.08 of the Sale and Servicing Agreement.  The rights contained in this Article V are in addition to any rights that the Noteholders possess pursuant to the Sale and Servicing Agreement.

Section 5.02.    Limitation of Suits.  No Holder of any Note 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 Holder has previously given written notice to the Indenture Trustee of a continuing Rapid Amortization Event;

(ii)          the Holders of not less than 50% of the Outstanding Amount of the Notes have made written request to the Indenture Trustee to institute such proceeding with respect to the Notes in respect of such Rapid Amortization Event in its own name as Indenture Trustee hereunder;

(iii)        such Holder or Holders have offered to the Indenture Trustee indemnity reasonably satisfactory to it 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;

(v)          no direction inconsistent with such written request has been given to the Indenture Trustee during such 60-day period by the Holders of a majority of the Outstanding Amount of the Notes; and

(vi)         the  Notes are no longer outstanding and no Reimbursement Amounts remain due and owing to the Insurer or an Insurer Default shall have occurred and be continuing;

 

 

	
             
 	
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it being understood and intended that no Holder of Notes shall have any right in any manner whatsoever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holder of Notes or to obtain or to seek to obtain priority or preference over any other Holder or to enforce any right under this Indenture, except in the manner herein provided.

In the event the Indenture Trustee shall receive conflicting or inconsistent requests and indemnity from two or more groups of Holders of Notes, each representing less than a majority of the Outstanding Amount of the Notes, the Indenture Trustee shall take direction from the group providing indemnity and representing the greater percentage of the Outstanding Amount of the Notes, notwithstanding any other provisions of this Indenture.

Section 5.03.    Unconditional Rights of Noteholders To Receive Principal and Interest.  Notwithstanding any other provisions in this Indenture, the Holder of any Note 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 Optional 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 Holder.

Section 5.04.    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, then and in every such case the Issuer, the Insurer, 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, the Insurer and the Noteholders shall continue as though no such proceeding had been instituted.

Section 5.05.    Rights and Remedies Cumulative.  No right or remedy herein conferred upon or reserved to the Controlling Party 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 5.06.     Delay or Omission Not a Waiver.  No delay or omission of the Indenture Trustee, the Insurer or any Holder of any Note to exercise any right or remedy accruing upon any Rapid Amortization Event shall impair any such right or remedy or constitute a waiver of any such Rapid Amortization Event or an acquiescence therein.  Every right and remedy given by this Article V or by law to the Indenture Trustee, the Insurer or to the Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee, the Insurer or by the Noteholders, as the case may be.

 

 

	
             
 	
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Section 5.07.     Control by Insurer and Noteholders.  The Insurer (or, if an Insurer Default shall have occurred and is continuing or if the Notes are no longer Outstanding and no Reimbursement Amounts remain due and owing to the Insurer, Holders of a majority of the Outstanding Amount 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 pursuant to Section 5.08 of the Sale and Servicing Agreement 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; and

(ii)          the Indenture Trustee may take any other action deemed proper by the Indenture Trustee that is not inconsistent with such direction;

provided, however, that, subject to Section 6.01, 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 5.08.     Undertaking for Costs.  All parties to this Indenture agree, and each Holder of any Note by such Holder’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 and expenses, 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; but the provisions of this
Section 5.08 shall not apply to (a) any suit instituted by the Indenture Trustee, (b) any suit instituted by the Insurer, any Noteholder, or group of Noteholders with the prior written consent of the Insurer (so long as the Notes remain Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred), in each case holding in the aggregate more than 10% of the Outstanding Amount of 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 Optional Redemption Date).

Section 5.09.    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.

 

 

	
             
 	
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Section 5.10.    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, the Insurer or the Noteholders shall be impaired by the recovery of any judgment by the Indenture Trustee or the Insurer against the Issuer or by the levy of any execution under such judgment upon any portion of the Collateral or upon any of the assets of the Issuer.

	
             
 	
            Section 5.11.
 	
            Performance and Enforcement of Certain Obligations.
 

(a)          Promptly following a request from the Indenture Trustee (at the direction of the Insurer, so long as the Notes remain Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) to do so and at the Servicer’s or Seller’s expense, as applicable, the Issuer agrees to take all such lawful action as the Indenture Trustee may request to compel or secure the performance and observance by the Seller and the Servicer, as applicable, of each of their obligations to the Issuer under or in connection with the Sale and Servicing Agreement and the Mortgage Loan Purchase Agreement in accordance with the terms thereof, and to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer
under or in connection with the Sale and Servicing Agreement and the Mortgage Loan Purchase 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 or the Servicer thereunder and the institution of legal or administrative actions or proceedings to compel or secure performance by the Seller or the Servicer of each of their respective obligations under the Sale and Servicing Agreement and the Mortgage Loan Purchase Agreement.

(b)          If a Rapid Amortization Event has occurred and is continuing, the Indenture Trustee, with the consent of the Insurer, may, and, at the written direction of the Insurer (or, if the Notes are no longer outstanding and no Reimbursement Amounts remain due and owing to the Insurer or if an Insurer Default has occurred and is continuing, the Holders of 66 2/3% of the Outstanding Amount of the Notes) shall, exercise all rights, remedies, powers, privileges and claims of the Issuer against the Seller or the Servicer under or in connection with the Transaction Documents, including the right or power to take any action to compel or secure performance or observance by the Seller, the Depositor, the Servicers or the Servicer of each of their obligations to the Issuer under the Transaction
Documents and to give any consent, request, notice, direction, approval, extension or waiver under the Transaction Documents, and any right of the Issuer to take such action shall be suspended.

Section 5.12.    Subrogation.  The Indenture Trustee shall receive as attorney-in-fact of each Holder of Notes any Insured Payments  from the Insurer pursuant to the Policy.  Any and all Insured Payments disbursed by the Indenture Trustee from claims made under the Policy shall not be considered payment by the Issuer, and shall not discharge the obligations of the Issuer with respect thereto.  The Insurer shall, to the extent it makes any payment with respect to the Notes, become subrogated to the rights of the recipient of such payments to the extent of such payments.  Subject to and conditioned upon any payment with respect to the Notes by or on behalf of the Insurer, the Indenture Trustee shall assign to the Insurer all rights to the payment of interest or principal with respect to the Notes which
are then due for payment to the extent of all payments made by the Insurer.

 

 

	
             
 	
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            Section 5.13.
 	
            Preference Claims.
 

