Document:

CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.,

                                    Depositor

                           DLJ MORTGAGE CAPITAL, INC.,

                                     Seller

                          WILSHIRE CREDIT CORPORATION,

                                    Servicer

                             VESTA SERVICING, L.P.,

                                    Servicer

                                       and

                            THE CHASE MANHATTAN BANK,

                                     Trustee

--------------------------------------------------------------------------------

                         POOLING AND SERVICING AGREEMENT
                           Dated as of August 1, 2001

--------------------------------------------------------------------------------

                           CSFB TRUST SERIES 2001-S18
            CSFB MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-S18

<PAGE>

                                Table of Contents

                                                                            Page
                                                                            ----

ARTICLE I

   DEFINITIONS.................................................................7
         SECTION 1.01     .....................................................7
         SECTION 1.02     Interest Calculations...............................52
         SECTION 1.03     Allocation of Certain Interest Shortfalls...........52

ARTICLE II

   CONVEYANCE OF MORTGAGE LOANS;
   REPRESENTATIONS AND WARRANTIES.............................................53
         SECTION 2.01     Conveyance of Mortgage Loans........................53
         SECTION 2.02     Acceptance by the Trustee...........................57
         SECTION 2.03     Representations and Warranties of the Seller and
                          Servicers...........................................58
         SECTION 2.04     Representations and Warranties of the Depositor as
                          to the Mortgage Loans...............................61
         SECTION 2.05     Delivery of Opinion of Counsel in Connection with
                          Substitutions.......................................61
         SECTION 2.06     Execution and Delivery of Certificates..............61
         SECTION 2.07     REMIC Matters.......................................62
         SECTION 2.08     Covenants of each Servicer..........................62
         SECTION 2.09     Conveyance of REMIC Regular Interests and
                          Acceptance of REMIC 1 by the Trustee; Issuance of
                          Certificates........................................62

ARTICLE III

   ADMINISTRATION AND SERVICING
   OF MORTGAGE LOANS..........................................................64
         SECTION 3.01     Servicers to Service Mortgage Loans.................64
         SECTION 3.02     Subservicing; Enforcement of the Obligations of
                          Subservicers........................................66
         SECTION 3.03     [Reserved]..........................................67
         SECTION 3.04     Trustee to Act as Servicer..........................67
         SECTION 3.05     Collection of Mortgage Loans; Collection Accounts;
                          Certificate Account.................................68
         SECTION 3.06     Establishment of and Deposits to Escrow Accounts;
                          Permitted Withdrawals from Escrow Accounts;
                          Payments of Taxes, Insurance and Other Charges;

                                        i

<PAGE>

                          Simple Interest Excess Sub-Accounts; Deposits in
                          Simple Interest Excess Sub-Accounts.................71
         SECTION 3.07     Access to Certain Documentation and Information
                          Regarding the Mortgage Loans; Inspections...........73
         SECTION 3.08     Permitted Withdrawals from the Collection Accounts
                          and Certificate Account.............................73
         SECTION 3.09     Maintenance of Hazard Insurance and Mortgage
                          Impairment Insurance; Claims; Restoration of
                          Mortgaged Property..................................75
         SECTION 3.10     Enforcement of Due-on-Sale Clauses; Assumption
                          Agreements..........................................76
         SECTION 3.11     Realization Upon Defaulted Mortgage Loans;
                          Repurchase of Certain Mortgage Loans................77
         SECTION 3.12     Trustee to Cooperate; Release of Mortgage Files
                           ...................................................81
         SECTION 3.13     Documents, Records and Funds in Possession of a
                          Servicer to be Held for the Trustee.................82
         SECTION 3.14     Servicing Fee.......................................83
         SECTION 3.15     Access to Certain Documentation.....................83
         SECTION 3.16     Annual Statement as to Compliance...................83
         SECTION 3.17     Annual Independent Public Accountants' Servicing
                          Statement; Financial Statements.....................84
         SECTION 3.18     Maintenance of Fidelity Bond and Errors and
                          Omissions Insurance.................................84
         SECTION 3.19     Duties of the Loss Mitigation Advisor...............85
         SECTION 3.20     Limitation Upon Liability of the Loss Mitigation
                          Advisor.............................................85

ARTICLE IV

   DISTRIBUTIONS AND
   ADVANCES BY THE SERVICERS..................................................86
         SECTION 4.01     Advances by the Servicers...........................86
         SECTION 4.02     Priorities of Distribution..........................87
         SECTION 4.03     [Reserved]..........................................91
         SECTION 4.04     [Reserved]..........................................91
         SECTION 4.05     Allocation of Realized Losses.......................91
         SECTION 4.06     Monthly Statements to Certificateholders............93
         SECTION 4.07     Distributions on the REMIC 1 Regular Interests
                           ...................................................95
         SECTION 4.08     Distributions on the REMIC 2 Regular Interests
                           ...................................................99
         SECTION 4.09      Reserve Fund......................................100
         SECTION 4.10     Prepayment Penalties...............................101

                                       ii

<PAGE>

ARTICLE V

   THE CERTIFICATES..........................................................102
         SECTION 5.01     The Certificates...................................102
         SECTION 5.02     Certificate Register; Registration of Transfer and
                          Exchange of Certificates...........................103
         SECTION 5.03     Mutilated, Destroyed, Lost or Stolen Certificates
                           ..................................................107
         SECTION 5.04     Persons Deemed Owners..............................107
         SECTION 5.05     Access to List of Certificateholders' Names and
                          Addresses..........................................108
         SECTION 5.06     Maintenance of Office or Agency....................108

ARTICLE VI

   THE DEPOSITOR, THE SELLER AND THE SERVICERS...............................109
         SECTION 6.01     Respective Liabilities of the Depositor, the
                          Sellers and the Servicers..........................109
         SECTION 6.02     Merger or Consolidation of the Depositor, the
                          Seller or a Servicer...............................109
         SECTION 6.03     Limitation on Liability of the Depositor, the
                          Seller, the Servicers and Others...................109
         SECTION 6.04     Limitation on Resignation of a Servicer............110

ARTICLE VII

   DEFAULT...................................................................111
         SECTION 7.01     Events of Default..................................111
         SECTION 7.02     Trustee to Act; Appointment of Successor...........112
         SECTION 7.03     Notification to Certificateholders.................114

ARTICLE VIII

   CONCERNING THE TRUSTEE....................................................115
         SECTION 8.01     Duties of the Trustee..............................115
         SECTION 8.02     Certain Matters Affecting the Trustee..............116
         SECTION 8.03     Trustee Not Liable for Certificates or Mortgage
                          Loans .............................................117
         SECTION 8.04     Trustee May Own Certificates.......................117
         SECTION 8.05     Trustee's Fees and Expenses........................117
         SECTION 8.06     Eligibility Requirements for the Trustee...........118
         SECTION 8.07     Resignation and Removal of the Trustee.............118
         SECTION 8.08     Successor Trustee..................................119
         SECTION 8.09     Merger or Consolidation of the Trustee.............119
         SECTION 8.10     Appointment of Co-Trustee or Separate Trustee
                           ..................................................120

                                       iii

<PAGE>

         SECTION 8.11     Tax Matters........................................121
         SECTION 8.12     Periodic Filings...................................123

ARTICLE IX

   TERMINATION...............................................................124
         SECTION 9.01     Termination upon Liquidation or Purchase of the
                          Mortgage Loans.....................................124
         SECTION 9.02     Final Distribution on the Certificates.............124
         SECTION 9.03     Additional Termination Requirements................125

ARTICLE X

   MISCELLANEOUS PROVISIONS..................................................127
        SECTION 10.01    Amendment...........................................127
        SECTION 10.02    Recordation of Agreement; Counterparts..............128
        SECTION 10.03    Governing Law.......................................128
        SECTION 10.04    [Reserved]..........................................129
        SECTION 10.05    Notices.............................................129
        SECTION 10.06    Severability of Provisions..........................130
        SECTION 10.07    Assignment..........................................130
        SECTION 10.08    Limitation on Rights of Certificateholders..........130
        SECTION 10.09    Certificates Nonassessable and Fully Paid...........131

EXHIBITS
EXHIBIT A.      Form of Class A Certificates.................................A-1
EXHIBIT B.      Form of Subordinate Certificate..............................B-1
EXHIBIT C.      Form of Residual Certificate.................................C-1
EXHIBIT D.      Form of Notional Amount Certificate..........................D-1
EXHIBIT E.      Form of Class P Certificate..................................E-1
EXHIBIT F.      Form of Reverse Certificates.................................F-1
EXHIBIT G.      Form of Initial Certification of Custodian...................G-1
EXHIBIT H.      Form of Final Certification of Custodian.....................H-1
EXHIBIT I.      Transfer Affidavit...........................................I-1
EXHIBIT J.      Form of Transferor Certificate...............................J-1
EXHIBIT K.      Form of Investment Letter (Non-Rule 144A)....................K-1
EXHIBIT L.      Form of Rule 144A Letter.....................................L-1
EXHIBIT M.      Request for Release..........................................M-1
EXHIBIT N.      [Reserved]...................................................N-1
EXHIBIT O-1.    Form of Collection Account Certification...................O-1-1
EXHIBIT O-2.    Form of Collection Account Letter Agreement................O-2-1
EXHIBIT P-1.    Form of Escrow Account Certification ......................P-1-1
EXHIBIT P-2.    Form of Escrow Account Letter Agreement....................P-2-1
EXHIBIT Q.      Form of Monthly Remittance Advice............................Q-1

                                       iv

<PAGE>

EXHIBIT R.      Form of Custodial Agreement..................................R-1
SCHEDULE I      Mortgage Loan Schedule.......................................I-1
SCHEDULE II     Seller's Representations and Warranties.....................II-1
SCHEDULE IIIA   Wilshire Representations and Warranties..................III-A-1
SCHEDULE IIIB   Vesta Representations and Warranties.....................III-B-1
SCHEDULE IV     Representations and Warranties for the Mortgage Loans.......IV-1
SCHEDULE V      Class A-IO Notional Amount...................................V-1

                                        v

<PAGE>

          THIS POOLING AND SERVICING AGREEMENT, dated as of August 1, 2001,
among CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP., a Delaware
corporation, as depositor (the "Depositor"), DLJ MORTGAGE CAPITAL , INC., a
Delaware corporation, as Seller (the "Seller"), WILSHIRE CREDIT CORPORATION, a
Nevada corporation, as a servicer (a "Servicer"), VESTA SERVICING, L.P., as a
servicer (a "Servicer") and THE CHASE MANHATTAN BANK, a New York banking
corporation, as trustee (the "Trustee").

                                 WITNESSETH THAT

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

                              PRELIMINARY STATEMENT

          The Depositor intends to sell pass-through certificates (collectively,
the "Certificates"), to be issued hereunder in multiple classes, which in the
aggregate will evidence the entire beneficial ownership interest in the Trust
Fund created hereunder. The Certificates will consist of eleven classes of
certificates, designated as (i) the Class A-1 Certificates, (ii) the Class A-2
Certificates, (iii) the Class A-IO Certificates, (iv) the Class M-1
Certificates, (v) the Class M-2 Certificates, (vi) the Class B-1 Certificates,
(vii) the Class B-2 Certificates, (viii) the Class P Certificates, (ix) the
Class X-1 Certificates, (x) the Class X-2 Certificates and (xi) the Class R
Certificates.

                                     REMIC 1

          As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the Loan Group 1 Mortgage Loans, the
Loan Group 2 Mortgage Loans and certain other related assets subject to this
Agreement (exclusive of the Reserve Fund) as a real estate mortgage investment
conduit (a "REMIC") for federal income tax purposes, and such segregated pool of
assets will be designated as "REMIC 1." The Class R-1 Interest will represent
the sole class of "residual interests" in REMIC 1 for purposes of the REMIC
Provisions (as defined herein) under federal income tax law. The following table
irrevocably sets forth the designation, the Uncertificated REMIC 1 Pass-Through
Rate, the initial Uncertificated Principal Balance, and solely for purposes of
satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the "latest possible
maturity date" for each of the REMIC 1 Regular Interests. None of the REMIC 1
Regular Interests will be certificated. The latest possible maturity date
(determined solely for purposes of satisfying Treasury regulation Section
1.860G-1(a)(4)(iii)) of each of the REMIC 1 Regular Interests will be the Latest
Possible Maturity Date as defined herein.

Designation Pass-Through Rate Balance
Uncertificated REMIC 1 Initial Uncertificated

                          Uncertificated REMIC 1       Initial Uncertificated
    Designation              Pass-Through Rate                 Balance
   -------------         -------------------------    -------------------------
       LT-1                     Variable(1)                $218,375,932.00

<PAGE>

       LT-2                     Variable(1)                $  3,639,172.17
       LT-3                     Variable(1)                $  3,991,767.59
       LT-4                     Variable(1)                $  4,324,077.66
       LT-5                     Variable(1)                $  4,632,693.02
       LT-6                     Variable(1)                $  4,914,330.32
       LT-7                     Variable(1)                $  5,165,885.90
       LT-8                     Variable(1)                $  5,316,940.88
       LT-9                     Variable(1)                $  5,366,305.92
       LT-10                    Variable(1)                $  5,097,481.27
       LT-11                    Variable(1)                $  4,808,919.16
       LT-12                    Variable(1)                $  4,536,667.55
       LT-13                    Variable(1)                $  4,279,805.64
       LT-14                    Variable(1)                $  4,037,464.62
       LT-15                    Variable(1)                $  3,808,824.58
       LT-16                    Variable(1)                $  3,593,111.94
       LT-17                    Variable(1)                $  3,389,596.72
       LT-18                    Variable(1)                $  3,197,590.11
       LT-19                    Variable(1)                $  3,016,442.17
       LT-20                    Variable(1)                $  2,845,539.62
       LT-21                    Variable(1)                $  2,684,303.77
       LT-22                    Variable(1)                $  2,532,188.61
       LT-23                    Variable(1)                $  2,388,678.90
       LT-24                    Variable(1)                $  2,253,288.49
       LT-25                    Variable(1)                $  2,125,558.67
       LT-26                    Variable(1)                $  2,005,056.60
       LT-27                    Variable(1)                $  1,891,373.88
       LT-28                    Variable(1)                $  1,784,125.16
--------------------------------------------------------------------------------

                                    2

<PAGE>

       LT-29                    Variable(1)                $  1,682,946.82
       LT-30                    Variable(1)                $  1,587,495.81
       LT-31                    Variable(1)                $  1,497,448.39
       LT-32                    Variable(1)                $  1,412,499.12
       LT-33                    Variable(1)                $  1,332,359.81
       LT-34                    Variable(1)                $  1,256,758.54
       LT-35                    Variable(1)                $  1,185,438.73
       LT-36                    Variable(1)                $  1,118,158.29
       LT-37                    Variable(1)                $  18,531,958.37
       LT-P                     Variable(1)                $         100.00
       LT-R                     Variable(1)                $         100.00
        R-1                         N/A                    $           0.00
-------------------
(1)  Calculated as provided in the definition of Uncertificated Pass-Through
Rate.

                                     REMIC 2

          As provided herein, an election will be made to treat the segregated
pool of assets consisting of the Uncertificated REMIC 1 Regular Interests
(exclusive of the Reserve Fund) as a REMIC for federal income tax purposes, and
such segregated pool of assets will be designated as REMIC 2. The Class R-2
Interest will represent the sole class of "residual interests" in REMIC 2 for
purposes of the REMIC Provisions under federal income tax law. The following
table irrevocably sets forth the designation, REMIC 2 Pass-Through Rate and
initial Principal Balance for each of the "regular interests" in REMIC 2 (the
"REMIC 2 Regular Interests"). None of the REMIC 2 Regular Interests will be
certificated. The latest possible maturity date (determined solely for purposes
of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii)) of each of the
REMIC 2 Regular Interests will be the Latest Possible Maturity Date as defined
herein.

                         Uncertificated REMIC           Initial Uncertificated
   Designation           2 Pass-Through Rate              Principal Balance
  -------------         ----------------------         ------------------------
       MT-1                  Variable(1)                   $338,696,023.36
       MT-2                  Variable(1)                   $  1,280,292.74
       MT-3                  Variable(1)                   $  1,208,085.64
       MT-4                  Variable(1)                   $    328,327.96

                                    3

<PAGE>

       MT-5                  Variable(1)                   $    293,767.12
       MT-6                  Variable(1)                   $    207,365.03
       MT-7                  Variable(1)                   $    138,243.35
       MT-8                  Variable(1)                   $  3,456,081.90
       MT-P                  Variable(1)                   $        100.00
       MT-R                  Variable(1)                   $        100.00
       R-II                      N/A                       $          -
       MT-IO                    7.00%                      $          0.00(2)
-------------------
(1)  Calculated as provided in the definition of Uncertificated Pass-Through
     Rate.

(2)  Will not have an Uncertificated Principal Balance but will accrue interest
     on an "Uncertificated Notional Amount" as defined herein.

                                        4

<PAGE>

<TABLE>
<CAPTION>
============================================================================================
                                                                        Integral Multiples
               Class Certificate      Pass-Through          Minimum        in Excess of
                    Balance               Rate           Denomination        Minimum
--------------------------------------------------------------------------------------------
<S>            <C>                    <C>                  <C>               <C>
Class A-1      $128,029,274.00        Adjustable(1)        $ 25,000            $1
Class A-2      $120,808,564.00        Adjustable(1)        $ 25,000            $1
Class A-IO        (2)                    7.00%(3)          $100,000            $1
Class P        $        100.00        Variable(4)          $    100            N/A
Class R        $        100.00        Variable(4)          $    100            N/A
Class M-1      $ 32,832,796.00        Adjustable(1)        $ 25,000            $1
Class M-2      $ 29,376,712.00        Adjustable(1)        $ 25,000            $1
Class B-1      $ 20,736,503.00        Adjustable(1)        $ 25,000            $1
Class B-2      $ 13,824,335.49           12.00%            $ 25,000            $1
Class X-1      $          2.61(5)     Variable(6)          $ 25,000            $1
Class X-2      $          0               0.00%               N/A              N/A
============================================================================================
</TABLE>
--------------
(1)  The Class A-1, Class A-2, Class M-1, Class M-2 and Class B-1 Certificates
     are adjustable rate and will receive interest pursuant to formulas based on
     LIBOR, subject to a cap and a floor.

(2)  These Certificates are interest only certificates, will have no principal
     balance and will accrue interest on their related notional amount for the
     first 36 Distribution Dates. For any Distribution Date, the notional amount
     of the Class A-IO Certificates will be equal to the lesser of (i) the
     Notional Amount for such Distribution Date and (ii) the Aggregate Loan
     Balance immediately prior to such Distribution Date. The initial notional
     amount of the Class A-IO Certificates is $127,232,254.

(3)  The Pass-Through Rate on the Class A-IO Certificates for the first 36
     Distribution Dates will be equal to the lesser of (a) 7.00% per annum and
     (b) the Net Rate Cap; thereafter, the Pass-Through Rate on the Class A-IO
     Certificates will be equal to 0.00% per annum.

(4)  The initial pass-through rates on the Class P and Class R Certificates will
     be approximately 11.81% per annum and will vary after the first
     Distribution Date.

(5)  The Class X-1 Certificates will have an initial principal balance of $2.61
     and will accrue interest on its notional amount. For any Distribution Date,
     the notional amount of the Class X-1 Certificates will be equal to the
     Aggregate Loan Balance immediately prior to such Distribution Date. The
     initial notional amount of the Class X-1 Certificates is $345,608,387.10.

(6)  The Class X-1 Certificates are adjustable rate and will accrue interest on
     a notional amount.

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

                                        5

<PAGE>

Book-Entry Certificates..........  All Classes of Certificates other than the
                                   Physical Certificates.

ERISA-Restricted Certificates....  Class R, Class P, Class B-2 and Class X
                                   Certificates.

LIBOR Certificates...............  Class A-1, Class A-2, Class M-1, Class M-2
                                   and Class B-1 Certificates.

Notional Amount Certificates.....  Class A-IO and Class X-1 Certificates.

Class A Certificates.............  Class A-1, Class A-2 and Class A-IO
                                   Certificates.

Class B Certificates.............  Class B-1 and Class B-2 Certificates.

Class M Certificates.............  Class M-1 and Class M-2 Certificates.

Offered Certificates.............  All Classes of Certificates (other than the
                                   Class P, Class B-2 and Class X Certificates).

Physical Certificates............  Class R, Class P, Class B-2 and Class X
                                   Certificates.

Private Certificates.............  Class P, Class B-2 and Class X Certificates.

Rating Agencies..................  S&P and Moody's.

Regular Certificates.............  All Classes of Certificates other than the
                                   Class R Certificates.

Residual Certificates............  Class R Certificates.

Senior Certificates..............  Class A-1, Class A-2, Class A-IO, Class P
                                   and Class R Certificates.

Subordinate Certificates.........  Class M-1, Class M-2, Class B-1, Class B-2
                                   and Class X-1 Certificates.

Minimum Denominations............  Class A-1, Class A-2, Class M-1, Class M-2,
                                   Class B-1 and Class B-2 Certificates: $25,000
                                   and multiples of $1 in excess thereof. Class
                                   A-IO Certificates: $100,000 and multiples of
                                   $1 in excess thereof. Class R and Class P
                                   Certificates: $100. The Class X-1
                                   Certificates will be issued as a single
                                   Certificate with a Certificate Principal
                                   Balance of $2.61. The Class X-2 Certificates
                                   will not have a principal balance.

                                        6

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

          SECTION 1.01 Whenever used in this Agreement, the following words and
                       phrases, unless the context otherwise requires, shall
                       have the following meanings:

          Accepted Servicing Practices: With respect to any Mortgage Loan, those
mortgage servicing practices of prudent mortgage lending institutions which
service mortgage loans of the same type as such Mortgage Loan in the
jurisdiction where the related Mortgaged Property is located.

          Adjusted Net WAC Rate: For the September 2001 Distribution Date
through the August 2004 Distribution Date, a per annum rate equal to (1) the
weighted average of the Net Mortgage Rates of the Mortgage Loans as of the first
day of the month preceding the month in which such Distribution Date occurs
minus (2) the Pass-Through Rate for the Class A-IO Certificates for such
Distribution Date multiplied by a fraction, the numerator of which is (x) the
Notional Amount of the Class A-IO Certificates immediately prior to such
Distribution Date, and the denominator of which is (y) the aggregate Stated
Principal Balance of the Mortgage Loans as of the first day of the month
preceding the month in which such Distribution Date occurs. For any subsequent
Distribution Date, the weighted average of the Net Mortgage Rates of the
Mortgage Loans. For federal income tax purposes, however, the equivalent of the
foregoing, expressed as a per annum rate (but not less than zero) equal to the
weighted average of (x) the Uncertificated REMIC 1 Pass-Through Rate with
respect to REMIC 1 Regular Interest LT-1 for such Distribution Date and(y) the
excess, if any, of (1) the Uncertificated REMIC I Pass-Through Rate with respect
to REMIC I Regular Interest LT-37 for such Distribution Date over (2) (A) in the
case of the Distribution Date in September 2001 through the Distribution Date in
August 2004, 7.00% per annum and (B) in the case of any Distribution Date
thereafter, 0.00% per annum; weighted, (i) for the Distribution Date in
September 2001, in the case of clause (x), on the basis of the Uncertificated
Principal Balance of REMIC I Regular Interest LT-1, and in the case of clause
(y), on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT-2 through LT-37, (ii) for the Distribution Date in October
2001, in the case of clause (x), on the basis of the aggregate Uncertificated
Principal Balances of REMIC I Regular Interests LT-1 and LT-2, and in the case
of clause (y), on the basis of the aggregate Uncertificated Principal Balance of
REMIC I Regular Interests LT-3 through LT-37, (iii) for the Distribution Date in
November 2001, in the case of clause (x), on the basis of the aggregate
Uncertificated Principal Balances of REMIC I Regular Interests LT-1 through
LT-3, and in the case of clause (y), on the basis of the aggregate
Uncertificated Principal Balance of REMIC I Regular Interests LT-4 through
LT-37, (iv) for the Distribution Date in December 2001, in the case of clause
(x), on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT-1 through LT-4, and in the case of clause (y), on the basis
of the aggregate Uncertificated Principal Balance of REMIC I Regular Interests
LT-5 through LT-37, (v) for the Distribution Date in January 2002, in the case
of clause (x), on the basis of the aggregate Uncertificated Principal Balances
of REMIC I Regular Interests LT-1 through LT-5, and in the case of clause (y),
on the basis of the aggregate Uncertificated Principal Balance of REMIC I
Regular Interests LT-6 through LT-37, (vi) for the Distribution Date in February
2002, in the case of clause

                                        7

<PAGE>

(x), on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT- 1 through LT-6, and in the case of clause (y), on the
basis of the aggregate Uncertificated Principal Balance of REMIC I Regular
Interests LT-7 through LT-37, (vii) for the Distribution Date in March 2002, in
the case of clause (x), on the basis of the aggregate Uncertificated Principal
Balances of REMIC I Regular Interests LT-1 through LT-7, and in the case of
clause (y), on the basis of the aggregate Uncertificated Principal Balance of
REMIC I Regular Interests LT-8 through LT-37, (viii) for the Distribution Date
in April 2002, in the case of clause (x), on the basis of the aggregate
Uncertificated Principal Balances of REMIC I Regular Interests LT-1 through
LT-8, and in the case of clause (y), on the basis of the aggregate
Uncertificated Principal Balance of REMIC I Regular Interests LT-9 through
LT-37, (ix) for the Distribution Date in May 2002, in the case of clause (x), on
the basis of the aggregate Uncertificated Principal Balances of REMIC I Regular
Interests LT-1 through LT-9, and in the case of clause (y), on the basis of the
aggregate Uncertificated Principal Balance of REMIC I Regular Interests LT-10
through LT-37, (x) for the Distribution Date in June 2002, in the case of clause
(x), on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT-1 through LT-10, and in the case of clause (y), on the
basis of the aggregate Uncertificated Principal Balance of REMIC I Regular
Interests LT-11 through LT-37, (xi) for the Distribution Date in July 2002, in
the case of clause (x), on the basis of the aggregate Uncertificated Principal
Balances of REMIC I Regular Interests LT-1 through LT-11, and in the case of
clause (y), on the basis of the aggregate Uncertificated Principal Balance of
REMIC I Regular Interests LT-12 through LT-37, (xii) for the Distribution Date
in August 2002, in the case of clause (x), on the basis of the aggregate
Uncertificated Principal Balances of REMIC I Regular Interests LT-1 through
LT-12, and in the case of clause (y), on the basis of the aggregate
Uncertificated Principal Balance of REMIC I Regular Interests LT-13 through
LT-37, (xiii) for the Distribution Date in September 2002, in the case of clause
(x), on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT-1 through LT-13, and in the case of clause (y), on the
basis of the aggregate Uncertificated Principal Balance of REMIC I Regular
Interests LT-14 through LT-37, (xiv) for the Distribution Date in October 2002,
in the case of clause (x), on the basis of the aggregate Uncertificated
Principal Balances of REMIC I Regular Interests LT-1 through LT- 14, and in the
case of clause (y), on the basis of the aggregate Uncertificated Principal
Balance of REMIC I Regular Interests LT-15 through LT-37, (xv) for the
Distribution Date in November 2002, in the case of clause (x), on the basis of
the aggregate Uncertificated Principal Balances of REMIC I Regular Interests
LT-1 through LT-15, and in the case of clause (y), on the basis of the aggregate
Uncertificated Principal Balance of REMIC I Regular Interests LT-16 through
LT-37, (xvi) for the Distribution Date in December 2002, in the case of clause
(x), on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT-1 through LT-16, and in the case of clause (y), on the
basis of the aggregate Uncertificated Principal Balance of REMIC I Regular
Interests LT-17 through LT-37, (xvii) for the Distribution Date in January 2003,
in the case of clause (x), on the basis of the aggregate Uncertificated
Principal Balances of REMIC I Regular Interests LT-1 through LT-17, and in the
case of clause (y), on the basis of the aggregate Uncertificated Principal
Balance of REMIC I Regular Interests LT-18 through LT-37, (xviii) for the
Distribution Date in February 2003, in the case of clause (x), on the basis of
the aggregate Uncertificated Principal Balances of REMIC I Regular Interests
LT-1 through LT-18, and in the case of clause (y), on the basis of the aggregate
Uncertificated Principal Balance of REMIC I Regular Interests LT-19 through
LT-37, (xix) for the Distribution Date in March 2003, in the case of clause (x),
on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT-1 through LT- 19, and in the case of clause (y), on the
basis of the aggregate Uncertificated Principal Balance of

                                        8

<PAGE>

REMIC I Regular Interests LT-20 through LT-37, (xx) for the Distribution Date in
April 2003, in the case of clause (x), on the basis of the aggregate
Uncertificated Principal Balances of REMIC I Regular Interests LT-1 through
LT-20, and in the case of clause (y), on the basis of the aggregate
Uncertificated Principal Balance of REMIC I Regular Interests LT-21 through
LT-37, (xxi) for the Distribution Date in May 2003, in the case of clause (x),
on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT-1 through LT-21, and in the case of clause (y), on the
basis of the aggregate Uncertificated Principal Balance of REMIC I Regular
Interests LT-22 through LT-37, (xxii) for the Distribution Date in June 2003, in
the case of clause (x), on the basis of the aggregate Uncertificated Principal
Balances of REMIC I Regular Interests LT-1 through LT- 22, and in the case of
clause (y), on the basis of the aggregate Uncertificated Principal Balance of
REMIC I Regular Interests LT-23 through LT-37, (xxiii) for the Distribution Date
in July 2003, in the case of clause (x), on the basis of the aggregate
Uncertificated Principal Balances of REMIC I Regular Interests LT-1 through
LT-23, and in the case of clause (y), on the basis of the aggregate
Uncertificated Principal Balance of REMIC I Regular Interests LT-24 through
LT-37, (xxiv) for the Distribution Date in August 2003, in the case of clause
(x), on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT-1 through LT-24, and in the case of clause (y), on the
basis of the aggregate Uncertificated Principal Balance of REMIC I Regular
Interests LT-25 through LT-37, (xxv) for the Distribution Date in September
2003, in the case of clause (x), on the basis of the aggregate Uncertificated
Principal Balances of REMIC I Regular Interests LT-1 through LT-25, and in the
case of clause (y), on the basis of the aggregate Uncertificated Principal
Balance of REMIC I Regular Interests LT-26 through LT-37, (xxvi) for the
Distribution Date in October 2003, in the case of clause (x), on the basis of
the aggregate Uncertificated Principal Balances of REMIC I Regular Interests
LT-1 through LT-26, and in the case of clause (y), on the basis of the aggregate
Uncertificated Principal Balance of REMIC I Regular Interests LT-27 through
LT-37, (xxvii) for the Distribution Date in November 2003, in the case of clause
(x), on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT-1 through LT-27, and in the case of clause (y), on the
basis of the aggregate Uncertificated Principal Balance of REMIC I Regular
Interests LT-28 through LT-37, (xxviii) for the Distribution Date in December
2003, in the case of clause (x), on the basis of the aggregate Uncertificated
Principal Balances of REMIC I Regular Interests LT-1 through LT-28, and in the
case of clause (y), on the basis of the aggregate Uncertificated Principal
Balance of REMIC I Regular Interests LT-29 through LT-37, (xxix) for the
Distribution Date in January 2004, in the case of clause (x), on the basis of
the aggregate Uncertificated Principal Balances of REMIC I Regular Interests
LT-1 through LT-29, and in the case of clause (y), on the basis of the aggregate
Uncertificated Principal Balance of REMIC I Regular Interests LT-30 through
LT-37, (xxx) for the Distribution Date in February 2004, in the case of clause
(x), on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT-1 through LT-30, and in the case of clause (y), on the
basis of the aggregate Uncertificated Principal Balance of REMIC I Regular
Interests LT-31 through-37, (xxxi) for the Distribution Date in March 2004, in
the case of clause (x), on the basis of the aggregate Uncertificated Principal
Balances of REMIC I Regular Interests LT-1 through LT- 31, and in the case of
clause (y), on the basis of the aggregate Uncertificated Principal Balance of
REMIC I Regular Interests LT-32 through LT-37, (xxxii) for the Distribution Date
in April 2004, in the case of clause (x), on the basis of the aggregate
Uncertificated Principal Balances of REMIC I Regular Interests LT-1 through
LT-32, and in the case of clause (y), on the basis of the aggregate
Uncertificated Principal Balance of REMIC I Regular Interests LT-33 through
LT-37, (xxxiii) for the Distribution Date in May 2004, in the case of clause
(x), on the basis of the aggregate

                                        9

<PAGE>

Uncertificated Principal Balances of REMIC I Regular Interests LT-1 through
LT-33, and in the case of clause (y), on the basis of the aggregate
Uncertificated Principal Balance of REMIC I Regular Interests LT-34 through
LT-37, (xxxiv) for the Distribution Date in June 2004, in the case of clause
(x), on the basis of the aggregate Uncertificated Principal Balances of REMIC I
Regular Interests LT-1 through LT-34, and in the case of clause (y), on the
basis of the aggregate Uncertificated Principal Balance of REMIC I Regular
Interests LT-35 through LT-37, (xxxv) for the Distribution Date in July 2004, in
the case of clause (x), on the basis of the aggregate Uncertificated Principal
Balances of REMIC I Regular Interests LT-1 through LT-35, and in the case of
clause (y), on the basis of the aggregate Uncertificated Principal Balance of
REMIC I Regular Interests LT-36 and LT-37, (xxxvi) for the Distribution Date in
August 2004, in the case of clause (x), on the basis of the aggregate
Uncertificated Principal Balances of REMIC I Regular Interests LT-1 through
LT-36, and in the case of clause (y), on the basis of the Uncertificated
Principal Balance of REMIC I Regular Interest LT-37, respectively.

          Advance: The payment required to be made by a Servicer with respect to
any Distribution Date pursuant to Section 4.01.

          Aggregate Loan Balance: As of any date of determination will be equal
to the aggregate of the Stated Principal Balances of the Mortgage Loans
determined as of such date.

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

          Ancillary Income: All income derived from the Mortgage Loans, other
than Servicing Fees and Prepayment Penalties, including but not limited to, late
charges, fees received with respect to checks or bank drafts returned by the
related bank for non-sufficient funds, assumption fees, optional insurance
administrative fees and all other incidental fees and charges.

          Applied Loss Amount: As to any Distribution Date, an amount equal to
the excess, if any of (i) the aggregate Class Principal Balance of the
Certificates, other than the Class A-IO Certificates, after giving effect to all
Realized Losses incurred with respect to the Mortgage Loans during the Due
Period for such Distribution Date and payments of principal on such Distribution
Date over (ii) the Aggregate Loan Balance for such Distribution Date.

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

          Assignment Agreement: An assignment agreement between DLJ Mortgage
Capital, Inc. as Seller and the Depositor, whereby the Mortgage Loans are
transferred and the representations and warranties on the related Mortgage Loans
are made.

          Assignment of Mortgage: An assignment of the Mortgage, notice of
transfer or equivalent instrument in recordable form, sufficient under the laws
of the jurisdiction wherein the related Mortgaged Property is located to reflect
the transfer of the Mortgage to the Trustee for the benefit of the
Certificateholders.

                                       10

<PAGE>

          Available Funds: With respect to any Distribution Date the sum of (i)
all related Scheduled Payments (net of the related Expense Fees) due on the Due
Date in the month in which such Distribution Date occurs and received prior to
the related Determination Date, together with any Advances in respect thereof;
(ii) all related Insurance Proceeds and Liquidation Proceeds received during the
month preceding the month of such Distribution Date; (iii) all Curtailments and
Payoffs received during the Prepayment Period applicable to such Distribution
Date (excluding Prepayment Penalties); (iv) related amounts received with
respect to such Distribution Date as the Substitution Adjustment Amount or
Repurchase Price; and (v) related Compensating Interest Payments for such
Distribution Date; as to clauses (i) through (iv) above, reduced by amounts in
reimbursement for Advances previously made and other amounts as to which the
Servicers are entitled to be reimbursed pursuant to Section 3.08.

          Bankruptcy Code: The United States Bankruptcy Reform Act of 1978, as
amended.

          Basis Risk Shortfall: For any Class of LIBOR Certificates and any
Distribution Date, the sum of: (i) the excess, if any, of the related Current
Interest calculated on the basis of the lesser of (x) LIBOR plus the applicable
Certificate Margin and (y) the Maximum Interest Rate over the related Current
Interest for the applicable Distribution Date; (ii) any Basis Risk Shortfall
remaining unpaid from prior Distribution Dates; and (iii) 30 days interest on
the amount in clause (ii) calculated at a per annum rate equal to the lesser of
(x) the LIBOR plus the applicable Certificate Margin and (y) Maximum Interest
Rate.

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

          Business Day: Any day other than (i) a Saturday or a Sunday, or (ii) a
day on which banking institutions in the City of New York, New York, or the city
in which the Corporate Trust Office of the Trustee, or savings and loan
institutions in the States of Illinois, California or Texas, is located are
authorized or obligated by law or executive order to be closed.

          Carryforward Interest: For any Class of Certificates and any
Distribution Date, the sum of (1) the amount, if any, by which (x) the sum of
(A) Current Interest for such Class for the immediately preceding Distribution
Date and (B) any unpaid Carryforward Interest from previous Distribution Dates
exceeds (y) the amount paid in respect of interest on such Class on such
immediately preceding Distribution Date, and (2) interest on such amount for the
related Interest Accrual Period at the applicable Pass-Through Rate.

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

          Certificates: As specified in the Preliminary Statement.

          Certificate Account: The separate Eligible Account created and
maintained with the Trustee, or any other bank or trust company acceptable to
the Rating Agencies which is incorporated under the laws of the United States or
any state thereof pursuant to Section 3.05, which account shall bear a
designation clearly indicating that the funds deposited therein are held in
trust for the benefit of the Trustee on behalf of the Certificateholders or any
other account serving a similar function

                                       11

<PAGE>

acceptable to the Rating Agencies. Funds in the Certificate Account may (i) be
held uninvested without liability for interest or compensation thereon or (ii)
be invested at the direction of the Trustee in Eligible Investments and
reinvestment earnings thereon (net of investment losses) shall be paid to the
Trustee. Funds deposited in the Certificate Account (exclusive of the Trustee
Fees and other amounts permitted to be withdrawn pursuant to Section 3.08) shall
be held in trust for the Certificateholders.

          Certificate Balance: With respect to any Certificate at any date, the
maximum dollar amount of principal to which the Holder thereof is then entitled
hereunder, such amount being equal to the Denomination thereof minus the sum of
(i) all distributions of principal previously made with respect thereto and (ii)
all Realized Losses allocated thereto and, in the case of any Subordinate
Certificates, all other reductions in Certificate Balance previously allocated
thereto pursuant to Section 4.05.

          Certificate Margin: As to each Class of LIBOR Certificates, the
applicable amount set forth below:

            CLASS                     CERTIFICATE MARGIN
         -------------           -------------------------------
                                     (1)               (2)
             A-1                    0.30%             0.60%
             A-2                    0.35%             0.70%
             M-1                    1.00%             1.50%
             M-2                    1.45%             1.95%
             B-1                    2.85%             3.35%
-----------------
(1)   On or prior to the Optional Termination Date.

(2)   After the Optional Termination Date.

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

          Certificate Register: The register maintained pursuant to Section
5.02.

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

                                       12

<PAGE>

affiliate of the Depositor in determining which Certificates are registered in
the name of an affiliate of the Depositor.

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

          Class A-1 Pass-Through Rate: With respect to the initial Interest
Accrual Period is approximately 3.88% per annum, and as to any Interest Accrual
Period thereafter, will be a per annum rate equal to the lesser of (i) the sum
of LIBOR plus the related Certificate Margin and (ii) the Net Funds Cap.

          Class A-2 Pass-Through Rate: With respect to the initial Interest
Accrual Period is approximately 3.93% per annum, and as to any Interest Accrual
Period thereafter, will be a per annum rate equal to the lesser of (i) the sum
of LIBOR plus the related Certificate Margin and (ii) the Net Funds Cap.

          Class A-IO Notional Amount: With respect to any Distribution Date will
equal the lesser of (i) the amount set forth on Schedule VI attached hereto for
such Distribution Date and (ii) the Aggregate Loan Balance. For federal income
tax purposes, however, the Class A-IO Certificate will not have a notional
amount but instead will be entitled to 100% of the interest payable on REMIC 2
Regular Interest MT-IO.

          Class B-1 Pass-Through Rate: With respect to the initial Interest
Accrual Period is approximately 6.43% per annum, and as to any Interest Accrual
Period thereafter, will be a per annum rate equal to the lesser of (i) the sum
of LIBOR plus the related Certificate Margin and (ii) the Net Funds Cap.

          Class B-2 Capped Pass-Through Rate: With respect to any Interest
Accrual Period, a per annum rate equal to the lesser of the Class B-2
Pass-Through Rate for such Interest Accrual Period and the Adjusted Net WAC Rate
for such Interest Accrual Period. For federal income tax purposes, however, the
equivalent of the foregoing, expressed as a per annum rate equal to the lesser
of the Class B-2 Pass-Through Rate for such Interest Accrual Period and the
REMIC 2 Net Wac Rate for such Interest Accrual Period.

          Class B-2 Pass-Through Rate: On or prior to the Optional Termination
Date, 12.00% per annum. After the Optional Termination Date, 12.50% per annum.

          Class B-1 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balances of the Class A-1, Class A-2,
Class P, Class R, Class M-1 and Class M-2 Certificates, in each case, after
giving effect to payments on such Distribution Date and (ii) the Class Principal
Balance of the Class B-1 Certificates immediately prior to such Distribution
Date exceeds (y) the lesser of (A) the product of (i) 86.50% and (ii) the
Aggregate Loan Balance for such Distribution Date and (B) the amount, if any, by
which (i) the Aggregate Loan Balance for such Distribution Date exceeds (ii)
0.50% of the Aggregate Loan Balance as of the Cut-off Date.

                                       13

<PAGE>

          Class B-2 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balances of the Class A-1, Class A-2,
Class P, Class R, Class M-1, Class M-2 and Class B-1 Certificates, in each case,
after giving effect to payments on such Distribution Date and (ii) the Class
Principal Balance of the Class B-2 Certificates immediately prior to such
Distribution Date exceeds (y) the lesser of (A) the product of (i) 94.50% and
(ii) the Aggregate Loan Balance for such Distribution Date and (B) the amount,
if any, by which (i) the Aggregate Loan Balance for such Distribution Date
exceeds (ii) 0.50% of the Aggregate Loan Balance as of the Cut-off Date.

          Class M-1 Pass-Through Rate: With respect to the initial Interest
Accrual Period is 4.58% per annum, and as to any Interest Accrual Period
thereafter, will be a per annum rate equal to the lesser of (i) the sum of LIBOR
plus the related Certificate Margin and (ii) the Net Funds Cap.

          Class M-1 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event is not in effect with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balances of the Class A-1, Class A-2,
Class P and Class R Certificates after giving effect to payments on such
Distribution Date and (ii) the Class Principal Balance of the Class M-1
Certificates immediately prior to such Distribution Date exceeds (y) the lesser
of (A) the product of (i) 57.50% and (ii) the Aggregate Loan Balance for such
Distribution Date and (B) the amount, if any, by which (i) the Aggregate Loan
Balance for such Distribution Date exceeds (ii) 0.50% of the Aggregate Loan
Balance as of the Cut-off Date.

          Class M-2 Pass-Through Rate: With respect to the initial Interest
Accrual Period is 5.03% per annum, and as to any Interest Accrual Period
thereafter, will be a per annum rate equal to the lesser of (i) the sum of LIBOR
plus the related Certificate Margin and (ii) the Net Funds Cap.

          Class M-2 Principal Payment Amount: For any Distribution Date on or
after the Stepdown Date and as long as a Trigger Event has not occurred with
respect to such Distribution Date, will be the amount, if any, by which (x) the
sum of (i) the aggregate Class Principal Balances of the Class A-1, Class A-2,
Class P, Class R and Class M-1 Certificates, in each case, after giving effect
to payments on such Distribution Date and (ii) the Class Principal Balance of
the Class M-2 Certificates immediately prior to such Distribution Date exceeds
(y) the lesser of (A) the product of (i) 74.50% and (ii) the Aggregate Loan
Balance for such Distribution Date and (B) the amount, if any, by which (i) the
Aggregate Loan Balance for such Distribution Date exceeds (ii) 0.50% of the
Aggregate Loan Balance as of the Cut-off Date.

          Class X-1 Distributable Amount: With respect to any Distribution Date,
the amount of interest accrued during the related Interest Accrual Period at the
related Pass-Through Rate on the Class X-1 Notional Amount for such Distribution
Date.

          Class X-1 Notional Amount: Immediately prior to any Distribution Date,
with respect to the Class X-1 Certificates, an amount equal to the aggregate of
the Uncertificated Principal Balances of the REMIC 2 Regular Interests (other
than REMIC 2 Regular Interests MT-P, MT-R and MT-IO).

                                       14

<PAGE>

          Class P Pass-Through Rate: With respect to any Distribution Date and
the Class P Certificates, a per annum rate equal to the weighted average of the
Net Mortgage Rates for the Mortgage Loans. For federal income tax purposes,
however, with respect to any Distribution Date and the Class P Certificates, the
equivalent of the foregoing, expressed as a per annum rate equal to the weighted
average of the Uncertificated Pass-Through Rate for REMIC 2 Regular Interest
MT-P.

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

          Class R Pass-Through Rate: With respect to any Distribution Date, a
per annum rate equal to the weighted average of the Net Mortgage Rates for the
Mortgage Loans. For federal income tax purposes, however, with respect to any
Distribution Date, a per annum rate equal to the weighted average of the
Uncertificated Pass-Through-Rate for REMIC 2 Regular Interest MT-R.

          Closing Date: August 29, 2001.

          Code: The Internal Revenue Code of 1986, as the same may be amended
from time to time (or any successor statute thereto).

          Collection Accounts: The accounts established and maintained by a
Servicer in accordance with Section 3.05.

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

          Compensating Interest Payment: For any Distribution Date, an amount to
be paid by the applicable Servicer for such Distribution Date, equal to the
lesser of (i) an amount equal to one half of the monthly Servicing Fee Rate on
the Mortgage Loans being serviced by the related Servicer otherwise payable to
the related Servicer on such Distribution Date (prior to giving effect to any
Scheduled Payments due on such Mortgage Loans on such Due Date) and (ii) the
aggregate Prepayment Interest Shortfall for the Mortgage Loans being serviced by
the related Servicer for the related Prepayment Period.

          Corporate Trust Office: The designated office of the Trustee in the
State of New York at which at any particular time its corporate trust business
with respect to this Agreement shall be administered, which office at the date
of the execution of this Agreement is located at 450 West 33 Street, rd 14th
Floor, New York, New York 10001, Attention: ITS: CSFB-2001-S18.

          Corresponding Certificate: With respect to (i) REMIC 2 Regular
Interest MT-P, (ii) REMIC 2 Regular Interest MT-R, (iii) REMIC 2 Regular
Interest MT-2, (iv) REMIC 2 Regular Interest MT-3, (v) REMIC 2 Regular Interest
MT-4, (vi) REMIC 2 Regular Interest MT-5, (vii) REMIC 2 Regular Interest MT-6,
and (viii) REMIC 2 Regular Interest MT-7, the (i) Class P

                                       15

<PAGE>

Certificates, (ii) Class R Certificates, (iii) Class A-1 Certificates, (iv)
Class A-2 Certificates, (v) Class M-1 Certificates, (vi) Class M-2 Certificates,
(vii) Class B-1 Certificates and (viii) Class B-2 Certificates, respectively.

          Corresponding Uncertificated Interest: With respect to (i) REMIC 1
Regular Interest LT-P and (ii) REMIC 1 Regular Interest LT-R, (i) REMIC 2
Regular Interest MT-P; and (ii) REMIC 2 Regular Interest MT-R, respectively.

          CSFB: Credit Suisse First Boston Corporation, a Delaware corporation,
and its successors and assigns.

          Cumulative Loss Event: For any Distribution Date, a Cumulative Loss
Event is occurring if cumulative Realized Losses on the Mortgage Loans equal or
exceed the percentage of the Aggregate Loan Balance as of the Cut-off Date for
that Distribution Date as specified below:

                                                PERCENTAGE OF AGGREGATE
                 DISTRIBUTION DATE                    LOAN BALANCE
     -----------------------------------------  -----------------------
     September 2001 - August 2004..............          N.A.
     September 2004 - August 2005..............          4.75%
     September 2005 - August 2006..............          5.75%
     September 2006 - August 2007..............          6.50%
     September 2007 - August 2008..............          6.75%
     September 2008 and thereafter.............          7.50%

          Cumulative Net Losses: As to any date of determination and with
respect to each Mortgage Loan deemed to be a Liquidated Mortgage Loan on or
prior to the last day of the preceding Due Period, the amount by which the
aggregate principal balance of, and accrued interest on, such Liquidated
Mortgage Loan exceeds the Net Liquidation Proceeds for such Mortgage Loan
allocated to principal and accrued interest.

          Current Interest: For any Class of Certificates and Distribution Date,
the amount of interest accruing at the applicable Pass-Through Rate on the
related Class Principal Balance, or Notional Amount, as applicable, of such
Class during the related Interest Accrual Period; provided, that if and to the
extent that on any Distribution Date the Interest Remittance Amount is less than
the aggregate distributions required pursuant to Section 4.02(b)(i)A-F without
regard to this proviso, then the Current Interest on each such Class will be
reduced, on a pro rata basis in proportion to the amount of Current Interest for
each Class without regard to this proviso, by the lesser of (i) the amount of
the deficiency described above in this proviso and (ii) the related Interest
Shortfall for such Distribution Date.

          Curtailment: Any payment of principal on a Mortgage Loan, made by or
on behalf of the related Mortgagor, other than a Scheduled Payment, a prepaid
Scheduled Payment or a Payoff, which is applied to reduce the outstanding Stated
Principal Balance of the Mortgage Loan.

                                       16

<PAGE>

          Custodial Agreement: The agreement, among the Trustee the Custodian
and the Depositor providing for the safekeeping of any documents or instruments
referred to in Section 2.01 on behalf of the Certificateholders, attached hereto
as Exhibit R.

          Custodian: Bank One Trust Company, N.A., a national banking
association or any successor custodian appointed pursuant to the terms of the
Custodial Agreement. The Custodian so appointed shall act as agent on behalf of
the Trustee, and shall be compensated by the Depositor. The Trustee shall remain
at all times responsible under the terms of this Agreement, notwithstanding the
fact that certain duties have been assigned to a Custodian.

          Cut-off Date: August 1, 2001.

          Cut-off Date Principal Balance: As to any Mortgage Loan, the Stated
Principal Balance thereof as of the close of business on the Cut-off Date.

          Defective Mortgage Loan: Any Mortgage Loan which is required to be
repurchased pursuant to Section 2.02 or 2.03.

          Deferred Amount: For any Class of Class M or Class B Certificates and
any Distribution Date, will equal the amount by which (x) the aggregate of the
Applied Loss Amounts previously applied in reduction of the Class Principal
Balance thereof exceeds (y) the aggregate of amounts previously paid in
reimbursement thereof.

          Definitive Certificates: Any Certificate issued in lieu of a
Book-Entry Certificate pursuant to Section 5.02(e).

          Deleted Mortgage Loan: As defined in Section 2.03.

          Delinquency Rate: For any month, a fraction, expressed as a
percentage, the numerator of which is the aggregate outstanding principal
balance of all Mortgage Loans 60 or more days delinquent (including all
foreclosures, bankruptcies and REO Properties) as of the close of business on
the last day of such month, and the denominator of which is the Aggregate Loan
Balance as of the close of business on the last day of such month.

          Denomination: With respect to each Certificate, the amount set forth
on the face thereof as the "Initial Certificate Balance of this Certificate" or
the "Initial Notional Amount of this Certificate" or, if neither of the
foregoing, the Percentage Interest appearing on the face thereof.

          Depositor: Credit Suisse First Boston Mortgage Securities Corp., a
Delaware corporation, or its successor in interest.

          Depository: The initial Depository shall be The Depository Trust
Company, the nominee of which is CEDE & Co., as the registered Holder of the
Book-Entry Certificates. The Depository shall at all times be a "clearing
corporation" as defined in Section 8-102(3) of the Uniform Commercial Code of
the State of New York.

                                       17

<PAGE>

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

          Determination Date: As to any Distribution Date and any Mortgage Loan,
the 15th day of each month or, if such day is not a Business Day, the first
Business Day thereafter.

          Distribution Date: The 25 day of each month or if such day is not a
Business Day, the first Business Day thereafter, commencing in September, 2001.

          DLJMC: DLJ Mortgage Capital, Inc., a Delaware corporation, and its
successors and assigns.

          Due Date: With respect to any Distribution Date, the first day of the
month in which the related Distribution Date occurs.

          Due Period: With respect to each Distribution Date, the period
commencing on the second day of the month preceding the month of the
Distribution Date and ending on the first day of the month of the Distribution
Date.

          Eligible Account: Either (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company acceptable to
the Rating Agencies or (ii) an account or accounts the deposits in which are
insured by the FDIC to the limits established by such corporation, provided that
any such deposits not so insured shall be maintained in an account at a
depository institution or trust company whose commercial paper or other short
term debt obligations (or, in the case of a depository institution or trust
company which is the principal subsidiary of a holding company, the commercial
paper or other short term debt obligations of such holding company) have been
rated by each Rating Agency in its highest short-term rating category, or (iii)
a segregated trust account or accounts (which shall be a "special deposit
account") maintained with the Trustee or any other federal or state chartered
depository institution or trust company, acting in its fiduciary capacity, in a
manner acceptable to the Trustee and the Rating Agencies. Eligible Accounts may
bear interest.

          Eligible Institution: An institution having the highest short-term
debt rating, and one of the two highest long-term debt ratings of the Rating
Agencies or the approval of the Rating Agencies.

          Eligible Investments: Any one or more of the obligations and
securities listed below which investment provides for a date of maturity not
later than the Determination Date in each month:

          (i) direct obligations of, and obligations fully guaranteed by, the
     United States of America, or any agency or instrumentality of the United
     States of America the obligations of which are backed by the full faith and
     credit of the United States of America; or obligations fully guaranteed by,
     the United States of America; the Federal Home Loan Mortgage Corporation,
     Federal National Mortgage Corporation, the Federal Home Loan

                                       18

<PAGE>

     Banks or any agency or instrumentality of the United States of America
     rated AA or higher by the Rating Agencies;

          (ii) federal funds, demand and time deposits in, certificates of
     deposits of, or bankers' acceptances issued by, any depository institution
     or trust company incorporated or organized under the laws of the United
     States of America or any state thereof and subject to supervision and
     examination by federal and/or state banking authorities, so long as at the
     time of such investment or contractual commitment providing for such
     investment the commercial paper or other short-term debt obligations of
     such depository institution or trust company (or, in the case of a
     depository institution or trust company which is the principal subsidiary
     of a holding company, the commercial paper or other short-term debt
     obligations of such holding company) are rated in one of two of the highest
     ratings by each of the Rating Agencies, and the long-term debt obligations
     of such depository institution or trust company (or, in the case of a
     depository institution or trust company which is the principal subsidiary
     of a holding company, the long-term debt obligations of such holding
     company) are rated in one of two of the highest ratings, by each of the
     Rating Agencies;

          (iii) repurchase obligations with a term not to exceed 30 days with
     respect to any security described in clause (i) above and entered into with
     a depository institution or trust company (acting as a principal) rated A
     or higher by the Rating Agencies; provided, however, that collateral
     transferred pursuant to such repurchase obligation must be of the type
     described in clause (i) above and must (A) be valued daily at current
     market price plus accrued interest, (B) pursuant to such valuation, be
     equal, at all times, to 105% of the cash transferred by the Trustee in
     exchange for such collateral, and (C) be delivered to the Trustee or, if
     the Trustee is supplying the collateral, an agent for the Trustee, in such
     a manner as to accomplish perfection of a security interest in the
     collateral by possession of certificated securities;

          (iv) securities bearing interest or sold at a discount issued by any
     corporation incorporated under the laws of the United States of America or
     any state thereof which has a long-term unsecured debt rating in the
     highest available rating category of each of the Rating Agencies at the
     time of such investment;

          (v) commercial paper having an original maturity of less than 365 days
     and issued by an institution having a short-term unsecured debt rating in
     the highest available rating category of each of the Rating Agencies at the
     time of such investment;

          (vi) a guaranteed investment contract approved by each of the Rating
     Agencies and issued by an insurance company or other corporation having a
     long-term unsecured debt rating in the highest available rating category of
     each of the Rating Agencies at the time of such investment;

          (vii) which may be 12b-1 funds as contemplated under the rules
     promulgated by the Securities and Exchange Commission under the Investment
     Company Act of 1940) having ratings in the highest available rating
     category of Moody's and one of the two highest available rating categories
     of S&P at the time of such investment (any such money market

                                       19

<PAGE>

     funds which provide for demand withdrawals being conclusively deemed to
     satisfy any maturity requirements for Eligible Investments set forth
     herein) including money market funds of the Servicers or the Trustee and
     any such funds that are managed by the Servicer or the Trustee or their
     respective Affiliates or for the Servicers or the Trustee or any Affiliate
     of either acts as advisor, as long as such money market funds satisfy the
     criteria of this subparagraph (vii); and

          (viii) such other investments the investment in which will not, as
     evidenced by a letter from each of the Rating Agencies, result in the
     downgrading or withdrawal of the Ratings of the Certificates.

provided, however, that no such instrument shall be an Eligible Investment if
such instrument evidences either (i) a right to receive only interest payments
with respect to the obligations underlying such instrument, or (ii) both
principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations.

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

          ERISA-Restricted Certificates: As specified in the Preliminary
Statement.

          Escrow Account: The separate account or accounts created and
maintained by each Servicer pursuant to Section 3.06.

          Escrow Payments: With respect to any Mortgage Loan, the amounts
constituting ground rents, taxes, mortgage insurance premiums, fire and hazard
insurance premiums, and any other payments required to be escrowed by the
Mortgagor with the mortgagee pursuant to the Mortgage, applicable law or any
other related document.

          Event of Default: As defined in Section 7.01.

          Expense Fees: As to each Mortgage Loan, the sum of the related
Servicing Fee, the Loss Mitigation Fee and the Trustee Fee.

          Expense Fee Rate: As to each Mortgage Loan, the sum of the related
Servicing Fee Rate, the Loss Mitigation Fee Rate and the Trustee Fee Rate.

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

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

          FIRREA: The Financial Institutions Reform, Recovery and Enforcement
Act of 1989.

                                       20

<PAGE>

          First Mortgage Loan: A Mortgage Loan that is secured by a first lien
on the Mortgaged Property securing the related Mortgage Note. Fitch: Fitch,
Inc., or any successor thereto, located at One State Street Plaza 32nd Floor,
New York, NY 10004.

          FNMA: The Federal National Mortgage Association, a federally chartered
and privately owned corporation organized and existing under the Federal
National Mortgage Association Charter Act, or any successor thereto.

          FNMA Guides: The FNMA Sellers' Guide and the FNMA Servicers' Guide and
all amendments or additions thereto.

          Foreclosure Restricted Loan: Any Mortgage Loan that is 60 or more days
delinquent as of the Closing Date, unless such Mortgage Loan has become current
for three consecutive Scheduled Payments after the Closing Date.

          Indirect Participant: A broker, dealer, bank or other financial
institution or other Person that clears through or maintains a custodial
relationship with a Depository Participant.

          Insurance Proceeds: Proceeds paid under any Insurance Policy covering
a Mortgage Loan to the extent the proceeds are not applied to the restoration of
the related Mortgaged Property or released to the Mortgagor in accordance with
the procedures that the Servicer would follow in servicing mortgage loans held
for its own account.

          Interest Accrual Period: With respect to each Distribution Date, (i)
with respect to the Class P, Class A-IO, Class R, Class B-2 and Class X-1
Certificates, the calendar month prior to the month of such Distribution Date,
(ii) with respect to the Class A-1, Class A-2, Class M-1, Class M-2 and Class
B-1 Certificates, the one-month period commencing on the 25th day of the month
preceding the month in which such Distribution Date occurs and ending on the
24th day of the month in which such Distribution Date occurs.

          Interest Remittance Amount: For any Distribution Date, an amount equal
to the sum of (1) all interest collected (other than Payaheads and Simple
Interest Excess, if applicable) or advanced in respect of Scheduled Payments on
the Mortgage Loans during the related Due Period, the interest portion of
Payaheads previously received and intended for application in the related Due
Period and the interest portion of all Payoffs and Curtailments received on the
Mortgage Loans during the related Prepayment Period, less (x) the Expense Fee
with respect to such Mortgage Loans and (y) unreimbursed Advances and other
amounts due to a Servicer or the Trustee with respect to such Mortgage Loans, to
the extent allocable to interest, (2) all Compensating Interest Payments paid by
each Servicer with respect to the Mortgage Loans it is servicing and such
Distribution Date, (3) the portion of any Substitution Adjustment Amount or
Repurchase Price paid with respect to such Mortgage Loans during the calendar
month immediately preceding the Distribution Date allocable to interest, (4) all
Net Liquidation Proceeds, and any Insurance Proceeds and other recoveries (net
of unreimbursed Advances, Servicing Advances and expenses, to the extent
allocable to interest, and unpaid Servicing Fees) collected with respect to the
Mortgage Loans during the prior calendar month, to the extent allocable to
interest and (5) any amounts withdrawn from the Simple Interest Excess
Sub-Account to pay interest on the Certificates with respect to such
Distribution Date. If on

                                       21

<PAGE>

any Determination Date the amount deposited into the Collection Account with
respect to Compensating Interest is the amount calculated in clause (ii) of the
definition of Compensating Interest Payment for such Distribution Date, any
remaining Servicing Fee shall be available to cover any Net Simple Interest
Shortfalls remaining on such Distribution Date, after giving effect to the
withdrawal from the Simple Interest Excess Sub-Account pursuant to Section
3.06(f) on such Distribution Date.

          Interest Shortfall: For any Distribution Date, the aggregate
shortfall, if any, in collections of interest for the previous month (adjusted
to the related Net Mortgage Rate) on Mortgage Loans resulting from (a) Principal
Prepayments received during the related Prepayment Period to the extent not
covered by Compensating Interest and (b) Relief Act Reductions.

          Investment Account: The commingled account (which shall be commingled
only with investment accounts related to series of pass-through certificates
with a Class of certificates which has a rating equal to the highest of the
Ratings of the Certificates) maintained by a Servicer in the trust department of
the Investment Depository pursuant to Section 3.05.

          Investment Depository: The Chase Manhattan Bank, New York, New York or
another bank or trust company designated from time to time by a Servicer. The
Investment Depository shall at all times be an Eligible Institution.

          Last Scheduled Distribution Date: With respect to each Class of
Certificates, other than the Class A-IO Certificates, the Distribution Date in
August 2031. With respect to the Class A-IO Certificates, the Distribution Date
in August 2004.

          Latest Possible Maturity Date: Solely for purposes of satisfying
Treasury regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" of all interests created in REMIC 1, REMIC 2 and REMIC 3 shall be August
25, 2031.

          LIBOR: For any Interest Accrual Period other than the first Interest
Accrual Period, the rate for United States dollar deposits for one month which
appears on the Dow Jones Telerate Screen Page 3750 as of 11:00 A.M., London,
England time, on the second LIBOR Business Day prior to the first day of such
Interest Accrual Period. With respect to the first Interest Accrual Period, the
rate for United States dollar deposits for one month which appears on the Dow
Jones Telerate Screen Page 3750 as of 11:00 A.M., London, England time, two
LIBOR Business Days prior to the Closing Date. If such rate does not appear on
such page (or such other page as may replace that page on that service, or if
such service is no longer offered, such other service for displaying LIBOR or
comparable rates as may be reasonably selected by the Trustee), the rate will be
the Reference Bank Rate. If no such quotations can be obtained and no Reference
Bank Rate is available, LIBOR will be the LIBOR applicable to the Interest
Accrual Period preceding the next applicable Distribution Date.

          LIBOR Business Day: Any day other than (i) a Saturday or a Sunday or
(ii) a day on which banking institutions in the State of New York or in the city
of London, England are required or authorized by law to be closed.

                                       22

<PAGE>

          Liquidated Mortgage Loan: With respect to any Distribution Date, a
defaulted Mortgage Loan (including any REO Property) which was liquidated in the
calendar month preceding the month of such Distribution Date and as to which the
Servicer has determined (in accordance with this Agreement) that it has received
all amounts it expects to receive in connection with the liquidation of such
Mortgage Loan, including the final disposition of the related REO Property.

          Liquidation Proceeds: Amounts, including Insurance Proceeds, received
in connection with the partial or complete liquidation of defaulted Mortgage
Loans, whether through trustee's sale, foreclosure sale or otherwise or amounts
received in connection with any condemnation or partial release of a Mortgaged
Property and any other proceeds received in connection with an REO Property,
less the sum of related unreimbursed Expense Fees, Servicing Advances, Advances
and reasonable out-of-pocket expenses.

          Loan Group: Any of Loan Group 1 or Loan Group 2, as applicable.

          Loan Group 1: All Mortgage Loans identified as Loan Group 1 Mortgage
Loans on the Mortgage Loan Schedule.

          Loan Group 1 Senior Certificates: Class A-1 Certificates.

          Loan Group 2: All Mortgage Loans identified as Loan Group 2 Mortgage
Loans on the Mortgage Loan Schedule.

          Loan Group 2 Senior Certificates: Class A-2 Certificates.

          Loss Mitigation Advisor: The Murrayhill Company, a Colorado
corporation.

          Loss Mitigation Advisory Agreement: The agreement among the Depositor
and the Loss Mitigation Advisor dated as of August 29, 2001.

          Loss Mitigation Fee: As to each Mortgage Loan and any Distribution
Date, an amount equal to one month's interest at the Loss Mitigation Fee Rate on
the Stated Principal Balance of such Mortgage Loan as of the Due Date in the
month of such Distribution Date (prior to giving effect to any Scheduled
Payments due on such Mortgage Loan on such Due Date).

          Loss Mitigation Fee Rate: 0.015% per annum.

          Majority in Interest: As to any Class of Regular Certificates, the
Holders of Certificates of such Class evidencing, in the aggregate, at least 51%
of the Percentage Interests evidenced by all Certificates of such Class.

          Marker Rate: With respect to the Class X-1 Certificates and any
Distribution Date, a per annum rate equal to two (2) times the weighted average
of the Uncertificated REMIC 2 Pass-Through Rates for REMIC 2 Regular Interests
MT-2, MT-3, MT-4, MT-5, MT-6, MT-7 and MT-8, with the rates on REMIC 2 Regular
Interests MT-2, MT-3, MT-4, MT-5, and MT-6, MT-7 subject to a cap equal to the
lesser of (A) LIBOR plus the Certificate Margin for the Corresponding

                                       23

<PAGE>

Certificate and (B) the REMIC 2 Net WAC Rate for the purpose of this
calculation, with the rate on REMIC 2 Regular Interest MT-7 subject to a cap
equal to the lesser of (A) on or prior to the Optional Termination Date, 12.00%
per annum, and after the Optional Termination Date 12.00% per annum, and (B) the
REMIC 2 Net WAC Rate for the purpose of this calculation, and with the rate on
REMIC 2 Regular Interest MT-8 subject to a cap of zero for the purpose of this
calculation.

          Maximum Interest Rate: With respect to any Class of LIBOR Certificates
and any Distribution Date, an annual rate equal to the weighted average of the
Mortgage Rates of the Mortgage Loans minus the weighted average Expense Fee
Rate.

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

          MERS(R) System: The system of recording transfers of Mortgages
electronically maintained by MERS.

          MIN: The Mortgage Identification Number for Mortgage Loans registered
with MERS on the MERS(R)System.

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

          Monthly Excess Cashflow: For any Distribution Date, an amount equal to
the sum of the Monthly Excess Interest and Overcollateralization Release Amount,
if any, for such date.

          Monthly Excess Interest: As to any Distribution Date, the sum of (A)
the Interest Remittance Amount remaining after the application of payments
pursuant to clauses A. through F. of Section 4.02(b)(i) plus (B) the Principal
Payment Amount remaining after the application of payments pursuant to clauses
A. through E. of Section 4.02(b)(ii) or (iii).

          Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.06.

          Moody's: Moody's Investors Service, Inc., or any successor thereto.
For purposes of Section 10.05(b) the address for notices to Moody's shall be
Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007,
Attention: Residential Pass-Through Monitoring, or such other address as Moody's
may hereafter furnish to the Depositor, each Servicer and the Trustee.

          Mortgage: The mortgage, deed of trust or other instrument creating a
first or second lien on an estate in fee simple or leasehold interest in real
property securing a Mortgage Note.

          Mortgage File: The Mortgage documents listed in Section 2.01(b) hereof
pertaining to a particular Mortgage Loan and any additional documents delivered
to the Trustee to be added to the Mortgage File pursuant to this Agreement.

                                       24

<PAGE>

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

          Mortgage Loan Schedule: The Mortgage Loan Schedule which will list the
Mortgage Loans (as from time to time amended by the Seller to reflect the
addition of Qualified Substitute Mortgage Loans and the purchase of Mortgage
Loans pursuant to Section 2.02 or 2.03) transferred to the Trustee as part of
the Trust Fund and from time to time subject to this Agreement, attached hereto
as Schedule I, setting forth the following information with respect to each
Mortgage Loan:

          (i) the Mortgage Loan identifying number;

          (ii) the Mortgagor's name;

          (iii) the street address of the Mortgaged Property including the state
     and zip code;

          (iv) a code indicating the type of Mortgaged Property and the
     occupancy status.

          (v) the original months to maturity or the remaining months to
     maturity from the Cut-off Date, in any case based on the original
     amortization schedule and, if different, the maturity expressed in the same
     manner but based on the actual amortization schedule;

          (vi) the Combined Loan-to-Value Ratio at origination;

          (vii) the Mortgage Rate as of the Cut-off Date;

          (viii) the stated maturity date;

          (ix) the amount of the Scheduled Payment as of the Cut-off Date;

          (x) the original principal amount of the Mortgage Loan;

          (xi) the principal balance of the Mortgage Loan as of the close of
     business on the Cut-off Date, after deduction of payments of principal due
     on or before the Cut-off Date whether or not collected;

          (xii) a code indicating the purpose of the Mortgage Loan (i.e.,
     purchase, rate and term refinance, equity take-out refinance);

          (xiii) the Net Mortgage Rate as of the Cut-off Date;

          (xiv) the Originator of the related Mortgage Loan;

          (xv) the Servicing Fee Rate;

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<PAGE>

          (xvi) the related sub-servicer;

          (xvii) a code indicating whether a Mortgage Loan is subject to a
     Prepayment Penalty;

          (xviii) the amount of the Prepayment Penalty with respect to each
     Mortgage Loan and a code identifying whether such Prepayment Penalty is
     related to a Curtailment or Payoff;

          (xix) whether such Mortgage Loan is a Simple Interest Loan;

          (xx) whether such Mortgage Loan is a Balloon Loan;

          (xxi) whether such Mortgage Loan is in Loan Group 1 or Loan Group 2;
     and

          (xxii) whether such Mortgage Loan is a Wilshire Serviced Loan or a
     Vesta Serviced Loan.

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

          (i) the number of Mortgage Loans in each Loan Group; and

          (ii) the current aggregate principal balance of the Mortgage Loans in
     each Loan Group as of the close of business on the Cut-off Date, after
     deduction of payments of principal due on or before the Cut-off Date
     whether or not collected.

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

          Mortgage Rate: The annual fixed rate of interest borne by a Mortgage
Note.

          Mortgaged Property: The underlying real property securing a Mortgage
Loan.

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

          Net Excess Spread: With respect to any Distribution Date and Loan , a
fraction, expressed as a percentage, the numerator of which is equal to the
excess of (x) the aggregate Stated Principal Balance for such Distribution Date
of the Mortgage Loans, multiplied by the weighted average Net Mortgage Rate of
such Mortgage Loans over (y) the Interest Remittance Amount for such
Distribution Date, and the denominator of which is an amount equal to the
aggregate Stated Principal Balance for such Distribution Date of the Mortgage
Loans, multiplied by the actual number of days elapsed in the related Interest
Accrual Period divided by 360.

          Net Funds Cap: As to any Distribution Date, will be a per annum rate
equal to (a) a fraction, expressed as a percentage, (a) the numerator of which
is (1) the amount of interest accrued

                                       26

<PAGE>

on the Mortgage Loans for such date, minus (2) the sum of (i) the Expense Fee
and (ii) the Current Interest for the Class A-IO Certificates for such date, and
(b) the denominator of which is the product of (i) the Aggregate Loan Balance
immediately preceding such Distribution Date (or as of the Cut-off Date in the
case of the first Distribution Date), multiplied by (ii) the actual number of
days in the related Interest Accrual Period. For federal income tax purposes,
however, as to any Distribution Date will be the equivalent of the foregoing,
expressed as a per annum rate equal to the weighted average of the
Uncertificated Pass-Through Rates on the REMIC 2 Regular Interests other than
REMIC 2 Regular Interests MT-II-IO, MT-P and MT-R.

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

          Net Prepayment Interest Shortfalls: As to any Distribution Date, the
amount, if any, by which the aggregate of Prepayment Interest Shortfalls during
the Prepayment Period exceeds the Compensating Interest Payment for such
Distribution Date.

          Net Rate Cap: As to any Distribution Date, will be a per annum rate
equal to (a) a fraction, expressed as a percentage, (a) the numerator of which
is 12 times the excess of (1) the amount of interest accrued on the Mortgage
Loans for such date, minus (2) the Expense Fee, and (b) the denominator of which
is the Aggregate Loan Balance immediately preceding such Distribution Date (or
as of the Cut-off Date in the case of the first Distribution Date).

          Net Simple Interest Excess: As of any Distribution Date, the excess,
if any, of the aggregate amount of Simple Interest Excess over the amount of
Simple Interest Shortfall.

          Net Simple Interest Shortfall: As of any Distribution Date, the
excess, if any, of the aggregate amount of Simple Interest Shortfall over the
amount of Simple Interest Excess.

          Nonrecoverable Advance: Any portion of an Advance or Servicing Advance
previously made or proposed to be made by the applicable Servicer that, in the
good faith judgment of the applicable Servicer, will not be ultimately
recoverable by the Servicer from the related Mortgagor, related Liquidation
Proceeds or otherwise.

          Notional Amount: Any of the Class A-IO Notional Amount or Class X-1
Notional Amount, as the context requires.

          Notional Amount Certificates: As specified in the Preliminary
Statement.

          Offered Certificates: As specified in the Preliminary Statement.

          Officer's Certificate: A certificate signed by the Chairman of the
Board or the Vice Chairman of the Board or the President or a Vice President or
an Assistant Vice President or the Treasurer or the Secretary or one of the
Assistant Treasurers or Assistant Secretaries of the Servicer or the Depositor,
and delivered to the Depositor or the Trustee, as the case may be, as required
by this Agreement.

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<PAGE>

          Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Depositor or a Servicer, including in-house counsel, reasonably
acceptable to the Trustee; provided, however, that with respect to the
interpretation or application of the REMIC Provisions, such counsel must (i) in
fact be independent of the Depositor and any Servicer, (ii) not have any
material direct financial interest in the Depositor or the Servicer or in any
affiliate of either, and (iii) not be connected with the Depositor or the
Servicer as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

          Optional Termination: The termination of the trust created hereunder
in connection with the purchase of the Mortgage Loans pursuant to Section 9.01.

          Optional Termination Date: The first date on which the Optional
Termination may be exercised.

          Optional Termination Holder: The Person who may terminate the trust
pursuant to Section 9.01, which shall be the Majority in Interest Class X-1
Certificateholder; provided however that if the Majority in Interest Class X-1
Certificateholder is the Seller or Credit Suisse First Boston Corporation, or an
Affiliate of the Seller or Credit Suisse First Boston Corporation, then the
Optional Termination Holder shall be Vesta or any successor servicer servicing
the Vesta Serviced Loans.

          OTS: The Office of Thrift Supervision.

          Outsourcer: As defined in Section 3.02.

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

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

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

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

          Overcollateralization Amount: For any Distribution Date, an amount
equal to the amount, if any, by which (x) the Aggregate Loan Balance for such
Distribution Date exceeds (y) the aggregate Class Principal Balance of the
Certificates after giving effect to payments on such Distribution Date.

          Overcollateralization Release Amount: For any Distribution Date, an
amount equal to the lesser of (x) the Principal Remittance Amount for such
Distribution Date and (y) the amount, if any, by which (1) the
Overcollateralization Amount for such date, calculated for this purpose on the
basis of the assumption that 100% of the aggregate of the Principal Remittance
Amount for such

                                       28

<PAGE>

date is applied on such date in reduction of the aggregate of the Class
Principal Balances of the Certificates, exceeds (2) the Targeted
Overcollateralization Amount for such date.

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

          Pass-Through Rate: With respect to the Class A-IO Certificates and
Class B-2 Certificates, the per annum rate set forth in the Preliminary
Statement. With respect to the Class A-1, Class A-2, Class R, Class P, Class
M-1, Class M-2 and Class B-1 Certificates, the Class A-1 Pass-Through Rate,
Class A-2 Pass-Through Rate, Class R Pass-Through Rate, Class P Pass-Through
Rate, Class M-1 Pass-Through Rate, Class M-2 Pass-Through Rate and Class B-1
Pass-Through Rate.

          With respect to the Class A-IO Certificates and each Interest Accrual
Period, the lesser of 7.00% per annum and the Net Rate Cap for the September
2001 through August 2004 Distribution Dates, and 0.00% per annum thereafter;
provided, however, for federal income tax purposes, the Class A-IO Certificate
will not have a Pass-Through Rate but will pay an amount equal to 100% of the
amount paid on REMIC 2 Regular Interest MT-IO.

          With respect to the Class X-1 Certificates and any Distribution Date,
a per annum rate equal to the percentage equivalent of a fraction, the numerator
of which is the sum of the amounts calculated pursuant to clauses (A) through
(H) below, and the denominator of which is the aggregate of the Uncertificated
Principal Balances of REMIC 2 Regular Interest MT-1, REMIC 2 Regular Interest
MT-2, REMIC 2 Regular Interest MT-3, REMIC 2 Regular Interest MT-4, REMIC 2
Regular Interest MT-5, REMIC 2 Regular Interest MT-6, REMIC 2 Regular Interest
MT-7 and REMIC 2 Regular Interest MT-8. For purposes of calculating the
Pass-Through Rate for the Class X-1 Certificates, the numerator is equal to the
sum of the following components:

          (A)  the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
               Interest MT-1 minus the Marker Rate, applied to an amount equal
               to the Uncertificated Principal Balance of REMIC 2 Regular
               Interest MT-1;

          (B)  the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
               Interest MT-2 minus the Marker Rate, applied to an amount equal
               to the Uncertificated Principal Balance of REMIC 2 Regular
               Interest MT-2;

          (C)  the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
               Interest MT-3 minus the Marker Rate, applied to an amount equal
               to the Uncertificated Principal Balance of REMIC 2 Regular
               Interest MT-3;

          (D)  the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
               Interest MT-4 minus the Marker Rate, applied to an amount equal
               to the Uncertificated Principal Balance of REMIC 2 Regular
               Interest MT-4;

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<PAGE>

          (E)  the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
               Interest MT-5 minus the Marker Rate, applied to an amount equal
               to the Uncertificated Principal Balance of REMIC 2 Regular
               Interest MT-5;

          (F)  the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
               Interest MT-6 minus the Marker Rate, applied to an amount equal
               to the Uncertificated Principal Balance of REMIC 2 Regular
               Interest MT-6;

          (G)  the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
               Interest MT-7 minus the Marker Rate, applied to an amount equal
               to the Uncertificated Principal Balance of REMIC 2 Regular
               Interest MT-7;

          (H)  the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2 Regular
               Interest MT-8 minus the Marker Rate, applied to an amount equal
               to the Uncertificated Principal Balance of REMIC 2 Regular
               Interest MT-8.

          Payahead: Any Scheduled Payment intended by the related Mortgagor to
be applied in a Due Period subsequent to the Due Period in which such payment
was received.

          Payoff: Any payment of principal on a Mortgage Loan equal to the
entire outstanding Stated Principal Balance of such Mortgage Loan, if received
in advance of the last scheduled Due Date for such Mortgage Loan and accompanied
by an amount of interest equal to accrued unpaid interest on the Mortgage Loan
to the date of such payment-in-full.

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

          Permitted Transferee: Any person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(1) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in section 1381(a)(2)(C) of the Code, (v) a Person that is not a
United States Person, and (vi) a Person designated as a non-Permitted Transferee
by the Depositor based upon an Opinion of Counsel that the Transfer of an
Ownership Interest in a Residual Certificate to such Person may cause any REMIC
created hereunder to fail to qualify as a REMIC at any time that the
Certificates are outstanding. The terms "United States," "State" and
"International Organization" shall have the meanings set forth in section 7701
of the Code or successor provisions. A corporation will not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof for these purposes if all of its activities are subject to tax and, with
the exception of the Federal Home Loan Mortgage Corporation, a majority of its
board of directors is not selected by such government unit.

                                       30

<PAGE>

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

          Physical Certificates: As specified in the Preliminary Statement.

          Prepayment Interest Shortfall: As to any Mortgage Loan, Distribution
Date and Principal Prepayment, the difference between (i) one full month's
interest at the applicable Mortgage Rate (giving effect to any applicable Relief
Act Reduction), as reduced by the related Expense Fee Rate, on the outstanding
principal balance of such Mortgage Loan immediately prior to such prepayment and
(ii) the amount of interest actually received with respect to such Mortgage Loan
in connection with such Principal Prepayment.

          Prepayment Penalty: With respect to any Mortgage Loan, any penalty
required to be paid if the Mortgagor prepays such Mortgage Loan as provided in
the related Mortgage Note or Mortgage.

          Prepayment Period: With respect to each Distribution Date and each
Payoff, the related "Prepayment Period" will be the calendar month preceding the
month in which the related Distribution Date occurs. With respect to each
Distribution Date and each Curtailment, the related "Prepayment Period" will be
the calendar month preceding the month in which the related Distribution Date
occurs. Principal Payment Amount: For any Distribution Date, an amount equal to
the Principal Remittance Amount for such date minus the Overcollateralization
Release Amount, if any, for such date.

          Principal Remittance Amount: For any Distribution Date, an amount
equal to the sum of (1) all principal collected (other than Payaheads) or
advanced in respect of Scheduled Payments on the Mortgage Loans during the
related Due Period (less unreimbursed Advances, Servicing Advances and other
amounts due to each Servicer and the Trustee with respect to the Mortgage Loans,
to the extent allocable to principal) and the principal portion of Payaheads
previously received and intended for application in the related Due Period, (2)
all Principal Prepayments on the Mortgage Loans received during the related
Prepayment Period, (3) the outstanding principal balance of each Mortgage Loan
that was repurchased by the Seller, the Optional Termination Holder or the Class
X-2 Certificateholder during the calendar month immediately preceding such
Distribution Date, (4) the portion of any Substitution Adjustment Amount paid
with respect to any Deleted Mortgage Loans during the calendar month immediately
preceding such Distribution Date allocable to principal and (5) all Net
Liquidation Proceeds, and any Insurance Proceeds and other recoveries (net of
unreimbursed Advances, Servicing Advances and other expenses, to the extent
allocable to principal) collected with respect to the Mortgage Loans during the
prior calendar month, to the extent allocable to principal.