(a)          In the event that the Indenture Trustee has received a certified copy of an order of the appropriate court that any payment of principal and interest on a Note has been avoided in whole or in part as a preference payment under applicable bankruptcy law pursuant to a final nonappealable order of a court having competent jurisdiction, the Indenture Trustee shall so notify the Insurer, shall comply with the provisions of the Policy to obtain payment by the Insurer of such avoided payment, and shall, at the time it provides notice to the Insurer, notify Holders of the Notes by mail that, in the event that any Noteholder’s payment is so recoverable, such Noteholder will be entitled to payment pursuant to the terms of the Policy.  The Indenture Trustee shall furnish to the Insurer at its
written request, the requested records it holds in its possession evidencing the payments of principal of and interest on Notes, if any, which have been made by the Indenture Trustee and subsequently recovered from Noteholders and the dates on which such payments were made.  Pursuant to the terms of the Policy, the Insurer will make such payment on behalf of the related Noteholder to the receiver, conservator, debtor-in-possession or trustee in bankruptcy named in the final order of the court exercising jurisdiction on behalf of the Noteholders and not to the Indenture Trustee or any Noteholder directly (unless such Noteholder has returned principal or interest paid on the Notes to such receiver or trustee in bankruptcy, in which case the Insurer shall make such payment to the Indenture Trustee for payment to such Noteholder in accordance with the terms of the Policy).

(b)          The Indenture Trustee shall promptly notify the Insurer of any proceeding or the institution of any action (of which the Indenture Trustee has actual knowledge) seeking the avoidance as a preferential transfer under applicable bankruptcy, insolvency, receivership, rehabilitation or similar law (a “Preference Claim”) of any distribution made with respect to the Notes.  Each Holder of Notes, by its purchase of Notes, and the Indenture Trustee hereby agree that so long as an Insurer Default shall not have occurred and be continuing, the Insurer may at any time during the continuation of any proceeding relating to a Preference Claim direct all matters relating to such Preference Claim, including, without limitation, (i) the direction of any appeal of any order relating to any
Preference Claim and (ii) the posting of any surety, supersedes or performance bond pending any such appeal at the expense of the Insurer, but subject to reimbursement as provided in the Insurance and Indemnity Agreement.  In addition, and without limitation of the foregoing, as set forth in Section 5.12, the Insurer shall be subrogated to, and each Holder of Notes and the Indenture Trustee hereby delegate and assign, to the fullest extent permitted by law, the rights of the Indenture Trustee and each Holder of Notes in the conduct of any proceeding with respect to a Preference Claim, including, without limitation, all rights of any party to an adversary proceeding action with respect to any court order issued in connection with any such Preference Claim.  All actions taken under this Section 5.13(b) by the Indenture Trustee shall be taken in accordance with the terms of the Policy.

 

 

	
             
 	
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Section 5.14.    Noteholder Rights.  Each Holder of Notes by the acceptance of its Note agrees that, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing, the Insurer shall be treated by the Issuer, the Seller, the Depositor, the Servicers, the Servicer, the Owner Trustee and the Indenture Trustee as if the Insurer were the Holder of the Notes for the purpose of the giving of any consent, the making of any direction or the exercise of any voting or other control rights otherwise given to the Holder of Notes hereunder without any further consent of the Holder of Notes.  So long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has
occurred and is continuing, the Holders of Notes may only exercise such rights with the consent of the Insurer.

Section 5.15.    Insurer’s Rights Regarding Actions, Proceedings or Investigations.  Until all Notes have been paid in full, all amounts owed to the Insurer have been paid in full, the Insurance and Indemnity Agreement has terminated and the Policy has been returned to the Insurer for cancellation, the following provisions shall apply:

(a)          Unless an Insurer Default resulting from the failure of the Insurer to make payments under the Policy has occurred or is continuing, notwithstanding anything contained herein or in the other Transaction Documents to the contrary, the Insurer shall have the right to participate in, to direct the enforcement or defense of, and, at the Insurer’s sole option, to institute or assume the defense of, any action, proceeding or investigation that could adversely affect the Issuer, the Collateral, the Trust Fund or the rights or obligations of the Insurer hereunder or under the Policy or the Transaction Documents, including (without limitation) any insolvency or bankruptcy proceeding in respect of the Servicers, the Seller, the Servicer, the Issuer or any affiliate thereof.  Following notice
to the Indenture Trustee and subject to the preceding sentence, the Insurer shall have exclusive right to determine, in its sole discretion, the actions necessary to preserve and protect the Issuer, the Collateral, and the Trust Fund.  All costs and expenses of the Insurer in connection with such action, proceeding or investigation, including (without limitation) any judgment or settlement entered into affecting the Insurer or the Insurer’s interests, shall be included in the Reimbursement Amount.

(b)          In connection with any action, proceeding or investigation that could adversely affect the Issuer, the Collateral, the Trust Fund or the rights or obligations of the Insurer hereunder or under the Policy or the Transaction Documents, including (without limitation) any insolvency or bankruptcy proceeding in respect of the Servicers, the Seller, the Servicer, the Issuer or any affiliate thereof, the Indenture Trustee hereby agrees to cooperate with, and to take such action as directed by, the Insurer, including (without limitation) entering into such agreements and settlements as the Insurer shall direct, in its sole discretion, without the consent of any Noteholder.

(c)          The Indenture Trustee hereby agrees to provide to the Insurer prompt written notice of any action, proceeding or investigation of which a Responsible Officer has received notice or has actual knowledge that names the Issuer or the Indenture Trustee as a party or that could adversely affect the Issuer, the Collateral, the Trust Fund or the rights or obligations of the Insurer hereunder or under the Policy or the Transaction Documents, including (without limitation) any insolvency or bankruptcy proceeding in respect of the Servicers, the Seller, the Servicer, the Depositor, the Issuer or any affiliate thereof.

 

 

	
             
 	
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(d)          Notwithstanding anything contained herein or in any of the other Transaction Documents to the contrary, the Indenture Trustee shall not, without the Insurer’s prior written consent or unless directed by the Insurer, undertake or join any litigation or agree to any settlement of any action, proceeding or investigation affecting the Issuer, the Collateral, the Trust Fund or the rights or obligations of the Insurer hereunder or under the Policy or the Transaction Documents.

(e)          Each Noteholder, by acceptance of its Note, and the Indenture Trustee agree that the Insurer shall have such rights as set forth in this Section 5.15, which are in addition to any rights of the Insurer pursuant to the other provisions of the Transaction Documents, that the rights set forth in this Section 5.15 may be exercised by the Insurer, in its sole discretion, without the need for the consent or approval of any Noteholder or the Indenture Trustee, notwithstanding any other provision contained herein or in any of the other Transaction Documents, and that nothing contained in this Section 5.15 shall be deemed to be an obligation of the Insurer to exercise any of the rights provided for herein.