          Principal Prepayment: Any payment of principal on a Mortgage Loan
which constitutes a Payoff or Curtailment.

          Prospectus Supplement: The Prospectus Supplement dated August 27, 2001
relating to the Offered Certificates.

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<PAGE>

          PUD: Planned Unit Development.

          Qualified Insurer: A mortgage guaranty insurance company duly
qualified as such under the laws of the state of its principal place of business
and each state having jurisdiction over such insurer in connection with the
insurance policy issued by such insurer, duly authorized and licensed in such
states to transact a mortgage guaranty insurance business in such states and to
write the insurance provided by the insurance policy issued by it, approved as a
FNMA- or FHLMC-approved mortgage insurer or having a claims paying ability
rating of at least "AA" or equivalent rating by at least two nationally
recognized statistical rating organizations. Any replacement insurer with
respect to a Mortgage Loan must have at least as high a claims paying ability
rating as the insurer it replaces had on the Closing Date.

          Qualified Substitute Mortgage Loan: A Mortgage Loan substituted by the
Seller for a Deleted Mortgage Loan which must, on the date of such substitution,
as confirmed in a Request for Release, substantially in the form of Exhibit M
(i) have a Stated Principal Balance, after deduction of the principal portion of
the Scheduled Payment due in the month of substitution (or, in the case of a
substitution of more than one mortgage loan for a Deleted Mortgage Loan, an
aggregate principal balance), not in excess of, and not more than 10% less than
the Stated Principal Balance of the Deleted Mortgage Loan; (ii) be accruing
interest at a rate no lower than and not more than 1% per annum higher than,
that of the Deleted Mortgage Loan; (iii) have a Combined Loan-to-Value Ratio no
higher than that of the Deleted Mortgage Loan; (iv) have a remaining term to
maturity no greater than (and not more than one year less than that of) the
Deleted Mortgage Loan; and (v) comply with each representation and warranty set
forth in Section 2.03(b).

          Rating Agency: S&P and Moody's. If either such organization or a
successor is no longer in existence, "Rating Agency" shall be such nationally
recognized statistical rating organization, or other comparable Person, as is
designated by the Depositor, notice of which designation shall be given to the
Trustee and the Servicers. References herein to a given rating or rating
category of a Rating Agency shall mean such rating category without giving
effect to any modifiers.

          Ratings: As of any date of determination, the ratings, if any, of the
Certificates as assigned by the Rating Agencies.

          Realized Loss: With respect to each Liquidated Mortgage Loan, an
amount (not less than zero or greater than the Stated Principal Balance of the
Mortgage Loan) as of the date of such liquidation, equal to (i) the Stated
Principal Balance of the Liquidated Mortgage Loan as of the date of such
liquidation, plus (ii) interest at the Net Mortgage Rate from the related Due
Date as to which interest was last paid or advanced (and not reimbursed) to the
related Certificateholders up to the related Due Date in the month in which
Liquidation Proceeds are required to be distributed on the Stated Principal
Balance of such Liquidated Mortgage Loan from time to time, minus (iii) the
Liquidation Proceeds, if any, received during the month in which such
liquidation occurred, to the extent applied as recoveries of interest at the Net
Mortgage Rate and to principal of the Liquidated Mortgage Loan.

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<PAGE>

          Record Date: With respect to the Certificates (other than the Class
A-1, Class A-2, Class M-1, Class M-2 and B-1 Certificates) and any Distribution
Date, the close of business on the last Business Day of the month preceding the
month in which such applicable Distribution Date occurs. With respect to the
Class A-1, Class A-2, Class M-1, Class M-2 and B-1 Certificates which are
Book-Entry Certificates and any Distribution Date, the close of business on the
Business Day preceding such Distribution Date.

          Reference Bank Rate: With respect to any Interest Accrual Period, as
follows: the arithmetic mean (rounded upwards, if necessary, to the nearest one
sixteenth of a percent) of the offered rates for United States dollar deposits
for one month which are offered by the Reference Banks as of 11:00 A.M., London,
England time, on the second LIBOR Business Day prior to the first day of such
Interest Accrual Period to prime banks in the London interbank market for a
period of one month in amounts approximately equal to the aggregate Class
Principal Balance of the LIBOR Certificates; provided that at least two such
Reference Banks provide such rate. If fewer than two offered rates appear, the
Reference Bank Rate will be the arithmetic mean of the rates quoted by one or
more major banks in New York City, selected by the Trustee, as of 11:00 a.m.,
New York time, on such date for loans in U.S. Dollars to leading European Banks
for a period of one month in amounts approximately equal to the aggregate Class
Principal Balance of the Class I-A-1 and Class I-A-4 Certificates, with respect
to LIBOR for Group I and (ii) the aggregate Class Principal Balance of the Class
II-A-1, Class II-M-1, Class II-M-2 and Class II-B Certificates, with respect to
LIBOR for . If no such quotations can be obtained, the Reference Bank Rate shall
be LIBOR applicable to the preceding Distribution Date; provided however, that
if, under the priorities indicated above, LIBOR for a Distribution Date would be
based on LIBOR for the previous Payment Date for the third consecutive
Distribution Date, the Trustee shall select an alternative comparable index over
which the Trustee has no control, used for determining one-month Eurodollar
lending rates that is calculated and published or otherwise made available by an
independent party.

          Reference Banks: Barclays Bank PLC, National Westminster Bank and
Abbey National PLC.

          Regular Certificates: As specified in the Preliminary Statement.

          Relief Act: The Soldiers' and Sailors' Civil Relief Act of 1940, as
amended.

          Relief Act Reductions: With respect to any Distribution Date and any
Mortgage Loan as to which there has been a reduction in the amount of interest
collectible thereon for the most recently ended calendar month as a result of
the application of the Relief Act, the amount, if any, by which (i) interest
collectible on such Mortgage Loan for the most recently ended calendar month is
less than (ii) interest accrued thereon for such month pursuant to the Mortgage
Note.

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

          REMIC 1: The segregated pool of assets subject hereto, constituting
the primary trust created hereby and to be administered hereunder, with respect
to which a REMIC election is to be made consisting of: (i) such Mortgage Loans
as from time to time are subject to this Agreement

                                       33

<PAGE>

(other than any Prepayment Premiums), together with the Mortgage Files relating
thereto, and together with all collections thereon and proceeds thereof, (ii)
any REO Property, together with all collections thereon and proceeds thereof,
(iii) the Trustee's rights with respect to the Mortgage Loans under all
insurance policies, including the Primary Insurance Policy, required to be
maintained pursuant to this Agreement and any proceeds thereof and, (iv) the
Collection Account and the Certificate Account (subject to the last sentence of
this definition) and such assets that are deposited therein from time to time
and any investments thereof. Notwithstanding the foregoing, however, a REMIC
election will not be made with respect to the Reserve Fund.

          REMIC 1 Net Wac Rate: With respect to any Distribution Date, a per
annum rate equal to the weighted average of the related REMIC 1 Pass-Through
Rates on the REMIC 1 Regular Interests, weighted on the basis of the respective
Uncertificated Principal Balances thereof immediately preceding such
Distribution Date.

          REMIC 1 Regular Interest LT-1: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-1 shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-2: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-2 shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-3: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-3 shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-4: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-4 shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-5: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-5 shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal,

                                       34

<PAGE>

subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

          REMIC 1 Regular Interest LT-6: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-6 shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-7: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-7 shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-8: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-8 shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-9: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-9 shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-10: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-10 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-11: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-11 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

                                       35

<PAGE>

          REMIC 1 Regular Interest LT-12: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-12 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-13: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-13 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-14: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-14 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-15: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-15 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-16: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-16 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-17: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-17 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-18: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-18 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal,

                                       36

<PAGE>

subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

          REMIC 1 Regular Interest LT-19: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-19 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-20: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-20 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-21: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-21 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-22: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-22 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-23: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-23 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-24: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-24 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

                                       37

<PAGE>

          REMIC 1 Regular Interest LT-25: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-25 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-26: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-26 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-27: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-27 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-28: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-28 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-29: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-29 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto. 0 REMIC 1 Regular Interest LT-30: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-30 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-31: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-31 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal,

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subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

          REMIC 1 Regular Interest LT-32: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-32 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-33: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-33 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-34: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-34 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-35: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-35 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-36: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-36 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-37: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-37 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

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<PAGE>

          REMIC 1 Regular Interest LT-P: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-P shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interest LT-R: One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LT-R shall accrue interest
at the related Uncertificated REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 1 Regular Interests: REMIC 1 Regular Interest LT-1, LT-2, LT-3,
LT-4, LT-5, LT-6, LT-7, LT-8, LT-9, LT-10, LT-11, LT-12, LT-13, LT-14, LT-15,
LT-16, LT-17, LT-18, LT-19, LT-20, LT-21, LT-22, LT-23, LT-24, LT-25, LT-26,
LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36, LT-37,
LT-P and LT-R.

          REMIC 2: The segregated pool of assets containing all of the REMIC 1
Regular Interests, with respect to which a REMIC election is to be made.

          REMIC 2 Interest Loss Allocation Amount: With respect to any
Distribution Date, an amount equal to (a) the product of (i) the aggregate
Stated Principal Balance of the Mortgage Loans and related REO Properties then
outstanding and (ii) the Uncertificated REMIC 2 Pass-Through Rate for REMIC 2
Regular Interest MT-1 minus the Marker Rate, divided by (b) 12.

          REMIC 2 Net Wac Rate: With respect to any Distribution Date, a per
annum rate equal to the weighted average of the related REMIC 2 Pass-Through
Rates on the REMIC 2 Regular Interests (other than REMIC 2 Regular Interests
MT-IO, MT-P and MT-R), weighted on the basis of the respective Uncertificated
Principal Balances thereof immediately preceding such Distribution Date.

          REMIC 2 Overcollateralization Amount: With respect to any date of
determination, (i) 1% of the aggregate Uncertificated Principal Balances of the
REMIC 2 Regular Interests minus (ii) the aggregate Uncertificated Principal
Balances of REMIC 2 Regular Interests MT-2, MT-3, MT- 4, MT-5, MT-6, MT-7, MT-R
and MT-P, in each case as of such date of determination.

          REMIC 2 Principal Loss Allocation Amount: With respect to any
Distribution Date, an amount equal to the product of (i) the aggregate Stated
Principal Balance of the Mortgage Loans and related REO Properties then
outstanding and (ii) 1 minus a fraction, the numerator of which is two times the
aggregate Uncertificated Principal Balance of REMIC 2 Regular Interests MT-2,
MT- 3, MT-4, MT-5, MT-6, MT-7, and the denominator of which is the aggregate
Uncertificated Principal Balance of REMIC 2 Regular Interests MT-2, MT-3, MT-4,
MT-5, MT-6, MT-7 and MT- 8.

                                       40

<PAGE>

          REMIC 2 Regular Interest MT-1: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MT-1 shall accrue interest
at the related Uncertificated REMIC 2 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 2 Regular Interest MT-2: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MT-2 shall accrue interest
at the related Uncertificated REMIC 2 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 2 Regular Interest MT-3: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MT-3 shall accrue interest
at the related Uncertificated REMIC 2 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 2 Regular Interest MT-4: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MT-4 shall accrue interest
at the related Uncertificated REMIC 2 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 2 Regular Interest MT-5: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MT-5 shall accrue interest
at the related Uncertificated REMIC 2 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 2 Regular Interest MT-6: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MT-6 shall accrue interest
at the related Uncertificated REMIC 2 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 2 Regular Interest MT-7: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MT-7 shall accrue interest
at the related Uncertificated REMIC 2 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal,

                                       41

<PAGE>

subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Principal Balance as set forth in the Preliminary
Statement hereto.

          REMIC 2 Regular Interest MT-8: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MT-8 shall accrue interest
at the related Uncertificated REMIC 2 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 2 Regular Interest MT-8 Maximum Interest Deferral Amount: With
respect to any Distribution Date, the excess of (i) REMIC 2 Uncertificated
Accrued Interest calculated with the Uncertificated Pass-Through Rate for REMIC
2 Regular Interest MT-8 and an Uncertificated Principal Balance equal to the
excess of (x) the Uncertificated Principal Balance of REMIC 2 Regular Interest
MT-8 over (y) the REMIC 2 Overcollateralization Amount, in each case for such
Distribution Date, over (ii) the sum of REMIC 2 Uncertificated Accrued Interest
on REMIC 2 Regular Interests MT-2, MT-3, MT-4, MT-5, MT-6, and MT-7, with the
rates on REMIC 2 Regular Interests MT-2, MT-3, MT-4, MT-5 and MT-6 subject to a
cap equal to the lesser of (a) LIBOR plus the Certificate Margin relating to the
Corresponding Certificate and (b) the Adjusted Net WAC Rate for the purpose of
this calculation for such Distribution Date and the rate on REMIC 2 Regular
Interest MT-8 subject to a cap equal to the lesser of (a) the Class B-2
Pass-Through Rate and (b) the Adjusted Net WAC Rate for the purpose of this
calculation for such Distribution Date.

          REMIC 2 Regular Interest MT-IO: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MT-IO shall accrue
interest at the related Uncertificated REMIC 2 Pass-Through Rate in effect from
time to time, and shall not be entitled to distributions of principal.

          REMIC 2 Regular Interest MT-P: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MT-P shall accrue interest
at the related Uncertificated REMIC 2 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 2 Regular Interest MT-R: One of the separate non-certificated
beneficial ownership interests in REMIC 2 issued hereunder and designated as a
Regular Interest in REMIC 2. REMIC 2 Regular Interest MT-R shall accrue interest
at the related Uncertificated REMIC 2 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject to the terms
and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

          REMIC 2 Regular Interests: REMIC 2 Regular Interest MT-1, REMIC 2
Regular Interest MT-2, REMIC 2 Regular Interest MT-3, REMIC 2 Regular Interest
MT-4, REMIC 2 Regular Interest MT-5, REMIC 2 Regular Interest MT-6, REMIC 2
Regular Interest MT-7, REMIC

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<PAGE>

2 Regular Interest MT-8, REMIC 2 Regular Interest MT-IO, REMIC 2 Regular
Interest MT-P and REMIC 2 Regular Interest MT-R.

          REMIC 2 Targeted Overcollateralization Amount: 1% of the Targeted
Overcollateralization Amount.

          REMIC 3: The segregated pool of assets consisting of all of the REMIC
2 Regular Interests conveyed in trust to the Trustee, for the benefit of the
Holders of the Regular Certificates and the Class R Certificates (in respect of
the Class R-3 Interest), pursuant to Article II hereunder, and all amounts
deposited therein, with respect to which a separate REMIC election is to be
made.

          REMIC 3 Regular Interests: The Regular Certificates.

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

          REMIC Regular Interests: The REMIC 1 Regular Interests, REMIC 2
Regular Interests and Regular Certificates.

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

          Repurchase Price: With respect to any Mortgage Loan required to be
purchased by the Seller pursuant to this Agreement or purchased at the option of
the Optional Termination Holder or the Majority in Interest Holder of the Class
X-2 Certificates pursuant to this Agreement, an amount equal to the sum of (i)
100% of the unpaid principal balance of the Mortgage Loan on the date of such
purchase, and (ii) accrued unpaid interest thereon at the applicable Mortgage
Rate from the date through which interest was last paid by the Mortgagor to the
Due Date in the month in which the Repurchase Price is to be distributed to
Certificateholders.

          Request for Release: The Request for Release submitted by a Servicer
to the Trustee, substantially in the form of Exhibit M.

          Required Basis Risk Reserve Fund Amount: With respect to any
Distribution Date on which the Net Excess Spread is less than 0.25%, the greater
of (a) $15,000 and (b) the product of 0.50% and the Aggregate Loan Balance. With
respect to any Distribution Date on which the Net Excess Spread is equal to or
greater than 0.25%, $5,000.

          Required Basis Risk Reserve Fund Deposit: With respect to any
Distribution Date on which the Net Excess Spread is less than 0.25%, the excess
of (i) the greater of (a) $15,000 and (b) product of 0.50% and the Aggregate
Loan Balance over (ii) the amount of funds on deposit in the Reserve Fund prior
to deposits thereto on such Distribution Date. With respect to any Distribution
Date on which the Net Excess Spread is equal to or greater than 0.25%, the
excess of

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<PAGE>

(i) $5,000 over (ii) the amount of funds on deposit in the Reserve Fund prior to
deposits thereto on such Distribution Date.

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

          Reserve Fund: The separate Eligible Account created and initially
maintained by the Trustee pursuant to Section 4.09 in the name of the Trustee
for the benefit of the Certificateholders and designated "The Chase Manhattan
Bank in trust for registered holders of Credit Suisse First Boston Mortgage
Securities Corp., Mortgage Pass-Through Certificates, Series 2001-S18." Funds in
the Reserve Fund shall be held in trust for the holders of the Class A-1, Class
A-2, Class M-1, Class M-2, Class B-1 and Class B-2 Certificates for the uses and
purposes set forth in this Agreement. The Reserve Fund will be an "outside
reserve fund" within the meaning of Treasury regulation Section 1.860G-2(h)
established and maintained pursuant to Section 4.09. The Reserve Fund is not an
asset of any REMIC. Ownership of the Reserve Fund is evidenced by the Class X-1
Certificates.

          Residual Certificates: As specified in the Preliminary Statement.

          Responsible Officer: When used with respect to the Trustee, any Vice
President, any Assistant Vice President, any Assistant Secretary, any Trust
Officer or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above designated officers and also to
whom, with respect to a particular matter, such matter is referred because of
such officer's knowledge of and familiarity with the particular subject and who
shall have direct responsibility for the administration of this Agreement.

          Rolling Three Month Delinquency Rate: For any Distribution Date will
be the fraction, expressed as a percentage, equal to the average of the
Delinquency Rates for each of the three (or one and two, in the case of the
first and second Distribution Dates, respectively) immediately preceding months.

          SAIF: The Savings Association Insurance Fund, or any successor
thereto.

          S&P: Standard & Poor's, a division of The McGraw-Hill Companies, Inc.
For purposes of Section 10.05(b) the address for notices to S&P shall be
Standard & Poor's, 55 Water Street, New York, New York 10004, Attention:
Mortgage Surveillance Monitoring, or such other address as S&P may hereafter
furnish to the Depositor, the Servicers and the Trustee.

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

          Second Mortgage Loan: A Mortgage Loan that is secured by a second lien
on the Mortgaged Property securing the related Mortgage Note.

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

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<PAGE>

          Seller: DLJ Mortgage Capital Inc.

          Senior Certificates: As specified in the Preliminary Statement.

          Senior Enhancement Percentage: For any Distribution Date, the
fraction, expressed as a percentage, the numerator of which is the sum of the
aggregate Class Principal Balance of the Class M-1, Class M-2, Class B-1 and
Class B-2 Certificates and the Overcollateralization Amount (which, for purposes
of this definition only, shall not be less than zero), in each case after giving
effect to payments on such Distribution Date (assuming no Trigger Event is in
effect), and the denominator of which is the Aggregate Loan Balance for such
Distribution Date.

          Senior Principal Payment Amount: For any Distribution Date on or after
the Stepdown Date and as long as a Trigger Event is not in effect with respect
to such Distribution Date, will be the amount, if any, by which (x) the Class
Principal Balance of the Class A-1, Class A-2, Class P and Class R Certificates
immediately prior to such Distribution Date exceeds (y) the lesser of (A) the
product of (i) 38.50% and (ii) the Aggregate Loan Balance for such Distribution
Date and (B) the amount, if any, by which (i) the Aggregate Loan Balance for
such Distribution Date exceeds (ii) 0.50% of the Aggregate Loan Balance as of
the Cut-off Date.

          Servicer: Wilshire or Vesta, or their successors in interest, as
applicable, or any successor servicer appointed as provided herein.

          Servicer Employee: As defined in Section 3.18.

          Servicing Advance: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Servicer of its
servicing obligations, including, but not limited to, the cost (including
reasonable attorneys' fees and disbursements) of (i) the preservation,
restoration and protection of a Mortgaged Property, (ii) any expenses
reimbursable to the Servicer pursuant to Section 3.11 and any enforcement or
judicial proceedings, including foreclosures, and including any expenses
incurred in relation to any such proceedings that result from the Mortgage Loan
being registered on the MERS System (iii) the management and liquidation of any
REO Property (including default management and similar services, appraisal
services and real estate broker services); (iv) any expenses incurred by the
Servicer in connection with obtaining an environmental inspection or review
pursuant to the second paragraph of Section 3.11(a) and (v) compliance with the
obligations under Section 3.09.

          Servicing Fee: As to each Mortgage Loan and any Distribution Date, an
amount equal to one month's interest at the Servicing Fee Rate on the Stated
Principal Balance of such Mortgage Loan as of the Due Date in the month of such
Distribution Date (prior to giving effect to any Scheduled Payments due on such
Mortgage Loan on such Due Date), subject to reduction as provided in Section
3.14.

          Servicing Fee Rate: As to each Mortgage Loan, 0.50% per annum.

          Servicing Officer: With respect to each Servicer, any officer of that
Servicer involved in, or responsible for, the administration and servicing of
the related Mortgage Loans whose name

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<PAGE>

and specimen signature appear on a list of servicing officers furnished to the
Trustee by such Servicer on the Closing Date pursuant to this Agreement, as such
list may from time to time be amended. Simple Interest Excess: As of any
Distribution Date for each Simple Interest Qualifying Loan, the excess, if any,
of (i) the portion of the monthly payment received from the Mortgagor for such
Mortgage Loan allocable to interest with respect to the related Due Period, over
(ii) 30 days' interest on the Stated Principal Balance of such Mortgage Loan at
the Mortgage Rate.

          Simple Interest Excess Sub-Account: The sub-account of the Collection
Account established by each Servicer pursuant to Section 3.06(d). The Simple
Interest Excess Sub-Account shall be an Eligible Account.

          Simple Interest Mortgage Loan: Any Mortgage Loan for which the
interest due thereon is calculated based on the actual number of days elapsed
between the date on which interest was last paid through the date on which the
most current payment is received.

          Simple Interest Qualifying Loan: As of any Determination Date, any
Simple Interest Mortgage Loan that was neither prepaid in full during the
related Due Period, nor delinquent with respect to a payment that became due
during the related Due Period as of the close of business on the Determination
Date following such Due Period.

          Simple Interest Shortfall: As of any Distribution Date for each Simple
Interest Qualifying Loan, the excess, if any, of (i) 30 days' interest on the
Stated Principal Balance of all such Mortgage Loans at the Mortgage Rate, over
(ii) the portion of the monthly payment received from the Mortgagor for such
Mortgage Loan allocable to interest with respect to the related Due Period.

          Startup Day: August 29, 2001.

          Stated Principal Balance: As to any Mortgage Loan and Due Date, the
unpaid principal balance of such Mortgage Loan as of such Due Date as specified
in the amortization schedule at the time relating thereto (before any adjustment
to such amortization schedule by reason of any moratorium or similar waiver or
grace period) after giving effect to any previous Curtailments and Liquidation
Proceeds allocable to principal (other than with respect to any Liquidated
Mortgage Loan) and to the payment of principal due on such Due Date and
irrespective of any delinquency in payment by the related Mortgagor; provided,
however, for purposes of calculating the Servicing Fee and the Trustee Fee, the
Stated Principal Balance of any REO will be the unpaid principal balance
immediately prior to foreclosure.

          Stepdown Date: The date occurring on the later of (x) the Distribution
Date in September 2004 and (y) the first Distribution Date on which the Senior
Enhancement Percentage (calculated for this purpose after giving effect to
payments or other recoveries in respect of the Mortgage Loans during the related
Due Period but before giving effect to payments on the Certificates on such
Distribution Date) is greater than or equal to 61.50%.

          Subordinate Certificates: As specified in the Preliminary Statement.

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<PAGE>

          Subservicer: Any Subservicer which is subservicing the Mortgage Loans
pursuant to a Subservicing Agreement. Any subservicer shall meet the
qualifications set forth in Section 3.02.

          Subservicing Agreement: An agreement between a Servicer and a
Subservicer for the servicing of the Mortgage Loans.

          Substitution Adjustment Amount: As defined in Section 2.03. Targeted
Overcollateralization Amount: For any Distribution Date prior to the Stepdown
Date, 2.75% of the Aggregate Loan Balance as of the Cut-off Date; with respect
to any Distribution Date on or after the Stepdown Date and with respect to which
a Trigger Event is not in effect, the greater of (a) 5.50% of the Aggregate Loan
Balance for such Distribution Date, or (b) 0.50% of the Aggregate Loan Balance
as of the Cut-off Date; with respect to any Distribution Date on or after the
Stepdown Date with respect to which a Trigger Event is in effect and is
continuing, the Targeted Overcollateralization Amount for the Distribution Date
immediately preceding such Distribution Date; provided, however, that the
Targeted Overcollateralization Amount shall not exceed the aggregate Class
Principal Balance of the Certificates. Upon (x) written direction by the
Majority in Interest Holder of the Class X-1 Certificates and (y) the issuance
by an affiliate of the Depositor of a credit enhancement contract in favor of
REMIC 1 which is satisfactory to the Rating Agencies, the Targeted
Overcollateralization Amount shall be reduced to the level approved by the
Rating Agencies as a result of such credit enhancement contract.

          Tax Matters Person: The person designated as "tax matters person" in
the manner provided under Treasury regulationss.1.860F-4(d) and temporary
Treasury regulationss. 301.6231(a)(7)-1T. Initially, the Tax Matters Person
shall be the Trustee.

          Tax Matters Person Certificate: The Class R Certificates, with a
Denomination of $0.05. Transfer: Any direct or indirect transfer or sale of any
Ownership Interest in a Residual Certificate.

          Trigger Event: A Trigger Event will be in effect for any Distribution
Date if (a) the Rolling Three Month Delinquency Rate as of the last day of the
related Due Period equals or exceeds 13.00% of the Senior Enhancement Percentage
for such Distribution Date or (ii) a Cumulative Loss Event is occurring. The
Trigger Event may be amended by the parties hereto in the future with the
consent of the Rating Agencies.

          Trust Fund: Collectively, the assets of REMIC 1, REMIC 2, REMIC 3 and
the Reserve Fund.

          Trustee: The Chase Manhattan Bank and its successors and, if a
successor trustee is appointed hereunder, such successor.

          Trustee Fee: As to each Mortgage Loan and any Distribution Date, an
amount equal to one month's interest at the Trustee Fee Rate on the Stated
Principal Balance of such Mortgage Loan as of the Due Date in the month of such
Distribution Date (prior to giving effect to any Scheduled Payments due on such
Mortgage Loan on such Due Date).

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<PAGE>

          Trustee Fee Rate: With respect to any Distribution Date, 0.005% per
annum.

          Uncertificated Accrued Interest: With respect to each REMIC Regular
Interest on each Distribution Date, an amount equal to one month's interest at
the related Uncertificated Pass-Through Rate on the Uncertificated Principal
Balance of such REMIC Regular Interest. In each case, Uncertificated Accrued
Interest will be reduced by any Net Prepayment Interest Shortfalls and Relief
Act Reductions (allocated to such REMIC Regular Interests based on the
priorities set forth in Section 1.03).

          Uncertificated Notional Amount: With respect to any Distribution Date
and REMIC 2 Regular Interest MT-IO, an amount equal to the lesser of (i) the
mortgage pool balance and (ii) with respect to the Distribution Date in
September 2001, the aggregate Uncertificated Principal Balances of REMIC 1
Regular Interests LT-2, LT-3, LT-4, LT-5, LT-6, LT-7, LT-8, LT-9, LT-10, LT-11,
LT-12, LT-13, LT-14, LT-15, LT-16, LT-17, LT-18, LT-19, LT-20, LT-21, LT-22,
LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33,
LT-34, LT-35, LT-36 and LT-37; with respect to the Distribution Date in October
2001, the aggregate Uncertificated Principal Balances of REMIC 1 Regular
Interests LT-3, LT-4, LT-5, LT-6, LT-7, LT-8, LT-9, LT-10, LT-11, LT-12, LT-13,
LT-14, LT-15, LT-16, LT-17, LT-18, LT-19, LT-20, LT-21, LT-22, LT-23, LT-24,
LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35,
LT-36 and LT-37; with respect to the Distribution Date in November 2001, the
aggregate Uncertificated Principal Balances of REMIC 1 Regular Interest LT-4,
LT-5, LT-6, LT-7, LT-8, LT-9, LT-10, LT-11, LT-12, LT-13, LT-14, LT-15, LT-16,
LT-17, LT-18, LT-19, LT-20, LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27,
LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with
respect to the Distribution Date in 2001, the aggregate Uncertificated Principal
Balances of REMIC 1 Regular Interest LT-5, LT-6, LT-7, LT-8, LT-9, LT-10, LT-11,
LT-12, LT-13, LT-14, LT-15, LT-16, LT-17, LT-18, LT-19, LT-20, LT-21, LT-22,
LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33,
LT-34, LT-35, LT-36 and LT-37; with respect to the Distribution Date in January
2002, the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-6,
LT-7, LT-8, LT-9, LT-10, LT-11, LT-12, LT-13, LT-14, LT-15, LT-16, LT-17, LT-18,
LT-19, LT-20, LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29,
LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with respect to the
Distribution Date in February 2002, the Uncertificated Principal Balances of
REMIC 1 Regular Interest LT-7, LT-8, LT-9, LT-10, LT-11, LT-12, LT-13, LT-14,
LT-15, LT-16, LT-17, LT-18, LT-19, LT-20, LT-21, LT-22, LT-23, LT-24, LT-25,
LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and
LT-37; with respect to the Distribution Date in March 2002, the Uncertificated
Principal Balances of REMIC 1 Regular Interest LT-8, LT-9, LT-10, LT-11, LT-12,
LT-13, LT-14, LT-15, LT-16, LT-17, LT-18, LT-19, LT-20, LT-21, LT-22, LT-23,
LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34,
LT-35, LT-36 and LT-37; with respect to the distribution date Distribution Date
in April 2002, the Uncertificated Principal Balances of REMIC 1 Regular Interest
LT-9, LT-10, LT-11, LT-12, LT-13, LT-14, LT-15, LT-16, LT-17, LT-18, LT-19,
LT-20, LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30,
LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with respect to the
Distribution Date in May 2002, the Uncertificated Principal Balances of REMIC 1
Regular Interest LT-10, LT-11, LT-12, LT-13, LT-14, LT-15, LT-16, LT-17, LT-18,
LT-19, LT-20, LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29,
LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with respect to the
Distribution Date in June 2002, the Uncertificated Principal Balances of REMIC 1
Regular Interest

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LT-11, LT-12, LT-13, LT-14, LT-15, LT-16, LT-17, LT-18, LT-19, LT-20, LT-21,
LT-22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32,
LT-33, LT-34, LT-35, LT-36 and LT-37; with respect to the Distribution Date in
July 2002, the Uncertificated Principal Balances of REMIC 1 Regular Interest
LT-12, LT-13, LT-14, LT-15, LT-16, LT-17, LT-18, LT-19, LT-20, LT-21, LT-22,
LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33,
LT-34, LT-35, LT-36 and LT-37; with respect to the distribution date
Distribution Date in August 2002, the Uncertificated Principal Balances of REMIC
1 Regular Interest LT-13, LT-14, LT-15, LT-16, LT-17, LT-18, LT-19, LT-20,
LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31,
LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with respect to the Distribution
Date in September 2002, the Uncertificated Principal Balances of REMIC 1 Regular
Interest LT-14, LT-15, LT-16, LT-17, LT-18, LT-19, LT-20, LT-21, LT-22, LT-23,
LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34,
LT-35, LT-36 and LT-37; with respect to the Distribution Date in October 2002,
the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-15, LT-16,
LT-17, LT-18, LT-19, LT-20, LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27,
LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with
respect to the Distribution Date in November 2002, the Uncertificated Principal
Balances of REMIC 1 Regular Interest LT-16, LT-17, LT-18, LT-19, LT-20, LT-21,
LT-22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32,
LT-33, LT-34, LT-35, LT-36 and LT-37; with respect to the distribution date
Distribution Date in December 2002, the Uncertificated Principal Balances of
REMIC 1 Regular Interest LT-17, LT-18, LT-19, LT-20, LT-21, LT-22, LT-23, LT-24,
LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35,
LT-36 and LT-37; with respect to the distribution date Distribution Date in
January 2003, the Uncertificated Principal Balances of REMIC 1 Regular Interest
LT-18, LT-19, LT-20, LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28,
LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with respect
to the distribution date Distribution Date in February 2003, the Uncertificated
Principal Balances of REMIC 1 Regular Interest LT-19, LT-20, LT-21, LT-22,
LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33,
LT-34, LT-35, LT-36 and LT-37; with respect to the Distribution Date in March
2003, the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-20,
LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31,
LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with respect to the Distribution
Date in April 2003, the Uncertificated Principal Balances of REMIC 1 Regular
Interest LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30,
LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with respect to the
Distribution Date in May 2003, the Uncertificated Principal Balances of REMIC 1
Regular Interest LT-22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30,
LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with respect to the
Distribution Date in June 2003, the Uncertificated Principal Balances of REMIC 1
Regular Interest LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31,
LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with respect to the Distribution
Date in July 2003, the Uncertificated Principal Balances of REMIC 1 Regular
Interest LT-24, LT-25, LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33,
LT-34, LT-35, LT-36 and LT-37; with respect to the Distribution Date in August
2003, the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-25,
LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and
LT-37; with respect to the distribution date Distribution Date in September
2003, the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-26,
LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37;
with respect to the Distribution Date in October 2003, the Uncertificated
Principal Balances of REMIC 1 Regular Interest LT-27, LT-28, LT-29, LT-30,
LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with

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<PAGE>

respect to the Distribution Date in November 2003, the Uncertificated Principal
Balances of REMIC 1 Regular Interest LT-28, LT-29, LT-30, LT-31, LT-32, LT-33,
LT-34, LT-35, LT-36 and LT-37; with respect to the Distribution Date in December
2003, the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-29,
LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37; with respect to the
distribution date Distribution Date in January 2004, the Uncertificated
Principal Balances of REMIC 1 Regular Interest LT-30, LT-31, LT-32, LT-33,
LT-34, LT-35, LT-36 and LT-37; with respect to the distribution date
Distribution Date in February 2004, the Uncertificated Principal Balances of
REMIC 1 Regular Interest LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37;
with respect to the distribution date Distribution Date in March 2004, the
Uncertificated Principal Balances of REMIC 1 Regular Interest LT-32, LT-33,
LT-34, LT-35, LT-36 and LT-37; with respect to the Distribution Date in April
2004, the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-33,
LT-34, LT-35, LT-36 and LT-37; with respect to the Distribution Date in May
2004, the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-34,
LT-35, LT-36 and LT-37; with respect to the Distribution Date in June 2004, the
Uncertificated Principal Balances of REMIC 1 Regular Interest LT-35, LT-36 and
LT-37; with respect to the distribution date Distribution Date in July 2004, the
Uncertificated Principal Balances of REMIC 1 Regular Interest LT-36 and LT-37;
with respect to the Distribution Date in August 2004, the Uncertificated
Principal Balance of REMIC 1 Regular Interest LT-37, respectively.

          Uncertificated Pass-Through Rate: The Uncertificated REMIC 1
Pass-Through Rate or the Uncertificated REMIC 2 Pass-Through Rate.

          Uncertificated Principal Balance: With respect to each REMIC Regular
Interest, the amount of such REMIC Regular Interest outstanding as of any date
of determination. As of the Closing Date, the Uncertificated Principal Balance
of each REMIC Regular Interest shall equal the amount set forth in the
Preliminary Statement hereto as its initial Uncertificated Principal Balance. On
each Distribution Date, the Uncertificated Principal Balance of each REMIC
Regular Interest shall be reduced by all distributions of principal made on such
REMIC Regular Interest on such Distribution Date pursuant to Section 4.07 and,
if and to the extent necessary and appropriate, shall be further reduced on such
Distribution Date by Realized Losses as provided in Section 4.05(b), and the
Uncertificated Principal Balances of REMIC 1 Regular Interest LT1F and REMIC 1
Regular Interest LT1L shall be increased by interest deferrals as provided in
Section 4.07. The Uncertificated Principal Balance of each REMIC Regular
Interest that has an Uncertificated Principal Balance shall never be less than
zero.

          Uncertificated REMIC 1 Pass-Through Rate: For any Distribution Date,
with respect to REMIC 1 Regular Interests LT-1, LT-2, LT-3, LT-4, LT-5, LT-6,
LT-7, LT-8, LT-9, LT-10, LT-11, LT-12, LT-13, LT-14, LT-15, LT-16, LT-17, LT-18,
LT-19, LT-20, LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27, LT-28, LT-29,
LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36, LT-37, LT-P and LT-R, a per
annum rate equal to the Net Rate Cap for such Distribution Date.

          Uncertificated REMIC 2 Pass-Through Rate: For any Distribution Date,
with respect to REMIC 2 Regular Interest MT-1, REMIC 2 Regular Interest MT-2,
REMIC 2 Regular Interest MT-3, REMIC 2 Regular Interest MT-4, REMIC 2 Regular
Interest MT-5, REMIC 2 Regular Interest MT-6, REMIC 2 Regular Interest MT-7 and
REMIC 2 Regular Interest MT-8, the Adjusted Net WAC Rate for such Distribution
Date. For any Distribution Date, with respect to REMIC 2

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<PAGE>

Regular Interests MT-P and MT-R, the weighted average of the Uncertificated
Pass-Through Rates for REMIC 1 Regular Interests LT-P and LT-R. For any
Distribution Date, with respect to REMIC 2 Regular Interest MT-IO, a per annum
rate equal to the excess, if any, of (A) the REMIC 1 Net Wac Rate over (B) the
excess, if any, of (i) the REMIC 1 Net Wac Rate over (ii) 7.00%.

          United States Person: A citizen or resident of the United States, a
corporation or a partnership (including an entity treated as a corporation or
partnership for United States federal income tax purposes) created or organized
in, or under the laws of, the United States or any State thereof or the District
of Columbia (except, in the case of a partnership, to the extent provided in
regulations) provided that, for purposes solely of the restrictions on the
transfer of Class A-R Certificates, no partnership or other entity treated as a
partnership for United States federal income tax purposes shall be treated as a
United States Person unless all persons that own an interest in such partnership
either directly or through any entity that is not a corporation for United
States federal income tax purposes are required to be United States Persons or
an estate whose income is subject to United States federal income tax regardless
of its source, or a trust if a court within the United States is able to
exercise primary supervision over the administration of the trust and one or
more such United States Persons have the authority to control all substantial
decisions of the trust. To the extent prescribed in regulations by the Secretary
of the Treasury, which have not yet been issued, a trust which was in existence
on August 20, 1996 (other than a trust treated as owned by the grantor under
subpart E of part I of subchapter J of chapter 1 of the Code), and which was
treated as a United States person on August 20, 1996 may elect to continue to be
treated as a United States Person notwithstanding the previous sentence.

          Vesta: Vesta Servicing, L.P., a Delaware limited partnership, formerly
known as Calmco Servicing L.P.

          Vesta Serviced Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

          Voting Rights: The portion of the voting rights of all the
Certificates that is allocated to any Certificate for purposes of the voting
provisions of this Agreement. At all times during the term of this Agreement,
97% of all Voting Interests shall be allocated among the Class A-1, Class A-2,
Class M-1, Class M-2, Class B-1 and Class B-2 Certificates. The portion of such
97% Voting Interests allocated to the Class A-1, Class A-2, Class M-1, Class
M-2, Class B-1 and Class B-2 Certificates shall be based on the fraction,
expressed as a percentage, the numerator of which is the aggregate Class
Principal Balance then outstanding and the denominator of which is the Class
Principal Balance of all such Classes then outstanding. The Class A-IO, Class P
and Class X-1 Certificates shall each be allocated 1% of the Voting Interest.
Voting Interests shall be allocated among the Certificates within each such
Class (other than the Class A-IO, Class P and Class X-1 Certificates, which each
have only one certificate) in accordance with their respective Percentage
Interests. The Class R shall have no voting rights.

          Wilshire: Wilshire Credit Corporation.

          Wilshire Serviced Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

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          SECTION 1.02 Interest Calculations.

          The calculation of the Trustee Fee, the Servicing Fee, the Loss
Mitigation Fee and interest on the Class A-IO, Class X-1 and Class B-2
Certificates and on the related Uncertificated Interests shall be made on the
basis of a 360-day year consisting of twelve 30-day months. The calculation of
interest on the Class A-1, Class A-2, Class M-1, Class M-2 and Class B-1
Certificates and the related Uncertificated Interests shall be made on the basis
of a 360-day year and the actual number of days elapsed in the related Interest
Accrual Period. All dollar amounts calculated hereunder shall be rounded to the
nearest penny with one-half of one penny being rounded down.

          SECTION 1.03 Allocation of Certain Interest Shortfalls.

          For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC 1 Regular Interests for any Distribution Date, the
aggregate amount of any Prepayment Interest Shortfalls (net of any Compensating
Interest Payment) and any Relief Act Interest Reductions incurred in respect of
the Mortgage Loans for any Distribution Date shall be allocated first to REMIC 1
Regular Interest LT-1 and then to REMIC 1 Regular Interests LT-2, LT-3, LT-4,
LT-5, LT-6, LT-7, LT-8, LT-9, LT-10, LT-11, LT-12, LT-13, LT-14, LT-15, LT-16,
LT-17, LT-18, LT-19, LT-20, LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27,
LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36, LT-37, LT-P and
LT-R, in each case to the extent of one month's interest at the then applicable
respective Uncertificated REMIC 1 Pass-Through Rate on the respective
Uncertificated Principal Balance of each such Uncertificated REMIC 1 Regular
Interest. For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC 2 Regular Interests for any Distribution Date, any
Prepayment Interest Shortfalls (to the extent not covered by Compensating
Interest) relating to the Mortgage Loans for any Distribution Date shall be
allocated first, to Uncertificated Accrued Interest payable to REMIC 2 Regular
Interest MT-1 and REMIC 2 Regular Interest MT-8 up to an aggregate amount equal
to the REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively, and
thereafter any remaining Prepayment Interest Shortfalls (to the extent not
covered by Compensating Interest) relating to the Mortgage Loans for any
Distribution Date shall be allocated among REMIC 2 Regular Interests MT-1, MT-2,
MT-3, MT-4, MT-5, MT-6, MT-7, MT-8, MT-R and MT-P, pro rata based on, and to the
extent of, Uncertificated Accrued Interest, as calculated without application of
this sentence.

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<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

          SECTION 2.01 Conveyance of Mortgage Loans.

          (a) The Depositor, concurrently with the execution and delivery
hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to the
Trustee in trust for the benefit of the Certificateholders, without recourse,
all (i) the right, title and interest of the Depositor (which does not include
servicing rights) in and to each Mortgage Loan, including all interest and
principal received or receivable on or with respect to such Mortgage Loans after
the Cut-off Date and all interest and principal payments on the Mortgage Loans
received prior to the Cut-off Date in respect of installments of interest and
principal due thereafter, but not including payments of principal and interest
due and payable on the Mortgage Loans on or before the Cut-off Date (other than
the rights of the Servicers to service the Mortgage Loans in accordance with
this Agreement), (ii) the Depositor's rights under the Assignment Agreement and
(iii) all proceeds of any of the foregoing.

          (b) In connection with the transfer and assignment set forth in clause
(a) above, the Depositor has delivered or caused to be delivered to the Trustee
or its designated agent, the Custodian, for the benefit of the
Certificateholders, the documents and instruments with respect to each Mortgage
Loan as assigned:

          (i) the original Mortgage Note of the Mortgagor in the name of the
     Trustee or endorsed "Pay to the order of ________________ without recourse"
     and signed in the name of the last named endorsee by an authorized officer,
     together with all intervening endorsements showing a complete chain of
     endorsements from the originator of the related Mortgage Loan to the last
     endorsee or (B) with respect to any Lost Mortgage Note (as such term is
     defined in the Pooling and Servicing Agreement), a lost note affidavit
     stating that the original Mortgage Note was lost or destroyed, together
     with a copy of such Mortgage Note;

          (ii) the original Mortgage bearing evidence that such instruments have
     been recorded in the appropriate jurisdiction where the Mortgaged Property
     is located as determined by DLJMC (or, in lieu of the original of the
     Mortgage or the assignment thereof, a duplicate or conformed copy of the
     Mortgage or the instrument of assignment, if any, together with a
     certificate of receipt from the Seller or the settlement agent who handled
     the closing of the Mortgage Loan, certifying that such copy or copies
     represent true and correct copy(ies) of the original(s) and that such
     original(s) have been or are currently submitted to be recorded in the
     appropriate governmental recording office of the jurisdiction where the
     Mortgaged Property is located) or a certification or receipt of the
     recording authority evidencing the same;

          (iii) the original Assignment of Mortgage, in blank, which assignment
     appears to be in form and substance acceptable for recording and, in the
     event that the related Seller acquired the Mortgage Loan in a merger, the
     assignment must be by "[Seller], successor by merger to [name of
     predecessor]", and in the event that the Mortgage Loan was acquired or

                                       53

<PAGE>

     originated by the related Seller while doing business under another name,
     the assignment must be by "[Seller], formerly known as [previous name]";

          (iv) the original of any intervening assignment of the Mortgage not
     included in (iii) above, including any warehousing assignment, with
     evidence of recording thereon (or, in lieu of the original of any such
     intervening assignment, a duplicate or conformed copy of such intervening
     assignment together with a certificate of receipt from the related Seller
     or the settlement agent who handled the closing of the Mortgage Loan,
     certifying that such copy or copies represent true and correct copy(ies) of
     the original(s) and that such original(s) have been or are currently
     submitted to be recorded in the appropriate governmental recording office
     of the jurisdiction where the Mortgaged Property is located) or a
     certification or receipt of the recording authority evidencing the same;

          (v) an original of any related security agreement (if such item is a
     document separate from the Mortgage) and the originals of any intervening
     assignments thereof showing a complete chain of assignment from the
     originator of the related Mortgage Loan to the last assignee;

          (vi) an original assignment of any related security agreement (if such
     item is a document separate from the Mortgage) executed by the last
     assignee in blank;

          (vii) the originals of any assumption, modification, extension or
     guaranty agreement with evidence of recording thereon, if applicable (or,
     in lieu of the original of any such agreement, a duplicate or conformed
     copy of such agreement together with a certificate of receipt from the
     related Seller or the settlement agent who handled the closing of the
     Mortgage Loan, certifying that such copy(ies) represent true and correct
     copy(ies) of the original(s) and that such original(s) have been or are
     currently submitted to be recorded in the appropriate governmental
     recording office of the jurisdiction where the Mortgaged Property is
     located), or a certification or receipt of the recording authority
     evidencing the same;

          (viii) if the Mortgage Note or Mortgage or any other document or
     instrument relating to the Mortgage Loan has been signed by a person on
     behalf of the Mortgagor, the original power of attorney or other instrument
     that authorized and empowered such person to sign bearing evidence that
     such instrument has been recorded, if so required, in the appropriate
     jurisdiction where the Mortgaged Property is located as determined by DLJMC
     (or, in lieu thereof, a duplicate or conformed copy of such instrument,
     together with a certificate of receipt from the related Seller or the
     settlement agent who handled the closing of the Mortgage Loan, certifying
     that such copy(ies) represent true and complete copy(ies)of the original(s)
     and that such original(s) have been or are currently submitted to be
     recorded in the appropriate governmental recording office of the
     jurisdiction where the Mortgaged Property is located) or a certification or
     receipt of the recording authority evidencing the same; and

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<PAGE>

          (ix) in the case of the First Mortgage Loans, the original mortgage
     title insurance policy, or copy of title commitment (or in appropriate
     jurisdictions, attorney's opinion of title and abstract of title).

          In the event the Seller delivers to the Trustee certified copies of
any document or instrument set forth in 2.01(b) because of a delay caused by the
public recording office in returning any recorded document, the Seller shall
deliver to the Trustee, within 60 days of the Closing Date, an Officer's
Certificate which shall (i) identify the recorded document, (ii) state that the
recorded document has not been delivered to the Trustee due solely to a delay
caused by the public recording office, and (iii) state the amount of time
generally required by the applicable recording office to record and return a
document submitted for recordation.

          In the event that in connection with any Mortgage Loan the Depositor
cannot deliver (a) the original recorded Mortgage, (b) all interim recorded
assignments or (c) the lender's title policy (together with all riders thereto)
satisfying the requirements set forth above, concurrently with the execution and
delivery hereof because such document or documents have not been returned from
the applicable public recording office in the case of clause (a) or (b) above,
or because the title policy has not been delivered to the Seller or the
Depositor by the applicable title insurer in the case of clause (c) above, the
Depositor shall promptly deliver to the Trustee, in the case of clause (a) or
(b) above, such original Mortgage or such interim assignment, as the case may
be, with evidence of recording indicated thereon upon receipt thereof from the
public recording office, or a copy thereof, certified, if appropriate, by the
relevant recording office.

          As promptly as practicable subsequent to such transfer and assignment,
and in any event, within thirty (30) days thereafter, each Servicer shall cause
(at the Depositor's expense) to (i) affix the Trustee's name to each Assignment
of Mortgage for the Mortgage Loans it is servicing, as the assignee thereof,
(ii) cause such assignment to be in proper form for recording in the appropriate
public office for real property records within thirty (30) days after receipt
thereof and (iii) cause to be delivered for recording in the appropriate public
office for real property records the assignments of the Mortgages to the
Trustee, except that, with respect to any assignment of a Mortgage as to which
the related Servicer has not received the information required to prepare such
assignment in recordable form, the related Servicer's obligation to do so and to
deliver the same for such recording shall be as soon as practicable after
receipt of such information and in any event within thirty (30) days after the
receipt thereof, and the related Servicer need not cause to be recorded (a) any
assignment which relates to a Mortgage Loan in any jurisdiction under the laws
of which, as evidenced by an Opinion of Counsel delivered by the related
Servicer (at the related Servicer's expense) to the Trustee within 20 days of
the Closing Date, acceptable to the Rating Agencies, the recordation of such
assignment is not necessary to protect the Trustee's and the Certificateholders'
interest in the related Mortgage Loan or (b) if MERS is identified on the
Mortgage or on a properly recorded assignment of the Mortgage as the mortgagee
of record solely as nominee for the Seller and its successors and assigns.

          In connection with the assignment of any Mortgage Loan registered on
the MERS(R) System, the Depositor further agrees that it will cause, at the
Depositor's own expense, on or prior to the Closing Date, the MERS(R) System to
indicate that such Mortgage Loans have been assigned by the Depositor to the
Trustee in accordance with this Agreement for the benefit of the

                                       55

<PAGE>

Certificateholders by including (or deleting, in the case of Mortgage Loans
which are repurchased in accordance with this Agreement) in such computer files
(a) the code "[IDENTIFY TRUSTEE SPECIFIC CODE]" in the field "[IDENTIFY THE
FIELD NAME FOR TRUSTEE]" which identifies the Trustee and (b) the code
"[IDENTIFY SERIES SPECIFIC CODE NUMBER]" in the field "Pool Field" which
identifies the series of the Certificates issued in connection with such
Mortgage Loans. The Depositor further agrees that it will not, and will not
permit either Servicer to, and each Servicer agrees that it will not, alter the
codes referenced in this paragraph with respect to any Mortgage Loan during the
term of this Agreement unless and until such Mortgage Loan is repurchased in
accordance with the terms of this Agreement.

          (c) The Trustee is authorized to appoint any bank or trust company
approved by the Depositor as Custodian of the documents or instruments referred
to in this Section 2.01, and to enter into a Custodial Agreement for such
purpose and any documents delivered thereunder shall be delivered to the
Custodian and any Officer's Certificates delivered with respect thereto shall be
delivered to the Trustee and the Custodian.

          (d) It is the express intent of the parties to this Agreement that the
conveyance of the Mortgage Loans by the Depositor to the Trustee as provided in
this Section 2.01 be, and be construed as, a sale of the Mortgage Loans by the
Depositor to the Trustee. It is, further, not the intention of the parties to
this Agreement that such conveyance be deemed a pledge of the Mortgage Loans by
the Depositor to the Trustee to secure a debt or other obligation of the
Depositor. However, in the event that, notwithstanding the intent of the parties
to this Agreement, the Mortgage Loans are held to be the property of the
Depositor, or if for any other reason this Agreement is held or deemed to create
a security interest in the Mortgage Loans then (a) this Agreement shall also be
deemed to be a security agreement within the meaning of Articles 8 and 9 of the
New York Uniform Commercial Code; (b) the conveyance provided for in this
Section 2.01 shall be deemed to be a grant by the Depositor to the Trustee for
the benefit of the Certificateholders of a security interest in all of the
Depositor's right, title and interest in and to the Mortgage Loans and all
amounts payable to the holders of the Mortgage Loans in accordance with the
terms thereof and all proceeds of the conversion, voluntary or involuntary, of
the foregoing into cash, instruments, securities or other property, including
without limitation all amounts, other than investment earnings, from time to
time held or invested in the Certificate Account, whether in the form of cash,
instruments, securities or other property; (c) the possession by the Trustee or
any Custodian of such items of property and such other items of property as
constitute instruments, money, negotiable documents or chattel paper shall be
deemed to be "in possession by the secured party" for purposes of perfecting the
security interest pursuant to Section 9-305 of the New York Uniform Commercial
Code; and (d) notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons holding such property,
shall be deemed notifications to, or acknowledgments, receipts or confirmations
from, financial intermediaries, bailees or agents (as applicable) of the Trustee
for the benefit of the Certificateholders for the purpose of perfecting such
security interest under applicable law (except that nothing in this clause (e)
shall cause any person to be deemed to be an agent of the Trustee for any
purpose other than for perfection of such security interests unless, and then
only to the extent, expressly appointed and authorized by the Trustee in
writing). The Depositor and the Trustee, upon directions from the Depositor,
shall, to the extent consistent with this Agreement, take such actions as may be
necessary to ensure that, if this Agreement were deemed to create a security
interest in the Mortgage Loans, such security interest would be deemed to be a
perfected security

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<PAGE>

interest of first priority under applicable law and will be maintained as such
throughout the term of this Agreement.

          SECTION 2.02 Acceptance by the Trustee.

          The Trustee acknowledges receipt by the Custodian of the documents
identified in the Initial Certification in the form annexed hereto as Exhibit G
and declares that the Custodian on its behalf holds and will hold the documents
delivered to the Custodian constituting the Mortgage Files, and that it or the
Custodian holds or will hold such other assets as are included in the Trust
Fund, in trust for the exclusive use and benefit of all present and future
Certificateholders. The Trustee acknowledges that it will maintain possession
through the Custodian of the Mortgage Notes in the State of Texas, unless
otherwise permitted by the Rating Agencies.

          The Custodian agrees to execute and deliver on the Closing Date to the
Depositor, the Seller, the Trustee and the Servicers an Initial Certification in
the form annexed hereto as Exhibit G. Based on its review and examination, and
only as to the documents identified in such Initial Certification, the Custodian
will acknowledge that such documents appear regular on their face and relate to
such Mortgage Loan. Neither the Trustee nor the Custodian shall be under any
duty or obligation to inspect, review or examine said documents, instruments,
certificates or other papers to determine that the same are genuine, enforceable
or appropriate for the represented purpose or that they have actually been
recorded in the real estate records or that they are other than what they
purport to be on their face.

          Not later than 90 days after the Closing Date, the Custodian is
required to deliver to the Depositor, the Seller, the Trustee and the Servicers
a Final Certification in the form annexed hereto as Exhibit H, with any
applicable exceptions noted thereon.

          If, in the course of such review, the Custodian finds any document
constituting a part of a Mortgage File which does not meet the requirements of
Section 2.01, the Custodian will list such as an exception in the Final
Certification; provided, however, that neither the Trustee nor the Custodian
shall make any determination as to whether (i) any endorsement is sufficient to
transfer all right, title and interest of the party so endorsing, as noteholder
or assignee thereof, in and to that Mortgage Note or (ii) any assignment is in
recordable form or is sufficient to effect the assignment of and transfer to the
assignee thereof under the mortgage to which the assignment relates.

          The Seller shall promptly correct or cure such defect within 90 days
from the date it was so notified of such defect and, if the Seller does not
correct or cure such defect within such period, the Seller shall either (a)
substitute for the related Mortgage Loan a Qualified Substitute Mortgage Loan,
which substitution shall be accomplished in the manner and subject to the
conditions set forth in Section 2.03, or (b) purchase such Mortgage Loan from
the Trustee within 90 days from the date the Seller was notified of such defect
in writing at the Repurchase Price of such Mortgage Loan; provided, however,
that in no event shall such substitution or repurchase occur more than 540 days
from the Closing Date, except that if the substitution or repurchase of a
Mortgage Loan pursuant to this provision is required by reason of a delay in
delivery of any documents by the appropriate recording office, then such
substitution or repurchase shall occur within 720 days from the Closing Date;
and further provided, that the Seller shall have no liability for recording any

                                       57

<PAGE>

Assignment of Mortgage in favor of the Trustee or for the Trustee's failure to
record such Assignment of Mortgage, and the Seller shall not be obligated to
repurchase or cure any Mortgage Loan solely as a result of the Trustee's failure
to record such Assignment of Mortgage. The Trustee shall deliver written notice
to each Rating Agency within 360 days from the Closing Date indicating each
Mortgage Loan (a) the Assignment of Mortgage which has not been returned by the
appropriate recording office or (b) as to which there is a dispute as to
location or status of such Mortgage Loan. Such notice shall be delivered every
90 days thereafter until the Assignment of Mortgage for the related Mortgage
Loan is returned to the Trustee or the dispute as to location or status has been
resolved. Any such substitution pursuant to (a) above shall not be effected
prior to the delivery to the Trustee of the Opinion of Counsel required by
Section 2.05 hereof, if any, and any substitution pursuant to (a) above shall
not be effected prior to the additional delivery to the Trustee of a Request for
Release substantially in the form of Exhibit M. No substitution is permitted to
be made in any calendar month after the Determination Date for such month. The
Repurchase Price for any such Mortgage Loan shall be deposited by the Seller in
the Certificate Account on or prior to the Business Day immediately preceding
such Distribution Date in the month following the month of repurchase and, upon
receipt of such deposit and certification with respect thereto in the form of
Exhibit M hereto, the Trustee shall release the related Mortgage File to the
Seller and shall execute and deliver at such entity's request such instruments
of transfer or assignment prepared by such entity, in each case without
recourse, as shall be necessary to vest in such entity, or a designee, the
Trustee's interest in any Mortgage Loan released pursuant hereto. In furtherance
of the foregoing, if the Seller is not a member of MERS and repurchases a
Mortgage Loan which is registered on the MERS(R) System, the Seller, at its own
expense and without any right of reimbursement, shall cause MERS to execute and
deliver an assignment of the Mortgage in recordable form to transfer the
Mortgage from MERS to the Seller and shall cause such Mortgage to be removed
from registration on the MERS(R) System in accordance with MERS' rules and
regulations.

          It is understood and agreed that the obligation of the Seller to cure,
substitute for or to repurchase any Mortgage Loan which does not meet the
requirements of Section 2.01 shall constitute the sole remedy respecting such
defect available to the Trustee, the Depositor and any Certificateholder against
the Seller.

          The Trustee shall pay to the Custodian from time to time reasonable
compensation for all services rendered by it hereunder or under the Custodial
Agreement, and the Trustee shall pay or reimburse the Custodian upon its request
for all reasonable expenses, disbursements and advances incurred or made by the
Custodian in accordance with any of the provisions of this Agreement or the
Custodial Agreement, except any such expense, disbursement or advance as may
arise from its negligence or bad faith.

          SECTION 2.03 Representations and Warranties of the Seller and
Servicers.

          (a) The Seller hereby makes the representations and warranties
applicable to it set forth in Schedule II hereto, and by this reference
incorporated herein, to the Depositor and the Trustee, as of the Closing Date,
or if so specified therein, as of the Cut-off Date or such other date as may be
specified.

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<PAGE>

          (b) Wilshire, in its capacity as Servicer, hereby makes the
representations and warranties applicable to it set forth in Schedule IIIA
hereto, and by this reference incorporated herein, to the Depositor and the
Trustee, as of the Closing Date, or if so specified therein, as of the Cut-off
Date or such other date as may be specified.

          (c) Vesta, in its capacity as Servicer, hereby makes the
representations and warranties set forth in Schedule IIIB hereto, and by this
reference incorporated herein, to the Depositor and the Trustee, as of the
Closing Date, or if so specified therein, as of the applicable Cut-off Date.

          (d) Each of Wilshire and Vesta, in their capacity as Servicer, will
use its reasonable efforts to become a member of MERS in good standing, and will
comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS.

          (e) The Seller hereby makes the representations and warranties set
forth in Schedule V as applicable hereto, and by this reference incorporated
herein, to the Trustee, as of the Closing Date, or if so specified therein, as
of the Cut-off Date or such other date as may be specified. (f) Upon discovery
by any of the parties hereto of a breach of a representation or warranty made
pursuant to Section 2.03(e) that materially and adversely affects the interests
of the Certificateholders in any Mortgage Loan, the party discovering such
breach shall give prompt notice thereof to the other parties. The Seller hereby
covenants that within 90 days of the earlier of its discovery or its receipt of
written notice from any party of a breach of any representation or warranty made
by it pursuant to Section 2.03(e) which materially and adversely affects the
interests of the Certificateholders in any Mortgage Loan sold by the Seller to
the Depositor, it shall cure such breach in all material respects, and if such
breach is not so cured, shall, (i) if such 90-day period expires prior to the
second anniversary of the Closing Date, remove such Mortgage Loan (a "Deleted
Mortgage Loan") from the Trust Fund and substitute in its place a Qualified
Substitute Mortgage Loan, in the manner and subject to the conditions set forth
in this Section; or (ii) repurchase the affected Mortgage Loan from the Trustee
at the Repurchase Price in the manner set forth below; provided, however, that
any such substitution pursuant to (i) above shall not be effected prior to the
delivery to the Trustee of the Opinion of Counsel required by Section 2.05
hereof, if any, and any such substitution pursuant to (i) above shall not be
effected prior to the additional delivery to the Trustee of a Request for
Release substantially in the form of Exhibit M and the Mortgage File for any
such Qualified Substitute Mortgage Loan. The Seller shall promptly reimburse the
Trustee for any actual out-of-pocket expenses reasonably incurred by the Trustee
in respect of enforcing the remedies for such breach. With respect to any
representation and warranties described in this Section which are made to the
best of a Seller's knowledge if it is discovered by the Depositor, the Seller or
the Trustee that the substance of such representation and warranty is inaccurate
and such inaccuracy materially and adversely affects the value of the related
Mortgage Loan or the interests of the Certificateholders therein,
notwithstanding the Seller's lack of knowledge with respect to the substance of
such representation or warranty, such inaccuracy shall be deemed a breach of the
applicable representation or warranty.

          With respect to any Qualified Substitute Mortgage Loan or Loans, the
Seller shall deliver to the Trustee for the benefit of the Certificateholders
the Mortgage Note, the Mortgage, the

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<PAGE>

related assignment of the Mortgage, and such other documents and agreements as
are required by Section 2.01(b), with the Mortgage Note endorsed and the
Mortgage assigned as required by Section 2.01. No substitution is permitted to
be made in any calendar month after the Determination Date for such month.
Scheduled Payments due with respect to Qualified Substitute Mortgage Loans in
the month of substitution shall not be part of the Trust Fund and will be
retained by the Seller on the next succeeding Distribution Date. For the month
of substitution, distributions to Certificateholders will include the monthly
payment due on any Deleted Mortgage Loan for such month and thereafter the
Seller shall be entitled to retain all amounts received in respect of such
Deleted Mortgage Loan. The Seller shall amend the Mortgage Loan Schedule for the
benefit of the Certificateholders to reflect the removal of such Deleted
Mortgage Loan and the substitution of the Qualified Substitute Mortgage Loan or
Loans and the Seller shall deliver the amended Mortgage Loan Schedule to the
Trustee. Upon such substitution, the Qualified Substitute Mortgage Loan or Loans
shall be subject to the terms of this Agreement in all respects, and the Seller
shall be deemed to have made with respect to such Qualified Substitute Mortgage
Loan or Loans, as of the date of substitution, the representations and
warranties made pursuant to Section 2.03(b) with respect to such Mortgage Loan.
Upon any such substitution and the deposit to the Certificate Account of the
amount required to be deposited therein in connection with such substitution as
described in the following paragraph, the Trustee shall release the Mortgage
File held for the benefit of the Certificateholders relating to such Deleted
Mortgage Loan to the Seller and shall execute and deliver at the Seller's
direction such instruments of transfer or assignment prepared by the Seller, in
each case without recourse, as shall be necessary to vest title in the Seller,
or its designee, the Trustee's interest in any Deleted Mortgage Loan substituted
for pursuant to this Section 2.03.

          For any month in which the Seller substitutes one or more Qualified
Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Trustee
shall determine the amount (if any) by which the aggregate principal balance of
all such Qualified Substitute Mortgage Loans as of the date of substitution is
less than the aggregate Stated Principal Balance of all such Deleted Mortgage
Loans (after application of the scheduled principal portion of the monthly
payments due in the month of substitution). The amount of such shortage (the
"Substitution Adjustment Amount") plus an amount equal to the aggregate of any
unreimbursed Advances with respect to such Deleted Mortgage Loans shall be
deposited in the Certificate Account by the Seller on or before the Business Day
immediately preceding the Distribution Date in the month succeeding the calendar
month during which the related Mortgage Loan became required to be repurchased
or replaced hereunder.

          In the event that the Seller shall have repurchased a Mortgage Loan,
the Repurchase Price therefor shall be deposited in the Certificate Account on
or before the Business Day immediately preceding the Distribution Date in the
month following the month during which the Seller became obligated hereunder to
repurchase or replace such Mortgage Loan and upon such deposit of the Repurchase
Price, the delivery of the Opinion of Counsel if required by Section 2.05 and
receipt of a Request for Release in the form of Exhibit M hereto, the Trustee
shall release the related Mortgage File held for the benefit of the
Certificateholders to such Person, and the Trustee shall execute and deliver at
such Person's direction such instruments of transfer or assignment prepared by
such Person, in each case without recourse, as shall be necessary to transfer
title from the Trustee. It is understood and agreed that the obligation under
this Agreement of any Person to cure, repurchase or substitute any Mortgage Loan
as to which a breach has occurred and is

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<PAGE>

continuing shall constitute the sole remedy against such Persons respecting such
breach available to Certificateholders, the Depositor or the Trustee on their
behalf.

     The representations and warranties made pursuant to this Section 2.03 shall
survive delivery of the respective Mortgage Files to the Trustee for the benefit
of the Certificateholders.

          SECTION 2.04 Representations and Warranties of the Depositor as to the
                       Mortgage Loans.

          The Depositor hereby represents and warrants to the Trustee with
respect to the Mortgage Loans that, as of the Closing Date, assuming good title
has been conveyed to the Depositor, the Depositor had good title to the Mortgage
Loans and Mortgage Notes, and did not encumber the Mortgage Loans during its
period of ownership thereof, other than as contemplated by the Agreement.

          It is understood and agreed that the representations and warranties
set forth in this Section 2.04 shall survive delivery of the Mortgage Files to
the Trustee.

          SECTION 2.05 Delivery of Opinion of Counsel in Connection with
                       Substitutions.

          Notwithstanding any contrary provision of this Agreement, no
substitution pursuant to Section 2.02 shall be made more than 90 days after the
Closing Date unless the Seller delivers to the Trustee an Opinion of Counsel,
which Opinion of Counsel shall not be at the expense of either the Trustee or
the Trust Fund, addressed to the Trustee, to the effect that such substitution
will not (i) result in the imposition of the tax on "prohibited transactions" on
the Trust Fund or contributions after the Startup Date, as defined in Sections
860F(a)(2) and 860G(d) of the Code, respectively, or (ii) cause any REMIC
created hereunder to fail to qualify as a REMIC at any time that any
Certificates are outstanding.

          SECTION 2.06 Execution and Delivery of Certificates.

          The Trustee (or the Custodian) acknowledges receipt of the items
described in Section 2.02 of this Agreement and the documents identified in the
Initial Certification in the form annexed hereto as Exhibit G and, concurrently
with such receipt, has executed and delivered to or upon the order of the
Depositor, the Certificates in authorized denominations evidencing directly or
indirectly the entire ownership of the Trust Fund. The Trustee agrees to hold
the Trust Fund and exercise the rights referred to above for the benefit of all
present and future Holders of the Certificates and to perform the duties set
forth in this Agreement to the best of its ability, to the end that the
interests of the Holders of the Certificates may be adequately and effectively
protected.

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<PAGE>

          SECTION 2.07 REMIC Matters.

          The Preliminary Statement sets forth the designations and "latest
possible maturity date" for federal income tax purposes of all interests created
hereby. The "Startup Day" for purposes of the REMIC Provisions shall be the
Closing Date. The REMIC 1 Regular Interests shall be designated as the "regular
interests." REMIC 2 Regular Interests shall be designated as the "regular
interests." The Class A, Class M, Class B, Class P and Class X Certificates
shall be designated as the "regular interests" in REMIC 3. The Class R
Certificates will represent beneficial ownership of three residual interests,
each of which will constitute the sole class of residual interests in each of
REMIC 1, REMIC 2 and REMIC 3. The Trustee shall not permit the creation of any
"interests" (within the meaning of Section 860G of the Code) in REMIC 1, REMIC 2
or REMIC 3 other than the Certificates or the Uncertificated REMIC Regular
Interests. The "tax matters person" with respect to each of REMIC 1, REMIC 2 and
REMIC 3 shall be the Trustee and the Trustee shall hold the related Tax Matters
Person Certificate in the manner provided under Treasury regulations section
1.860F-4(d) and Treasury regulations section 301.6231(a)(7)-1. The fiscal year
for each REMIC shall be the calendar year.

          SECTION 2.08 Covenants of each Servicer.

          Each Servicer hereby covenants to the Depositor and the Trustee that
no written information, certificate of an officer, statement furnished in
writing or written report delivered to the Depositor, any affiliate of the
Depositor or the Trustee and prepared by the Servicer pursuant to this Agreement
will contain any untrue statement of a material fact.

          SECTION 2.09 Conveyance of REMIC Regular Interests and Acceptance of
                       REMIC 1 by the Trustee; Issuance of Certificates.

          (a) The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest of the Depositor
in and to the REMIC 1 Regular Interests for the benefit of the Holder of the
REMIC 2 Regular Interests and the Holders of the Class R-2 Interest. The Trustee
acknowledges receipt of the REMIC 1 Regular Interests (each of which is
uncertificated) and declares that it holds and will hold the same in trust for
the exclusive use and benefit of the Holders of the REMIC 2 Regular Interests
and Holder of the Class R-2 Interest. The interests evidenced by the Class R-2
Interest, together with the REMIC 2 Regular Interests, constitute the entire
beneficial ownership interest in REMIC 2.

          (b) The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest of the Depositor
in and to the REMIC 2 Regular Interests for the benefit of the holders of the
Regular Certificates and the Class R-3 Interest. The Trustee acknowledges
receipt of the REMIC 2 Regular Interests (each of which is uncertificated) and
declares that it holds and will hold the same in trust for the exclusive use and
benefit of the holders of the Regular Certificates and the Class R-3 Interest.
The interests evidenced by the Class R-3 Interest, together with the Regular
Certificates, constitute the entire beneficial ownership interest in REMIC 3.

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<PAGE>

          (c) In exchange for the REMIC 2 Regular Interests and, concurrently
with the assignment to the Trustee thereof, pursuant to the written request of
the Depositor executed by an officer of the Depositor, the Trustee has executed,
authenticated and delivered to or upon the order of the Depositor, the Regular
Certificates in authorized denominations evidencing (together with the Class R-3
Interest) the entire beneficial ownership interest in REMIC 3.

          (d) Concurrently with (i) the assignment and delivery to the Trustee
of REMIC 1 (including the Residual Interest therein represented by the Class R-1
Interest) and the acceptance by the Trustee thereof, pursuant to Section 2.01,
Section 2.02 and Section 2.09(a); (ii) the assignment and delivery to the
Trustee of REMIC 2 (including the Residual Interest therein represented by the
Class R-2 Interest) and the acceptance by the Trustee thereof, pursuant to
Section 2.09(b) and (iii) the assignment and delivery to the Trustee of REMIC 3
(including the Residual Interest therein represented by the Class R-3 Interest)
and the acceptance by the Trustee thereof, pursuant to Section 2.09(c) the
Trustee, pursuant to the written request of the Depositor executed by an officer
of the Depositor, has executed, authenticated and delivered to or upon the order
of the Depositor, the Class R Certificates in authorized denominations
evidencing the Class R-1 Interest, the Class R-2 Interest and the Class R-3
Interest.

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<PAGE>

                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

          SECTION 3.01 Servicers to Service Mortgage Loans.

          For and on behalf of the Certificateholders, each Servicer shall
service and administer the Mortgage Loans in accordance with the terms of this
Agreement and with Accepted Servicing Practices. The obligations of each of
Wilshire and Vesta hereunder to service and administer the Mortgage Loans shall
be limited to the Wilshire Serviced Loans and the Vesta Serviced Loans,
respectively; and with respect to the duties and obligations of each Servicer,
references herein to "Mortgage Loans" or "related Mortgage Loans" shall be
limited to the Wilshire Serviced Loans (and the related proceeds thereof and
related REO Properties) in the case of Wilshire and the Vesta Serviced Loans
(and the related proceeds thereof and related REO Properties), in the case of
Vesta, and in no event shall any Servicer have any responsibility or liability
with respect to any of the other Mortgage Loans. Notwithstanding anything in
this Agreement, any Servicing Agreement or any Loss Mitigation Advisory
Agreement to the contrary, neither Servicer shall have any duty or obligation to
enforce any Loss Mitigation Advisory Agreement or to supervise, monitor or
oversee the activities of the Loss Mitigation Advisor under its Loss Mitigation
Advisory Agreement with respect to any action taken or not taken by a Servicer
pursuant to a recommendation of the Loss Mitigation Advisor. In connection with
such servicing and administration, each Servicer shall have full power and
authority, acting alone and/or through Subservicers as provided in Section 3.02
hereof, to do or cause to be done any and all things that it may deem necessary
or desirable in connection with such servicing and administration, including but
not limited to, the power and authority, subject to the terms hereof (i) to
execute and deliver, on behalf of the Certificateholders and the Trustee,
customary consents or waivers and other instruments and documents, (ii) to
consent to transfers of any Mortgaged Property and assumptions of the Mortgage
Notes and related Mortgages (but only in the manner provided in this Agreement),
(iii) to collect any Insurance Proceeds and other Liquidation Proceeds, and (iv)
to effectuate foreclosure or other conversion of the ownership of the Mortgaged
Property securing any Mortgage Loan; provided that a Servicer shall not take any
action that is inconsistent with or prejudices the interests of the Trust Fund
or the Certificateholders in any Mortgage Loan or the rights and interests of
the Depositor, the Trustee or the Certificateholders under this Agreement. The
Trustee will provide a limited power of attorney to each Servicer, prepared by
each Servicer and reasonably acceptable to the Trustee, to permit each Servicer
to act on behalf of the Trustee under this Agreement. Each Servicer hereby
indemnifies the Trustee for all costs and expenses incurred by the Trustee in
connection with the negligent or willful misuse of such power of attorney. Each
Servicer shall represent and protect the interests of the Trust Fund in the same
manner as it protects its own interests in mortgage loans in its own portfolio
in any claim, proceeding or litigation regarding a Mortgage Loan. Each Servicer
further is hereby authorized and empowered in its own name or in the name of the
Subservicer, when such Servicer or the Subservicer, as the case may be, believes
it is appropriate in its best judgment to register any Mortgage Loan on the
MERS(R) System, or cause the removal from the registration of any Mortgage Loan
on the MERS(R) System, to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of assignment and
other comparable instruments with respect to such assignment or re-recording of
a Mortgage in the name of MERS,

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<PAGE>

solely as nominee for the Trustee and its successors and assigns. Any expenses
incurred in connection with the actions described in the preceding sentence
shall be borne by the related Servicer in accordance with Section 3.14, with no
right of reimbursement; provided, that if, as a result of MERS discontinuing or
becoming unable to continue operations in connection with the MERS(R) System, it
becomes necessary to remove any Mortgage Loan from registration on the MERS(R)
System and to arrange for the assignment of the related Mortgages to the
Trustee, then any related expenses shall be reimbursable by the Trust Fund to
such Servicer. Notwithstanding the foregoing, subject to Section 3.05(a), the
Servicers shall not make or permit any modification, waiver or amendment of any
Mortgage Loan that would both constitute a sale or exchange of such Mortgage
Loan within the meaning of Section 1001 of the Code and any proposed, temporary
or final regulations promulgated thereunder (other than in connection with a
proposed conveyance or assumption of such Mortgage Loan that is treated as a
Principal Prepayment in Full pursuant to Section 3.10 hereof) which would cause
any of REMIC 1, REMIC 2 or REMIC 3 to fail to qualify as a REMIC. Without
limiting the generality of the foregoing, each Servicer, in its own name or in
the name of the Depositor and the Trustee, is hereby authorized and empowered by
the Depositor and the Trustee, when such Servicer believes it appropriate in its
reasonable judgment, to execute and deliver, on behalf of the Trustee, the
Depositor, the Certificateholders or any of them, any and all instruments of
satisfaction or cancellation, or of partial or full release or discharge and all
other comparable instruments, with respect to the Mortgage Loans, and with
respect to the Mortgaged Properties held for the benefit of the
Certificateholders. Each Servicer shall prepare and deliver to the Depositor
and/or the Trustee such documents requiring execution and delivery by either or
both of them as are necessary or appropriate to enable such Servicer to service
and administer the Mortgage Loans to the extent that such Servicer is not
permitted to execute and deliver such documents pursuant to the preceding
sentence. Upon receipt of such documents and a written request signed by an
authorized officer, the Depositor and/or the Trustee shall execute such
documents and deliver them to such Servicer.

          In accordance with the standards of the preceding paragraph, each
Servicer shall advance or cause to be advanced funds as necessary for the
purpose of effecting the payment of taxes and assessments on the Mortgaged
Properties, which advances shall be reimbursable in the first instance from
related collections from the Mortgagors pursuant to Section 3.06, and further as
provided in Section 3.08. The costs incurred by a Servicer, if any, in effecting
the timely payments of taxes and assessments on the Mortgaged Properties and
related insurance premiums shall not, for the purpose of calculating monthly
distributions to the Certificateholders, be added to the Stated Principal
Balances of the related Mortgage Loans, notwithstanding that the terms of such
Mortgage Loans so permit.

          Subject to Section 3.16, the Trustee shall execute, at the written
request of a Servicer, and furnish to such Servicer and any Subservicer such
documents as are necessary or appropriate to enable such Servicer or any
Subservicer to carry out their servicing and administrative duties hereunder,
and the Trustee hereby grants to each Servicer a power of attorney to carry out
such duties. The Trustee shall not be liable for the actions of the Servicers or
any Subservicers under such powers of attorney.

          If the Mortgage relating to a Mortgage Loan had a lien senior to the
Mortgage Loan on the related Mortgaged Property as of the Cut-off Date, then the
related Servicer, in such capacity,

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may consent to the refinancing of the prior senior lien, provided that the
following requirements are met:

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

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

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

          SECTION 3.02 Subservicing; Enforcement of the Obligations of
                       Subservicers.

          (a) The Mortgage Loans may be subserviced by a Subservicer on behalf
of the related Servicer in accordance with the servicing provisions of this
Agreement, provided that the Subservicer is a FNMA-approved lender or a FHLMC
seller/servicer in good standing. A Servicer may perform any of its servicing
responsibilities hereunder or may cause the Subservicer to perform any such
servicing responsibilities on its behalf, but the use by such Servicer of the
Subservicer shall not release such Servicer from any of its obligations
hereunder and such Servicer shall remain responsible hereunder for all acts and
omissions of the Subservicer as fully as if such acts and omissions were those
of such Servicer. Each Servicer shall pay all fees and expenses of any
Subservicer engaged by such Servicer from its own funds.

          Notwithstanding the foregoing, each Servicer shall be entitled to
outsource one or more separate servicing functions to a Person (each, an
"Outsourcer") that does not meet the eligibility requirements for a Subservicer,
so long as such outsourcing does not constitute the delegation of such
Servicer's obligation to perform all or substantially all of the servicing of
the related Mortgage Loans to such Outsourcer. In such event, the use by a
Servicer of any such Outsourcer shall not release such Servicer from any of its
obligations hereunder and such Servicer shall remain responsible hereunder for
all acts and omissions of such Outsourcer as fully as if such acts and omissions
were those of such Servicer, and such Servicer shall pay all fees and expenses
of the Outsourcer from such Servicer's own funds.

          (b) At the cost and expense of a Servicer, without any right of
reimbursement from the Depositor, Trustee, the Trust Fund, or the applicable
Collection Account, such Servicer shall be entitled to terminate the rights and
responsibilities of its Subservicer and arrange for any servicing
responsibilities to be performed by a successor Subservicer meeting the
requirements set forth in Section 3.02(a), provided, however, that nothing
contained herein shall be deemed to prevent or prohibit such Servicer, at such
Servicer's option, from electing to service the related Mortgage Loans itself.
In the event that a Servicer's responsibilities and duties under this Agreement
are terminated pursuant to Section 7.01, and if requested to do so by the
Trustee, such Servicer shall at its own cost and expense terminate the rights
and responsibilities of its Subservicer as soon as is

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reasonably possible. Each Servicer shall pay all fees, expenses or penalties
necessary in order to terminate the rights and responsibilities of its
Subservicer from such Servicer's own funds without any right of reimbursement
from the Depositor, Trustee, the Trust Fund, or the applicable Collection
Account.

          (c) Notwithstanding any of the provisions of this Agreement relating
to agreements or arrangements between a Servicer and its Subservicer, a Servicer
and its Outsourcer, or any reference herein to actions taken through the
Subservicer, the Outsourcer, or otherwise, no Servicer shall be relieved of its
obligations to the Depositor, Trustee or Certificateholders and shall be
obligated to the same extent and under the same terms and conditions as if it
alone were servicing and administering the related Mortgage Loans. Each Servicer
shall be entitled to enter into an agreement with its Subservicer and Outsourcer
for indemnification of such Servicer or Outsourcer, as applicable, by such
Subservicer and nothing contained in this Agreement shall be deemed to limit or
modify such indemnification.

          For purposes of this Agreement, a Servicer shall be deemed to have
received any collections, recoveries or payments with respect to the related
Mortgage Loans that are received by a related Subservicer or Outsourcer, as
applicable, regardless of whether such payments are remitted by the Subservicer
or Outsourcer, as applicable, to such Servicer.

          Any Subservicing Agreement and any other transactions or services
relating to the Mortgage Loans involving a Subservicer or an Outsourcer shall be
deemed to be between the Subservicer or an Outsourcer, and the related Servicer
alone, and the Depositor, the Trustee and the other Servicer shall have no
obligations, duties or liabilities with respect to a Subservicer including no
obligation, duty or liability of the Depositor and Trustee or the Trust Fund to
pay a Subservicer's fees and expenses.

          SECTION 3.03 [Reserved].

          SECTION 3.04 Trustee to Act as Servicer.

          (a) In the event that any Servicer shall for any reason no longer be a
Servicer hereunder (including by reason of an Event of Default), the Trustee or
its successor shall thereupon assume all of the rights and obligations of such
Servicer hereunder arising thereafter (except that the Trustee shall not be (i)
liable for losses of such Servicer pursuant to Section 3.09 hereof or any acts
or omissions of the related predecessor Servicer hereunder, (ii) obligated to
make Advances if it is prohibited from doing so by applicable law or (iii)
deemed to have made any representations and warranties of such Servicer
hereunder). Any such assumption shall be subject to Section 7.02 hereof.

          Each Servicer shall, upon request of the Trustee, but at the expense
of such Servicer, deliver to the assuming party all documents and records
relating to each Subservicing Agreement or substitute Subservicing Agreement and
the Mortgage Loans then being serviced thereunder and hereunder by such Servicer
and an accounting of amounts collected or held by it and otherwise use its best
efforts to effect the orderly and efficient transfer of the substitute
Subservicing Agreement to the assuming party.

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          (b) [reserved]

          SECTION 3.05 Collection of Mortgage Loans; Collection Accounts;
                       Certificate Account.

          (a) Continuously from the date hereof until the principal and interest
on all Mortgage Loans have been paid in full or such Mortgage Loans have become
Liquidated Mortgage Loans, each Servicer shall proceed in accordance with the
customary and usual standards of practice of prudent mortgage loan servicers to
collect all payments due under each of the related Mortgage Loans when the same
shall become due and payable to the extent consistent with this Agreement and
shall take special care with respect to Mortgage Loans for which a Servicer
collects escrow payments in ascertaining and estimating Escrow Payments and all
other charges that will become due and payable with respect to the Mortgage
Loans and the Mortgaged Properties, to the end that the installments payable by
the Mortgagors will be sufficient to pay such charges as and when they become
due and payable. Consistent with the terms of this Agreement, each Servicer may
also waive, modify or vary any term of any Mortgage Loan or consent to the
postponement of strict compliance with any such term or in any manner grant
indulgence to any Mortgagor if in such Servicer's determination such waiver,
modification, postponement or indulgence is not materially adverse to the
interests of the Certificateholders (taking into account any estimated Realized
Loss that might result absent such action); provided, however, that such
Servicer may not modify materially or permit any Subservicer to modify any
Mortgage Loan, including without limitation any modification that would change
the Mortgage Rate, forgive the payment of any principal or interest (unless in
connection with the liquidation of the related Mortgage Loan or except in
connection with prepayments to the extent that such reamortization is not
inconsistent with the terms of the Mortgage Loan), or extend the final maturity
date of such Mortgage Loan, unless such Mortgage Loan is in default or, in the
judgment of such Servicer, such default is reasonably foreseeable; and that no
such modification shall reduce the interest rate on a Mortgage Loan below the
rate at which the Servicing Fee with respect to such Mortgage Loan accrues. In
the event of any such arrangement, the related Servicer shall make Advances on
the related Mortgage Loan in accordance with the provisions of Section 4.01
during the scheduled period in accordance with the amortization schedule of such
Mortgage Loan without modification thereof by reason of such arrangements. Each
Servicer shall not be required to institute or join in litigation with respect
to collection of any payment (whether under a Mortgage, Mortgage Note or
otherwise or against any public or governmental authority with respect to a
taking or condemnation) if it reasonably believes that enforcing the provision
of the Mortgage or other instrument pursuant to which such payment is required
is prohibited by applicable law.

          (b) Each Servicer shall segregate and hold all funds collected and
received pursuant to a Mortgage Loan separate and apart from any of its own
funds and general assets and shall establish and maintain one or more Collection
Accounts, in the form of time deposit or demand accounts, titled "[Servicer's
name], in trust for the Holders of Credit Suisse First Boston Mortgage
Securities Corp., CSFB Mortgage Pass-Through Certificates, Series 2001-S18" or,
if established and maintained by a Subservicer on behalf of the related
Servicer, "[Subservicer's name], in trust for [Servicer's name]" or
"[Subservicer's name], as agent, trustee and/or bailee of principal and interest
custodial account for [Servicer's name], its successors and assigns, for various
owners of interest in [Servicer's name] mortgage-backed pools". Each Collection
Account shall be an Eligible Account.

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Any funds deposited in a Collection Account shall at all times be either
invested in Eligible Investments or shall be fully insured to the full extent
permitted under applicable law. Funds deposited in a Collection Account may be
drawn on by the applicable Servicer in accordance with Section 3.08.

          Each Servicer shall deposit in the Collection Account on a daily basis
and retain therein, the following collections remitted by Subservicers or
payments received by such Servicer and payments made by such Servicer subsequent
to the Cut-off Date, other than payments of principal and interest due on or
before the Cut-off Date:

          (i) all payments on account of principal on the Mortgage Loans,
     including all Principal Prepayments;

          (ii) all payments on account of interest on the Mortgage Loans
     adjusted to the per annum rate equal to the Mortgage Rate reduced by the
     related Servicing Fee Rate;

          (iii) all Liquidation Proceeds on the Mortgage Loans;

          (iv) all Insurance Proceeds on the Mortgage Loans including amounts
     required to be deposited pursuant to Section 3.09 (other than proceeds to
     be held in the Escrow Account and applied to the restoration or repair of
     the Mortgaged Property or released to the Mortgagor in accordance with
     Section 3.09);

          (v) all Advances made by such Servicer pursuant to Section 4.01;

          (vi) with respect to each Principal Prepayment on the Mortgage Loans,
     the Prepayment Interest Shortfall, if any, for the Prepayment Period. The
     aggregate of such deposits shall be made from such Servicer's own funds,
     without reimbursement therefor, up to a maximum amount per month equal to
     the Compensating Interest Payment, if any, for the Mortgage Loans and that
     Distribution Date;

          (vii) any amounts required to be deposited by such Servicer in respect
     of net monthly income from REO Property pursuant to Section 3.11; and

          (viii) any other amounts required to be deposited hereunder including
     all collected Prepayment Penalties.

          The foregoing requirements for deposit into each Collection Account
shall be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, Ancillary Income need not be deposited by such
Servicer into such Collection Account. In addition, notwithstanding the
provisions of this Section 3.05, each Servicer may deduct from amounts received
by it, prior to deposit to the applicable Collection Account, any portion of any
Scheduled Payment representing the applicable Servicing Fee. In the event that a
Servicer shall remit any amount not required to be remitted, it may at any time
withdraw or direct the institution maintaining the related Collection Account to
withdraw such amount from such Collection Account, any provision herein to the
contrary notwithstanding. Such withdrawal or direction may be accomplished

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by delivering written notice thereof to the Trustee or such other institution
maintaining such Collection Account which describes the amounts deposited in
error in such Collection Account. Each Servicer shall maintain adequate records
with respect to all withdrawals made by it pursuant to this Section. All funds
deposited in a Collection Account shall be held in trust for the
Certificateholders until withdrawn in accordance with Section 3.08.

          (c) On or prior to the Closing Date, the Trustee shall establish and
maintain, on behalf of the Certificateholders, the Certificate Account. The
Trustee shall, promptly upon receipt, deposit in the Certificate Account and
retain therein the following:

          (i) the aggregate amount remitted by each Servicer to the Trustee
     pursuant to Section 3.08(viii);

          (ii) any amount deposited by the Trustee pursuant to Section 3.05(e)
     in connection with any losses on Eligible Investments; and

          (iii) any other amounts deposited hereunder which are required to be
     deposited in the Certificate Account.

          In the event that a Servicer shall remit to the Trustee any amount not
required to be remitted, it may at any time direct the Trustee to withdraw such
amount from the Certificate Account, any provision herein to the contrary
notwithstanding. Such direction may be accomplished by delivering an Officer's
Certificate to the Trustee which describes the amounts deposited in error in the
Certificate Account. All funds deposited in the Certificate Account shall be
held by the Trustee in trust for the Certificateholders until disbursed in
accordance with this Agreement or withdrawn in accordance with Section 3.08(b).
In no event shall the Trustee incur liability for withdrawals from the
Certificate Account at the direction of a Servicer.

          (d) Each institution at which a Collection Account or the Certificate
Account is maintained shall either hold such funds on deposit uninvested or
shall invest the funds therein as directed in writing by the related Servicer
(in the case of a Collection Account) or the Trustee (in the case of the
Certificate Account), in Eligible Investments, which shall mature not later than
(i) in the case of a Collection Account, the second Business Day immediately
preceding the related Distribution Date and (ii) in the case of the Certificate
Account, the Business Day immediately preceding the Distribution Date and, in
each case, shall not be sold or disposed of prior to its maturity. All income
and gain net of any losses realized from any such balances or investment of
funds on deposit in a Collection Account shall be for the benefit of the related
Servicer as servicing compensation and shall be remitted to it monthly as
provided herein. The amount of any realized losses in a Collection Account
incurred in any such account in respect of any such investments shall promptly
be deposited by the related Servicer in the related Collection Account. The
Trustee in its fiduciary capacity shall not be liable for the amount of any loss
incurred in respect of any investment or lack of investment of funds held in a
Collection Account. All income and gain net of any losses realized from any such
investment of funds on deposit in the Certificate Account shall be for the
benefit of the Trustee as compensation and shall be remitted to it monthly as
provided herein. The amount of any realized losses in the Certificate Account
incurred in any such account in respect of any such investments shall promptly
be deposited by the Trustee in the Certificate Account.

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          (e) Each Servicer shall give notice to the Trustee, the Seller, each
Rating Agency and the Depositor of any proposed change of the location of the
related Collection Account prior to any change thereof. The Trustee shall give
notice to each Servicer, the Seller, each Rating Agency and the Depositor of any
proposed change of the location of the Certificate Account prior to any change
thereof.

          SECTION 3.06 Establishment of and Deposits to Escrow Accounts;
                       Permitted Withdrawals from Escrow Accounts; Payments of
                       Taxes, Insurance and Other Charges; Simple Interest
                       Excess Sub-Accounts; Deposits in Simple Interest Excess
                       Sub-Accounts.

          (a) To the extent required by the related Mortgage Note and not
violative of current law, the applicable Servicer shall segregate and hold all
funds collected and received pursuant to a Mortgage Loan constituting Escrow
Payments separate and apart from any of its own funds and general assets and
shall establish and maintain one or more Escrow Accounts, in the form of time
deposit or demand accounts, titled, "Credit Suisse First Boston Mortgage
Securities Corp., CSFB Mortgage Pass-Through Certificates, Series 2001-S18" or,
if established and maintained by a Subservicer on behalf of the related
Servicer, "[Subservicer's name], in trust for [Servicer's name]" or
"[Subservicer's name], as agent, trustee and/or bailee of taxes and insurance
custodial account for [Servicer's name], its successors and assigns, for various
owners of interest in [Servicer's name] mortgage-backed pools". The Escrow
Accounts shall be Eligible Accounts. Funds deposited in the Escrow Account may
be drawn on by the related Servicer in accordance with Section 3.06(b). The
creation of any Escrow Account shall be evidenced by a certification in the form
of Exhibit P-1 hereto, in the case of an account established with a Servicer, or
by a letter agreement in the form of Exhibit P-2 hereto, in the case of an
account held by a depository other than a Servicer. A copy of such certification
shall be furnished to the Depositor and Trustee.

          (b) Each Servicer shall deposit in its Escrow Account or Accounts on a
daily basis within one Business Day of receipt and retain therein:

          (i) all Escrow Payments collected on account of the related Mortgage
     Loans, for the purpose of effecting timely payment of any such items as
     required under the terms of this Agreement; and

          (ii) all amounts representing Insurance Proceeds which are to be
     applied to the restoration or repair of any Mortgaged Property.

          Each Servicer shall make withdrawals from the Escrow Account only to
effect such payments as are required under this Agreement, as set forth in
Section 3.06(d). Each Servicer shall be entitled to retain any interest paid on
funds deposited in the related Escrow Account by the depository institution,
other than interest on escrowed funds required by law to be paid to the
Mortgagor. To the extent required by law, the applicable Servicer shall pay
interest on escrowed funds to the Mortgagor notwithstanding that the Escrow
Account may be non-interest bearing or that interest paid thereon is
insufficient for such purposes.

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          (c) Withdrawals from the Escrow Account or Accounts may be made by the
related Servicer only:

          (i) to effect timely payments of ground rents, taxes, assessments,
     water rates, mortgage insurance premiums, condominium charges, fire and
     hazard insurance premiums or other items constituting Escrow Payments for
     the related Mortgage;

          (ii) to reimburse such Servicer for any Servicing Advances made by
     such Servicer pursuant to Section 3.06(e) with respect to a related
     Mortgage Loan, but only from amounts received on the related Mortgage Loan
     which represent late collections of Escrow Payments thereunder;

          (iii) to refund to any Mortgagor any funds found to be in excess of
     the amounts required under the terms of the related Mortgage Loan;

          (iv) for transfer to the related Collection Account to reduce the
     principal balance of the related Mortgage Loan in accordance with the terms
     of the related Mortgage and Mortgage Note;

          (v) for application to restore or repair of the related Mortgaged
     Property in accordance with the procedures outlined in Section 3.09(e);

          (vi) to pay to such Servicer, or any Mortgagor to the extent required
     by law, any interest paid on the funds deposited in such Escrow Account;
     and

          (vii) to clear and terminate such Escrow Account on the termination of
     this Agreement.

          (d) No later than the Closing Date, each Servicer shall establish and
maintain a sub-account of the Collection Account titled "[Servicer's name],
Simple Interest Excess Sub-Account in trust for the Holders of Credit Suisse
First Boston Mortgage Securities Corp., Mortgage Pass-Through Certificates,
Series 2001-S18". Each Servicer shall, on each Determination Date transfer from
the Collection Account to the Simple Interest Excess Sub-Account all Net Simple
Interest Excess, if any, pursuant to Section 3.08(a)(ix), and shall maintain a
record of all such deposits.

          (e) Each Servicer shall withdraw amounts on deposit in the applicable
Simple Interest Excess Sub-Account on each Determination Date for deposit to the
Certificate Account in an amount equal to the lesser of (i) the amount on
deposit therein, and (ii) the Net Simple Interest Shortfall for such
Distribution Date.

          (f) Each Servicer shall remit to the Trustee which shall thereupon
distribute to the Class X-1 Certificateholder 90% of the balance in the
applicable Simple Interest Excess Sub-Account on the Distribution Date each year
occurring in June, commencing in June 2002. Such distributions shall be deemed
to be made on a first-in, first-out basis. In addition, each Servicer shall

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clear and terminate each related Simple Interest Excess Sub-Account upon the
termination of this Agreement and retain any funds remaining therein.

          (g) Amounts on deposit in the Simple Interest Excess Sub-Accounts may
be invested in Eligible Investments. All income and gain net of any losses
realized from any such balances or investment of funds on deposit in a Simple
Interest Excess Sub-Account shall be for the benefit of the related Servicer as
servicing compensation and shall be remitted to it monthly. The amount of any
net investment losses in a Simple Interest Excess Sub-Account shall promptly be
deposited by the related Servicer in such Simple Interest Excess Sub-Account.

          SECTION 3.07 Access to Certain Documentation and Information Regarding
                       the Mortgage Loans; Inspections.

          (a) Each Servicer shall afford the Depositor and the Trustee
reasonable access to all records and documentation regarding the Mortgage Loans
and all accounts, insurance information and other matters relating to this
Agreement, such access being afforded without charge, but only upon reasonable
request and during normal business hours at the office designated by such
Servicer.

          (b) Each Servicer shall inspect the Mortgaged Properties as often as
deemed necessary by such Servicer in such Servicer's sole discretion, to assure
itself that the value of such Mortgaged Property is being preserved. In
addition, if any Mortgage Loan is more than 60 days delinquent, each Servicer
shall conduct subsequent inspections in accordance with Accepted Servicing
Practices or as may be required by the primary mortgage guaranty insurer. Each
Servicer shall keep a written or electronic report of each such inspection.

          SECTION 3.08 Permitted Withdrawals from the Collection Accounts and
                       Certificate Account.

          Each Servicer may from time to time make withdrawals from the related
Collection Account for the following purposes:

          (i) to pay to such Servicer (to the extent not previously retained by
     such Servicer) the servicing compensation to which it is entitled pursuant
     to Section 3.14, and to pay to such Servicer, as additional servicing
     compensation, earnings on or investment income with respect to funds in or
     credited to such Collection Account;

          (ii) to reimburse such Servicer for unreimbursed Advances made by it,
     such right of reimbursement pursuant to this subclause (ii) being limited
     to amounts received on the Mortgage Loan(s) in respect of which any such
     Advance was made (including without limitation, late recoveries of
     payments, Liquidation Proceeds and Insurance Proceeds to the extent
     received by such Servicer);

          (iii) to reimburse such Servicer for any Nonrecoverable Advance
     previously made from collections or proceeds of any of the Mortgage Loans;

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          (iv) to reimburse such Servicer for (A) unreimbursed Servicing
     Advances, such Servicer's right to reimbursement pursuant to this clause
     (A) with respect to any Mortgage Loan being limited to amounts received on
     such Mortgage Loan which represent late payments of principal and/or
     interest (including, without limitation, Liquidation Proceeds and Insurance
     Proceeds with respect to such Mortgage Loan) respecting which any such
     advance was made and (B) for unpaid Servicing Fees as provided in Section
     3.11 hereof;

          (v) to pay to the purchaser, with respect to each Mortgage Loan or
     property acquired in respect thereof that has been purchased pursuant to
     Section 2.02, 2.03 or 3.11, all amounts received thereon after the date of
     such purchase;

          (vi) to reimburse such Servicer or the Depositor for expenses incurred
     by any of them and reimbursable pursuant to Section 6.03 hereof;

          (vii) to withdraw any amount deposited in such Collection Account and
     not required to be deposited therein;

          (viii) on or prior to the Business Day immediately preceding each
     Distribution Date, to withdraw an amount equal to the Available Funds plus
     any related Expense Fees (other than the Servicing Fee) for such
     Distribution Date and any Prepayment Penalties received in respect of the
     Mortgage Loans, subject to the collection of funds included in the
     definition of "Available Funds" and remit such amount to the Trustee for
     deposit in the Certificate Account;

          (ix) to deposit to the Simple Interest Excess Sub-Account any amount
     required to be deposited therein pursuant to Section 3.06(f); and

          (x) to clear and terminate such Collection Account upon termination of
     this Agreement pursuant to Section 9.01 hereof.

          Each Servicer shall keep and maintain separate accounting, on a
Mortgage Loan basis for the purpose of justifying any withdrawal from the
Collection Account pursuant to such subclauses (i), (ii), (iv) and (v). Prior to
making any withdrawal from a Collection Account pursuant to subclause (iii), the
related Servicer shall deliver to the Trustee a certificate of a Servicing
Officer indicating the amount of any previous Advance determined by such
Servicer to be a Nonrecoverable Advance and identifying the related Mortgage
Loans(s), and their respective portions of such Nonrecoverable Advance.

          The Trustee shall withdraw funds from the Certificate Account for
distributions to Certificateholders and the Loss Mitigation Advisor, if
applicable, in the manner specified in this Agreement (and to withhold from the
amounts so withdrawn, the amount of any taxes that it is authorized to withhold
pursuant to the last paragraph of Section 8.11). In addition, the Trustee may
from time to time make withdrawals from the Certificate Account for the
following purposes:

          (i) to pay to itself the Trustee Fee and any investment income earned
     for the related Distribution Date;

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          (ii) to withdraw and return to the applicable Servicer for deposit to
     the Collection Account any amount deposited in the Certificate Account and
     not required to be deposited therein; and

          (iii) to clear and terminate the Certificate Account upon termination
     of this Agreement pursuant to Section 9.01 hereof.

          SECTION 3.09 Maintenance of Hazard Insurance and Mortgage Impairment
                       Insurance; Claims; Restoration of Mortgaged Property.

          Each Servicer shall obtain and maintain a blanket policy insuring
against losses arising from fire and hazards covered under extended coverage on
all of the related Mortgage Loans, which policy shall provide coverage in an
amount equal to the amount at least equal to the lesser of (i) the maximum
insurable value of the improvements securing such Mortgage Loan and (ii) the
greater of (A) the outstanding principal balance of the Mortgage Loan and (B) an
amount such that the proceeds of such policy shall be sufficient to prevent the
Mortgagor and/or the mortgagee from becoming co-insurer. Any amounts collected
by a Servicer under any such policy relating to a Mortgage Loan shall be
deposited in the related Collection Account subject to withdrawal pursuant to
Section 3.08. Such policy may contain a deductible clause, in which case, in the
event that there shall not have been maintained on the related Mortgaged
Property a standard hazard insurance policy, and there shall have been a loss
which would have been covered by such policy, the related Servicer shall deposit
in the related Collection Account at the time of such loss the amount not
otherwise payable under the blanket policy because of such deductible clause,
such amount to be deposited from such Servicer's funds, without reimbursement
therefor. Upon request of the Trustee, a Servicer shall cause to be delivered to
the Trustee a certified true copy of such policy and a statement from the
insurer thereunder that such policy shall in no event be terminated or
materially modified without 30 days' prior written notice to the Trustee. In
connection with its activities as Servicer of the Mortgage Loans, each Servicer
agrees to present, on behalf of itself, the Depositor, and the Trustee for the
benefit of the Certificateholders, claims under any such blanket policy.

          Pursuant to Section 3.05, any amounts collected by a Servicer under
any such policies (other than amounts to be deposited in the related Escrow
Account and applied to the restoration or repair of the related Mortgaged
Property, or property acquired in liquidation of the Mortgage Loan, or to be
released to the Mortgagor, in accordance with such Servicer's normal servicing
procedures) shall be deposited in the related Collection Account (subject to
withdrawal pursuant to Section 3.08).

          A Servicer need not obtain the approval of the Trustee prior to
releasing any Insurance Proceeds to the Mortgagor to be applied to the
restoration or repair of the Mortgaged Property if such release is in accordance
with Accepted Servicing Practices. At a minimum, each Servicer shall comply with
the following conditions in connection with any such release of Insurance
Proceeds:

          (i) such Servicer shall receive satisfactory independent verification
     of completion of repairs and issuance of any required approvals with
     respect thereto;

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          (ii) such Servicer shall take all steps necessary to preserve the
     priority of the lien of the Mortgage, including, but not limited to
     requiring waivers with respect to mechanics' and materialmen's liens; and

          (iii) pending repairs or restoration, such Servicer shall place the
     Insurance Proceeds in the related Escrow Account.

          If the Trustee is named as an additional loss payee, the related
Servicer is hereby empowered to endorse any loss draft issued in respect of such
a claim in the name of the Trustee.

          SECTION 3.10 Enforcement of Due-on-Sale Clauses; Assumption
                       Agreements.

          Each Servicer shall use its best efforts to enforce any "due-on-sale"
provision contained in any related Mortgage or Mortgage Note and to deny
assumption by the person to whom the Mortgaged Property has been or is about to
be sold whether by absolute conveyance or by contract of sale, and whether or
not the Mortgagor remains liable on the Mortgage and the Mortgage Note. When the
Mortgaged Property has been conveyed by the Mortgagor, the related Servicer
shall, to the extent it has knowledge of such conveyance, exercise its rights to
accelerate the maturity of such Mortgage Loan under the "due-on-sale" clause
applicable thereto, provided, however, that such Servicer shall not exercise
such rights if prohibited by law from doing so or if the exercise of such rights
would impair or threaten to impair any recovery under the related Primary
Insurance Policy, if any.

          If a Servicer reasonably believes it is unable under applicable law to
enforce such "due-on-sale" clause, such Servicer shall enter into (i) an
assumption and modification agreement with the person to whom such property has
been conveyed, pursuant to which such person becomes liable under the Mortgage
Note and the original Mortgagor remains liable thereon or (ii) in the event such
Servicer is unable under applicable law to require that the original Mortgagor
remain liable under the Mortgage Note and such Servicer has the prior consent of
the primary mortgage guaranty insurer, a substitution of liability agreement
with the purchaser of the Mortgaged Property pursuant to which the original
Mortgagor is released from liability and the purchaser of the Mortgaged Property
is substituted as Mortgagor and becomes liable under the Mortgage Note.
Notwithstanding the foregoing, a Servicer shall not be deemed to be in default
under this Section by reason of any transfer or assumption which such Servicer
reasonably believes it is restricted by law from preventing, for any reason
whatsoever. In connection with any such assumption, no material term of the
Mortgage Note, including without limitation, the Mortgage Rate borne by the
related Mortgage Note, the term of the Mortgage Loan or the outstanding
principal amount of the Mortgage Loan shall be changed.

          To the extent that any Mortgage Loan is assumable, the related
Servicer shall inquire diligently into the creditworthiness of the proposed
transferee, and shall use the underwriting criteria for approving the credit of
the proposed transferee which are used by FNMA with respect to underwriting
mortgage loans of the same type as the Mortgage Loans. If the credit of the
proposed transferee does not meet such underwriting criteria, the related
Servicer diligently shall, to the extent

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permitted by the Mortgage or the Mortgage Note and by applicable law, accelerate
the maturity of the Mortgage Loan.

          Subject to each Servicer's duty to enforce any due-on-sale clause to
the extent set forth in this Section 3.10, in any case in which a Mortgaged
Property has been conveyed to a Person by a Mortgagor, and such Person is to
enter into an assumption agreement or modification agreement or supplement to
the Mortgage Note or Mortgage that requires the signature of the Trustee, or if
an instrument of release signed by the Trustee is required releasing the
Mortgagor from liability on the Mortgage Loan, such Servicer shall prepare and
deliver or cause to be prepared and delivered to the Trustee for signature and
shall direct, in writing, the Trustee to execute the assumption agreement with
the Person to whom the Mortgaged Property is to be conveyed and such
modification agreement or supplement to the Mortgage Note or Mortgage or other
instruments as are reasonable or necessary to carry out the terms of the
Mortgage Note or Mortgage or otherwise to comply with any applicable laws
regarding assumptions or the transfer of the Mortgaged Property to such Person.
In connection with any such assumption, no material term of the Mortgage Note
may be changed. Together with each such substitution, assumption or other
agreement or instrument delivered to the Trustee for execution by it, the
related Servicer shall deliver an Officer's Certificate signed by a Servicing
Officer stating that the requirements of this Section 3.10 have been met in
connection therewith. The related Servicer shall notify the Trustee that any
such substitution or assumption agreement has been completed by forwarding to
the Trustee the original of such substitution or assumption agreement, which in
the case of the original shall be added to the related Mortgage File and shall,
for all purposes, be considered a part of such Mortgage File to the same extent
as all other documents and instruments constituting a part thereof. Any fee
collected by a Servicer for entering into an assumption or substitution of
liability agreement will be retained by such Servicer as additional servicing
compensation.

          SECTION 3.11 Realization Upon Defaulted Mortgage Loans; Repurchase of
                       Certain Mortgage Loans.

          (a) Each Servicer shall use reasonable efforts to foreclose upon or
otherwise comparably convert the ownership of properties securing such of the
related Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments.
With respect to such of the Mortgage Loans as come into and continue in default,
each Servicer will decide whether to (i) foreclose upon the Mortgaged Properties
securing such Mortgage Loans, (ii) write off the unpaid principal balance of the
Mortgage Loans as bad debt, (iii) take a deed in lieu of foreclosure, (iv)
accept a short sale (a payoff of the Mortgage Loan for an amount less than the
total amount contractually owed in order to facilitate a sale of the Mortgaged
Property by the Mortgagor) or permit a short refinancing (a payoff of the
Mortgage Loan for an amount less than the total amount contractually owed in
order to facilitate refinancing transactions by the Mortgagor not involving a
sale of the Mortgaged Property), (v) arrange for a repayment plan, or (vi) agree
to a modification in accordance with this Agreement. In connection with such
decision, the related Servicer shall take such action as (i) such Servicer would
take under similar circumstances with respect to a similar mortgage loan held
for its own account for investment, (ii) shall be consistent with Accepted
Servicing Practices, (iii) such Servicer shall determine consistently with
Accepted Servicing Practices to be in the best interest of the Trustee and
Certificateholders, and (iv) is consistent with the requirements of the insurer
under any Required

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Insurance Policy; provided, however, that such Servicer shall not be required to
expend its own funds in connection with any foreclosure or towards the
restoration of any property unless it shall determine (i) that such restoration
and/or foreclosure will increase the proceeds of liquidation of the related
Mortgage Loan after reimbursement to itself of such expenses and (ii) that such
expenses will be recoverable to it through Liquidation Proceeds (respecting
which it shall have priority for purposes of withdrawals from the related
Collection Account). The related Servicer shall be responsible for all other
costs and expenses incurred by it in any such proceedings; provided, however,
that it shall be entitled to reimbursement thereof from the liquidation proceeds
with respect to the related Mortgaged Property, as provided in the definition of
Liquidation Proceeds and as provided in Section 3.08(iv)(A). Notwithstanding the
foregoing, as to any Mortgage Loan that becomes 180 days delinquent, the related
Servicer will determine whether any net recovery is possible through foreclosure
proceedings or other liquidation of the related Mortgaged Property. If the
related Servicer determines that no such recovery is possible, it will be
obligated to charge off the related Mortgage Loan. Any Mortgage Loan that is
charged off will be released to the Class X-2 Certificateholders, and those
Holders will be entitled to any amounts subsequently received in respect of any
charged off Mortgage Loans. If the related Servicer decides to make Advances or
Servicing Advances on a Mortgage Loan that becomes 180 days delinquent, that
Servicer will notify the Loss Mitigation Advisor of that decision.

          Notwithstanding anything to the contrary contained in this Agreement,
in connection with a foreclosure or acceptance of a deed in lieu of foreclosure,
in the event the related Servicer has reasonable cause to believe that a
Mortgaged Property is contaminated by hazardous or toxic substances or wastes,
or if the Trustee otherwise requests, an environmental inspection or review of
such Mortgaged Property conducted by a qualified inspector shall be arranged for
by such Servicer. Upon completion of the inspection, the related Servicer shall
promptly provide the Trustee with a written report of environmental inspection.

          In the event the environmental inspection report indicates that the
Mortgaged Property is contaminated by hazardous or toxic substances or wastes,
the related Servicer shall not proceed with foreclosure or acceptance of a deed
in lieu of foreclosure if the estimated costs of the environmental clean up, as
estimated in the environmental inspection report, together with the Servicing
Advances made by such Servicer and the estimated costs of foreclosure or
acceptance of a deed in lieu of foreclosure exceeds the estimated value of the
Mortgaged Property. If however, the aggregate of such clean up and foreclosure
costs and Servicing Advances are less than or equal to the estimated value of
the Mortgaged Property, then the related Servicer may, in its reasonable
judgment and in accordance with Accepted Servicing Practices, choose to proceed
with foreclosure or acceptance of a deed in lieu of foreclosure and such
Servicer shall be reimbursed for all reasonable costs associated with such
foreclosure or acceptance of a deed in lieu of foreclosure and any related
environmental clean up costs, as applicable, from the related Liquidation
Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse
such Servicer, such Servicer shall be entitled to be reimbursed from amounts in
the related Collection Account pursuant to Section 3.08 hereof. In the event the
related Servicer does not proceed with foreclosure or acceptance of a deed in
lieu of foreclosure pursuant to the first sentence of this paragraph, such
Servicer shall be reimbursed for all Servicing Advances made with respect to the
related Mortgaged Property from the related Collection Account pursuant to
Section 3.08 hereof, and such Servicer shall have no further obligation to
service such Mortgage Loan under the provisions of this Agreement.

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          (b) With respect to any REO Property, the deed or certificate of sale
shall be taken in the name of the Trustee for the benefit of the
Certificateholders, or its nominee, on behalf of the Certificateholders. The
Trustee's name shall be placed on the title to such REO Property solely as the
Trustee hereunder and not in its individual capacity. The related Servicer shall
ensure that the title to such REO Property references this Agreement and the
Trustee's capacity hereunder. Pursuant to its efforts to sell such REO Property,
the related Servicer shall in accordance with Accepted Servicing Practices
manage, conserve, protect and operate each REO Property for the purpose of its
prompt disposition and sale. The related Servicer, either itself or through an
agent selected by such Servicer, shall manage, conserve, protect and operate the
REO Property in the same manner that it manages, conserves, protects and
operates other foreclosed property for its own account, and in the same manner
that similar property in the same locality as the REO Property is managed. The
related Servicer shall furnish to the Trustee on or before each Distribution
Date a statement with respect to any REO Property covering the operation of such
REO Property for the previous calendar month and such Servicer's efforts in
connection with the sale of such REO Property and any rental of such REO
Property incidental to the sale thereof for the previous calendar month. That
statement shall be accompanied by such other information as the Trustee shall
reasonably request and which is necessary to enable the Trustee to comply with
the reporting requirements of the REMIC Provisions. The net monthly rental
income, if any, from such REO Property shall be deposited in the related
Collection Account no later than the close of business on each Determination
Date. The related Servicer shall perform the tax reporting and withholding
required by Sections 1445 and 6050J of the Code with respect to foreclosures and
abandonments, the tax reporting required by Section 6050H of the Code with
respect to the receipt of mortgage interest from individuals and any tax
reporting required by Section 6050P of the Code with respect to the cancellation
of indebtedness by certain financial entities, by preparing such tax and
information returns as may be required, in the form required, and delivering the
same to the Trustee for filing.

          To the extent consistent with Accepted Servicing Practices, the
related Servicer shall also maintain on each REO Property fire and hazard
insurance with extended coverage in amount which is equal to the outstanding
principal balance of the related Mortgage Loan (as reduced by any amount applied
as a reduction of principal at the time of acquisition of the REO Property),
liability insurance and, to the extent required and available under the Flood
Disaster Protection Act of 1973, as amended, flood insurance in the amount
required above.

          (c) In the event that the Trust Fund acquires any Mortgaged Property
as aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the related Servicer shall dispose of such Mortgaged Property
prior to three years after the end of the calendar year of its acquisition by
the Trust Fund unless (i) the Trustee shall have been supplied with an Opinion
of Counsel to the effect that the holding by the Trust Fund of such Mortgaged
Property subsequent to such three-year period will not result in the imposition
of taxes on "prohibited transactions" of any REMIC hereunder as defined in
section 860F of the Code or cause any REMIC hereunder to fail to qualify as a
REMIC at any time that any Certificates are outstanding, in which case the Trust
Fund may continue to hold such Mortgaged Property (subject to any conditions
contained in such Opinion of Counsel) or (ii) the applicable Servicer shall have
applied for, prior to the expiration of such three-year period, an extension of
such three-year period in the manner contemplated by Section 856(e)(3) of the
Code, in which case the three-year period shall be extended by the applicable
extension period. Notwithstanding any other provision of this Agreement, no

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Mortgaged Property acquired by the Trust Fund shall be rented (or allowed to
continue to be rented) or otherwise used for the production of income by or on
behalf of the Trust Fund in such a manner or pursuant to any terms that would
(i) cause such Mortgaged Property to fail to qualify as "foreclosure property"
within the meaning of section 860G(a)(8) of the Code or (ii) subject any REMIC
hereunder to the imposition of any federal, state or local income taxes on the
income earned from such Mortgaged Property under Section 860G(c) of the Code or
otherwise, unless the related Servicer has agreed to indemnify and hold harmless
the Trust Fund with respect to the imposition of any such taxes.

          In the event of a default on a Mortgage Loan one or more of whose
obligor is not a United States Person, as that term is defined in Section
7701(a)(30) of the Code, in connection with any foreclosure or acquisition of a
deed in lieu of foreclosure (together, "foreclosure") in respect of such
Mortgage Loan, the related Servicer will cause compliance with the provisions of
Treasury Regulation Section 1.1445-2(d)(3) (or any successor thereto) necessary
to assure that no withholding tax obligation arises with respect to the proceeds
of such foreclosure except to the extent, if any, that proceeds of such
foreclosure are required to be remitted to the obligors on the Mortgage Loan.

          (d) The decision of a Servicer to foreclose on a defaulted Mortgage
Loan shall be subject to a determination by such Servicer that the proceeds of
such foreclosure would exceed the costs and expenses of bringing such a
proceeding. The income earned from the management of any REO Properties, net of
reimbursement to such Servicer for expenses incurred (including any property or
other taxes) in connection with such management and net of applicable accrued
and unpaid Servicing Fees, and unreimbursed Advances and Servicing Advances,
shall be applied to the payment of principal of and interest on the related
defaulted Mortgage Loans (with interest accruing as though such Mortgage Loans
were still current) and all such income shall be deemed, for all purposes in
this Agreement, to be payments on account of principal and interest on the
related Mortgage Notes and shall be deposited into the related Collection
Account. To the extent the net income received during any calendar month is in
excess of the amount attributable to amortizing principal and accrued interest
at the related Mortgage Rate on the related Mortgage Loan for such calendar
month, such excess shall be considered to be a partial prepayment of principal
of the related Mortgage Loan.

          No Servicer shall acquire any Mortgaged Property on behalf of any
REMIC created hereunder in connection with a default or imminent default on a
Foreclosure Restricted Loan, if acquiring title to the Mortgaged Property
underlying the loan would cause the adjusted basis, for federal income tax
purposes, of these Mortgaged Properties owned by the related REMIC after
foreclosure, along with any other assets owned by the related REMIC other than
"qualified mortgages" and "permitted investments" within the meaning of Section
860G of the Code, to exceed 0.75% of the adjusted basis of the assets of the
related REMIC. If the adjusted basis of such Mortgaged Properties in
foreclosure, along with any other assets owned by the related REMIC, other than
"qualified mortgages" and "permitted investments" with the meaning of Section
860G of the Code, exceed 1.0% of the adjusted basis of the assets of the related
REMIC immediately after the distribution of principal and interest on any
Distribution Date, the applicable Servicer will dispose of enough of such
Mortgaged Properties in foreclosure, for cash or otherwise, so that the adjusted
basis of such Mortgaged Properties in foreclosure, along with any other assets
owned by the related REMIC, other than "qualified mortgages" and "permitted
investments" within the meaning of Section

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860G of the Code, will be less than 1.0% of the adjusted basis of the assets of
the related REMIC. Each Servicer will provide notice to the other Servicer of
any Foreclosure Restricted Loan in order for the Servicers to make the
determinations set forth in this clause (d).

          (e) The proceeds from any liquidation of a Mortgage Loan, as well as
any income from an REO Property, will be applied in the following order of
priority: first, to reimburse the related Servicer for any related unreimbursed
Servicing Advances and Servicing Fees; second, to reimburse such Servicer for
any unreimbursed Advances; third, to reimburse the related Collection Account
for any Nonrecoverable Advances (or portions thereof) that were previously
withdrawn by such Servicer pursuant to Section 3.08(iii) that related to such
Mortgage Loan; fourth, to accrued and unpaid interest (to the extent no Advance
has been made for such amount or any such Advance has been reimbursed) on the
Mortgage Loan or related REO Property, at the per annum rate equal to the
related Mortgage Rate reduced by the related Servicing Fee Rate, to the Due Date
occurring in the month in which such amounts are required to be distributed; and
fifth, as a recovery of principal of the Mortgage Loan. Excess Proceeds, if any,
from the liquidation of a Liquidated Mortgage Loan will be retained by the
related Servicer as additional servicing compensation pursuant to Section 3.14.

          (f) [reserved].

          (g) The Class X-2 Certificateholder, at its option, may (but is not
obligated to) repurchase from the Trust Fund, (a) any related Mortgage Loan that
is delinquent in payment by three or more Scheduled Payments or (b) any related
Mortgage Loan with respect to which there has been initiated legal action or
other proceedings for the foreclosure of the related Mortgaged Property either
judicially or non-judicially. If it elects to make any such repurchase, the
Class X-2 Certificateholder shall repurchase such Mortgage Loan with its own
funds at a price equal to the Repurchase Price for such Mortgage Loan.

          SECTION 3.12 Trustee to Cooperate; Release of Mortgage Files.

          Upon the payment in full of any Mortgage Loan, or the receipt by a
Servicer of a notification that payment in full will be escrowed in a manner
customary for such purposes, such Servicer will immediately notify the Trustee
(or the Custodian, as the case may be) by delivering, or causing to be delivered
a "Request for Release" substantially in the form of Exhibit M. Upon receipt of
such request, the Trustee (or the Custodian, as the case may be) shall within
three Business Days release the related Mortgage File to the related Servicer,
and the Trustee shall within three Business Days of such Servicer's direction
execute and deliver to such Servicer the request for reconveyance, deed of
reconveyance or release or satisfaction of mortgage or such instrument releasing
the lien of the Mortgage in each case provided by such Servicer, together with
the Mortgage Note with written evidence of cancellation thereon. Each Servicer
is authorized to cause the removal from the registration on the MERS(R) System
of such Mortgage, if applicable, and to execute and deliver, on behalf of the
Trustee and the Certificateholders or any of them, any and all instruments of
satisfaction or cancellation or of partial or full release. Expenses incurred in
connection with any instrument of satisfaction or deed of reconveyance shall be
chargeable to the related Mortgagor to the extent permitted by law and otherwise
shall constitute a Servicing Advance. From time to time and as shall be
appropriate for the servicing or foreclosure of any Mortgage Loan,

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including for such purpose, collection under any policy of flood insurance, any
fidelity bond or errors or omissions policy, or for the purposes of effecting a
partial release of any Mortgaged Property from the lien of the Mortgage or the
making of any corrections to the Mortgage Note or the Mortgage or any of the
other documents included in the Mortgage File, the Trustee shall, within three
Business Days of delivery to the Trustee (or the Custodian, as the case may be)
of a Request for Release in the form of Exhibit M signed by a Servicing Officer,
release the Mortgage File to the related Servicer. Subject to the further
limitations set forth below, the related Servicer shall cause the Mortgage File
or documents so released to be returned to the Trustee (or the Custodian, as the
case may be) when the need therefor by such Servicer no longer exists, unless
the Mortgage Loan is liquidated and the proceeds thereof are deposited in the
related Collection Account, in which case such Servicer shall deliver to the
Trustee (or the Custodian, as the case may be) a Request for Release in the form
of Exhibit M, signed by a Servicing Officer.

          If a Servicer at any time seeks to initiate a foreclosure proceeding
in respect of any Mortgaged Property as authorized by this Agreement, such
Servicer shall deliver or cause to be delivered to the Trustee, for signature,
as appropriate, any court pleadings, requests for trustee's sale or other
documents necessary to effectuate such foreclosure or any legal action brought
to obtain judgment against the Mortgagor on the Mortgage Note or the Mortgage or
to obtain a deficiency judgment or to enforce any other remedies or rights
provided by the Mortgage Note or the Mortgage or otherwise available at law or
in equity.

          SECTION 3.13 Documents, Records and Funds in Possession of a Servicer
                       to be Held for the Trustee.

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

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          SECTION 3.14 Servicing Fee.

          As compensation for its services hereunder, each Servicer shall be
entitled to withdraw from the Collection Account or to retain from interest
payments on the related Mortgage Loans the amount of its Servicing Fee for each
Mortgage Loan, less any amounts in respect of its Servicing Fee payable by such
Servicer pursuant to Section 3.05(b)(vi). The Servicing Fee is limited to, and
payable solely from, the interest portion of such Scheduled Payments collected
by the related Servicer or as otherwise provided in Section 3.08.

          Additional servicing compensation in the form of Ancillary Income
shall be retained by the related Servicer. Each Servicer shall be required to
pay all expenses incurred by it in connection with its servicing activities
hereunder (including the payment of any expenses incurred in connection with any
Subservicing Agreement entered into pursuant to Section 3.02) and shall not be
entitled to reimbursement thereof except as specifically provided for in this
Agreement.

          SECTION 3.15 Access to Certain Documentation.

          Each Servicer shall provide to the OTS and the FDIC and to comparable
regulatory authorities supervising Holders of Subordinate Certificates and the
examiners and supervisory agents of the OTS, the FDIC and such other
authorities, access to the documentation regarding the related Mortgage Loans
required by applicable regulations of the OTS and the FDIC. Such access shall be
afforded without charge, but only upon reasonable and prior written request and
during normal business hours at the offices designated by such Servicer. Nothing
in this Section shall limit the obligation of any Servicer to observe any
applicable law prohibiting disclosure of information regarding the Mortgagors
and the failure of such Servicer to provide access as provided in this Section
as a result of such obligation shall not constitute a breach of this Section.
Nothing in this Section 3.15 shall require any Servicer to collect, create,
collate or otherwise generate any information that it does not generate in its
usual course of business.

          SECTION 3.16 Annual Statement as to Compliance.

          Each Servicer shall deliver to the Depositor, the Rating Agencies and
the Trustee on or before 120 days after the end of such Servicer's fiscal year,
commencing after its 2001 fiscal year, an Officer's Certificate stating, as to
the signer thereof, that (i) a review of the activities of such Servicer during
the preceding calendar year and of the performance of such Servicer under this
Agreement has been made under such officer's supervision, and (ii) to the best
of such officer's knowledge, based on such review, such Servicer has materially
fulfilled all its obligations under this Agreement throughout such year, or, if
there has been a material default in the fulfillment of any such obligation,
specifying each such default known to such officer and the nature and status
thereof and the action being taken by such Servicer to cure such default.

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          SECTION 3.17 Annual Independent Public Accountants' Servicing
                       Statement; Financial Statements.

          On or before 120 days after the end of each Servicer's fiscal year,
commencing after its 2001 fiscal year, each Servicer at its expense shall cause
a nationally or regionally recognized firm of independent public accountants
(who may also render other services to such Servicer, the Seller or any
affiliate thereof) which is a member of the American Institute of Certified
Public Accountants to furnish a statement to the Trustee and the Depositor to
the effect that such firm has examined certain documents and records relating to
the servicing of mortgage loans which such Servicer is servicing, including the
related Mortgage Loans, and that, on the basis of such examination, conducted
substantially in compliance with the Uniform Single Attestation Program for
Mortgage Bankers or the Audit Guide for HUD Approved Title II Approved
Mortgagees and Loan Correspondent Programs, nothing has come to their attention
which would indicate that such servicing has not been conducted in compliance
with Accepted Servicing Practices, except for (a) such exceptions as such firm
shall believe to be immaterial, and (b) such other exceptions as shall be set
forth in such statement. In rendering such statement, such firm may rely, as to
matters relating to direct servicing of mortgage loans by Subservicers, upon
comparable statements for examinations conducted substantially in compliance
with the Uniform Single Attestation Program for Mortgage Bankers or the Audit
Guide for HUD Approved Title II Approved Mortgagees and Loan Correspondent
Programs (rendered within one year of such statement) of independent public
accountants with respect to the related Subservicer. Copies of such statement
shall be provided by the Trustee to any Certificateholder upon request at the
related Servicer's expense, provided such statement is delivered by such
Servicer to the Trustee.

          SECTION 3.18 Maintenance of Fidelity Bond and Errors and Omissions
                       Insurance.

          Each Servicer shall maintain with responsible companies, at its own
expense, a blanket Fidelity Bond and an Errors and Omissions Insurance Policy,
with broad coverage on all officers, employees or other persons acting in any
capacity requiring such persons to handle funds, money, documents or papers
relating to the related Mortgage Loans ("Servicer Employees"). Any such Fidelity
Bond and Errors and Omissions Insurance Policy shall be in the form of the
Financial Institution Bond Form 22 - Fidelity Bond American International
Specialty Lines Insurance Policy Form ("5713 5/93") Mortgage Banker Broker E&O
and shall protect and insure the related Servicer against losses, including
forgery, theft, embezzlement, fraud, errors and omissions and negligent acts of
the Servicer Employees. Such Fidelity Bond and Errors and Omissions Insurance
Policy also shall protect and insure each Servicer against losses in connection
with the release or satisfaction of a related Mortgage Loan without having
obtained payment in full of the indebtedness secured thereby. No provision of
this Section 3.18 requiring such Fidelity Bond and Errors and Omissions
Insurance Policy shall diminish or relieve a Servicer from its duties and
obligations as set forth in this Agreement. The minimum coverage under any such
bond and insurance policy shall be at least equal to the corresponding amounts
required by FNMA. Upon the request of the Trustee, the related Servicer shall
cause to be delivered to the Trustee a certificate of insurance of the insurer
and the surety including a statement from the surety and the insurer that such
fidelity bond and insurance policy shall in no event be terminated or materially
modified without 30 days' prior written notice to the Trustee.

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          SECTION 3.19 Duties of the Loss Mitigation Advisor.

          The Depositor appoints The Murrayhill Company as Loss Mitigation
Advisor. For and on behalf of the Depositor, and the Trustee, the Loss
Mitigation Advisor will provide reports and recommendations concerning Mortgage
Loans that are past due, as to which there has been commencement of foreclosure,
as to which there has been forbearance in exercise of remedies which are in
default, as to which obligor is the subject of bankruptcy, receivership, or an
arrangement of creditors, or as to which have become REO Properties. Such
reports and recommendations will be based upon information provided to the Loss
Mitigation Advisor pursuant to the Loss Mitigation Advisory Agreement and the
Loss Mitigation Advisor shall look solely to the related Servicer for all
information and data (including loss and delinquency information and data) and
loan level information and data relating to the servicing of the Mortgage Loans.
If the Loss Mitigation Advisor is no longer able to perform its duties
hereunder, the Depositor shall terminate the Loss Mitigation Advisor and cause
the appointment of a successor Loss Mitigation Advisor. Upon any termination of
the Loss Mitigation Advisor or the appointment of a successor Loss Mitigation
Advisor, the Depositor shall give written notice thereof to the Seller, the
Servicers, the Trustee and each Rating Agency. Notwithstanding the foregoing,
the termination of the Loss Mitigation Advisor pursuant to this Section 3.19
shall not become effective until the appointment of a successor Loss Mitigation
Advisor.

          SECTION 3.20 Limitation Upon Liability of the Loss Mitigation Advisor.

          Neither the Loss Mitigation Advisor, nor any of the directors,
officers, employees or agents of the Loss Mitigation Advisor, shall be under any
liability to the Trustee, the Certificateholders or the Depositor for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, in reliance upon information provided by a Servicer under the
Loss Mitigation Advisory Agreements or of errors in judgment; provided, however,
that this provision shall not protect the Loss Mitigation Advisor or any such
person against liability that would otherwise be imposed by reason of willful
malfeasance, bad faith or gross negligence in its performance of its duties
under this Agreement or the Loss Mitigation Advisor Agreements. The Loss
Mitigation Advisor and any director, officer, employee or agent of the Loss
Mitigation Advisor may rely in good faith on any document of any kind prima
facie properly executed and submitted by any Person respecting any matters
arising hereunder, and may rely in good faith upon the accuracy of information
furnished by any Servicer pursuant to the Loss Mitigation Advisory Agreements in
the performance of its duties thereunder and hereunder.

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                                   ARTICLE IV

                                DISTRIBUTIONS AND
                            ADVANCES BY THE SERVICERS

          SECTION 4.01 Advances by the Servicers.

          Each Servicer shall deposit in a Collection Account an amount equal to
(i) with respect to the Mortgage Loans other than the Simple Interest Mortgage
Loans, all Scheduled Payments (with interest at the Mortgage Rate less the
Servicing Fee Rate) which were due on the related Mortgage Loans during the
applicable Due Period and (ii) with respect to the Simple Interest Mortgage
Loans, 30 day's interest on each such Mortgage Loan, less the Servicing Fee;
provided however, that with respect to any Balloon Loan that is delinquent on
its maturity date, the related Servicer will not be required to advance the
related balloon payment but will be required to continue to make Advances in
accordance with this Section 4.01 with respect to such Balloon Loan in an amount
equal to an assumed scheduled payment that would otherwise be due based on the
original amortization schedule for that Mortgage Loan (with interest at the
Mortgage Rate less the Servicing Fee Rate). Each Servicer's obligation to make
such Advances as to any related Mortgage Loan will continue through the last
Scheduled Payment due prior to the payment in full of such Mortgage Loan, or
through the date that the related Mortgaged Property has, in the judgment of
such Servicer, been completely liquidated.

          Each Servicer shall be obligated to make Advances in accordance with
the provisions of this Agreement; provided however, that such obligation with
respect to any related Mortgage Loan shall cease if such Servicer determines, in
its reasonable opinion, that Advances with respect to such Mortgage Loan are
Nonrecoverable Advances; provided that the related Servicer will be required to
make Advances at least until the time at which the related Mortgage Loan becomes
120 days delinquent. In the event that such Servicer determines that any such
Advances are Nonrecoverable Advances, such Servicer shall provide the Trustee
with a certificate signed by a Servicing Officer evidencing such determination.

          If an Advance is required to be made hereunder, the related Servicer
shall on the second Business Day immediately preceding the Distribution Date
immediately following the related Determination Date either (i) deposit in the
related Collection Account from its own funds an amount equal to such Advance,
(ii) cause to be made an appropriate entry in the records of the Collection
Account that funds in such account being held for future distribution or
withdrawal have been, as permitted by this Section 4.01, used by the related
Servicer to make such Advance or (iii) make Advances in the form of any
combination of clauses (i) and (ii) aggregating the amount of such Advance. Any
such funds being held in a Collection Account for future distribution and so
used shall be replaced by the related Servicer from its own funds by deposit in
such Collection Account on or before any future Distribution Date in which such
funds would be due.

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          SECTION 4.02 Priorities of Distribution.

          (a) On each Distribution Date, prior to making distributions to the
holders of the Certificates, the Trustee first, shall pay itself the Trustee's
Fee for such Distribution Date, and second, shall pay the Loss Mitigation
Advisor the Loss Mitigation Fee.

          (b) With respect to the Available Funds, on each Distribution Date,
the Trustee shall withdraw such Available Funds from the Certificate Account and
apply such funds to distributions on the Certificates in the following order and
priority and, in each case, to the extent of such Available Funds remaining:

          (i) On each Distribution Date, the Trustee shall distribute the
     Interest Remittance Amount for such date in the following order of
     priority:

          A.   to the Senior Certificates, pro rata, Current Interest and any
               Carryforward Interest for each such Class and such Distribution
               Date;

          B.   to the Class M-1 Certificates, Current Interest and any
               Carryforward Interest for such Class and such Distribution Date;

          C.   to the Class M-2 Certificates, Current Interest and any
               Carryforward Interest for such Class and such Distribution Date;

          D.   to the Class B-1 Certificates, Current Interest and any
               Carryforward Interest for such Class and such Distribution Date;

          E.   to the Class B-2 Certificates, Current Interest and any
               Carryforward Interest, calculated using a Pass-Through Rate equal
               to the Class B-2 Capped Pass- Through Rate, for such Class and
               such Distribution Date;

          F.   from amounts otherwise distributable to the Class X-1
               Certificates, to the Class B-2 Certificates, Current Interest and
               any Carryforward Interest at a rate equal to the excess, if any,
               of the Class B-2 Pass-Through Rate over the Class B-2 Capped
               Pass-Through Rate, for such Class and such Distribution Date;

          G.   for application as part of Monthly Excess Cashflow for such
               Distribution Date as provided in clause (iv) of this Section
               4.02(b), any Interest Remittance Amount remaining after
               application pursuant to clauses A. through F. above.

          (ii) On each Distribution Date (a) prior to the Stepdown Date or (b)
     with respect to which a Trigger Event has occurred, the Trustee shall
     distribute the Principal Payment Amount for such date in the following
     order of priority:

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          A.   commencing on the Distribution Date in August 2006 or thereafter,
               to the Class P Certificates, until the Class Principal Balance of
               such class has been reduced to zero;

          B.   first to the Class R Certificates, until the Class Principal
               Balance thereof is reduced to zero and then concurrently to the
               Class A-1 and Class A-2 Certificates in the manner described in
               Section 4.02(c), until the Class Principal Balance of each such
               Class has been reduced to zero;

          C.   to the Class M-1 Certificates, until the Class Principal Balance
               of such Class has been reduced to zero;

          D.   to the Class M-2 Certificates, until the Class Principal Balance
               of such Class has been reduced to zero;

          E.   to the Class B-1 Certificates, until the Class Principal Balance
               of such Class has been reduced to zero;

          F.   to the Class B-2 Certificates, until the Class Principal Balance
               of such Class has been reduced to zero; and

          G.   for application as part of Monthly Excess Cashflow for such
               Distribution Date, as provided in clause (iv) of this Section
               4.02(b), any Principal Payment Amount remaining after application
               pursuant to clauses A. through F. above.

          (iii) On each Distribution Date (a) on or after the Stepdown Date and
     (b) with respect to which a Trigger Event has not occurred, the Trustee
     shall distribute the Principal Payment Amount for such date in the
     following order of priority:

          A.   commencing on the Distribution Date in August 2006 or thereafter,
               to the Class P Certificates, until the Class Principal Balance of
               such class has been reduced to zero;

          B.   concurrently, to the Class A-1 and Class A-2 Certificates, the
               Senior Principal Payment Amount for such Distribution Date in the
               manner described in Section 4.02(c), until the Class Principal
               Balance of each such Class has been reduced to zero;

          C.   to the Class M-1 Certificates, the Class M-1 Principal Payment
               Amount for such Distribution Date, until the Class Principal
               Balance of such Class has been reduced to zero;

          D.   to the Class M-2 Certificates, the Class M-2 Principal Payment
               Amount for such Distribution Date, until the Class Principal
               Balance of such Class has been reduced to zero;

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          E.   to the Class B-1 Certificates, the Class B-1 Principal Payment
               Amount for such Distribution Date, until the Class Principal
               Balance of such Class has been reduced to zero; and

          F.   to the Class B-2 Certificates, the Class B-2 Principal Payment
               Amount for such Distribution Date, until the Class Principal
               Balance of such Class has been reduced to zero; and

          G.   for application as part of Monthly Excess Cashflow for such
               Distribution Date, as provided in clause (iv) of this Section
               4.02(b), any Principal Payment Amount remaining after application
               pursuant to clauses A. through F. above.

          (iv) On each Distribution Date, except for the first Distribution
     Date, the Trustee shall distribute the Monthly Excess Cashflow for such
     date in the following order of priority:

          A.   (I) except for the first Distribution Date, until the
               Overcollateralization Amount equals the Targeted
               Overcollateralization Amount for such date, on each Distribution
               Date (a) prior to the Stepdown Date or (b) with respect to which
               a Trigger Event has occurred, to the extent of Monthly Excess
               Interest for such Distribution Date, to the Certificates, in the
               following order of priority:

               (aa) first to the Class R and then, concurrently, to the Class
                    A-1 and Class A-2 Certificates, with the aggregate amount
                    distributable to the Class A-1 and Class A-2 Certificates
                    under this clause (I)(aa) allocated between such Classes as
                    described below, until the Class Principal Balance of each
                    such Class has been reduced to zero;

               (bb) to the Class M-1 Certificates, until the Class Principal
                    Balance of such Class has been reduced to zero;

               (cc) to the Class M-2 Certificates, until the Class Principal
                    Balance of such Class has been reduced to zero;

               (dd) to the Class B-1 Certificates, until the Class Principal
                    Balance of such Class has been reduced to zero; and

               (ee) to the Class B-2 Certificates, until the Class Principal
                    Balance of such Class has been reduced to zero.

               (II) on each Distribution Date on or after the Stepdown Date and
                    with respect to which a Trigger Event has not occurred, to
                    fund any principal distributions required to be made on such
                    Distribution Date set forth above in clause (iii) above,
                    after giving effect to the distribution of the Principal
                    Payment Amount for such Distribution Date, in accordance
                    with the priorities set forth therein, with the

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                    aggregate amount distributable to the Class A-1 and Class
                    A-2 Certificates under this clause (II) allocated between
                    such Classes as described below;

          B.   to the Class M-1 Certificates, any Deferred Amount for such
               Class, with interest thereon at the Pass-Through Rate;

          C.   to the Class M-2 Certificates, any Deferred Amount for such
               Class, with interest thereon at the Pass-Through Rate;

          D.   to the Class B-1 Certificates, any Deferred Amount for such
               Class, with interest thereon at the Pass-Through Rate;

          E.   to the Class B-1 Certificates, any Deferred Amount for such
               Class, with interest thereon at the Pass-Through Rate;

          F.   from amounts otherwise distributable to the Class X-1
               Certificate, to the Class A-1 and Class A-2 Certificates, any
               applicable Basis Risk Shortfall for such Classes (subject to the
               limitation below as to the Class A-1 Certificates);

          G.   from amounts otherwise distributable to the Class X-1
               Certificate, to the Class M-1 Certificates, any applicable Basis
               Risk Shortfall for such Class;

          H.   from amounts otherwise distributable to the Class X-1
               Certificate, to the Class M-2 Certificates, any applicable Basis
               Risk Shortfall for such Class;

          I.   from amounts otherwise distributable to the Class X-1
               Certificate, to the Class B-1 Certificates, any applicable Basis
               Risk Shortfall for such Class;

          J.   from amounts otherwise distributable to the Class X-1
               Certificate, to the Reserve Fund, the Required Basis Risk Reserve
               Fund Deposit;

          K.   to the Class X-1 Certificate, the Class X-1 Distributable Amount
               for such Distribution Date reduced by amounts distributed
               pursuant to clause F of Section 4.02(b)(i) and clauses F through
               J of Section 4.02(b)(iv) for such Distribution Date, together
               with any amounts withdrawn from the Reserve Fund for distribution
               to such Class X-1 Certificate pursuant to Sections 4.07(b) and
               (c) and the amount of any Overcollateralization Release Amount
               for such Distribution Date; and

          L.   to the Class R Certificate, any remaining amount.

          On each Distribution Date, the aggregate amount distributable to the
Class A-1 and Class A-2 Certificates under clause (iv)A.(I)(aa) or (iv)A.(II)
above shall be allocated between such Classes in proportion to the respective
aggregate Stated Principal Balances of the Mortgage Loans in the related Loan
Group determined as of such Distribution Date; provided, however, that the

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aggregate amount distributed to the Class A-1 Certificates under clause
(iv)A.(I)(aa) or (iv)A.(II) above shall be not greater than an amount equal to
the excess (such amount, the "Class A-1 Eligible Excess Cashflow") of (1) the
portion of the Interest Remittance Amount for such Distribution Date that is
derived from the Mortgage Loans in Loan Group 1, over (2) the Current Interest
and any Carryforward Interest for the Class A-1 Certificates for such
Distribution Date. If the amount otherwise allocable to the Class A-1
Certificates under the preceding sentence is limited by the Class A-1 Eligible
Excess Cashflow, then the amount in excess of that limitation shall be paid to
the Class A-2 Certificates until the Class Principal Balance of that class is
reduced to zero. In addition, the payment of any Basis Risk Shortfall on any
Distribution Date to the Class A-1 Certificates shall be limited to an amount
equal to the Class A-1 Eligible Excess Cashflow minus the amount distributed to
the Class A-1 Certificates under clause (iv)A.(I)(aa) or (iv)A.(II) above for
that date.

          (v) On each Distribution Date, the Trustee shall distribute to the
     Holder of the Class P Certificate, the aggregate of all Prepayment Premiums
     collected during the preceding Prepayment Period.

          (vi) On the first Distribution Date only, the Trustee shall distribute
     the Monthly Excess Cashflow for such date to the Class X-1 Certificate.

          (vii) On each Distribution Date, the Trustee shall distribute to the
     Holder of the Class X-2 Certificates, the proceeds of any Mortgage Loan
     that has been charged off.

          (c) Distributions of principal pursuant to Sections 4.02(b)(ii)(B) and
4.02(b)(iii)(B)on the Class A-1 and Class A-2 Certificates on each Distribution
Date will be made concurrently, in each case in accordance with the percentage
of the amounts described in clauses (1) through (5) in the definition of
Principal Remittance Amount derived from the related Loan Group, until the Class
Principal Balances of the Class A-1 and Class A-2 Certificates have been reduced
to zero. If on any Distribution Date one of the Class A-1 or Class A-2
Certificates is reduced to zero, the remaining amount of principal available to
be allocated to such Class on such Distribution Date will be distributed to the
other Class of Class A Certificates.

          SECTION 4.03 [Reserved]

          SECTION 4.04 [Reserved]

          SECTION 4.05 Allocation of Realized Losses.

          On each Distribution Date, the Trustee shall determine the total of
the Applied Loss Amount, if any, for such Distribution Date. The Applied Loss
Amount for any Distribution Date shall be applied by reducing the Class
Principal Balance of each Class of Subordinate Certificates beginning with the
Class of Subordinate Certificates then outstanding with the lowest relative
payment priority, in each case until the respective Class Principal Balance
thereof is reduced to zero. Any Applied Loss Amount allocated to a Class of
Subordinate Certificates shall be allocated among the Subordinate Certificates
of such Class in proportion to their respective Percentage Interests.

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          All Realized Losses on the Mortgage Loans shall be allocated on each
Distribution Date to the following REMIC I Regular Interests: first, to REMIC I
Regular Interest LT-1 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-2 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-3 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-4 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-5 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-6 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-7 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-8 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-9 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-10 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-11 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-12 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-13 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-14 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-15 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-16 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-17 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-18 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-19 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-20 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-21 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-22 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-23 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-24 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-25 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-26 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-27 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-28 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-29 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-30 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-31 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-32 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-33 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-34 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
I Regular Interest LT-35 until the Uncertificated Principal Balance thereof has
been reduced to zero, then to REMIC I Regular Interest LT-36 until the
Uncertificated Principal Balance thereof has been reduced to zero, then to REMIC
1 Regular Interest LT-37 until the Uncertificated Principal Balance thereof has
been reduced to zero. All Realized Losses on the REMIC I Regular Interests LT-1,
LT-2, LT-3, LT-4,

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LT-5, LT-6, LT-7, LT-8, LT-9, LT-10, LT-11, LT-12, LT-13, LT-14, LT-15, LT-16,
LT-17, LT-18, LT-19, LT-20, LT-21, LT-22, LT-23, LT-24, LT-25, LT-26, LT-27,
LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35, LT-36 and LT-37 shall be
deemed to have been allocated to the following REMIC 2 Regular Interests in the
specified percentages, as follows: first, to Uncertificated Accrued Interest
payable to the REMIC 2 Regular Interests MT-1 and MT-8 up to an aggregate amount
equal to the excess of (a) the REMIC 2 Interest Loss Allocation Amount over (b)
Prepayment Interest Shortfalls (to the extent not covered by Compensating
Interest) relating to the Mortgage Loans for such Distribution Date, 98% and 2%,
respectively; second, to the Uncertificated Principal Balances of the REMIC 2
Regular Interests MT-1 and MT-8 up to an aggregate amount equal to the REMIC 2
Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the
Uncertificated Principal Balances of REMIC 2 Regular Interest MT-1, REMIC 2
Regular Interest MT-7 and REMIC 2 Regular Interest MT-8, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
Interest MT-7 has been reduced to zero; fourth, to the Uncertificated Principal
Balances of REMIC 2 Regular Interest MT-1, REMIC 2 Regular Interest MT-6 and
REMIC 2 Regular Interest MT-8, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC 2 Regular Interest MT-6 has been
reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2
Regular Interest MT-1, REMIC 2 Regular Interest MT-5 and REMIC 2 Regular
Interest MT-8, 98%, 1% and 1%, respectively, until the Uncertificated Principal
Balance of REMIC 2 Regular Interest MT-5 has been reduced to zero; and sixth, to
the Uncertificated Principal Balances of REMIC 2 Regular Interest MT-1, REMIC 2
Regular Interest MT-4 and REMIC 2 Regular Interest MT-8, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 2 Regular
Interest MT-4 has been reduced to zero.

          SECTION 4.06 Monthly Statements to Certificateholders.

          (a) Not later than each Distribution Date, the Trustee shall prepare
and cause to be forwarded by first class mail to the Depositor, each Servicer
and each Rating Agency, and make available on the website maintained by the
Trustee at http://www.jpmorgan.com/absmbs, a statement setting forth with
respect to the related distribution for each Certificate Group:

          (i) the amount thereof allocable to principal, separately identifying
     the aggregate amount of any Principal Prepayments and Liquidation Proceeds
     included therein, and the amount of the distribution made to the holders of
     the Class P Certificates allocable to Prepayment Penalties;

          (ii) if the distribution to the Holders of such Class of Certificates
     is less than the full amount that would be distributable to such Holders if
     there were sufficient funds available therefor, the amount of the shortfall
     and the allocation thereof as between principal and interest;

          (iii) the Class Principal Balance of each Class of Certificates after
     giving effect to the distribution of principal on such Distribution Date;

          (iv) the aggregate Stated Principal Balance of the Mortgage Loans in
     Loan Group 1 and the Mortgage Loans in Loan Group 2;

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          (v) the amount of the Servicing Fees and Prepayment Penalties, if
     applicable, with respect to such Distribution Date;

          (vi) the Pass-Through Rate for each such Class of Certificates with
     respect to such Distribution Date;

          (vii) the amount of Advances included in the distribution on such
     Distribution Date and the aggregate amount of Advances outstanding as of
     the end of the preceding month;

          (viii) the number and aggregate principal amounts of Mortgage Loans
     (A) delinquent (exclusive of Mortgage Loans in foreclosure) (1) 31 to 60
     days, (2) 61 to 90 days and (3) 91 or more days and (B) in foreclosure and
     delinquent (1) 31 to 60 days, (2) 61 to 90 days and (3) 91 or more days, as
     of the close of business on the last day of the calendar month preceding
     such Distribution Date, assuming twelve thirty day months;

          (ix) for each of the preceding 12 calendar months, or all calendar
     months since the related Cut-off Date, whichever is less, the aggregate
     dollar amount of the Scheduled Payments (A) due on all Outstanding Mortgage
     Loans on each of the Due Dates in each such month and (B) delinquent 60
     days or more on each of the Due Dates in each such month;

          (x) with respect to any Mortgage Loan that became an REO Property
     during the preceding calendar month, the loan number and Stated Principal
     Balance of such Mortgage Loan as of the close of business on the
     Determination Date preceding such Distribution Date and the date of
     acquisition thereof;

          (xi) the total number and principal balance of any REO Properties (and
     market value, if available) as of the close of business on the
     Determination Date preceding such Distribution Date;

          (xii) the aggregate amount of Realized Losses incurred during the
     preceding calendar month and aggregate Realized Losses through such
     Distribution Date; and

          (xiii) the Rolling Three Month Delinquency Rate for the Mortgage Loans
     for such Distribution Date.

          Assistance in using the website can be obtained by calling the
Trustee's customer service desk at 877-722-1095. Parties that are unable to use
the website are entitled to have a paper copy mailed to them via first class
mail by written notice to the Trustee at its Corporate Trust Office. The
Trustee's responsibility for disbursing the above information to the
Certificateholders for each Certificate Group is limited to the availability,
timeliness and accuracy of the information derived from the Servicers. The
foregoing information shall be reported to the Trustee each month on or before
the related Determination Date.

          (b) Within a reasonable period of time after the end of each calendar
year, the Trustee shall cause to be furnished to each Person who at any time
during the calendar year was a

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Certificateholder, a statement containing the information set forth in, clauses
(a)(i), (a)(ii) and (a)(vii) of this Section 4.06 aggregated for such calendar
year or applicable portion thereof during which such Person was a
Certificateholder. Such obligation of the Trustee shall be deemed to have been
satisfied to the extent that substantially comparable information shall be
provided by the Trustee pursuant to any requirements of the Code as from time to
time in effect.

          SECTION 4.07 Distributions on the REMIC 1 Regular Interests.

          (a) On each Distribution Date, the Trustee shall cause in the
following order of priority, the following amounts to be distributed by REMIC 1
to REMIC 2 on account of the REMIC 1 Regular Interests or withdrawn from the
Distribution Account and distributed to the holders of the Class R Certificates
(in respect of the Class R-1 Interest), as the case may be:

          (i) to the Holders of REMIC 1 Regular Interests LT-2, LT-3, LT-4,
     LT-5, LT-6, LT-7, LT-8, LT-9, LT-10, LT-11, LT-12, LT-13, LT-14, LT-15,
     LT-16, LT-17, LT-18, LT-19, LT-20, LT-21, LT-22, LT-23, LT-24, LT-25,
     LT-26, LT-27, LT-28, LT-29, LT-30, LT-31, LT-32, LT-33, LT-34, LT-35,
     LT-36, LT-37, LT-P and LT-R, in an amount equal to (A) the related
     Uncertificated Accrued Interest for such Distribution Date, plus (B) any
     amounts in respect thereof remaining unpaid from previous Distribution
     Dates and second, to Holders of Uncertificated REMIC 1 Regular Interest
     LT-1 an amount equal to (A) the related Uncertificated Accrued Interest for
     such Distribution Date, plus (B) any amounts in respect thereof remaining
     unpaid from previous Distribution Dates; and

          (ii) to the Holders of REMIC 1 Regular Interests, in an amount equal
     to the remainder of the Available Funds for such Distribution Date after
     the distributions made pursuant to clause (ii) above, allocated as follows:

               (a) to the Holders of REMIC I Regular Interest LT-R, an amount
     equal to the amount of principal distributed to the holder of the
     Corresponding Uncertificated Interest on such Distribution Date pursuant to
     Section 4.08(a)(ii)(a);

               (b) to the Holders of REMIC I Regular Interest LT-P, an amount
     equal to the amount distributed to the holder of the Corresponding
     Uncertificated Interest on such Distribution Date pursuant to Section
     4.08(a)(ii)(b);

               (c) to the Holders of REMIC 1 Regular Interest LT-1, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-1 is reduced to zero;

               (d) to the Holders of REMIC 1 Regular Interest LT-2, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-2 is reduced to zero;

               (e) to the Holders of REMIC 1 Regular Interest LT-3, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-3 is reduced to zero;

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               (f) to the Holders of REMIC 1 Regular Interest LT-4, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-4 is reduced to zero;

               (g) to the Holders of REMIC 1 Regular Interest LT-5, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-5 is reduced to zero;

               (h) to the Holders of REMIC 1 Regular Interest LT-6, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-6 is reduced to zero;

               (i) to the Holders of REMIC 1 Regular Interest LT-7, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-7 is reduced to zero;

               (j) to the Holders of REMIC 1 Regular Interest LT-8, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-8 is reduced to zero;

               (k) to the Holders of REMIC 1 Regular Interest LT-9, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-9 is reduced to zero;

               (l) to the Holders of REMIC 1 Regular Interest LT-10, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-10 is reduced to zero;

               (m) to the Holders of REMIC 1 Regular Interest LT-11, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-11 is reduced to zero;

               (n) to the Holders of REMIC 1 Regular Interest LT-12, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-12 is reduced to zero;

               (o) to the Holders of REMIC 1 Regular Interest LT-13, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-13 is reduced to zero;

               (p) to the Holders of REMIC 1 Regular Interest LT-14, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-14 is reduced to zero;

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               (q) to the Holders of REMIC 1 Regular Interest LT-15, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-15 is reduced to zero;

               (r) to the Holders of REMIC 1 Regular Interest LT-16, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-16 is reduced to zero;

               (s) to the Holders of REMIC 1 Regular Interest LT-17, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-17 is reduced to zero;

               (t) to the Holders of REMIC 1 Regular Interest LT-18, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-18 is reduced to zero;

               (u) to the Holders of REMIC 1 Regular Interest LT-19, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-19 is reduced to zero;

               (v) to the Holders of REMIC 1 Regular Interest LT-20, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-20 is reduced to zero;

               (w) to the Holders of REMIC 1 Regular Interest LT-21, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-21 is reduced to zero;

               (x) to the Holders of REMIC 1 Regular Interest LT-22, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-22 is reduced to zero;

               (y) to the Holders of REMIC 1 Regular Interest LT-23, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-23 is reduced to zero;

               (z) to the Holders of REMIC 1 Regular Interest LT-24, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-24 is reduced to zero;

               (aa) to the Holders of REMIC 1 Regular Interest LT-25, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-25 is reduced to zero;

               (bb) to the Holders of REMIC 1 Regular Interest LT-26, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-26 is reduced to zero;

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               (cc) to the Holders of REMIC 1 Regular Interest LT-27, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-27 is reduced to zero;

               (dd) to the Holders of REMIC 1 Regular Interest LT-28, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-28 is reduced to zero;

               (ee) to the Holders of REMIC 1 Regular Interest LT-29, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-29 is reduced to zero;

               (ff) to the Holders of REMIC 1 Regular Interest LT-30, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-30 is reduced to zero;

               (gg) to the Holders of REMIC 1 Regular Interest LT-31, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-31 is reduced to zero;

               (hh) to the Holders of REMIC 1 Regular Interest LT-32, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-32 is reduced to zero;

               (ii) to the Holders of REMIC 1 Regular Interest LT-33, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-33 is reduced to zero;

               (jj) to the Holders of REMIC 1 Regular Interest LT-34, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-34 is reduced to zero;

               (kk) to the Holders of REMIC 1 Regular Interest LT-35, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-35 is reduced to zero;

               (ll) to the Holders of REMIC 1 Regular Interest LT-36, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-36 is reduced to zero;

               (mm) to the Holders of REMIC 1 Regular Interest LT-37, until the
     Uncertificated Principal Balance of Uncertificated REMIC 1 Regular Interest
     LT-37 is reduced to zero; and

               (nn) any remaining amount to the Holders of the Class R-1
     Interest.

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          SECTION 4.08 Distributions on the REMIC 2 Regular Interests.

          (a) On each Distribution Date, the Trustee shall cause in the
following order of priority, the following amounts to be distributed by REMIC 2
to REMIC 3 on account of the REMIC 2 Regular Interests or withdrawn from the
Distribution Account and distributed to the holders of the Class R Certificates
(in respect of the Class R-2 Interest), as the case may be:

          (i) first, to the extent of the sum of Available Funds for such
     Distribution Date, to Holders of REMIC 2 Regular Interests MT-1, MT-2,
     MT-3, MT-4, MT-5, MT-6, MT-7, MT-8, MT-P and MT-R, pro rata, in an amount
     equal to (A) the Uncertificated Accrued Interest for such Distribution
     Date, plus (B) any amounts in respect thereof remaining unpaid from
     previous Distribution Dates. Amounts payable as Uncertificated Accrued
     Interest in respect of REMIC 2 Regular Interest LT-8 shall be reduced when
     the REMIC 2 Overcollateralization Amount is less than the REMIC 2
     Overcollateralization Target Amount, by the lesser of (x) the amount of
     such difference and (y) the REMIC 2 Regular Interest MT-8 Maximum Interest
     Deferral Amount;

          (ii) second, to the Holders of REMIC 2 Regular Interests, in an amount
     equal to the remainder of the Available Funds for such Distribution Date
     after the distributions made pursuant to clause (i) above, allocated as
     follows:

               (a) to the Holders of REMIC I Regular Interest MT-R, an amount
          equal to the amount of principal distributed to the holder of the
          Corresponding Certificate on such Distribution Date pursuant to
          Section 4.02;

               (b) to the Holders of REMIC I Regular Interest MT-P, an amount
          equal to the sum of (i) the amount of principal distributed to the
          holder of the Corresponding Certificate on such Distribution Date
          pursuant to Section 4.02(b)(ii)A. and (ii) the amount distributed to
          the holder of the Corresponding Certificate on such Distribution Date
          pursuant to Section 4.02(b)(v).

          (iii) third, to the Holders of REMIC 2 Regular Interests, in an amount
     equal to the remainder of the Available Funds for such Distribution Date
     after the distributions made pursuant to clauses (i) and (ii) above,
     allocated as follows:

          (a) with respect Holders of REMIC 2 Regular Interest MT-1, 98.00% of
     such remainder, until the Uncertificated Principal Balance of such
     Uncertificated REMIC 2 Regular Interest is reduced to zero;

          (b) with respect to the Holders of REMIC 2 Regular Interest MT-2,
     MT-3, MT-4, MT-5, MT-6, MT-7 and MT-8, 1.00% of such remainder, in the same
     proportion as principal payments are allocated to the Corresponding
     Certificates, until the Uncertificated Principal Balances of such REMIC 2
     Regular Interests are reduced to zero;

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          (c) to the Holders of REMIC 2 Regular Interest MT-8, 1.00% of such
     remainder, until the Uncertificated Principal Balance of such REMIC 2
     Regular Interest is reduced to zero; then

          (d) any remaining amount to the Holders of the Class R Certificates
     (in respect of the Class R-2 Interest);

provided, however, 98.00% and 2.00% of any principal payments that are
attributable to an Overcollateralization Release Amount shall be allocated to
Holders of REMIC 2 Regular Interest MT-1 and REMIC 1 Regular Interest MT-8,
respectively.

          SECTION 4.09 Reserve Fund.

          (a) On the Closing Date, the Trustee shall establish and maintain in
its name, in trust for the benefit of the Holders of the Class A-1, Class A-2,
Class M-1, Class M-2, Class B-1 and Class B-2 Certificates, the Reserve Fund.
The Reserve Fund shall be an Eligible Account, and funds on deposit therein
shall be held separate and apart from, and shall not be commingled with, any
other moneys, including without limitation, other moneys held by the Trustee
pursuant to this Agreement.

          (b) On the Closing Date, $5,000 will be deposited by the Depositor
into the Reserve Fund. On each Distribution Date, the Trustee shall transfer
from the Certificate Account to the Reserve Fund pursuant to Section
4.02(b)(iv)(I)., the Required Basis Risk Reserve Fund Deposit. Amounts on
deposit in the Reserve Fund may be withdrawn by the Trustee in connection with
any Distribution Date to fund the amounts required to be distributed to holders
of the Class A-1, Class A-2, Class M-1, Class M-2 and Class B-1 Certificates
pursuant to Sections 4.02(a)(iv) F. through I. to the extent Monthly Excess
Cashflow on such date is insufficient to make such payments. Any such amounts
distributed shall be treated for federal tax purposes as amounts distributed by
REMIC 3 to the Class X-1 Certificateholders. On any Distribution Date, any
amounts on deposit in the Reserve Fund in excess of the Required Basis Risk
Reserve Fund Amount shall be distributed to the Class X-1 Certificateholder
pursuant to Section 4.02(a)(iv)K.

          (c) Amounts distributed pursuant to clause F of Section 4.02(b)(i) and
clauses F through J of Section 4.02(b)(iv) for such Distribution Date shall be
treated for federal income tax purposes as amounts distributed by REMIC 3 to the
Class X-1 Certificateholders.