ARTICLE VI

 

THE INDENTURE TRUSTEE

Section 6.01.     Duties of Indenture Trustee.  (a)  If a Rapid Amortization Event of which a Responsible Officer of the Indenture Trustee has written notice or has actual knowledge 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 a Rapid Amortization Event of which a Responsible Officer of the Indenture Trustee has received written notice or has actual knowledge:

(i)           the Indenture Trustee undertakes to perform such duties and 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, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Indenture Trustee and on their face conforming to the requirements of this Indenture; 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:

 

 

	
             
 	
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(i)           this paragraph does not limit the effect of paragraph (b) of this Section 6.01;

(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 (or the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing)) 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 Transaction Documents or (B) any Default or Rapid Amortization Event, unless a Responsible Officer of the Indenture Trustee assigned to and working in its corporate trust department obtains actual knowledge of such Default or Rapid Amortization Event 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 Default or Rapid Amortization Event.

(d)          Every provision of this Indenture that in any way relates to the Indenture Trustee is subject to the provisions of this Section 6.01.

(e)          The Indenture Trustee shall not be liable for indebtedness evidenced by or arising under any of the Transaction Documents, 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 Sale 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.

(h)          Every provision of this Indenture or any Transaction Document 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 6.01, Section 6.02 and to the provisions of the TIA.

(i)           The Indenture Trustee shall, upon three Business Days’ prior written notice to the Indenture Trustee, permit any representative of the Insurer, during the Indenture Trustee’s normal business hours, to examine all books of account, records, reports and other papers of the Indenture Trustee relating to the Notes, to make copies and extracts (at the expense of the party 

 

	
             
 	
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requesting such copies or extracts) therefrom and to discuss the Indenture Trustee’s affairs and actions, as such affairs and actions relate to the Indenture Trustee’s duties with respect to the Notes, with the Indenture Trustee’s officers and employees responsible for carrying out the Indenture Trustee’s duties with respect to the Notes.

(j)           The Indenture Trustee shall execute and deliver the Sale and Servicing Agreement and such other documents and instruments as shall be necessary or appropriate in accordance with its duties and obligations under this Indenture.

(k)          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 Collateral, 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 Transaction Document, and (ii) in accordance with any document or instruction delivered to the Indenture Trustee pursuant to the terms of this Indenture; and no implied duties or obligations shall be read into this Indenture or any Transaction Document against the Indenture
Trustee.  The Indenture Trustee agrees that it will, at its own cost and expense, promptly take all action as may be necessary to discharge any liens on any part of the Collateral that result from actions by, or claims against itself that are not related to the administration of the Collateral.

Section 6.02.     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 Transaction Document 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 Transaction Document 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.

 

 

	
             
 	
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(f)           In the event that the Indenture Trustee is also acting as Paying Agent, Note Registrar, custodian or Administrator hereunder or under any Transaction Document, the rights and protections afforded to the Indenture Trustee pursuant to this Article VI shall be afforded to such Paying Agent, Note Registrar, custodian and Administrator.

(g)          The Indenture Trustee shall be under no obligation to institute, conduct or defend any litigation under this Indenture or in relation to this Indenture, at the request, order or direction of any of the Controlling Party or the Holders of the Notes, as applicable, pursuant to the provisions of this Indenture, unless such Holders of Notes of the Controlling Party or the Holders of the Notes, as applicable, shall have offered to the Indenture Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities that may be incurred therein or thereby; provided, however, that the Indenture Trustee shall, upon the occurrence of a Rapid Amortization Event of which a Responsible Officer of the Indenture Trustee
shall have received notice or have actual knowledge (that has not been cured or waived), exercise the rights and powers vested in it by this Indenture or the Sale and Servicing Agreement with reasonable care and skill.

(h)          In order to comply with laws, rules, regulations and executive orders in effect from time to time applicable to banking institutions, including those relating to the funding of terrorist activities and money laundering (“Applicable Law”), the Indenture Trustee is required to obtain, verify and record certain information relating to individuals and entities which maintain a business relationship with Indenture Trustee.  Accordingly, each of the parties agrees to provide to the Indenture Trustee upon its request from time to time such identifying information and documentation as may be available for such party in order to enable the Indenture Trustee to comply with Applicable Law.

(i)           The Indenture Trustee shall be entitled to the same rights, protection, immunities and indemnities afforded to it under this Indenture as in all other Transaction Documents (as defined in the Sale and Servicing Agreement).

Section 6.03.   Individual Rights of Indenture Trustee.  The Indenture Trustee in its individual or any other capacity may become the owner 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 6.04.   Indenture Trustee’s Disclaimer.  The Indenture Trustee shall not be responsible for and makes no representation as to the validity or adequacy of any of the Transaction Documents or the Notes or the sufficiency of the Collateral; it 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 Servicer in this Indenture, any Transaction Document 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 6.05.    Notice of Rapid Amortization Events and Events of Servicing Termination.  If a Rapid Amortization Event or an Event of Servicer Termination occurs and is continuing and if it is either known by, or written notice of the existence thereof has been 

 

	
             
 	
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delivered to, a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall (i) promptly mail to the Insurer notice of such event, and (ii) within 90 days after such knowledge or notice occurs, mail to each Noteholder notice of such event.  Except in the case of a default in payment of principal of or interest on any Note, the Indenture Trustee may withhold the notice of the Noteholders if and so long as one of its Responsible Officers in good faith determines that withholding the notice is in the interests of Noteholders; provided that the Indenture Trustee shall not withhold any such notice to the Insurer.

Section 6.06.    Reports by Indenture Trustee to Holders.  The Indenture Trustee shall deliver to each Noteholder such information with respect to the Notes as may be required to enable such holder to prepare its federal and state income tax returns and shall file such information returns with the Internal Revenue Service with respect to payments or accruals of interest on the Notes as are required to be filed under the Code or applicable Treasury Regulations.

Section 6.07.     Compensation and Indemnity.  The Indenture Trustee shall be entitled, as compensation for its services, to the Indenture Trustee Fee.  In addition, the Indenture Trustee and any co-trustee shall be reimbursed by the Issuer, as provided in Section 5.01 of the Sale 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 Sale and Servicing Agreement).  Reimbursable expenses under this Section 6.07 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 Section 5.01 of the Sale 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 Transaction Document, including, without limitation, the execution and filing of any information returns and being the mortgagee of record with respect to the Mortgage Loans.  The Indenture Trustee or co-trustee, as applicable, shall notify the Issuer and the Administrator 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 and the Administrator shall not relieve the Issuer or the Administrator of their respective obligations hereunder.  The Issuer shall defend any such claim, and the Indenture Trustee and any co-trustee may have separate counsel and the Issuer shall pay the fees and
expenses of such counsel.  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 6.07 shall survive the discharge of this Indenture.  When the Indenture Trustee or any co-trustee incurs expenses after the occurrence of a Default specified in Section 5.08 of the Sale and Servicing Agreement with respect to the Issuer, the expenses are intended to constitute expenses of administration under the Bankruptcy Code or any other applicable federal or state bankruptcy, insolvency or similar law.