          (d) Funds in the Reserve Fund may be invested in Eligible Investments
by the Trustee at the direction of the Majority in Interest Holder of the Class
X-1 Certificate. Any net investment earnings on such amounts shall be payable to
the Holder of the Class X-1 Certificate. Amounts held in the Reserve Fund from
time to time shall continue to constitute assets of the Trust Fund, but not of
REMIC 1, REMIC 2 or REMIC 3, until released from the Reserve Fund pursuant to
this Section 4.09. The Reserve Fund constitutes an "outside reserve fund" within
the meaning of Treasury Regulation ss.1.860G-2(h) and is not an asset of REMIC
1, REMIC 2 or REMIC 3. For all federal tax purposes, amounts transferred by the
REMIC 1, REMIC 2 or REMIC 3 to the Reserve Fund shall be treated as amounts
distributed by REMIC 1, REMIC 2 or REMIC 3 to the Class X-1 Certificateholders.
The Class X-1 Certificate shall evidence ownership of the Reserve Fund for
federal tax purposes and the Holders thereof shall direct the Trustee in writing
as to the investment

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of amounts therein. In the absence of such written direction, all funds in the
Reserve Fund shall be invested by the Trustee in the Chase Vista Prime Money
Market Fund. The Trustee shall have no liability for losses on investments in
Eligible Investments made pursuant to this Section 4.09(c) (other than as
obligor on any such investments). Upon termination of the Trust Fund, any
amounts remaining in the Reserve Fund shall be distributed to the Holder of the
Class X-1 Certificate in the same manner as if distributed pursuant to Section
4.02(b)(iv)K. hereof.

          (e) On the Distribution Date immediately after the Distribution Date
on which the aggregate Class Principal Balance of the Class A-1, Class A-2,
Class M-1, Class M-2 and Class B-1 Certificates equals zero, any amounts on
deposit in the Reserve Fund not payable on the Class A-1, Class A-2, Class M-1,
Class M-2 or Class B-1 Certificates shall be distributed to the Holder of the
Class X-1 Certificate in the same manner as if distributed pursuant to Section
4.02(b)(iv)K. hereof.

          SECTION 4.10 Prepayment Penalties.

          For any Mortgage Loan in which a Prepayment Penalty is due, the
Trustee will verify no later than 5 Business Days after each Distribution Date
that the related Servicer remitted an amount with respect to such Prepayment
Penalty. The Trustee is not responsible for verifying whether the amount of such
Prepayment Penalty is correct. The Trustee shall provide a report (the
"Prepayment Penalty Report") to the related Servicer listing any Mortgage Loans
for which a Prepayment Penalty was due but not received by the Trustee no later
than the Business Day immediately preceding the related Distribution Date. If
the related Servicer fails to remit a Prepayment Penalty to the Trustee, and the
Trustee notified such Servicer that such Prepayment Penalty was due but not
received and such Servicer fails to remit such Prepayment Penalty or to provide
the Trustee with an Officer's Certificate providing a written explanation of
such Servicer's determination not to pursue the collection of such Prepayment
Penalty within four Business Days of the date of the Prepayment Penalty Report,
the Trustee will promptly provide notice in writing of such failure to the
Depositor. The Trustee shall have no further responsibilities with respect to
such Prepayment Penalties.

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                                    ARTICLE V

                                THE CERTIFICATES

          SECTION 5.01 The Certificates.

          The Certificates shall be substantially in the forms attached hereto
as exhibits. The Certificates shall be issuable in registered form, in the
minimum denominations, integral multiples in excess thereof (except that one
Certificate in each Class may be issued in a different amount which must be in
excess of the applicable minimum denomination) and aggregate denominations per
Class set forth in the Preliminary Statement.

          Subject to Section 9.02 respecting the final distribution on the
Certificates, on each Distribution Date the Trustee shall make distributions to
each Certificateholder of record on the preceding Record Date either (x) by wire
transfer in immediately available funds to the account of such holder at a bank
or other entity having appropriate facilities therefor, if (i) such Holder has
so notified the Trustee at least five Business Days prior to the related Record
Date and (ii) such Holder shall hold (A) a Notional Amount Certificate, (B) 100%
of the Class Principal Balance of any Class of Certificates or (C) Certificates
of any Class with aggregate principal Denominations of not less than $1,000,000
or (y) by check mailed by first class mail to such Certificateholder at the
address of such holder appearing in the Certificate Register.

          The Certificates shall be executed by manual or facsimile signature on
behalf of the Trustee by an authorized officer upon the written order of the
Depositor. Certificates bearing the manual or facsimile signatures of
individuals who were, at the time such signatures were affixed, authorized to
sign on behalf of the Trustee shall bind the Trustee, notwithstanding that such
individuals or any of them have ceased to be so authorized prior to the
countersignature and delivery of any such Certificates or did not hold such
offices at the date of such Certificate. No Certificate shall be entitled to any
benefit under this Agreement, or be valid for any purpose, unless countersigned
by the Trustee by manual signature, and such countersignature upon any
Certificate shall be conclusive evidence, and the only evidence, that such
Certificate has been duly executed and delivered hereunder. All Certificates
shall be dated the date of their countersignature. On the Closing Date, the
Trustee shall countersign the Certificates to be issued at the written direction
of the Depositor, or any affiliate thereof.

          The Depositor shall provide, or cause to be provided, to the Trustee
on a continuous basis, an adequate inventory of Certificates to facilitate
transfers.

          The Trustee shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restriction or transfer imposed under Article
V of this Agreement or under applicable law with respect to any transfer of any
Certificate, or any interest therein, other than to require delivery of the
certification(s) and/or opinions of counsel described in Article V applicable
with respect to changes in registration of record ownership of Certificates in
the Certificate Register. The Trustee shall have no liability for transfers,
including transfers made through the book-entry facilities of the Depository or
between or among Depository Participants or beneficial owners of the
Certificates made in violation of applicable restrictions.

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    SECTION 5.02       Certificate Register; Registration of Transfer and
                       Exchange of Certificates.

          (a) The Trustee shall maintain, or cause to be maintained in
accordance with the provisions of Section 5.06, a Certificate Register for the
Trust Fund in which, subject to the provisions of subsections (b) and (c) below
and to such reasonable regulations as it may prescribe, the Trustee shall
provide for the registration of Certificates and of transfers and exchanges of
Certificates as herein provided. Upon surrender for registration of transfer of
any Certificate, the Trustee shall execute and deliver, in the name of the
designated transferee or transferees, one or more new Certificates of the same
Class and aggregate Percentage Interest.

          At the option of a Certificateholder, Certificates may be exchanged
for other Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest upon surrender of the
Certificates to be exchanged at the office or agency of the Trustee. Whenever
any Certificates are so surrendered for exchange, the Trustee shall execute,
authenticate, and deliver the Certificates which the Certificateholder making
the exchange is entitled to receive. Every Certificate presented or surrendered
for registration of transfer or exchange shall be accompanied by a written
instrument of transfer in form satisfactory to the Trustee duly executed by the
holder thereof or his attorney duly authorized in writing.

          No service charge to the Certificateholders shall be made for any
registration of transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of Certificates may be required.

          All Certificates surrendered for registration of transfer or exchange
shall be canceled and subsequently disposed of by the Trustee in accordance with
the Trustee's customary procedures.

          (b) No transfer of a Private Certificate shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such state securities laws. Except
in connection with any transfer of a Private Certificate by the Depositor to any
affiliate, in the event that a transfer is to be made in reliance upon an
exemption from the Securities Act and such laws, in order to assure compliance
with the Securities Act and such laws, the Certificateholder desiring to effect
such transfer and such Certificateholder's prospective transferee shall each
certify to the Trustee in writing the facts surrounding the transfer in
substantially the form set forth in Exhibit J (the "Transferor Certificate") and
(i) deliver a letter in substantially the form of either Exhibit K (the
"Investment Letter") or Exhibit L (the "Rule 144A Letter") or (ii) there shall
be delivered to the Trustee at the expense of the transferor an Opinion of
Counsel that such transfer may be made pursuant to an exemption from the
Securities Act. The Depositor shall provide to any Holder of a Private
Certificate and any prospective transferee designated by any such Holder,
information regarding the related Certificates and the Mortgage Loans and such
other information as shall be necessary to satisfy the condition to eligibility
set forth in Rule 144A(d)(4) for transfer of any such Certificate without
registration thereof under the Securities Act pursuant to the registration
exemption provided by Rule 144A. The Trustee and the Servicers shall cooperate
with the Depositor in providing the Rule 144A information referenced in

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the preceding sentence, including providing to the Depositor such information
regarding the Certificates, the Mortgage Loans and other matters regarding the
Trust Fund as the Depositor shall reasonably request to meet its obligation
under the preceding sentence. Each Holder of a Private Certificate desiring to
effect such transfer shall, and does hereby agree to, indemnify the Trustee, the
Depositor, the Seller and the Servicers against any liability that may result if
the transfer is not so exempt or is not made in accordance with such federal and
state laws.

          No transfer of an ERISA-Restricted Certificate shall be made unless
the Trustee shall have received either (i) a representation from the transferee
of such Certificate, acceptable to and in form and substance satisfactory to the
Trustee (in the event such Certificate is a Private Certificate or a Residual
Certificate, such requirement is satisfied only by the Trustee's receipt of a
representation letter from the transferee substantially in the form of Exhibit K
or Exhibit L), to the effect that such transferee is not an employee benefit
plan or arrangement subject to Section 406 of ERISA or a plan subject to Section
4975 of the Code, nor a person acting on behalf of any such plan or arrangement
nor using the assets of any such plan or arrangement to effect such transfer,
(ii) in the case of a Class B-2 Certificate only, if such transferee is an
insurance company, it is purchasing the Class B-2 Certificates with funds
contained in an "insurance company general account" (as defined in Section V(e)
of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and such
transferee's purchase and holding of the Class B-2 Certificates are covered
under PTCE 95-60 or (iii) in the case of any such ERISA-Restricted Certificate
presented for registration in the name of an employee benefit plan subject to
ERISA, or a plan or arrangement subject to Section 4975 of the Code (or
comparable provisions of any subsequent enactments), or a trustee of any such
plan or any other person acting on behalf of any such plan or arrangement or
using such plan's or arrangement's assets, an Opinion of Counsel satisfactory to
the Trustee, which Opinion of Counsel shall not be an expense of either the
Trustee or the Trust Fund, addressed to the Trustee, to the effect that the
purchase or holding of such ERISA-Restricted Certificate will not result in the
assets of the Trust Fund being deemed to be "plan assets" and subject to the
prohibited transaction provisions of ERISA and the Code and will not subject the
Trustee or the Servicers to any obligation in addition to those expressly
undertaken in this Agreement or to any liability. For purposes of the preceding
sentence, with respect to an ERISA-Restricted Certificate that is not a Private
Certificate or a Residual Certificate, in the event the representation letter
referred to in the preceding sentence is not furnished, such representation
shall be deemed to have been made to the Trustee by the transferee's (including
an initial acquiror's) acceptance of the ERISA-Restricted Certificates.
Notwithstanding anything else to the contrary herein, any purported transfer of
an ERISA-Restricted Certificate to or on behalf of an employee benefit plan
subject to ERISA or to the Code without the delivery to the Trustee of an
Opinion of Counsel satisfactory to the Trustee as described above shall be void
and of no effect.

          To the extent permitted under applicable law (including, but not
limited to, ERISA), the Trustee shall be under no liability to any Person for
any registration of transfer of any ERISA-Restricted Certificate that is in fact
not permitted by this Section 5.02(b) or for making any payments due on such
Certificate to the Holder thereof or taking any other action with respect to
such Holder under the provisions of this Agreement so long as the transfer was
registered by the Trustee in accordance with the foregoing requirements.

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          (c) Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:

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

          (ii) No Ownership Interest in a Residual Certificate may be registered
     on the Closing Date or thereafter transferred, and the Trustee shall not
     register the Transfer of any Residual Certificate unless, in addition to
     the certificates required to be delivered to the Trustee under subparagraph
     (b) above, the Trustee shall have been furnished with an affidavit (a
     "Transfer Affidavit") of the initial owner or the proposed transferee in
     the form attached hereto as Exhibit I.

          (iii) Each Person holding or acquiring any Ownership Interest in a
     Residual Certificate shall agree (A) to obtain a Transfer Affidavit from
     any other Person to whom such Person attempts to Transfer its Ownership
     Interest in a Residual Certificate, (B) to obtain a Transfer Affidavit from
     any Person for whom such Person is acting as nominee, trustee or agent in
     connection with any Transfer of a Residual Certificate and (C) not to
     Transfer its Ownership Interest in a Residual Certificate or to cause the
     Transfer of an Ownership Interest in a Residual Certificate to any other
     Person if it has actual knowledge that such Person is not a Permitted
     Transferee.

          (iv) Any attempted or purported Transfer of any Ownership Interest in
     a Residual Certificate in violation of the provisions of this Section
     5.02(c) shall be absolutely null and void and shall vest no rights in the
     purported Transferee. If any purported transferee shall become a Holder of
     a Residual Certificate in violation of the provisions of this Section
     5.02(c), then the last preceding Permitted Transferee shall be restored to
     all rights as Holder thereof retroactive to the date of registration of
     Transfer of such Residual Certificate. The Trustee shall be under no
     liability to any Person for any registration of Transfer of a Residual
     Certificate that is in fact not permitted by Section 5.02(b) and this
     Section 5.02(c) or for making any payments due on such Certificate to the
     Holder thereof or taking any other action with respect to such Holder under
     the provisions of this Agreement so long as the Transfer was registered
     after receipt of the related Transfer Affidavit, Transferor Certificate and
     either the Rule 144A Letter or the Investment Letter. The Trustee shall be
     entitled but not obligated to recover from any Holder of a Residual
     Certificate that was in fact not a Permitted Transferee at the time it
     became a Holder or, at such subsequent time as it became other than a
     Permitted Transferee, all payments made on such Residual Certificate at and
     after either such time. Any such payments so recovered by the Trustee shall
     be paid and delivered by the Trustee to the last preceding Permitted
     Transferee of such Certificate.

          (v) The Depositor shall use its best efforts to make available, upon
     receipt of written request from the Trustee, all information necessary to
     compute any tax imposed

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     under Section 860E(e) of the Code as a result of a Transfer of an Ownership
     Interest in a Residual Certificate to any Holder who is not a Permitted
     Transferee.

          The restrictions on Transfers of a Residual Certificate set forth in
this Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Residual Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of Counsel shall not be an expense of the Trust Fund, the Trustee, the Seller or
the Servicers, to the effect that the elimination of such restrictions will not
cause the Trust Fund hereunder to fail to qualify as a REMIC at any time that
the Certificates are outstanding or result in the imposition of any tax on the
Trust Fund, a Certificateholder or another Person. Each Person holding or
acquiring any Ownership Interest in a Residual Certificate hereby consents to
any amendment of this Agreement which, based on an Opinion of Counsel furnished
to the Trustee, is reasonably necessary (a) to ensure that the record ownership
of, or any beneficial interest in, a Residual Certificate is not transferred,
directly or indirectly, to a Person that is not a Permitted Transferee and (b)
to provide for a means to compel the Transfer of a Residual Certificate which is
held by a Person that is not a Permitted Transferee to a Holder that is a
Permitted Transferee.

          (d) The preparation and delivery of all certificates and opinions
referred to above in this Section 5.02 in connection with transfer shall be at
the expense of the parties to such transfers.

          (e) Except as provided below, the Book-Entry Certificates shall at all
times remain registered in the name of the Depository or its nominee and at all
times: (i) registration of the Certificates may not be transferred by the
Trustee except to another Depository; (ii) the Depository shall maintain
book-entry records with respect to the Certificate Owners and with respect to
ownership and transfers of such Book-Entry Certificates; (iii) ownership and
transfers of registration of the Book-Entry Certificates on the books of the
Depository shall be governed by applicable rules established by the Depository;
(iv) the Depository may collect its usual and customary fees, charges and
expenses from its Depository Participants; (v) the Trustee shall deal with the
Depository, Depository Participants and indirect participating firms as
representatives of the Certificate Owners of the Book-Entry Certificates for
purposes of exercising the rights of holders under this Agreement, and requests
and directions for and votes of such representatives shall not be deemed to be
inconsistent if they are made with respect to different Certificate Owners; and
(vi) the Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its Depository
Participants and furnished by the Depository Participants with respect to
indirect participating firms and persons shown on the books of such indirect
participating firms as direct or indirect Certificate Owners.

          All transfers by Certificate Owners of Book-Entry Certificates shall
be made in accordance with the procedures established by the Depository
Participant or brokerage firm representing such Certificate Owner. Each
Depository Participant shall only transfer Book-Entry Certificates of
Certificate Owners it represents or of brokerage firms for which it acts as
agent in accordance with the Depository's normal procedures.

          If (x) (i) the Depository or the Depositor advises the Trustee in
writing that the Depository is no longer willing or able to properly discharge
its responsibilities as Depository, and (ii) the Trustee or the Depositor is
unable to locate a qualified successor, (y) the Depositor at its

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option advises the Trustee in writing that it elects to terminate the book-entry
system through the Depository or (z) after the occurrence of an Event of
Default, Certificate Owners representing at least 51% of the Certificate Balance
of the Book-Entry Certificates together advise the Trustee and the Depository
through the Depository Participants in writing that the continuation of a
book-entry system through the Depository is no longer in the best interests of
the Certificate Owners, the Trustee shall notify all Certificate Owners, through
the Depository, of the occurrence of any such event and of the availability of
definitive, fully-registered Certificates (the "Definitive Certificates") to
Certificate Owners requesting the same. Upon surrender to the Trustee of the
related Class of Certificates by the Depository, accompanied by the instructions
from the Depository for registration, the Trustee shall issue the Definitive
Certificates. None of the Sellers, the Servicers, the Depositor or the Trustee
shall be liable for any delay in delivery of such instruction and each may
conclusively rely on, and shall be protected in relying on, such instructions.
The Depositor shall provide the Trustee with an adequate inventory of
certificates to facilitate the issuance and transfer of Definitive Certificates.
Upon the issuance of Definitive Certificates all references herein to
obligations imposed upon or to be performed by the Depository shall be deemed to
be imposed upon and performed by the Trustee, to the extent applicable with
respect to such Definitive Certificates and the Trustee shall recognize the
Holders of the Definitive Certificates as Certificateholders hereunder; provided
that the Trustee shall not by virtue of its assumption of such obligations
become liable to any party for any act or failure to act of the Depository.

          SECTION 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.

          If (a) any mutilated Certificate is surrendered to the Trustee, or the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Certificate and (b) there is delivered to the Trustee such security or
indemnity as may be required by it to hold it harmless, then, in the absence of
notice to the Trustee that such Certificate has been acquired by a bona fide
purchaser, the Trustee shall execute, countersign and deliver, in exchange for
or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like Class, tenor and Percentage Interest. In connection with the
issuance of any new Certificate under this Section 5.03, the Trustee may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Trustee) connected therewith. Any replacement
Certificate issued pursuant to this Section 5.03 shall constitute complete and
indefeasible evidence of ownership, as if originally issued, whether or not the
lost, stolen or destroyed Certificate shall be found at any time.

          SECTION 5.04 Persons Deemed Owners.

          The Servicers, the Trustee and any agent of the Servicers or the
Trustee may treat the Person in whose name any Certificate is registered as the
owner of such Certificate for the purpose of receiving distributions as provided
in this Agreement and for all other purposes whatsoever, and none of the
Servicers, the Trustee or any agent of the Servicers or the Trustee shall be
affected by any notice to the contrary.

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          SECTION 5.05 Access to List of Certificateholders' Names and
Addresses.

          If three or more Certificateholders (a) request such information in
writing from the Trustee, (b) state that such Certificateholders desire to
communicate with other Certificateholders with respect to their rights under
this Agreement or under the Certificates, and (c) provide a copy of the
communication which such Certificateholders propose to transmit, or if the
Depositor or a Servicer shall request such information in writing from the
Trustee, then the Trustee shall, within ten Business Days after the receipt of
such request, provide the Depositor, the Servicers or such Certificateholders at
such recipients' expense the most recent list of the Certificateholders of such
Trust Fund held by the Trustee, if any. The Depositor and every
Certificateholder, by receiving and holding a Certificate, agree that the
Trustee shall not be held accountable by reason of the disclosure of any such
information as to the list of the Certificateholders hereunder, regardless of
the source from which such information was derived.

          SECTION 5.06 Maintenance of Office or Agency.

          The Trustee will maintain or cause to be maintained at its expense an
office or offices or agency or agencies in New York, New York where Certificates
may be surrendered for registration of transfer or exchange. The Trustee
initially designates its Corporate Trust Office for such purposes. The Trustee
will give prompt written notice to the Certificateholders of any change in such
location of any such office or agency.

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                                   ARTICLE VI

                   THE DEPOSITOR, THE SELLER AND THE SERVICERS

          SECTION 6.01 Respective Liabilities of the Depositor, the Sellers and
                       the Servicers.

          The Depositor, the Seller and each Servicer shall each be liable in
accordance herewith only to the extent of the obligations specifically and
respectively imposed upon and undertaken by them herein.

          SECTION 6.02 Merger or Consolidation of the Depositor, the Seller or a
                       Servicer.

          The Depositor, the Seller and each Servicer will each keep in full
effect its existence, rights and franchises as a corporation under the laws of
the United States or under the laws of one of the states thereof and will each
obtain and preserve its qualification to do business as a foreign corporation in
each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of this Agreement, or any of the
Mortgage Loans and to perform its respective duties under this Agreement.
Notwithstanding the foregoing, the Seller or a Servicer may be merged or
consolidated into another Person in accordance with the following paragraph.

          Any Person into which the Depositor, the Seller or a Servicer may be
merged or consolidated, or any Person resulting from any merger or consolidation
to which the Depositor, the Seller or a Servicer shall be a party, or any person
succeeding to the business of the Depositor, the Seller or a Servicer, shall be
the successor of the Depositor, the Seller or a Servicer, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding, provided, however, that the successor or surviving Person with
respect to a merger or consolidation of a Servicer shall be an institution which
is a FNMA or FHLMC approved company in good standing. In addition to the
foregoing, there must be delivered to the Trustee a letter from each of the
Rating Agencies, to the effect that such merger, conversion or consolidation of
a Servicer will not result in a disqualification, withdrawal or downgrade of the
then current rating of any of the Certificates.

          SECTION 6.03 Limitation on Liability of the Depositor, the Seller, the
                       Servicers and Others.

          None of the Depositor, the Seller, any Servicer nor any of the
directors, officers, employees or agents of the Depositor, the Seller or any
Servicer shall be under any liability to the Certificateholders for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect the Depositor, the Seller, any Servicer or any such
Person against any breach of representations or warranties made by it herein or
protect the Depositor, the Seller, any Servicer or any such Person from any
liability which would otherwise be imposed by reasons of willful misfeasance,
bad faith or negligence in the performance of duties or by reason of reckless
disregard of obligations and duties hereunder. The Depositor, the Seller, each
Servicer and any director,

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officer, employee or agent of the Depositor, the Seller or a Servicer may rely
in good faith on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising hereunder. None of the
Depositor, the Seller or any Servicer shall be under any obligation to appear
in, prosecute or defend any legal action that is not incidental to its
respective duties hereunder and which in its opinion may involve it in any
expense or liability; provided, however, that any of the Depositor, the Seller
or any Servicer may in its discretion undertake any such action that it may deem
necessary or desirable in respect of this Agreement and the rights and duties of
the parties hereto and interests of the Trustee and the Certificateholders
hereunder. In such event, the legal expenses and costs of such action and any
liability resulting therefrom shall be expenses, costs and liabilities of the
Trust Fund, and the Depositor, the Seller and each Servicer shall be entitled to
be reimbursed therefor out of the Collection Account.

          SECTION 6.04 Limitation on Resignation of a Servicer.

          (a) Subject to Section 6.04(b) below, a Servicer shall not resign from
the obligations and duties hereby imposed on it except (a) upon appointment,
pursuant to the provisions of Section 7.02, of a successor servicer which (i)
has a net worth of not less than $10,000,000 and (ii) is a FNMA or FHLMC
approved company in good standing and receipt by the Trustee of a letter from
each Rating Agency that such a resignation and appointment will not result in a
qualification, withdrawal or downgrading of the then current rating of any of
the Certificates, or (b) upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination under clause (b)
permitting the resignation of a Servicer shall be evidenced by an Opinion of
Counsel to such effect delivered to the Trustee. No such resignation shall
become effective until the Trustee or a successor servicer shall have assumed
such Servicer's responsibilities, duties, liabilities and obligations hereunder
and the requirements of Section 7.02 have been satisfied.

          (b) Notwithstanding the foregoing, the Seller, as owner of the
servicing rights, or any subsequent owner of the servicing rights, shall be
entitled to require that either or both of Wilshire and Vesta resign and appoint
a successor servicer; provided that such entity delivers to the Trustee the
letter required by Section 6.04(a)(ii) above.

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                                   ARTICLE VII

                                     DEFAULT

          SECTION 7.01 Events of Default.

          "Event of Default", wherever used herein, means any one of the
following events:

          (i) any failure by a Servicer to make any deposit or payment required
     pursuant to this Agreement (including but not limited to Advances to the
     extent required under Section 4.01) which continues unremedied for a period
     of one day after the date upon which written notice of such failure,
     requiring the same to be remedied, shall have been given to such Servicer
     by the Trustee or the Depositor, or to such Servicer and the Trustee by the
     Holders of Certificates having not less than 25% of the Voting Rights
     evidenced by the Certificates; or

          (ii) any failure by a Servicer duly to observe or perform in any
     material respect any other of the covenants or agreements on the part of
     such Servicer set forth in this Agreement, or if any of the representations
     and warranties of such Servicer in Section 2.03(b) proves to be untrue in
     any material respect, which failure or breach continues unremedied for a
     period of 30 days after the date on which written notice of such failure or
     breach, requiring the same to be remedied, shall have been given to such
     Servicer by the Trustee or the Depositor, or to such Servicer and the
     Trustee by the Holders of Certificates having not less than 25% of the
     Voting Rights evidenced by the Certificates; or

          (iii) failure by a Servicer to maintain, if required, its license to
     do business in any jurisdiction where the related Mortgaged Property is
     located; or

          (iv) a decree or order of a court or agency or supervisory authority
     having jurisdiction for the appointment of a conservator or receiver or
     liquidator in any insolvency, readjustment of debt, including bankruptcy,
     marshaling of assets and liabilities or similar proceedings, or for the
     winding-up or liquidation of its affairs, shall have been entered against a
     Servicer and such decree or order shall have remained in force undischarged
     or unstayed for a period of 60 consecutive days; or

          (v) a Servicer shall consent to the appointment of a conservator or
     receiver or liquidator in any insolvency, readjustment of debt, marshaling
     of assets and liabilities or similar proceedings of or relating to such
     Servicer or of or relating to all or substantially all of its property; or

          (vi) a Servicer shall admit in writing its inability to pay its debts
     generally as they become due, file a petition to take advantage of or
     commence a voluntary case under, any applicable insolvency, bankruptcy or
     reorganization statute, make an assignment for the benefit of its
     creditors, voluntarily suspend payment of its obligations or cease its
     normal business operations for three Business Days.

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          Other than an Event of Default resulting from a failure of a Servicer
to make any Advance, if an Event of Default shall occur, then, and in each and
every such case, so long as such Event of Default shall not have been remedied,
the Trustee may, or at the direction of the Holders of Certificates evidencing
not less than 51% of the Voting Rights evidenced by the Certificates, the
Trustee shall by notice in writing to such Servicer (with a copy to each Rating
Agency), terminate all of the rights and obligations of such Servicer under this
Agreement and in and to the related Mortgage Loans and the proceeds thereof,
other than its rights as a Certificateholder hereunder. If an Event of Default
results from the failure of a Servicer to make an Advance, the Trustee shall, by
notice in writing to such Servicer and the Depositor (with a copy to each Rating
Agency), terminate all of the rights and obligations of such Servicer under this
Agreement and in and to the related Mortgage Loans and the proceeds thereof,
other than its rights as a Certificateholder hereunder.

          Upon receipt by a Servicer of such written notice of termination, all
authority and power of such Servicer under this Agreement, whether with respect
to the related Mortgage Loans or otherwise, shall pass to and be vested in the
Trustee or its nominee. Upon written request from the Trustee, such Servicer
shall prepare, execute and deliver to the successor entity designated by the
Trustee any and all documents and other instruments, place in such successor's
possession all related Mortgage Files, and do or cause to be done all other acts
or things necessary or appropriate to effect the purposes of such notice of
termination, including but not limited to the transfer and endorsement or
assignment of the related Mortgage Loans and related documents, at such
Servicer's sole expense. Each Servicer shall cooperate with the Trustee and such
successor in effecting the termination of such Servicer's responsibilities and
rights hereunder, including without limitation, the transfer to such successor
for administration by it of all cash amounts which shall at the time be credited
by such Servicer to the Collection Account or Escrow Account or thereafter
received with respect to the related Mortgage Loans. The Trustee shall thereupon
make any Advance. The Trustee is hereby authorized and empowered to execute and
deliver, on behalf of such Servicer, as attorney-in-fact or otherwise, any and
all documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the related Mortgage Loans and related documents, or otherwise.

          SECTION 7.02 Trustee to Act; Appointment of Successor.

          On and after the time a Servicer receives a notice of termination
pursuant to Section 7.01 of this Agreement or the resignation of such Servicer
pursuant to Section 6.04, the Trustee shall, subject to and to the extent
provided herein, be the successor to such Servicer, but only in its capacity as
servicer under this Agreement, and not in any other, and the transactions set
forth herein and shall be subject to all the responsibilities, duties and
liabilities relating thereto placed on such Servicer by the terms and provisions
hereof and applicable law including the obligation to make Advances pursuant to
Section 4.01. As compensation therefor, the Trustee shall be entitled to all
funds relating to the related Mortgage Loans that such Servicer would have been
entitled to charge to the Collection Account, provided that the terminated
Servicer shall nonetheless be entitled to payment or reimbursement as provided
in Section 3.08 to the extent that such payment or reimbursement relates to the
period prior to termination of such Servicer. Notwithstanding the foregoing, if
the Trustee has become the successor to a Servicer in accordance with Section
7.01, the Trustee may, if it shall be unwilling to so act, or shall, if it is
prohibited by applicable law from making Advances pursuant to

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4.01 hereof, or if it is otherwise unable to so act, appoint, or petition a
court of competent jurisdiction to appoint, any established mortgage loan
servicing institution the appointment of which does not adversely affect the
then current rating of the Certificates by each Rating Agency, as the successor
to such Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of such Servicer hereunder. Any
successor to a Servicer shall be an institution which is a FNMA or FHLMC
approved seller/servicer for first and second loans in good standing, which has
a net worth of at least$10,000,000, which is willing to service the related
Mortgage Loans and which executes and delivers to the Depositor and the Trustee
an agreement accepting such delegation and assignment, containing an assumption
by such Person of the rights, powers, duties, responsibilities, obligations and
liabilities of such Servicer (other than liabilities of such Servicer under
Section 6.03 hereof incurred prior to termination of such Servicer under Section
7.01 hereunder), with like effect as if originally named as a party to this
Agreement; provided that each Rating Agency acknowledges that its rating of the
Certificates in effect immediately prior to such assignment and delegation will
not be qualified, withdrawn or downgraded as a result of such assignment and
delegation. Pending appointment of a successor to such Servicer hereunder, the
Trustee, unless the Trustee is prohibited by law from so acting, shall, subject
to the limitations described herein, act in such capacity as hereinabove
provided. In connection with such appointment and assumption, the Trustee may
make such arrangements for the compensation of such successor out of payments on
the related Mortgage Loans as it and such successor shall agree; provided,
however, that no such compensation shall be in excess of the Servicing Fee. The
Trustee and such successor shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession. Neither the
Trustee nor any other successor servicer shall be deemed to be in default by
reason of any failure to make, or any delay in making, any distribution
hereunder or any portion thereof or any failure to perform, or any delay in
performing, any duties or responsibilities hereunder, in either case caused by
the failure of such Servicer to deliver or provide, or any delay in delivering
or providing, any cash, information, documents or records to it.

          In connection with the termination or resignation of any Servicer
hereunder, either (i) the successor servicer, including the Trustee if the
Trustee is acting as successor Servicer, shall represent and warrant that it is
a member of MERS in good standing and shall agree to comply in all material
respects with the rules and procedures of MERS in connection with the servicing
of the Mortgage Loans that are registered with MERS, in which case the
predecessor Servicer shall cooperate with the successor Servicer in causing MERS
to revise its records to reflect the transfer of servicing to the successor
Servicer as necessary under MERS' rules and regulations, or (ii) the predecessor
Servicer shall cooperate with the successor Servicer in causing MERS to execute
and deliver an assignment of Mortgage in recordable form to transfer the
Mortgage from MERS to the Trustee and to execute and deliver such other notices,
documents and other instruments as may be necessary or desirable to effect a
transfer of such Mortgage Loan or servicing of such Mortgage Loan on the MERS(R)
System to the successor Servicer. The predecessor Servicer shall file or cause
to be filed any such assignment in the appropriate recording office. The
predecessor Servicer shall bear any and all fees of MERS, costs of preparing any
assignments of Mortgage, and fees and costs of filing any assignments of
Mortgage that may be required under this subsection.

          Any successor to a Servicer shall give notice to the Mortgagors of
such change of servicer and shall, during the term of its service as servicer,
maintain in force the policy or policies that such Servicer is required to
maintain pursuant to this Agreement.

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          SECTION 7.03 Notification to Certificateholders.

          (a) Upon any termination of or appointment of a successor to a
Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders and to each Rating Agency.

          (b) Within 60 days after the occurrence of any Event of Default, the
Trustee shall transmit by mail to all Certificateholders notice of each such
Event of Default hereunder actually known to the Trustee, unless such Event of
Default shall have been cured or waived.

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                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

          SECTION 8.01 Duties of the Trustee.

          The Trustee, prior to the occurrence of an Event of Default and after
the curing of all Events of Default that may have occurred, shall undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement. In case an Event of Default has occurred and remains uncured, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs.

          The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee that are specifically required to be furnished pursuant to any
provision of this Agreement shall examine them to determine whether they are in
the form required by this Agreement; provided, however, that the Trustee shall
not be responsible for the accuracy or content of any such resolution,
certificate, statement, opinion, report, document, order or other instrument.

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

          (i) unless an Event of Default actually known to the Trustee shall
     have occurred and be continuing, the duties and obligations of the Trustee
     shall be determined solely by the express provisions of this Agreement, the
     Trustee shall not be liable except for the performance of such duties and
     obligations as are specifically set forth in this Agreement, no implied
     covenants or obligations shall be read into this Agreement against the
     Trustee and the Trustee may conclusively rely, as to the truth of the
     statements and the correctness of the opinions expressed therein, upon any
     certificates or opinions furnished to the Trustee and conforming to the
     requirements of this Agreement which it believed in good faith to be
     genuine and to have been duly executed by the proper authorities respecting
     any matters arising hereunder;

          (ii) the Trustee shall not be liable for an error of judgment made in
     good faith by a Responsible Officer or Responsible Officers of the Trustee,
     unless it shall be finally proven that the Trustee was negligent in
     ascertaining the pertinent facts; and

          (iii) the Trustee shall not be liable with respect to any action
     taken, suffered or omitted to be taken by it in good faith in accordance
     with the direction of Holders of Certificates evidencing not less than 25%
     of the Voting Rights of Certificates relating to the time, method and place
     of conducting any proceeding for any remedy available to the Trustee, or
     exercising any trust or power conferred upon the Trustee under this
     Agreement.

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          SECTION 8.02 Certain Matters Affecting the Trustee.

          Except as otherwise provided in Section 8.01:

          (i) the Trustee may request and conclusively rely upon and shall be
     protected in acting or refraining from acting upon any resolution,
     Officers' Certificate, certificate of auditors or any other certificate,
     statement, instrument, opinion, report, notice, request, consent, order,
     appraisal, bond or other paper or document believed by it to be genuine and
     to have been signed or presented by the proper party or parties and the
     Trustee shall have no responsibility to ascertain or confirm the
     genuineness of any signature of any such party or parties;

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

          (iii) the Trustee shall not be liable for any action taken, suffered
     or omitted by it in good faith and believed by it to be authorized or
     within the discretion or rights or powers conferred upon it by this
     Agreement;

          (iv) the Trustee shall not be bound to make any investigation into the
     facts or matters stated in any resolution, certificate, statement,
     instrument, opinion, report, notice, request, consent, order, approval,
     bond or other paper or document, unless requested in writing so to do by
     Holders of Certificates evidencing not less than 25% of the Voting Rights
     allocated to each Class of Certificates;

          (v) the Trustee may execute any of the trusts or powers hereunder or
     perform any duties hereunder either directly or by or through agents,
     affiliates, accountants or attorneys;

          (vi) the Trustee shall not be required to risk or expend its own funds
     or otherwise incur any financial liability in the performance of any of its
     duties or in the exercise of any of its rights or powers hereunder if it
     shall have reasonable grounds for believing that repayment of such funds or
     adequate indemnity against such risk or liability is not assured to it;

          (vii) the Trustee shall not be liable for any loss on any investment
     of funds pursuant to this Agreement (other than as issuer of the investment
     security);

          (viii) the Trustee shall not be deemed to have knowledge of an Event
     of Default until a Responsible Officer of the Trustee shall have received
     written notice thereof; and

          (ix) the Trustee shall be under no obligation to exercise any of the
     trusts, rights or powers vested in it by this Agreement or to institute,
     conduct or defend any litigation hereunder or in relation hereto at the
     request, order or direction of any of the

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     Certificateholders, pursuant to the provisions of this Agreement, unless
     such Certificateholders shall have offered to the Trustee reasonable
     security or indemnity satisfactory to the Trustee against the costs,
     expenses and liabilities which may be incurred therein or thereby.

          SECTION 8.03 Trustee Not Liable for Certificates or Mortgage Loans.

          The recitals contained herein and in the Certificates shall be taken
as the statements of the Depositor or the Seller, as the case may be, and the
Trustee assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Agreement or of the
Certificates or of any Mortgage Loan or related document, or of MERS or the
MERS(R) System, other than with respect to the Trustee's execution and
countersignature of the Certificates. The Trustee shall not be accountable for
the use or application by the Depositor or a Servicer of any funds paid to the
Depositor or a Servicer in respect of the Mortgage Loans or deposited in or
withdrawn from the Collection Account by the Depositor or a Servicer.

          SECTION 8.04 Trustee May Own Certificates.

          The Trustee in its individual or any other capacity may become the
owner or pledgee of Certificates and may transact business with the Depositor,
the Seller, any Servicer and their affiliates, with the same rights as it would
have if it were not the Trustee.

          SECTION 8.05 Trustee's Fees and Expenses.

          The Trustee, as compensation for its activities hereunder, shall be
entitled to withdraw from the Certificate Account on each Distribution Date
prior to making distributions pursuant to Section 4.02 an amount equal to the
Trustee Fee for such Distribution Date. The Trustee and any director, officer,
employee or agent of the Trustee shall be indemnified by the Depositor and the
Servicers and held harmless against any loss, liability or expense (including
reasonable attorney's fees and expenses) (i) incurred in connection with any
claim or legal action relating to (a) this Agreement, (b) the Custodial
Agreement, (c) the Certificates, or (d) the performance of any of the Trustee's
duties hereunder, other than any loss, liability or expense incurred by reason
of willful misfeasance, bad faith or negligence in the performance of any of the
Trustee's duties hereunder or incurred by reason of any action of the Trustee
taken at the direction of the Certificateholders and (ii) resulting from any
error in any tax or information return prepared by the related Servicer. Such
indemnity shall survive the termination of this Agreement or the resignation or
removal of the Trustee hereunder. Without limiting the foregoing, the Depositor
covenants and agrees, except as otherwise agreed upon in writing by the
Depositor and the Trustee, and except for any such expense, disbursement or
advance as may arise from the Trustee's negligence, bad faith or willful
misconduct, to pay or reimburse the Trustee, for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Agreement with respect to: (A) the reasonable
compensation and the expenses and disbursements of its counsel not associated
with the closing of the issuance of the Certificates, (B) the reasonable
compensation, expenses and disbursements of any accountant, engineer or
appraiser that is not regularly employed by the Trustee, to the extent that the
Trustee must engage such persons to perform acts or services hereunder and (C)
printing and engraving expenses in connection with preparing any Definitive
Certificates. Except

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as otherwise provided herein, the Trustee shall not be entitled to payment or
reimbursement for any routine ongoing expenses incurred by the Trustee in the
ordinary course of its duties as Trustee, Registrar or Tax Matters Person
hereunder or for any other expenses.

          SECTION 8.06 Eligibility Requirements for the Trustee.

          The Trustee hereunder shall at all times be a corporation or
association organized and doing business under the laws of a state or the United
States of America, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000, subject
to supervision or examination by federal or state authority and with a credit
rating which would not cause either of the Rating Agencies to reduce their
respective then current Ratings of the Certificates (or having provided such
security from time to time as is sufficient to avoid such reduction) as
evidenced in writing by each Rating Agency. If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.06 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.07. The entity serving as
Trustee may have normal banking and trust relationships with the Depositor and
its affiliates or a Servicer and its affiliates; provided, however, that such
entity cannot be an affiliate of the Seller, the Depositor or a Servicer other
than the Trustee in its role as successor to a Servicer.

          SECTION 8.07 Resignation and Removal of the Trustee.

          The Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice of resignation to the Depositor, the
Seller, each Servicer and each Rating Agency not less than 60 days before the
date specified in such notice, when, subject to Section 8.08, such resignation
is to take effect, and acceptance by a successor trustee in accordance with
Section 8.08 meeting the qualifications set forth in Section 8.06. If no
successor trustee meeting such qualifications shall have been so appointed and
have accepted appointment within 30 days after the giving of such notice of
resignation or removal (as provided below), the resigning or removed Trustee may
petition any court of competent jurisdiction for the appointment of a successor
trustee.

          If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.06 and shall fail to resign after written
request thereto by the Depositor, or if at any time the Trustee shall become
incapable of acting, or shall be adjudged as bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, or a tax
is imposed with respect to the Trust Fund by any state in which the Trustee or
the Trust Fund is located and the imposition of such tax would be avoided by the
appointment of a different trustee, then the Depositor may remove the Trustee
and appoint a successor trustee by written instrument, in triplicate, one copy
of which shall be delivered to the Trustee, one copy to each Servicer and the
Seller and one copy to the successor trustee.

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          The Holders of Certificates entitled to at least 51% of the Voting
Rights may at any time remove the Trustee and appoint a successor trustee by
written instrument or instruments, in triplicate, signed by such Holders or
their attorneys-in-fact duly authorized, one complete set of which shall be
delivered by the successor Trustee to each Servicer and the Seller, one complete
set to the Trustee so removed and one complete set to the successor so
appointed. Notice of any removal of the Trustee shall be given to each Rating
Agency by the successor trustee. All costs and expenses incurred by the Trustee
in connection with the removal of the Trustee without cause shall be reimbursed
to the Trustee from amounts on deposit in the Collection Account.

          Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 8.07 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.08.

          SECTION 8.08 Successor Trustee.

          Any successor trustee appointed as provided in Section 8.07 shall
execute, acknowledge and deliver to the Depositor and to its predecessor trustee
and each Servicer and the Seller an instrument accepting such appointment
hereunder and thereupon the resignation or removal of the predecessor trustee
shall become effective and such successor trustee, without any further act, deed
or conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally
named as trustee herein. The Depositor, each Servicer and the predecessor
trustee shall execute and deliver such instruments and do such other things as
may reasonably be required for more fully and certainly vesting and confirming
in the successor trustee all such rights, powers, duties, and obligations.

          No successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.06 and its appointment shall not
adversely affect the then current rating of the Certificates.

          Upon acceptance of appointment by a successor trustee as provided in
this Section 8.08, the Depositor shall mail notice of the succession of such
trustee hereunder to all Holders of Certificates. If the Depositor fails to mail
such notice within 10 days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be mailed at the
expense of the Depositor.

          SECTION 8.09 Merger or Consolidation of the Trustee.

          Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the business of the Trustee, shall be the successor of
the Trustee hereunder, provided that such corporation shall be eligible under
the provisions of Section 8.06 without the execution or filing of any paper or
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

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          SECTION 8.10 Appointment of Co-Trustee or Separate Trustee.

          Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Fund or property securing any Mortgage Note may at the
time be located, each Servicer and the Trustee acting jointly shall have the
power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Trustee to act as co-trustee or co-trustees jointly with
the Trustee, or separate trustee or separate trustees, of all or any part of the
Trust Fund, and to vest in such Person or Persons, in such capacity and for the
benefit of the Certificateholders, such title to the Trust Fund or any part
thereof, whichever is applicable, and, subject to the other provisions of this
Section 8.10, such powers, duties, obligations, rights and trusts as each
Servicer and the Trustee may consider necessary or desirable. If a Servicer
shall not have joined in such appointment within 15 days after the receipt by it
of a request to do so, or in the case an Event of Default shall have occurred
and be continuing, the Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor trustee under Section 8.06 and no
notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.08.

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

          (i) To the extent necessary to effectuate the purposes of this Section
     8.10, all rights, powers, duties and obligations conferred or imposed upon
     the Trustee shall be conferred or imposed upon and exercised or performed
     by the Trustee and such separate trustee or co-trustee jointly (it being
     understood that such separate trustee or co-trustee is not authorized to
     act separately without the Trustee joining in such act), except to the
     extent that under any law of any jurisdiction in which any particular act
     or acts are to be performed (whether as Trustee hereunder or as successor
     to a Servicer hereunder), the Trustee shall be incompetent or unqualified
     to perform such act or acts, in which event such rights, powers, duties and
     obligations (including the holding of title to the applicable Trust Fund or
     any portion thereof in any such jurisdiction) shall be exercised and
     performed singly by such separate trustee or co-trustee, but solely at the
     direction of the Trustee;

          (ii) No trustee hereunder shall be held personally liable by reason of
     any act or omission of any other trustee hereunder and such appointment
     shall not, and shall not be deemed to, constitute any such separate trustee
     or co-trustee as agent of the Trustee;

          (iii) The Trustee may at any time accept the resignation of or remove
     any separate trustee or co-trustee; and

          (iv) The Depositor, and not the Trustee, shall be liable for the
     payment of reasonable compensation, reimbursement and indemnification to
     any such separate trustee or co-trustee.

          Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the separate trustees and co-trustees, when
and as effectively as if given to each of

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them. Every instrument appointing any separate trustee or co-trustee shall refer
to this Agreement and the conditions of this Article VIII. Each separate trustee
and co-trustee, upon its acceptance of the trusts conferred, shall be vested
with the estates or property specified in its instrument of appointment, either
jointly with the Trustee or separately, as may be provided therein, subject to
all the provisions of this Agreement, specifically including every provision of
this Agreement relating to the conduct of, affecting the liability of, or
affording protection to, the Trustee. Every such instrument shall be filed with
the Trustee and a copy thereof given to each Servicer and the Depositor.

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

          SECTION 8.11 Tax Matters.

          It is intended that the assets with respect to which the REMIC
elections are to be made, as set forth in the Preliminary Statement, shall
constitute, and that the conduct of matters relating to each such segregated
pool of assets shall be such as to qualify such assets as, a "real estate
mortgage investment conduit" as defined in and in accordance with the Trust Fund
Provisions. In furtherance of such intention, the Trustee covenants and agrees
that it shall act as agent (and the Trustee is hereby appointed to act as agent)
on behalf of the Trust Fund and that in such capacity it shall: (a) prepare and
file, or cause to be prepared and filed, in a timely manner, a U.S. Real Estate
Mortgage Investment Conduit Income Tax Return (Form 1066 or any successor form
adopted by the Internal Revenue Service) and prepare and file or cause to be
prepared and filed with the Internal Revenue Service and applicable state or
local tax authorities income tax or information returns for each taxable year
with respect to each of REMIC 1, REMIC 2, and REMIC 3 containing such
information and at the times and in the manner as may be required by the Code or
state or local tax laws, regulations, or rules, and furnish or cause to be
furnished to Certificateholders the schedules, statements or information at such
times and in such manner as may be required thereby; (b) within thirty days of
the Closing Date, furnish or cause to be furnished to the Internal Revenue
Service, on Forms 8811 or as otherwise may be required by the Code, the name,
title, address, and telephone number of the person that the holders of the
Certificates may contact for tax information relating thereto, together with
such additional information as may be required by such form, and update such
information at the time or times in the manner required by the Code; (c) make or
cause to be made elections that the assets of each of REMIC 1, REMIC 2 and REMIC
3 be treated as a REMIC on the federal tax return for its first taxable year
(and, if necessary, under applicable state law); (d) prepare and forward, or
cause to be prepared and forwarded, to the Certificateholders and to the
Internal Revenue Service and, if necessary, state tax authorities, all
information returns and reports as and when required to be provided to them in
accordance with the REMIC Provisions, including without limitation, the
calculation of any original issue discount using the Prepayment Assumption; (e)
provide information necessary for the computation of tax imposed on the transfer
of a Residual Certificate to a Person that is not a Permitted Transferee, or an
agent (including a broker, nominee or other middleman) of a Non-Permitted
Transferee, or a pass-through entity in which a

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Non-Permitted Transferee is the record holder of an interest (the reasonable
cost of computing and furnishing such information may be charged to the Person
liable for such tax); (f) to the extent that they are under its control, conduct
matters relating to such assets at all times that any Certificates are
outstanding so as to maintain the status of REMIC 1, REMIC 2 and REMIC 3 as a
REMIC under the REMIC Provisions; (g) not knowingly or intentionally take any
action or omit to take any action that would cause the termination of the REMIC
status of REMIC 1, REMIC 2 or REMIC 3; (h) pay, from the sources specified in
the last paragraph of this Section 8.11, the amount of any federal or state tax,
including prohibited transaction taxes as described below, imposed on the Trust
Fund prior to its termination when and as the same shall be due and payable (but
such obligation shall not prevent the Trustee or any other appropriate Person
from contesting any such tax in appropriate proceedings and shall not prevent
the Trustee from withholding payment of such tax, if permitted by law, pending
the outcome of such proceedings); (i) ensure that federal, state or local income
tax or information returns shall be signed by the Trustee or such other person
as may be required to sign such returns by the Code or state or local laws,
regulations or rules; (j) maintain records relating to the Trust Fund, including
but not limited to the income, expenses, assets and liabilities thereof and the
fair market value and adjusted basis of the assets determined at such intervals
as may be required by the Code, as may be necessary to prepare the foregoing
returns, schedules, statements or information; and (k) as and when necessary and
appropriate, represent the Trust Fund in any administrative or judicial
proceedings relating to an examination or audit by any governmental taxing
authority, request an administrative adjustment as to any taxable year of the
Trust Fund, enter into settlement agreements with any governmental taxing
agency, extend any statute of limitations relating to any tax item of the Trust
Fund, and otherwise act on behalf of the Trust Fund in relation to any tax
matter or controversy involving it.

          To the extent that they are under its control, each Servicer shall
conduct matters relating to the assets of each REMIC at all times that any
Certificates are outstanding so as to maintain the status of REMIC 1, REMIC 2
and REMIC 3 as a REMIC under the REMIC Provisions. No Servicer shall knowingly
or intentionally take any action that would cause the termination of the REMIC
status of REMIC 1, REMIC 2 or REMIC 3.

          In order to enable the Trustee to perform its duties as set forth
herein, the Depositor shall provide, or cause to be provided, to the Trustee
within ten (10) days after the Closing Date all information or data that the
Trustee requests in writing and determines to be relevant for tax purposes to
the valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows of
the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide
to the Trustee promptly upon written request therefor any such additional
information or data that the Trustee may, from time to time, reasonably request
in order to enable the Trustee to perform its duties as set forth herein. The
Depositor hereby indemnifies the Trustee for any losses, liabilities, damages,
claims or expenses of the Trustee arising from any errors or miscalculations of
the Trustee that result from any failure of the Depositor to provide, or to
cause to be provided, accurate information or data to the Trustee on a timely
basis.

          In the event that any tax is imposed on "prohibited transactions" of
the Trust Fund as defined in Section 860F(a)(2) of the Code, on the "net income
from foreclosure property" of the Trust Fund as defined in Section 860G(c) of
the Code, on any contribution to the Trust Fund after the Startup Day pursuant
to Section 860G(d) of the Code, or any other tax is imposed, if not paid as

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otherwise provided for herein, such tax shall be paid by (i) the Trustee, if any
such other tax arises out of or results from a breach by the Trustee of any of
its obligations under this Agreement, (ii) the related Servicer or the Seller,
in the case of any such minimum tax, if such tax arises out of or results from a
breach by such Servicer or the Seller of any of their obligations under this
Agreement or (iii) the Seller, if any such tax arises out of or results from the
Seller's obligation to repurchase a related Mortgage Loan pursuant to Section
2.02 or 2.03 or (iv) in all other cases, or in the event that the Trustee, the
related Servicer or Seller fails to honor its obligations under the preceding
clauses (i), (ii) or (iii), any such tax will be paid with amounts otherwise to
be distributed to the Certificateholders, as provided in Section 4.02.

          The Trustee shall treat the Reserve Fund as an outside reserve fund
within the meaning of Treasury Regulation 1.860G-2(h) that is owned by the Class
X-1 Certificateholder and that is not an asset of the REMICs. The Trustee shall
treat the rights of the Class A-1, Class A-2, Class M-1, Class M-2 and Class B-1
Certificateholders to receive payments from the Reserve Fund as rights in an
interest rate cap contract written by the Class X-1 Certificateholder in favor
of the Class A-1, Class A-2, Class M-1, Class M-2 and Class B-1
Certificateholders. Thus, each Certificate other than the Class X-1 Certificates
shall be treated as representing ownership of not only REMIC Regular Interests,
but also ownership of an interest in an interest rate cap contract. For purposes
of determining the issue price of the REMIC Regular interests, the Trustee shall
assume that the interest rate cap contract has a value of $5,000.

          Neither a Servicer nor the Trustee shall enter into any arrangement by
which any of REMIC 1, REMIC 2 or REMIC 3 will receive a fee or other
compensation for services nor permit any of REMIC 1, REMIC 2 or REMIC 3 to
receive any income from assets other than "qualified mortgages" as defined in
Section 860G(a)(3) of the Code or "permitted investments" as defined in Section
860G(a)(5) of the Code.

          SECTION 8.12 Periodic Filings.

          The Trustee shall, on behalf of the Trust Fund, cause to be filed with
the Securities and Exchange Commission any periodic reports required to be filed
under the provisions of the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Securities and Exchange Commission thereunder. In
connection with the preparation and filing of such periodic reports, the
Depositor and each Servicer shall timely provide to the Trustee all material
information available to them which is required to be included in such reports.
The Trustee shall have no liability with respect to any failure to properly
prepare or file such periodic reports resulting from or relating to the
Trustee's inability or failure to obtain any information not resulting from its
own negligence or willful misconduct.

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                                   ARTICLE IX

                                   TERMINATION

          SECTION 9.01 Termination upon Liquidation or Purchase of the Mortgage
                       Loans.

          Subject to Section 9.03, the rights, obligations and responsibilities
of the Depositor, the Seller, the Servicers and the Trustee created hereunder
with respect to the Trust Fund shall terminate upon the earlier of (a) the
purchase by the Optional Termination Holder of all Mortgage Loans (and REO
Properties) remaining at the price equal to the sum of (A) 100% of the Stated
Principal Balance of each Mortgage Loan (other than in respect of REO Property)
plus one month's accrued interest thereon at the applicable Mortgage Rate and
(B) the lesser of (x) the appraised value of any REO Property as determined by
the higher of two appraisals completed by two independent appraisers selected by
the Depositor at the expense of the Depositor and (y) the Stated Principal
Balance of each Mortgage Loan related to any REO Property, in each case plus
accrued and unpaid interest thereon at the applicable Mortgage Rate and (b) the
later of (i) the maturity or other liquidation (or any Advance with respect
thereto) of the last Mortgage Loan remaining in the Trust Fund and the
disposition of all REO Property and (ii) the distribution to Certificateholders
of all amounts required to be distributed to them pursuant to this Agreement. In
no event shall the trusts created hereby continue beyond the expiration of 21
years from the death of the survivor of the descendants of Joseph P. Kennedy,
the late Ambassador of the United States to the Court of St. James's, living on
the date hereof. The right to repurchase all Mortgage Loans and REO Properties
pursuant to clause (a) above shall be conditioned upon the aggregate Stated
Principal Balance of the Mortgage Loans and the appraised value of the REO
Properties at the time of any such repurchase, aggregating less than ten percent
of the Aggregate Loan Balance of the Mortgage Loans as of the Cut-off Date.

          SECTION 9.02 Final Distribution on the Certificates.

          If on any Determination Date, the Trustee determines that there are no
Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
than the funds in the Collection Accounts and Certificate Account, the Trustee
shall promptly send a final distribution notice to each Certificateholder. If
the Optional Termination Holder above elects to terminate the Trust Fund
pursuant to Section 9.01, at least 20 days prior to the date notice is to be
mailed to the affected Certificateholders such Person shall notify the Servicers
and the Trustee of the date the Depositor intends to terminate the Trust Fund
and of the applicable repurchase price of the Mortgage Loans and REO Properties.

          Notice of any termination of the Trust Fund, specifying the
Distribution Date on which Certificateholders shall surrender their Certificates
for payment of the final distribution and cancellation, shall be given promptly
by the Trustee by letter to Certificateholders mailed not earlier than the 10th
day and not later than the 15th day of the month next preceding the month of
such final distribution. Any such notice shall specify (a) the Distribution Date
upon which final distribution on the Certificates will be made upon presentation
and surrender of Certificates at the office therein designated, (b) the amount
of such final distribution, (c) the location of the office or agency at which

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such presentation and surrender must be made, and (d) that the Record Date
otherwise applicable to such Distribution Date is not applicable, distributions
being made only upon presentation and surrender of the Certificates at the
office therein specified. The Trustee shall give such notice to each Rating
Agency at the time such notice is given to Certificateholders.

          Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to the Certificateholders of each Class, in each case on
the final Distribution Date and in the order set forth in Section 4.02, in the
case of the Certificateholders, in proportion to their respective Percentage
Interests, with respect to Certificateholders of the same Class, an amount equal
to (i) as to each Class of Regular Certificates, the Certificate Balance thereof
plus accrued interest thereon (or on their Notional Amount, if applicable) in
the case of an interest-bearing Certificate and (ii) as to the Residual
Certificates, the amount, if any, which remains on deposit in the Collection
Accounts (other than the amounts retained to meet claims) after application
pursuant to clause (i) above.

          In the event that any affected Certificateholders shall not surrender
Certificates for cancellation within six months after the date specified in the
above mentioned written notice, the Trustee shall give a second written notice
to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice all the applicable Certificates shall not
have been surrendered for cancellation, the Trustee may take appropriate steps,
or may appoint an agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates, and the cost
thereof shall be paid out of the funds and other assets which remain a part of
the Trust Fund. If within one year after the second notice all Certificates
shall not have been surrendered for cancellation, the Class A-R
Certificateholders shall be entitled to all unclaimed funds and other assets of
the Trust Fund which remain subject hereto and the Trustee shall be discharged
from all further liability with respect to the Certificates and this Agreement.

          SECTION 9.03 Additional Termination Requirements.

          (a) In the event that the Optional Termination Holder exercises its
purchase option with respect to the Mortgage Loans as provided in Section 9.01,
at such time as the Mortgage Loans are so purchased, the Trust Fund shall be
terminated in accordance with the following additional requirements, unless the
Trustee has been supplied with an Opinion of Counsel, at the expense of the
Depositor, to the effect that the failure to comply with the requirements of
this Section 9.03 will not (i) result in the imposition of taxes on "prohibited
transactions" on any REMIC as defined in Section 860F of the Code, or (ii) cause
REMIC 1, REMIC 2 or REMIC 3 to fail to qualify as a REMIC at any time that any
Certificates are outstanding:

               (1)  Within 90 days prior to the final Distribution Date set
                    forth in the notice given by the Trustee under Section 9.02,
                    the Depositor shall prepare and the Trustee, at the expense
                    of the Depositor, shall adopt a plan of complete liquidation
                    within the meaning of Section 860F(a)(4) of the Code which,
                    as evidenced by an Opinion of Counsel (which opinion shall
                    not be an expense of the Trustee, the

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                    Tax Matters Person or the Trust Fund), meets
                    the requirements of a qualified liquidation;

               (2)  Within 90 days after the time of adoption of such a plan of
                    complete liquidation, the Trustee shall sell all of the
                    assets of the Trust Fund to the Depositor for cash in
                    accordance with Section 9.01; and

                         On the date specified for final payment of the
                    Certificates, the Trustee shall, after payment of any
                    unreimbursed Advances, Servicing Advances, Servicing Fees or
                    other fee compensation payable to each Servicer pursuant to
                    this Agreement, make final distributions of principal and
                    interest on the Certificates in accordance with Section 4.02
                    and distribute or credit, or cause to be distributed or
                    credited, to the Holders of the Residual Certificates all
                    cash on hand after such final payment (other than the cash
                    retained to meet claims), and the Trust Fund (and any REMIC)
                    shall terminate at that time.

          (b) The Trustee as agent for REMIC 1, REMIC 2 and REMIC 3 hereby
agrees to adopt and sign such a plan of complete liquidation upon the written
request of the Depositor, and the receipt of the Opinion of Counsel referred to
in Section 9.03(a)(1) and to take such other action in connection therewith as
may be reasonably requested by the Depositor.

          (c) By their acceptance of the Certificates, the Holders thereof
hereby authorize the Depositor to prepare and the Trustee to adopt and sign a
plan of complete liquidation.

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                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

          SECTION 10.01 Amendment.

          This Agreement may be amended from time to time by the Depositor, each
Servicer, the Seller and the Trustee without the consent of any of the
Certificateholders (i) to cure any ambiguity or mistake, (ii) to correct any
defective provision herein or to supplement any provision herein which may be
inconsistent with any other provision herein, (iii) to add to the duties of the
Depositor, the Seller or any Servicer, (iv) to add any other provisions with
respect to matters or questions arising hereunder or (v) to modify, alter,
amend, add to or rescind any of the terms or provisions contained in this
Agreement; provided that any action pursuant to clauses (iv) or (v) above shall
not, as evidenced by an Opinion of Counsel (which Opinion of Counsel shall not
be an expense of the Trustee or the Trust Fund, but shall be at the expense of
the party proposing such amendment), adversely affect in any material respect
the interests of any Certificateholder; provided, however, that no such Opinion
of Counsel shall be required if the Person requesting the amendment obtains a
letter from each Rating Agency stating that the amendment would not result in
the downgrading or withdrawal of the respective ratings then assigned to the
Certificates; it being understood and agreed that any such letter in and of
itself will not represent a determination as to the materiality of any such
amendment and will represent a determination only as to the credit issues
affecting any such rating. The Trustee, the Depositor, the Seller and the
Servicers also may at any time and from time to time amend this Agreement
without the consent of the Certificateholders to modify, eliminate or add to any
of its provisions to such extent as shall be necessary or helpful to (i)
maintain the qualification of REMIC 1, REMIC 2 or REMIC 3 as a REMIC under the
Code, (ii) avoid or minimize the risk of the imposition of any tax on the Trust
Fund pursuant to the Code that would be a claim at any time prior to the final
redemption of the Certificates or (iii) comply with any other requirements of
the Code, provided that the Trustee has been provided an Opinion of Counsel,
which opinion shall be an expense of the party requesting such opinion but in
any case shall not be an expense of the Trustee or the Trust Fund, to the effect
that such action is necessary or helpful to, as applicable, (i) maintain such
qualification, (ii) avoid or minimize the risk of the imposition of such a tax
or (iii) comply with any such requirements of the Code.

          This Agreement may also be amended from time to time by the Depositor,
the Servicers, the Seller and the Trustee with the consent of the Holders of a
Majority in Interest of each Class of Certificates affected thereby for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement or of modifying in any manner the rights of
the Holders of Certificates; provided, however, that no such amendment shall (i)
reduce in any manner the amount of, or delay the timing of, payments required to
be distributed on any Certificate without the consent of the Holder of such
Certificate, (ii) adversely affect in any material respect the interests of the
Holders of any Class of Certificates in a manner other than as described in
clause (i), without the consent of the Holders of Certificates of such Class
evidencing, as to such Class, Percentage Interests aggregating 66%, or (iii)
reduce the aforesaid percentages of Certificates the Holders of which are
required to consent to any such amendment, without the consent of the Holders of
all such Certificates then outstanding.

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          Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel, which opinion shall not be an expense of the
Trustee or the Trust Fund, but shall be at the expense of the party preparing
such amendment, to the effect that such amendment will not cause the imposition
of any tax on the Trust Fund or the Certificateholders or cause REMIC 1, REMIC 2
or REMIC 3 to fail to qualify as a REMIC at any time that any Certificates are
outstanding.

          Promptly after the execution of any amendment to this Agreement, the
Trustee shall furnish written notification of the substance or a copy of such
amendment to each Certificateholder if the consent of Certificateholders was
required and each Rating Agency.

          It shall not be necessary for the consent of Certificateholders under
this Section 10.01 to approve the particular form of any proposed amendment, but
it shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.

          Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel (which Opinion shall not be an
expense of the Trustee or the Trust Fund), satisfactory to the Trustee that (i)
such amendment is permitted and is not prohibited by this Agreement and that all
requirements for amending this Agreement have been complied with; and (ii)
either (A) the amendment does not adversely affect in any material respect the
interests of any Certificateholder or (B) the conclusion set forth in the
immediately preceding clause (A) is not required to be reached pursuant to this
Section 10.01.

          SECTION 10.02 Recordation of Agreement; Counterparts.

          This Agreement is subject to recordation in all appropriate public
offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated, and in any other appropriate public recording office or elsewhere,
such recordation to be effected by the Depositor at its expense, but only upon
direction by the Trustee accompanied by an Opinion of Counsel to the effect that
such recordation materially and beneficially affects the interests of the
Certificateholders.

          For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.

          SECTION 10.03 Governing Law.

          THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES

                                       128

<PAGE>

HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

          SECTION 10.04 [Reserved]

          SECTION 10.05 Notices.

          (a) The Trustee shall use its best efforts to promptly provide notice
to each Rating Agency with respect to each of the following of which it has
actual knowledge:

          (i) Any material change or amendment to this Agreement;

          (ii) The occurrence of any Event of Default that has not been cured;

          (iii) The resignation or termination of any Servicer or the Trustee
     and the appointment of any successor;

          (iv) The repurchase or substitution of Mortgage Loans pursuant to
     Sections 2.02 and 2.03; and

          (v) The final payment to Certificateholders.

          In addition, the Trustee shall promptly furnish to each Rating Agency
copies of the following to the extent such items are in its possession:

          (i) Each report to Certificateholders described in Section 4.06 and
     3.19;

          (ii) Each annual statement as to compliance described in Section 3.16;

          (iii) Each annual independent public accountants' servicing report
     described in Section 3.17; and

          (iv) Any notice of a purchase of a Mortgage Loan pursuant to Section
     2.02, 2.03 or 3.11.

          All directions, demands and notices hereunder shall be in writing and
shall be deemed to have been duly given when delivered to (a) in the case of the
Depositor and the Seller, Eleven Madison Avenue, 4th Floor, New York, New York
10010, Attention: Helaine Hebble (with a copy to Credit Suisse First Boston
Mortgage Securities Corp., Eleven Madison Avenue, 4th Floor, New York, New York
10010, Attention: Office of the General Counsel), (b) in the case of the
Trustee, the Corporate Trust Office or such other address as the Trustee may
hereafter furnish to the Depositor and the Servicers, (c) in the case of
Wilshire, 1776 SW Madison, Portland, Oregon 97205 Attention: Jay Memmott, with a
copy to Stoel Rives LLP, 900 SW Fifth, Portland, Oregon 97204 Attention: Gary
Barnum or such other address as may be hereafter furnished in writing to the
Depositor and the Trustee by the Servicer, (d) in the case of each of the Rating
Agencies, the address specified therefor in the definition corresponding to the
name of such Rating Agency and (e) in the

                                       129

<PAGE>

case of Vesta, Vesta Servicing, L.P., 9600 Great Hills Trail, Suite 300-E,
Austin, Texas, Attention: Jeff Neal. Notices to Certificateholders shall be
deemed given when mailed, first class postage prepaid, to their respective
addresses appearing in the Certificate Register.

          SECTION 10.06 Severability of Provisions.

          If any one or more of the covenants, agreements, provisions or terms
of this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

          SECTION 10.07 Assignment.

          Notwithstanding anything to the contrary contained herein, except as
provided in Sections 6.02 and 6.04, this Agreement may not be assigned by any
Servicer without the prior written consent of the Trustee and Depositor;
provided, however, that neither the Depositor nor the Trustee shall consent to
any such assignment unless each Rating Agency has confirmed in writing that such
assignment will not cause a reduction or withdrawal of the ratings then assigned
by it to any Class of Certificates.

          SECTION 10.08 Limitation on Rights of Certificateholders.

          The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the trust created hereby, nor entitle such
Certificateholder's legal representative or heirs to claim an accounting or to
take any action or commence any proceeding in any court for a petition or
winding up of the trust created hereby, or otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.

          No Certificateholder shall have any right to vote (except as provided
herein) or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything herein
set forth or contained in the terms of the Certificates be construed so as to
constitute the Certificateholders from time to time as partners or members of an
association; nor shall any Certificateholder be under any liability to any third
party by reason of any action taken by the parties to this Agreement pursuant to
any provision hereof.

          No Certificateholder shall have any right by virtue or by availing
itself of any provisions of this Agreement to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Agreement,
unless such Holder previously shall have given to the Trustee a written notice
of an Event of Default and of the continuance thereof, as herein provided, and
unless the Holders of Certificates evidencing not less than 25% of the Voting
Rights evidenced by the Certificates shall also have made written request to the
Trustee to institute such action, suit or proceeding in its own name as Trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses, and liabilities to be incurred therein
or thereby, and the Trustee, for 60 days after its receipt of such notice,
request and offer of indemnity shall have neglected or refused to institute any
such action, suit or proceeding; it being

                                       130

<PAGE>

understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Trustee, that no
one or more Holders of Certificates shall have any right in any manner whatever
by virtue or by availing itself or themselves of any provisions of this
Agreement to affect, disturb or prejudice the rights of the Holders of any other
of the Certificates, or to obtain or seek to obtain priority over or preference
to any other such Holder or to enforce any right under this Agreement, except in
the manner herein provided and for the common benefit of all Certificateholders.
For the protection and enforcement of the provisions of this Section 10.08, each
and every Certificateholder and the Trustee shall be entitled to such relief as
can be given either at law or in equity.

          SECTION 10.09 Certificates Nonassessable and Fully Paid.

          It is the intention of the Depositor that Certificateholders shall not
be personally liable for obligations of the Trust Fund, that the interests in
the Trust Fund represented by the Certificates shall be nonassessable for any
reason whatsoever, and that the Certificates, upon due authentication thereof by
the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

                                       131

<PAGE>

          IN WITNESS WHEREOF, the Depositor, the Trustee, the Seller and the
Servicers have caused their names to be signed hereto by their respective
officers thereunto duly authorized as of the day and year first above written.

                                        CREDIT SUISSE FIRST BOSTON MORTGAGE
                                        SECURITIES CORP.,
                                        as Depositor

                                        By:___________________________________
                                        Name:
                                        Title:

                                        THE CHASE MANHATTAN BANK,
                                        as Trustee

                                        By:___________________________________
                                        Name:
                                        Title:

                                        DLJ MORTGAGE CAPITAL, INC.,
                                        as Seller

                                        By:___________________________________
                                        Name:
                                        Title:

                                        WILSHIRE CREDIT CORPORATION,
                                        as a Servicer

                                        By:___________________________________
                                        Name:
                                        Title:

                                        VESTA SERVICING, L.P.,
                                        as a Servicer

                                        By:___________________________________
                                        Name:
                                        Title:

                          [NOTARY PAGES TO BE ATTACHED]

                                       132

<PAGE>

                                    EXHIBIT A

                          [FORM OF CLASS A CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

[THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY
DISTRIBUTIONS IN RESPECT OF PRINCIPAL.]

                                       A-1

<PAGE>

Certificate No. [____]                       [____]% Interest Rate

Cut-off Date:                                Initial Certificate Balance of this
August 1, 2001                               Certificate ("Denomination"):
                                             $[____________]

First Distribution Date:                     Initial [Certificate Balances] of
September 25, 2001                           all Certificates of this Class:
                                             $[____________]

Maturity Date:                               CUSIP: [_________________]
[____________]

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                           CSFB Trust Series 2001-S18
            CSFB Mortgage Pass-Through Certificates, Series 2001-S18
                                 Class [_______]

     evidencing a percentage  interest in the distributions  allocable to
     the  Certificates  of the  above-referenced  Class with respect to a
     Trust Fund consisting  primarily of a pool of conventional  mortgage
     loans (the "Mortgage Loans") secured by fixed rate, first and second
     lien residential mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

     Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Certificate Balance at any time may be less than
the Certificate Balance as set forth herein. This Certificate is payable solely
from the assets of the Trust and does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Servicers
or the Trustee referred to below or any of their respective affiliates. This
Certificate and the Mortgage Loans are not guaranteed or insured by any
governmental agency or instrumentality.

     This certifies that Cede & Co. is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the denomination of
this Certificate by the aggregate of the denominations of all Certificates of
the Class to which this Certificate belongs) in certain monthly distributions
with respect to a Trust Fund consisting primarily of the Mortgage Loans
deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as a servicer ("Wilshire"), Vesta Servicing, L.P. as a servicer
("Vesta") and The Chase Manhattan Bank as trustee (the "Trustee"). To the extent
not defined herein, the capitalized terms used herein have the meanings assigned
to such terms in the Agreement. This Certificate is issued under and is subject
to the terms, provisions and conditions of the Agreement, to which

                                       A-2

<PAGE>

Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

     This Certificate shall not be entitled to any benefit under the Agreement
or be valid for any purpose unless manually countersigned by an authorized
signatory of the Trustee.

                                       A-3

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: August 29, 2001

                                               THE CHASE MANHATTAN BANK,
                                               as Trustee

                                               By ______________________________

Countersigned:

By ______________________________
     Authorized Signatory of
     THE CHASE MANHATTAN BANK,
     as Trustee

                                       A-4

<PAGE>

                                    EXHIBIT B

                        [FORM OF SUBORDINATE CERTIFICATE]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS
DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

[NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE, OR, IF THE PURCHASER IS AN INSURANCE COMPANY, A
REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO
HEREIN OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE PROVISIONS OF THE
AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY
HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN
EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OFFICER'S
CERTIFICATE OR THE OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED
ABOVE SHALL BE VOID AND OF NO EFFECT.]

[THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED ("THE ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE

WITHOUT REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION
EXEMPTED FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH
THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.]

                                       B-1

<PAGE>

[THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY
DISTRIBUTIONS IN RESPECT OF PRINCIPAL.]

                                       B-2

<PAGE>

Certificate No. [____]                     [____]% Interest Rate

Cut-off Date:                              Initial Certificate Balance of this
August 1, 2001                             Certificate ("Denomination"):
                                           $[____________]

First Distribution Date:                   Initial [Certificate Balances] of all
September 25, 2001                         Certificate of this Class:
                                           $[____________]

Maturity Date:                             CUSIP: [_________________]
[____________]

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                           CSFB Trust Series 2001-S18
            CSFB Mortgage Pass-Through Certificates, Series 2001-S18
                                 Class [_______]

     evidencing a percentage  interest in the distributions  allocable to
     the  Certificates  of the  above-referenced  Class with respect to a
     Trust Fund consisting  primarily of a pool of conventional  mortgage
     loans (the "Mortgage Loans") secured by fixed rate, first and second
     lien residential mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

     Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Certificate Balance at any time may be less than
the Certificate Balance as set forth herein. This Certificate is payable solely
from the assets of the Trust and does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Servicers
or the Trustee referred to below or any of their respective affiliates. This
Certificate and the Mortgage Loans are not guaranteed or insured by any
governmental agency or instrumentality.

     This certifies that [Cede & Co.] is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the denomination of
this Certificate by the aggregate of the denominations of all Certificates of
the Class to which this Certificate belongs) in certain monthly distributions
with respect to a Trust Fund consisting primarily of the Mortgage Loans
deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as a servicer ("Wilshire"), Vesta Servicing, L.P. as a servicer
("Vesta") and The Chase Manhattan Bank as trustee (the "Trustee"). To the extent
not defined herein, the capitalized terms used herein have the meanings assigned
to such terms in the Agreement. This Certificate is issued under and is subject
to the terms, provisions and conditions of the Agreement, to which

                                       B-3

<PAGE>

Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.

     [No transfer of a Certificate of this Class shall be made unless the
Trustee shall have received either (i) a representation letter from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan subject to Section 406 of ERISA or Section 4975 of the
Code, or a person acting on behalf of any such plan or arrangement or using the
assets of any such plan or arrangement to effect such transfer, which
representation letter shall not be an expense of the Trustee or the Trust Fund,
(ii) if the purchaser is an insurance company, a representation that the
purchaser is an insurance company which is purchasing such Certificates with
funds contained in an "insurance company general account" (as such term is
defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE
95-60")) and that the purchase and holding of such Certificates satisfy the
requirements for exemptive relief under Sections I and III of PTCE 95-60 or
(iii) in the case of any such Certificate presented for registration in the name
of an employee benefit plan subject to ERISA, or Section 4975 of the Code (or
comparable provisions of any subsequent enactments), or a trustee of any such
plan or any other person acting on behalf of any such plan or arrangement, or
using such plan's or arrangement's assets, an Opinion of Counsel satisfactory to
the Trustee to the effect that the purchase or holding of such Certificate will
not result in the assets of the Trust Fund being deemed to be "plan assets" and
subject to the prohibited transaction provisions of ERISA and the Code and will
not subject the Trustee or the Servicer to any obligation in addition to those
undertaken in this Agreement, which Opinion of Counsel shall not be an expense
of the Trustee or the Trust Fund. Notwithstanding anything else to the contrary
herein, any purported transfer of a Certificate to or on behalf of an employee
benefit plan subject to ERISA or to the Code without the Opinion of Counsel
satisfactory to the Trustee as described above shall be void and of no effect.]

     [No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such laws. In the event that a
transfer is to be made in reliance upon an exemption from the Securities Act and
such laws, in order to assure compliance with the Securities Act and such laws,
the Certificateholder desiring to effect such transfer and such
Certificateholder's prospective transferee shall each certify to the Trustee in
writing the facts surrounding the transfer. In the event that such a transfer is
to be made within three years from the date of the initial issuance of
Certificates pursuant hereto, there shall also be delivered (except in the case
of a transfer pursuant to Rule 144A of the Securities Act) to the Trustee an
Opinion of Counsel that such transfer may be made pursuant to an exemption from
the Securities Act and such state securities laws, which Opinion of Counsel
shall not be obtained at the expense of the Trustee, the Seller, the Servicers
or the Depositor. The Holder hereof desiring to effect such transfer shall, and
does hereby agree to, indemnify the Trustee and the Depositor 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.]

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

                                       B-4

<PAGE>

     This Certificate shall not be entitled to any benefit under the Agreement
or be valid for any purpose unless manually countersigned by an authorized
signatory of the Trustee.

                                       B-5

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: August 29, 2001

                                               THE CHASE MANHATTAN BANK,
                                               as Trustee

                                               By _____________________________

Countersigned:

By _____________________________
    Authorized Signatory of
    THE CHASE MANHATTAN BANK,
    as Trustee

                                       B-6

<PAGE>

                                    EXHIBIT C

                         [FORM OF RESIDUAL CERTIFICATE]

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE, OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO
THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF
OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION
OF COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF
NO EFFECT.

                                                        C-1

<PAGE>

Certificate No. [____]                       [____]% Interest Rate

Cut-off Date:                                Initial Certificate Balance of this
August 1, 2001                                Certificate ("Denomination"):
                                             $[____________]

First Distribution Date:                     Initial [Certificate Balances] of
September 25, 2001                           all Certificates of this Class:
                                             $[____________]

Maturity Date:                               CUSIP: [_________________]
[____________]

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                           CSFB Trust Series 2001-S18
            CSFB Mortgage Pass-Through Certificates, Series 2001-S18
                                 Class [_______]

     evidencing the  distributions  allocable to the Class R Certificates
     with  respect  to a Trust  Fund  consisting  primarily  of a pool of
     conventional  mortgage loans (the "Mortgage Loans") secured by fixed
     rate, first and second lien residential mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

     Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Certificate Balance at any time may be less than
the Certificate Balance as set forth herein. This Certificate is payable solely
from the assets of the Trust and does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Servicers
or the Trustee referred to below or any of their respective affiliates. This
Certificate and the Mortgage Loans are not guaranteed or insured by any
governmental agency or instrumentality.

     This certifies that [______________________] is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
denomination of this Certificate by the aggregate of the denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions with respect to a Trust Fund consisting primarily of the Mortgage
Loans deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as a servicer ("Wilshire"), Vesta Servicing, L.P. as a servicer
("Vesta") and The Chase Manhattan Bank as trustee (the "Trustee"). To the extent
not defined herein, the capitalized terms used herein have the meanings assigned
to such terms in the Agreement. This Certificate is issued under and is subject
to the terms, provisions and conditions

                                       C-2

<PAGE>

of the Agreement, to which Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which such Holder is bound.

     Any distribution of the proceeds of any remaining assets of the Trust Fund
will be made only upon presentment and surrender of this Class R Certificate at
the Corporate Trust Office or the office or agency maintained by the Trustee in
New York, New York.

     No transfer of a Class R Certificate shall be made unless the Trustee shall
have received either (i) a representation letter from the transferee of such
Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that such transferee is not an employee benefit plan
subject to Section 406 of ERISA or Section 4975 of the Code, or a person acting
on behalf of any such plan or arrangement or using the assets of any such plan
or arrangement to effect such transfer, which representation letter shall not be
an expense of the Trustee or the Trust Fund or (ii) in the case of any such
Class R Certificate presented for registration in the name of an employee
benefit plan subject to ERISA, or Section 4975 of the Code (or comparable
provisions of any subsequent enactments), or a trustee of any such plan or any
other person acting on behalf of any such plan or arrangement, or using such
plan's or arrangement's assets, an Opinion of Counsel satisfactory to the
Trustee to the effect that the purchase or holding of such Class R Certificate
will not result in the assets of the Trust Fund being deemed to be "plan assets"
and subject to the prohibited transaction provisions of ERISA and the Code and
will not subject the Trustee to any obligation in addition to those undertaken
in this Agreement, which Opinion of Counsel shall not be an expense of the
Trustee or the Trust Fund. Notwithstanding anything else to the contrary herein,
any purported transfer of a Class R Certificate to or on behalf of an employee
benefit plan subject to ERISA or to the Code without the Opinion of Counsel
satisfactory to the Trustee as described above shall be void and of no effect.

     Each Holder of this Class R Certificate will be deemed to have agreed to be
bound by the restrictions of the Agreement, including but not limited to the
restrictions that (i) each person holding or acquiring any Ownership Interest in
this Class R Certificate must be a Permitted Transferee, (ii) no Ownership
Interest in this Class R Certificate may be transferred without delivery to the
Trustee of (a) a transfer affidavit of the proposed transferee and (b) a
transfer certificate of the transferor, each of such documents to be in the form
described in the Agreement, (iii) each person holding or acquiring any Ownership
Interest in this Class R Certificate must agree to require a transfer affidavit
and to deliver a transfer certificate to the Trustee as required pursuant to the
Agreement, (iv) each person holding or acquiring an Ownership Interest in this
Class R Certificate must agree not to transfer an Ownership Interest in this
Class R Certificate if it has actual knowledge that the proposed transferee is
not a Permitted Transferee and (v) any attempted or purported transfer of any
Ownership Interest in this Class R Certificate in violation of such restrictions
will be absolutely null and void and will vest no rights in the purported
transferee.

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

     This Certificate shall not be entitled to any benefit under the Agreement
or be valid for any purpose unless manually countersigned by an authorized
signatory of the Trustee.

                                       C-3

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: August 29, 2001

                                               THE CHASE MANHATTAN BANK,
                                               as Trustee

                                               By _____________________________

Countersigned:

By _____________________________
     Authorized Signatory of
     THE CHASE MANHATTAN BANK,
     as Trustee

                                       C-4

<PAGE>

                                    EXHIBIT D

                      [FORM OF NOTIONAL AMOUNT CERTIFICATE]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

[THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS
DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.]

[NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO
THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF
OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE
OFFICER'S CERTIFICATE OR THE OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE AS
DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.]

THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY
DISTRIBUTIONS IN RESPECT OF PRINCIPAL.

                                       D-1

<PAGE>

Certificate No. [____]                    [____]% Interest Rate

Cut-off Date:                             Initial Certificate Balance of this
August 1, 2001                            Certificate ("Denomination"):
                                          $[____________]

First Distribution Date:                  Initial [Certificate Balances] of all
September 25, 2001                        Certificates of this Class:
                                          $[____________]

Maturity Date:                            CUSIP: [_________________]
[____________]

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                           CSFB Trust Series 2001-S18
            CSFB Mortgage Pass-Through Certificates, Series 2001-S18
                                 Class [_______]

     evidencing a percentage  interest in the distributions  allocable to
     the  Certificates  of the  above-referenced  Class with respect to a
     Trust Fund consisting  primarily of a pool of conventional  mortgage
     loans (the "Mortgage Loans") secured by fixed rate, first and second
     lien residential mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

     This Certificate is payable solely from the assets of the Trust and does
not evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Servicers or the Trustee referred to below or any of
their respective affiliates. This Certificate and the Mortgage Loans are not
guaranteed or insured by any governmental agency or instrumentality.

     This certifies that Cede & Co., is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the denomination of
this Certificate by the aggregate of the denominations of all Certificates of
the Class to which this Certificate belongs) in certain monthly distributions
with respect to a Trust Fund consisting primarily of the Mortgage Loans
deposited by Credit Suisse First Boston Mortgage Securities Corp. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as a servicer ("Wilshire"), Vesta Servicing, L.P. as a servicer
("Vesta") and The Chase Manhattan Bank as trustee (the "Trustee"). To the extent
not defined herein, the capitalized terms used herein have the meanings assigned
to such terms in the Agreement. This Certificate is issued under and is subject
to the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                                       D-2

<PAGE>

     Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

     [No transfer of a Certificate of this Class shall be made unless the
Trustee shall have received either (i) a representation letter from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan subject to Section 406 of ERISA or Section 4975 of the
Code, or a person acting on behalf of any such plan or arrangement or using the
assets of any such plan or arrangement to effect such transfer, which
representation letter shall not be an expense of the Trustee or the Trust Fund
or (ii) in the case of any such Certificate presented for registration in the
name of an employee benefit plan subject to ERISA, or Section 4975 of the Code
(or comparable provisions of any subsequent enactments), or a trustee of any
such plan or any other person acting on behalf of any such plan or arrangement,
or using such plan's or arrangement's assets, an Opinion of Counsel satisfactory
to the Trustee to the effect that the purchase or holding of such Certificate
will not result in the assets of the Trust Fund being deemed to be "plan assets"
and subject to the prohibited transaction provisions of ERISA and the Code and
will not subject the Trustee or the Servicer to any obligation in addition to
those undertaken in this Agreement, which Opinion of Counsel shall not be an
expense of the Trustee or the Trust Fund. Notwithstanding anything else to the
contrary herein, any purported transfer of a Certificate to or on behalf of an
employee benefit plan subject to ERISA or to the Code without the Opinion of
Counsel satisfactory to the Trustee as described above shall be void and of no
effect.]

     This Certificate shall not be entitled to any benefit under the Agreement
or be valid for any purpose unless manually countersigned by an authorized
signatory of the Trustee.

                                       D-3

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: August 29, 2001

                                               THE CHASE MANHATTAN BANK,
                                               as Trustee

                                               By ______________________________

Countersigned:

By __________________________________
     Authorized Signatory of
     THE CHASE MANHATTAN BANK,
     as Trustee

                                       D-4

<PAGE>

                                    EXHIBIT E

                          [FORM OF CLASS P CERTIFICATE]

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO
THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF
OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION
OF COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF
NO EFFECT.

                                       E-1

<PAGE>

Certificate No. [____]                      [____]% Interest Rate

Cut-off Date:                               Initial Certificate Balance of this
August 1, 2001                              Certificate ("Denomination"):
                                            $[____________]

First Distribution Date:                    Initial [Certificate Balances] of
September 25, 2001                          all Certificates of this Class:
                                            $[____________]

Maturity Date:                              CUSIP: [_________________]
[____________]

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                           CSFB Trust Series 2001-S18
            CSFB Mortgage Pass-Through Certificates, Series 2001-S18
                                 Class [_______]

     evidencing a percentage  interest in the distributions  allocable to
     the  Certificates  of the  above-referenced  Class with respect to a
     Trust Fund consisting  primarily of a pool of conventional  mortgage
     loans (the "Mortgage Loans") secured by fixed rate, first and second
     lien residential mortgage loans.

       Credit Suisse First Boston Mortgage Securities Corp., as Depositor

     Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Certificate Principal Balance of this Class P
Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class P
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicers or the Trustee referred to below or
any of their respective affiliates.

     This certifies that _________________ is the registered owner of the
Percentage Interest evidenced by this Class P Certificate (obtained by dividing
the Denomination of this Class P Certificate by the Original Class Certificate
Principal Balance) in certain distributions with respect to a Trust consisting
primarily of the Mortgage Loans deposited by Credit Suisse First Boston Mortgage
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of August 1, 2001 (the "Agreement") among the
Depositor, DLJ Mortgage Capital Inc., as seller ("DLJMC"), Wilshire Credit
Corporation, as a servicer ("Wilshire"), Vesta Servicing, L.P., as a servicer
("Vesta") and The Chase Manhattan Bank, as trustee (the "Trustee"). To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Class P Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Class P Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                                       E-2

<PAGE>

     This Certificate does not have a pass-through rate and will be entitled to
distributions only to the extent set forth in the Agreement.

     No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Seller, the Servicers or the Depositor; or there shall be
delivered to the Trustee and the Depositor a transferor certificate by the
transferor and an investment letter shall be executed by the transferee. The
Holder hereof desiring to effect such transfer shall, and does hereby agree to,
indemnify the Trustee and the Depositor against any liability that may result if
the transfer is not so exempt or is not made in accordance with such federal and
state laws.

     No transfer of a Class P Certificate shall be made unless the Trustee shall
have received either (i) a representation letter from the transferee of such
Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that such transferee is not an employee benefit plan
subject to Section 406 of ERISA or Section 4975 of the Code, or a person acting
on behalf of any such plan or arrangement or using the assets of any such plan
or arrangement to effect such transfer, which representation letter shall not be
an expense of the Trustee or the Trust Fund or (ii) in the case of any such
Class P Certificate presented for registration in the name of an employee
benefit plan subject to ERISA, or Section 4975 of the Code (or comparable
provisions of any subsequent enactments), or a trustee of any such plan or any
other person acting on behalf of any such plan or arrangement, or using such
plan's or arrangement's assets, an Opinion of Counsel satisfactory to the
Trustee to the effect that the purchase or holding of such Class P Certificate
will not result in the assets of the Trust Fund being deemed to be "plan assets"
and subject to the prohibited transaction provisions of ERISA and the Code and
will not subject the Trustee to any obligation in addition to those undertaken
in this Agreement, which Opinion of Counsel shall not be an expense of the
Trustee or the Trust Fund. Notwithstanding anything else to the contrary herein,
any purported transfer of a Class P Certificate to or on behalf of an employee
benefit plan subject to ERISA or to the Code without the Opinion of Counsel
satisfactory to the Trustee as described above shall be void and of no effect.

     Reference is hereby made to the further provisions of this Class P
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

     This Class P Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                       E-3

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: August 29, 2001

                                               THE CHASE MANHATTAN BANK,
                                               as Trustee

                                               By ______________________________

Countersigned:

By __________________________________
     Authorized Signatory of
     THE CHASE MANHATTAN BANK,
     as Trustee

                                       E-4

<PAGE>

                                    EXHIBIT F

                         FORM OF REVERSE OF CERTIFICATES

                                       F-1

<PAGE>

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                           CSFB Trust Series 2001-S18
            CSFB Mortgage Pass-Through Certificates, Series 2001-S18
                                 Class [_______]

     This Certificate is one of a duly authorized issue of Certificates
designated as Credit Suisse First Boston Mortgage Securities Corp., Mortgage
Pass-Through Certificates, of the Series specified on the face hereof (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust Fund created by the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the funds on deposit in the Certificate Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and
immunities of the Trustee.

     Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing on the first
Distribution Date specified on the face hereof, to the Person in whose name this
Certificate is registered at the close of business on the applicable Record Date
in an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to Holders of Certificates
of the Class to which this Certificate belongs on such Distribution Date
pursuant to the Agreement. [The Record Date applicable to each Distribution Date
is the last Business Day of the month next preceding the month of such
Distribution Date.][The Record Date applicable to each Distribution Date is the
Business Day immediately preceding the related Distribution Date; provided that
if this Certificate is not a Book-Entry Certificate, then the Record Date
applicable to each Distribution Date is the last Business Day of the month next
preceding such Distribution Date.]

     Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Trustee in writing at least five Business Days prior
to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or, if
not, by check mailed by first class mail to the address of such
Certificateholder appearing in the Certificate Register. The final distribution
on each Certificate will be made in like manner, but only upon presentment and
surrender of such Certificate at the Corporate Trust Office or such other
location specified in the notice to Certificateholders of such final
distribution.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicers, the Seller and the Trustee with the consent of
the Holders of Certificates affected by such amendment evidencing

                                       F-2

<PAGE>

the requisite Percentage Interest, as provided in the Agreement. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange therefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the Corporate Trust Office or the office or agency maintained by the
Trustee in New York, New York, accompanied by a written instrument of transfer
in form satisfactory to the 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 Certificates of the same Class in authorized
denominations and evidencing the same aggregate Percentage Interest in the Trust
Fund will be issued to the designated transferee or transferees.

     The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     The Depositor, the Servicers, the Seller and the Trustee and any agent of
the Depositor or the Trustee may treat the Person in whose name this Certificate
is registered as the owner hereof for all purposes, and the Seller, the
Depositor, the Trustee, or any such agent shall be affected by any notice to the
contrary.

     On any Distribution Date on which the sum of the aggregate Stated Principal
Balance of the Mortgage Loans and the appraised value of the REO Properties at
the time of repurchase is less than 10% of the sum of the Aggregate Loan Balance
of the Mortgage Loans, the Optional Termination Holder will have the option to
repurchase, in whole, from the Trust Fund all remaining Mortgage Loans and REO
Properties at a purchase price determined as provided in the Agreement. In the
event that no such optional termination occurs, the obligations and
responsibilities created by the Agreement will terminate upon the later of the
maturity or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan remaining in the Trust Fund and the distribution to
Certificateholders of all amounts required to be distributed pursuant to the
Agreement. In no event, however, will the trust created by the Agreement
continue beyond the expiration of 21 years from the death of the last survivor
of the descendants living at the date of the Agreement of a certain person named
in the Agreement.

     Any term used herein that is defined in the Agreement shall have the
meaning assigned in the Agreement, and nothing herein shall be deemed
inconsistent with that meaning.

                                       F-3

<PAGE>

                                   ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name and address including postal zip code of
assignee)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust Fund.

I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

________________________________________________________________________________
Dated:

                                       _________________________________________
                                       Signature by or on behalf of assignor

                            DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ____________________________________________________________,
for the account of ____________________________________________________________,
account number ___________________________, or, if mailed by check, to ________
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________
_______________________________________________________________________________
This information is provided by ____________________________, the assignee named
above, or _____________________________, as its agent.

                                       F-4

<PAGE>

                                    EXHIBIT G

                   FORM OF INITIAL CERTIFICATION OF CUSTODIAN

                                               August __, 2001

__________________________________
__________________________________

Cut-off Date Principal Balance:
$_________________

The Chase Manhattan Bank,
as  Trustee, for the
CSFB Mortgage Pass-Through Certificates, Series 2001-S18
450 West 33rd Street, 14th Floor
New York, New York 10001-2697

                    Re:  Custodial Agreement, dated as of August 1, 2001, among
                         The Chase Manhattan Bank, as Trustee and Bank One Trust
                         Company, N.A., as Custodian

Ladies and Gentlemen:

     In accordance with the provisions of Section 4 of the above-referenced
Custodial Agreement, the undersigned, as the Custodian, hereby certifies as to
each Mortgage Loan in the Mortgage Loan Schedule that (i) it has received: the
original Mortgage Note and Assignment of Mortgage with respect to each Mortgage
Loan identified on the Mortgage Loan Schedule attached hereto as Exhibit A and
(ii) such Mortgage Note has been reviewed by it and appears regular on its face
and relates.

     The Custodian makes no representations as to: (i) the validity, legality,
enforceability, sufficiency, due authorization or genuineness of any of the
documents contained in each Custodial File or of any of the Mortgage Loans or
(ii) the collectability, insurability, effectiveness or suitability of any such
Mortgage Loan.

     The Custodian hereby confirms that it is holding each such Mortgage Note
and Assignment of Mortgage as agent and bailee of, and custodian for the
exclusive use and benefit, and subject to the sole direction, of the Trustee
pursuant to the terms and conditions of the Custodial Agreement.

     This Trust Receipt and Initial Certification is not divisible or
negotiable.

     The Custodian will accept and act on instructions with respect to the
Mortgage Loans subject hereto upon surrender of this Trust Receipt and Initial
Certification at its office at 2220 Chemsearch Boulevard, Suite 150, Irving,
Texas 75062, Attention: Document Custodian.

                                       G-1

<PAGE>

         Capitalized terms used herein shall have the meaning ascribed to them
in the Custodial Agreement.

                                               BANK ONE TRUST COMPANY, N.A.,
                                               as Custodian

                                               By:______________________________
                                               Name:
                                               Title:

                                       G-2

<PAGE>

                                    EXHIBIT H

                    FORM OF FINAL CERTIFICATION OF CUSTODIAN

Trust Receipt #_________

Cut-off Date Principal Balance
$_________________
[To be addressed to the Trustee of record]
__________________________________
__________________________________

                    Re:  Custodial Agreement, dated as of August 1, 2001, among
                         The Chase Manhattan Bank, as Trustee and Bank One Trust
                         Company, N.A., as Custodian

Ladies and Gentlemen:

     In accordance with the provisions of Section 6 of the above-referenced
Custodial Agreement, the undersigned, as the Custodian, hereby certifies that as
to each Mortgage Loan listed on the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or any Mortgage Loan listed on the attachment hereto)
it has reviewed the Custodial Files and has determined that (i) all documents
required to be delivered to it pursuant to Sections 2(i)-(x) of the Custodial
Agreement are in its possession; (ii) such documents have been reviewed by it
and appear regular on their face and related to such Mortgage Loan; (iii) all
Assignments of Mortgage or intervening assignments of mortgage, as applicable,
have been submitted for recording in the jurisdictions in which recording is
necessary; and (iv) each Mortgage Note has been endorsed as provided in Section
2(ii) of the Custodial Agreement and each Mortgage has been assigned in
accordance with Section 2(iv) and (v) of the Custodial Agreement. The Custodian
makes no representations as to: (i) validity, legality, enforceability,
sufficiency, due authorization or genuineness of any of the documents contained
in each Custodial File or of any of the Mortgage Loans, or (ii) The
collectability, insurability, effectiveness or suitability of any such Mortgage
Loan.

     The Custodian hereby confirms that it is holding each such Custodial File
as agent and bailee of, and custodian for the exclusion use and benefit, and
subject to the sole direction, of Trustee pursuant to the terms and conditions
of the Custodial Agreement.

     This Trust Receipt and Final Certification is not divisible or negotiable.

     The Custodian will accept and act on instructions with respect to the
Mortgage Loans subject hereto upon surrender of this Trust Receipt and Final
Certification at its office at 2220 Chemsearch Boulevard, Suite 150, Irving,
Texas 75062, Attention: Document Custodian.

                                       H-1

<PAGE>

     Capitalized terms used herein shall have the meaning ascribed to them in
the Custodial Agreement.

                                              BANK ONE TRUST COMPANY, N.A.,
                                              as Custodian

                                              By:______________________________
                                              Name:
                                              Title:

                                       H-2

<PAGE>

                                    EXHIBIT I

                               TRANSFER AFFIDAVIT

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                           CSFB Trust Series 2001-S18
            CSFB Mortgage Pass-Through Certificates, Series 2001-S18
                                 Class [_______]

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

     The undersigned, being first duly sworn, deposes and says as follows:

     1. The undersigned is an officer of , The proposed Transferee of an
Ownership Interest in a Class R Certificate (The "Certificate") issued pursuant
to the Pooling and Servicing Agreement, (The "Agreement"), relating to the
above-referenced Series, among Credit Suisse First Boston Mortgage Securities
Corp. as depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire
Credit Corporation as a servicer ("Wilshire"), Vesta Servicing, L.P. as a
servicer ("Vesta") and The Chase Manhattan Bank as trustee (The "Trustee").
Capitalized terms used, but not defined herein or in Exhibit 1 hereto, shall
have the meanings ascribed to such terms in the Agreement. The Transferee has
authorized the undersigned to make this affidavit on behalf of the Transferee.

     2. The Transferee is, as of the date hereof, and will be, as of the date of
the Transfer, a Permitted Transferee. The Transferee is acquiring its Ownership
Interest in the Certificate either (i) for its own account or (ii) as nominee,
trustee or agent for another Person and has attached hereto an affidavit from
such Person in substantially the same form as this affidavit. The Transferee has
no knowledge that any such affidavit is false.

     3. The Transferee has been advised of, and understands that (i) a tax will
be imposed on Transfers of the Certificate to Persons that are not Permitted
Transferees; (ii) such tax will be imposed on the transferor, or, if such
Transfer is through an agent (which includes a broker, nominee or middleman) for
a Person that is not a Permitted Transferee, on the agent; and (iii) The Person
otherwise liable for the tax shall be relieved of liability for the tax if the
subsequent Transferee furnished to such Person an affidavit that such subsequent
Transferee is a Permitted Transferee and, at the time of Transfer, such Person
does not have actual knowledge that the affidavit is false.

     4. The Transferee has been advised of, and understands that a tax will be
imposed on a "pass-through entity" holding the Certificate if at any time during
the taxable year of the pass-through entity a Person that is not a Permitted
Transferee is the record holder of an interest in such entity. The Transferee
understands that such tax will not be imposed for any period with respect to
which the record holder furnishes to the pass-through entity an affidavit that
such record holder is a Permitted Transferee and the pass-through entity does
not have actual knowledge that such affidavit is false. (For this purpose, a
"pass-through entity" includes a regulated investment company, a real estate
investment trust or common trust fund, a partnership, trust or estate, and
certain

                                       I-1

<PAGE>

cooperatives and, except as may be provided in Treasury Regulations, persons
holding interests in pass-through entities as a nominee for another Person.)

     5. The Transferee has reviewed the provisions of Section 5.02(c) of the
Agreement (attached hereto as Exhibit 2 and incorporated herein by reference)
and understands the legal consequences of the acquisition of an Ownership
Interest in the Certificate including, without limitation, The restrictions on
subsequent Transfers and the provisions regarding voiding the Transfer and
mandatory sales. The Transferee expressly agrees to be bound by and to abide by
the provisions of Section 5.02(c) of the Agreement and the restrictions noted on
the face of the Certificate. The Transferee understands and agrees that any
breach of any of the representations included herein shall render the Transfer
to the Transferee contemplated hereby null and void.

     6. The Transferee agrees to require a Transfer Affidavit from any Person to
whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, The
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as EXHIBIT J to the Agreement (a "Transferor Certificate") to the
effect that such Transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.

     7. The Transferee does not have the intention to impede the assessment or
collection of any tax legally required to be paid with respect to the
Certificate.

     8. The Transferee's taxpayer identification number is [_____________].

     9. The Transferee is a United States Person.

     10. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of proposed Treasury regulations
promulgated pursuant to the Code and that the transferor of a noneconomic
residual interest will remain liable for any taxes due with respect to the
income on such residual interest, unless no significant purpose of the transfer
was to impede the assessment or collection of tax.

     11. The Transferee is (a) not an employee benefit plan that is subject to
ERISA or a plan that is subject to Section 4975 of the Code, and the Transferee
is not acting on behalf of such a plan or (b) an employee benefit plan that is
subject to ERISA or a plan that is subject to Section 4975 of the Code, and the
Transferee is not acting on behalf of such a plan and will provide an Opinion of
Counsel in accordance with the provisions of Agreement.

                                  *     *     *

                                       I-2

<PAGE>

     IN WITNESS WHEREOF, The Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this _____ day of _____________, 20___.

                                              Print Name of Transferee

                                              By:______________________________
                                              Name:
                                              Title:

[Corporate Seal]

ATTEST:

__________________________________
[Assistant] Secretary

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

     Subscribed and sworn before me this ______ day of _______________, 20___.

                                             __________________________________
                                             NOTARY PUBLIC

                                             My Commission expires the ______
                                             day of _________________, 20___.

                                       I-3

<PAGE>

                                    EXHIBIT 1
                                       to
                                    EXHIBIT I

CERTAIN DEFINITIONS

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

     "Permitted Transferee": Any person other than (i) The United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(1) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in section 1381(a)(2)(C) of the Code, (v) a Person that is not a
citizen or resident of the United States, a corporation, partnership, or other
entity created or organized in or under the laws of the United States, any State
thereof or the District of Columbia, or an estate whose income from sources
without the United States is includible in gross income for federal income tax
purposes regardless of its connection with the conduct of a trade or business
within the United States or a trust if a court within the United States is able
to exercise primary supervision over the administration of the trust and one or
more United States persons have the authority to control all substantial
decisions of the trust unless such Person has furnished the transferor and the
Trustee with a duly completed Internal Revenue Service Form W-8ECI or successor
form, and (vi) any other Person so designated by the Depositor based upon an
Opinion of Counsel that the Transfer of an Ownership Interest in a Residual
Certificate to such Person may cause the Trust Fund hereunder to fail to qualify
as a REMIC at any time that the Certificates are outstanding. The terms "United
States," "State" and "International Organization" shall have the meanings set
forth in section 7701 of the Code or successor provisions. A corporation will
not be treated as an instrumentality of the United States or of any State or
political subdivision thereof for these purposes if all of its activities are
subject to tax and, with the exception of the Federal Home Loan Mortgage
Corporation, a majority of its board of directors is not selected by such
government unit.

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

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

     "Transferee": Any Person who is acquiring by Transfer any Ownership
Interest in a Residual Certificate.

                                      I-1-1

<PAGE>

                                    EXHIBIT 2
                                       to
                                    EXHIBIT I

                        Section 5.02(C) of the Agreement
                        --------------------------------

         [TO BE INSERTED WHEN POOLING AND SERVICING AGREEMENT FINALIZED]

                                      I-2-1

<PAGE>

                                    EXHIBIT J

                         FORM OF TRANSFEROR CERTIFICATE

__________, 200__

Credit Suisse First Boston Mortgage Securities Corp.
11 Madison Avenue, 4th Floor
New York, New York 10010
Attention: Helaine Hebble

The Chase Manhattan Bank
450 West 33rd Street, 16th Floor
New York, New York 10001

          Re:  Credit Suisse First Boston Mortgage Securities Corp.,
               CSFB Trust Series 2001-S18 CSFB
               Mortgage Pass-Through Certificates, Series 2001-S18, Class [___]

Ladies and Gentlemen:

     In connection with our disposition of the above Certificates we certify
that (a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (The "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action which would result in, a violation of Section 5 of the Act and (c)
to the extent we are disposing of a Class A-R Certificate, we have no knowledge
the Transferee is not a Permitted Transferee.

                                               Very truly yours,

                                               _________________________________
                                               Print Name of Transferor

                                               By:______________________________
                                               Authorized Officer

                                       J-1

<PAGE>

                                    EXHIBIT K

                    FORM OF INVESTMENT LETTER (NON-RULE 144A)

__________, 200__

Credit Suisse First Boston Mortgage Securities Corp.
11 Madison Avenue, 4th Floor
New York, New York 10010
Attention: Helaine Hebble

The Chase Manhattan Bank
450 West 33rd Street, 16th Floor
New York, New York 10001

      Re:  Credit Suisse First Boston Mortgage Securities Corp.,
           CSFB Trust Series 2001-S18
           CSFB Mortgage Pass-Through Certificates, Series 2001-S18, Class [___]

Ladies and Gentlemen:

     In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (The "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
insitutional "accredited investor," as defined in Regulation D 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) either (i) we are not an employee
benefit plan that is subject to the Employee Retirement Income Security Act of
1974, as amended, or a plan or arrangement that is subject to Section 4975 of
the Internal Revenue Code of 1986, as amended, nor are we acting on behalf of
any such plan or arrangement nor are we using the assets of any such plan or
arrangement to effect such acquisition or (ii) in the case of our acquisition of
a Class B-2 Certificate, if we are an insurance company, a representation that
we are an insurance company which is purchasing such Certificates with funds
contained in an "insurance company general account" (as such term is defined in
Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and
that the purchase and holding of such Certificates are covered under PTCE 95-60,
(e) if an insurance company, we are purchasing the Certificates with funds
contained in an "insurance company general account" (as defined in Section V(e)
of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and our purchase
and holding of the Certificates are covered under PTCE 95-60, (f) 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 (h) below), (g) 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

                                       K-1

<PAGE>

person with respect thereto, or taken any other action which would result in a
violation of Section 5 of the Act, and (h) 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 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 Pooling and
Servicing Agreement.

                                               Very truly yours,

                                               _________________________________
                                               Print Name of Transferee

                                               By: _____________________________
                                               Authorized Officer

                                       K-2

<PAGE>

                                    EXHIBIT L

                            FORM OF RULE 144A LETTER

____________, 200__
Credit Suisse First Boston Mortgage Securities Corp.
11 Madison Avenue, 4th Floor
New York, New York 10010
Attention: Helaine Hebble

The Chase Manhattan Bank
450 West 33rd Street, 16th Floor
New York, New York 10001

       Re: Credit Suisse First Boston Mortgage Securities Corp.,
           CSFB Trust Series 2001-S18
           CSFB Mortgage Pass-Through Certificates, Series 2001-S18, Class [___]

Ladies and Gentlemen:

     In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (The "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are not an employee benefit plan that is
subject to the Employee Retirement Income Security Act of 1974, as amended, or a
plan or arrangement that is subject to Section 4975 of the Internal Revenue Code
of 1986, as amended, nor are we acting on behalf of any such plan or arrangement
nor using the assets of any such plan or arrangement to effect such acquisition,
(e) in the case of our acquisition of a Class B-2 Certificate, if an insurance
company, we are purchasing the Certificates with funds contained in an
"insurance company general account" (as defined in Section V(e) of Prohibited
Transaction Class Exemption 95-60 ("PTCE 95-60")) and our purchase and holding
of the Certificates are covered under PTCE 95-60, (f) we have not, nor has
anyone acting on our behalf offered, transferred, pledged, sold or otherwise
disposed of the Certificates, any interest in the Certificates or any other
similar security to, or solicited any offer to buy or accept a transfer, pledge
or other disposition of the Certificates, any interest in the Certificates or
any other similar security from, or otherwise approached or negotiated with
respect to the Certificates, any interest in the Certificates or any other
similar security with, any person in any manner, or made any general
solicitation by means of general advertising or in any other manner, or taken
any other action, that would constitute a distribution of the Certificates under
the Act or that would render the disposition of the Certificates a violation of
Section 5 of the Act or require registration pursuant thereto, nor will act, nor
has authorized or will authorize any person to act, in such manner with respect
to the Certificates, (g) we are a "qualified institutional buyer" as that term
is defined in Rule 144A under

                                       L-1

<PAGE>

the Act ("Rule 144A") and have completed either of the forms of certification to
that effect attached hereto as Annex 1 or Annex 2, (h) we are aware that the
sale to us is being made in reliance on Rule 144A, and (i) we are acquiring the
Certificates for our own account or for resale pursuant to Rule 144A and
further, understand that such Certificates may be resold, pledged or transferred
only (A) 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 (B) pursuant to another exemption
from registration under the Act.

                                               Very truly yours,

                                               _________________________________
                                               Print Name of Transferee

                                               By:______________________________
                                               Authorized Officer

                                       L-2

<PAGE>

ANNEX 1 TO EXHIBIT L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

          [For Transferees Other Than Registered Investment Companies]

     The undersigned (The "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

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

     2. In connection with purchases by the Buyer, The Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because (i) The Buyer owned and/or
invested on a discretionary basis $___________1 in securities (except for the 1
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A and (ii)
The Buyer satisfies the criteria in the category marked below.

     ___ Corporation, etc. The Buyer is a corporation (other than a bank,
     savings and loan association or similar institution), Massachusetts or
     similar business trust, partnership, or charitable organization described
     in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

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

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

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

_________________

     1    Buyer must own and/or invest on a discretionary basis at least
          $100,000,000 in securities unless Buyer is a dealer, and, in that
          case, Buyer must own and/or invest on a discretionary basis at least
          $10,000,000 in securities.

                                      L-1-1

<PAGE>

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

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

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

     ___ Investment Advisor. The Buyer is an investment advisor registered under
     the Investment Advisors Act of 1940.

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

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

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

     4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, The Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
The securities may be valued at market. Further, in determining such aggregate
amount, The Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

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

                                      L-1-2

<PAGE>

     6. Until the date of purchase of the Rule 144A Securities, The Buyer will
notify each of the parties to which this certification is made of any changes in
the information and conclusions herein. Until such notice is given, The Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, The Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                            Print Name of Buyer

                                            By:_________________________________
                                            Name:
                                            Title:

                                            Date:_______________________________

                                      L-1-3

<PAGE>

ANNEX 2 TO EXHIBIT L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

           [For Transferees That are Registered Investment Companies]

     The undersigned (The "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

1. As indicated below, The undersigned is the President, Chief Financial Officer
or Senior Vice President of the Buyer or, if the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser. 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, as amended and (ii)
as marked below, The Buyer alone, or the Buyer's Family of Investment Companies,
owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year. For
purposes of determining the amount of securities owned by the Buyer or the
Buyer's Family of Investment Companies, The cost of such securities was used,
except (i) where the Buyer or the Buyer's Family of Investment Companies reports
its securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
The securities may be valued at market.

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

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

     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) securities issued or
          guaranteed by the U.S. or any instrumentality thereof, (iii) bank
          deposit notes and certificates of deposit, (iv) loan participations,
          (v) repurchase

                                      L-2-1

<PAGE>

          agreements, (vi) securities owned but subject to a repurchase
          agreement and (vii) currency, interest rate and commodity swaps.

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

     6.   Until the date of purchase of the Certificates, The undersigned will
          notify the parties listed in the Rule 144A Transferee Certificate to
          which this certification relates of any changes in the information and
          conclusions herein. Until such notice is given, The Buyer's purchase
          of the Certificates will constitute a reaffirmation of this
          certification by the undersigned as of the date of such purchase.

                                               _________________________________
                                               Print Name of Buyer or Adviser

                                               By: _____________________________
                                               Name:
                                               Title:

                                               IF AN ADVISER:

                                               _________________________________
                                               Print Name of Buyer

                                               Date: ___________________________

                                      L-2-2

<PAGE>

                                    EXHIBIT M

                               REQUEST FOR RELEASE
                                  (for Trustee)

              CREDIT SUISSE FIRST BOSTON MORTGAGE SECURITIES CORP.
                           CSFB Trust Series 2001-S18
            CSFB Mortgage Pass-Through Certificates, Series 2001-S18

LOAN INFORMATION
----------------

Name of Mortgagor:                 _____________________________________________

Servicer
Loan No.:                          _____________________________________________

TRUSTEE
-------

Name:

Address:                           _____________________________________________
                                   _____________________________________________
                                   _____________________________________________

Trustee
Mortgage File No.:

     The undersigned Servicer hereby acknowledges that it has received from Bank
One, National Association, as Custodian for the Holders of Mortgage Pass-Through
Certificates, of the above-referenced Series, The documents referred to below
(The "Documents"). All capitalized terms not otherwise defined in this Request
for Release shall have the meanings given them in the Pooling and Servicing
Agreement (The "Pooling and Servicing Agreement") relating to the
above-referenced Series among Credit Suisse First Boston Mortgage Securities
Corp. as depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire
Credit Corporation as a servicer ("Wilshire"), Vesta Servicing, L.P. as a
servicer ("Vesta") and The Chase Manhattan Bank as trustee (The "Trustee").

( )  Mortgage Note dated _____________________, _______, in the original
     principal sum of $___________________, made by ____________________.
     payable to, or endorsed to the order of, The Trustee.

( )  Mortgage recorded on ________________ as instrument no. ______________ in
     the County Recorder's Office of the County of ___________________, State of
     ___________ in book/reel/docket _________________ of official records at
     page/image _____________.

                                       M-1

<PAGE>

( )  Deed of Trust recorded on _____________ as instrument no. ______________ in
     the County Recorder's Office of the County of _______________, State of
     ______________ in book/reel/docket _____________________ of official
     records at page/image _________.

( )  Assignment of Mortgage or Deed of Trust to the Trustee, recorded on
     _________ as instrument no. ______________ in the County Recorder's Office
     of the County of ______, State of ________________ in book/reel/docket
     _______________ of official records at page/image _______________.

( )  Other documents, including any amendments, assignments or other assumptions
     of the Mortgage Note or Mortgage.

     ( )

     ( )

     ( )

     ( )

     The undersigned Servicer hereby acknowledges and agrees as follows:

          (1) Such Servicer shall hold and retain possession of the Documents in
          trust for the benefit of the Trustee, solely for the purposes provided
          in the Agreement.

          (2) Such Servicer shall not cause or knowingly permit the Documents to
          become subject to, or encumbered by, any claim, liens, security
          interest, charges, writs of attachment or other impositions nor shall
          the Servicer, if applicable, assert or seek to assert any claims or
          rights of setoff to or against the Documents or any proceeds thereof.

          (3) Such Servicer shall return each and every Document previously
          requested from the Mortgage File to the Custodian when the need
          therefor no longer exists, unless the Mortgage Loan relating to the
          Documents has been liquidated and the proceeds thereof have been
          remitted to the Certificate Account and except as expressly provided
          in the Agreement.

          (4) The Documents and any proceeds thereof, including any proceeds of
          proceeds, coming into the possession or control of such Servicer shall
          at all times be earmarked for the account of the Custodian, and such
          Servicer shall keep the Documents and any proceeds separate and
          distinct from all other property in such Servicer's possession,
          custody or control.

                                            [Servicer]

                                             By ________________________________

                                       M-2

<PAGE>

                                            Its ________________________________

Date: ____________, 20__

                                       M-3

<PAGE>

                                    EXHIBIT N

                                   [RESERVED]

                                       N-1

<PAGE>

                                   EXHIBIT O-1

                        COLLECTION ACCOUNT CERTIFICATION

                             [           ], 20__

     [Servicer's name] hereby certifies that it has established the account
described below as a Collection Account pursuant to Section 3.05 of the Pooling
and Servicing Agreement, dated as of August 1, 2001, among Credit Suisse First
Boston Mortgage Securities Corp. as depositor, DLJ Mortgage Capital, Inc. as
seller ("DLJMC"), Wilshire Credit Corporation as a servicer ("Wilshire"), Vesta
Servicing, L.P. as a servicer ("Vesta") and The Chase Manhattan Bank as trustee
(The "Trustee").

Title of Account:   [Servicer's Name], in trust for the Holders of Credit Suisse
                    First Boston Mortgage Securities Corp., CSFB Mortgage
                    Pass-Through Certificates, Series 2001-S18.

Account Number: ______________

Address of officer or branch
of the Company at which
Account is maintained:

                       _____________________________
                       _____________________________
                       _____________________________

                       [Servicer's Name], AS SERVICER

                       By:__________________________

                       Name:________________________

                       Title:_______________________

                                      O-1-1

<PAGE>

                                   EXHIBIT O-2

                       COLLECTION ACCOUNT LETTER AGREEMENT

                              [         ], 20__

To: __________________________
    __________________________
    __________________________
         (The "Depository")

     As Servicer under the Pooling and Servicing Agreement, dated as of August
1, 2001, among Credit Suisse First Boston Mortgage Securities Corp. as
depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as a servicer ("Wilshire"), Vesta Servicing, L.P. as a servicer
("Vesta") and The Chase Manhattan Bank as trustee (The "Trustee") (The
"Agreement"), we hereby authorize and request you to establish an account, as a
Collection Account pursuant to Section 3.05 of the Agreement, to be designated
as "[Servicer's Name], in trust for the Holders of Credit Suisse First Boston
Mortgage Securities Corp., CSFB Mortgage Pass-Through Certificates, Series
2001-S18." All deposits in the account shall be subject to withdrawal therefrom
by order signed by the Servicer. This letter is submitted to you in duplicate.
Please execute and return one original to us.

                                           [Servicer's Name], AS SERVICER

                                           By:________________________________

                                           Name:______________________________

                                           Title:_____________________________

                                           Date:______________________________

                                      O-2-1

<PAGE>

The undersigned, as Depository, hereby certifies that the above described
account has been established under Account Number _________ at the office of the
Depository indicated above and agrees to honor withdrawals on such account as
provided above. The full amount deposited at any time in the account will be
insured up to applicable limits by the Federal Deposit Insurance Corporation
through the Bank Insurance Fund ("BIF") or the Savings Association Insurance
Fund ("SAIF").

                                             __________________________________
                                             Depository

                                             By:_______________________________

                                             Name:_____________________________

                                             Title:____________________________

                                             Date:_____________________________

                                      O-2-2

<PAGE>

                                   EXHIBIT P-1

                          ESCROW ACCOUNT CERTIFICATION

                               [          ], 20__

     [Servicer's Name] hereby certifies that it has established the account
described below as an Escrow Account pursuant to Section 3.06 of the Pooling and
Servicing Agreement, dated as of August 1, 2001, among Credit Suisse First
Boston Mortgage Securities Corp. as depositor, DLJ Mortgage Capital, Inc. as
seller ("DLJMC"), Wilshire Credit Corporation as a servicer ("Wilshire"), Vesta
Servicing, L.P. as a servicer ("Vesta") and The Chase Manhattan Bank as trustee
(The "Trustee").

Title of Account:   "Credit Suisse First Boston Mortgage Securities Corp., CSFB
                    Mortgage Pass-Through Certificates, Series 2001-S18"

Account Number:     _______________________________

Address of officer or branch
of the Company at which
Account is maintained:

                    _______________________________
                    _______________________________
                    _______________________________

                    [Servicer's Name], AS SERVICER

                    By:____________________________

                    Name:__________________________

                    Title:_________________________

                                      P-1-1

<PAGE>

                                   EXHIBIT P-2

                         ESCROW ACCOUNT LETTER AGREEMENT

                               [           ], 20__

To:  _______________________________
     _______________________________
     _______________________________
     (The "Depository")

     As Servicer under the Pooling and Servicing Agreement, dated as of August
1, 2001, among Credit Suisse First Boston Mortgage Securities Corp. as
depositor, DLJ Mortgage Capital, Inc. as seller ("DLJMC"), Wilshire Credit
Corporation as a servicer ("Wilshire"), Vesta Servicing, L.P. as a servicer
("Vesta") and The Chase Manhattan Bank as trustee (The "Trustee") (The
"Agreement"), we hereby authorize and request you to establish an account, as an
Escrow Account pursuant to Section 3.06 of the Agreement, to be designated as
"Credit Suisse First Boston Mortgage Securities Corp., Mortgage Pass-Through
Certificates, Series 2001-S18" All deposits in the account shall be subject to
withdrawal therefrom by order signed by the Servicer. This letter is submitted
to you in duplicate. Please execute and return one original to us.

[SERVICER'S NAME], AS SERVICER

By:_______________________________

Name:_____________________________

Title:____________________________

Date:_____________________________

                                      P-2-1

<PAGE>

The undersigned, as Depository, hereby certifies that the above described
account has been established under Account Number ________________ at the office
of the Depository indicated above and agrees to honor withdrawals on such
account as provided above. The full amount deposited at any time in the account
will be insured up to applicable limits by the Federal Deposit Insurance
Corporation through the Bank Insurance Fund ("BIF") or the Savings Association
Insurance Fund ("SAIF").

_______________________________
Depository

By:____________________________

Name:__________________________

Title:_________________________

Date:__________________________

                                      P-2-2

<PAGE>

                                    EXHIBIT Q

                            MONTHLY REMITTANCE ADVICE

1) Standard CPI Reports:

         T62C-Monthly Accounting Report
         T62E-Liquidation Report
         S50Y-Private Pool Detail Report
         S214-Summary of Paid in Full Collections
         S215-Summary of Collections
         P139-Trial Balance

2) Standard CPI Tape Format:

         PNB Scheduled Balance Tape
         SPNB Determination Diskette/P45K

At such times as [_______________] is no longer the Servicer of the [________]
Mortgage Loans under the Agreement, The Monthly Remittance Advice also shall
include: (i) The aggregate Excess Servicing Fee to be remitted to
[___________________] on the Distribution Date, (ii) The aggregate Prepayment
Penalties collected by the Servicer of such loans during the preceding calendar
month, and (iii) a list of the Mortgage Loans for which Prepayment Penalties are
being remitted (including with respect to each related Mortgage Loan, The loan
number, borrower name and dollar amount of Prepayment Penalties collected for
such Mortgage Loan).

                                       Q-1

<PAGE>

                                    EXHIBIT R

                               CUSTODIAL AGREEMENT

                                       R-1

<PAGE>

                                                    SCHEDULE I

                                              MORTGAGE LOAN SCHEDULE

                                             (Available Upon Request)

                                                        I-1

<PAGE>

                                   SCHEDULE II

                     SELLER'S REPRESENTATIONS AND WARRANTIES

     (i) The Seller is a corporation duly organized, validly existing and in
good standing under the laws of the state of its incorporation;

     (ii) The Seller has full corporate power to own its property, to carry on
its business as presently conducted and to enter into and perform its
obligations under this Agreement;

     (iii) The execution and delivery by the Seller of this Agreement have been
duly authorized by all necessary corporate action on the part of the Seller; and
neither the execution and delivery of this Agreement, nor the consummation of
the transactions herein contemplated hereby, nor compliance with the provisions
hereof, will conflict with or result in a breach of, or constitute a default
under, any of the provisions of any law, governmental rule, regulation,
judgment, decree or order binding on the Seller or its properties or the
certificate of incorporation or by-laws of the Seller, except those conflicts,
breaches or defaults which would not reasonably be expected to have a material
adverse effect on the Seller's ability to enter into this Agreement and to
consummate the transactions contemplated hereby;

     (iv) The execution, delivery and performance by the Seller of this
Agreement and the consummation of the transactions contemplated hereby do not
require the consent or approval of, The giving of notice to, The registration
with, or the taking of any other action in respect of, any state, federal or
other governmental authority or agency, except those consents, approvals,
notices, registrations or other actions as have already been obtained, given or
made and, in connection with the recordation of the Mortgages, powers of
attorney or assignments of Mortgages not yet completed;

     (v) this Agreement has been duly executed and delivered by the Seller and,
assuming due authorization, execution and delivery by the Trustee, The Servicers
and the Depositor, constitutes a valid and binding obligation of the Seller
enforceable against it in accordance with its terms (subject to applicable
bankruptcy and insolvency laws and other similar laws affecting the enforcement
of the rights of creditors generally); and

     (vi) there are no actions, litigation, suits or proceedings pending or to
the knowledge of the Seller, threatened against the Seller before or by any
court, administrative agency, arbitrator or governmental body (i) with respect
to any of the transactions contemplated by this Agreement or (ii) with respect
to any other matter which in the judgment of the Seller if determined adversely
to the Seller would reasonably be expected to materially and adversely affect
the Seller's ability to perform its obligations under this Agreement; and the
Seller is not in default with respect to any order of any court, administrative
agency, arbitrator or governmental body so as to materially and adversely affect
the transactions contemplated by this Agreement.

                                      II-1

<PAGE>

                                  SCHEDULE IIIA

                     WILSHIRE REPRESENTATIONS AND WARRANTIES

     (i) Wilshire is a corporation duly organized, validly existing and in good
standing under the laws of the state of its incorporation;

     (ii) Wilshire has full corporate power to own its property, to carry on its
business as presently conducted and to enter into and perform its obligations
under this Agreement;

     (iii) The execution and deliver by Wilshire of this Agreement have been
duly authorized by all necessary corporate action on the part of Wilshire; and
neither the execution and delivery of this Agreement, nor the consummation of
the transactions herein contemplated hereby, nor compliance with the provisions
hereof, will conflict with or result in a breach of, or constitute a default
under, any of the provisions of any law, governmental rule, regulation,
judgment, decree or order binding on Wilshire or its properties or the
certificate of incorporation or bylaws of Wilshire, except those conflicts,
breaches or defaults which would not reasonably be expected to have a material
adverse effect on Wilshire ability to enter into this Agreement and to
consummate the transactions contemplated hereby;

     (iv) this Agreement has been duly executed and delivered by Wilshire and,
assuming due authorization, execution and delivery by the Trustee, The Seller,
Vesta and the Depositor, constitutes a valid and binding obligation of Wilshire
enforceable against it in accordance with its terms (subject to applicable
bankruptcy and insolvency laws and other similar laws affecting the enforcement
of the rights of creditors generally); and

     (v) there are no actions, litigation, suits or proceedings pending or to
the knowledge of Wilshire, threatened against Wilshire before or by any court,
administrative agency, arbitrator or governmental body (a) with respect to any
of the transactions contemplated by this Agreement or (b) with respect to any
other matter which in the judgment of Wilshire if determined adversely to
Wilshire would reasonably be expected to materially and adversely affect
Wilshire's ability to perform its obligations under this Agreement, other than
as Servicer has previously advised Seller; and Wilshire is not in default with
respect to any order of any court, administrative agency, arbitrator or
governmental body so as to materially and adversely affect the transactions
contemplated by this Agreement.

                                     IIIA-1

<PAGE>

                                  SCHEDULE IIIB

                      VESTA REPRESENTATIONS AND WARRANTIES

     (i) Vesta is a limited partnership duly organized, validly existing and in
good standing under the laws of the state of its formation;

     (ii) Vesta has full corporate power to own its property, to carry on its
business as presently conducted and to enter into and perform its obligations
under this Agreement;

     (iii) The execution and deliver by Vesta of this Agreement have been duly
authorized by all necessary corporate action on the part of Vesta; and neither
the execution and delivery of this Agreement, nor the consummation of the
transactions herein contemplated hereby, nor compliance with the provisions
hereof, will conflict with or result in a breach of, or constitute a default
under, any of the provisions of any law, governmental rule, regulation,
judgment, decree or order binding on Vesta or its properties or the certificate
of incorporation or bylaws of Vesta, except those conflicts, breaches or
defaults which would not reasonably be expected to have a material adverse
effect on Vesta ability to enter into this Agreement and to consummate the
transactions contemplated hereby;

     (iv) this Agreement has been duly executed and delivered by Vesta and,
assuming due authorization, execution and delivery by the Trustee, The Seller,
Wilshire and the Depositor, constitutes a valid and binding obligation of Vesta
enforceable against it in accordance with its terms (subject to applicable
bankruptcy and insolvency laws and other similar laws affecting the enforcement
of the rights of creditors generally); and

     (v) there are no actions, litigation, suits or proceedings pending or to
the knowledge of Vesta, threatened against Vesta before or by any court,
administrative agency, arbitrator or governmental body (a) with respect to any
of the transactions contemplated by this Agreement or (b) with respect to any
other matter which in the judgment of Vesta if determined adversely to Vesta
would reasonably be expected to materially and adversely affect Vesta's ability
to perform its obligations under this Agreement, other than as Servicer has
previously advised Seller; and Vesta is not in default with respect to any order
of any court, administrative agency, arbitrator or governmental body so as to
materially and adversely affect the transactions contemplated by this Agreement.

                                     IIIB-1

<PAGE>

                                   SCHEDULE IV

          REPRESENTATIONS AND WARRANTIES RELATING TO THE MORTGAGE LOANS

     (i) The Seller or its affiliate is the sole owner of record and holder of
the Mortgage Loan and the indebtedness evidenced by the Mortgage Note.
Immediately prior to the transfer and assignment to the Depositor on the Closing
Date, The Mortgage Loan, including the Mortgage Note and the Mortgage, were not
subject to an assignment or pledge, and the Seller had good and marketable title
to and was the sole owner thereof and had full right to transfer and sell the
Mortgage Loan to the Depositor free and clear of any encumbrance, equity, lien,
pledge, charge, claim or security interest and has the full right and authority
subject to no interest or participation of, or agreement with, any other party,
to sell and assign the Mortgage Loan and following the sale of the Mortgage
Loan, The Depositor will own such Mortgage Loan free and clear of any
encumbrance, equity, participation interest, lien, pledge, charge, claim or
security interest.

     (ii) Any and all requirements of any federal, state or local law including,
without limitation, usury, truth-in-lending, real estate settlement procedures,
consumer credit protection, equal credit opportunity or disclosure laws
applicable to the Mortgage Loan have been complied with in all material
respects.

     (iii) The terms of the Mortgage Note and the Mortgage have not been
impaired, waived, altered or modified in any respect, except by written
instruments which have been recorded to the extent any such recordation is
required by law, or, necessary to protect the interest of the Depositor. No
instrument of waiver, alteration or modification has been executed, and no
Mortgagor has been released, in whole or in part, from the terms thereof except
in connection with an assumption agreement and which assumption agreement is
part of the Mortgage File and the terms of which are reflected in the Mortgage
Loan Schedule; The substance of any such waiver, alteration or modification has
been approved by the issuer of any related Primary Insurance Policy and title
insurance policy, to the extent required by the related policies.

     (iv) The Mortgage Loan complies with all the terms, conditions and
requirements of the originator's underwriting standards in effect at the time of
origination of such Mortgage Loan.

     (v) The information set forth in the Mortgage Loan Schedule, attached to
the Agreement as Schedule I, is complete, true and correct in all material
respects as of the Cut-off Date.

     (vi) With respect to any First Mortgage Loan, The related Mortgage is a
valid, subsisting, enforceable and perfected first lien on the Mortgaged
Property and, with respect to any Second Mortgage Loan, The related Mortgage is
a valid, subsisting, enforceable and perfected second lien on the Mortgaged
Property, all buildings on the Mortgaged Property and all installations and
mechanical, electrical, plumbing, heating and air conditioning systems affixed
to such buildings, and all additions, alterations and replacements made at any
time with respect to the foregoing securing the Mortgage Note's original
principal balance. The Mortgage and the Mortgage Note do not contain any
evidence of any security interest or other interest or right thereto. Such lien
is free and clear of all adverse claims, liens and encumbrances having priority
over the first or second lien, as applicable, of the Mortgage subject only to
(1) with respect to any Second Mortgage Loan, The related First

                                      IV-1

<PAGE>

Mortgage Loan, (2) The lien of non-delinquent current real property taxes and
assessments not yet due and payable, (3) covenants, conditions and restrictions,
rights of way, easements and other matters of the public record as of the date
of recording which are acceptable to mortgage lending institutions generally and
either (A) which are referred to or otherwise considered in the appraisal made
for the originator of the Mortgage Loan, or (B) which do not adversely affect
the appraised value of the Mortgaged Property as set forth in such appraisal,
and (4) other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property. Any security agreement, chattel mortgage or equivalent
document related to and delivered in connection with the Mortgage Loan
establishes and creates (1) with respect to any First Mortgage Loan, a valid,
subsisting, enforceable and perfected first lien and first priority security
interest and (2) with respect to any second lien Mortgage Loan, a valid,
subsisting, enforceable and perfected second lien and second priority security
interest, in each case, on the property described therein, and the Seller has
the full right to sell and assign the same to the Depositor.

     (vii) There are no mechanics' or similar liens or claims which have been
filed for work, labor or material (and no rights are outstanding that under law
could give rise to such liens) affecting the related Mortgaged Property which
are or may be liens prior to or equal to the lien of the related Mortgage.

     (viii) All taxes, governmental assessments, insurance premiums, water,
sewer and municipal charges, leasehold payments or ground rents which previously
became due and owing have been paid, or escrow funds have been established in an
amount sufficient to pay for every such escrowed item which remains unpaid and
which has been assessed but is not yet due and payable.

     (ix) The Mortgage Note and the Mortgage are not subject to any right of
rescission, set-off, counterclaim or defense, including, without limitation, The
defense of usury, nor will the operation of any of the terms of the Mortgage
Note or the Mortgage, or the exercise of any right thereunder, render the
Mortgage Note or Mortgage unenforceable, in whole or in part, or subject to any
right of rescission, set-off, counterclaim or defense, including the defense of
usury, and no such right of rescission, set-off, counterclaim or defense has
been asserted with respect thereto.

     (x) The Mortgaged Property is not subject to any material damage by waste,
fire, earthquake, windstorm, flood or other casualty. At origination of the
Mortgage Loan there was, and there currently is, no proceeding pending for the
total or partial condemnation of the Mortgaged Property.

     (xi) All improvements subject to the Mortgage which were considered in
determining the appraised value of the Mortgaged Property lie wholly within the
boundaries and building restriction lines of the Mortgaged Property (and wholly
within the project with respect to a condominium unit) and no improvements on
adjoining properties encroach upon the Mortgaged Property except those which are
insured against by a title insurance policy and all improvements on the property
comply with all applicable zoning and subdivision laws and ordinances.

     (xii) Seller has delivered or caused to be delivered to the Trustee or the
Custodian on behalf of the Trustee the original Mortgage bearing evidence that
such instruments have been

                                      IV-2

<PAGE>

recorded in the appropriate jurisdiction where the Mortgaged Property is located
as determined by the Seller (or, in lieu of the original of the Mortgage or the
assignment thereof, a duplicate or conformed copy of the Mortgage or the
instrument of assignment, if any, together with a certificate of receipt from
the Seller or the settlement agent who handled the closing of the Mortgage Loan,
certifying that such copy or copies represent true and correct copy(ies) of the
original(s) and that such original(s) have been or are currently submitted to be
recorded in the appropriate governmental recording office of the jurisdiction
where the Mortgaged Property is located) or a certification or receipt of the
recording authority evidencing the same.

     (xiii) The Mortgage File contains each of the documents specified in
Section 2.01(b) of the Agreement.

     (xiv) As of the Closing Date, each Mortgage Loan shall be serviced in all
material respects in accordance with the terms of the Agreement.

     (xv) All buildings or other customarily insured improvements upon the
Mortgaged Property are insured by an insurer acceptable under the FNMA Guides,
against loss by fire, hazards of extended coverage and such other hazards as are
provided for in the FNMA Guides or by FHLMC, as well as all additional
requirements set forth in this Agreement. All such standard hazard policies are
in full force and effect and on the date of origination contained a standard
mortgagee clause naming the Seller and its successors in interest and assigns as
loss payee and such clause is still in effect and all premiums due thereon have
been paid. If at the time of origination, The Mortgage Loan was required to have
flood insurance coverage in accordance with the Flood Disaster Protection Act of
1973, as amended, such Mortgage Loan is covered by a flood insurance policy
meeting the requirements of the current guidelines of the Federal Insurance
Administration which policy conforms to FNMA and FHLMC requirements, as well as
all additional requirements set forth in this Agreement. Such policy was issued
by an insurer acceptable under FNMA or FHLMC guidelines. The Mortgage obligates
the Mortgagor thereunder to maintain all such insurance at the Mortgagor's cost
and expense, and upon the Mortgagor's failure to do so, authorizes the holder of
the Mortgage to maintain such insurance at the Mortgagor's cost and expense and
to seek reimbursement therefor from the Mortgagor.

     (xvi) With respect to a First or Second Mortgage Loan, The Mortgage creates
a first or second lien or a first or second priority ownership interest in an
estate in fee simple in real property securing the related Mortgage Note.

     (xvii) As of the Cut-off Date, no Mortgage Loan is (a) a non-performing
loan (i.e. a mortgage loan that is more than 90 days delinquent); (b) a
re-performing loan (i.e. a mortgage loan that was more than 90 days delinquent
within the twelve month period preceding the Cut-off Date but is contractually
current); or (c) a sub-performing loan (i.e. a mortgage loan that is at least 30
days delinquent but subject to a payment plan or agreement pursuant to which the
Mortgagor is contractually current).

     (xviii) With respect to the First Mortgage Loans in Group II included in
the Trust Fund, _____% of such First Mortgage Loans have a related Second
Mortgage Loan included in the Trust Fund (based on the Cut-off Date Principal
Balance).

                                      IV-3

<PAGE>

     (xix) The Mortgage Note and the related Mortgage are original and genuine
and each is the legal, valid and binding obligation of the maker thereof,
enforceable in all respects in accordance with its terms subject to bankruptcy,
insolvency, moratorium, reorganization and other laws of general application
affecting the rights of creditors and by general equitable principles.

                                      IV-4

<PAGE>

                                   SCHEDULE V

                           CLASS A-IO NOTIONAL AMOUNT

                                           CLASS A-IO NOTIONAL
          DISTRIBUTION DATE                      AMOUNT ($)
          -----------------                --------------------
          September 2001                    $127,232,254.82
          October 2001                       123,593,082.65
          November 2001                      119,601,315.06
          December 2001                      115,277,237.40
          January 2002                       110,644,544.38
          February 2002                      105,730,214.06
          March 2002                         100,564,328.16
          April 2002                          95,247,387.28
          May 2002                            89,881,081.36
          June 2002                           84,783,600.09
          July 2002                           79,974,680.93
          August 2002                         75,438,013.38
          September 2002                      71,158,207.74
          October 2002                        67,120,743.12
          November 2002                       63,311,918.54
          December 2002                       59,718,806.60
          January 2003                        56,329,209.88
          February 2003                       53,131,619.77
          March 2003                          50,115,177.60
          April 2003                          47,269,637.98
          May 2003                            44,585,334.21
          June 2003                           42,053,145.60
          July 2003                           39,664,466.70
          August 2003                         37,411,178.21
          September 2003                      35,285,619.54
          October 2003                        33,280,562.94
          November 2003                       31,389,189.06
          December 2003                       29,605,063.90
          January 2004                        27,922,117.07
          February 2004                       26,334,621.25
          March 2004                          24,837,172.86
          April 2004                          23,424,673.74
          May 2004                            22,092,313.93

                                       V-1

<PAGE>

                                           CLASS A-IO NOTIONAL
          DISTRIBUTION DATE                      AMOUNT ($)
          -----------------                --------------------
          June 2004                           20,835,555.39
          July 2004                           19,650,116.66
          August 2004                         18,531,958.37
          September 2004 and                  0

                                       V-2STRUCTURED ASSET MORTGAGE INVESTMENTS INC.,
                                     SELLER

                       LASALLE BANK NATIONAL ASSOCIATION,
                                     TRUSTEE

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
                                 MASTER SERVICER

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
                            SECURITIES ADMINISTRATOR

                                       and

                            EMC MORTGAGE CORPORATION

                 -----------------------------------------------

                         POOLING AND SERVICING AGREEMENT

                           Dated as of August 1, 2001

                 -----------------------------------------------

                   Structured Asset Mortgage Investments Inc.
           Bear Stearns ARM Trust, Mortgage Pass-Through Certificates

                                  Series 2001-6

<PAGE>

<TABLE>
<CAPTION>

                                                    TABLE OF CONTENTS
                                                                                                                    PAGE
                                                                                                                    ----

                                                       ARTICLE I

                                                      Definitions

                                                       ARTICLE II

                                             Conveyance of Mortgage Loans;
                                           Original Issuance of Certificates

<S>       <C>                                                                                                        <C>
          Section 2.01.     CONVEYANCE OF MORTGAGE LOANS TO TRUSTEE...................................................38
          Section 2.02.     ACCEPTANCE OF MORTGAGE LOANS BY TRUSTEE...................................................39
          Section 2.03.     ASSIGNMENT OF INTEREST IN THE MORTGAGE LOAN PURCHASE AGREEMENT............................42
          Section 2.04.     SUBSTITUTION OF MORTGAGE LOANS............................................................43
          Section 2.05.     ISSUANCE OF CERTIFICATES..................................................................44
          Section 2.06.     REPRESENTATIONS AND WARRANTIES CONCERNING THE SELLER......................................44

                                                      ARTICLE III

                                     Administration and Servicing of Mortgage Loans

          Section 3.01.     MASTER SERVICER...........................................................................47
          Section 3.02.     REMIC-RELATED COVENANTS...................................................................48
          Section 3.03.     MONITORING OF SERVICERS...................................................................48
          Section 3.04.     FIDELITY BOND.............................................................................49
          Section 3.05.     POWER TO ACT; PROCEDURES..................................................................49
          Section 3.06.     DUE-ON-SALE CLAUSES; ASSUMPTION AGREEMENTS................................................50
          Section 3.07.     RELEASE OF MORTGAGE FILES.................................................................51
          Section 3.08.     DOCUMENTS, RECORDS AND FUNDS IN POSSESSION OF MASTER SERVICER TO BE HELD FOR
                            TRUSTEE...................................................................................52
          Section 3.09.     STANDARD HAZARD INSURANCE AND FLOOD INSURANCE POLICIES....................................52
          Section 3.10.     PRESENTMENT OF CLAIMS AND COLLECTION OF PROCEEDS..........................................53
          Section 3.11.     MAINTENANCE OF THE PRIMARY MORTGAGE INSURANCE POLICIES....................................53
          Section 3.12.     TRUSTEE TO RETAIN POSSESSION OF CERTAIN INSURANCE POLICIES AND DOCUMENTS..................54
          Section 3.13.     REALIZATION UPON DEFAULTED MORTGAGE LOANS.................................................54
          Section 3.14.     COMPENSATION FOR THE MASTER SERVICER......................................................55
          Section 3.15.     REO PROPERTY..............................................................................55
          Section 3.16.     ANNUAL OFFICER'S CERTIFICATE AS TO COMPLIANCE.............................................56
          Section 3.17.     ANNUAL INDEPENDENT ACCOUNTANT'S SERVICING REPORT..........................................56
          Section 3.18.     REPORTS FILED WITH SECURITIES AND EXCHANGE COMMISSION.....................................57
          Section 3.19.     EMC.......................................................................................57
          Section 3.20.     UCC.......................................................................................58
          Section 3.21.     OPTIONAL PURCHASE OF DEFAULTED MORTGAGE LOANS.............................................58

                                                          -i-

<PAGE>

                                                       ARTICLE IV

                                                        Accounts

          Section 4.01.     PROTECTED ACCOUNTS........................................................................59
          Section 4.02.     MASTER SERVICER COLLECTION ACCOUNT........................................................60
          Section 4.03.     PERMITTED WITHDRAWALS AND TRANSFERS FROM THE MASTER SERVICER COLLECTION ACCOUNT...........61
          Section 4.04.     DISTRIBUTION ACCOUNT......................................................................62
          Section 4.05.     PERMITTED WITHDRAWALS AND TRANSFERS FROM THE DISTRIBUTION ACCOUNT.........................63

                                                       ARTICLE V

                                                      Certificates

          Section 5.01.     CERTIFICATES..............................................................................66
          Section 5.02.     REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES.....................................71
          Section 5.03.     MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.........................................75
          Section 5.04.     PERSONS DEEMED OWNERS.....................................................................75
          Section 5.05.     TRANSFER RESTRICTIONS ON RESIDUAL CERTIFICATES............................................75
          Section 5.06.     RESTRICTIONS ON TRANSFERABILITY OF CERTIFICATES...........................................77
          Section 5.07.     ERISA RESTRICTIONS........................................................................77
          Section 5.08.     RULE 144A INFORMATION.....................................................................78

                                                       ARTICLE VI

                                             Payments to Certificateholders

          Section 6.01.     DISTRIBUTIONS ON THE CERTIFICATES.........................................................79
          Section 6.02.     ALLOCATION OF LOSSES......................................................................82
          Section 6.03.     PAYMENTS..................................................................................84
          Section 6.04.     STATEMENTS TO CERTIFICATEHOLDERS..........................................................84
          Section 6.05.     MONTHLY ADVANCES..........................................................................87
                                                      ARTICLE VII

                                                  The Master Servicer

          Section 7.01.     LIABILITIES OF THE MASTER SERVICER........................................................89
          Section 7.02.     MERGER OR CONSOLIDATION OF THE MASTER SERVICER............................................89
          Section 7.03.     INDEMNIFICATION OF THE TRUSTEE, THE MASTER SERVICER AND THE SECURITIES ADMINISTRATOR......89
          Section 7.04.     LIMITATIONS ON LIABILITY OF THE MASTER SERVICER AND OTHERS................................90
          Section 7.05.     MASTER SERVICER NOT TO RESIGN.............................................................91
          Section 7.06.     SUCCESSOR MASTER SERVICER.................................................................91

                                                          -ii-

<PAGE>

          Section 7.07.     SALE AND ASSIGNMENT OF MASTER SERVICING...................................................91

                                                      ARTICLE VIII

                                                        Default

          Section 8.01.     EVENTS OF DEFAULT.........................................................................93
          Section 8.02.     TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR..................................................94
          Section 8.03.     NOTIFICATION TO CERTIFICATEHOLDERS........................................................95
          Section 8.04.     WAIVER OF DEFAULTS........................................................................95
          Section 8.05.     LIST OF CERTIFICATEHOLDERS................................................................96

                                                       ARTICLE IX

                                Concerning the Trustee and the Securities Administrator

          Section 9.01.     DUTIES OF TRUSTEE.........................................................................97
          Section 9.02.     CERTAIN MATTERS AFFECTING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR....................99
          Section 9.03.     TRUSTEE AND SECURITIES ADMINISTRATOR NOT LIABLE FOR CERTIFICATES OR MORTGAGE LOANS.......101
          Section 9.04.     TRUSTEE AND SECURITIES ADMINISTRATOR MAY OWN CERTIFICATES................................101
          Section 9.05.     TRUSTEE'S AND SECURITIES ADMINISTRATOR'S FEES AND EXPENSES...............................101
          Section 9.06.     ELIGIBILITY REQUIREMENTS FOR TRUSTEE AND SECURITIES ADMINISTRATOR........................102
          Section 9.07.     INSURANCE................................................................................102
          Section 9.08.     RESIGNATION AND REMOVAL OF THE TRUSTEE AND SECURITIES ADMINISTRATOR......................103
          Section 9.09.     SUCCESSOR TRUSTEE AND SUCCESSOR SECURITIES ADMINISTRATOR.................................103
          Section 9.10.     MERGER OR CONSOLIDATION OF TRUSTEE OR SECURITIES ADMINISTRATOR...........................104
          Section 9.11.     APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE............................................104
          Section 9.12.     FEDERAL INFORMATION RETURNS AND REPORTS TO CERTIFICATEHOLDERS; REMIC.....................105
          Section 9.13.     MAINTENANCE OF SUPPLEMENTAL PMI POLICY; COLLECTIONS THEREUNDER...........................107

                                                       ARTICLE X

                                                      Termination

          Section 10.01.    TERMINATION UPON REPURCHASE BY THE SELLER OR ITS DESIGNEE OR LIQUIDATION OF THE..........109
          Section 10.02.    ADDITIONAL TERMINATION REQUIREMENTS......................................................111

                                                       ARTICLE XI

                                                Miscellaneous Provisions

          Section 11.01.    INTENT OF PARTIES........................................................................113
          Section 11.02.    AMENDMENT................................................................................113

                                                         -iii-

<PAGE>

          Section 11.03.    RECORDATION OF AGREEMENT.................................................................114
          Section 11.04.    LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS...............................................114
          Section 11.05.    ACTS OF CERTIFICATEHOLDERS...............................................................115
          Section 11.06.    GOVERNING LAW............................................................................116
          Section 11.07.    .........................................................................................116
                            NOTICES..................................................................................116
          Section 11.08.    SEVERABILITY OF PROVISIONS...............................................................116
          Section 11.09.    SUCCESSORS AND ASSIGNS...................................................................117
          Section 11.10.    ARTICLE AND SECTION HEADINGS.............................................................117
          Section 11.11.    COUNTERPARTS.............................................................................117
          Section 11.12.    NOTICE TO RATING AGENCIES................................................................117
</TABLE>

                                                          -iv-

<PAGE>

                                    EXHIBITS

Exhibit A-1         -   Form of Class A Certificates
Exhibit A-2         -   Form of Class B Certificates
Exhibit A-3         -   Form of Class R Certificates
Exhibit B           -   Mortgage Loan Schedule
Exhibit C           -   [Reserved]
Exhibit D           -   Request for Release of Documents
Exhibit E           -   Form of Affidavit pursuant to Section 860E(e)(4)
Exhibit F-1         -   Form of Investment Letter
Exhibit F-2         -   Form of Rule 144A and Related Matters Certificate
Exhibit G           -   Form of Custodial Agreement
Exhibit H-1 to H-6  -   Servicing Agreements
Exhibit I           -   Assignment Agreements
Exhibit J           -   Mortgage Loan Purchase Agreement
Exhibit K           -   Supplemental PMI Policy from Supplemental PMI Insurer

                                       -v-

<PAGE>

                         POOLING AND SERVICING AGREEMENT

          Pooling and Servicing Agreement dated as of August 1, 2001, among
Structured Asset Mortgage Investments Inc., a Delaware corporation, as seller
(the "Seller"), LaSalle Bank National Association, a national banking
association, not in its individual capacity but solely as trustee (the
"Trustee"), Wells Fargo Bank Minnesota, National Association, as master servicer
(in such capacity, the "Master Servicer") and as securities administrator (in
such capacity, the "Securities Administrator"), and EMC Mortgage Corporation
("EMC").

                              PRELIMINARY STATEMENT

          On or prior to the Closing Date, the Seller acquired the Mortgage
Loans from EMC. On the Closing Date, the Seller will sell the Mortgage Loans and
certain other property to the Trust Fund and receive in consideration therefor
Certificates evidencing the entire beneficial ownership interest in the Trust
Fund.

          The Trustee on behalf of the Trust shall make an election for the
assets constituting REMIC I to be treated for federal income tax purposes as a
REMIC. On the Startup Day, the REMIC I Regular Interests will be designated
"regular interests" in such REMIC and the Class R-I Certificate will be
designated the "residual interests" in such REMIC.

          The Trustee on behalf of the Trust shall make an election for the
assets constituting REMIC II to be treated for federal income tax purposes as a
REMIC. On the Startup Day, the REMIC II Regular Certificates will be designated
"regular interests" in such REMIC and the Class R-II Certificate will be
designated the "residual interests" in such REMIC.

          The Mortgage Loans will have an Outstanding Principal Balance as of
the Cut-off Date, after deducting all Scheduled Principal due on or before the
Cut-off Date, of approximately $938,190,028.97. The initial principal amount of
the Certificates will not exceed such Outstanding Principal Balance.

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

<PAGE>

                                    ARTICLE I

                                   Definitions

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

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

          ACCOUNT: The Master Servicer Collection Account and the Protected
Account as the context may require.

          ACCRUED CERTIFICATE INTEREST: For any Certificate for any Distribution
Date, the interest accrued during the related Interest Accrual Period at the
applicable Pass-Through Rate on the Current Principal Amount of such Certificate
immediately prior to such Distribution Date, calculated on the basis of a
360-day year consisting of twelve 30-day months, less (i) in the case of a
Senior Certificate, such Certificate's share of any Net Interest Shortfall and,
after the Cross-Over Date, the interest portion of any Realized Losses on the
Mortgage Loans allocated thereto in accordance with Section 6.02(g) and (ii) in
the case of a Subordinate Certificate, such Certificate's share of any Net
Interest Shortfall and the interest portion of any Realized Losses on the
Mortgage Loans allocated thereto in accordance with Section 6.02(g).

          ADDITIONAL COLLATERAL: As defined in the Cendant/MLCC Servicing
Agreement attached hereto as Exhibit H-3.

          ADDITIONAL COLLATERAL MORTGAGE LOAN: As defined in the Cendant/MLCC
Servicing Agreement attached hereto as Exhibit H-3.

          AFFILIATE: As to any Person, any other Person controlling, controlled
by or under common control with such Person. "Control" means the power to direct
the management and policies of a Person, directly or indirectly, whether through
ownership of voting securities, by contract or otherwise. "Controlled" and
"Controlling" have meanings correlative to the foregoing. The Trustee may
conclusively presume that a Person is not an Affiliate of another Person unless
a Responsible Officer of the Trustee has actual knowledge to the contrary.

                                      -2-

<PAGE>

          AGGREGATE EXPENSE RATE: With respect to any Mortgage Loan, the sum of
the Servicing Fee Rate and the Supplemental PMI Insurance Premium Rate (if
applicable).

          AGREEMENT: This Pooling and Servicing Agreement and all amendments
hereof and supplements hereto.

          ALLOCABLE SHARE: With respect to each Class of Subordinate
Certificates:

                   (a) as to any Distribution Date and amounts distributable
          pursuant to clauses (i) and (iii) of the definition of Subordinate
          Optimal Principal Amount, the fraction, expressed as a percentage, the
          numerator of which is the Current Principal Amount of such Class and
          the denominator of which is the aggregate Current Principal Amount of
          all Classes of the Subordinate Certificates; and

                   (b) as to any Distribution Date and amounts distributable
          pursuant to clauses (ii), (iv) and (v) of the definition of
          Subordinate Optimal Principal Amount, and as to each Class of
          Subordinate Certificates (other than the Class of Subordinate
          Certificates having the lowest numerical designation as to which the
          Class Prepayment Distribution Trigger shall not be applicable) for
          which (x) the related Class Prepayment Distribution Trigger has been
          satisfied on such Distribution Date, the fraction, expressed as a
          percentage, the numerator of which is the Current Principal Amount of
          such Class and the denominator of which is the aggregate Current
          Principal Amount of all such Classes of Subordinate Certificates and
          (y) the related Class Prepayment Distribution Trigger has not been
          satisfied on such Distribution Date, 0%; provided that if on a
          Distribution Date, the Current Principal Amount of any Class of
          Subordinate Certificates for which the related Class Prepayment
          Distribution Trigger was satisfied on such Distribution Date is
          reduced to zero, any amounts distributed pursuant to this clause (b),
          to the extent of such Class's remaining Allocable Share, shall be
          distributed to the remaining Classes of Subordinate Certificates which
          satisfy the related Class Prepayment Distribution Trigger and to the
          Class of Subordinate Certificates having the lowest numerical
          designation in reduction of their respective Current Principal Amounts
          in the order of their numerical Class designations.

          APPLICABLE CREDIT RATING: For any long-term deposit or security, a
credit rating of AAA in the case of S&P or Aaa in the case of Moody's. For any
short-term deposit or security, or a rating of A-l+ in the case of S&P or P-1 in
the case of Moody's.

          APPLICABLE STATE LAW: For purposes of Section 9.12(d), the Applicable
State Law shall be (a) the law of the State of New York and (b) such other state
law whose applicability shall have been brought to the attention of the
Securities Administrator and the Trustee by either (i) an Opinion of Counsel
reasonably acceptable to the Securities Administrator and the Trustee delivered
to it by the Master Servicer or the Seller, or (ii) written notice from the
appropriate taxing authority as to the applicability of such state law.

                                       -3-

<PAGE>

          APPRAISED VALUE: For any Mortgaged Property related to a Mortgage
Loan, the amount set forth as the appraised value of such Mortgaged Property in
an appraisal made for the mortgage originator in connection with its origination
of the related Mortgage Loan.

          ASSIGNMENT AGREEMENTS: The agreements attached hereto as Exhibit I,
whereby the Servicing Agreements were assigned to the Trustee for the benefit of
the Certificateholders.

          ASSUMED FINAL DISTRIBUTION DATE: September 25, 2031, or if such day is
not a Business Day, the next succeeding Business Day.

          AVAILABLE FUNDS: With respect to any Distribution Date, the sum of the
Group 1, Group 2, Group 3, Group 4 and Group 5 Available Funds for such
Distribution Date.

          AVERAGE LOSS SEVERITY: With respect to any period and each Loan Group,
the fraction obtained by dividing (x) the aggregate amount of Realized Losses
for the related Mortgage Loans for such period by (y) the number of related
Mortgage Loans which had Realized Losses for such period.

          BANK OF AMERICA: Bank of America, N.A.

          BANK OF AMERICA SERVICING AGREEMENT: The Mortgage Loan Sale and
Servicing Agreement, dated as of July 6, 2001, between Bank of America and EMC,
attached hereto as Exhibit H-1.

          BANKRUPTCY CODE: The United States Bankruptcy Code, as amended as
codified in 11 U.S.C. ss.ss.101-1330.

          BOOK-ENTRY CERTIFICATES: Initially, all Classes of Certificates other
than the Private Certificates and the Residual Certificates.

          BUSINESS DAY: Any day other than (i) a Saturday or a Sunday, or (ii) a
day on which the New York Stock Exchange or Federal Reserve is closed or on
which banking institutions or the jurisdiction in which the Trustee, the Master
Servicer, any Servicer or the Securities Administrator are authorized or
obligated by law or executive order to be closed.

          CALENDAR QUARTER: January 1 to March 31, April 1 to June 30, July 1 to
September 30, or October 1 to December 31, as applicable.

          CENDANT: Cendant Mortgage Corp.

          CENDANT/MLCC SERVICING AGREEMENT: The Mortgage Loan Flow Purchase,
Sale and Servicing Agreement, dated as of April 26, 2001, between EMC, as
Purchaser and Cendant and Bishop's Gate Residential Mortgage Trust, as Seller,
attached hereto as Exhibit H-2.

                                       -4-

<PAGE>

          CERTIFICATE: Any mortgage pass-through certificate evidencing a
beneficial ownership interest in the Trust Fund signed and countersigned by the
Trustee in substantially the forms annexed hereto as Exhibits A-1, A-2 and A-3,
with the blanks therein appropriately completed.

          CERTIFICATE GROUP: The Group 1 Senior Certificates, Group 2 Senior
Certificates, Group 3 Senior Certificates, Group 4 Senior Certificates or Group
5 Senior Certificates, as applicable, and the Subordinate Certificates to the
extent such Certificates represent an interest in such groups of Certificates.

          CERTIFICATE OWNER: Any Person who is the beneficial owner of a
Certificate registered in the name of the Depository or its nominee.

          CERTIFICATE REGISTER: The register maintained pursuant to Section
5.02.

          CERTIFICATEHOLDER: A Holder of a Certificate.

          CLASS: With respect to the Certificates, I-A, R-I, R-II, II-A, III-A,
IV-A, V-A, B-1, B-2, B-3, B-4, B-5, B-6.

          CLASS R CERTIFICATES: The Class R-I and Class R-II Certificates.

          CLASS PREPAYMENT DISTRIBUTION TRIGGER: For a Class of Subordinate
Certificates for any Distribution Date, the Class Prepayment Distribution
Trigger is satisfied if the fraction (expressed as a percentage), the numerator
of which is the aggregate Current Principal Amount of such Class and each Class
of Subordinate Certificates subordinate thereto, if any, and the denominator of
which is the Scheduled Principal Balance of all of the Mortgage Loans as of the
related Due Date, equals or exceeds such percentage calculated as of the Closing
Date.

          CLOSING DATE: August 30, 2001.

          CODE: The Internal Revenue Code of 1986, as amended.

          COMPENSATING INTEREST PAYMENT: As defined in Section 6.07.

          CORPORATE TRUST OFFICE: The office of the Trustee at which at any
particular time its corporate trust business is administered, which office, at
the date of the execution of this Agreement, is located at 135 South LaSalle
Street, Chicago, Illinois 60603, Attention: Asset-Backed Trust Services Group,
BART 2001-6.

          CROSS-OVER DATE: The first Distribution Date on which the aggregate
Current Principal Amount of the Subordinate Certificates has been reduced to
zero (giving effect to all distributions on such Distribution Date).

                                       -5-

<PAGE>

          CURRENT PRINCIPAL AMOUNT: With respect to any Certificate as of any
Distribution Date, the initial principal amount of such Certificate, and reduced
by (i) all amounts distributed on previous Distribution Dates on such
Certificate with respect to principal, (ii) the principal portion of all
Realized Losses allocated prior to such Distribution Date to such Certificate,
taking account of the Loss Allocation Limitation and (iii) in the case of a
Subordinate Certificate, such Certificate's pro rata share, if any, of the
applicable Subordinate Certificate Writedown Amount for previous Distribution
Dates. With respect to any Class of Certificates, the Current Principal Amount
thereof will equal the sum of the Current Principal Amounts of all Certificates
in such Class. Notwithstanding the foregoing, solely for purposes of giving
consents, directions, waivers, approvals, requests and notices, the Class R-I
and Class R-II Certificates after the Distribution Date on which they each
receive the distribution of the last dollar of their respective original
principal amount shall be deemed to have Current Principal Amounts equal to
their respective Current Principal Amounts on the day immediately preceding such
Distribution Date.

          CUSTODIAL AGREEMENT: An agreement, dated as of the Closing Date among
the Seller, the Master Servicer, the Trustee and the Custodian in substantially
the form of Exhibit G hereto.

          CUSTODIAN: Wells Fargo Bank Minnesota, National Association, or any
successor custodian appointed pursuant to the provisions hereof and of the
Custodial Agreement.

          CUT-OFF DATE: August 1, 2001.

          CUT-OFF DATE BALANCE: $938,190,028.97.

          DEBT SERVICE REDUCTION: Any reduction of the Scheduled Payments which
a Mortgagor is obligated to pay with respect to a Mortgage Loan as a result of
any proceeding under the Bankruptcy Code or any other similar state law or other
proceeding.

          DEFICIENT VALUATION: With respect to any Mortgage Loan, a valuation of
the Mortgaged Property by a court of competent jurisdiction in an amount less
than the then outstanding indebtedness under the Mortgage Loan, which valuation
results from a proceeding initiated under the Bankruptcy Code or any other
similar state law or other proceeding.