Section 6.08.    Replacement of Indenture Trustee.  No resignation or removal of the Indenture Trustee and no appointment of a successor Indenture Trustee shall become effective 

 

	
             
 	
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until the acceptance of appointment by the successor Indenture Trustee pursuant to this Section 6.08.  The Indenture Trustee may resign at any time by giving 90 days’ written notice thereof to the Depositor, the Issuer, the Insurer, 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;

(iv)    the Indenture Trustee otherwise becomes incapable of acting; or

(v)     a tax is imposed with respect to the Issuer by any state in which the Indenture Trustee or the Trust is located and the imposition of the tax would be avoided by the appointment of a different indenture trustee.

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 (approved in writing by the Insurer, so long as such approval is not unreasonably withheld) that satisfies the eligibility requirements of Section 6.11.

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.

A successor Indenture Trustee shall deliver a written acceptance of its appointment to the retiring Indenture Trustee and to the Issuer and the Insurer.  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 and the Insurer.  The retiring Indenture Trustee shall promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.

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, the Insurer or the Holders of a majority in Outstanding Amount of the Notes may petition any court of competent jurisdiction for the appointment of a successor Indenture Trustee reasonably acceptable to the Insurer.

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 acceptable to the Insurer.

 

 

	
             
 	
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Section 6.09.   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 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; and in all such cases such certificates shall have the full force which it is anywhere in the Notes or in this Indenture provided that the certificate of the Indenture Trustee shall have.

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 Collateral may at the time be located, the Indenture Trustee with the consent of the Insurer, which consent shall not be unreasonably withheld, delayed or denied, 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 Issuer, and to vest in such Person or Persons, in such capacity and for the benefit of the Noteholders and the Insurer, such title to the Collateral, or any part hereof, and, subject to the other provisions of this Section 6.10, 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 6.08 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 Collateral 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;

 

 

	
             
 	
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(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 (i) satisfy the requirements of TIA Section 310(a), (ii) have a combined capital and surplus of at least $100,000,000 as set forth in its most recently published annual report of condition (which report shall be provided to the Insurer upon request), (iii) have a long-term debt rating equivalent to “A” or better by S&P or be otherwise acceptable to S&P and (iv) 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 that:

(a)          the Indenture Trustee is duly organized and validly existing as a national banking association in good standing under the laws of the United States with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted;

(b)          the Indenture Trustee has the power and authority to execute and deliver this Indenture and to carry out its terms; and the execution, delivery and performance of this Indenture have been duly authorized by the Indenture Trustee by all necessary corporate action;

 

 

	
             
 	
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(c)          the consummation of the transactions contemplated by this Indenture and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under the articles of organization or bylaws of the Indenture Trustee or any agreement or other instrument to which the Indenture Trustee is a party or by which it is bound; and

(d)          There are no proceedings or investigations pending or the Indenture Trustee’s best knowledge or threatened before any court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Indenture Trustee or its properties:  (i) asserting the invalidity of this Indenture, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Indenture or (iii) seeking any determination or ruling that might materially and adversely affect the performance by the Indenture Trustee of its obligations under, or the validity or enforceability 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.

ARTICLE VII

 

NOTEHOLDERS’ LISTS AND REPORTS

Section 7.01.     Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders.  The Issuer will furnish or cause to be furnished to the Indenture Trustee (a) not more than five days after each Record Date, a list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of the Holders of Notes as of such Record Date, and (b) at such other times as the Indenture Trustee may request in writing, within 30 days after receipt by the Issuer of any such request, a list of similar form and content as of a date not more than 10 days prior to the time such list is furnished; provided, however, that so long as the Indenture Trustee is the Note Registrar, no such list shall be required to be furnished.  The
Indenture Trustee or (if the Indenture Trustee is not the Note Registrar, the Issuer) shall furnish to the Insurer or the Issuer, as applicable, in writing upon their written request and at such other times as the Insurer or the Issuer may request a copy of the list.

Section 7.02.    Preservation of Information; Communications to Noteholders.  (a)  The Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of the Holders of Notes contained in the most recent list furnished to the Indenture Trustee as provided in Section 7.01 and the names and addresses of Holders of Notes received by the Indenture Trustee in its capacity as Note Registrar.  The Indenture Trustee may destroy any list furnished to it as provided in such Section 7.01 upon receipt of a new list so furnished.  If three or more Noteholders, or one or more Holders of Notes evidencing not less than 25% of the Outstanding Amount thereof (hereinafter referred to as “Applicants”), apply in writing to the Indenture Trustee, and such application
states that the Applicants desire to communicate with other holders with respect to their rights under this Indenture or under the Notes, then the Indenture Trustee shall, within five Business Days after the receipt of such application, afford 

 

	
             
 	
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such Applicants access, during normal business hours, to the current list of Holders.  Every Holder, 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 Holders under this Indenture, regardless of the source from which such information was derived.

(b)          Noteholders may communicate pursuant to TIA Section 312(b) with other Noteholders with respect to their rights under this Indenture or under the Notes.

(c)          The Issuer and the Indenture Trustee shall have the protection of TIA Section 312(c).

	
             
 	
            Section 7.03.
 	
            Reports by Issuer.  (a)  The Issuer shall:
 

(i)           file with the Indenture Trustee (with a copy to the Insurer, so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) 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 (and the Indenture Trustee shall transmit by mail to all Noteholders described in TIA Section 313(c)) (with a copy to the Insurer) such summaries of any information, documents and reports required to be filed by the Issuer pursuant to clause (i) of this Section 7.03(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.

Section 7.04.    Reports by Indenture Trustee.  If required by TIA Section 313(a), within 60 days after each March 1, beginning with March 1, 2007, the Indenture Trustee shall mail to each Noteholder as required by TIA Section 313(c) (with a copy to the Insurer) 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

 

ACCOUNTS, DISBURSEMENTS AND RELEASES

Section 8.01.     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 

 

	
             
 	
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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 Collateral, the Indenture Trustee may with the consent of the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing, in which case, with the consent of the Holders of a majority of the Outstanding Amount of the Notes) or shall at the direction of the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing
to the Insurer and no Insurer Default has occurred and is continuing, in which case, at the direction of the Holders of a majority of the Outstanding Amount of the Notes) take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate Proceedings.

Section 8.02.    Trust Accounts and Certificate Account.  (a)  On or prior to the Closing Date, the Indenture Trustee shall establish and maintain in its name the Trust Accounts and the Certificate Account, each as provided in Article V of the Sale and Servicing Agreement.

(b)          On each Payment Date and Optional Redemption Date, the Paying Agent (or, if the Indenture Trustee acts as Paying Agent, the Indenture Trustee) shall distribute all amounts on deposit in the Payment Account as provided in Section 5.01 and Section 5.08 of the Sale and Servicing Agreement.