          DEPOSITORY: The Depository Trust Company, the nominee of which is Cede
& Co., or any successor thereto.

          DEPOSITORY AGREEMENT: The meaning specified in Subsection 5.01(a)
hereof.

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

                                       -6-

<PAGE>

          DESIGNATED DEPOSITORY INSTITUTION: A depository institution
(commercial bank, federal savings bank mutual savings bank or savings and loan
association) or trust company (which may include the Trustee), the deposits of
which are fully insured by the FDIC to the extent provided by law.

          DETERMINATION DATE: With respect to each Mortgage Loan, the
Determination Date as defined in the related Servicing Agreement.

          DISQUALIFIED ORGANIZATION: Any of the following: (i) the United
States, any State or political subdivision thereof, any possession of the United
States, or any agency or instrumentality of any of the foregoing (other than an
instrumentality which is a corporation if all of its activities are subject to
tax and, except for the Freddie Mac or any successor thereto, a majority of its
board of directors is not selected by such governmental unit), (ii) any foreign
government, any international organization, or any agency or instrumentality of
any of the foregoing, (iii) any organization (other than certain farmers'
cooperatives described in Section 521 of the Code) which is exempt from the tax
imposed by Chapter 1 of the Code (including the tax imposed by Section 511 of
the Code on unrelated business taxable income), (iv) rural electric and
telephone cooperatives described in Section 1381(a)(2)(C) of the Code or (v) any
other Person so designated by the Trustee based upon an Opinion of Counsel that
the holding of an ownership interest in a Residual Certificate by such Person
may cause the Trust or any Person having an ownership interest in the Residual
Certificate (other than such Person) to incur a liability for any federal tax
imposed under the Code that would not otherwise be imposed but for the transfer
of an ownership interest in a Residual Certificate to such Person. The terms
"United States," "State" and "international organization" shall have the
meanings set forth in Section 7701 of the Code or successor provisions.

          DISTRIBUTION ACCOUNT: The trust account or accounts created and
maintained pursuant to Section 4.04, which shall be denominated "LaSalle Bank
National Association, as Trustee f/b/o holders of Structured Asset Mortgage
Investments Inc., Bear Stearns ARM Trust, Mortgage Pass- Through Certificates,
Series 2001-6 - Distribution Account."

          DISTRIBUTION ACCOUNT DEPOSIT DATE: The Business Day prior to each
Distribution Date.

          DISTRIBUTION DATE: The 25th day of any month, beginning in the month
immediately following the month of the Closing Date, or, if such 25th day is not
a Business Day, the Business Day immediately following.

          DTC CUSTODIAN: LaSalle Bank National Association, or its successors in
interest as custodian for the Depository.

          DUE DATE: With respect to each Mortgage Loan, the date in each month
on which its Scheduled Payment is due if such due date is the first day of a
month and otherwise is deemed to be the first day of the following month or such
other date specified in the related Servicing Agreement.

                                       -7-

<PAGE>

          DUE PERIOD: With respect to any Distribution Date and each Mortgage
Loan, the period commencing on the second day of the month preceding the month
in which the Distribution Date occurs and ending at the close of business on the
first day of the month in which the Distribution Date occurs.

           EMC: EMC Mortgage Corporation.

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

          EVENT OF DEFAULT: An event of default described in Section 8.01.

          EXCESS LIQUIDATION PROCEEDS: To the extent that such amount is not
required by law to be paid to the related Mortgagor, the amount, if any, by
which Liquidation Proceeds with respect to a Liquidated Mortgage Loan exceed the
sum of (i) the Outstanding Principal Balance of such Mortgage Loan and accrued
but unpaid interest at the related Mortgage Interest Rate through the last day
of the month in which the related Liquidation Date occurs, plus (ii) related
Liquidation Expenses.

          EXCESS REPURCHASE PROCEEDS: With respect to any Mortgage Loan, the
amount, if any, in excess of the Repurchase Price received by EMC from the
related Underlying Seller in connection with a repurchased Mortgage Loan.

          FANNIE MAE: Federal National Mortgage Association or any successor
thereto.

          FDIC: Federal Deposit Insurance Corporation or any successor thereto.

          FINAL CERTIFICATION: The certification substantially in the form of
Exhibit Three to the Custodial Agreement.

          FITCH: Fitch, Inc. and its successors in interest.

          FIRST CHICAGO: First Chicago NBD Mortgage Company.

          FIRST CHICAGO SERVICING AGREEMENT: The Seller's Purchase, Warranties
and Servicing Agreement, dated as of June 26, 2001, between First Chicago, Bank
One, National Association and EMC, attached hereto as Exhibit H-3.

          FRACTIONAL UNDIVIDED INTEREST: With respect to any Class of
Certificates, the fractional undivided interest evidenced by any Certificate of
such Class the numerator of which is the Current Principal Amount of such
Certificate and the denominator of which is the Current Principal Amount of such
Class. With respect to the Certificates in the aggregate, the fractional
undivided interest evidenced by (i) a Residual Certificate will be deemed to
equal 1.0% multiplied by the percentage interest of such Residual Certificate
and (ii) a Certificate of any other Class will be deemed to equal

                                      -8-

<PAGE>

99.0% multiplied by a fraction, the numerator of which is the Current Principal
Amount of such Certificate and the denominator of which is the aggregate Current
Principal Amount of all the Certificates.

          FREDDIE MAC: Freddie Mac, formerly the Federal Home Loan Mortgage
Corporation, or any successor thereto.

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

          GMAC: GMAC Mortgage Corp.

          GMAC SERVICING AGREEMENT: The Servicing Agreement, dated May 1, 2001,
between GMAC and EMC, attached hereto as Exhibit H-4.

          GROSS MARGIN: As to each Mortgage Loan, the fixed percentage set forth
in the related Mortgage Note and indicated on the Mortgage Loan Schedule which
percentage is added to the related Index on each Interest Adjustment Date to
determine (subject to rounding, the minimum and maximum Mortgage Interest Rate
and the Periodic Rate Cap) the Mortgage Interest Rate until the next Interest
Adjustment Date.

          GROUP 1 AVAILABLE FUNDS, GROUP 2 AVAILABLE FUNDS, GROUP 3 AVAILABLE
FUNDS, GROUP 4 AVAILABLE FUNDS OR GROUP 5 AVAILABLE FUNDS: With respect to any
Distribution Date, an amount equal to the aggregate of the following amounts
with respect to the Mortgage Loans in the related Loan Group: (a) all previously
undistributed payments on account of principal (including the principal portion
of Scheduled Payments, Principal Prepayments and the principal portion of Net
Liquidation Proceeds) and all previously undistributed payments on account of
interest received after the Cut-off Date and on or prior to the related
Determination Date, (b) any Monthly Advances and Compensating Interest Payments
by the Servicers or the Master Servicer with respect to such Distribution Date,
(c) any other miscellaneous amounts remitted by the Master Servicer or the
applicable Servicers pursuant to the Servicing Agreements, and (d) any
reimbursed amount in connection with losses on investments of deposits in an
account, except:

                    (i) all payments that were due on or before the Cut-off
                    Date;

                    (ii) all Principal Prepayments and Liquidation Proceeds
                    received after the applicable Prepayment Period;

                    (iii) all payments, other than Principal Prepayments, that
                    represent early receipt of Scheduled Payments due on a date
                    or dates subsequent to the related Due Date;

                                       -9-

<PAGE>

                    (iv) amounts received on particular Mortgage Loans as late
                    payments of principal or interest and respecting which, and
                    to the extent that, there are any unreimbursed Monthly
                    Advances;

                    (v) amounts representing Monthly Advances determined to be
                    Nonrecoverable Advances;

                    (vi) any investment earnings on amounts on deposit in the
                    Master Servicer Collection Account and the Distribution
                    Account and amounts permitted to be withdrawn from the
                    Master Servicing Collection Account and the Distribution
                    Account pursuant to this Agreement;

                    (vii) amounts representing insurance premiums;

                    (viii) to pay the Servicing Fees or to reimburse any
                    Servicer or the Master Servicer for such amounts as are due
                    under the applicable Servicing Agreement and the Agreement
                    and have not been retained by or paid to such Servicer or
                    the Master Servicer; and

                    (ix) and any expenses of, or other amounts reimbursable to,
                    the Trustee or the Securities Administrator pursuant to
                    Section 9.05.

          In addition on each Distribution Date, the related Available Funds for
each Certificate Group shall be increased by any Required Surety Payment.

          GROUP 1 MORTGAGE LOANS: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

          GROUP 2 MORTGAGE LOANS: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

          GROUP 3 MORTGAGE LOANS: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

          GROUP 4 MORTGAGE LOANS: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

          GROUP 5 MORTGAGE LOANS: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

          GROUP 1 SENIOR CERTIFICATES: The Class R-I, Class R-II and Class I-A
Certificates.

          GROUP 2 SENIOR CERTIFICATES: The Class II-A Certificates.

                                      -10-

<PAGE>

          GROUP 3 SENIOR CERTIFICATES: The Class III-A Certificates.

          GROUP 4 SENIOR CERTIFICATES: The Class IV-A Certificates.

          GROUP 5 SENIOR CERTIFICATES: The Class V-A Certificates.

          GROUP 1 SENIOR OPTIMAL PRINCIPAL AMOUNT, GROUP 2 SENIOR OPTIMAL
PRINCIPAL AMOUNT, GROUP 3 SENIOR OPTIMAL PRINCIPAL AMOUNT , GROUP 4 SENIOR
OPTIMAL PRINCIPAL AMOUNT or GROUP 5 SENIOR OPTIMAL PRINCIPAL AMOUNT: As to any
Distribution Date, an amount equal to the sum, without duplication, of:

                   (i) the applicable Senior Percentage of all scheduled
          payments of principal allocated to the Scheduled Principal Balance due
          on each Outstanding Mortgage Loan in the related Loan Group on the
          related Due Date as specified in the amortization schedule at the time
          applicable thereto (after adjustments for previous Principal
          Prepayments but before any adjustment to such amortization schedule by
          reason of any bankruptcy or similar proceeding or any moratorium or
          similar waiver or grace period);

                   (ii) the applicable Senior Prepayment Percentage of all
          Principal Prepayments in part received during the related Prepayment
          Period with respect to each Mortgage Loan in the related Loan Group,
          together with the applicable Senior Prepayment Percentage of the
          Scheduled Principal Balance of each Mortgage Loan in the related Loan
          Group which was the subject of a Principal Prepayment in full during
          the related Prepayment Period;

                   (iii) the lesser of (a) the applicable Senior Prepayment
          Percentage of all Net Liquidation Proceeds, allocable to principal
          received in respect of each Mortgage Loan in the related Loan Group
          which became a Liquidated Mortgage Loan during the related Prepayment
          Period; and (b) the applicable Senior Percentage of the Scheduled
          Principal Balance of each Mortgage Loan in the related Loan Group
          which became a Liquidated Mortgage Loan during the related Prepayment
          Period; and

                   (iv) the applicable Senior Prepayment Percentage of the sum
          of (a) the Scheduled Principal Balance of each Mortgage Loan in the
          related Loan Group or related REO Property in the related Loan Group
          which was purchased by the Mortgage Loan Seller or the related
          Originator on such Distribution Date and (b) the excess, if any, of
          the Scheduled Principal Balance of a Mortgage Loan in the related Loan
          Group that has been replaced by the Mortgage Loan Seller or the
          related Originator pursuant to the Mortgage Loan Purchase Agreement,
          the related Assignment Agreement or the related Servicing Agreement
          with a Substitute Mortgage Loan pursuant to Section 2.04 of this
          Agreement on such Distribution Date over the Scheduled Principal
          Balance of such Substitute Mortgage Loan.

          GROUP 1 SENIOR PERCENTAGE: Initially, 98.00%. On any Distribution
Date, the lesser of (i) 100% and (ii) the percentage (carried to six places
rounded up) obtained by dividing the aggregate

                                      -11-

<PAGE>

Current Principal Amount of the Group 1 Senior Certificates immediately
preceding such Distribution Date by the aggregate Scheduled Principal Balance of
the Group 1 Mortgage Loans as of the beginning of the related Due Period.

          GROUP 2 SENIOR PERCENTAGE: Initially, 98.00%. On any Distribution
Date, the lesser of (i) 100% and (ii) the percentage (carried to six places
rounded up) obtained by dividing the aggregate Current Principal Amount of the
Group 2 Senior Certificates immediately preceding such Distribution Date by the
aggregate Scheduled Principal Balance of the Group 2 Mortgage Loans as of the
beginning of the related Due Period.

          GROUP 3 SENIOR PERCENTAGE: Initially, 98.00%. On any Distribution
Date, the lesser of (i) 100% and (ii) the percentage (carried to six places
rounded up) obtained by dividing the Current Principal Amount of the Group 3
Senior Certificates immediately preceding such Distribution Date by the
aggregate Scheduled Principal Balance of the Group 3 Mortgage Loans as of the
beginning of the related Due Period.

          GROUP 4 SENIOR PERCENTAGE: Initially, 98.00%. On any Distribution
Date, the lesser of (i) 100% and (ii) the percentage (carried to six places
rounded up) obtained by dividing the Current Principal Amount of the Group 4
Senior Certificates immediately preceding such Distribution Date by the
aggregate Scheduled Principal Balance of the Group 4 Mortgage Loans as of the
beginning of the related Due Period.

          GROUP 5 SENIOR PERCENTAGE: Initially, 98.00%. On any Distribution
Date, the lesser of (i) 100% and (ii) the percentage (carried to six places
rounded up) obtained by dividing the Current Principal Amount of the Group 5
Senior Certificates immediately preceding such Distribution Date by the
aggregate Scheduled Principal Balance of the Group 5 Mortgage Loans as of the
beginning of the related Due Period.

          GROUP 1 SENIOR PREPAYMENT PERCENTAGE: On any Distribution Date
occurring during the periods set forth below, as follows:

<TABLE>
<CAPTION>

<S>                                                   <C>
Period (dates inclusive)                              Group 1 Senior Prepayment Percentage
September 25, 2001 - August 25, 2008                  100%
September 25, 2008 - August 25, 2009                  Group 1 Senior Percentage plus 70% of the Group 1
                                                      Subordinate Percentage
September 25, 2009 - August 25, 2010                  Group 1 Senior Percentage plus 60% of the Group 1
                                                      Subordinate Percentage
September 25, 2010 - August 25, 2011                  Group 1 Senior Percentage plus 40% of the Group 1
                                                      Subordinate Percentage

                                      -12-

<PAGE>

September 25, 2011 - August 25, 2012                  Group 1 Senior Percentage plus 20% of the Group 1
                                                      Subordinate Percentage
September 25, 2012 and thereafter                     Group 1 Senior Percentage
</TABLE>

          In addition, no reduction of the Group 1 Senior Prepayment Percentage
shall occur on any Distribution Date unless, as of the last day of the month
preceding such Distribution Date, either (A) (i) (x) the aggregate Scheduled
Principal Balance of the Mortgage Loans delinquent 60 days or more (including
for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with
respect to which the related Mortgaged Property has been acquired by the Trust),
averaged over the last six months, as a percentage of the sum of the aggregate
Current Principal Amount of the Subordinate Certificates does not exceed 100%,
or (y) the aggregate Scheduled Principal Balance of the Mortgage Loans
delinquent 60 days or more (including for this purpose any such Mortgage Loans
in foreclosure and such Mortgage Loans with respect to which the related
Mortgaged Property has been acquired by the Trust), averaged over the last six
months, as a percentage of the aggregate Scheduled Principal Balances of the
Mortgage Loans averaged over the last six months, does not exceed 2.0%; and (ii)
cumulative Realized Losses on the Mortgage Loans do not exceed (a) 30% of the
Original Subordinate Principal Balance if such Distribution Date occurs between
and including September 2008 and August 2009, (b) 35% of the Original
Subordinate Principal Balance if such Distribution Date occurs between and
including September 2009 and August 2010, (c) 40% of the Original Subordinate
Principal Balance if such Distribution Date occurs between and including
September 2010 and August 2011, (d) 45% of the Original Subordinate Principal
Balance if such Distribution Date occurs between and including September 2011
and August 2012, and (e) 50% of the Original Subordinate Principal Balance if
such Distribution Date occurs during or after September 2012; or (B) (i) the
aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days
or more (including for this purpose any such Mortgage Loans in foreclosure and
such Mortgage Loans with respect to which the related Mortgaged Property has
been acquired by the Trust), averaged over the last six months, does not exceed
4.0% of the then-current aggregate Scheduled Principal Balance of the Mortgage
Loans; and (ii) cumulative Realized Losses on the Mortgage Loans do not exceed
(a) 10% of the Original Subordinate Principal Balance if such Distribution Date
occurs between and including September 2008 and August 2009, (b) 15% of the
Original Subordinate Principal Balance if such Distribution Date occurs between
and including September 2009 and August 2010, (c) 20% of the Original
Subordinate Principal Balance if such Distribution Date occurs between and
including September 2010 and August 2011, (d) 25% of the Original Subordinate
Principal Balance if such Distribution Date occurs between and including
September 2011 and August 2012, and (e) 30% of the Original Subordinate
Principal Balance if such Distribution Date occurs during or after September
2012.

          In addition, if the current weighted average Subordinate Percentage is
equal to or greater than two times the initial weighted average Subordinate
Percentage for the Certificates, and (a) the aggregate Scheduled Principal
Balance of the Mortgage Loans delinquent 60 days or more (including for this
purpose any such Mortgage Loans in foreclosure and such Mortgage Loans with
respect to which the related Mortgaged Property has been acquired by the Trust),
averaged over the last six

                                      -13-

<PAGE>

months, as a percentage of the sum of the aggregate Current Principal Amount of
the Subordinate Certificates does not exceed 100% and (b)(i) prior to the
Distribution Date in September 2004 cumulative Realized Losses on the Mortgage
Loans do not exceed 10% of the Original Subordinate Principal Balance and (ii)
on or after the Distribution Date in September 2004 cumulative Realized Losses
on the Mortgage Loans do not exceed 20% of the Original Subordinate Principal
Balance, then, in each case, the Group 1 Senior Prepayment Percentage for such
Distribution Date will equal the Group 1 Senior Percentage; provided, however,
if the current weighted average Subordinate Percentage for the Certificates is
equal to or greater than two times the initial weighted average Subordinate
Percentage for the Certificates prior to September 25, 2004 and the above
delinquency and loss tests are met, then the Group 1 Senior Prepayment
Percentage for such Distribution Date will equal the Group 1 Senior Percentage
plus 50% of the Subordinate Percentage.

          Notwithstanding the foregoing, if on any Distribution Date the Group 1
Senior Percentage exceeds the Group 1 Senior Percentage as of the Cut-Off Date,
the Group 1 Senior Prepayment Percentage for such Distribution Date will equal
100%. On the Distribution Date on which the Current Principal Amounts of the
Group 1 Senior Certificates are reduced to zero, the Group 1 Senior Prepayment
Percentage shall be the minimum percentage sufficient to effect such reduction
and thereafter shall be zero.

          GROUP 2 SENIOR PREPAYMENT PERCENTAGE: On any Distribution Date
occurring during the periods set forth below, as follows:

<TABLE>
<CAPTION>

<S>                                                   <C>
Period (dates inclusive)                              Group 2 Senior Prepayment Percentage
September 25, 2001 - August 25, 2008                  100%
September 25, 2008 - August 25, 2009                  Group 2 Senior Percentage plus 70% of the Group 2
                                                      Subordinate Percentage
September 25, 2009 - August 25, 2010                  Group 2 Senior Percentage plus 60% of the Group 2
                                                      Subordinate Percentage
September 25, 2010 - August 25, 2011                  Group 2 Senior Percentage plus 40% of the Group 2
                                                      Subordinate Percentage
September 25, 2011 - August 25, 2012                  Group 2 Senior Percentage plus 20% of the Group 2
                                                      Subordinate Percentage
September 25, 2012 and thereafter                     Group 2 Senior Percentage
</TABLE>

          In addition, no reduction of the Group 2 Senior Prepayment Percentage
shall occur on any Distribution Date unless, as of the last day of the month
preceding such Distribution Date, either (A) (i) (x) the aggregate Scheduled
Principal Balance of the Mortgage Loans delinquent 60 days or more (including
for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with
respect to which the related Mortgaged Property has been acquired by the Trust),
averaged over the last six

                                      -14-

<PAGE>

months, as a percentage of the sum of the aggregate Current Principal Amount of
the Subordinate Certificates does not exceed 100%, or (y) the aggregate
Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more
(including for this purpose any such Mortgage Loans in foreclosure and such
Mortgage Loans with respect to which the related Mortgaged Property has been
acquired by the Trust), averaged over the last six months, as a percentage of
the aggregate Scheduled Principal Balances of the Mortgage Loans averaged over
the last six months, does not exceed 2.0%; and (ii) cumulative Realized Losses
on the Mortgage Loans do not exceed (a) 30% of the Original Subordinate
Principal Balance if such Distribution Date occurs between and including
September 2008 and August 2009, (b) 35% of the Original Subordinate Principal
Balance if such Distribution Date occurs between and including September 2009
and August 2010, (c) 40% of the Original Subordinate Principal Balance if such
Distribution Date occurs between and including September 2010 and August 2011,
(d) 45% of the Original Subordinate Principal Balance if such Distribution Date
occurs between and including September 2011 and August 2012, and (e) 50% of the
Original Subordinate Principal Balance if such Distribution Date occurs during
or after September 2012; or (B) (i) the aggregate Scheduled Principal Balance of
the Mortgage Loans delinquent 60 days or more (including for this purpose any
such Mortgage Loans in foreclosure and such Mortgage Loans with respect to which
the related Mortgaged Property has been acquired by the Trust), averaged over
the last six months, does not exceed 4.0% of the then-current aggregate
Scheduled Principal Balance of the Mortgage Loans; and (ii) cumulative Realized
Losses on the Mortgage Loans do not exceed (a) 10% of the Original Subordinate
Principal Balance if such Distribution Date occurs between and including
September 2008 and August 2009, (b) 15% of the Original Subordinate Principal
Balance if such Distribution Date occurs between and including September 2009
and August 2010, (c) 20% of the Original Subordinate Principal Balance if such
Distribution Date occurs between and including September 2010 and August 2011,
(d) 25% of the Original Subordinate Principal Balance if such Distribution Date
occurs between and including September 2011 and August 2012, and (e) 30% of the
Original Subordinate Principal Balance if such Distribution Date occurs during
or after September 2012.

          In addition, if the current weighted average Subordinate Percentage is
equal to or greater than two times the initial weighted average Subordinate
Percentage for the Certificates, and (a) the aggregate Scheduled Principal
Balance of the Mortgage Loans delinquent 60 days or more (including for this
purpose any such Mortgage Loans in foreclosure and such Mortgage Loans with
respect to which the related Mortgaged Property has been acquired by the Trust),
averaged over the last six months, as a percentage of the sum of the aggregate
Current Principal Amount of the Subordinate Certificates does not exceed 100%
and (b)(i) prior to the Distribution Date in September 2004 cumulative Realized
Losses on the Mortgage Loans do not exceed 10% of the Original Subordinate
Principal Balance and (ii) on or after the Distribution Date in September 2004
cumulative Realized Losses on the Mortgage Loans do not exceed 20% of the
Original Subordinate Principal Balance, then, in each case, the Group 2 Senior
Prepayment Percentage for such Distribution Date will equal the Group 2 Senior
Percentage; provided, however, if the current weighted average Subordinate
Percentage for the Certificates is equal to or greater than two times the
initial weighted average Subordinate Percentage for the Certificates prior to
September 25, 2004 and the above delinquency

                                      -15-

<PAGE>

and loss tests are met, then the Group 2 Senior Prepayment Percentage for such
Distribution Date will equal the Group 2 Senior Percentage plus 50% of the
Subordinate Percentage.

          Notwithstanding the foregoing, if on any Distribution Date the Group 2
Senior Percentage exceeds the Group 2 Senior Percentage as of the Cut-Off Date,
the Group 2 Senior Prepayment Percentage for such Distribution Date will equal
100%. On the Distribution Date on which the Current Principal Amounts of the
Group 2 Senior Certificates are reduced to zero, the Group 2 Senior Prepayment
Percentage shall be the minimum percentage sufficient to effect such reduction
and thereafter shall be zero.

          GROUP 3 SENIOR PREPAYMENT PERCENTAGE: On any Distribution Date
occurring during the periods set forth below, as follows:

<TABLE>
<CAPTION>

<S>                                                   <C>
Period (dates inclusive)                              Group 3 Senior Prepayment Percentage
September 25, 2001 - August 25, 2008                  100%
September 25, 2008 - August 25, 2009                  Group 3 Senior Percentage plus 70% of the Group 3
                                                      Subordinate Percentage
September 25, 2009 - August 25, 2010                  Group 3 Senior Percentage plus 60% of the Group 3
                                                      Subordinate Percentage
September 25, 2010 - August 25, 2011                  Group 3 Senior Percentage plus 40% of the Group 3
                                                      Subordinate Percentage
September 25, 2011 - August 25, 2012                  Group 3 Senior Percentage plus 20% of the Group 3
                                                      Subordinate Percentage
September 25, 2012 and thereafter                     Group 3 Senior Percentage
</TABLE>

          In addition, no reduction of the Group 3 Senior Prepayment Percentage
shall occur on any Distribution Date unless, as of the last day of the month
preceding such Distribution Date, either (A) (i) (x) the aggregate Scheduled
Principal Balance of the Mortgage Loans delinquent 60 days or more (including
for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with
respect to which the related Mortgaged Property has been acquired by the Trust),
averaged over the last six months, as a percentage of the sum of the aggregate
Current Principal Amount of the Subordinate Certificates does not exceed 100%,
or (y) the aggregate Scheduled Principal Balance of the Mortgage Loans
delinquent 60 days or more (including for this purpose any such Mortgage Loans
in foreclosure and such Mortgage Loans with respect to which the related
Mortgaged Property has been acquired by the Trust), averaged over the last six
months, as a percentage of the aggregate Scheduled Principal Balances of the
Mortgage Loans averaged over the last six months, does not exceed 2.0%; and (ii)
cumulative Realized Losses on the Mortgage Loans do not exceed (a) 30% of the
Original Subordinate Principal Balance if such Distribution Date occurs between
and including September 2008 and August 2009, (b) 35% of the Original
Subordinate Principal Balance if such Distribution

                                      -16-

<PAGE>

Date occurs between and including September 2009 and August 2010, (c) 40% of the
Original Subordinate Principal Balance if such Distribution Date occurs between
and including September 2010 and August 2011, (d) 45% of the Original
Subordinate Principal Balance if such Distribution Date occurs between and
including September 2011 and August 2012, and (e) 50% of the Original
Subordinate Principal Balance if such Distribution Date occurs during or after
September 2012; or (B) (i) the aggregate Scheduled Principal Balance of the
Mortgage Loans delinquent 60 days or more (including for this purpose any such
Mortgage Loans in foreclosure and such Mortgage Loans with respect to which the
related Mortgaged Property has been acquired by the Trust), averaged over the
last six months, does not exceed 4.0% of the then-current aggregate Scheduled
Principal Balance of the Mortgage Loans; and (ii) cumulative Realized Losses on
the Mortgage Loans do not exceed (a) 10% of the Original Subordinate Principal
Balance if such Distribution Date occurs between and including September 2008
and August 2009, (b) 15% of the Original Subordinate Principal Balance if such
Distribution Date occurs between and including September 2009 and August 2010,
(c) 20% of the Original Subordinate Principal Balance if such Distribution Date
occurs between and including September 2010 and August 2011, (d) 25% of the
Original Subordinate Principal Balance if such Distribution Date occurs between
and including September 2011 and August 2012, and (e) 30% of the Original
Subordinate Principal Balance if such Distribution Date occurs during or after
September 2012.

          In addition, if the current weighted average Subordinate Percentage is
equal to or greater than two times the initial weighted average Subordinate
Percentage for the Certificates, and (a) the aggregate Scheduled Principal
Balance of the Mortgage Loans delinquent 60 days or more (including for this
purpose any such Mortgage Loans in foreclosure and such Mortgage Loans with
respect to which the related Mortgaged Property has been acquired by the Trust),
averaged over the last six months, as a percentage of the sum of the aggregate
Current Principal Amount of the Subordinate Certificates does not exceed 100%
and (b) (i) prior to the Distribution Date in September 2004 cumulative Realized
Losses on the Mortgage Loans do not exceed 10% of the Original Subordinate
Principal Balance and (ii) on or after the Distribution Date in September 2004
cumulative Realized Losses on the Mortgage Loans do not exceed 20% of the
Original Subordinate Principal Balance, then, in each case, the Group 3 Senior
Prepayment Percentage for such Distribution Date will equal the Group 3 Senior
Percentage; provided, however, if the current weighted average Subordinate
Percentage for the Certificates is equal to or greater than two times the
initial weighted average Subordinate Percentage for the Certificates prior to
September 25, 2004 and the above delinquency and loss tests are met, then the
Group 3 Senior Prepayment Percentage for such Distribution Date will equal the
Group 3 Senior Percentage plus 50% of the Subordinate Percentage.

          Notwithstanding the foregoing, if on any Distribution Date the Group 3
Senior Percentage exceeds the Group 3 Senior Percentage as of the Cut-Off Date,
the Group 3 Senior Prepayment Percentage for such Distribution Date will equal
100%. On the Distribution Date on which the Current Principal Amounts of the
Group 3 Senior Certificates are reduced to zero, the Group 3 Senior Prepayment
Percentage shall be the minimum percentage sufficient to effect such reduction
and thereafter shall be zero.

                                      -17-

<PAGE>

          GROUP 4 SENIOR PREPAYMENT PERCENTAGE: On any Distribution Date
occurring during the periods set forth below, as follows:

<TABLE>
<CAPTION>

<S>                                                   <C>
Period (dates inclusive)                              Group 4 Senior Prepayment Percentage
September 25, 2001 - August 25, 2008                  100%
September 25, 2008 - August 25, 2009                  Group 4 Senior Percentage plus 70% of the Group 4
                                                      Subordinate Percentage
September 25, 2009 - August 25, 2010                  Group 4 Senior Percentage plus 60% of the Group 4
                                                      Subordinate Percentage
September 25, 2010 - August 25, 2011                  Group 4 Senior Percentage plus 40% of the Group 4
                                                      Subordinate Percentage
September 25, 2011 - August 25, 2012                  Group 4 Senior Percentage plus 20% of the Group 4
                                                      Subordinate Percentage
September 25, 2012 and thereafter                     Group 4 Senior Percentage
</TABLE>

          In addition, no reduction of the Group 4 Senior Prepayment Percentage
shall occur on any Distribution Date unless, as of the last day of the month
preceding such Distribution Date, either (A) (i) (x) the aggregate Scheduled
Principal Balance of the Mortgage Loans delinquent 60 days or more (including
for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with
respect to which the related Mortgaged Property has been acquired by the Trust),
averaged over the last six months, as a percentage of the sum of the aggregate
Current Principal Amount of the Subordinate Certificates does not exceed 100%,
or (y) the aggregate Scheduled Principal Balance of the Mortgage Loans
delinquent 60 days or more (including for this purpose any such Mortgage Loans
in foreclosure and such Mortgage Loans with respect to which the related
Mortgaged Property has been acquired by the Trust), averaged over the last six
months, as a percentage of the aggregate Scheduled Principal Balances of the
Mortgage Loans averaged over the last six months, does not exceed 2.0%; and (ii)
cumulative Realized Losses on the Mortgage Loans do not exceed (a) 30% of the
Original Subordinate Principal Balance if such Distribution Date occurs between
and including September 2008 and August 2009, (b) 35% of the Original
Subordinate Principal Balance if such Distribution Date occurs between and
including September 2009 and August 2010, (c) 40% of the Original Subordinate
Principal Balance if such Distribution Date occurs between and including
September 2010 and August 2011, (d) 45% of the Original Subordinate Principal
Balance if such Distribution Date occurs between and including September 2011
and August 2012, and (e) 50% of the Original Subordinate Principal Balance if
such Distribution Date occurs during or after September 2012; or (B) (i) the
aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days
or more (including for this purpose any such Mortgage Loans in foreclosure and
such Mortgage Loans with respect to which the related Mortgaged Property has
been acquired by the Trust), averaged over the last six months, does not exceed
4.0% of the then-current aggregate Scheduled Principal Balance of the Mortgage
Loans; and (ii) cumulative Realized Losses on the Mortgage Loans do not exceed
(a)

                                      -18-

<PAGE>

10% of the Original Subordinate Principal Balance if such Distribution Date
occurs between and including September 2008 and August 2009, (b) 15% of the
Original Subordinate Principal Balance if such Distribution Date occurs between
and including September 2009 and August 2010, (c) 20% of the Original
Subordinate Principal Balance if such Distribution Date occurs between and
including September 2010 and August 2011, (d) 25% of the Original Subordinate
Principal Balance if such Distribution Date occurs between and including
September 2011 and August 2012, and (e) 30% of the Original Subordinate
Principal Balance if such Distribution Date occurs during or after September
2012.

          In addition, if the current weighted average Subordinate Percentage is
equal to or greater than two times the initial weighted average Subordinate
Percentage for the Certificates, and (a) the aggregate Scheduled Principal
Balance of the Mortgage Loans delinquent 60 days or more (including for this
purpose any such Mortgage Loans in foreclosure and such Mortgage Loans with
respect to which the related Mortgaged Property has been acquired by the Trust),
averaged over the last six months, as a percentage of the sum of the aggregate
Current Principal Amount of the Subordinate Certificates does not exceed 100%
and (b) (i) prior to the Distribution Date in September 2004 cumulative Realized
Losses on the Mortgage Loans do not exceed 10% of the Original Subordinate
Principal Balance and (ii) on or after the Distribution Date in September 2004
cumulative Realized Losses on the Mortgage Loans do not exceed 20% of the
Original Subordinate Principal Balance, then, in each case, the Group 4 Senior
Prepayment Percentage for such Distribution Date will equal the Group 4 Senior
Percentage; provided, however, if the current weighted average Subordinate
Percentage for the Certificates is equal to or greater than two times the
initial weighted average Subordinate Percentage for the Certificates prior to
September 25, 2004, then the Group 4 Senior Prepayment Percentage for such
Distribution Date will equal the Group 4 Senior Percentage plus 50% of the
Subordinate Percentage.

          Notwithstanding the foregoing, if on any Distribution Date the Group 4
Senior Percentage exceeds the Group 4 Senior Percentage as of the Cut-Off Date,
the Group 4 Senior Prepayment Percentage for such Distribution Date will equal
100%. On the Distribution Date on which the Current Principal Amounts of the
Group 4 Senior Certificates are reduced to zero, the Group 4 Senior Prepayment
Percentage shall be the minimum percentage sufficient to effect such reduction
and thereafter shall be zero.

          GROUP 5 SENIOR PREPAYMENT PERCENTAGE: On any Distribution Date
occurring during the periods set forth below, as follows:

<TABLE>
<CAPTION>

<S>                                                   <C>
Period (dates inclusive)                              Group 5 Senior Prepayment Percentage
September 25, 2001 - August 25, 2008                  100%
September 25, 2008 - August 25, 2009                  Group 5 Senior Percentage plus 70% of the Group 5
                                                      Subordinate Percentage

                                      -19-

<PAGE>

September 25, 2009 - August 25, 2010                  Group 5 Senior Percentage plus 60% of the Group 5
                                                      Subordinate Percentage
September 25, 2010 - August 25, 2011                  Group 5 Senior Percentage plus 40% of the Group 5
                                                      Subordinate Percentage
September 25, 2011 - August 25, 2012                  Group 5 Senior Percentage plus 20% of the Group 5
                                                      Subordinate Percentage
September 25, 2012 and thereafter                     Group 5 Senior Percentage
</TABLE>

          In addition, no reduction of the Group 5 Senior Prepayment Percentage
shall occur on any Distribution Date unless, as of the last day of the month
preceding such Distribution Date, either (A) (i) (x) the aggregate Scheduled
Principal Balance of the Mortgage Loans delinquent 60 days or more (including
for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with
respect to which the related Mortgaged Property has been acquired by the Trust),
averaged over the last six months, as a percentage of the sum of the aggregate
Current Principal Amount of the Subordinate Certificates does not exceed 100%,
or (y) the aggregate Scheduled Principal Balance of the Mortgage Loans
delinquent 60 days or more (including for this purpose any such Mortgage Loans
in foreclosure and such Mortgage Loans with respect to which the related
Mortgaged Property has been acquired by the Trust), averaged over the last six
months, as a percentage of the aggregate Scheduled Principal Balances of the
Mortgage Loans averaged over the last six months, does not exceed 2.0%; and (ii)
cumulative Realized Losses on the Mortgage Loans do not exceed (a) 30% of the
Original Subordinate Principal Balance if such Distribution Date occurs between
and including September 2008 and August 2009, (b) 35% of the Original
Subordinate Principal Balance if such Distribution Date occurs between and
including September 2009 and August 2010, (c) 40% of the Original Subordinate
Principal Balance if such Distribution Date occurs between and including
September 2010 and August 2011, (d) 45% of the Original Subordinate Principal
Balance if such Distribution Date occurs between and including September 2011
and August 2012, and (e) 50% of the Original Subordinate Principal Balance if
such Distribution Date occurs during or after September 2012; or (B) (i) the
aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days
or more (including for this purpose any such Mortgage Loans in foreclosure and
such Mortgage Loans with respect to which the related Mortgaged Property has
been acquired by the Trust), averaged over the last six months, does not exceed
4.0% of the then-current aggregate Scheduled Principal Balance of the Mortgage
Loans; and (ii) cumulative Realized Losses on the Mortgage Loans do not exceed
(a) 10% of the Original Subordinate Principal Balance if such Distribution Date
occurs between and including September 2008 and August 2009, (b) 15% of the
Original Subordinate Principal Balance if such Distribution Date occurs between
and including September 2009 and August 2010, (c) 20% of the Original
Subordinate Principal Balance if such Distribution Date occurs between and
including September 2010 and August 2011, (d) 25% of the Original Subordinate
Principal Balance if such Distribution Date occurs between and including
September 2011 and August 2012, and (e) 30% of the Original Subordinate
Principal Balance if such Distribution Date occurs during or after September
2012.

                                      -20-

<PAGE>

          In addition, if the current weighted average Subordinate Percentage is
equal to or greater than two times the initial weighted average Subordinate
Percentage for the Certificates, and (a) the aggregate Scheduled Principal
Balance of the Mortgage Loans delinquent 60 days or more (including for this
purpose any such Mortgage Loans in foreclosure and such Mortgage Loans with
respect to which the related Mortgaged Property has been acquired by the Trust),
averaged over the last six months, as a percentage of the sum of the aggregate
Current Principal Amount of the Subordinate Certificates does not exceed 100%
and (b) (i) prior to the Distribution Date in September 2004 cumulative Realized
Losses on the Mortgage Loans do not exceed 10% of the Original Subordinate
Principal Balance and (ii) on or after the Distribution Date in September 2004
cumulative Realized Losses on the Mortgage Loans do not exceed 20% of the
Original Subordinate Principal Balance, then, in each case, the Group 5 Senior
Prepayment Percentage for such Distribution Date will equal the Group 5 Senior
Percentage; provided, however, if the current weighted average Subordinate
Percentage for the Certificates is equal to or greater than two times the
initial weighted average Subordinate Percentage for the Certificates prior to
September 25, 2004, then the Group 5 Senior Prepayment Percentage for such
Distribution Date will equal the Group 5 Senior Percentage plus 50% of the
Subordinate Percentage.

          Notwithstanding the foregoing, if on any Distribution Date the Group 5
Senior Percentage exceeds the Group 5 Senior Percentage as of the Cut-Off Date,
the Group 5 Senior Prepayment Percentage for such Distribution Date will equal
100%. On the Distribution Date on which the Current Principal Amounts of the
Group 5 Senior Certificates are reduced to zero, the Group 5 Senior Prepayment
Percentage shall be the minimum percentage sufficient to effect such reduction
and thereafter shall be zero.

          GROUP 1 SUBORDINATE PERCENTAGE: On any Distribution Date, 100% minus
the Group 1 Senior Percentage.

          GROUP 2 SUBORDINATE PERCENTAGE: On any Distribution Date, 100% minus
the Group 2 Senior Percentage.

          GROUP 3 SUBORDINATE PERCENTAGE: On any Distribution Date, 100% minus
the Group 3 Senior Percentage.

          GROUP 4 SUBORDINATE PERCENTAGE: On any Distribution Date, 100% minus
the Group 4 Senior Percentage.

          GROUP 5 SUBORDINATE PERCENTAGE: On any Distribution Date, 100% minus
the Group 5 Senior Percentage.

          GROUP 1 SUBORDINATE PREPAYMENT PERCENTAGE: With respect to the Group 1
Mortgage Loans, on any Distribution Date, 100% minus the Group 1 Senior
Prepayment Percentage, except that on any Distribution Date after the Current
Principal Amounts of the Group 1 Senior Certificates have each been reduced to
zero, the Group 1 Subordinate Prepayment Percentage will equal 100%.

                                      -21-

<PAGE>

          GROUP 2 SUBORDINATE PREPAYMENT PERCENTAGE: With respect to the Group 2
Mortgage Loans, on any Distribution Date, 100% minus the Group 2 Senior
Prepayment Percentage, except that on any Distribution Date after the Current
Principal Amounts of the Group 2 Senior Certificates have each been reduced to
zero, the Group 2 Subordinate Prepayment Percentage will equal 100%.

          GROUP 3 SUBORDINATE PREPAYMENT PERCENTAGE: With respect to the Group 3
Mortgage Loans, on any Distribution Date, 100% minus the Group 3 Senior
Prepayment Percentage, except that on any Distribution Date after the Current
Principal Amounts of the Group 3 Senior Certificates have each been reduced to
zero, the Group 3 Subordinate Prepayment Percentage will equal 100%.

          GROUP 4 SUBORDINATE PREPAYMENT PERCENTAGE: With respect to the Group 4
Mortgage Loans, on any Distribution Date, 100% minus the Group 4 Senior
Prepayment Percentage, except that on any Distribution Date after the Current
Principal Amounts of the Group 4 Senior Certificates have each been reduced to
zero, the Group 4 Subordinate Prepayment Percentage will equal 100%.

          GROUP 5 SUBORDINATE PREPAYMENT PERCENTAGE: With respect to the Group 5
Mortgage Loans, on any Distribution Date, 100% minus the Group 5 Senior
Prepayment Percentage, except that on any Distribution Date after the Current
Principal Amounts of the Group 5 Senior Certificates have each been reduced to
zero, the Group 5 Subordinate Prepayment Percentage will equal 100%.

          HOLDER: The Person in whose name a Certificate is registered in the
Certificate Register, except that, subject to Subsections 12.02(b) and 12.05(e),
solely for the purpose of giving any consent pursuant to this Agreement, any
Certificate registered in the name of the Seller, the Master Servicer or the
Trustee or any Affiliate thereof shall be deemed not to be outstanding and the
Fractional Undivided Interest evidenced thereby shall not be taken into account
in determining whether the requisite percentage of Fractional Undivided
Interests necessary to effect any such consent has been obtained.

          INDEMNIFIED PERSONS: The Trustee, the Master Servicer, and the
Securities Administrator and their officers, directors, agents and employees
and, with respect to the Trustee, any separate co- trustee and its officers,
directors, agents and employees.

          INDEPENDENT: When used with respect to any specified Person, this term
means that such Person (a) is in fact independent of the Seller or the Master
Servicer and of any Affiliate of the Seller or the Master Servicer, (b) does not
have any direct financial interest or any material indirect financial interest
in the Seller or the Master Servicer or any Affiliate of the Seller or the
Master Servicer and (c) is not connected with the Seller or the Master Servicer
or any Affiliate as an officer, employee, promoter, underwriter, trustee,
partner, director or person performing similar functions.

          INDEX: The index, if any, specified in a Mortgage Note by reference to
which the related Mortgage Interest Rate will be adjusted from time to time.

                                      -22-

<PAGE>

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

          INITIAL CERTIFICATION: The certification substantially in the form of
Exhibit One to the Custodial Agreement.

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

          INSURANCE POLICY: With respect to any Mortgage Loan, any standard
hazard insurance policy, flood insurance policy or title insurance policy.

          INSURANCE PROCEEDS: Amounts paid by the insurer under any Insurance
Policy covering any Mortgage Loan or Mortgaged Property other than amounts
required to be paid over to the Mortgagor pursuant to law or the related
Mortgage Note or Security Instrument and other than amounts used to repair or
restore the Mortgaged Property or to reimburse insured expenses.

          INTEREST ACCRUAL PERIOD: With respect to each Distribution Date, for
each Class of Certificates, the calendar month preceding the month in which such
Distribution Date occurs.

          INTEREST ADJUSTMENT DATE: With respect to a Mortgage Loan, the date,
if any, specified in the related Mortgage Note on which the Mortgage Interest
Rate is subject to adjustment.

          INTEREST SHORTFALL: With respect to any Distribution Date and each
Mortgage Loan that during the related Prepayment Period was the subject of a
Principal Prepayment or constitutes a Relief Act Mortgage Loan, an amount
determined as follows:

                   (a) Partial principal prepayments received during the
          relevant Prepayment Period: The difference between (i) one month's
          interest at the applicable Net Rate on the amount of such prepayment
          and (ii) the amount of interest for the calendar month of such
          prepayment (adjusted to the applicable Net Rate) received at the time
          of such prepayment;

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

                   (c) Relief Act Mortgage Loans: As to any Relief Act Mortgage
          Loan, the excess of (i) 30 days' interest (or, in the case of a
          principal prepayment in full, interest to the date of prepayment) on
          the Scheduled Principal Balance thereof (or, in the case of a
          principal prepayment in part, on the amount so prepaid) at the related
          Net Rate over (ii) 30 days'

                                      -23-

<PAGE>

          interest (or, in the case of a principal prepayment in full, interest
          to the date of prepayment) on such Scheduled Principal Balance (or, in
          the case of a Principal Prepayment in part, on the amount so prepaid)
          at the Net Rate required to be paid by the Mortgagor as limited by
          application of the Relief Act.

          INTERIM CERTIFICATION: The certification substantially in the form of
Exhibit Two to the Custodial Agreement.

          INVESTMENT LETTER: The letter to be furnished by each Institutional
Accredited Investor which purchases any of the Private Certificates in
connection with such purchase, substantially in the form set forth as Exhibit
F-1 hereto.

          LIQUIDATED MORTGAGE LOAN: Any defaulted Mortgage Loan as to which the
related Servicer or the Master Servicer has determined that all amounts it
expects to recover from or on account of such Mortgage Loan have been recovered.

          LIQUIDATION DATE: With respect to any Liquidated Mortgage Loan, the
date on which the Master Servicer or the related Servicer has certified that
such Mortgage Loan has become a Liquidated Mortgage Loan.

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

          LIQUIDATION PROCEEDS: Cash received in connection with the liquidation
of a defaulted Mortgage Loan, whether through trustee's sale, foreclosure sale,
Insurance Proceeds, condemnation proceeds or otherwise.

          LOAN GROUP: Loan Group 1, Loan Group 2, Loan Group 3, Loan Group 4 or
Loan Group 5, as applicable.

          LOAN GROUP 1: The group of Mortgage Loans designated as belonging to
Loan Group 1 on the Mortgage Loan Schedule.

          LOAN GROUP 2: The group of Mortgage Loans designated as belonging to
Loan Group 2 on the Mortgage Loan Schedule.

          LOAN GROUP 3: The group of Mortgage Loans designated as belonging to
Loan Group 3 on the Mortgage Loan Schedule.

                                      -24-

<PAGE>

          LOAN GROUP 4: The group of Mortgage Loans designated as belonging to
Loan Group 4 on the Mortgage Loan Schedule.

          LOAN GROUP 5: The group of Mortgage Loans designated as belonging to
Loan Group 5 on the Mortgage Loan Schedule.

          LOAN-TO-VALUE RATIO: With respect to any Mortgage Loan, the fraction,
expressed as a percentage, the numerator of which is the original principal
balance of the related Mortgage Loan and the denominator of which is the
Original Value of the related Mortgaged Property.

          LOSS ALLOCATION LIMITATION: The meaning specified in Section 6.02(c)
hereof.

          LOST NOTES: The original Mortgage Notes that have been lost, as
indicated on the Mortgage Loan Schedule.

          MASTER SERVICER: As of the Closing Date, Wells Fargo Bank Minnesota,
National Association and, thereafter, its respective successors in interest who
meet the qualifications of the Servicing Agreements and this Agreement.

          MASTER SERVICER COLLECTION ACCOUNT: The trust account or accounts
created and maintained pursuant to Section 4.02, which shall be denominated
"LaSalle Bank National Association, as Trustee f/b/o holders of Structured Asset
Mortgage Investments Inc., Bear Stearns ARM Trust, Mortgage Pass-Through
Certificates, Series 2001-6 - Master Servicer Collection Account."

          MASTER SERVICING COMPENSATION: The meaning specified in Section
3.14(a).

          MAXIMUM LIFETIME MORTGAGE RATE: The maximum level to which a Mortgage
Interest Rate can adjust in accordance with its terms, regardless of changes in
the applicable Index.

          MINIMUM LIFETIME MORTGAGE RATE: The minimum level to which a Mortgage
Interest Rate can adjust in accordance with its terms, regardless of changes in
the applicable Index.

          MLCC:  Merrill Lynch Credit Corporation

          MONTHLY ADVANCE: An advance of principal or interest required to be
made by the applicable Servicer pursuant to the related Servicing Agreement or
the Master Servicer pursuant to Section 6.05.

          MOODY'S: Moody's Investors Service, Inc. or its successor in interest.

          MORTGAGE FILE: The mortgage documents listed in Section 2.01(b)
pertaining to a particular Mortgage Loan and any additional documents required
to be added to the Mortgage File pursuant to this Agreement.

                                      -25-

<PAGE>

          MORTGAGE INTEREST RATE: The annual rate at which interest accrues from
time to time on any Mortgage Loan pursuant to the related Mortgage Note, which
rate is equal to the "Mortgage Interest Rate" set forth with respect thereto on
the Mortgage Loan Schedule.

          MORTGAGE LOAN: A mortgage loan transferred and assigned to the Trustee
pursuant to Section 2.01 or Section 2.04 and held as a part of the Trust Fund,
as identified in the Mortgage Loan Schedule, including a mortgage loan the
property securing which has become an REO Property.

          MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase Agreement
dated as of August 30, 2001, between EMC, as seller, and Structured Asset
Mortgage Investments Inc., as purchaser, and all amendments thereof and
supplements thereto attached as Exhibit J.

          MORTGAGE LOAN SCHEDULE: The schedule, attached hereto as Exhibit B
with respect to the Mortgage Loans and as amended from time to time to reflect
the repurchase or substitution of Mortgage Loans pursuant to this Agreement.

          MORTGAGE LOAN SELLER: EMC Mortgage Corporation, as mortgage loan
seller under the Mortgage Loan Purchase Agreement.

          MORTGAGE NOTE: The originally executed note or other evidence of the
indebtedness of a Mortgagor under the related Mortgage Loan.

          MORTGAGED PROPERTY: Land and improvements securing the indebtedness of
a Mortgagor under the related Mortgage Loan or, in the case of REO Property,
such REO Property.

          MORTGAGOR: The obligor on a Mortgage Note.

          NET INTEREST SHORTFALL: With respect to any Distribution Date, the
Interest Shortfall, if any, for such Distribution Date net of Compensating
Interest Payments made with respect to such Distribution Date.

          NET LIQUIDATION PROCEEDS: As to any Liquidated Mortgage Loan,
Liquidation Proceeds net of (i) Liquidation Expenses which are payable therefrom
by the related Servicer or the Master Servicer in accordance with the related
Servicing Agreement or this Agreement and (ii) unreimbursed advances by the
related Servicer or the Master Servicer and Monthly Advances.

          NET RATE: With respect to each Mortgage Loan, the Mortgage Interest
Rate in effect from time to time less the Aggregate Expense Rate (expressed as a
per annum rate).

          NONRECOVERABLE ADVANCE: Any advance or Monthly Advance (i) which was
previously made or is proposed to be made by the Master Servicer, the Trustee
(as successor Master Servicer) or applicable Servicer and (ii) which, in the
good faith judgment of the Master Servicer, the Trustee or applicable Servicer,
will not or, in the case of a proposed advance or Monthly Advance, would not,

                                      -26-

<PAGE>

be ultimately recoverable by the Master Servicer, the Trustee (as successor
Master Servicer) or applicable Servicer from Liquidation Proceeds, Insurance
Proceeds or future payments on the Mortgage Loan for which such advance or
Monthly Advance was made.

          OFFERED CERTIFICATE: Any Senior Certificate or Offered Subordinate
Certificate.

          OFFERED SUBORDINATE CERTIFICATES: The Class B-l, Class B-2 and Class
B-3 Certificates.

          OFFICER'S CERTIFICATE: A certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President or a Vice President or
Assistant Vice President or other authorized officer of the Master Servicer or
the Seller, as applicable, and delivered to the Trustee, as required by this
Agreement.

          OPINION OF COUNSEL: A written opinion of counsel who is or are
acceptable to the Trustee and who, unless required to be Independent (an
"Opinion of Independent Counsel"), may be internal counsel for EMC, the Master
Servicer or the Seller.

          ORIGINAL SUBORDINATE PRINCIPAL BALANCE: The sum of the aggregate
Current Principal Amounts of each Class of Subordinate Certificates as of the
Closing Date.

          ORIGINAL VALUE: The lesser of (i) the Appraised Value or (ii) the
sales price of a Mortgaged Property at the time of origination of a Mortgage
Loan, except in instances where either clauses (i) or (ii) is unavailable, the
other may be used to determine the Original Value, or if both clauses (i) and
(ii) are unavailable, Original Value may be determined from other sources
reasonably acceptable to the Seller.

          ORIGINATOR: With respect to each Mortgage Loan, the originator
specified in the related Servicing Agreement or Assignment Agreement.

          OUTSTANDING MORTGAGE LOAN: With respect to any Due Date, a Mortgage
Loan which, prior to such Due Date, was not the subject of a Principal
Prepayment in full, did not become a Liquidated Mortgage Loan and was not
purchased or replaced.

          OUTSTANDING PRINCIPAL BALANCE: As of the time of any determination,
the principal balance of a Mortgage Loan remaining to be paid by the Mortgagor,
or, in the case of an REO Property, the principal balance of the related
Mortgage Loan remaining to be paid by the Mortgagor at the time such property
was acquired by the Trust Fund less any Net Liquidation Proceeds with respect
thereto to the extent applied to principal.

          PASS-THROUGH RATE: As to each Class of Certificates, the rate of
interest determined as provided with respect thereto, in Section 5.01(d). Any
monthly calculation of interest at a stated rate shall be based upon annual
interest at such rate divided by twelve.

                                      -27-

<PAGE>

          PERIODIC RATE CAP: With respect to each Mortgage Loan, the maximum
adjustment that can be made to the Mortgage Interest Rate on each Interest
Adjustment Date in accordance with its terms, regardless of changes in the
applicable Index.

          PERMITTED INVESTMENTS: Any one or more of the following obligations or
securities held in the name of the Trustee for the benefit of the
Certificateholders:

                                     (i) direct obligations of, and obligations
                            the timely payment of which are fully guaranteed by
                            the United States of America or any agency or
                            instrumentality of the United States of America the
                            obligations of which are backed by the full faith
                            and credit of the United States of America;

                   (ii) (a) demand or time deposits, federal funds or bankers'
          acceptances issued by any depository institution or trust company
          incorporated under the laws of the United States of America or any
          state thereof (including the Trustee or the Master Servicer each
          acting in its commercial banking capacity) and subject to supervision
          and examination by federal and/or state banking authorities, provided
          that the commercial paper and/or the short-term debt rating and/or the
          long-term unsecured debt obligations of such depository institution or
          trust company at the time of such investment or contractual commitment
          providing for such investment have the Applicable Credit Rating or
          better from each Rating Agency and (b) any other demand or time
          deposit or certificate of deposit that is fully insured by the Federal
          Deposit Insurance Corporation;

                   (iii) repurchase obligations with respect to (a) any security
          described in clause (i) above or (b) any other security issued or
          guaranteed by an agency or instrumentality of the United States of
          America, the obligations of which are backed by the full faith and
          credit of the United States of America, in either case entered into
          with a depository institution or trust company (acting as principal)
          described in clause (ii)(a) above where the Trustee holds the security
          therefor;

                   (iv) securities bearing interest or sold at a discount issued
          by any corporation (including the Trustee or the Master Servicer)
          incorporated under the laws of the United States of America or any
          state thereof that have the Applicable Credit Rating or better from
          each Rating Agency at the time of such investment or contractual
          commitment providing for such investment; PROVIDED, HOWEVER, that
          securities issued by any particular corporation will not be Permitted
          Investments to the extent that investments therein will cause the then
          outstanding principal amount of securities issued by such corporation
          and held as part of the Trust to exceed 10% of the aggregate
          Outstanding Principal Balances of all the Mortgage Loans and Permitted
          Investments held as part of the Trust;

                  (v) commercial paper (including both non-interest-bearing
          discount obligations and interest-bearing obligations payable on
          demand or on a specified date not more than one

                                      -28-

<PAGE>

          year after the date of issuance thereof) having the Applicable Credit
          Rating or better from each Rating Agency at the time of such
          investment;

                   (vi) a Reinvestment Agreement issued by any bank, insurance
          company or other corporation or entity;

                   (vii) any other demand, money market or time deposit,
          obligation, security or investment as may be acceptable to each Rating
          Agency as evidenced in writing by each Rating Agency to the Trustee;
          and

                   (viii) any money market or common trust fund having the
          Applicable Credit Rating or better from each Rating Agency, including
          any such fund for which the Trustee or Master Servicer or any
          affiliate of the Trustee or Master Servicer acts as a manager or an
          advisor;

PROVIDED, HOWEVER, that no instrument or security shall be a Permitted
Investment if such instrument or security evidences a right to receive only
interest payments with respect to the obligations underlying such instrument or
if such security provides for payment of both principal and interest with a
yield to maturity in excess of 120% of the yield to maturity at par or if such
instrument or security is purchased at a price greater than par.

          PERMITTED TRANSFEREE: Any Person other than a Disqualified
Organization or an "electing large partnership" (as defined by Section 775 of
the Code).

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

          PHYSICAL CERTIFICATES: The Residual Certificates and the Private
Certificates.

          PREPAYMENT CHARGE: With respect to any Mortgage Loan, the charges or
premiums, if any, due in connection with a full or partial prepayment of such
Mortgage Loan in accordance with the terms thereof.

          PREPAYMENT PERIOD: With respect to any Mortgage Loan and any
Distribution Date, the calendar month preceding the month in which such
Distribution Date occurs.

          PRINCIPAL PREPAYMENT: Any payment (whether partial or full) or other
recovery of principal on a Mortgage Loan which is received in advance of its
scheduled Due Date to the extent that it is not accompanied by an amount as to
interest representing scheduled interest due on any date or dates in any month
or months subsequent to the month of prepayment, including Insurance Proceeds
and the purchase price in connection with any purchase of a Mortgage Loan, any
cash deposit in connection with the substitution of a Mortgage Loan, and the
principal portion of Net Liquidation Proceeds.

                                      -29-

<PAGE>

          PRIVATE CERTIFICATES: Any Class B-4, Class B-5 and Class B-6
Certificate.

          PROTECTED ACCOUNT: An account established and maintained for the
benefit of Certificateholders by each Servicer with respect to the related
Mortgage Loans and with respect to REO Property pursuant to the respective
Servicing Agreements.

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

          QUALIFIED INSURER: Any insurance company duly qualified as such under
the laws of the state or states in which the related Mortgaged Property or
Mortgaged Properties is or are located, duly authorized and licensed in such
state or states to transact the type of insurance business in which it is
engaged and approved as an insurer by the Master Servicer, so long as the claims
paying ability of which is acceptable to the Rating Agencies for pass-through
certificates having the same rating as the Certificates rated by the Rating
Agencies as of the Closing Date.

          RATING AGENCIES: S&P and Moody's.

          REALIZED LOSS: Any (i) Deficient Valuation or (ii) as to any
Liquidated Mortgage Loan, (x) the Outstanding Principal Balance of such
Liquidated Mortgage Loan plus accrued and unpaid interest thereon at the
Mortgage Interest Rate through the last day of the month of such liquidation,
LESS (y) the related Net Liquidation Proceeds with respect to such Mortgage
Loan.

          RECORD DATE: With respect to any Distribution Date, the close of
business on the last Business Day of the month immediately preceding the month
of such Distribution Date.

          REINVESTMENT AGREEMENTS: One or more reinvestment agreements,
acceptable to the Rating Agencies, from a bank, insurance company or other
corporation or entity (including the Trustee).

          RELIEF ACT: The Soldiers' and Sailors' Civil Relief Act of 1940, as
amended.

          RELIEF ACT MORTGAGE LOAN: Any Mortgage Loan as to which the Scheduled
Payment thereof has been reduced due to the application of the Relief Act

          REMIC: A real estate mortgage investment conduit, as defined in the
Code.

          REMIC I: That group of assets contained in the Trust Fund designated
as a REMIC consisting of (i) the Mortgage Loans, (ii) the Master Servicer
Collection Account, (iii) any REO Property relating to the Mortgage Loans, (iv)
the rights with respect to any related Servicing Agreement, (v) the rights with
respect to any related Servicing Agreement and (vi) any proceeds of the
foregoing.

          REMIC I INTERESTS: The REMIC I Regular Interests and the Class R-I
Certificates.

                                      -30-

<PAGE>

          REMIC I REGULAR INTERESTS: The REMIC I Regular Interests, with such
terms as described in Section 5.01(c).

          REMIC II: That group of assets contained in the Trust Fund designated
as a REMIC consisting of the REMIC I Regular Interests.

          REMIC II CERTIFICATES: The REMIC II Regular Certificates and the Class
R-II Certificates.

          REMIC II REGULAR CERTIFICATES: As defined in Section 5.01(c).

          REMIC OPINION: An Opinion of Independent Counsel, to the effect that
the proposed action described therein would not, under the REMIC Provisions, (i)
cause REMIC I or REMIC II to fail to qualify as a REMIC while any regular
interest in such REMIC is outstanding, (ii) result in a tax on prohibited
transactions with respect to any REMIC or (iii) constitute a taxable
contribution to any REMIC after the Startup Day.

          REMIC PROVISIONS: The provisions of the federal income tax law
relating to the REMIC, which appear at Sections 860A through 860G of the Code,
and related provisions and regulations promulgated thereunder, as the foregoing
may be in effect from time to time.

          REO PROPERTY: A Mortgaged Property acquired in the name of the
Trustee, for the benefit of Certificateholders, by foreclosure or deed-in-lieu
of foreclosure in connection with a defaulted Mortgage Loan.

          REPURCHASE PRICE: With respect to any Mortgage Loan (or any property
acquired with respect thereto) required to be repurchased by the Mortgage Loans
Seller or related Originator pursuant to the Mortgage Loan Purchase Agreement,
the related Assignment Agreement or the related Servicing Agreement or Article
II of this Agreement, an amount equal to the sum of (i) 100% of the Outstanding
Principal Balance of such Mortgage Loan as of the date of repurchase (or if the
related Mortgaged Property was acquired with respect thereto, 100% of the
Outstanding Principal Balance at the date of the acquisition), plus (ii) accrued
but unpaid interest on the Outstanding Principal Balance at the related Mortgage
Interest Rate, through and including the last day of the month of repurchase,
and reduced by (iii) any portion of the Master Servicing Compensation, Monthly
Advances and advances payable to the purchaser of the Mortgage Loan.

          REQUEST FOR RELEASE: A request for release in the form attached hereto
as Exhibit D.

          REQUIRED INSURANCE POLICY: With respect to any Mortgage Loan, any
insurance policy which is required to be maintained from time to time under this
Agreement with respect to such Mortgage Loan.

          REQUIRED SURETY PAYMENT: With respect to any Additional Collateral
Mortgage Loan that becomes a Liquidated Mortgage Loan, the lesser of (i) the
principal portion of the Realized Loss with

                                      -31-

<PAGE>

respect to such Mortgage Loan and (ii) the excess, if any, of (a) the amount of
Additional Collateral required at origination with respect to such Mortgage Loan
over (b) the net proceeds realized by the related Servicer from the related
Additional Collateral.

          RESIDUAL CERTIFICATES:  Any of the Class R Certificates.

          RESPONSIBLE OFFICER: Any officer assigned to the Corporate Trust
Office (or any successor thereto), including any Vice President, Assistant Vice
President, Trust Officer, any Assistant Secretary, any trust officer or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and having direct
responsibility for the administration of this Agreement, and any other officer
of the Trustee to whom a matter arising hereunder may be referred.

          RULE 144A CERTIFICATE: The certificate to be furnished by each
purchaser of a Private Certificate (which is also a Physical Certificate) which
is a Qualified Institutional Buyer as defined under Rule 144A promulgated under
the Securities Act, substantially in the form set forth as Exhibit F-2 hereto.

          S&P: Standard and Poor's, a division of The McGraw-Hill Companies,
Inc., and its successors in interest.

          SCHEDULED PAYMENT: With respect to any Mortgage Loan and any month,
the scheduled payment or payments of principal and interest due during such
month on such Mortgage Loan which either is payable by a Mortgagor in such month
under the related Mortgage Note or, in the case of REO Property, would otherwise
have been payable under the related Mortgage Note.

          SCHEDULED PRINCIPAL: The principal portion of any Scheduled Payment.

          SCHEDULED PRINCIPAL BALANCE: With respect to any Mortgage Loan on any
Distribution Date, (i) the unpaid principal balance of such Mortgage Loan as of
the close of business on the related Due Date (i.e., taking account of the
principal payment to be made on such Due Date and irrespective of any
delinquency in its payment), as specified in the amortization schedule at the
time relating thereto (before any adjustment to such amortization schedule by
reason of any bankruptcy or similar proceeding occurring after the Cut-off Date
(other than a Deficient Valuation) or any moratorium or similar waiver or grace
period) and less (ii) any Principal Prepayments (including the principal portion
of Net Liquidation Proceeds) received during or prior to the related Prepayment
Period; provided that the Scheduled Principal Balance of a Liquidated Mortgage
Loan is zero.

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

          SECURITIES ADMINISTRATOR: Wells Fargo Bank Minnesota, National
Association, or its successor in interest, or any successor securities
administrator appointed as herein provided.

                                      -32-

<PAGE>

          SECURITIES LEGEND: "THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS
CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER
APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
("RULE 144A") TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A "QIB"), PURCHASING FOR
ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER
HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3)
IN CERTIFICATED FORM TO AN "INSTITUTIONAL ACCREDITED INVESTOR" WITHIN THE
MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT
OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS
PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO
(A) THE RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN
THE AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE
ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN
COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY
OTHER APPLICABLE JURISDICTION. THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR
INDIRECTLY BY, OR ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT WHICH IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED, AND/OR SECTION 4975 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED [in the case of the Class B-4, Class B-5 and Class B-6
Certificates:, UNLESS THE PROPOSED TRANSFER AND/OR HOLDING OF A CERTIFICATE AND
THE SERVICING, MANAGEMENT AND/OR OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL
NOT RESULT IN ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN
INDIVIDUAL OR CLASS PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED
TO, PROHIBITED TRANSACTION EXEMPTION ("PTE") 84-14, PTE 91-38, PTE 90-1, PTE
95-60 OR PTE 96-23 AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL FIDUCIARY
DUTIES ON THE PART OF THE SELLER, THE SECURITIES ADMINISTRATOR, THE MASTER
SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER OF A
BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A
REPRESENTATION OR AN OPINION OF COUNSEL TO SUCH EFFECT BY OR ON BEHALF OF AN
INSTITUTIONAL ACCREDITED INVESTOR].

                                      -33-

<PAGE>

          SECURITY INSTRUMENT: A written instrument creating a valid first lien
on a Mortgaged Property securing a Mortgage Note, which may be any applicable
form of mortgage, deed of trust, deed to secure debt or security deed, including
any riders or addenda thereto.

          SELLER: Structured Asset Mortgage Investments Inc., a Delaware
corporation, or its successors in interest.

          SENIOR CERTIFICATES: The Group 1 Senior Certificates, Group 2 Senior
Certificates, Group 3 Senior Certificates, Group 4 Senior Certificates or Group
5 Senior Certificates.

          SENIOR PERCENTAGE: The Group 1 Senior Percentage, Group 2 Senior
Percentage, Group 3 Senior Percentage, Group 4 Senior Percentage or Group 5
Senior Percentage.

          SENIOR PREPAYMENT PERCENTAGE: The Group 1 Senior Prepayment
Percentage, Group 2 Senior Prepayment Percentage, Group 3 Senior Prepayment
Percentage, Group 4 Senior Prepayment Percentage or Group 5 Senior Prepayment.

          SERVICER: With respect to each Mortgage Loan, the servicer specified
in the related Servicing Agreement.

          SERVICER REMITTANCE DATE: With respect to each Mortgage Loan, the date
set forth in the related Servicing Agreement.

          SERVICING AGREEMENTS: The Bank of America Servicing Agreement,
Cendant/MLCC Servicing Agreement, First Chicago Servicing Agreement, GMAC
Servicing Agreement, Washington Mutual Servicing Agreement and WFHMC Servicing
Agreement.

          SERVICING FEE: As to any Mortgage Loan and Distribution Date, an
amount equal to the product of (i) the Scheduled Principal Balance of such
Mortgage Loan as of the Due Date in the preceding calendar month and (ii) the
applicable Servicing Fee Rate.

          SERVICING FEE RATE: As to any Mortgage Loan, a per annum rate as set
forth in the Mortgage Loan Schedule.

          STARTUP DAY: August 30, 2001.

          STOP-LOSS AMOUNT: As of the Cut-off Date, 2.00% of the aggregate
Stated Principal Balance as of the Cut-off Date of the Mortgage Loans covered by
the Supplemental PMI Policy. With respect to any date of determination after the
Cut-off Date, the initial Stop-Loss Amount, less the aggregate amount of claims
paid by the Supplemental PMI Insurer in respect of the Supplemental PMI Policy
on or before such date of determination.

                                      -34-

<PAGE>

          SUBORDINATE CERTIFICATES: The Class B-1, Class B-2, Class B-3, Class
B-4, Class B-5 and Class B-6 Certificates.

          SUBORDINATE CERTIFICATE WRITEDOWN AMOUNT: As to any Distribution Date,
the amount by which (a) the sum of the Current Principal Amounts of all the
Certificates (after giving effect to the distribution of principal and the
allocation of applicable Realized Losses in reduction of the Current Principal
Amounts of such Certificates on such Distribution Date) exceeds (b) the
aggregate Scheduled Principal Balances of the Mortgage Loans on the Due Date
related to such Distribution Date.

          SUBORDINATE OPTIMAL PRINCIPAL AMOUNT: As to any Distribution Date, an
amount equal to the sum, without duplication, of the following (but in no event
greater than the aggregate Current Principal Amount of the Subordinate
Certificates immediately prior to such Distribution Date):

                   (i) the applicable Subordinate Percentage of the principal
          portion of all Scheduled Payments due on each Outstanding Mortgage
          Loan on the related Due Date as specified in the amortization schedule
          at the time applicable thereto (after adjustment for previous
          Principal Prepayments but before any adjustment to such amortization
          schedule by reason of any bankruptcy or similar proceeding or any
          moratorium or similar waiver or grace period);

                   (ii) the applicable Subordinate Prepayment Percentage of each
          Principal Payment in part during the related Prepayment Period with
          respect to each Mortgage Loan and the applicable Subordinate
          Prepayment Percentage of the Scheduled Principal Balance of each
          Mortgage Loan that was the subject of a Principal Prepayment in full
          during the related Prepayment Period;

                   (iii) the excess, if any, of (A) all Net Liquidation Proceeds
          with respect to the Mortgage Loans allocable to principal received
          during the related Prepayment Period over (B) the sum of the amounts
          distributable pursuant to clause (iii) of the definitions of Group 1
          Senior Optimal Principal Amount, Group 2 Senior Optimal Principal
          Amount, Group 3 Senior Optimal Principal Amount, Group 4 Senior
          Optimal Principal Amount and Group 5 Senior Optimal Principal Amount
          on such Distribution Date;

                   (iv) the applicable Subordinate Prepayment Percentage of the
          sum of (a) the Scheduled Principal Balance of each Mortgage Loan or
          related REO Property which was purchased with respect to such
          Distribution Date and (b) the difference, if any, between the
          Scheduled Principal Balance of a Mortgage Loan that has been replaced
          with a Substitute Mortgage Loan on such Distribution Date over the
          Scheduled Principal Balance of such Substitute Mortgage Loan; and

                   (v) on the Distribution Date on which the Current Principal
          Amounts of the Group 1 Senior Certificates, Group 2 Senior
          Certificates, Group 3 Senior Certificates, Group

                                      -35-

<PAGE>

          4 Senior Certificates or Group 5 Senior Certificates have all been
          reduced to zero, 100% of any Group 1 Senior Optimal Principal Amount,
          Group 2 Senior Optimal Principal Amount, Group 3 Senior Optimal
          Principal Amount, Group 4 Senior Optimal Principal Amount or Group 5
          Senior Optimal Principal Amount, respectively.

After the aggregate Current Principal Amount of the Subordinate Certificates has
been reduced to zero, the Subordinate Optimal Principal Amount shall be zero.

          SUBORDINATE PERCENTAGE: The Group 1, Group 2, Group 3, Group 4 or
Group 5 Subordinate Percentage, with respect to a Group 1, Group 2, Group 3,
Group 4 or Group 5 Mortgage Loan, respectively.

          SUBORDINATE PREPAYMENT PERCENTAGE: The Group 1, Group 2, Group 3,
Group 4 or Group 5 Subordinate Prepayment Percentage, with respect to a Group 1,
Group 2, Group 3, Group 4 or Group 5 Mortgage Loan, respectively.

          SUBSTITUTE MORTGAGE LOAN: A mortgage loan tendered to the Trustee
pursuant to the related Servicing Agreement, the Mortgage Loan Purchase
Agreement or Section 2.04 of this Agreement, as applicable, in each case, (i)
which has an Outstanding Principal Balance not greater nor materially less than
the Mortgage Loan for which it is to be substituted; (ii) which has a Mortgage
Interest Rate and Net Rate not less than, and not materially greater than, such
Mortgage Loan; (iii) which has a maturity date not materially earlier or later
than such Mortgage Loan and not later than the latest maturity date of any
Mortgage Loan; (iv) which is of the same property type and occupancy type as
such Mortgage Loan; (v) which has a Loan-to-Value Ratio not greater than the
Loan-to-Value Ratio of such Mortgage Loan; (vi) which is current in payment of
principal and interest as of the date of substitution; (vii) as to which the
payment terms do not vary in any material respect from the payment terms of the
Mortgage Loan for which it is to be substituted and (viii) which has a Gross
Margin, Periodic Rate Cap and Maximum Lifetime Mortgage Rate no less than those
of such Mortgage Loan, has the same Index and interval between Interest
Adjustment Dates as such Mortgage Loan, and a Minimum Lifetime Mortgage Rate no
lower than that of such Mortgage Loan.

          SUPPLEMENTAL PMI INSURANCE PREMIUM: With respect to each Distribution
Date, the premium for the Supplemental PMI Policy, equal to one month's interest
at the Supplemental PMI Insurance Premium Rate on the Scheduled Principal
Balance (as of the beginning of the related Due Period) of the Mortgage Loans
which were covered by the Supplemental PMI Policy as of the Cut-off Date,
payable by the Trustee on each Distribution Date from amounts on deposit in the
Distribution Account in accordance with Section 4.04 of this Agreement.

          SUPPLEMENTAL PMI INSURANCE PREMIUM RATE: With respect to any Mortgage
Loan covered by the Supplemental PMI Policy, the rate at which the premium on
the Supplemental PMI Policy accrues, which is 0.14% per annum for each covered
Mortgage Loan, in each case as indicated on the Mortgage Loan Schedule.

                                      -36-

<PAGE>

          SUPPLEMENTAL PMI INSURER: Triad Guaranty Insurance Corporation, or a
successor appointed in accordance with Section 9.13(b) of this Agreement.

          SUPPLEMENTAL PMI POLICY: The supplemental primary mortgage insurance
policy of the Supplemental PMI Insurer attached hereto as Exhibit K, or any
successor Supplemental PMI Policy.

          SURETY BOND: The limited purpose Surety Bond (Policy No. AB0039BE),
dated February 28, 1996 in respect to Mortgage Loans originated by MLCC, issued
by Ambac Assurance Corporation (f/k/a Ambac Indemnity Corporation) for the
benefit of certain beneficiaries, including the Trustee for the benefit of the
Certificateholders, but only to the extent that such Surety Bond covers any
Additional Collateral Mortgage Loans.

          TAX ADMINISTRATION AND TAX MATTERS PERSON: The Securities
Administrator or any successor thereto or assignee thereof shall serve as tax
administrator hereunder and as agent for the Tax Matters Person. The Holder of
each Class of Residual Certificates shall be the Tax Matters Person for the
related REMIC, as more particularly set forth in Section 9.12 hereof.

          TRUST FUND or TRUST: The corpus of the trust created by this
Agreement, consisting of the Mortgage Loans and the other assets described in
Section 2.01(a).

          TRUSTEE: LaSalle Bank National Association, or its successor in
interest, or any successor trustee appointed as herein provided.

          UNCERTIFICATED PRINCIPAL BALANCE: With respect to any REMIC I Regular
Interest, the balance thereof as indicated in Section 5.01, as reduced by
amounts allocated thereto in reduction thereof in accordance with Section 5.01.

          UNDERLYING SELLER: With respect to each Mortgage Loan, Bank of
America, MLCC, First Chicago, GMAC, Washington Mutual Home Loans, Inc. or WFHM,
as indicated on the Mortgage Loan Schedule.

          UNINSURED CAUSE: Any cause of damage to a Mortgaged Property or
related REO Property such that the complete restoration of such Mortgaged
Property or related REO Property is not fully reimbursable by the hazard
insurance policies required to be maintained pursuant the related Servicing
Agreement, without regard to whether or not such policy is maintained.

          UNITED STATES PERSON: A citizen or resident of the United States, a
corporation or partnership (including an entity treated as a corporation or
partnership for federal income tax purposes) created or organized in, or under
the laws of, the United States or any state thereof or the District of Columbia
(except, in the case of a partnership, to the extent provided in regulations),
provided that, for purposes solely of the Class R Certificates, no partnership
or other entity treated as a partnership for United States federal income tax
purposes shall be treated as a United States Person unless all persons that own
an interest in such partnership either directly or through any entity that is
not a

                                      -37-

<PAGE>

corporation for United States federal income tax purposes are United States
Persons, or an estate whose income is subject to United States federal income
tax regardless of its source, or a trust if a court within the United States is
able to exercise primary supervision over the administration of the trust and
one or more such United States Persons have the authority to control all
substantial decisions of the trust. To the extent prescribed in regulations by
the Secretary of the Treasury, which have not yet been issued, a trust which was
in existence on August 20, 1996 (other than a trust treated as owned by the
grantor under subpart E of part I of subchapter J of chapter 1 of the Code), and
which was treated as a United States person on August 20, 1996 may elect to
continue to be treated as a United States person notwithstanding the previous
sentence.

          WASHINGTON MUTUAL: Washington Mutual Bank, FA.

          WASHINGTON MUTUAL SERVICING AGREEMENT: The Servicing Agreement, dated
April 1, 2001, between Washington Mutual Home Loans, Inc. and EMC, attached
hereto as Exhibit H-5.

          WFHM: Wells Fargo Home Mortgage, Inc.

          WFHM SERVICING AGREEMENT: The Seller's Warranties and Servicing
Agreement, dated as of April 1, 2001, between EMC, as Purchaser and WFHM, as
Company, attached hereto as Exhibit H-6.

                                      -38-

<PAGE>

                                   ARTICLE II

                          Conveyance of Mortgage Loans;
                        Original Issuance of Certificates

          Section 2.01. CONVEYANCE OF MORTGAGE LOANS TO TRUSTEE. (a) The Seller
concurrently with the execution and delivery of this Agreement, sells, transfers
and assigns to the Trust without recourse all its right, title and interest in
and to (i) the Mortgage Loans identified in the Mortgage Loan Schedule,
including all interest and principal due with respect to the Mortgage Loans
after the Cut-off Date, but excluding any payments of principal and interest due
on or prior to the Cut-off Date; (ii) such assets as shall from time to time be
credited or are required by the terms of this Agreement to be credited to the
Master Servicer Collection Account, (iii) such assets relating to the Mortgage
Loans as from time to time may be held by the Servicers in Protected Accounts,
the Master Servicer in the Master Servicer Collection Account and the Trustee in
the Distribution Account for the benefit of the Trustee on behalf of the
Certificateholders, (iv) any REO Property, (v) the Required Insurance Policies
and any amounts paid or payable by the insurer under any Insurance Policy (to
the extent the mortgagee has a claim thereto), (vi) the Mortgage Loan Purchase
Agreement to the extent provided in Subsection 2.03(a), (vii) the rights with
respect to the Servicing Agreements as assigned to the Trustee on behalf of the
Certificateholders by the Assignment Agreements, (viii) the Supplemental PMI
Policy and (ix) any proceeds of the foregoing. Although it is the intent of the
parties to this Agreement that the conveyance of the Seller's right, title and
interest in and to the Mortgage Loans and other assets in the Trust Fund
pursuant to this Agreement shall constitute a purchase and sale and not a loan,
in the event that such conveyance is deemed to be a loan, it is the intent of
the parties to this Agreement that the Seller shall be deemed to have granted to
the Trustee a first priority perfected security interest in all of the Seller's
right, title and interest in, to and under the Mortgage Loans and other assets
in the Trust Fund, and that this Agreement shall constitute a security agreement
under applicable law.