(c)          On each Payment Date and each Optional Redemption Date, the Indenture Trustee hereby authorizes the Owner Trustee to make the distributions from the Certificate Account as required pursuant to Section 5.07 of the Sale and Servicing Agreement.

Section 8.03.    General Provisions Regarding Accounts.  Funds in the Trust Accounts maintained by the Indenture Trustee shall be invested as provided in the Sale and Servicing Agreement.

Section 8.04.     Release of Collateral.  (a)  Subject to the payment of its fees and expenses pursuant to Section 6.07, the Indenture Trustee may, and when required by the provisions of this Indenture and the Sale and Servicing Agreement shall, execute instruments to release property from the lien of this Indenture, or convey the Indenture Trustee’s interest in the same, in a manner and under circumstances that are not inconsistent with the provisions of this Indenture.  No party relying upon an instrument executed by the Indenture Trustee as provided in this Article VIII shall be bound to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any monies.

(b)          The Indenture Trustee shall, at such time as there are no Notes Outstanding and all sums due to the Noteholders pursuant to the Sale and Servicing Agreement and all fees and expenses of the Indenture Trustee, the Servicer, the Administrator and the custodians pursuant to this Indenture have been paid, and all Reimbursement Amounts and other fees and expenses owing to the Insurer pursuant to the Insurance and Indemnity Agreement have been paid and the Policy has been cancelled and returned to the Insurer, release any remaining portion of the 

 

	
             
 	
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Collateral that secured the Notes from the lien of this Indenture and release to the Issuer or any other Person entitled thereto any funds then on deposit in the Trust Accounts.  The Indenture Trustee shall release property from the lien of this Indenture pursuant to this subsection (b) 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 11.01 hereof.

ARTICLE IX

 

SUPPLEMENTAL INDENTURES

Section 9.01.    Supplemental Indentures Without Consent of Noteholders.  (a)  Without the consent of the Holders of any Notes but with the consent of the Insurer (so long as the Notes are outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) and the prior notice to each Rating Agency, the Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any time and from time to time, may enter into one or more indentures supplemental hereto (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 and the Insurer (so long as the Notes are outstanding or any Reimbursement Amounts remain due and owing to the Insurer
and no Insurer Default has occurred and is continuing), 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 in the Notes contained;

(iii)        to add to the covenants of the Issuer, for the benefit of the Holders of the Notes, 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 the Offering Document, (C) to obtain or maintain a rating for the 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 subparagraph (v) shall adversely affect in any material respect the interests of any Holder not consenting thereto or adversely affect the Insurer
without the consent of the Insurer;

 

 

	
             
 	
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(vi)         to evidence and provide for the acceptance of 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;

provided, however, that no such supplemental indenture shall be entered into unless the Indenture Trustee shall have received an Opinion of Counsel stating that entering into such supplemental indenture will not adversely affect the tax status of the REMICs created by the Trust Agreement.

The Indenture Trustee is 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 9.01 will not cause the then-current ratings on the Notes without taking into account the Policy 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 9.02.    Supplemental Indentures with Consent of Insurer and Noteholders.  The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may, with prior notice to each Rating Agency and with the consent of the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) and the Holders of not less than 66-2/3% of the Outstanding Amount of the Notes, by Act of such Holders delivered to the Issuer and the Indenture Trustee, enter into an indenture or indentures supplemental hereto 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 Holders of the Notes under
this Indenture; provided, however, that no such supplemental indenture shall without the consent of the Holder of each Outstanding Note affected thereby and of the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) (i) reduce in any manner the amount of, or delay the timing of, payments in respect of any Note, (ii) alter the obligations of the Servicer or the Indenture Trustee to make an Advance or alter the servicing standards set forth in the Sale and Servicing Agreement, (iii) reduce the aforesaid percentages of Notes the Holders of which are required to consent to any such supplemental indenture, without the consent of the Holders of all Notes affected thereby and of the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the
Insurer and no Insurer Default has occurred and is continuing), or (iv) permit 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 Collateral or, except as otherwise permitted or contemplated herein, terminate the lien of this Indenture on any property at any time subject hereto or deprive the 

 

	
             
 	
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Holder of any Note of the security provided by the lien of this Indenture and provided, further, that such action shall not, as evidenced by an Opinion of Counsel, adversely affect the tax status of the REMICs created by the Trust Agreement.

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 the Holders of all Notes, whether theretofore or thereafter authenticated and delivered hereunder.

It shall not be necessary for any Act of Noteholders under this Section 9.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof.

Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental indenture pursuant to this Section 9.02, the Indenture Trustee shall mail to the Holders of the Notes, the Insurer and each Rating Agency a notice setting forth in 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 9.03.    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 Insurer shall be entitled to receive, and subject to Section 6.02, shall be fully protected in relying upon, an Opinion of Counsel to the effect provided in Section 9.07.  The Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s own rights, duties, liabilities or immunities under this Indenture or otherwise.

Section 9.04.    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 Holders of the Notes 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 9.05.     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 9.06.     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 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 or the 

 

	
             
 	
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Indenture Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee and the Issuer, to any such supplemental indenture may be prepared and executed by the Issuer and authenticated and delivered by the Indenture Trustee in exchange for Outstanding Notes.

Section 9.07.   Opinion of Counsel.  In connection with any supplemental indenture pursuant to this Article IX, the Indenture Trustee and the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) 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 9.07 shall be construed to require that any Person obtain the consent of the Indenture Trustee to any amendment or waiver or 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.

ARTICLE X

 

REDEMPTION OF NOTES

Section 10.01.  Redemption.  The Notes are subject to redemption pursuant to Section 8.01 of the Sale and Servicing Agreement.  The Issuer shall furnish each Rating Agency notice of such redemption.  If any Notes are to be redeemed pursuant to Section 8.01 of the Sale and Servicing Agreement, the Servicer shall furnish notice of its exercise of its option to redeem the Notes to the Indenture Trustee and the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) not later than 10 days prior to the Optional Redemption Date and the Servicer shall deposit by 10:00 A.M. New York City time three Business Days prior to the Optional Redemption Date with the Indenture Trustee in the Payment Account the
Optional Redemption Price of the Notes to be redeemed, whereupon all such Notes shall be due and payable on the Optional Redemption Date upon the furnishing of a notice complying with Section 10.02 hereof to each Holder of the Notes.

Section 10.02.  Form of Redemption Notice.  Notice of redemption under Section 10.01 shall be given by the Indenture Trustee and the Insurer (so long as the Notes are Outstanding or any Reimbursement Amounts remain due and owing to the Insurer and no Insurer Default has occurred and is continuing) by first-class mail, postage prepaid, or by facsimile mailed or transmitted not later than 10 days prior to the applicable Optional Redemption Date to each Holder of Notes, as of the close of business on the Record Date preceding the applicable Optional Redemption Date, at such Holder’s address or facsimile number appearing in the Note Register.

 

 

	
             
 	
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All notices of redemption shall state:

(i)          the Optional Redemption Date;

(ii)         the Optional Redemption Price; and

(iii)        the place where such Notes are to be surrendered for payment of the Optional Redemption Price (which shall be the office or agency of the Issuer to be maintained as provided in Section 3.02).

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 Holder of any Note shall not impair or affect the validity of the redemption of any other Note.

Section 10.03.  Notes Payable on Optional Redemption Date.  The Notes or portions thereof to be redeemed shall, following notice of redemption as required under Section 10.02 (in the case of redemption pursuant to Section 10.01) and remittance to the Indenture Trustee of the Optional Redemption Price as required under Section 10.01, on the Optional Redemption Date become due and payable at the Optional Redemption Price and (unless the Issuer shall default in the payment of the Optional Redemption Price) no interest shall accrue on the Optional Redemption Price for any period after the date to which accrued interest is calculated for purposes of calculating the Optional Redemption Price.

ARTICLE XI

 

MISCELLANEOUS

Section 11.01.  Compliance Certificates and Opinions, etc.  Upon any application or request by the Issuer to the Indenture Trustee to take any action under any provision of this Indenture, the Issuer shall furnish to the Indenture Trustee and the Insurer:  (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 certified public accountants meeting the applicable requirements of this Section 11.01; provided, 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 pursuant to clauses (i), (ii) or (iii) above need be furnished.

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;

 

 

	
             
 	
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(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.

Section 11.02.  Form of Documents Delivered to Indenture Trustee.  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 Servicer, the Depositor, the Issuer or the Administrator, stating that the information with respect to such factual matters is in the possession of the Servicer, the Depositor, the Issuer or the Administrator, 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 and form one instrument.

Whenever in this Indenture, in connection with any application or certificate or report to the Indenture Trustee, it is provided that the Issuer shall 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 Indenture Trustee’s right 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 11.03.  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; and except as herein otherwise expressly provided such action shall become effective when such instrument or instruments are delivered to the Indenture Trustee and, where it is hereby 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 6.01) conclusive in favor of the Indenture Trustee and the Issuer, if made in the manner provided in this Section 11.03.

(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)          The ownership of Notes shall be proved by the Note Register.

Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Notes shall bind the Holder 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 11.04.  Notices, etc., to Indenture Trustee, Issuer, Insurer and Rating Agencies.  Any request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders or other documents provided or permitted by this Indenture shall be in writing and if such request, demand, authorization, direction, notice, consent, waiver or act of Noteholders is to be made upon, given or furnished to or filed with:

(i)           the Indenture Trustee by any Noteholder, the Insurer or by the Issuer 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 Issuer by the Indenture Trustee, the Insurer or by any Noteholder 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 Sale and Servicing Agreement, or at any other address previously furnished in writing to the Indenture Trustee by the Issuer or the Administrator.  The Issuer shall promptly transmit any notice received by it from the Noteholders to the Indenture Trustee.

(iii)        The Insurer by the Issuer or the Indenture Trustee shall be sufficient for any purpose hereunder if in writing and mailed by first-class mail personally delivered or telecopied to the recipient as follows:

 

 

	
             
 	
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            To the Insurer:
 	
            MBIA Insurance Corporation.
 
	 	 	113 King Street
	 	 	Armonk, New York 10504
	 	 	Attention: IPM-SF
	 	 	Telecopy: (914) 765-3810
	 	 	Confirmation: (914) 765-3781

 

Notices required to be given to the Rating Agencies by the Issuer, the Indenture Trustee or the Owner Trustee shall be in writing, personally delivered or mailed by certified mail, return receipt requested, to the address provided in the Sale and Servicing Agreement or such other address as shall be designated by written notice to the other parties.

Section 11.05.  Notices to Noteholders; Waiver.  Where this Indenture provides for notice to Noteholders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class, postage prepaid to each Noteholder affected by such event (and in all cases, the Insurer shall receive notice), at such Holder’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.

In case, by reason of the suspension of regular mail service as a result of a strike, work stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving of such notice.

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 a Default or a Rapid Amortization Event.

Section 11.06.  Rights of Insurer to Exercise Rights of Noteholders.  By accepting its Note, each Noteholder agrees that unless an Insurer Default exists, the Insurer shall have the right to exercise all rights of the Noteholders as specified under this Agreement without any further consent of the Noteholders.  Any right conferred to the Insurer hereunder shall be suspended and shall run to the benefit of the Noteholders during any period in which there exists an Insurer Default, provided, however, that during an Insurer Default, the consent of the Insurer must be obtained with respect to any amendments that may materially adversely affect the Insurer.

 

 

	
             
 	
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Section 11.07.  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 11.08.  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.

Section 11.09.  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 11.10.  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 11.11.  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, the Insurer and the Noteholders, any benefit or any legal or equitable right, remedy or claim under this Indenture.  Each Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, consents to and agrees to be bound by the terms and conditions of this Indenture.  The Insurer and its successors and permitted assigns shall be third-party beneficiaries to the provisions of this Indenture, and shall be entitled to rely upon and directly to enforce such provisions of this Indenture.

Section 11.12.  Legal Holidays.  In any case where the date on which any payment is due shall not be a Business Day, then (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 additional interest shall accrue for the period from and after any such nominal date in respect of such payment date.

Section 11.13.  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 SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

 

	
             
 	
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Section 11.14.  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 11.15.  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 and the Insurer) to the effect that such recording is necessary either for the 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 11.16.  Trust Obligations.  No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee 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 or the Owner Trustee in their respective individual capacities, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee in its respective individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee 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 (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their respective individual capacities) 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.  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 Trust Agreement.

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 Issuer, (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 Transaction Documents.

 

 

	
             
 	
            52
 

 

 

 

Section 11.17.  No Petition.  The Indenture Trustee, 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 or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under the Bankruptcy Code or any other United States federal or state bankruptcy, insolvency or similar law in connection with any obligations relating to the Notes, this Indenture or any of the Transaction Documents.

Section 11.18.  Inspection.  The Issuer agrees that, on reasonable prior notice, it will permit any representative of the Indenture Trustee or of the Insurer, 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 Public 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 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 may reasonably determine that such disclosure is consistent with its obligations hereunder.

[signature pages follow]

 

	
             
 	
            53
 

 

 

 

IN WITNESS WHEREOF, the Issuer 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.