          (b) In connection with the above transfer and assignment, the Seller
hereby deposits with the Trustee or the Custodian, as its agent, with respect to
each Mortgage Loan, (i) the original Mortgage Note, endorsed without recourse to
the order of the Trustee and showing an unbroken chain of endorsements from the
original payee thereof to the Person endorsing it to the Trustee, or lost note
affidavit, (ii) the original Security Instrument, which shall have been
recorded, with evidence of such recording indicated thereon, (iii) a certified
copy of the assignment (which may be in the form of a blanket assignment if
permitted in the jurisdiction in which the Mortgaged Property is located) to
"LaSalle Bank National Association, as Trustee", with evidence of recording with
respect to each Mortgage Loan in the name of the Trustee thereon (or if clause
(x) in the proviso below applies or for Mortgage Loans with respect to which the
related Mortgaged Property is located in a state other than Maryland, Florida,
Mississippi, South Carolina or Tennessee or an Opinion of Counsel has been
provided as set forth in this Section 2.01(b), shall be in recordable form),
(iv) all intervening assignments of the Security Instrument, if applicable and
only to the extent available to the Seller with evidence of recording thereon,
(v) the original or a copy of the policy or certificate of primary mortgage
guaranty insurance, to the extent available, if any, (vi) the original policy of
title

                                      -39-

<PAGE>

insurance or mortgagee's certificate of title insurance or commitment or binder
for title insurance and (vii) originals of all modification agreements, if
applicable and available;

PROVIDED, HOWEVER, that in lieu of the foregoing, the Seller may deliver the
following documents, under the circumstances set forth below: (x) in lieu of the
original Security Instrument, assignments to the Trustee or intervening
assignments thereof which have been delivered, are being delivered or will, upon
receipt of recording information relating to the Security Instrument required to
be included thereon, be delivered to recording offices for recording and have
not been returned to the Seller in time to permit their delivery as specified
above, the Seller may deliver a true copy thereof with a certification by the
Seller, on the face of such copy, substantially as follows: "Certified to be a
true and correct copy of the original, which has been transmitted for
recording"; (y) in lieu of the Security Instrument, assignment to the Trustee or
intervening assignments thereof, if the applicable jurisdiction retains the
originals of such documents (as evidenced by a certification from the Seller to
such effect) the Seller may deliver photocopies of such documents containing an
original certification by the judicial or other governmental authority of the
jurisdiction where such documents were recorded; and (z) the Seller shall not be
required to deliver intervening assignments or Mortgage Note endorsements
between the related Underlying Seller and EMC Mortgage Corporation, between EMC
Mortgage Corporation and the Depositor, and between the Depositor and the
Trustee; and PROVIDED, FURTHER, HOWEVER, that in the case of Mortgage Loans
which have been prepaid in full after the Cut-off Date and prior to the Closing
Date, the Seller, in lieu of delivering the above documents, may deliver to the
Trustee or the Custodian, as its agent, a certification to such effect and shall
deposit all amounts paid in respect of such Mortgage Loans in the Master
Servicer Collection Account on the Closing Date. The Seller shall deliver such
original documents (including any original documents as to which certified
copies had previously been delivered) to the Trustee or the Custodian, as its
agent, promptly after they are received. The Seller shall cause, at its expense,
the assignment of the Security Instrument to the Trustee to be recorded not
later than 180 days after the Closing Date, unless such recordation is not
required by the Rating Agencies or an Opinion of Counsel has been provided as
set forth below in this Section 2.01(b). The Seller need not cause to be
recorded any assignment in any jurisdiction under any state other than Maryland,
Florida, Mississippi, South Carolina and Tennessee; provided, however, that each
assignment shall be submitted for recording by the Seller in the manner
described above, at no expense to the Trust or the Trustee or the Custodian, as
its agent, upon the earliest to occur of : (i) reasonable direction by the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 25% of the Trust, (ii) the occurrence of an Event of Default,
(iii) the occurrence of a bankruptcy, insolvency or foreclosure relating to the
Seller and (iv) the occurrence of a servicing transfer as described in Section
8.02 hereof. Notwithstanding the foregoing, if the Seller fails to pay the cost
of recording the assignments, such expense will be paid by the Trustee and the
Trustee shall be reimbursed for such expenses by the Trust in accordance with
Section 9.05.

          Section 2.02. ACCEPTANCE OF MORTGAGE LOANS BY TRUSTEE. (a) The Trustee
acknowledges the sale, transfer and assignment of the Trust to it by the Seller
and receipt of, subject to further review and the exceptions which may be noted
pursuant to the procedures described below, and declares that it holds, the
documents (or certified copies thereof) delivered to it pursuant to Section

                                      -40-

<PAGE>

2.01, and declares that it will continue to hold those documents and any
amendments, replacements or supplements thereto and all other assets of the
Trust Fund delivered to it as Trustee in trust for the use and benefit of all
present and future Holders of the Certificates. On the Closing Date, the
Custodian, with respect to the Mortgage Loans, shall acknowledge with respect to
each Mortgage Loan by an Initial Certification substantially in the form of
Exhibit One to the Custodial Agreement receipt of the Mortgage File, but without
review of such Mortgage File, except to the extent necessary to confirm that
such Mortgage File contains the related Mortgage Note or lost note affidavit. No
later than 90 days after the Closing Date (or, with respect to any Substitute
Mortgage Loan, within five Business Days after the receipt by the Trustee or
Custodian thereof), the Trustee agrees, for the benefit of the
Certificateholders, to review or cause to be reviewed by the Custodian on its
behalf (under the Custodial Agreement), each Mortgage File delivered to it and
to execute and deliver, or cause to be executed and delivered, to the Seller and
the Master Servicer an Interim Certification substantially in the form annexed
as Exhibit Two to the Custodial Agreement. In conducting such review, the
Trustee or Custodian will ascertain whether all required documents have been
executed and received, and based on the Mortgage Loan Schedule, whether those
documents relate, determined on the basis of the Mortgagor name, original
principal balance and loan number, to the Mortgage Loans it has received, as
identified in the Mortgage Loan Schedule. In performing any such review, the
Trustee or the Custodian, as its agent, may conclusively rely on the purported
due execution and genuineness of any such document and on the purported
genuineness of any signature thereon. If the Trustee or the Custodian, as its
agent, finds any document constituting part of the Mortgage File not to have
been executed or received, or to be unrelated to the Mortgage Loans identified
in Exhibit B or to appear to be defective on its face, the Trustee or the
Custodian, as its agent, shall promptly notify the Mortgage Loan Seller or the
related Originator, as applicable. In accordance with the Mortgage Loan Purchase
Agreement, the related Assignment Agreement or the related Servicing Agreement,
the Mortgage Loan Seller or the related Originator shall correct or cure any
such defect within 90 days from the date of notice from the Trustee or the
Custodian, as its agent, of the defect and if the Mortgage Loan Seller or the
related Originator fails to correct or cure the defect within such period, and
such defect materially and adversely affects the interests of the
Certificateholders in the related Mortgage Loan, the Trustee or the Custodian,
as its agent, shall enforce the Mortgage Loan Seller or the related Originator's
obligation pursuant to the Mortgage Loan Purchase Agreement, the related
Assignment Agreement or the related Servicing Agreement, as applicable, within
90 days from the Trustee's or the Custodian's notification, to purchase such
Mortgage Loan at the Repurchase Price; provided that, if such defect would cause
the Mortgage Loan to be other than a "qualified mortgage" as defined in Section
860G(a)(3) of the Code, any such cure or repurchase must occur within 90 days
from the date such breach was discovered; PROVIDED, HOWEVER, that if such defect
relates solely to the inability of the Mortgage Loan Seller or the related
Originator to deliver the original Security Instrument or intervening
assignments thereof, or a certified copy because the originals of such
documents, or a certified copy have not been returned by the applicable
jurisdiction, the Mortgage Loan Seller or the related Originator shall not be
required to purchase such Mortgage Loan if the Mortgage Loan Seller or the
related Originator, as applicable, delivers such original documents or certified
copy promptly upon receipt, but in no event later than 360 days after the
Closing Date. The foregoing repurchase obligation shall not apply in the event
that the Mortgage Loan Seller or the related Originator cannot deliver such
original or copy

                                      -41-

<PAGE>

of any document submitted for recording to the appropriate recording office in
the applicable jurisdiction because such document has not been returned by such
office; provided that the Mortgage Loan Seller or the related Originator, as
applicable, shall instead deliver a recording receipt of such recording office
or, if such receipt is not available, a certificate confirming that such
documents have been accepted for recording, and delivery to the Trustee or the
Custodian, as its agent, shall be effected by the Mortgage Loan Seller or the
related Originator, as the case may be, within thirty days of its receipt of the
original recorded document.

          (b) No later than 180 days after the Closing Date, the Trustee or the
Custodian, as its agent, will review, for the benefit of the Certificateholders,
the Mortgage Files delivered to it and will execute and deliver or cause to be
executed and delivered to the Seller a Final Certification substantially in the
form annexed as Exhibit Three to the Custodial Agreement. In conducting such
review, the Trustee or the Custodian, as its agent, will ascertain whether an
original of each document required to be recorded has been returned from the
recording office with evidence of recording thereon or a certified copy has been
obtained from the recording office. If the Trustee or the Custodian, as its
agent, finds any document constituting part of the Mortgage File to not have
been received, or to be unrelated, determined on the basis of the Mortgagor
name, original principal balance and loan number, to the Mortgage Loans
identified in Exhibit B or to appear defective on its face, the Trustee or the
Custodian, as its agent, shall promptly notify the Mortgage Loan Seller
(PROVIDED, HOWEVER, that with respect to those documents described in subsection
(b)(iv), (b)(v) and (b)(vi) of Section 2.01, the Trustee's obligations shall
extend only to the documents actually delivered pursuant to such subsections).
In accordance with the Mortgage Loan Purchase Agreement, the related Servicing
Agreement or the related Assignment Agreement, the Mortgage Loan Seller or the
related Originator shall correct or cure any such defect or EMC shall deliver to
the Trustee an Opinion of Counsel to the effect that such defect does not
materially or adversely affect the interests of Certificateholders in such
Mortgage Loan within 90 days from the date of notice from the Trustee or the
Custodian, as its agent, of the defect and if the Mortgage Loan Seller or the
related Originator, as applicable, is unable to cure such defect within such
period, and if such defect materially and adversely affects the interests of the
Certificateholders in the related Mortgage Loan, the Trustee shall enforce the
Mortgage Loan Seller or the related Originator's obligation under the Mortgage
Loan Purchase Agreement, the related Servicing Agreement or the related
Assignment Agreement to purchase such Mortgage Loan at the Repurchase Price,
PROVIDED, HOWEVER, that if such defect relates solely to the inability of the
Mortgage Loan Seller or the related Originator to deliver the original Security
Instrument or intervening assignments thereof, or a certified copy, because the
originals of such documents or a certified copy, have not been returned by the
applicable jurisdiction, the Mortgage Loan Seller or the related Originator, as
applicable, shall not be required to purchase such Mortgage Loan, if the
Mortgage Loan Seller or the related as the case may be, delivers such original
documents or certified copy promptly upon receipt, but in no event later than
360 days after the Closing Date.

          (c) In the event that a Mortgage Loan is purchased by the Mortgage
Loan Seller or the related Originator in accordance with Subsections 2.02(a) or
(b) above, the Mortgage Loan Seller or the related Originator (upon direction
from the Trustee) shall remit to the Master Servicer the

                                      -42-

<PAGE>

Repurchase Price for deposit in the Master Servicer Collection Account and the
Mortgage Loan Seller or the related Originator shall provide to the Master
Servicer written notification detailing the components of the Repurchase Price.
Upon deposit of the Repurchase Price in the Master Servicer Collection Account,
the Seller shall notify the Trustee and the Trustee or the Custodian, as its
agent, (upon receipt of a Request for Release in the form of Exhibit D attached
hereto with respect to such Mortgage Loan) shall release to the Mortgage Loan
Seller or the related Originator, as the case may be, the related Mortgage File
and the Trustee shall execute and deliver all instruments of transfer or
assignment, without recourse, furnished to it by the Mortgage Loan Seller or the
related Originator as are necessary to vest in the Mortgage Loan Seller or the
related Originator, as applicable, title to and rights under the Mortgage Loan.
Such purchase shall be deemed to have occurred on the date on which the
Repurchase Price in available funds is received by the Trustee. The Master
Servicer shall amend the Mortgage Loan Schedule, which was previously delivered
to it by Seller in a form agreed to between the Seller and the Trustee, to
reflect such repurchase and shall promptly notify the Master Servicer and the
Rating Agencies of such amendment. The obligation of the Mortgage Loan Seller or
the related Originator to repurchase any Mortgage Loan as to which such a defect
in a constituent document exists shall be the sole remedy respecting such defect
available to the Certificateholders or to the Trustee on their behalf.

          Section 2.03. ASSIGNMENT OF INTEREST IN THE MORTGAGE LOAN PURCHASE
AGREEMENT. (a) The Seller hereby assigns to the Trustee, on behalf of the
Certificateholders, all of its right, title and interest in the Mortgage Loan
Purchase Agreement, including but not limited to the Seller's rights and
obligations pursuant to the Servicing Agreements. The obligations of the
Mortgage Loan Seller to substitute or repurchase, as applicable, a Mortgage Loan
shall be the Trustee's and the Certificateholders' sole remedy for any breach
thereof. At the request of the Trustee, the Seller shall take such actions as
may be necessary to enforce the above right, title and interest on behalf of the
Trustee and the Certificateholders or shall execute such further documents as
the Trustee may reasonably require in order to enable the Trustee to carry out
such enforcement.

          (b) If the Seller, the Securities Administrator or the Trustee
discovers a breach of any of the representations and warranties set forth in the
Mortgage Loan Purchase Agreement, which breach materially and adversely affects
the value of the interests of Certificateholders or the Trustee in the related
Mortgage Loan, the party discovering the breach shall give prompt written notice
of the breach to the other parties. The Mortgage Loan Seller, within 90 days of
its discovery or receipt of notice that such breach has occurred (whichever
occurs earlier), shall cure the breach in all material respects or, subject to
the Mortgage Loan Purchase Agreement or Section 2.04 of this Agreement, as
applicable, shall purchase the Mortgage Loan or any property acquired with
respect thereto from the Trustee; PROVIDED, HOWEVER, that if there is a breach
of any representation set forth in the Mortgage Loan Purchase Agreement or
Section 2.04 of this Agreement, as applicable, and the Mortgage Loan or the
related property acquired with respect thereto has been sold, then the Mortgage
Loan Seller shall pay, in lieu of the Repurchase Price, any excess of the
Repurchase Price over the Net Liquidation Proceeds received upon such sale. (If
the Net Liquidation Proceeds exceed the Repurchase Price, any excess shall be
paid to the Mortgage Loan Seller to the extent not required by law to be paid to
the borrower.) Any such purchase by the Mortgage Loan Seller shall be made

                                      -43-

<PAGE>

by providing an amount equal to the Repurchase Price to the Master Servicer for
deposit in the Master Servicer Collection Account and written notification
detailing the components of such Repurchase Price. The Seller shall notify the
Trustee and submit to the Trustee or the Custodian, as its agent, a Request for
Release in the form of Exhibit D attached hereto, and the Trustee shall release,
or the Trustee shall cause the Custodian to release, to the Mortgage Loan Seller
the related Mortgage File and the Trustee shall execute and deliver all
instruments of transfer or assignment furnished to it by the Mortgage Loan
Seller, without recourse, as are necessary to vest in the Mortgage Loan Seller
title to and rights under the Mortgage Loan or any property acquired with
respect thereto. Any Excess Repurchase Proceeds shall be retained by EMC. Such
purchase shall be deemed to have occurred on the date on which the Repurchase
Price in available funds is received by the Trustee. The Master Servicer shall
amend the Mortgage Loan Schedule to reflect such repurchase and shall promptly
notify the Trustee and the Rating Agencies of such amendment. Enforcement of the
obligation of the Mortgage Loan Seller to purchase (or substitute a Substitute
Mortgage Loan for) any Mortgage Loan or any property acquired with respect
thereto (or pay the Repurchase Price as set forth in the above proviso) as to
which a breach has occurred and is continuing shall constitute the sole remedy
respecting such breach available to the Certificateholders or the Trustee on
their behalf.

          Section 2.04. SUBSTITUTION OF MORTGAGE LOANS. Notwithstanding anything
to the contrary in this Agreement, in lieu of purchasing a Mortgage Loan
pursuant to the Mortgage Loan Purchase Agreement or Sections 2.02 or 2.03 of
this Agreement, the Mortgage Loan Seller may, no later than the date by which
such purchase by the Mortgage Loan Seller would otherwise be required, tender to
the Trustee a Substitute Mortgage Loan accompanied by a certificate of an
authorized officer of the Mortgage Loan Seller that such Substitute Mortgage
Loan conforms to the requirements set forth in the definition of "Substitute
Mortgage Loan" in the Mortgage Loan Purchase Agreement or this Agreement, as
applicable; PROVIDED, HOWEVER, that substitution pursuant to the Mortgage Loan
Purchase Agreement or Section 2.04 of this Agreement, as applicable, in lieu of
purchase shall not be permitted after the termination of the two-year period
beginning on the Startup Day. The Trustee or the Custodian, as its agent, shall
examine the Mortgage File for any Substitute Mortgage Loan in the manner set
forth in Section 2.02(a) and the Trustee or the Custodian, as its agent, shall
notify the Mortgage Loan Seller, in writing, within five Business Days after
receipt, whether or not the documents relating to the Substitute Mortgage Loan
satisfy the requirements of the fourth sentence of Subsection 2.02(a). Within
two Business Days after such notification, the Mortgage Loan Seller shall
provide to the Trustee for deposit in the Distribution Account the amount, if
any, by which the Outstanding Principal Balance as of the next preceding Due
Date of the Mortgage Loan for which substitution is being made, after giving
effect to Scheduled Principal due on such date, exceeds the Outstanding
Principal Balance as of such date of the Substitute Mortgage Loan, after giving
effect to Scheduled Principal due on such date, which amount shall be treated
for the purposes of this Agreement as if it were the payment by the Mortgage
Loan Seller of the Repurchase Price for the purchase of a Mortgage Loan by the
Mortgage Loan Seller. After such notification to the Mortgage Loan Seller and,
if any such excess exists, upon receipt of such deposit, the Trustee shall
accept such Substitute Mortgage Loan which shall thereafter be deemed to be a
Mortgage Loan hereunder. In the event of such a substitution, accrued interest
on the Substitute Mortgage Loan for the month in which

                                      -44-

<PAGE>

the substitution occurs and any Principal Prepayments made thereon during such
month shall be the property of the Trust Fund and accrued interest for such
month on the Mortgage Loan for which the substitution is made and any Principal
Prepayments made thereon during such month shall be the property of the Mortgage
Loan Seller. The Scheduled Principal on a Substitute Mortgage Loan due on the
Due Date in the month of substitution shall be the property of the Mortgage Loan
Seller and the Scheduled Principal on the Mortgage Loan for which the
substitution is made due on such Due Date shall be the property of the Trust
Fund. Upon acceptance of the Substitute Mortgage Loan (and delivery to the
Trustee or Custodian of a Request for release for such Mortgage Loan), the
Trustee shall release to the Mortgage Loan Seller the related Mortgage File
related to any Mortgage Loan released pursuant to the Mortgage Loan Purchase
Agreement or Section 2.04 of this Agreement, as applicable, and shall execute
and deliver all instruments of transfer or assignment, without recourse, in form
as provided to it as are necessary to vest in the Mortgage Loan Seller title to
and rights under any Mortgage Loan released pursuant to the Mortgage Loan
Purchase Agreement or Section 2.04 of this Agreement, as applicable. The
Mortgage Loan Seller shall deliver the documents related to the Substitute
Mortgage Loan in accordance with the provisions of the Mortgage Loan Purchase
Agreement or Subsections 2.01(b) and 2.02(b) of this Agreement, as applicable,
with the date of acceptance of the Substitute Mortgage Loan deemed to be the
Closing Date for purposes of the time periods set forth in those Subsections.
The representations and warranties set forth in the Mortgage Loan Purchase
Agreement shall be deemed to have been made by the Mortgage Loan Seller with
respect to each Substitute Mortgage Loan as of the date of acceptance of such
Mortgage Loan by the Trustee. The Master Servicer shall amend the Mortgage Loan
Schedule to reflect such substitution and shall provide a copy of such amended
Mortgage Loan Schedule to the Trustee and the Rating Agencies.

          Section 2.05. ISSUANCE OF CERTIFICATES. The Trustee acknowledges the
assignment to it of the Mortgage Loans and the other assets comprising the Trust
Fund and, concurrently therewith, has signed, and countersigned and delivered to
the Seller, in exchange therefor, Certificates in such authorized denominations
representing such Fractional Undivided Interests as the Seller has requested.
The Trustee agrees that it will hold the Mortgage Loans and such other assets as
may from time to time be delivered to it segregated on the books of the Trustee
in trust for the benefit of the Certificateholders.

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

                                      -45-

<PAGE>

          Section 2.06. REPRESENTATIONS AND WARRANTIES CONCERNING THE SELLER.
The Seller hereby represents and warrants to the Trustee, the Master Servicer
and the Securities Administrator as follows:

                   (i) the Seller (a) is a corporation duly organized, validly
          existing and in good standing under the laws of the State of Delaware
          and (b) is qualified and in good standing as a foreign corporation to
          do business in each jurisdiction where such qualification is
          necessary, except where the failure so to qualify would not reasonably
          be expected to have a material adverse effect on the Seller's business
          as presently conducted or on the Purchaser's ability to enter into
          this Agreement and to consummate the transactions contemplated hereby;

                   (ii) the Seller has full corporate power to own its property,
          to carry on its business as presently conducted and to enter into and
          perform its obligations under this Agreement;

                   (iii) the execution and delivery by the Seller of this
          Agreement have been duly authorized by all necessary corporate action
          on the part of the Seller; and neither the execution and delivery of
          this Agreement, nor the consummation of the transactions herein
          contemplated, nor compliance with the provisions hereof, will conflict
          with or result in a breach of, or constitute a default under, any of
          the provisions of any law, governmental rule, regulation, judgment,
          decree or order binding on the Seller or its properties or the
          articles of incorporation or by-laws of the Seller, except those
          conflicts, breaches or defaults which would not reasonably be expected
          to have a material adverse effect on the Seller's ability to enter
          into this Agreement and to consummate the transactions contemplated
          hereby;

                   (iv) the execution, delivery and performance by the Seller of
          this Agreement and the consummation of the transactions contemplated
          hereby do not require the consent or approval of, the giving of notice
          to, the registration with, or the taking of any other action in
          respect of, any state, federal or other governmental authority or
          agency, except those consents, approvals, notices, registrations or
          other actions as have already been obtained, given or made;

                   (v) this Agreement has been duly executed and delivered by
          the Seller and, assuming due authorization, execution and delivery by
          the other parties hereto, constitutes a valid and binding obligation
          of the Seller enforceable against it in accordance with its terms
          (subject to applicable bankruptcy and insolvency laws and other
          similar laws affecting the enforcement of the rights of creditors
          generally);

                   (vi) there are no actions, suits or proceedings pending or,
          to the knowledge of the Seller, threatened against the Seller, before
          or by any court, administrative agency, arbitrator or governmental
          body (i) with respect to any of the transactions contemplated by this
          Agreement or (ii) with respect to any other matter which in the
          judgment of the Seller will be determined adversely to the Seller and
          will if determined adversely to the Seller materially

                                      -46-

<PAGE>

          and adversely affect the Seller's ability to enter into this Agreement
          or perform its obligations under this Agreement; and the Seller is not
          in default with respect to any order of any court, administrative
          agency, arbitrator or governmental body so as to materially and
          adversely affect the transactions contemplated by this Agreement; and

                   (vii) immediately prior to the transfer and assignment to the
          Trustee, each Mortgage Note and each Mortgage were not subject to an
          assignment or pledge, and the Seller had good and marketable title to
          and was the sole owner thereof and had full right to transfer and sell
          such Mortgage Loan to the Trustee free and clear of any encumbrance,
          equity, lien, pledge, charge, claim or security interest.

                                      -47-

<PAGE>

                                   ARTICLE III

                 Administration and Servicing of Mortgage Loans

          Section 3.01. MASTER SERVICER. The Master Servicer shall supervise,
monitor and oversee the obligation of the Servicers to service and administer
their respective Mortgage Loans in accordance with the terms of the applicable
Servicing Agreement and shall have full power and authority to do any and all
things which it may deem necessary or desirable in connection with such master
servicing and administration. In performing its obligations hereunder, the
Master Servicer shall act in a manner consistent with Accepted Master Servicing
Practices. Furthermore, the Master Servicer shall oversee and consult with each
Servicer as necessary from time-to-time to carry out the Master Servicer's
obligations hereunder, shall receive, review and evaluate all reports,
information and other data provided to the Master Servicer by each Servicer and
shall cause each Servicer to perform and observe the covenants, obligations and
conditions to be performed or observed by such Servicer under the applicable
Servicing Agreement. The Master Servicer shall independently and separately
monitor each Servicer's servicing activities with respect to each related
Mortgage Loan, reconcile the results of such monitoring with such information
provided in the previous sentence on a monthly basis and coordinate corrective
adjustments to the Servicers' and Master Servicer's records, and based on such
reconciled and corrected information, prepare the statements specified in
Section 6.04 and any other information and statements required hereunder. The
Master Servicer shall reconcile the results of its Mortgage Loan monitoring with
the actual remittances of the Servicers to the Protected Account pursuant to the
applicable Servicing Agreements.

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

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

          The Trustee shall execute and deliver to the related Servicer and the
Master Servicer any court pleadings, requests for trustee's sale or other
documents necessary or desirable to (i) the foreclosure or trustee's sale with
respect to a Mortgaged Property; (ii) any legal action brought to obtain
judgment against any Mortgagor on the Mortgage Note or Security Instrument;
(iii) obtain a

                                      -48-

<PAGE>

deficiency judgment against the Mortgagor; or (iv) enforce any other rights or
remedies provided by the Mortgage Note or Security Instrument or otherwise
available at law or equity.

          Notwithstanding the foregoing or any other provision of this Agreement
or the Cendant/MLCC Servicing Agreement to the contrary, the Master Servicer
shall have no duty or obligation to supervise, monitor or oversee the activities
of MLCC or to enforce the obligation of MLCC under the Cendant/MLCC Servicing
Agreement with respect to any Additional Collateral or any Surety Bond,
including, without limitation, the collection of any amounts owing to the Trust
in respect thereof (unless and until the Master Servicer shall have assumed the
obligations of MLCC as successor Servicer under such Servicing Agreement
pursuant to Section 3.02 hereof, in which case, as successor Servicer, it shall
be bound to service and administer the Additional Collateral and the Surety Bond
in accordance with the provisions of such Servicing Agreement).

          Section 3.02. REMIC-RELATED COVENANTS. For as long as the REMIC shall
exist, the Trustee and the Securities Administrator shall act in accordance
herewith to assure continuing treatment of such REMIC as a REMIC, and the
Trustee and the Securities Administrator shall comply with any directions of the
Seller, the related Servicer or the Master Servicer to assure such continuing
treatment. In particular, the Trustee shall not (a) sell or permit the sale of
all or any portion of the Mortgage Loans or of any investment of deposits in an
Account unless such sale is as a result of a repurchase of the Mortgage Loans
pursuant to this Agreement or the Trustee has received a REMIC Opinion prepared
at the expense of the Trust Fund; and (b) other than with respect to a
substitution pursuant to the Mortgage Loan Purchase Agreement or Section 2.04 of
this Agreement, as applicable, accept any contribution to any REMIC after the
Startup Day without receipt of a REMIC Opinion.

          Section 3.03. MONITORING OF SERVICERS. (a) The Master Servicer shall
be responsible for reporting to the Trustee and the Seller the compliance by
each Servicer with its duties under the related Servicing Agreement. In the
review of each Servicer's activities, the Master Servicer may rely upon an
officer's certificate of the Servicer with regard to such Servicer's compliance
with the terms of its Servicing Agreement. In the event that the Master
Servicer, in its judgment, determines that a Servicer should be terminated in
accordance with its Servicing Agreement, or that a notice should be sent
pursuant to such Servicing Agreement with respect to the occurrence of an event
that, unless cured, would constitute grounds for such termination, the Master
Servicer shall notify the Seller and the Trustee thereof and the Master Servicer
shall issue such notice or take such other action as it deems appropriate.

          The Master Servicer, as provided for in the related Servicing
Agreement, shall not permit any Servicer to make any modification with respect
to any Mortgage Loan that would both constitute a sale or exchange of such
Mortgage Loan within the meaning of Section 1001 of the Code and any regulations
promulgated thereunder and cause REMIC I or REMIC II to fail to qualify as a
REMIC under the Code.

                                      -49-

<PAGE>

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

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

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

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

          Section 3.04. FIDELITY BOND. The Master Servicer, at its expense,
shall maintain in effect a blanket fidelity bond and an errors and omissions
insurance policy, affording coverage with respect to all directors, officers,
employees and other Persons acting on such Master Servicer's behalf, and
covering errors and omissions in the performance of the Master Servicer's
obligations hereunder. The errors and omissions insurance policy and the
fidelity bond shall be in such form and amount generally acceptable for entities
serving as master servicers or trustees.

                                      -50-

<PAGE>

          Section 3.05. POWER TO ACT; PROCEDURES. The Master Servicer shall
master service the Mortgage Loans and shall have full power and authority,
subject to the REMIC Provisions and the provisions of Article X hereof, to do
any and all things that it may deem necessary or desirable in connection with
the master servicing and administration of the Mortgage Loans, including but not
limited to the power and authority (i) to execute and deliver, on behalf of the
Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages, (iii) to
collect any Insurance Proceeds and Liquidation Proceeds, and (iv) to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Mortgage Loan, in each case, in accordance with the provisions of
this Agreement and the related Servicing Agreement, as applicable, provided,
however, that the Master Servicer shall not (and, consistent with its
responsibilities under Section 3.03, shall not permit any Servicer to) knowingly
or intentionally take any action, or fail to take (or fail to cause to be taken)
any action reasonably within its control and the scope of duties more
specifically set forth herein, that, under the REMIC Provisions, if taken or not
taken, as the case may be, would cause REMIC I or REMIC II to fail to qualify as
a REMIC or result in the imposition of a tax upon the Trust Fund (including but
not limited to the tax on prohibited transactions as defined in Section
860F(a)(2) of the Code and the tax on contributions to a REMIC set forth in
Section 860G(d) of the Code) unless the Master Servicer has received an Opinion
of Counsel (but not at the expense of the Master Servicer) to the effect that
the contemplated action would not cause REMIC I or REMIC II to fail to qualify
as a REMIC or result in the imposition of a tax upon REMIC I or REMIC II, as the
case may be. The Trustee shall furnish the Master Servicer, upon written request
from a Servicing Officer, with any powers of attorney empowering the Master
Servicer or any Servicer to execute and deliver instruments of satisfaction or
cancellation, or of partial or full release or discharge, and to foreclose upon
or otherwise liquidate Mortgaged Property, and to appeal, prosecute or defend in
any court action relating to the Mortgage Loans or the Mortgaged Property, in
accordance with the applicable Servicing Agreement and this Agreement, and the
Trustee shall execute and deliver such other documents, as the Master Servicer
may request, to enable the Master Servicer to master service and administer the
Mortgage Loans and carry out its duties hereunder, in each case in accordance
with Accepted Master Servicing Practices (and the Trustee shall have no
liability for misuse of any such powers of attorney by the Master Servicer or
any Servicer). Notwithstanding anything herein to the contrary, neither the
Master Servicer nor any Servicer shall without the Trustee's written consent:
(i) initiate any action, suit or proceeding solely under the Trustee's name
without indicating the Master Servicer's representative capacity or (ii) take
any action with the intent to cause, and which actually does cause, the Trustee
to be registered to do business in any state. The Master Servicer and each
Servicer shall indemnify the Trustee for any and all costs, liabilities and
expenses incurred by the Trustee in connection with the negligent or willful
misuse of such powers of attorney by the Master Servicer or each Servicer. If
the Master Servicer or the Trustee has been advised that it is likely that the
laws of the state in which action is to be taken prohibit such action if taken
in the name of the Trustee or that the Trustee would be adversely affected under
the "doing business" or tax laws of such state if such action is taken in its
name, the Master Servicer shall join with the Trustee in the appointment of a
co-trustee pursuant to Section 9.11 hereof. In the performance of its duties
hereunder, the Master Servicer shall

                                      -51-

<PAGE>

be an independent contractor and shall not, except in those instances where it
is taking action in the name of the Trustee, be deemed to be the agent of the
Trustee.

          Section 3.06. DUE-ON-SALE CLAUSES; ASSUMPTION AGREEMENTS. To the
extent provided in the applicable Servicing Agreement and to the extent Mortgage
Loans contain enforceable due-on-sale clauses, the Master Servicer shall cause
the Servicers to enforce such clauses in accordance with the applicable
Servicing Agreement. If applicable law prohibits the enforcement of a
due-on-sale clause or such clause is otherwise not enforced in accordance with
the applicable Servicing Agreement, and, as a consequence, a Mortgage Loan is
assumed, the original Mortgagor may be released from liability in accordance
with the applicable Servicing Agreement.

          Section 3.07. RELEASE OF MORTGAGE FILES. (a) Upon becoming aware of
the payment in full of any Mortgage Loan, or the receipt by any Servicer of a
notification that payment in full has been escrowed in a manner customary for
such purposes for payment to Certificateholders on the next Distribution Date,
the Servicer will, if required under the applicable Servicing Agreement,
promptly furnish to the Custodian, on behalf of the Trustee, two copies of a
certification substantially in the form of Exhibit D hereto signed by a
Servicing Officer or in a mutually agreeable electronic format which will, in
lieu of a signature on its face, originate from a Servicing Officer (which
certification shall include a statement to the effect that all amounts received
in connection with such payment that are required to be deposited in the
Protected Account maintained by the applicable Servicer pursuant to Section 4.01
or by the applicable Servicer pursuant to its Servicing Agreement have been or
will be so deposited) and shall request that the Custodian, on behalf of the
Trustee, deliver to the applicable Servicer the related Mortgage File. Upon
receipt of such certification and request, the Custodian, on behalf of the
Trustee, shall promptly release the related Mortgage File to the applicable
Servicer and the Trustee and Custodian shall have no further responsibility with
regard to such Mortgage File. Upon any such payment in full, each Servicer is
authorized, to give, as agent for the Trustee, as the mortgagee under the
Mortgage that secured the Mortgage Loan, an instrument of satisfaction (or
assignment of mortgage without recourse) regarding the Mortgaged Property
subject to the Mortgage, which instrument of satisfaction or assignment, as the
case may be, shall be delivered to the Person or Persons entitled thereto
against receipt therefor of such payment, it being understood and agreed that no
expenses incurred in connection with such instrument of satisfaction or
assignment, as the case may be, shall be chargeable to the Protected Account.

          (b) From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan and in accordance with the applicable Servicing
Agreement, the Trustee shall execute such documents as shall be prepared and
furnished to the Trustee by a Servicer or the Master Servicer (in form
reasonably acceptable to the Trustee) and as are necessary to the prosecution of
any such proceedings. The Custodian, on behalf of the Trustee, shall, upon the
request of a Servicer or the Master Servicer, and delivery to the Custodian, on
behalf of the Trustee, of two copies of a request for release signed by a
Servicing Officer substantially in the form of Exhibit D (or in a mutually
agreeable electronic format which will, in lieu of a signature on its face,
originate from a Servicing Officer), release the related Mortgage File held in
its possession or control to the Servicer or the Master Servicer, as applicable.
Such trust receipt shall obligate the Servicer or the Master Servicer

                                      -52-

<PAGE>

to return the Mortgage File to the Custodian on behalf of the Trustee, when the
need therefor by the Servicer or the Master Servicer no longer exists unless the
Mortgage Loan shall be liquidated, in which case, upon receipt of a certificate
of a Servicing Officer similar to that hereinabove specified, the Mortgage File
shall be released by the Custodian, on behalf of the Trustee, to the Servicer or
the Master Servicer.

          Section 3.08. DOCUMENTS, RECORDS AND FUNDS IN POSSESSION OF MASTER
SERVICER TO BE HELD FOR TRUSTEE.

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

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

          Section 3.09. STANDARD HAZARD INSURANCE AND FLOOD INSURANCE POLICIES.

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<PAGE>

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

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

          Section 3.10. PRESENTMENT OF CLAIMS AND COLLECTION OF PROCEEDS. The
Master Servicer shall (to the extent provided in the applicable Servicing
Agreement) cause the related Servicer to, prepare and present on behalf of the
Trustee and the Certificateholders all claims under the Insurance Policies and
take such actions (including the negotiation, settlement, compromise or
enforcement of the insured's claim) as shall be necessary to realize recovery
under such policies. Any proceeds disbursed to the Master Servicer (or disbursed
to a Servicer and remitted to the Master Servicer) in respect of such policies,
bonds or contracts shall be promptly deposited in the Master Servicer Collection
Account upon receipt, except that any amounts realized that are to be applied to
the repair or restoration of the related Mortgaged Property as a condition
precedent to the presentation of claims on the related Mortgage Loan to the
insurer under any applicable Insurance Policy need not be so deposited (or
remitted).

          Section 3.11. MAINTENANCE OF THE PRIMARY MORTGAGE INSURANCE POLICIES.

          (a) The Master Servicer shall not take, or permit any Servicer (to the
extent such action is prohibited under the applicable Servicing Agreement) to
take, any action that would result in noncoverage under any applicable Primary
Mortgage Insurance Policy of any loss which, but for the actions of such Master
Servicer or Servicer, would have been covered thereunder. The Master Servicer
shall use its best reasonable efforts to cause each Servicer (to the extent
required under the related Servicing Agreement) to keep in force and effect (to
the extent that the Mortgage Loan requires the Mortgagor to maintain such
insurance), primary mortgage insurance applicable to each Mortgage Loan in
accordance with the provisions of this Agreement and the related Servicing

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<PAGE>

Agreement, as applicable. The Master Servicer shall not, and shall not permit
any Servicer (to the extent required under the related Servicing Agreement) to,
cancel or refuse to renew any such Primary Mortgage Insurance Policy that is in
effect at the date of the initial issuance of the Mortgage Note and is required
to be kept in force hereunder except in accordance with the provisions of this
Agreement and the related Servicing Agreement, as applicable.

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

          Section 3.12. TRUSTEE TO RETAIN POSSESSION OF CERTAIN INSURANCE
POLICIES AND DOCUMENTS.

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

          Section 3.13. REALIZATION UPON DEFAULTED MORTGAGE LOANS. The Master
Servicer shall cause each Servicer (to the extent required under the related
Servicing Agreement) to foreclose upon, repossess or otherwise comparably
convert the ownership of Mortgaged Properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory
arrangements can be made for collection of delinquent payments, all in
accordance with the applicable Servicing Agreement.

          In addition to the foregoing and subject to the requirements of the
Cendant/MLCC Servicing Agreement, MLCC will use its best reasonable efforts to
realize upon any Additional Collateral for such of the Mortgage Loans secured by
Additional Collateral as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments;
provided that MLCC will not, on behalf of the Trustee, obtain title to any such
Additional Collateral

                                      -55-

<PAGE>

as a result of or in lieu of the disposition thereof or otherwise, and provided
further that (i) MLCC will not proceed with respect to such Additional
Collateral in any manner that would impair the ability to recover against the
related Mortgaged Property, and (ii) MLCC will proceed with any acquisition of
REO Property in a manner that preserves the ability to apply the proceeds of
such Additional Collateral against amounts owed under the defaulted Mortgage
Loan. Any proceeds realized from such Additional Collateral (other than amounts
to be released to the Mortgagor or the related guarantor in accordance with
procedures that MLCC would follow in servicing loans held for its own account,
subject to the terms and conditions of the related Mortgage and Mortgage Note
and to the terms and conditions of any security agreement, guarantee agreement,
mortgage or other agreement governing the disposition of the proceeds of such
Additional Collateral) will be deposited in the Master Servicer Collection
Account, subject to withdrawal pursuant to Section 4.03. Any other payment
received by MLCC and remitted to the Master Servicer in respect of such
Additional Collateral shall be deposited in the Master Servicer Collection
Account subject to withdrawal pursuant to Section 4.03.

          Section 3.14.     COMPENSATION FOR THE MASTER SERVICER.

          (a) Pursuant to Article IV all income and gain realized from any
investment of funds in the Distribution Account and the Master Servicer
Collection Account shall be for the benefit of the Master Servicer as
compensation. Servicing compensation in the form of assumption fees, if any,
late payment charges, as collected, if any, or otherwise (but not including any
prepayment premium or penalty) shall be retained by the applicable Servicer and
shall not be deposited in the Protected Account. The Master Servicer will be
entitled to retain, as additional compensation, any interest remitted by a
Servicer in connection with a Principal Prepayment in full or otherwise in
excess of amounts required to be remitted to the Master Servicer Collection
Account. The Master Servicer shall be required to pay all expenses incurred by
it in connection with its activities hereunder and shall not be entitled to
reimbursement therefor except as provided in this Agreement.

          (b) The amount of the aggregate compensation payable as set forth in
Section 3.14(a) (the "Master Servicing Compensation") to the Master Servicer in
respect of any Distribution Date shall be reduced in accordance with Section
6.07.

          Section 3.15.     REO PROPERTY.

          (a) In the event the Trust Fund acquires ownership of any REO Property
in respect of any related Mortgage Loan, the deed or certificate of sale shall
be issued to the Trustee, or to its nominee, on behalf of the related
Certificateholders. The Master Servicer shall, to the extent provided in the
applicable Servicing Agreement, cause the applicable Servicer to sell, any REO
Property as expeditiously as possible and in accordance with the provisions of
this Agreement and the related Servicing Agreement, as applicable. Pursuant to
its efforts to sell such REO Property, the Master Servicer shall cause the
applicable Servicer to protect and conserve, such REO Property in the manner and
to the extent required by the applicable Servicing Agreement, in accordance with
the REMIC Provisions and in a manner that does not result in a tax on "net
income from foreclosure

                                      -56-

<PAGE>

property" or cause such REO Property to fail to qualify as "foreclosure
property" within the meaning of Section 860G(a)(8) of the Code.

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

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

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

          Section 3.16.     ANNUAL OFFICER'S CERTIFICATE AS TO COMPLIANCE.

          (a) The Master Servicer shall deliver to the Trustee and the Rating
Agencies on or before May 31 of each year, commencing on May 31, 2002, an
Officer's Certificate, certifying that with respect to the period ending
December 31 of the prior year: (i) such Servicing Officer has reviewed the
activities of such Master Servicer during the preceding calendar year or portion
thereof and its performance under this Agreement, (ii) to the best of such
Servicing Officer's knowledge, based on such review, such Master Servicer has
performed and fulfilled its duties, responsibilities and obligations under this
Agreement in all material respects throughout such year, or, if there has been a
default in the fulfillment of any such duties, responsibilities or obligations,
specifying each such default known to such Servicing Officer and the nature and
status thereof, (iii) nothing has come to the attention of such Servicing
Officer to lead such Servicing Officer to believe that any Servicer has failed
to perform any of its duties, responsibilities and obligations under its
Servicing Agreement in all material respects throughout such year, or, if there
has been a material default in the performance or fulfillment of any such
duties, responsibilities or obligations, specifying each such default known to
such Servicing Officer and the nature and status thereof.

          (b) Copies of such statements shall be provided to any
Certificateholder upon request, by the Master Servicer or by the Trustee at the
Master Servicer's expense if the Master Servicer failed to provide such copies
(unless (i) the Master Servicer shall have failed to provide the Trustee

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<PAGE>

with such statement or (ii) the Trustee shall be unaware of the Master
Servicer's failure to provide such statement).

          Section 3.17. ANNUAL INDEPENDENT ACCOUNTANT'S SERVICING REPORT. If the
Master Servicer has, during the course of any fiscal year, directly serviced any
of the Mortgage Loans, then the Master Servicer at its expense shall cause a
nationally recognized firm of independent certified public accountants to
furnish a statement to the Trustee, the Rating Agencies and the Seller on or
before May 31 of each year, commencing on May 31, 2002 to the effect that, with
respect to the most recently ended fiscal year, such firm has examined certain
records and documents relating to the Master Servicer's performance of its
servicing obligations under this Agreement and pooling and servicing and trust
agreements in material respects similar to this Agreement and to each other and
that, on the basis of such examination conducted substantially in compliance
with the audit program for mortgages serviced for Freddie Mac or the Uniform
Single Attestation Program for Mortgage Bankers, such firm is of the opinion
that the Master Servicer's activities have been conducted in compliance with
this Agreement, or that such examination has disclosed no material items of
noncompliance except for (i) such exceptions as such firm believes to be
immaterial, (ii) such other exceptions as are set forth in such statement and
(iii) such exceptions that the Uniform Single Attestation Program for Mortgage
Bankers or the Audit Program for Mortgages Serviced by Freddie Mac requires it
to report. Copies of such statements shall be provided to any Certificateholder
upon request by the Master Servicer, or by the Trustee at the expense of the
Master Servicer if the Master Servicer shall fail to provide such copies. If
such report discloses exceptions that are material, the Master Servicer shall
advise the Trustee whether such exceptions have been or are susceptible of cure,
and will take prompt action to do so.

          Section 3.18. REPORTS FILED WITH SECURITIES AND EXCHANGE COMMISSION.
Within 15 days after each Distribution Date, the Securities Administrator shall,
in accordance with industry standards, file with the Commission via the
Electronic Data Gathering and Retrieval System ("EDGAR"), a Form 8-K with a copy
of the statement to the Trustee who shall furnish a copy of the statement to the
Certificateholders for such Distribution Date as an exhibit thereto. Prior to
January 30, 2002, the Securities Administrator shall, in accordance with
industry standards and only if instructed by the Seller, file a Form 15
Suspension Notice with respect to the Trust Fund, if applicable. Prior to March
30, 2002, the Securities Administrator shall file a Form 10-K, in substance
conforming to industry standards, with respect to the Trust Fund. The Seller
hereby grants to the Securities Administrator a limited power of attorney to
execute and file each such document on behalf of the Seller. Such power of
attorney shall continue until either the earlier of (i) receipt by the
Securities Administrator from the Seller of written termination of such power of
attorney and (ii) the termination of the Trust Fund. The Seller agrees to
promptly furnish to the Securities Administrator, from time to time upon
request, such further information, reports and financial statements within its
control related to this Agreement and the Mortgage Loans as the Securities
Administrator reasonably deems appropriate to prepare and file all necessary
reports with the Commission. The Securities Administrator shall have no
responsibility to file any items other than those specified in this Section
3.18; provided, however, the Securities Administrator will cooperate with the
Seller in connection with any additional filings with respect to the Trust Fund
as the Seller deems necessary under the

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<PAGE>

Securities Exchange Act of 1934, as amended (the "Exchange Act"). Copies of all
reports filed by the Securities Administrator under the Exchange Act shall be
sent to: the Seller c/o Bear, Stearns & Co. Inc., Attn: Managing
Director-Analysis and Control, One Metrotech Center North, Brooklyn, New York
11202-3859. Fees and expenses incurred by the Securities Administrator in
connection with this Section 3.18 shall not be reimbursable from the Trust Fund.

          Section 3.19.  EMC. On the Closing Date, EMC will receive from the
Seller a payment of $5,000.

          Section 3.20. UCC. The Trustee agrees to file continuation statements
for any Uniform Commercial Code financing statements which the Seller has
informed the Trustee were filed on the Closing Date in connection with the
Trust. The Seller shall file any financing statements or amendments thereto
required by any change in the Uniform Commercial Code.

          Section 3.21.     OPTIONAL PURCHASE OF DEFAULTED MORTGAGE LOANS.

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

          If at any time EMC remits to the Master Servicer a payment for deposit
in the Master Servicer Collection Account covering the amount of the Repurchase
Price for such a Mortgage Loan, and EMC provides to the Trustee a certification
signed by a Servicing Officer stating that the amount of such payment has been
deposited in the Master Servicer Collection Account, then the Trustee shall
execute the assignment of such Mortgage Loan at the request of EMC without
recourse to EMC which shall succeed to all the Trustee's right, title and
interest in and to such Mortgage Loan, and all security and documents relative
thereto. Such assignment shall be an assignment outright and not for security.
EMC will thereupon own such Mortgage, and all such security and documents, free
of any further obligation to the Trustee or the Certificateholders with respect
thereto.

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<PAGE>

                                   ARTICLE IV

                                    Accounts

          Section 4.01. PROTECTED ACCOUNTS. (a) The Master Servicer shall
enforce the obligation of each Servicer to establish and maintain a Protected
Account in accordance with the applicable Servicing Agreement, with records to
be kept with respect thereto on a Mortgage Loan by Mortgage Loan basis, into
which accounts shall be deposited within 48 hours (or as of such other time
specified in the related Servicing Agreement) of receipt all collections of
principal and interest on any Mortgage Loan and with respect to any REO Property
received by a Servicer, including Principal Prepayments, Insurance Proceeds,
Liquidation Proceeds, and advances made from the Servicer's own funds (less
servicing compensation as permitted by the applicable Servicing Agreement in the
case of any Servicer) and all other amounts to be deposited in the Protected
Account. The Servicer is hereby authorized to make withdrawals from and deposits
to the related Protected Account for purposes required or permitted by this
Agreement. To the extent provided in the related Servicing Agreement, the
Protected Account shall be held in a Designated Depository Institution and
segregated on the books of such institution in the name of the Trustee for the
benefit of Certificateholders.

          (b) To the extent provided in the related Servicing Agreement, amounts
on deposit in a Protected Account may be invested in Permitted Investments in
the name of the Trustee for the benefit of Certificateholders and, except as
provided in the preceding paragraph, not commingled with any other funds, such
Permitted Investments to mature, or to be subject to redemption or withdrawal,
no later than the date on which such funds are required to be withdrawn for
deposit in the Master Servicer Collection Account, and shall be held until
required for such deposit. The income earned from Permitted Investments made
pursuant to this Section 4.01 shall be paid to the related Servicer under the
applicable Servicing Agreement, and the risk of loss of moneys required to be
distributed to the Certificateholders resulting from such investments shall be
borne by and be the risk of the related Servicer. The related Servicer (to the
extent provided in the Servicing Agreement) shall deposit the amount of any such
loss in the Protected Account within two Business Days of receipt of
notification of such loss but not later than the second Business Day prior to
the Distribution Date on which the moneys so invested are required to be
distributed to the Certificateholders.

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

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<PAGE>

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

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

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

                   (iv) Any amount to be used as an Advance.

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

          Section 4.02. MASTER SERVICER COLLECTION ACCOUNT. (a) The Master
Servicer shall establish and maintain in the name of the Trustee, for the
benefit of the Certificateholders, the Master Servicer Collection Account as a
segregated trust account or accounts. The Master Servicer will deposit in the
Master Servicer Collection Account as identified by the Master Servicer and as
received by the Master Servicer, the following amounts:

                   (i) Any amounts withdrawn from a Protected Account;

                   (ii)  Any Monthly Advance and any Compensating Interest
          Payments;

                   (iii) Any Insurance Proceeds or Liquidation Proceeds received
          by or on behalf of the Master Servicer or which were not deposited in
          a Protected Account;

                   (iv) The Repurchase Price with respect to any Mortgage Loans
          purchased by the Mortgage Loan Seller or Section 2.02 or 2.03, any
          amounts which are to be treated pursuant to Section 2.04 of this
          Agreement as the payment of such a Repurchase Price, the Repurchase
          Price with respect to any Mortgage Loans purchased by EMC pursuant to
          Section 3.21, and all proceeds of any Mortgage Loans or property
          acquired with respect thereto repurchased by the Seller or its
          designee pursuant to Section 10.01;

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<PAGE>

                   (v) Any amounts required to be deposited with respect to
          losses on investments of deposits in an Account; and

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

          (b) All amounts deposited to the Master Servicer Collection Account
shall be held by the Master Servicer in the name of the Trustee in trust for the
benefit of the Certificateholders in accordance with the terms and provisions of
this Agreement. The requirements for crediting the Master Servicer Collection
Account or the Distribution Account shall be exclusive, it being understood and
agreed that, without limiting the generality of the foregoing, payments in the
nature of (i) prepayment or late payment charges or assumption, tax service,
statement account or payoff, substitution, satisfaction, release and other like
fees and charges and (ii) the items enumerated in Subsections 4.05(a)(i), (ii),
(iii), (iv), (vi), (vii), (viii), (ix), (xi) and (xii) with respect to the
Securities Administrator, need not be credited by the Master Servicer or the
related Servicer to the Distribution Account or the Master Servicer Collection
Account, as applicable. In the event that the Master Servicer shall deposit or
cause to be deposited to the Distribution Account any amount not required to be
credited thereto, the Trustee, upon receipt of a written request therefor signed
by a Servicing Officer of the Master Servicer, shall promptly transfer such
amount to the Master Servicer, any provision herein to the contrary
notwithstanding.

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

        Section 4.03. PERMITTED WITHDRAWALS AND TRANSFERS FROM THE MASTER
SERVICER COLLECTION ACCOUNT. (a) The Master Servicer will, from time to time on
demand of the Master Servicer or the Securities Administrator, make or cause to
be made such withdrawals or transfers from the Master Servicer Collection
Account as the Master Servicer has designated for such transfer or withdrawal
pursuant to the Servicing Agreements. The Master Servicer may clear and
terminate the Master Servicer Collection Account pursuant to Section 10.01 and
remove amounts from time to time deposited in error.

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<PAGE>

        (b) On an ongoing basis, the Master Servicer shall withdraw from the
Master Servicer Collection Account any expenses recoverable by the Trustee, the
Master Servicer or the Securities Administrator pursuant to Sections 3.03, 7.01,
7.04 and 9.05.

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

        (d) No later than 3:00 p.m. New York time on each Distribution Account
Deposit Date, the Master Servicer will transfer all Available Funds on deposit
in the Master Servicer Collection Account with respect to the related
Distribution Date to the Trustee for deposit in the Distribution Account.

        Section 4.04.  DISTRIBUTION ACCOUNT.  (a)  The Trustee shall establish
and maintain in the name of the Trustee, for the benefit of the
Certificateholders, the Distribution Account as a segregated trust account or
accounts.

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

        (c) The Distribution Account shall constitute a trust account of the
Trust Fund segregated on the books of the Trustee and held by the Trustee in
trust in its Corporate Trust Office, and the Distribution Account and the funds
deposited therein shall not be subject to, and shall be protected from, all
claims, liens, and encumbrances of any creditors or depositors of the Trustee or
the Master Servicer (whether made directly, or indirectly through a liquidator
or receiver of the Trustee or the Master Servicer). The amount at any time
credited to the Distribution Account shall be (i) fully insured by the FDIC to
the maximum coverage provided thereby or (ii) invested in the name of the
Trustee, in such Permitted Investments selected by the Master Servicer or
deposited in demand deposits with such depository institutions as selected by
the Master Servicer, provided that time deposits of such depository institutions
would be a Permitted Investment. All Permitted Investments shall mature or be
subject to redemption or withdrawal on or before, and shall be held until, the
next succeeding Distribution Date if the obligor for such Permitted Investment
is the Trustee or, if such obligor is any other Person, the Business Day
preceding such Distribution Date. All investment earnings on amounts on deposit
in the Distribution Account or benefit from funds uninvested therein from time
to time shall be for the account of the Master Servicer. The Master Servicer
shall be permitted to withdraw or receive distribution of any and all investment
earnings from the Distribution Account on each Distribution Date. If there is
any loss on a Permitted Investment or demand deposit, the Master Servicer shall
remit the amount of the loss to the Trustee who shall deposit such amount in the
Distribution Account. With respect to the Distribution Account and the funds
deposited therein, the Master Servicer shall take such action as may be
necessary to ensure that the Certificateholders shall be entitled to the
priorities afforded to such a trust account (in addition

                                      -63-

<PAGE>

to a claim against the estate of the Trustee) as provided by 12 U.S.C. ss.
92a(e), and applicable regulations pursuant thereto, if applicable, or any
applicable comparable state statute applicable to state chartered banking
corporations.

        Section 4.05. PERMITTED WITHDRAWALS AND TRANSFERS FROM THE DISTRIBUTION
ACCOUNT. (a) The Trustee will, from time to time on demand of the Master
Servicer or the Securities Administrator, make or cause to be made such
withdrawals or transfers from the Distribution Account as the Master Servicer
has designated for such transfer or withdrawal pursuant to the Servicing
Agreements or as the Securities Administrator has instructed hereunder for the
following purposes (limited in the case of amounts due the Master Servicer to
those not withdrawn from the Master Servicer Collection Account in accordance
with the terms of this Agreement):

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

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

               (iii) to reimburse the Master Servicer or any Servicer from
        Insurance Proceeds relating to a particular Mortgage Loan for insured
        expenses incurred with respect to such Mortgage Loan and to reimburse
        the Master Servicer or such Servicer from Liquidation Proceeds from a
        particular Mortgage Loan for Liquidation Expenses incurred with respect
        to such Mortgage Loan; PROVIDED THAT the Master Servicer shall not be
        entitled to reimbursement for Liquidation Expenses with respect to a
        Mortgage Loan to the extent that (i) any amounts with respect to such
        Mortgage Loan were paid as Excess Liquidation Proceeds pursuant to
        clause (xi) of this Subsection (a) to the Master Servicer; and (ii) such
        Liquidation Expenses were not included in the computation of such Excess
        Liquidation Proceeds;

               (iv) to pay the Master Servicer or any Servicer (payment to any
        Servicer to be subject to prior payment to the Master Servicer of an
        amount equal to the Master Servicing Fee), as appropriate, from
        Liquidation Proceeds or Insurance Proceeds received in connection with
        the liquidation of any Mortgage Loan, the amount which it or such
        Servicer would have been entitled to receive under subclause (ix) of
        this Subsection 4.03(a) as servicing

                                      -64-

<PAGE>

        compensation on account of each defaulted scheduled payment on such
        Mortgage Loan if paid in a timely manner by the related Mortgagor;

               (v) to pay the Master Servicer or any Servicer (payment to any
        Servicer to be subject to prior payment to the Master Servicer of the
        portion of the Master Servicing Fee which the Master Servicer is
        entitled to retain) from the Repurchase Price for any Mortgage Loan, the
        amount which it or such Servicer would have been entitled to receive
        under subclause (ix) of this Subsection (a) as servicing compensation;

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

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

               (viii)  to pay the Master Servicer as set forth in Section 3.14;

               (ix) to reimburse the Master Servicer for expenses, costs and
        liabilities incurred by and reimbursable to it pursuant to Sections
        3.03, 7.04(c) and (d) and 12.03;

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

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

               (xii) to reimburse the Trustee or the Securities Administrator
        for expenses, costs and liabilities incurred by or reimbursable to it
        pursuant to this Agreement;

               (xiii)  to remove amounts deposited in error;

               (xiv)   to pay the Supplemental PMI Insurance Premium to the
        Supplemental PMI Insurer; and

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

                                      -65-

<PAGE>

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

        (c) On each Distribution Date, the Trustee shall distribute the Group
Available Funds for each Loan Group to the Holders of the Certificates in
accordance with Section 6.01.

                                      -66-

<PAGE>

                                    ARTICLE V

                                  Certificates

        Section 5.01. CERTIFICATES. (a) The Depository, the Seller and the
Trustee have entered into a Depository Agreement dated as of the Closing Date
(the "Depository Agreement"). Except for the Residual Certificates, the Private
Certificates and the Individual Certificates and as provided in Subsection
5.01(b), the Certificates shall at all times remain registered in the name of
the Depository or its nominee and at all times: (i) registration of such
Certificates may not be transferred by the Trustee except to a successor to the
Depository; (ii) ownership and transfers of registration of such Certificates on
the books of the Depository shall be governed by applicable rules established by
the Depository; (iii) the Depository may collect its usual and customary fees,
charges and expenses from its Depository Participants; (iv) the Trustee shall
deal with the Depository as representative of such Certificate Owners of the
respective Class of Certificates for purposes of exercising the rights of
Certificateholders under this Agreement, and requests and directions for and
votes of such representative shall not be deemed to be inconsistent if they are
made with respect to different Certificate Owners; and (v) the Trustee may rely
and shall be fully protected in relying upon information furnished by the
Depository with respect to its Depository Participants.

        The Residual Certificates and the Private Certificates are initially
Physical Certificates. If at any time the Holders of all of the Certificates of
one or more such Classes request that the Trustee cause such Class to become
Global Certificates, the Trustee and the Seller will take such action as may be
reasonably required to cause the Depository to accept such Class or Classes for
trading if it may legally be so traded.

        All transfers by Certificate Owners of such respective Classes of
Book-Entry Certificates and any Global Certificates shall be made in accordance
with the procedures established by the Depository Participant or brokerage firm
representing such Certificate Owners. Each Depository Participant shall only
transfer Book-Entry Certificates of Certificate Owners it represents or of
brokerage firms for which it acts as agent in accordance with the Depository's
normal procedures.

        (b) If (i)(A) the Seller advises the Trustee in writing that the
Depository is no longer willing or able to properly discharge its
responsibilities as Depository and (B) the Trustee or the Seller is unable to
locate a qualified successor within 30 days or (ii) the Seller at its option
advises the Trustee in writing that it elects to terminate the book-entry system
through the Depository, the Trustee shall request that the Depository notify all
Certificate Owners of the occurrence of any such event and of the availability
of definitive, fully registered Certificates to Certificate Owners requesting
the same. Upon surrender to the Trustee of the Certificates by the Depository,
accompanied by registration instructions from the Depository for registration,
the Trustee shall issue the definitive Certificates. Neither the Seller nor the
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.

                                      -67-

<PAGE>

        (c) REMIC I will be evidenced by (x) the REMIC I Regular Interests,
which will be uncertificated and non-transferable and are hereby designated as
the "regular interests" in REMIC I and (y) the Class R-I Certificates, which is
hereby designated as the single "residual interest" in REMIC I.

        The REMIC I Regular Interests and the Class R-I Certificates will have
the following designations and pass-through rates, and distributions of
principal and interest thereon shall be allocated in the following manner:
<TABLE>
<CAPTION>

                                                                                Corresponding Classes
                                                                                   of Certificates
                                                                                   ---------------
                                                                 Pass-               Allocation            Allocation
         REMIC I               Initial Uncertificated           Through                  of                    of
         Interest              Principal Balance ($)             Rate                Principal              Interest
         --------              ---------------------            -------              ---------             ---------
<S>                              <C>                              <C>                <C>                   <C>
1A                               $     148,466,400.00             (1)                   I-A                    I-A
1B                               $       3,029,942.00             (1)                   (6)                    (6)
1R                               $              50.00             (2)                   R-II                  R-II
2A                               $     434,409,200.00             (2)                   II-A                  II-A
2B                               $       8,865,518.00             (2)                   (6)                    (6)
3A                               $     237,103,000.00             (3)                  III-A                  III-A
3B                               $       4,838,918.00             (3)                   (6)                    (6)
4A                               $      49,641,400.00             (4)                   IV-A                  IV-A
4B                               $       1,013,126.00             (4)                   (6)                    (6)
5A                               $      49,805,900.00             (5)                   V-A                    V-A
5B                               $       1,016,525.00             (5)                   (6)                    (6)
R-I                              $              50.00             (1)                   N/A                    N/A
---------------
</TABLE>
(1) During each Interest Accrual Period, REMIC I Regular Interests 1A, 1B and 1R
and the Class R-I Certificates will bear interest at a variable Pass-Through
Rate equal to the weighted average of the Net Rates of the Group 1 Mortgage
Loans.

(2) During each Interest Accrual Period, REMIC I Regular Interests 2A-1, 2A-2,
2A-3 and 2B will bear interest at a variable Pass-Through Rate equal to the
weighted average of the Net Rates of the Group 2 Mortgage Loans.

(3) During each Interest Accrual Period, REMIC I Regular Interests 3A and 3B
will bear interest at a variable Pass- Through Rate equal to the weighted
average of the Net Rates of the Group 3 Mortgage Loans.

(4) During each Interest Accrual Period, REMIC I Regular Interests 4A and 4B
will bear interest at a variable Pass- Through Rate equal to the weighted
average of the Net Rates of the Group 4 Mortgage Loans.

(5) During each Interest Accrual Period, REMIC I Regular Interests 5A and 5B
will bear interest at a variable Pass- Through Rate equal to the weighted
average of the Net Rates of the Group 4 Mortgage Loans.

(6) The corresponding Classes of Certificates for these REMIC I Regular
Interests are all of the Subordinate Certificates. Principal and interest shall
be allocable to the Subordinate Certificates and shall be apportioned among such
Certificates in the same order and priority as payments are to be made on such
Certificates.

                                      -68-

<PAGE>

        Principal and interest shall be payable to, and shortfalls, losses and
prepayments are allocable to, the REMIC I Regular Interests in the same order
and priority as payments are to be made on, and shortfalls, losses and
prepayments are allocable to, the corresponding Classes of Certificates.

(ii) REMIC II will be evidenced by (x) the Certificates (other than the Class R
Certificates) (the "REMIC II Regular Certificates"), which are hereby designated
as the "regular interests" in REMIC I and have the principal balances and accrue
interest at the Pass-Through Rates equal to those set forth in Section 5.01(d)
and (y) the Class R-II Certificate, which is hereby designated as the single
"residual interest" in REMIC II.

        The Classes of the Certificates shall have the following designations,
initial principal amounts and Pass-Through Rates:

     DESIGNATION           INITIAL PRINCIPAL AMOUNT       PASS-THROUGH RATE
     -----------           ------------------------       -----------------
          I-A                 $    148,466,400.00              (1)
         II-A                 $    434,409,200.00              (2)
        III-A                 $    237,103,000.00              (3)
         IV-A                 $     49,641,400.00              (4)
          V-A                 $     49,805,900.00              (5)
          R-I                 $             50.00              (1)
         R-II                 $             50.00              (1)
          B-1                 $      5,160,000.00              (6)
          B-2                 $      4,691,100.00              (6)
          B-3                 $      4,221,800.00              (6)
          B-4                 $      2,345,400.00              (6)
          B-5                 $        938,200.00              (6)
          B-6                 $      1,407,528.97              (6)
-------------

          (1) The Class I-A, Class R-I and Class R-II Certificates will bear
interest at a variable Pass-Through Rate equal to the weighted average of the
Net Rates of the Group 1 Mortgage Loans, weighted on the basis of the respective
Scheduled Principal Balances of each such Mortgage Loan as of the beginning of
the Due Period immediately preceding the related Distribution Date. The
Pass-Through Rate with respect to the first Interest Accrual Period is expected
to be approximately 6.220% per annum. For federal income tax purposes, the
Pass-Through Rate for the Class I-A Certificates shall equal the Pass-Through
Rate for REMIC I Regular Interest 1A.

          (2) The Class II-A Certificates will bear interest at a variable
Pass-Through Rate equal to the weighted average of the Net Rates of the Group 2
Mortgage Loans, weighted on the basis of the respective Scheduled Principal
Balances of each such Mortgage Loan as of the beginning of the Due Period
immediately preceding the related

                                      -69-

<PAGE>

Distribution Date. The Pass-Through Rate with respect to the first Interest
Accrual Period is expected to be approximately 6.688% per annum. For federal
income tax purposes, the Pass-Through Rate for the Class II-A Certificates shall
equal the Pass-Through Rate for REMIC I Regular Interest 2A.

          (3) The Class III-A Certificates will bear interest at a variable
Pass-Through Rate equal to the weighted average of the Net Rates of the Group 3
Mortgage Loans, weighted on the basis of the respective Scheduled Principal
Balances of each such Mortgage Loan as of the beginning of the Due Period
immediately preceding the related Distribution Date. The Pass-Through Rate with
respect to the first Interest Accrual Period is expected to be approximately
6.583% per annum. For federal income tax purposes, the Pass-Through Rate for the
Class III-A Certificates shall equal the Pass-Through Rate for REMIC I Regular
Interest 3A.

          (4) The Class IV-A Certificates will bear interest at a variable
Pass-Through Rate equal to the weighted average of the Net Rates of the Group 4
Mortgage Loans, weighted on the basis of the respective Scheduled Principal
Balances of each such Mortgage Loan as of the beginning of the Due Period
immediately preceding the related Distribution Date. The Pass-Through Rate with
respect to the first Interest Accrual Period is expected to be approximately
6.868% per annum. For federal income tax purposes, the Pass-Through Rate for the
Class IV-A Certificates shall equal the Pass-Through Rate for REMIC I Regular
Interest 4A.

          (5) The Class V-A Certificates will bear interest at a variable
Pass-Through Rate equal to the weighted average of the Net Rates of the Group 5
Mortgage Loans, weighted on the basis of the respective Scheduled Principal
Balances of each such Mortgage Loan as of the beginning of the Due Period
immediately preceding the related Distribution Date. The Pass-Through Rate with
respect to the first Interest Accrual Period is expected to be approximately
6.397% per annum. For federal income tax purposes, the Pass-Through Rate for the
Class V-A Certificates shall equal the Pass-Through Rate for REMIC I Regular
Interest 5A.

          (6) The Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and
Class B-6 Certificates will bear interest at a variable Pass-Through Rate equal
to the weighted average of the REMIC I Regular Interest 1B, REMIC I Regular
Interest 2B, REMIC I Regular Interest 3B, REMIC I Regular Interest 4B and REMIC
I Regular Interest 5B, each weighted based on its Uncertificated Principal
Balance. The Pass-Through Rate with respect to the first Interest Accrual Period
is expected to be approximately 6.579% per annum.

        (d) Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
regulations, the Distribution Date immediately following the maturity date for
the Mortgage Loan with the latest maturity date in the Trust Fund has been
designated as the "latest possible maturity date" for the REMIC I Regular
Interests and the Certificates.

        (e) With respect to each Distribution Date, each Class of Certificates
shall accrue interest during the related Interest Accrual Period. With respect
to each Distribution Date and each such Class of Certificates, interest shall be
calculated, on the basis of a 360-day year comprised of twelve 30-day months,
based upon the respective Pass-Through Rate set forth, or determined as
provided, above and the Current Principal Amount of such Class applicable to
such Distribution Date.

        (f) The Certificates shall be substantially in the forms set forth in
Exhibits A-1, A-2 and A-3. On original issuance, the Trustee shall sign,
countersign and shall deliver them at the direction of the Seller. Pending the
preparation of definitive Certificates of any Class, the Trustee may sign and
countersign temporary Certificates that are printed, lithographed or
typewritten, in authorized denominations for Certificates of such Class,
substantially of the tenor of the definitive Certificates in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and

                                      -70-

<PAGE>

other variations as the officers or authorized signatories executing such
Certificates may determine, as evidenced by their execution of such
Certificates. If temporary Certificates are issued, the Seller will cause
definitive Certificates to be prepared without unreasonable delay. After the
preparation of definitive Certificates, the temporary Certificates shall be
exchangeable for definitive Certificates upon surrender of the temporary
Certificates at the office of the Trustee, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Certificates, the
Trustee shall sign and countersign and deliver in exchange therefor a like
aggregate principal amount, in authorized denominations for such Class, of
definitive Certificates of the same Class. Until so exchanged, such temporary
Certificates shall in all respects be entitled to the same benefits as
definitive Certificates.

        (g) Each Class of Book-Entry Certificates will be registered as a single
Certificate of such Class held by a nominee of the Depository or the DTC
Custodian, and beneficial interests will be held by investors through the
book-entry facilities of the Depository in minimum denominations of (i) in the
case of the Senior Certificates (other than the Residual Certificates), $1,000
and in each case increments of $1.00 in excess thereof, and (ii) in the case of
the Offered Subordinate Certificates, $25,000 and increments of $1.00 in excess
thereof, except that one Certificate of each such Class may be issued in a
different amount so that the sum of the denominations of all outstanding
Certificates of such Class shall equal the Current Principal Amount of such
Class on the Closing Date. On the Closing Date, the Trustee shall execute and
countersign Physical Certificates all in an aggregate principal amount that
shall equal the Current Principal Amount of such Class on the Closing Date. The
Residual Certificates shall each be issued in certificated fully-registered form
in the denomination of $50. Each Class of Global Certificates, if any, shall be
issued in fully registered form in minimum dollar denominations of $50,000 and
integral multiples of $1.00 in excess thereof, except that one Certificate of
each Class may be in a different denomination so that the sum of the
denominations of all outstanding Certificates of such Class shall equal the
Current Principal Amount of such Class on the Closing Date. On the Closing Date,
the Trustee shall execute and countersign (i) in the case of each Class of
Offered Certificates, the Certificate in the entire Current Principal Amount of
the respective Class and (ii) in the case of each Class of Private Certificates,
Individual Certificates all in an aggregate principal amount that shall equal
the Current Principal Amount of each such respective Class on the Closing Date.
The Certificates referred to in clause (i) and if at any time there are to be
Global Certificates, the Global Certificates shall be delivered by the Seller to
the Depository or pursuant to the Depository's instructions, shall be delivered
by the Seller on behalf of the Depository to and deposited with the DTC
Custodian. The Trustee shall sign the Certificates by facsimile or manual
signature and countersign them by manual signature on behalf of the Trustee by
one or more authorized signatories, each of whom shall be Responsible Officers
of the Trustee or its agent. A Certificate bearing the manual and facsimile
signatures of individuals who were the authorized signatories of the Trustee or
its agent at the time of issuance shall bind the Trustee, notwithstanding that
such individuals or any of them have ceased to hold such positions prior to the
delivery of such Certificate.

        (h) No Certificate shall be entitled to any benefit under this
Agreement, or be valid for any purpose, unless there appears on such Certificate
the manually executed countersignature of the

                                      -71-

<PAGE>

Trustee or its agent, and such countersignature upon any Certificate shall be
conclusive evidence, and the only evidence, that such Certificate has been duly
executed and delivered hereunder. All Certificates issued on the Closing Date
shall be dated the Closing Date. All Certificates issued thereafter shall be
dated the date of their countersignature.

        (i) The Closing Date is hereby designated as the "startup" day of each
REMIC within the meaning of Section 860G(a)(9) of the Code.

        (j) For federal income tax purposes, each REMIC shall have a tax year
that is a calendar year and shall report income on an accrual basis.

        (k) Upon execution of the federal income tax information returns
referred to in Section 9.12, the Trustee on behalf of the Trust shall cause each
REMIC to timely elect to be treated as a REMIC under Section 860D of the Code.
Any inconsistencies or ambiguities in this Agreement or in the administration of
any Trust established hereby shall be resolved in a manner that preserves the
validity of such elections.

        (l) The following legend shall be placed on the Residual Certificates
and Private Certificates, whether upon original issuance or upon issuance of any
other Certificate of any such Class in exchange therefor or upon transfer
thereof:

        THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON
        BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT
        WHICH IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY
        ACT OF 1974, AS AMENDED, AND/OR SECTION 4975 OF THE INTERNAL REVENUE
        CODE OF 1986, AS AMENDED [in the case of Private Certificates Only],
        UNLESS THE PROPOSED TRANSFER AND/OR HOLDING OF A CERTIFICATE AND THE
        SERVICING, MANAGEMENT AND/OR OPERATION OF THE TRUST AND ITS ASSETS: (I)
        WILL NOT RESULT IN ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER
        AN INDIVIDUAL OR CLASS PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT
        NOT LIMITED TO, PROHIBITED TRANSACTION EXEMPTION ("PTE") 84-14, PTE
        91-38, PTE 90-1, PTE 95-60 OR PTE 96-23 AND (II) WILL NOT GIVE RISE TO
        ANY ADDITIONAL FIDUCIARY OBLIGATIONS ON THE PART OF THE SELLER, THE
        SECURITIES ADMINISTRATOR, THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL
        BE DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE OR A
        GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A REPRESENTATION OR AN
        OPINION OF COUNSEL TO SUCH EFFECT BY OR ON BEHALF OF AN INSTITUTIONAL
        ACCREDITED INVESTOR.

          Section 5.02. REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES.
(a) The Trustee shall maintain at its Corporate Trust Office a Certificate
Register in which, subject to such reasonable

                                      -72-

<PAGE>

regulations as it may prescribe, the Trustee shall provide for the registration
of Certificates and of transfers and exchanges of Certificates as herein
provided.

        (b) Subject to Subsection 5.01(a) and, in the case of any Global
Certificate or Physical Certificate upon the satisfaction of the conditions set
forth below, upon surrender for registration of transfer of any Certificate at
any office or agency of the Trustee maintained for such purpose, the Trustee
shall sign, countersign and shall deliver, in the name of the designated
transferee or transferees, a new Certificate of a like Class and aggregate
Fractional Undivided Interest, but bearing a different number.

        (c) By acceptance of an Individual Certificate, whether upon original
issuance or subsequent transfer, each holder of such a Certificate acknowledges
the restrictions on the transfer of such Certificate set forth in the Securities
Legend and agrees that it will transfer such a Certificate only as provided
herein. In addition to the provisions of Subsection 5.02(h), the following
restrictions shall apply with respect to the transfer and registration of
transfer of an Individual Certificate to a transferee that takes delivery in the
form of an Individual Certificate:

               (i) The Trustee shall register the transfer of an Individual
        Certificate if the requested transfer is being made to a transferee who
        has provided the Trustee with a Rule 144A Certificate or comparable
        evidence as to its QIB status.

               (ii) The Trustee shall register the transfer of any Individual
        Certificate if (x) the transferor has advised the Trustee in writing
        that the Certificate is being transferred to an Institutional Accredited
        Investor; and (y) prior to the transfer the transferee furnishes to the
        Trustee an Investment Letter (and the Trustee shall be fully protected
        in so doing), provided that, if based upon an Opinion of Counsel to the
        effect that the delivery of (x) and (y) above are not sufficient to
        confirm that the proposed transfer is being made pursuant to an
        exemption from, or in a transaction not subject to, the registration
        requirements of the Securities Act and other applicable laws, the
        Trustee shall as a condition of the registration of any such transfer
        require the transferor to furnish such other certifications, legal
        opinions or other information prior to registering the transfer of an
        Individual Certificate as shall be set forth in such Opinion of Counsel.

        (d) Subject to Subsection 5.02(h), so long as a Global Certificate of
such Class is outstanding and is held by or on behalf of the Depository,
transfers of beneficial interests in such Global Certificate, or transfers by
holders of Individual Certificates of such Class to transferees that take
delivery in the form of beneficial interests in the Global Certificate, may be
made only in accordance with this Subsection 5.02(d) and in accordance with the
rules of the Depository:

               (i) In the case of a beneficial interest in the Global
        Certificate being transferred to an Institutional Accredited Investor,
        such transferee shall be required to take delivery in the form of an
        Individual Certificate or Certificates and the Trustee shall register
        such transfer only upon compliance with the provisions of Subsection
        5.02(c)(ii).

                                      -73-

<PAGE>

               (ii) In the case of a beneficial interest in a Class of Global
        Certificates being transferred to a transferee that takes delivery in
        the form of an Individual Certificate or Certificates of such Class,
        except as set forth in clause (i) above, the Trustee shall register such
        transfer only upon compliance with the provisions of Subsection
        5.02(c)(i).

               (iii) In the case of an Individual Certificate of a Class being
        transferred to a transferee that takes delivery in the form of a
        beneficial interest in a Global Certificate of such Class, the Trustee
        shall register such transfer if the transferee has provided the Trustee
        with a Rule 144A Certificate or comparable evidence as to its QIB
        status.

               (iv) No restrictions shall apply with respect to the transfer or
        registration of transfer of a beneficial interest in the Global
        Certificate of a Class to a transferee that takes delivery in the form
        of a beneficial interest in the Global Certificate of such Class;
        provided that each such transferee shall be deemed to have made such
        representations and warranties contained in the Rule 144A Certificate as
        are sufficient to establish that it is a QIB.

        (e) Subject to Subsection 5.02(h), an exchange of a beneficial interest
in a Global Certificate of a Class for an Individual Certificate or Certificates
of such Class, an exchange of an Individual Certificate or Certificates of a
Class for a beneficial interest in the Global Certificate of such Class and an
exchange of an Individual Certificate or Certificates of a Class for another
Individual Certificate or Certificates of such Class (in each case, whether or
not such exchange is made in anticipation of subsequent transfer, and, in the
case of the Global Certificate of such Class, so long as such Certificate is
outstanding and is held by or on behalf of the Depository) may be made only in
accordance with this Subsection 5.02(e) and in accordance with the rules of the
Depository:

               (i) A holder of a beneficial interest in a Global Certificate of
        a Class may at any time exchange such beneficial interest for an
        Individual Certificate or Certificates of such Class.

               (ii) A holder of an Individual Certificate or Certificates of a
        Class may exchange such Certificate or Certificates for a beneficial
        interest in the Global Certificate of such Class if such holder
        furnishes to the Trustee a Rule 144A Certificate or comparable evidence
        as to its QIB status.

               (iii) A holder of an Individual Certificate of a Class may
        exchange such Certificate for an equal aggregate principal amount of
        Individual Certificates of such Class in different authorized
        denominations without any certification.

        (f) (i) Upon acceptance for exchange or transfer of an Individual
Certificate of a Class for a beneficial interest in a Global Certificate of such
Class as provided herein, the Trustee shall cancel such Individual Certificate
and shall (or shall request the Depository to) endorse on the schedule affixed
to the applicable Global Certificate (or on a continuation of such schedule
affixed

                                      -74-

<PAGE>

to the Global Certificate and made a part thereof) or otherwise make in its
books and records an appropriate notation evidencing the date of such exchange
or transfer and an increase in the certificate balance of the Global Certificate
equal to the certificate balance of such Individual Certificate exchanged or
transferred therefor.

               (ii) Upon acceptance for exchange or transfer of a beneficial
        interest in a Global Certificate of a Class for an Individual
        Certificate of such Class as provided herein, the Trustee shall (or
        shall request the Depository to) endorse on the schedule affixed to such
        Global Certificate (or on a continuation of such schedule affixed to
        such Global Certificate and made a part thereof) or otherwise make in
        its books and records an appropriate notation evidencing the date of
        such exchange or transfer and a decrease in the certificate balance of
        such Global Certificate equal to the certificate balance of such
        Individual Certificate issued in exchange therefor or upon transfer
        thereof.

        (g) The Securities Legend shall be placed on any Individual Certificate
issued in exchange for or upon transfer of another Individual Certificate or of
a beneficial interest in a Global Certificate.

        (h) Subject to the restrictions on transfer and exchange set forth in
this Section 5.02, the holder of any Individual Certificate may transfer or
exchange the same in whole or in part (in an initial certificate balance equal
to the minimum authorized denomination set forth in Section 5.01(h) above or any
integral multiple of $1.00 in excess thereof) by surrendering such Certificate
at the Corporate Trust Office, or at the office of any transfer agent, together
with an executed instrument of assignment and transfer satisfactory in form and
substance to the Trustee in the case of transfer and a written request for
exchange in the case of exchange. The holder of a beneficial interest in a
Global Certificate may, subject to the rules and procedures of the Depository,
cause the Depository (or its nominee) to notify the Trustee in writing of a
request for transfer or exchange of such beneficial interest for an Individual
Certificate or Certificates. Following a proper request for transfer or
exchange, the Trustee shall, within five Business Days of such request made at
such Corporate Trust Office, sign, countersign and deliver at such Corporate
Trust Office, to the transferee (in the case of transfer) or holder (in the case
of exchange) or send by first class mail at the risk of the transferee (in the
case of transfer) or holder (in the case of exchange) to such address as the
transferee or holder, as applicable, may request, an Individual Certificate or
Certificates, as the case may require, for a like aggregate Fractional Undivided
Interest and in such authorized denomination or denominations as may be
requested. The presentation for transfer or exchange of any Individual
Certificate shall not be valid unless made at the Corporate Trust Office by the
registered holder in person, or by a duly authorized attorney-in-fact.