 

 

	 	INDYMAC HOME EQUITY MORTGAGE LOAN ASSET-BACKED TRUST, 
	 	SERIES 2006-H4, as Issuer
	 	 	 
	
             
 	
            By:
 	
            WILMINGTON TRUST COMPANY,
 
	 	 	not in its individual capacity but solely
	 	 	as Owner Trustee
	 	 	 
	 	 	 
	 	By:	/s/ J. Christopher Murphy 
	 	Name:	J. Christopher Murphy
	 	Title:	Financial Services Officer
	 	 	 
	 	DEUTSCHE BANK NATIONAL
	 	TRUST COMPANY,
	 	not in its individual capacity
	 	but solely as Indenture Trustee
	 	 	 
	 	 	 
	 	By:	/s/ Amy Stoddard
	 	Name:	Amy Stoddard
	 	Title:	Authorized Signer

 

  

 

	
             
 	
            S-1
 	
            IndyMac Home Equity Mortgage Loan
 
	 	 	Asset-Backed Trust, Series 2006-H4

	 	 	Indenture

 

 

EXHIBIT A

FORM OF NOTE

 

 

	
             
 	
            A-1
 

 

 

 

EXHIBIT B

FORM OF ERISA TRANSFER AFFIDAVIT

                                          
      

date

	
            STATE OF NEW YORK
 	
            )
 	
             

	
             
 	
            )  ss.:
 
	
            COUNTY OF NEW YORK
 	
            )
 	
             

	
             
 	
            Re:
 	
            IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4
 
	 	 	Asset-Backed Notes, Series 2006-H4        
	 	 	 

1.            The undersigned is the ______________________ of (the “Investor”), a [corporation duly organized] and existing under the laws of __________, on behalf of which he makes this affidavit.

2.            The Investor either (i) 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 the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or to 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 (each, a “Benefit Plan”) or (ii), on [date of transfer] our acquisition and holding of the Notes for, or on behalf of, or with the assets of, a Benefit 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 (x) the statutory exemption set forth under Section 408(b)(17) of ERISA or Section 4975(d)(20) of the Code, (y) Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or (z) 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 between IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4, as Issuer, and Deutsche Bank National Trust Company, as Indenture Trustee, dated as of December 21, 2006, as amended, modified or supplemented, 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.

 

 

	
             
 	
            B-1
 

 

 

 

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:

 

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-2
 

 

 

 

EXHIBIT C

[FORM OF RULE 144A INVESTMENT REPRESENTATION]

Description of Rule 144A Securities, including numbers:

_______________________________

_______________________________

_______________________________

_______________________________

The undersigned seller, as registered holder (the “Seller”), intends to transfer the Rule 144A Securities described above to the undersigned buyer (the “Buyer”).

1.            In connection with such transfer and in accordance with the agreements pursuant to which the Rule 144A Securities were issued, the Seller hereby certifies the following facts: Neither the Seller nor anyone acting on its behalf has offered, transferred, pledged, sold or otherwise disposed of the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security to, or solicited any offer to buy or accept a transfer, pledge or other disposition of the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security from, or otherwise approached or negotiated with respect to the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security with, any person in any manner, or
made any general solicitation by means of general advertising or in any other manner, or taken any other action, that would constitute a distribution of the Rule 144A Securities under the Securities Act of 1933, as amended (the “1933 Act”), or that would render the disposition of the Rule 144A Securities a violation of Section 5 of the 1933 Act or require registration pursuant thereto, and that the Seller has not offered the Rule 144A Securities to any person other than the Buyer or another “qualified institutional buyer” as defined in Rule 144A under the 1933 Act.

2.            The Buyer warrants and represents to, and covenants with, the Seller, the Indenture Trustee and the Issuer, as defined in the Indenture, dated as of December 21, 2006 (the “Agreement”), between IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H4, as Issuer, and Deutsche Bank National Trust Company, as indenture trustee (the “Indenture Trustee”), as follows:

(a)          The Buyer understands that the Rule 144A Securities have not been registered under the 1933 Act or the securities laws of any state.

(b)          The Buyer considers itself a substantial, sophisticated institutional investor having such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of investment in the Rule 144A Securities.

(c)          The Buyer has been furnished with all information regarding the Rule 144A Securities that it has requested from the Seller or the Indenture Trustee.

 

 

	
             
 	
            C-1
 

 

 

 

(d)          Neither the Buyer nor anyone acting on its behalf has offered, transferred, pledged, sold or otherwise disposed of the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security to, or solicited any offer to buy or accept a transfer, pledge or other disposition of the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security from, or otherwise approached or negotiated with respect to the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security with, any person in any manner, or made any general solicitation by means of general advertising or in any other manner, or taken any other action, that would constitute a distribution of the Rule 144A Securities under the 1933 Act or that
would render the disposition of the Rule 144A Securities a violation of Section 5 of the 1933 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 Rule 144A Securities.

(e)          The Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A under the 1933 Act and has completed either of the forms of certification to that effect attached hereto as Annex 1 or Annex 2.  The Buyer is aware that the sale to it is being made in reliance on Rule 144A.  The Buyer is acquiring the Rule 144A Securities for its own account or the accounts of other qualified institutional buyers, understands that such Rule 144A Securities may be resold, pledged or transferred only (i) to a person reasonably believed to be a qualified institutional buyer that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, or (ii) pursuant to
another exemption from registration under the 1933 Act.

3.            The Buyer is not an employee benefit plan or other plan subject to the prohibited transaction provisions of 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”) (each, a “Plan”), or any Person (including, without limitation, an investment manager, a named fiduciary or a trustee of any Plan) who is using “plan assets” of any Plan (each, a “Plan Investor”), to effect such acquisition. 

4.            This document may be executed in one or more counterparts and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed to be an original; such counterparts, together, shall constitute one and the same document.

 

 

	
             
 	
            C-2
 

 

 

 

IN WITNESS WHEREOF, each of the parties has executed this document as of the date set forth below.

	
            ____________________________
 	
             
 	
            __________________________
 
	
            Print Name of Seller
 	
             
 	
            Print Name of Buyer
 
	
            By:________________________
 	 
 	
            By:________________________
 
	
            Name:
 	
             
 	
            Name:
 
	
            Title:
 	
             
 	
            Title:
 
	
            Taxpayer Identification
 	
             
 	
            Taxpayer Identification:
 
	
            No.                           
 	
             
 	
            No:                          
 
	
            Date:             
 	
             
 	
            Date:             
 

 

 

	
             
 	
            C-3
 

 

 

 

ANNEX 1 TO EXHIBIT C

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Buyers Other Than Registered Investment Companies]

The undersigned hereby certifies as follows in connection with the Rule 144A Investment Representation to which this Certification is attached:

1.            As indicated below, the undersigned is the President, Chief Financial Officer, Senior Vice President or other executive officer of the Buyer.

2.            In connection with purchases by the Buyer, the Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”) because (i) the Buyer owned and/or invested on a discretionary basis $ in securities (except for the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A) and (ii) the Buyer satisfies the criteria in the category marked below.

___         Corporation, etc.  The Buyer is a corporation (other than a bank, savings and loan association or similar institution), Massachusetts or similar business trust, partnership, or charitable organization described in Section 501(c)(3) of the Internal Revenue Code.

___         Bank.  The Buyer (a) is a national bank or banking institution organized under the laws of any State, territory or the District of Columbia, the business of which is substantially confined to banking and is supervised by the State or territorial banking commission or similar official or is a foreign bank or equivalent institution, and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial statements, a copy of which is attached hereto.

___         Savings and Loan.  The Buyer (a) is a savings and loan association, building and loan association, cooperative bank, homestead association or similar institution, which is supervised and examined by a State or Federal authority having supervision over any such institutions or is a foreign savings and loan association or equivalent institution and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial statements.

___         Broker-Dealer.  The Buyer is a dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934.

___        Insurance Company.  The Buyer is an insurance company whose primary and predominant business activity is the writing of insurance or the reinsuring of risks underwritten by insurance companies and which is subject to supervision by the insurance commissioner or a similar official or agency of a State or territory or the District of Columbia.

___         State or Local Plan.  The Buyer is a plan established and maintained by a State, its political subdivisions, or any agency or instrumentality of the State or its political subdivisions, for the benefit of its employees.

 

 

	
             
 	
            C-4
 

 

 

 

___         ERISA Plan.  The Buyer is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974.

___        Investment Adviser.  The Buyer is an investment adviser registered under the Investment Advisers Act of 1940.

___         SBIC.  The Buyer is a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.

___         Business Development Company.  The Buyer is a business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

___         Trust Fund.  The Buyer is a trust fund whose trustee is a bank or trust company and whose participants are exclusively (a) plans established and maintained by a State, its political subdivisions, or any agency or instrumentality of the State or its political subdivisions, for the benefit of its employees, or (b) employee benefit plans within the meaning of Title I of the Employee Retirement Income Security Act of 1974, but is not a trust fund that includes as participants individual retirement accounts or H.R.10 plans.

3.            The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Buyer, (ii) securities that are part of an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan participations, (v) repurchase agreements, (vi) securities owned but subject to a repurchase agreement and (vii) currency, interest rate and commodity swaps.

4.            For purposes of determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Buyer, the Buyer used the cost of such securities to the Buyer and did not include any of the securities referred to in the preceding paragraph.  Further, in determining such aggregate amount, the Buyer may have included securities owned by subsidiaries of the Buyer, but only if such subsidiaries are consolidated with the Buyer in its financial statements prepared in accordance with generally accepted accounting principles and if the investments of such subsidiaries are managed under the Buyer’s direction.  However, such securities were not included if the Buyer is a majority-owned, consolidated subsidiary of another enterprise and the
Buyer is not itself a reporting company under the Securities Exchange Act of 1934.

5.            The Buyer acknowledges that it is familiar with Rule 144A and understands that the seller to it and other parties related to the Certificates are relying and will continue to rely on the statements made herein because one or more sales to the Buyer may be in reliance on Rule 144A.

	
            ____
 Yes
 	
            ____
 No
 	
            Will the Buyer be purchasing the Rule 144A Securities only for the Buyer’s own account?
 
	
             
 	
             
 	
             
 

 

 

 

	
             
 	
            C-5
 

 

 

 

6.            If the answer to the foregoing question is “no”, the Buyer agrees that, in connection with any purchase of securities sold to the Buyer for the account of a third party (including any separate account) in reliance on Rule 144A, the Buyer will only purchase for the account of a third party that at the time is a “qualified institutional buyer” within the meaning of Rule 144A.  In addition, the Buyer agrees that the Buyer will not purchase securities for a third party unless the Buyer has obtained a current representation letter from such third party or taken other appropriate steps contemplated by Rule 144A to conclude that such third party independently meets the definition of “qualified institutional buyer” set forth in Rule 144A.

7.            The Buyer will notify each of the parties to which this certification is made of any changes in the information and conclusions herein.  Until such notice is given, the Buyer’s purchase of Rule 144A Securities will constitute a reaffirmation of this certification as of the date of such purchase.

 

	 	 
	 	Print Name of Buyer
	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Date:	 
	 	 

 

 

 

 

	
             
 	
            C-6
 

 

 

 

ANNEX 2 TO EXHIBIT C

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Buyers That Are Registered Investment Companies]

The undersigned hereby certifies as follows in connection with the Rule 144A Investment Representation to which this Certification is attached:

1.            As indicated below, the undersigned is the President, Chief Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”) because Buyer is part of a Family of Investment Companies (as defined below), is such an officer of the Adviser.

2.            In connection with purchases by Buyer, the Buyer is a “qualified institutional buyer” as defined in SEC Rule 144A because (i) the Buyer is an investment company registered under the Investment Company Act of 1940, and (ii) as marked below, the Buyer alone, or the Buyer’s Family of Investment Companies, owned at least $100,000,000 in securities (other than the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year.  For purposes of determining the amount of securities owned by the Buyer or the Buyer’s Family of Investment Companies, the cost of such securities was used.

The Buyer owned $___________________ in securities (other than the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

The Buyer is part of a Family of Investment Companies which owned in the aggregate $__________________________ in securities (other than the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

3.            The term “Family of Investment Companies” as used herein means two or more registered investment companies (or series thereof) that have the same investment adviser or investment advisers that are affiliated (by virtue of being majority owned subsidiaries of the same parent or because one investment adviser is a majority owned subsidiary of the other).

4.            The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Buyer or are part of the Buyer’s Family of Investment Companies, (ii) bank deposit notes and certificates of deposit, (iii) loan participations, (iv) repurchase agreements, (v) securities owned but subject to a repurchase agreement and (vi) currency, interest rate and commodity swaps.

5.            The Buyer is familiar with Rule 144A and understands that each of the parties to which this certification is made are relying and will continue to rely on the statements made herein because one or more sales to the Buyer will be in reliance on Rule 144A.  In addition, the Buyer will only purchase for the Buyer’s own account.

 

 

	
             
 	
            C-7
 

 

 

 

6.            The undersigned will notify each of the parties to which this certification is made of any changes in the information and conclusions herein.  Until such notice, the Buyer’s purchase of Rule 144A Securities will constitute a reaffirmation of this certification by the undersigned as of the date of such purchase.

 

	 	 
	 	Print Name of Buyer
	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	 
	 	 	 
	 	IF AN ADVISOR:
	 	 	 
	 	 	 
	 	Print Name of Buyer
	 	Date:	 
	 	 

 

 

 

 

	
             
 	
            C-8

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