        (i) At the option of the Certificateholders, Certificates may be
exchanged for other Certificates of authorized denominations of a like Class and
aggregate Fractional Undivided Interest, upon surrender of the Certificates to
be exchanged at any such office or agency; PROVIDED, HOWEVER, that no
Certificate may be exchanged for new Certificates unless the original Fractional
Undivided Interest represented by each such new Certificate (i) is at least
equal to the minimum authorized

                                      -75-

<PAGE>

denomination or (ii) is acceptable to the Seller as indicated to the Trustee in
writing. Whenever any Certificates are so surrendered for exchange, the Trustee
shall sign and countersign and the Trustee shall deliver the Certificates which
the Certificateholder making the exchange is entitled to receive.

        (j) If the Trustee so requires, every Certificate presented or
surrendered for transfer or exchange shall be duly endorsed by, or be
accompanied by a written instrument of transfer, with a signature guarantee, in
form satisfactory to the Trustee, duly executed by the holder thereof or his or
her attorney duly authorized in writing.

        (k) No service charge shall be made for any transfer or exchange of
Certificates, but the Trustee may require payment of a sum sufficient to cover
any tax or governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.

        (l) The Trustee shall cancel all Certificates surrendered for transfer
or exchange but shall retain such Certificates in accordance with its standard
retention policy or for such further time as is required by the record retention
requirements of the Securities Exchange Act of 1934, as amended, and thereafter
may destroy such Certificates.

        Section 5.03. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES. (a) If
(i) any mutilated Certificate is surrendered to the Trustee, or the Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Certificate, and (ii) there is delivered to the Trustee such security or
indemnity as it may require to save it harmless, and (iii) the Trustee has not
received notice that such Certificate has been acquired by a third Person, the
Trustee shall sign, countersign and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
tenor and Fractional Undivided Interest but in each case bearing a different
number. The mutilated, destroyed, lost or stolen Certificate shall thereupon be
canceled of record by the Trustee and shall be of no further effect and evidence
no rights.

        (b) Upon the issuance of any new Certificate under this Section 5.03,
the Trustee may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.
Any duplicate Certificate issued pursuant to this Section 5.03 shall constitute
complete and indefeasible evidence of ownership in the Trust Fund, as if
originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

        Section 5.04. PERSONS DEEMED OWNERS. Prior to due presentation of a
Certificate for registration of transfer, the Seller, the Trustee and any agent
of the Seller or the Trustee may treat the Person in whose name any Certificate
is registered as the owner of such Certificate for the purpose of receiving
distributions pursuant to Section 6.01 and for all other purposes whatsoever.
Neither the Seller, the Trustee nor any agent of the Seller or the Trustee shall
be affected by notice to the contrary. No Certificate shall be deemed duly
presented for a transfer effective on any Record Date unless the Certificate to
be transferred is presented no later than the close of business on the third
Business Day preceding such Record Date.

                                      -76-

<PAGE>

        Section 5.05. TRANSFER RESTRICTIONS ON RESIDUAL CERTIFICATES. (a)
Residual Certificates, or interests therein, may not be transferred without the
prior express written consent of the Tax Matters Person and the Seller. As a
prerequisite to such consent, the proposed transferee must provide the Tax
Matters Person, the Seller and the Trustee with an affidavit that the proposed
transferee is a Permitted Transferee (and, unless the Tax Matters Person and the
Seller consent to the transfer to a person who is not a U.S. Person, an
affidavit that it is a U.S. Person) as provided in Subsection 5.05(b).

        (b) No transfer, sale or other disposition of a Residual Certificate
(including a beneficial interest therein) may be made unless, prior to the
transfer, sale or other disposition of a Residual Certificate, the proposed
transferee (including the initial purchasers thereof) delivers to the Tax
Matters Person, the Trustee and the Seller an affidavit in the form attached
hereto as Exhibit E stating, among other things, that as of the date of such
transfer (i) such transferee is a Permitted Transferee and that (ii) such
transferee is not acquiring such Residual Certificate for the account of any
person who is not a Permitted Transferee. The Tax Matters Person shall not
consent to a transfer of a Residual Certificate if it has actual knowledge that
any statement made in the affidavit issued pursuant to the preceding sentence is
not true. Notwithstanding any transfer, sale or other disposition of a Residual
Certificate to any Person who is not a Permitted Transferee, such transfer, sale
or other disposition shall be deemed to be of no legal force or effect
whatsoever and such Person shall not be deemed to be a Holder of a Residual
Certificate for any purpose hereunder, including, but not limited to, the
receipt of distributions thereon. If any purported transfer shall be in
violation of the provisions of this Subsection 5.05(b), then the prior Holder
thereof shall, upon discovery that the transfer of such Residual Certificate was
not in fact permitted by this Subsection 5.05(b), be restored to all rights as a
Holder thereof retroactive to the date of the purported transfer. None of the
Trustee, the Tax Matters Person or the Seller shall be under any liability to
any Person for any registration or transfer of a Residual Certificate that is
not permitted by this Subsection 5.05(b) or for making payments due on such
Residual Certificate to the purported Holder thereof or taking any other action
with respect to such purported Holder under the provisions of this Agreement so
long as the written affidavit referred to above was received with respect to
such transfer, and the Tax Matters Person, the Trustee and the Seller, as
applicable, had no knowledge that it was untrue. The prior Holder shall be
entitled to recover from any purported Holder of a Residual Certificate that was
in fact not a permitted transferee under this Subsection 5.05(b) at the time it
became a Holder all payments made on such Residual Certificate. Each Holder of a
Residual Certificate, by acceptance thereof, shall be deemed for all purposes to
have consented to the provisions of this Subsection 5.05(b) and to any amendment
of this Agreement deemed necessary (whether as a result of new legislation or
otherwise) by counsel of the Tax Matters Person or the Seller to ensure that the
Residual Certificates are not transferred to any Person who is not a Permitted
Transferee and that any transfer of such Residual Certificates will not cause
the imposition of a tax upon the Trust or cause any REMIC to fail to qualify as
a REMIC.

        (c) Unless the Tax Matters Person shall have consented in writing (which
consent may be withheld in the Tax Matters Person's sole discretion), the
Residual Certificates (including a

                                      -77-

<PAGE>

beneficial interest therein) may not be purchased by or transferred to any
person who is not a United States Person.

        (d) By accepting a Residual Certificate, the purchaser thereof agrees to
be a Tax Matters Person, and appoints the Securities Administrator to act as its
agent with respect to all matters concerning the tax obligations of the Trust.

        Section 5.06. RESTRICTIONS ON TRANSFERABILITY OF CERTIFICATES. (a) No
offer, sale, transfer or other disposition (including pledge) of any Certificate
shall be made by any Holder thereof unless registered under the Securities Act,
or an exemption from the registration requirements of the Securities Act and any
applicable state securities or "Blue Sky" laws is available and the prospective
transferee (other than the Seller) of such Certificate signs and delivers to the
Trustee an Investment Letter, if the transferee is an Institutional Accredited
Investor, in the form set forth as Exhibit F-l hereto, or a Rule 144A
Certificate, if the transferee is a QIB, in the form set forth as Exhibit F-2
hereto. Notwithstanding the provisions of the immediately preceding sentence, no
restrictions shall apply with respect to the transfer or registration of
transfer of a beneficial interest in any Certificate that is a Global
Certificate of a Class to a transferee that takes delivery in the form of a
beneficial interest in the Global Certificate of such Class provided that each
such transferee shall be deemed to have made such representations and warranties
contained in the Rule 144A Certificate as are sufficient to establish that it is
a QIB. In the case of a proposed transfer of any Certificate to a transferee
other than a QIB, the Trustee may require an Opinion of Counsel that such
transaction is exempt from the registration requirements of the Securities Act.
The cost of such opinion shall not be an expense of the Trustee or the Trust
Fund.

        (b)    The Private Certificates shall each bear a Securities Legend.

        Section 5.07. ERISA RESTRICTIONS. (a) Subject to the provisions of
subsection (b), no Residual Certificates or Private Certificates may be acquired
directly or indirectly by, or on behalf of, an employee benefit plan or other
retirement arrangement which is subject to Title I of ERISA and/or Section 4975
of the Code, unless the proposed transferee provides either (i) the Trustee, the
Master Servicer and the Securities Administrator with an Opinion of Counsel
satisfactory to the Trustee, the Master Servicer and the Securities
Administrator, which opinion will not be at the expense of the Trustee, the
Master Servicer or the Securities Administrator, that the purchase of such
Certificates by or on behalf of such Plan is permissible under applicable law,
will not constitute or result in a non-exempt prohibited transaction under ERISA
or Section 4975 of the Code and will not subject the Trustee, the Master
Servicer or the Securities Administrator to any obligation in addition to those
undertaken in the Agreement or (ii) in the case of the Class B-4, Class B-5 and
Class B-6 Certificates, a representation or certification to the Trustee (upon
which the Trustee is authorized to rely) to the effect that the proposed
transfer and/or holding of such a Certificate and the servicing, management and
operation of the Trust: (I) will not result in a prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code which is not covered under an
individual or class prohibited transaction exemption including but not limited
to Department of Labor Prohibited Transaction Exemption ("PTE") 84-14 (Class
Exemption for Plan Asset Transactions Determined

                                      -78-

<PAGE>

by Independent Qualified Professional Asset Managers); PTE 91-38 (Class
Exemption for Certain Transactions Involving Bank Collective Investment Funds);
PTE 90-1 (Class Exemption for Certain Transactions Involving Insurance Company
Pooled Separate Accounts), PTE 95-60 (Class Exemption for Certain Transactions
Involving Insurance Company General Accounts), and PTCE 96-23 (Class Exemption
for Plan Asset Transactions Determined by In-House Asset Managers and (II) will
not subject the Seller, the Securities Administrator, the Master Servicer or the
Trustee to any obligation in addition to those undertaken in the Agreement.

        (b) Any Person acquiring an interest in a Global Certificate which is a
Private Certificate, by acquisition of such Certificate, shall be deemed to have
represented to the Trustee that in the case of the Class B-4, Class B-5 and
Class B-6 Certificates, either: (i) it is not acquiring an interest in such
Certificate directly or indirectly by, or on behalf of, an employee benefit plan
or other retirement arrangement which is subject to Title I of ERISA and/or
Section 4975 of the Code, or (ii) the transfer and/or holding of an interest in
such Certificate to that Person and the subsequent servicing, management and/or
operation of the Trust and its assets: (I) will not result in any prohibited
transaction which is not covered under an individual or class prohibited
transaction exemption, including, but not limited to, PTE 84-14, PTE 91-38, PTE
90-1, PTE 95-60 or PTE 96- 23 and (II) will not subject the Seller, the
Securities Administrator, the Master Servicer or the Trustee to any obligation
in addition to those undertaken in the Agreement.

        (c) Neither the Trustee, the Master Servicer nor the Securities
Administrator will be required to monitor, determine or inquire as to compliance
with the transfer restrictions with respect to the Global Certificates. Any
attempted or purported transfer of any Certificate in violation of the
provisions of Subsections (a) or (b) above shall be void AB INITIO and such
Certificate shall be considered to have been held continuously by the prior
permitted Certificateholder. Any transferor of any Certificate in violation of
such provisions, shall indemnify and hold harmless the Trustee, the Securities
Administrator and the Master Servicer from and against any and all liabilities,
claims, costs or expenses incurred by the Trustee, the Securities Administrator
or the Master Servicer as a result of such attempted or purported transfer. The
Trustee shall have no liability for transfer of any such Global Certificates in
or through book-entry facilities of any Depository or between or among
Depository Participants or Certificate Owners made in violation of the transfer
restrictions set forth herein.

        Section 5.08. RULE 144A INFORMATION. For so long as any Certificates are
outstanding and are "restricted securities" within the meaning of Rule 144(a)(3)
of the Securities Act, (1) the Seller will provide or cause to be provided to
any holder of such Certificates and any prospective purchaser thereof designated
by such a holder, upon the request of such holder or prospective purchaser, the
information required to be provided to such holder or prospective purchaser by
Rule 144A(d)(4) under the Securities Act; and (2) the Seller shall update such
information from time to time in order to prevent such information from becoming
false and misleading and will take such other actions as are necessary to ensure
that the safe harbor exemption from the registration requirements of the
Securities Act under Rule 144A is and will be available for resales of such
Certificates conducted in accordance with Rule 144A.

                                      -79-

<PAGE>

                                   ARTICLE VI

                         Payments to Certificateholders

        Section 6.01. DISTRIBUTIONS ON THE CERTIFICATES. (a) Interest and
principal on the Certificates will be distributed monthly on each Distribution
Date, commencing in September 2001, in an aggregate amount equal to the sum of
the Available Funds for such Distribution Date.

          (i)  On each Distribution Date, the Available Funds shall be
               distributed as follows:

               (A) On each Distribution Date prior to the Cross-Over Date, the
               Group 1 Available Funds will be distributed in the following
               order of priority among the Group 1 Senior Certificates:

                       FIRST, to the Group 1 Senior Certificates, the Accrued
                       Certificate Interest on such Class for such Distribution
                       Date;

                       SECOND, to the Group 1 Senior Certificates, any Accrued
                       Certificate Interest thereon remaining undistributed from
                       previous Distribution Dates, to the extent of remaining
                       Group 1 Available Funds;

                       THIRD, sequentially, in the following order, to the Class
                       R-I, Class R-II and Class I-A Certificates, in reduction
                       of the Current Principal Amounts thereof, the Group 1
                       Senior Optimal Principal Amount for such Distribution
                       Date to the extent of remaining Group 1 Available Funds,
                       until the Current Principal Amounts thereof have been
                       reduced to zero;

               (B) On each Distribution Date prior to the Cross-Over Date, the
               Group 2 Available Funds will be distributed to the Group 2 Senior
               Certificates as follows:

                       FIRST, to the Class II-A Certificates, the Accrued
                       Certificate Interest on such Class for such Distribution
                       Date;

                       SECOND, to the Class II-A Certificates, any Accrued
                       Certificate Interest thereon remaining undistributed from
                       previous Distribution Dates, to the extent of remaining
                       Group 2 Available Funds;

                       THIRD, to the Class II-A Certificates, the Group 2
                       Optimal Principal Amount for such Distribution Date to
                       the extent of remaining Group 2 Available Funds, until
                       the Current Principal Amount of the Group 2 Senior
                       Certificates has been reduced to zero.

                                      -80-

<PAGE>

               (C) On each Distribution Date prior to the Cross-Over Date, the
               Group 3 Available Funds will be distributed to the Group 3 Senior
               Certificates as follows:

                       FIRST, to the Class III-A Certificates, the Accrued
                       Certificate Interest on such Class for such Distribution
                       Date;

                       SECOND, to the Class III-A Certificates, any Accrued
                       Certificate Interest thereon remaining undistributed from
                       previous Distribution Dates, to the extent of remaining
                       Group 3 Available Funds;

                       THIRD, to the Class III-A Certificates, in reduction of
                       the Current Principal Amount thereof, the Group 3 Optimal
                       Principal Amount for such Distribution Date to the extent
                       of remaining Group 3 Available Funds, until the Current
                       Principal Amount of the Class III-A Certificates has been
                       reduced to zero.

               (D) On each Distribution Date prior to the Cross-Over Date, the
               Group 4 Available Funds will be distributed to the Class IV-A
               Certificates as follows:

                       FIRST, to the Class IV-A Certificates, the Accrued
                       Certificate Interest on such Class for such Distribution
                       Date;

                       SECOND, to the Class IV-A Certificates, any Accrued
                       Certificate Interest thereon remaining undistributed from
                       previous Distribution Dates, to the extent of remaining
                       Group 4 Available Funds;

                       THIRD, to the Class IV-A Certificates, in reduction of
                       the Current Principal Amount thereof, the Group 4 Optimal
                       Principal Amount for such Distribution Date to the extent
                       of remaining Group 4 Available Funds, until the Current
                       Principal Amount of the Class IV-A Certificates has been
                       reduced to zero.

               (E) On each Distribution Date prior to the Cross-Over Date, the
               Group 5 Available Funds will be distributed to the Class V-A
               Certificates as follows:

                       FIRST, to the Class V-A Certificates, the Accrued
                       Certificate Interest on such Class for such Distribution
                       Date;

                       SECOND, to the Class V-A Certificates, any Accrued
                       Certificate Interest thereon remaining undistributed from
                       previous Distribution Dates, to the extent of remaining
                       Group 5 Available Funds;

                       THIRD, to the Class V-A Certificates, in reduction of the
                       Current Principal Amount thereof, the Group 5 Optimal
                       Principal Amount for such Distribution

                                      -81-

<PAGE>

                       Date to the extent of remaining Group 5 Available Funds,
                       until the Current Principal Amount of the Class V-A
                       Certificates has been reduced to zero.

               (F) Except as provided in (G) and (H) below, on each Distribution
               Date prior to the Cross-Over Date, an amount equal to any
               remaining Group 1, Group 2, Group 3, Group 4 and Group 5
               Available Funds after the distributions in (A), (B), (C), (D) and
               (E) above will be distributed sequentially, in the following
               order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class
               B-5 and Class B-6 Certificates, in each case up to an amount
               equal to and in the following order: (a) the Accrued Certificate
               Interest thereon for such Distribution Date, (b) any Accrued
               Certificate Interest thereon remaining undistributed from
               previous Distribution Dates and (c) such Class's Allocable Share
               for such Distribution Date, in each case, to the extent of
               remaining Available Funds.

               (G) On each Distribution Date prior to the Cross-Over Date, but
               after the reduction of the Current Principal Amount of the Group
               1, Group 2, Group 3, Group 4 or Group 5 Senior Certificates to
               zero, the remaining Class or Classes of Senior Certificates will
               be entitled to receive in reduction of their Current Principal
               Amounts, pro rata based upon their Current Principal Amounts
               immediately prior to such Distribution Date, in addition to any
               Principal Prepayments related to such remaining Senior
               Certificates' respective Loan Group allocated to such Group of
               Senior Certificates, 100% of the Principal Prepayments on any
               Mortgage Loan in the Loan Group relating to the fully repaid
               Class of Senior Certificates; PROVIDED, HOWEVER, that if the
               weighted average Subordinate Percentage equals or exceeds 4.00%
               on such Distribution Date, then the additional allocation of
               Principal Prepayments to the Senior Certificates in accordance
               with this clause (G) will not be made.

               (H) If on any Distribution Date on which the aggregate Current
               Principal Amount of any Class or Classes of Senior Certificates
               would be greater than the aggregate Scheduled Principal Balance
               of the Mortgage Loans in its related Loan Group and any
               Subordinate Certificates are still outstanding in each case after
               giving effect to distributions to be made on such Distribution
               Date, (i) 100% of amounts otherwise allocable to the Subordinate
               Certificates in respect of principal will be distributed to such
               Class or Classes of Senior Certificates in reduction of the
               Current Principal Amounts thereof, until the aggregate Current
               Principal Amount of such Class or Classes of Senior Certificates
               is an amount equal to the aggregate Scheduled Principal Balance
               of the Mortgage Loans in its related Loan Group, and (ii) the
               Accrued Certificate Interest otherwise allocable to the
               Subordinate Certificates on such Distribution Date will be
               reduced, if necessary, and distributed to such Class or Classes
               of Senior Certificates in an amount equal to the Accrued
               Certificate Interest for such Distribution Date on the excess of
               (x) the aggregate Current Principal Balance of such Class or
               Classes of Senior Certificates over (y) the aggregate

                                      -82-

<PAGE>

               Scheduled Principal Balance of the Mortgage Loans in the related
               Loan Group. Any such reduction in the Accrued Certificate
               Interest on the Subordinate Certificates will be allocated in
               reverse order of the Subordinate Certificates numerical
               designations, commencing with the Class B-6 Certificates.

        (b) If, after distributions have been made pursuant to priorities FIRST
and SECOND of clauses (a)(i)(A), (B), (C), (D) and (E) above on any Distribution
Date, the remaining Group 1, Group 2, Group 3, Group 4 or Group 5 Available
Funds are less than the sum of the Group 1, Group 2, Group 3, Group 4 or Group 5
Senior Optimal Principal Amounts such amount shall be reduced, and such
remaining funds will be distributed on the related Senior Certificates on the
basis of such reduced amount.

        (c) "Pro rata" distributions among Classes of Certificates will be made
in proportion to the then Current Principal Amount of such Classes.

        (d) On each Distribution Date, any Available Funds remaining after
payment of interest and principal to the Classes of Certificates entitled
thereto, as described above, will be distributed to the Class R-II Certificates;
provided that if on any Distribution Date there are any Group 1, Group 2, Group
3, Group 4 or Group 5 Available Funds remaining after payment of interest and
principal to a Class or Classes of Certificates entitled thereto, such amounts
will be distributed to the other Classes of Senior Certificates, PRO RATA, based
upon their Current Principal Amounts, until all amounts due to all Classes of
Senior Certificates have been paid in full, before any amounts are distributed
to the Class R-II Certificates.

        (e) No Accrued Certificate Interest will be payable with respect to any
Class of Certificates after the Distribution Date on which the Current Principal
Amount of such Certificate has been reduced to zero.

        (f) If on any Distribution Date the Available Funds for the Senior
Certificates in any Certificate Group is less than the Accrued Certificate
Interest on the related Senior Certificates for such Distribution Date prior to
reduction for Net Interest Shortfall and the interest portion of Realized
Losses, the shortfall will be allocated among the holders of each Class of
Senior Certificates in such Certificate Group in proportion to the respective
amounts of Accrued Certificate Interest that would have been allocated thereto
in the absence of such Net Interest Shortfall and/or Realized Losses for such
Distribution Date. In addition, the amount of any interest shortfalls will
constitute unpaid Accrued Certificate Interest and will be distributable to
holders of the Certificates of the related Classes entitled to such amounts on
subsequent Distribution Dates, to the extent of the applicable Available Funds
after current interest distributions as required herein. Any such amounts so
carried forward will not bear interest. Shortfalls in interest payments will not
be offset by a reduction in the servicing compensation of the Master Servicer or
otherwise, except to the extent of applicable Compensating Interest Payments.

                                      -83-

<PAGE>

        (g) The expenses and fees of the Trust shall be paid by each of the
REMICs, to the extent that such expenses relate to the assets of each of such
respective REMICs, and all other expenses and fees of the Trust shall be paid
pro rata by each of the REMICs.

        Section 6.02. ALLOCATION OF LOSSES. (a) On or prior to each
Determination Date, the Master Servicer shall determine the amount of any
Realized Loss in respect of each Mortgage Loan that occurred during the
immediately preceding calendar month.

               (b) With respect to any Certificates on any Distribution Date,
        the principal portion of each Realized Loss on a Mortgage Loan shall be
        allocated as follows:

                       first, to the Class B-6 Certificates until the Current
               Principal Amount thereof has been reduced to zero;

                       second, to the Class B-5 Certificates until the Current
               Principal Amount thereof has been reduced to zero;

                       third, to the Class B-4 Certificates until the Current
               Principal Amount thereof has been reduced to zero;

                       fourth, to the Class B-3 Certificates until the Current
               Principal Amount thereof has been reduced to zero;

                       fifth, to the Class B-2 Certificates until the Current
               Principal Amount thereof has been reduced to zero;

                       sixth, to the Class B-1 Certificates until the Current
               Principal Amount thereof has been reduced to zero;

                       seventh, if such loss is on a Group 1, Group 2, Group 3,
               Group 4 or Group 5 Mortgage Loan, to the Group 1, Group 2, Group
               3, Group 4 and Group 5 Senior Certificates, respectively.

                       eighth, to the Senior Certificates, on a PRO RATA basis.

        (c) Notwithstanding the foregoing clause (b), no such allocation of any
Realized Loss shall be made on a Distribution Date to any Class of Certificates
to the extent that such allocation would result in the reduction of the
aggregate Current Principal Amounts of all the Certificates as of such
Distribution Date, after giving effect to all distributions and prior
allocations of Realized Losses on such date, to an amount less than the
aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the
first day of the month of such Distribution Date (such limitation, the "Loss
Allocation Limitation").

                                      -84-

<PAGE>

        (d) Any Realized Losses allocated to a Class of Certificates shall be
allocated among the Certificates of such Class in proportion to their respective
Current Principal Amounts. Any allocation of Realized Losses shall be
accomplished by reducing the Current Principal Amount of the related
Certificates on the related Distribution Date.

        (e) Realized Losses shall be allocated on the Distribution Date in the
month following the month in which such loss was incurred and, in the case of
the principal portion thereof, after giving effect to distributions made on such
Distribution Date.

        (f) On each Distribution Date, the Securities Administrator shall
determine and notify the Trustee of the Subordinate Certificate Writedown
Amount. Any such Subordinate Certificate Writedown Amount shall effect a
corresponding reduction in the Current Principal Amount of (i) if prior to the
Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates,
in the reverse order of their numerical Class designations and (ii) from and
after the Cross-Over Date, the Senior Certificates which reduction shall occur
on such Distribution Date after giving effect to distributions made on such
Distribution Date.

        (g) Any Net Interest Shortfall will be allocated among the Classes of
Certificates in proportion to the respective amounts of Accrued Certificate
Interest that would have been allocated thereto in the absence of such Net
Interest Shortfall for such Distribution Date. The interest portion of any
Realized Losses with respect to the Mortgage Loans occurring on or prior to the
Cross-Over Date will not be allocated among any Certificates, but will reduce
the amount of Available Funds on the related Distribution Date. As a result of
the subordination of the Subordinate Certificates in right of distribution, such
Realized Losses will be borne by the Subordinate Certificates in inverse order
of their numerical Class designations. Following the Cross-Over Date, the
interest portion of Realized Losses on the Mortgage Loans in any Loan Group will
be allocated to the related Senior Certificates.

        Section 6.03. PAYMENTS. (a) On each Distribution Date, other than the
final Distribution Date, the Trustee shall distribute to each Certificateholder
of record on the directly preceding Record Date the Certificateholder's PRO RATA
share of its Class (based on the aggregate Fractional Undivided Interest
represented by such Holder's Certificates) of all amounts required to be
distributed on such Distribution Date to such Class, based on information
provided to it by the Securities Administrator no later than three (3) Business
Days prior to the related Distribution Date which information will in turn be
based on information provided to the Securities Administrator by the Master
Servicer. The Securities Administrator shall calculate the amount to be
distributed to each Class and, based on such amounts, the Securities
Administrator shall determine the amount to be distributed to each
Certificateholder. All of the Securities Administrator's calculations of
payments shall be based solely on information provided to the Securities
Administrator by the Master Servicer. The Securities Administrator shall not be
required to confirm, verify or recompute any such information but shall be
entitled, along with the Trustee, to rely conclusively on such information.

                                      -85-

<PAGE>

        (b) Payment of the above amounts to each Certificateholder shall be made
(i) by check mailed to each Certificateholder entitled thereto at the address
appearing in the Certificate Register or (ii) upon receipt by the Trustee on or
before the fifth Business Day preceding the Record Date of written instructions
from a Certificateholder by wire transfer to a United States dollar account
maintained by the payee at any United States depository institution with
appropriate facilities for receiving such a wire transfer; PROVIDED, HOWEVER,
that the final payment in respect of each Class of Certificates will be made
only upon presentation and surrender of such respective Certificates at the
office or agency of the Trustee specified in the notice to Certificateholders of
such final payment.

        Section 6.04. STATEMENTS TO CERTIFICATEHOLDERS. (a) Concurrently with
each distribution to Certificateholders, the Securities Administrator shall make
available to the parties hereto and each Certificateholder via the Securities
Administrator's internet website as set forth below, the following information,
expressed with respect to clauses (i) through (vii) in the aggregate and as a
Fractional Undivided Interest representing an initial Current Principal Amount
of $1,000, or in the case of the Residual Certificates, an initial Current
Principal Amount of $50:

               (i) the Current Principal Amount of each Class of Certificates
        immediately prior to such Distribution Date;

               (ii) the amount of the distribution allocable to principal on
        each applicable Class of Certificates;

               (iii) the aggregate amount of interest accrued at the related
        Pass-Through Rate with respect to each Class during the related Interest
        Accrual Period;

               (iv) the Net Interest Shortfall and any other adjustments to
        interest at the related Pass-Through Rate necessary to account for any
        difference between interest accrued and aggregate interest distributed
        with respect to each Class of Certificates;

               (v) the amount of the distribution allocable to interest on each
        Class of Certificates;

               (vi) the Pass-Through Rates for each Class of Certificates with
        respect to such Distribution Date;

               (vii) the Current Principal Amount of each Class of Certificates
        after such Distribution Date;

               (viii) the amount of any Monthly Advances, Compensating Interest
        Payments and outstanding unreimbursed advances by the Master Servicer or
        the Servicer included in such distribution separately stated for each
        Loan Group;

                                      -86-

<PAGE>

               (ix) the aggregate amount of any Realized Losses (listed
        separately for each category of Realized Loss and for each Loan Group)
        during the related Prepayment Period and cumulatively since the Cut-off
        Date and the amount and source (separately identified) of any
        distribution in respect thereof included in such distribution;

               (x) with respect to each Mortgage Loan which incurred a Realized
        Loss during the related Prepayment Period, (i) the loan number, (ii) the
        Scheduled Principal Balance of such Mortgage Loan as of the Cut-off
        Date, (ii) the Scheduled Principal Balance of such Mortgage Loan as of
        the beginning of the related Due Period, (iii) the Net Liquidation
        Proceeds with respect to such Mortgage Loan, (iv) the amount, if any,
        included in Net Liquidation Proceeds representing a payment under the
        Supplemental PMI Policy and (v) the amount of the Realized Loss with
        respect to such Mortgage Loan;

               (xi) with respect to each Loan Group, the amount of Scheduled
        Principal and Principal Prepayments, (including but separately
        identifying the principal amount of principal prepayments, Insurance
        Proceeds, the purchase price in connection with the purchase of Mortgage
        Loans, cash deposits in connection with substitutions of Mortgage Loans
        and Net Liquidation Proceeds) and the number and principal balance of
        Mortgage Loans purchased or substituted for during the relevant period
        and cumulatively since the Cut-off Date;

               (xii) the number of Mortgage Loans (excluding REO Property) in
        each Loan Group remaining in the Trust Fund as of the end of the related
        Prepayment Period;

               (xiii) information for each Loan Group and in the aggregate
        regarding any Mortgage Loan delinquencies as of the end of the related
        Prepayment Period, including the aggregate number, aggregate Outstanding
        Principal Balance of Mortgage Loans (a) delinquent 30 to 59 days on a
        contractual basis, (b) delinquent 60 to 89 days on a contractual basis,
        and (c) delinquent 90 or more days on a contractual basis, in each case
        as of the close of business on the last Business Day of the immediately
        preceding month;

               (xiv) for each Loan Group, the number of Mortgage Loans in the
        foreclosure process as of the end of the related Due Period and the
        aggregate Outstanding Principal Balance of such Mortgage Loans;

               (xv) for each Loan Group, the number and aggregate Outstanding
        Principal Balance of all Mortgage Loans as to which the Mortgaged
        Property was REO Property as of the end of the related Due Period;

               (xvi) the book value (the sum of (A) the Outstanding Principal
        Balance of the Mortgage Loan, (B) accrued interest through the date of
        foreclosure and (C) foreclosure expenses) of any REO Property in each
        Loan Group; PROVIDED THAT, in the event that such information is not
        available to the Securities Administrator on the Distribution Date, such
        information shall be furnished promptly after it becomes available;

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<PAGE>

               (xvii) the amount of Realized Losses allocated to each Class of
        Certificates since the prior Distribution Date and in the aggregate for
        all prior Distribution Dates;

               (xviii) the Average Loss Severity for the prior calendar month
        for each Loan Group;

               (xix) the then applicable Group 1, Class 2, Class 3, Group 4 and
        Group 5 Senior Percentage, Group 1, Class 2, Class 3, Group 4 and Group
        5 Senior Prepayment Percentage, Group 1, Class 2, Class 3, Group 4 and
        Group 5 Subordinate Percentage and Group 1, Class 2, Class 3, Group 4
        and Group 5 Subordinate Prepayment Percentage;

               (xx) the Stop-Loss Amount as of the Cut-off Date, the Stop-Loss
        Amount as of the end of the related Prepayment Period and reduction in
        the Stop-Loss Amount during the related Prepayment Period; and

               (xxi) with respect to the related Prepayment Period, (i) the
        number of Mortgage Loans for which a payment was made by the
        Supplemental PMI Insurer under the Supplemental PMI Policy and the
        aggregate amount of any such payments, (ii) the number of Mortgage Loans
        for which a claim has been presented to the Supplemental PMI Insurer
        under the Supplemental PMI Policy and the aggregate amount of any such
        outstanding claims, and (iii) the number of Mortgage Loans for which a
        claim was presented to the Supplemental PMI Insurer under the
        Supplemental PMI Policy which claim was denied by the Supplemental PMI
        Insurer and the aggregate amount of any such denied claims.

        The information set forth above shall be calculated or reported, as the
case may be, by the Securities Administrator, based solely on, and to the extent
of, information provided to the Securities Administrator by the Master Servicer.
The Securities Administrator may conclusively rely on such information and shall
not be required to confirm, verify or recalculate any such information.

        The Securities Administrator may make available each month, to any
interested party , the monthly statement to Certificateholders via the
Securities Administrator's website initially located at "www.ctslink.com."
Assistance in using the website can be obtained by calling the Securities
Administrator's customer service desk at (301) 815-6600. Parties that are unable
to use the above distribution option are entitled to have a paper copy mailed to
them via first class mail by calling the customer service desk and indicating
such. The Securities Administrator shall have the right to change the way such
reports are distributed in order to make such distribution more convenient
and/or more accessible to the parties, and the Securities Administrator shall
provide timely and adequate notification to all parties regarding any such
change.

        (b) By April 30 of each year beginning in 2002, the Trustee will furnish
a report to each Holder of the Certificates of record at any time during the
prior calendar year as to the aggregate of amounts reported pursuant to
subclauses (a)(ii) and (a)(v) above with respect to the Certificates, plus
information given to it by the Securities Administrator with respect to the
amount of servicing

                                      -88-

<PAGE>

compensation and such other customary information as the Securities
Administrator may determine and advises the Trustee to be necessary or to be
required by the Internal Revenue Service or by a federal or state law or rules
or regulations to enable such Holders to prepare their tax returns for such
calendar year. Such obligations shall be deemed to have been satisfied to the
extent that substantially comparable information shall be provided by the
Securities Administrator or the Trustee pursuant to the requirements of the
Code.

        Section 6.05. MONTHLY ADVANCES. If the Scheduled Payment on a Mortgage
Loan that was due on a related Due Date and is delinquent other than as a result
of application of the Relief Act and for which the related Servicer was required
to make an advance pursuant to the related Servicing Agreement exceeds the
amount deposited in the Master Servicer Collection Account which will be used
for an advance with respect to such Mortgage Loan, the Master Servicer will
deposit in the Master Servicer Collection Account not later than the
Distribution Account Deposit Date immediately preceding the related Distribution
Date an amount equal to such deficiency, net of the Master Servicing Fee and
Servicing Fee for such Mortgage Loan except to the extent the Master Servicer
determines any such advance to be nonrecoverable from Liquidation Proceeds,
Insurance Proceeds or future payments on the Mortgage Loan for which such
Monthly Advance was made. Subject to the foregoing, the Master Servicer shall
continue to make such advances through the date that the related Servicer is
required to do so under its Servicing Agreement. If applicable, on the
Distribution Account Deposit Date, the Master Servicer shall present an
Officer's Certificate to the Trustee (i) stating that the Master Servicer elects
not to make a Monthly Advance in a stated amount and (ii) detailing the reason
it deems the advance to be nonrecoverable.

        Section 6.06. SURETY BOND. (a) If a Required Surety Payment is payable
pursuant to the Surety Bond with respect to any Additional Collateral Mortgage
Loans, the related Servicer shall so notify the Trustee as soon as reasonably
practicable and the Trustee shall promptly complete the notice in the form of
Attachment 1 to the Surety Bond and shall promptly submit such notice to the
surety as a claim for a required surety. The related Servicer shall upon request
assist the Trustee in completing such notice and shall provide any information
requested by the Trustee in connection therewith.

        Upon receipt of a Required Surety Payment from the Surety on behalf of
the Certificateholders, the Trustee shall deposit such Required Surety Payment
in the Master Servicer Collection Account and shall distribute such Required
Surety Payment, or the proceeds thereof, in accordance with the provisions of
Section 6.01.

        The Trustee shall (i) receive as attorney-in-fact of each Holder of a
Certificate any Required Surety Payment from the surety and (ii) disburse the
same to the Holders of such Certificates as set forth in Section 6.01.

        Section 6.07. COMPENSATING INTEREST PAYMENTS. The Master Servicer shall
deposit in the Master Servicer Collection Account not later than each
Distribution Account Deposit Date an amount equal to the lesser of (i) the
aggregate amounts required to be paid by the Servicers under

                                      -89-

<PAGE>

the Servicing Agreements with respect to subclause (b) of the definition of
Interest Shortfall with respect to the Mortgage Loans for the related
Distribution Date, and not so paid by the related Servicers and (ii) the Master
Servicing Compensation for such Distribution Date (such amount, the
"Compensating Interest Payment"). The Master Servicer shall not be entitled to
any reimbursement of any Compensating Interest Payment.

                                      -90-

<PAGE>

                                   ARTICLE VII

                               The Master Servicer

        Section 7.01. LIABILITIES OF THE MASTER SERVICER. The Master Servicer
shall be liable in accordance herewith only to the extent of the obligations
specifically imposed upon and undertaken by it herein.

        Section 7.02.  MERGER OR CONSOLIDATION OF THE MASTER SERVICER.

        (a) The Master Servicer will keep in full force and effect its
existence, rights and franchises as a corporation under the laws of the state of
its incorporation, and will obtain and preserve its qualification to do business
as a foreign corporation in each jurisdiction in which such qualification is or
shall be necessary to protect the validity and enforceability of this Agreement,
the Certificates or any of the Mortgage Loans and to perform its duties under
this Agreement.

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

        Section 7.03. INDEMNIFICATION OF THE TRUSTEE, THE MASTER SERVICER AND
THE SECURITIES ADMINISTRATOR. (a) The Master Servicer agrees to indemnify the
Indemnified Persons for, and to hold them harmless against, any loss, liability
or expense (including reasonable legal fees and disbursements of counsel)
incurred on their part that may be sustained in connection with, arising out of,
or relating to, any claim or legal action (including any pending or threatened
claim or legal action) relating to this Agreement or the Certificates (i)
related to the Master Servicer's failure to perform its duties in compliance
with this Agreement (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement) or (ii) incurred by reason of
the Master Servicer's willful misfeasance, bad faith or gross negligence in the
performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder, provided, in each case, that with respect to
any such claim or legal action (or pending or threatened claim or legal action),
the Trustee shall have given the Master Servicer and the Seller written notice
thereof promptly after the Trustee shall have with respect to such claim or
legal action knowledge thereof. This indemnity shall survive the resignation or
removal of the Trustee, Master Servicer or the Securities Administrator and the
termination of this Agreement.

        (b) Except as otherwise set forth herein, the Seller will indemnify any
Indemnified Person for any loss, liability or expense of any Indemnified Person
not otherwise referred to in Subsection (a) above.

                                      -91-

<PAGE>

        Section 7.04. LIMITATIONS ON LIABILITY OF THE MASTER SERVICER AND
OTHERS. Subject to the obligation of the Master Servicer to indemnify the
Indemnified Persons pursuant to Section 7.03:

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

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

        (c) The Master Servicer, the Custodian and any director, officer,
employee or agent of the Master Servicer or the Custodian shall be indemnified
by the Trust and held harmless thereby against any loss, liability or expense
(including reasonable legal fees and disbursements of counsel) incurred on their
part that may be sustained in connection with, arising out of, or related to,
any claim or legal action (including any pending or threatened claim or legal
action) relating to this Agreement, the Certificates or any Servicing Agreement
(except to the extent that the Master Servicer is indemnified by the Servicer
thereunder), other than (i) any such loss, liability or expense related to the
Master Servicer's failure to perform its duties in compliance with this
Agreement (except as any such loss, liability or expense shall be otherwise
reimbursable pursuant to this Agreement), or to the Custodian's failure to
perform its duties under the Custodial Agreement, respectively, or (ii) any such
loss, liability or expense incurred by reason of the Master Servicer's or the
Custodian's willful misfeasance, bad faith or gross negligence in the
performance of duties hereunder or under the Custodial Agreement, as applicable,
or by reason of reckless disregard of obligations and duties hereunder or under
the Custodial Agreement, as applicable.

        (d) The Master Servicer shall not be under any obligation to appear in,
prosecute or defend any legal action that is not incidental to its duties under
this Agreement and that in its opinion may involve it in any expense or
liability; provided, however, the Master Servicer may in its discretion, with
the consent of the Trustee (which consent shall not be unreasonably withheld),
undertake any such action which it may deem necessary or desirable with respect
to this Agreement and the rights and duties of the parties hereto and the
interests of the Certificateholders hereunder. In such event, the legal expenses
and costs of such action and any liability resulting therefrom shall be
expenses, costs and liabilities of the Trust Fund, and the Master Servicer shall
be entitled to be reimbursed therefor out of the Master Servicer Collection
Account as provided by Section 4.03. Nothing in this Subsection 7.04(d) shall
affect the Master Servicer's obligation to supervise, or to take such actions as
are necessary to ensure, the servicing and administration of the Mortgage Loans
pursuant to Subsection 3.01(a).

                                      -92-

<PAGE>

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

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

        Section 7.05. MASTER SERVICER NOT TO RESIGN. Except as provided in
Section 7.07, the Master Servicer shall not resign from the obligations and
duties hereby imposed on it except upon a determination that any such duties
hereunder are no longer permissible under applicable law and such
impermissibility cannot be cured. Any such determination permitting the
resignation of the Master Servicer shall be evidenced by an Opinion of
Independent Counsel to such effect delivered to the Trustee. No such resignation
by the Master Servicer shall become effective until EMC or the Trustee or a
successor to the Master Servicer reasonably satisfactory to the Trustee shall
have assumed the responsibilities and obligations of the Master Servicer in
accordance with Section 8.02 hereof. The Trustee shall notify the Rating
Agencies of the resignation of the Master Servicer.

        Section 7.06. SUCCESSOR MASTER SERVICER. In connection with the
appointment of any successor Master Servicer or the assumption of the duties of
the Master Servicer, EMC or the Trustee may make such arrangements for the
compensation of such successor master servicer out of payments on the Mortgage
Loans as EMC or the Trustee and such successor master servicer shall agree. If
the successor master servicer does not agree that such market value is a fair
price, such successor master servicer shall obtain two quotations of market
value from third parties actively engaged in the servicing of single-family
mortgage loans.

        Section 7.07. SALE AND ASSIGNMENT OF MASTER SERVICING. The Master
Servicer may sell and assign its rights and delegate its duties and obligations
in its entirety as Master Servicer under this Agreement and EMC may terminate
the Master Servicer without cause and select a new Master Servicer; provided,
however, that: (i) the purchaser or transferee accepting such assignment and
delegation (a) shall be a Person which shall be qualified to service mortgage
loans for Fannie Mae or Freddie Mac; (b) shall have a net worth of not less than
$10,000,000 (unless otherwise approved by each Rating Agency pursuant to clause
(ii) below); (c) shall be reasonably satisfactory to the Trustee (as evidenced
in a writing signed by the Trustee); and (d) shall execute and deliver to the
Trustee an agreement, in form and substance reasonably satisfactory to the
Trustee, which contains an assumption by such Person of the due and punctual
performance and observance of each covenant and condition to be performed or
observed by it as master servicer under this Agreement, any custodial agreement
from and after the effective date of such agreement; (ii) each Rating Agency
shall be given prior written notice of the identity of the proposed successor to
the Master Servicer and each Rating Agency's rating of the Certificates in
effect immediately prior to such assignment, sale and delegation will not be
downgraded, qualified or withdrawn as a result of such assignment, sale and
delegation, as evidenced by a letter to such effect delivered to the Master
Servicer and the

                                      -93-

<PAGE>

Trustee; (iii) the Master Servicer assigning and selling the master servicing
shall deliver to the Trustee an Officer's Certificate and an Opinion of
Independent Counsel, each stating that all conditions precedent to such action
under this Agreement have been completed and such action is permitted by and
complies with the terms of this Agreement; and (iv) in the event the Master
Servicer is terminated without cause by EMC, EMC shall pay the terminated Master
Servicer a termination fee equal to 0.25% of the aggregate Scheduled Principal
Balance of the Mortgage Loans at the time the master servicing of the Mortgage
Loans is transferred to the successor Master Servicer. No such assignment or
delegation shall affect any liability of the Master Servicer arising prior to
the effective date thereof.

                                      -94-

<PAGE>

                                  ARTICLE VIII

                                     Default

        Section 8.01. EVENTS OF DEFAULT. "Event of Default," wherever used
herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body) and
only with respect to the defaulting Master Servicer:

               (i) The Master Servicer fails to cause to be deposited in the
        Distribution Account any amount so required to be deposited pursuant to
        this Agreement, and such failure continues unremedied for a period of
        one Business Day after the date upon which written notice of such
        failure, requiring the same to be remedied, shall have been given to the
        Master Servicer; or

               (ii) The Master Servicer fails to observe or perform in any
        material respect any other material covenants and agreements set forth
        in this Agreement to be performed by it, which covenants and agreements
        materially affect the rights of Certificateholders, and such failure
        continues unremedied for a period of 60 days after the date on which
        written notice of such failure, properly requiring the same to be
        remedied, shall have been given to the Master Servicer by the Trustee or
        to the Master Servicer and the Trustee by the Holders of Certificates
        evidencing Fractional Undivided Interests aggregating not less than 25%
        of the Trust Fund; or

               (iii) There is entered against the Master Servicer a decree or
        order by a court or agency or supervisory authority having jurisdiction
        in the premises for the appointment of a conservator, receiver or
        liquidator in any insolvency, readjustment of debt, marshaling of assets
        and liabilities or similar proceedings, or for the winding up or
        liquidation of its affairs, and the continuance of any such decree or
        order is unstayed and in effect for a period of 60 consecutive days, or
        an involuntary case is commenced against the Master Servicer under any
        applicable insolvency or reorganization statute and the petition is not
        dismissed within 60 days after the commencement of the case; or

               (iv) The Master Servicer consents to the appointment of a
        conservator or receiver or liquidator in any insolvency, readjustment of
        debt, marshaling of assets and liabilities or similar proceedings of or
        relating to the Master Servicer or substantially all of its property; or
        the Master Servicer admits in writing its inability to pay its debts
        generally as they become due, files a petition to take advantage of any
        applicable insolvency or reorganization statute, makes an assignment for
        the benefit of its creditors, or voluntarily suspends payment of its
        obligations; or

                                      -95-

<PAGE>

               (v) The Master Servicer assigns or delegates its duties or rights
        under this Agreement in contravention of the provisions permitting such
        assignment or delegation under Sections 7.05 or 7.07.

In each and every such case, so long as such Event of Default with respect to
the Master Servicer shall not have been remedied, either the Trustee or the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% of the principal of the Trust Fund, by notice in writing to
the Master Servicer (and to the Trustee if given by such Certificateholders),
with a copy to the Rating Agencies, and with the consent of EMC, may terminate
all of the rights and obligations (but not the liabilities) of the Master
Servicer under this Agreement and in and to the Mortgage Loans and/or the REO
Property serviced by the Master Servicer and the proceeds thereof. Upon the
receipt by the Master Servicer of the written notice, all authority and power of
the Master Servicer under this Agreement, whether with respect to the
Certificates, the Mortgage Loans, REO Property or under any other related
agreements (but only to the extent that such other agreements relate to the
Mortgage Loans or related REO Property) shall, subject to Section 8.02,
automatically and without further action pass to and be vested in the Trustee
pursuant to this Section 8.01; and, without limitation, the Trustee is hereby
authorized and empowered to execute and deliver, on behalf of the Master
Servicer as attorney-in-fact or otherwise, any and all documents and other
instruments and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the Mortgage Loans and
related documents, or otherwise. The Master Servicer agrees to cooperate with
the Trustee in effecting the termination of the Master Servicer's rights and
obligations hereunder, including, without limitation, the transfer to the
Trustee of (i) the property and amounts which are then or should be part of the
Trust or which thereafter become part of the Trust; and (ii) originals or copies
of all documents of the Master Servicer reasonably requested by the Trustee to
enable it to assume the Master Servicer's duties thereunder. In addition to any
other amounts which are then, or, notwithstanding the termination of its
activities under this Agreement, may become payable to the Master Servicer under
this Agreement, the Master Servicer shall be entitled to receive, out of any
amount received on account of a Mortgage Loan or related REO Property, that
portion of such payments which it would have received as reimbursement under
this Agreement if notice of termination had not been given. The termination of
the rights and obligations of the Master Servicer shall not affect any
obligations incurred by the Master Servicer prior to such termination.

        Section 8.02. TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR. (a) Upon the
receipt by the Master Servicer of a notice of termination pursuant to Section
8.01 or an Opinion of Independent Counsel pursuant to Section 7.05 to the effect
that the Master Servicer is legally unable to act or to delegate its duties to a
Person which is legally able to act, the Trustee shall automatically become the
successor in all respects to the Master Servicer in its capacity under this
Agreement and the transactions set forth or provided for herein and shall
thereafter be subject to all the responsibilities, duties, liabilities and
limitations on liabilities relating thereto placed on the Master Servicer by the
terms and provisions hereof; PROVIDED, HOWEVER, that EMC shall have the right to
either (a) immediately assume the duties of the Master Servicer or (b) select a
successor Master Servicer; PROVIDED FURTHER, HOWEVER, that the Trustee shall
have no obligation whatsoever with respect to any

                                      -96-

<PAGE>

liability (other than advances deemed recoverable and not previously made)
incurred by the Master Servicer at or prior to the time of termination. As
compensation therefor, but subject to Section 7.06, the Trustee shall be
entitled to all funds relating to the Mortgage Loans which the Master Servicer
would have been entitled to retain if the Master Servicer had continued to act
hereunder, except for those amounts due the Master Servicer as reimbursement
permitted under this Agreement for advances previously made or expenses
previously incurred. Notwithstanding the above, the Trustee may, if it shall be
unwilling so to act, or shall, if it is legally unable so to act, appoint or
petition a court of competent jurisdiction to appoint, any established housing
and home finance institution which is a Fannie Mae- or Freddie Mac-approved
servicer, and with respect to a successor to the Master Servicer only, having a
net worth of not less than $10,000,000, as the successor to the Master Servicer
hereunder in the assumption of all or any part of the responsibilities, duties
or liabilities of the Master Servicer hereunder; provided, that the Trustee
shall obtain a letter from each Rating Agency that the ratings, if any, on each
of the Certificates will not be lowered as a result of the selection of the
successor to the Master Servicer. Pending appointment of a successor to the
Master Servicer hereunder, the Trustee shall act in such capacity as hereinabove
provided. In connection with such appointment and assumption, the Trustee may
make such arrangements for the compensation of such successor out of payments on
the Mortgage Loans as it and such successor shall agree; PROVIDED, HOWEVER, that
the provisions of Section 7.06 shall apply, no such compensation shall be in
excess of that permitted the Trustee under this Subsection 8.02(a), and that
such successor shall undertake and assume the obligations of the Trustee to pay
compensation to any third Person acting as an agent or independent contractor in
the performance of master servicing responsibilities hereunder. The Trustee and
such successor shall take such action, consistent with this Agreement, as shall
be necessary to effectuate any such succession.

        (b) If the Trustee shall succeed to any duties of the Master Servicer
respecting the Mortgage Loans as provided herein, it shall do so in a separate
capacity and not in its capacity as Trustee and, accordingly, the provisions of
Article IX shall be inapplicable to the Trustee in its duties as the successor
to the Master Servicer in the servicing of the Mortgage Loans (although such
provisions shall continue to apply to the Trustee in its capacity as Trustee);
the provisions of Article VII, however, shall apply to it in its capacity as
successor master servicer.

        Section 8.03. NOTIFICATION TO CERTIFICATEHOLDERS. Upon any termination
or appointment of a successor to the Master Servicer, the Trustee shall give
prompt written notice thereof to Certificateholders at their respective
addresses appearing in the Certificate Register and to the Rating Agencies.

        Section 8.04. WAIVER OF DEFAULTS. The Trustee shall transmit by mail to
all Certificateholders, within 60 days after the occurrence of any Event of
Default known to the Trustee, unless such Event of Default shall have been
cured, notice of each such Event of Default hereunder known to the Trustee. The
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% of the Trust Fund may, on behalf of all Certificateholders,
waive any default by the Master Servicer in the performance of its obligations
hereunder and the consequences thereof, except a default in the making of or the
causing to be made any required distribution on the

                                      -97-

<PAGE>

Certificates. Upon any such waiver of a past default, such default shall be
deemed to cease to exist, and any Event of Default arising therefrom shall be
deemed to have been timely remedied for every purpose of this Agreement. No such
waiver shall extend to any subsequent or other default or impair any right
consequent thereon except to the extent expressly so waived. The Trustee shall
give notice of any such waiver to the Rating Agencies.

        Section 8.05. LIST OF CERTIFICATEHOLDERS. Upon written request of three
or more Certificateholders of record, for purposes of communicating with other
Certificateholders with respect to their rights under this Agreement, the
Trustee will afford such Certificateholders access during business hours to the
most recent list of Certificateholders held by the Trustee.

                                      -98-

<PAGE>

                                   ARTICLE IX

             Concerning the Trustee and the Securities Administrator

        Section 9.01. DUTIES OF TRUSTEE. (a) The Trustee, prior to the
occurrence of an Event of Default and after the curing or waiver of all Events
of Default which may have occurred, and the Securities Administrator each
undertake to perform such duties and only such duties as are specifically set
forth in this Agreement as duties of the Trustee and the Securities
Administrator, respectively. If an Event of Default has occurred and has not
been cured or waived, the Trustee shall exercise such of the rights and powers
vested in it by this Agreement, and subject to Section 8.02(b) use the same
degree of care and skill in their exercise, as a prudent person would exercise
under the circumstances in the conduct of his own affairs.

        (b) Upon receipt of all resolutions, certificates, statements, opinions,
reports, documents, orders or other instruments which are specifically required
to be furnished to the Trustee and the Securities Administrator pursuant to any
provision of this Agreement, the Trustee and the Securities Administrator,
respectively, shall examine them to determine whether they are in the form
required by this Agreement; PROVIDED, HOWEVER, that neither the Trustee nor the
Securities Administrator shall be responsible for the accuracy or content of any
resolution, certificate, statement, opinion, report, document, order or other
instrument furnished by the Master Servicer; PROVIDED, FURTHER, that neither the
Trustee nor the Securities Administrator shall be responsible for the accuracy
or verification of any calculation provided to it pursuant to this Agreement.

        (c) On each Distribution Date, the Trustee shall make monthly
distributions and the final distribution to the Certificateholders from funds in
the Distribution Account as provided in Sections 6.01 and 10.01 herein based the
report of the Securities Administrator.

        (d) No provision of this Agreement shall be construed to relieve the
Trustee or the Securities Administrator from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct;
PROVIDED, HOWEVER, that:

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

                                      -99-

<PAGE>

        the Trustee or the Securities Administrator, respectively, and
        conforming to the requirements of this Agreement;

               (ii) Neither the Trustee nor the Securities Administrator shall
        be liable in its individual capacity for an error of judgment made in
        good faith by a Responsible Officer or Responsible Officers of the
        Trustee or an officer of the Securities Administrator, respectively,
        unless it shall be proved that the Trustee or the Securities
        Administrator, respectively, was negligent in ascertaining the pertinent
        facts;

               (iii) Neither the Trustee nor the Securities Administrator shall
        be liable with respect to any action taken, suffered or omitted to be
        taken by it in good faith in accordance with the directions of the
        Holders of Certificates evidencing Fractional Undivided Interests
        aggregating not less than 25% of the Trust Fund, if such action or
        non-action relates to the time, method and place of conducting any
        proceeding for any remedy available to the Trustee or the Securities
        Administrator, respectively, or exercising any trust or other power
        conferred upon the Trustee or the Securities Administrator,
        respectively, under this Agreement;

               (iv) The Trustee shall not be required to take notice or be
        deemed to have notice or knowledge of any default or Event of Default
        unless a Responsible Officer of the Trustee's Corporate Trust Office
        shall have actual knowledge thereof. In the absence of such notice, the
        Trustee may conclusively assume there is no such default or Event of
        Default;

               (v) The Trustee shall not in any way be liable by reason of any
        insufficiency in any Account held by or in the name of Trustee unless it
        is determined by a court of competent jurisdiction that the Trustee's
        gross negligence or willful misconduct was the primary cause of such
        insufficiency (except to the extent that the Trustee is obligor and has
        defaulted thereon);

               (vi) Anything in this Agreement to the contrary notwithstanding,
        in no event shall the Trustee or the Securities Administrator be liable
        for special, indirect or consequential loss or damage of any kind
        whatsoever (including but not limited to lost profits), even if the
        Trustee or the Securities Administrator, respectively, has been advised
        of the likelihood of such loss or damage and regardless of the form of
        action; and

               (vii) None of the Securities Administrator, EMC or the Trustee
        shall be responsible for the acts or omissions of the other, it being
        understood that this Agreement shall not be construed to render them
        partners, joint venturers or agents of one another.

        Neither the Trustee nor the Securities Administrator shall be required
to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if there is reasonable ground for believing that the repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it, and none of the provisions contained in this Agreement
shall in any event require the Trustee

                                      -100-

<PAGE>

or the Securities Administrator to perform, or be responsible for the manner of
performance of, any of the obligations of the Master Servicer under the
Servicing Agreements, except during such time, if any, as the Trustee shall be
the successor to, and be vested with the rights, duties, powers and privileges
of, the Master Servicer in accordance with the terms of this Agreement.

        (e) All funds received by the Master Servicer and the Trustee and
required to be deposited in the Master Servicer Collection Account or
Distribution Account pursuant to this Agreement will be promptly so deposited by
the Master Servicer and the Trustee.

        (f) Except for those actions that the Trustee or the Securities
Administrator is required to take hereunder, neither the Trustee nor the
Securities Administrator shall have any obligation or liability to take any
action or to refrain from taking any action hereunder in the absence of written
direction as provided hereunder.

        Section 9.02. CERTAIN MATTERS AFFECTING THE TRUSTEE AND THE SECURITIES
ADMINISTRATOR. Except as otherwise provided in Section 9.01:

               (i) The Trustee and the Securities Administrator may rely and
        shall be protected in acting or refraining from acting in reliance on
        any resolution, certificate of a Seller, Master Servicer or Servicer,
        certificate of auditors or any other certificate, statement, instrument,
        opinion, report, notice, request, consent, order, appraisal, bond or
        other paper or document believed by it to be genuine and to have been
        signed or presented by the proper party or parties;

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

               (iii) Neither the Trustee nor the Securities Administrator shall
        be under any obligation to exercise any of the trusts or powers vested
        in it by this Agreement, other than its obligation to give notices
        pursuant to this Agreement, or to institute, conduct or defend any
        litigation hereunder or in relation hereto at the request, order or
        direction of any of the Certificateholders pursuant to the provisions of
        this Agreement, unless such Certificateholders shall have offered to the
        Trustee reasonable security or indemnity against the costs, expenses and
        liabilities which may be incurred therein or thereby. Nothing contained
        herein shall, however, relieve the Trustee of the obligation, upon the
        occurrence of an Event of Default of which a Responsible Officer of the
        Trustee's Corporate Trust Office has actual knowledge (which has not
        been cured or waived), subject to Section 8.02(b), to exercise such of
        the rights and powers vested in it by this Agreement, and to use the
        same degree of care and skill in their exercise, as a prudent person
        would exercise under the circumstances in the conduct of his own
        affairs;

                                      -101-

<PAGE>

               (iv) Prior to the occurrence of an Event of Default hereunder and
        after the curing or waiver of all Events of Default which may have
        occurred, neither the Trustee nor the Securities Administrator shall be
        liable in its individual capacity for any action taken, suffered or
        omitted by it in good faith and believed by it to be authorized or
        within the discretion or rights or powers conferred upon it by this
        Agreement;

               (v) Neither the Trustee nor the Securities Administrator shall be
        bound to make any investigation into the facts or matters stated in any
        resolution, certificate, statement, instrument, opinion, report, notice,
        request, consent, order, approval, bond or other paper or document,
        unless requested in writing to do so by Holders of Certificates
        evidencing Fractional Undivided Interests aggregating not less than 25%
        of the Trust Fund and provided that the payment within a reasonable time
        to the Trustee or the Securities Administrator, as applicable, of the
        costs, expenses or liabilities likely to be incurred by it in the making
        of such investigation is, in the opinion of the Trustee or the
        Securities Administrator, as applicable, reasonably assured to the
        Trustee or the Securities Administrator, as applicable, by the security
        afforded to it by the terms of this Agreement. The Trustee or the
        Securities Administrator may require reasonable indemnity against such
        expense or liability as a condition to taking any such action. The
        reasonable expense of every such examination shall be paid by the
        Certificateholders requesting the investigation;

               (vi) The Trustee and the Securities Administrator may execute any
        of the trusts or powers hereunder or perform any duties hereunder either
        directly or through Affiliates, agents or attorneys; PROVIDED, HOWEVER,
        that the Trustee may not appoint any agent to perform its custodial
        functions with respect to the Mortgage Files or paying agent functions
        under this Agreement without the express written consent of the Master
        Servicer, which consent will not be unreasonably withheld. Neither the
        Trustee nor the Securities Administrator shall be liable or responsible
        for the misconduct or negligence of any of the Trustee's or the
        Securities Administrator's agents or attorneys or a custodian or paying
        agent appointed hereunder by the Trustee or the Securities Administrator
        with due care and, when required, with the consent of the Master
        Servicer;

               (vii) Should the Trustee or the Securities Administrator deem the
        nature of any action required on its part, other than a payment or
        transfer under Subsection 4.01(b) or Section 4.02, to be unclear, the
        Trustee or the Securities Administrator, respectively, may require prior
        to such action that it be provided by the Seller with reasonable further
        instructions;

               (viii) The right of the Trustee or the Securities Administrator
        to perform any discretionary act enumerated in this Agreement shall not
        be construed as a duty, and neither the Trustee nor the Securities
        Administrator shall be accountable for other than its negligence or
        willful misconduct in the performance of any such act;

                                      -102-

<PAGE>

               (ix) Neither the Trustee nor the Securities Administrator shall
        be required to give any bond or surety with respect to the execution of
        the trust created hereby or the powers granted hereunder, except as
        provided in Subsection 9.07; and

               (x) Neither the Trustee nor the Securities Administrator shall
        have any duty to conduct any affirmative investigation as to the
        occurrence of any condition requiring the repurchase of any Mortgage
        Loan by the Mortgage Loan Seller pursuant to this Agreement or the
        Mortgage Loan Purchase Agreement, as applicable, or the eligibility of
        any Mortgage Loan for purposes of this Agreement.

        Section 9.03. TRUSTEE AND SECURITIES ADMINISTRATOR NOT LIABLE FOR
CERTIFICATES OR MORTGAGE LOANS. The recitals contained herein and in the
Certificates (other than the signature and countersignature of the Trustee on
the Certificates) shall be taken as the statements of the Seller, and neither
the Trustee nor the Securities Administrator shall have any responsibility for
their correctness. Neither the Trustee nor the Securities Administrator makes
any representation as to the validity or sufficiency of the Certificates (other
than the signature and countersignature of the Trustee on the Certificates) or
of any Mortgage Loan except as expressly provided in Sections 2.02 and 2.05
hereof; provided, however, that the foregoing shall not relieve the Trustee or
the Custodian, as its agent, of the obligation to review the Mortgage Files
pursuant to Sections 2.02 and 2.04. The Trustee's signature and countersignature
(or countersignature of its agent) on the Certificates shall be solely in its
capacity as Trustee and shall not constitute the Certificates an obligation of
the Trustee in any other capacity. Neither the Trustee or the Securities
Administrator shall be accountable for the use or application by the Seller of
any of the Certificates or of the proceeds of such Certificates, or for the use
or application of any funds paid to the Seller with respect to the Mortgage
Loans. Subject to the provisions of Section 2.05, neither the Trustee nor the
Securities Administrator shall be responsible for the legality or validity of
this Agreement or any document or instrument relating to this Agreement, the
validity of the execution of this Agreement or of any supplement hereto or
instrument of further assurance, or the validity, priority, perfection or
sufficiency of the security for the Certificates issued hereunder or intended to
be issued hereunder. Neither the Trustee nor the Securities Administrator shall
at any time have any responsibility or liability for or with respect to the
legality, validity and enforceability of any Mortgage or any Mortgage Loan, or
the perfection and priority of any Mortgage or the maintenance of any such
perfection and priority, or for or with respect to the sufficiency of the Trust
Fund or its ability to generate the payments to be distributed to
Certificateholders, under this Agreement. Neither the Trustee nor the Securities
Administrator shall have any 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 it
hereunder or to record this Agreement other than any continuation statements
filed by the Trustee pursuant to Section 3.20.

        Section 9.04. TRUSTEE AND SECURITIES ADMINISTRATOR MAY OWN CERTIFICATES.
The Trustee and the Securities Administrator in its individual capacity or in
any capacity other than as Trustee hereunder may become the owner or pledgee of
any Certificates with the same rights it would have

                                      -103-

<PAGE>

if it were not Trustee or the Securities Administrator, as applicable, and may
otherwise deal with the parties hereto.

        Section 9.05. TRUSTEE'S AND SECURITIES ADMINISTRATOR'S FEES AND
EXPENSES. The fees and expenses of the Trustee and the Securities Administrator
shall be paid in accordance with a side letter agreement. In addition, the
Trustee and the Securities Administrator will be entitled to recover from and
will be indemnified by the Trust from amounts on deposit in the Master Servicer
Collection Account pursuant to Section 4.03(b) all reasonable out-of-pocket
expenses, disbursements and advances and the expenses of the Trustee and the
Securities Administrator, respectively, in connection with any Event of Default,
any breach of this Agreement or any claim or legal action (including any pending
or threatened claim or legal action) incurred or made by the Trustee or the
Securities Administrator, respectively, in the administration of the trusts
hereunder (including the reasonable compensation, expenses and disbursements of
its counsel) except any such expense, disbursement or advance as may arise from
its negligence or intentional misconduct or which is the responsibility of the
Certificateholders or the Trust Fund hereunder. If funds in the Master Servicer
Collection Account are insufficient therefor, the Trustee and the Securities
Administrator shall recover such expenses from the Seller. Such compensation and
reimbursement obligation shall not be limited by any provision of law in regard
to the compensation of a trustee of an express trust.

        Section 9.06. ELIGIBILITY REQUIREMENTS FOR TRUSTEE AND SECURITIES
ADMINISTRATOR. The Trustee and any successor Trustee and the Securities
Administrator and any successor Securities Administrator shall during the entire
duration of this Agreement be a state bank or trust company or a national
banking association organized and doing business under the laws of such state or
the United States of America, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus and undivided profits of at
least $40,000,000 or, in the case of a successor Trustee, $50,000,000, subject
to supervision or examination by federal or state authority and, in the case of
the Trustee, rated "BBB" or higher by Fitch with respect to their long-term
rating and rated "BBB" or higher by Standard & Poor's and "Baa2" or higher by
Moody's with respect to any outstanding long-term unsecured unsubordinated debt,
and, in the case of a successor Trustee or successor Securities Administrator
other than pursuant to Section 9.10, rated in one of the two highest long-term
debt categories of, or otherwise acceptable to, each of the Rating Agencies. If
the Trustee publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section 9.06 the combined capital and surplus of such
corporation shall be deemed to be its total equity capital (combined capital and
surplus) as set forth in its most recent report of condition so published. In
case at any time the Trustee or the Securities Administrator shall cease to be
eligible in accordance with the provisions of this Section 9.06, the Trustee or
the Securities Administrator shall resign immediately in the manner and with the
effect specified in Section 9.08.

        Section 9.07. INSURANCE. The Trustee and the Securities Administrator,
at their own expense, shall at all times maintain and keep in full force and
effect: (i) fidelity insurance, (ii) theft of documents insurance and (iii)
forgery insurance (which may be collectively satisfied by a "Financial
Institution Bond" and/or a "Bankers' Blanket Bond"). In lieu of the foregoing,
the Trustee and the

                                      -104-

<PAGE>

Securities Administrator may, at their option, self insure. All such insurance
shall be in amounts, with standard coverage and subject to deductibles, as are
customary for insurance typically maintained by banks or their affiliates which
act as custodians for investor-owned mortgage pools. A certificate of an officer
of the Trustee or the Securities Administrator as to the Trustee's or the
Securities Administrator's, respectively, compliance with this Section 9.07
shall be furnished to any Certificateholder upon reasonable written request.

        Section 9.08. RESIGNATION AND REMOVAL OF THE TRUSTEE AND SECURITIES
ADMINISTRATOR. (a) The Trustee and the Securities Administrator may at any time
resign and be discharged from the Trust hereby created by giving written notice
thereof to the Seller and the Master Servicer, with a copy to the Rating
Agencies. Upon receiving such notice of resignation, the Seller shall promptly
appoint a successor Trustee or successor Securities Administrator, as
applicable, by written instrument, in triplicate, one copy of which instrument
shall be delivered to each of the resigning Trustee or Securities Administrator,
as applicable, the successor Trustee or Securities Administrator, as applicable.
If no successor Trustee or Securities Administrator shall have been so appointed
and have accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Trustee or Securities Administrator may petition any
court of competent jurisdiction for the appointment of a successor Trustee or
Securities Administrator.

        (b) If at any time the Trustee or the Securities Administrator shall
cease to be eligible in accordance with the provisions of Section 9.06 and shall
fail to resign after written request therefor by the Seller or if at any time
the Trustee or the Securities Administrator shall become incapable of acting, or
shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or the
Securities Administrator, as applicable, or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or the
Securities Administrator, as applicable, or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation, then the Seller shall
promptly remove the Trustee, or shall be entitled to remove the Securities
Administrator, as applicable, and appoint a successor Trustee or Securities
Administrator, as applicable, by written instrument, in triplicate, one copy of
which instrument shall be delivered to each of the Trustee or Securities
Administrator, as applicable, so removed, the successor Trustee or Securities
Administrator, as applicable.

        (c) The Holders of Certificates evidencing Fractional Undivided
Interests aggregating not less than 51% of the Trust Fund may at any time remove
the Trustee or the Securities Administrator and appoint a successor Trustee or
Securities Administrator by written instrument or instruments, in quadruplicate,
signed by such Holders or their attorneys-in-fact duly authorized, one complete
set of which instruments shall be delivered to the Seller, the Master Servicer,
the Securities Administrator (if the Trustee is removed), the Trustee (if the
Securities Administrator is removed), and the Trustee or Securities
Administrator so removed and the successor so appointed.

        (d) No resignation or removal of the Trustee or the Securities
Administrator and appointment of a successor Trustee or Securities Administrator
pursuant to any of the provisions of

                                      -105-

<PAGE>

this Section 9.08 shall become effective except upon appointment of and
acceptance of such appointment by the successor Trustee or Securities
Administrator as provided in Section 9.09.

        Section 9.09. SUCCESSOR TRUSTEE AND SUCCESSOR SECURITIES ADMINISTRATOR.
(a) Any successor Trustee or Securities Administrator appointed as provided in
Section 9.08 shall execute, acknowledge and deliver to the Seller and to its
predecessor Trustee or Securities Administrator an instrument accepting such
appointment hereunder. The resignation or removal of the predecessor Trustee or
Securities Administrator shall then become effective and such successor Trustee
or Securities Administrator, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as Trustee or
Securities Administrator herein. The predecessor Trustee or Securities
Administrator shall after payment of its outstanding fees and expenses promptly
deliver to the successor Trustee or Securities Administrator, as applicable, all
assets and records of the Trust held by it hereunder, and the Seller and the
predecessor Trustee or Securities Administrator, as applicable, shall execute
and deliver such instruments and do such other things as may reasonably be
required for more fully and certainly vesting and confirming in the successor
Trustee or Securities Administrator, as applicable, all such rights, powers,
duties and obligations.

        (b) No successor Trustee or Securities Administrator shall accept
appointment as provided in this Section 9.09 unless at the time of such
acceptance such successor Trustee or Securities Administrator shall be eligible
under the provisions of Section 9.06.

        (c) Upon acceptance of appointment by a successor Trustee or Securities
Administrator as provided in this Section 9.09, the successor Trustee or
Securities Administrator shall mail notice of the succession of such Trustee or
Securities Administrator hereunder to all Certificateholders at their addresses
as shown in the Certificate Register and to the Rating Agencies. EMC shall pay
the cost of any mailing by the successor Trustee or Securities Administrator.

        Section 9.10. MERGER OR CONSOLIDATION OF TRUSTEE OR SECURITIES
ADMINISTRATOR. Any state bank or trust company or national banking association
into which the Trustee or the Securities Administrator may be merged or
converted or with which it may be consolidated or any state bank or trust
company or national banking association resulting from any merger, conversion or
consolidation to which the Trustee or the Securities Administrator,
respectively, shall be a party, or any state bank or trust company or national
banking association succeeding to all or substantially all of the corporate
trust business of the Trustee or the Securities Administrator, respectively,
shall be the successor of the Trustee or the Securities Administrator,
respectively, hereunder, provided such state bank or trust company or national
banking association shall be eligible under the provisions of Section 9.06. Such
succession shall be valid without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

        Section 9.11. APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE. (a)
Notwithstanding any other provisions hereof, at any time, for the purpose of
meeting any legal requirements of any jurisdiction in which any part of the
Trust or property constituting the same may at the time be

                                      -106-

<PAGE>

located, the Seller and the Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee and the Seller to act as co- trustee or co-trustees,
jointly with the Trustee, or separate trustee or separate trustees, of all or
any part of the Trust, and to vest in such Person or Persons, in such capacity,
such title to the Trust, or any part thereof, and, subject to the other
provisions of this Section 9.11, such powers, duties, obligations, rights and
trusts as the Seller and the Trustee may consider necessary or desirable.

        (b) If the Seller shall not have joined in such appointment within 15
days after the receipt by it of a written request so to do, the Trustee shall
have the power to make such appointment without the Seller.

        (c) No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor Trustee under Section 9.06
hereunder and no notice to Certificateholders of the appointment of
co-trustee(s) or separate trustee(s) shall be required under Section 9.08
hereof.

        (d) In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 9.11, all rights, powers, duties and obligations
conferred or imposed upon the Trustee and required to be conferred on such
co-trustee shall be conferred or imposed upon and exercised or performed by the
Trustee and such separate trustee or co-trustee jointly, except to the extent
that under any law of any jurisdiction in which any particular act or acts are
to be performed (whether as Trustee hereunder or as successor to the Master
Servicer hereunder), the Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Trust or any portion thereof in any such
jurisdiction) shall be exercised and performed by such separate trustee or
co-trustee at the direction of the Trustee.

        (e) Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article IX. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in
its instrument of appointment, either jointly with the Trustee or separately, as
may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee.

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

                                      -107-

<PAGE>

        (g) No trustee under this Agreement shall be personally liable by reason
of any act or omission of another trustee under this Agreement. The Seller and
the Trustee acting jointly may at any time accept the resignation of or remove
any separate trustee or co-trustee.

        Section 9.12. FEDERAL INFORMATION RETURNS AND REPORTS TO
CERTIFICATEHOLDERS; REMIC ADMINISTRATION. (a) For federal income tax purposes,
the taxable year of each of REMIC I and REMIC II shall be a calendar year and
the Securities Administrator shall maintain or cause the maintenance of the
books of such REMIC on the accrual method of accounting.

        (b) The Securities Administrator shall prepare and file or cause to be
filed with the Internal Revenue Service, and the Trustee shall sign, Federal tax
information returns or elections required to be made hereunder with respect to
each of REMIC I and REMIC II, the Trust Fund, as applicable, and the
Certificates containing such information and at the times and in the manner as
may be required by the Code or applicable Treasury regulations, and shall
furnish to each Holder of Certificates at any time during the calendar year for
which such returns or reports are made such statements or information at the
times and in the manner as may be required thereby, including, without
limitation, reports relating to interest, original issue discount and market
discount or premium (using a constant prepayment assumption of 25% CPR). The
Securities Administrator will apply for an Employee Identification Number from
the IRS under Form SS-4 or any other acceptable method for all tax entities. In
connection with the foregoing, the Securities Administrator shall timely prepare
and file, and the Trustee shall sign, IRS Form 8811, which shall provide the
name and address of the person who can be contacted to obtain information
required to be reported to the holders of regular interests in each of REMIC I
and REMIC II (the "REMIC Reporting Agent"). The Trustee shall make elections to
treat each of REMIC I and REMIC II as a REMIC (which elections shall apply to
the taxable period ending December 31, 2001 and each calendar year thereafter)
in such manner as the Code or applicable Treasury regulations may prescribe, and
as described by the Securities Administrator. The Trustee shall sign all tax
information returns filed pursuant to this Section and any other returns as may
be required by the Code. The Holder of the Class R-I Certificate is hereby
designated as the "Tax Matters Person" (within the meaning of Treas. Reg.
ss.ss.1.860F-4(d)) for REMIC I, and the Holder of the Class R-II Certificate is
hereby designated as the "Tax Matters Person" for REMIC II. The Securities
Administrator is hereby designated and appointed as the agent of each such Tax
Matters Person. Any Holder of a Residual Certificate will by acceptance thereof
appoint the Securities Administrator as agent and attorney-in-fact for the
purpose of acting as Tax Matters Person for each of REMIC I and REMIC II during
such time as the Securities Administrator does not own any such Residual
Certificate. In the event that the Code or applicable Treasury regulations
prohibit the Trustee from signing tax or information returns or other
statements, or the Securities Administrator from acting as agent for the Tax
Matters Person, the Trustee and the Securities Administrator shall take whatever
action that in its sole good faith judgment is necessary for the proper filing
of such information returns or for the provision of a tax matters person,
including designation of the Holder of a Residual Certificate to sign such
returns or act as tax matters person. Each Holder of a Residual Certificate
shall be bound by this Section.

                                      -108-

<PAGE>

        (c) The Securities Administrator shall provide upon request and receipt
of reasonable compensation, such information as required in Section
860D(a)(6)(B) of the Code to the Internal Revenue Service, to any Person
purporting to transfer a Residual Certificate to a Person other than a
transferee permitted by Section 5.05(b), and to any regulated investment
company, real estate investment trust, common trust fund, partnership, trust,
estate, organization described in Section 1381 of the Code, or nominee holding
an interest in a pass-through entity described in Section 860E(e)(6) of the
Code, any record holder of which is not a transferee permitted by Section
5.05(b) (or which is deemed by statute to be an entity with a disqualified
member).

        (d) The Securities Administrator shall prepare and file or cause to be
filed, and the Trustee shall sign, any state income tax returns required under
Applicable State Law with respect to each of REMIC I and REMIC II or the Trust
Fund.

        (e) Notwithstanding any other provision of this Agreement, the Trustee
and the Securities Administrator shall comply with all federal withholding
requirements respecting payments to Certificateholders of interest or original
issue discount on the Mortgage Loans, that the Trustee or the Securities
Administrator reasonably believes are applicable under the Code. The consent of
Certificateholders shall not be required for such withholding. In the event the
Trustee or the Securities Administrator withholds any amount from interest or
original issue discount payments or advances thereof to any Certificateholder
pursuant to federal withholding requirements, the Trustee or the Securities
Administrator shall, together with its monthly report to such
Certificateholders, indicate such amount withheld.

        (f) The Trustee, solely with respect to a breach of its covenants set
forth in this Section 9.12, and the Securities Administrator, solely with
respect to a breach of its covenants set forth in this Section 9.12, agree to
indemnify the Trust Fund and the Seller for any taxes and costs including,
without limitation, any reasonable attorneys fees imposed on or incurred by the
Trust Fund, the Seller or the Master Servicer, as a result of such breach;
provided, however, such liability and obligation to indemnify pursuant to this
paragraph shall not be joint and several and neither the Trustee nor the
Securities Administrator shall be liable or be obligated to indemnify the Trust
Fund for the failure by the other to perform any duty under this Agreement or
the breach by the other of any covenant in this Agreement.

        Section 9.13. MAINTENANCE OF SUPPLEMENTAL PMI POLICY; COLLECTIONS
THEREUNDER. (a) The Trustee and the Securities Administrator shall cooperate
with the Supplemental PMI Insurer and shall use its best efforts to furnish to
the Supplemental PMI Insurer all reasonable information in the possession of the
Trustee or the Securities Administrator, respectively, or to which the Trustee
or the Securities Administrator, respectively, has access with respect to each
Mortgage Loan.

        (b) In the event of a default by the Supplemental PMI Insurer under the
Supplemental PMI Policy (a "Replacement Event"), the Master Servicer shall use
its best efforts to obtain a substitute lender-paid primary mortgage insurance
policy (a "Substitute Supplemental PMI Policy"); PROVIDED, HOWEVER, that the
Master Servicer shall not be obligated, and shall have no liability for

                                      -109-

<PAGE>

failing, to obtain a Substitute Supplemental PMI Policy unless such Substitute
Supplemental PMI Policy can be obtained on the following terms and conditions:
(i) the Certificates shall be rated no lower than the rating assigned by each
Rating Agency to the Certificates immediately prior to such Replacement Event,
as evidenced by a letter from each Rating Agency addressed to the Seller, the
Master Servicer and the Trustee, (ii) the timing and mechanism for drawing on
such new Substitute Supplemental PMI Policy shall be reasonably acceptable to
the Master Servicer and the Trustee and (iii) the premiums under the proposed
Substitute Supplemental PMI Policy shall not exceed such premiums under the
existing Supplemental PMI Policy.

        (c) Pursuant to Section 4.02 hereof, any amounts collected by the Master
Servicer on behalf of the Trustee under the Supplemental PMI Policy shall be
deposited in the Master Servicer Collection Account, subject to withdrawal
pursuant to Section 4.03 hereof.

        (d) On each Distribution Date, the Securities Administrator shall
provide to the Supplemental PMI Insurer an electronic file containing the loan
number and outstanding principal balance of each Mortgage Loan covered by the
Supplemental PMI Policy.

        (e) The Securities Administrator shall provide upon request by the
Depositor or the Rating Agencies without charge copies of any reports provided
to the Securities Administrator by the Master Servicer or the Supplemental PMI
Insurer with respect to the Mortgage Loans covered by the Supplemental PMI
Policy. The Securities Administrator shall also provide, upon request, such
reports to any Certificateholder provided that the reasonable expenses incurred
by the Securities Administrator in providing such reports (including postage and
copying costs) are paid by such Certificateholder.

                                      -110-

<PAGE>

                                    ARTICLE X

                                   Termination

        Section 10.01. TERMINATION UPON REPURCHASE BY THE SELLER OR ITS DESIGNEE
OR LIQUIDATION OF THE MORTGAGE LOANS.

        (a) Subject to Section 10.02, the respective obligations and
responsibilities of the Seller, the Trustee, the Master Servicer and the
Securities Administrator created hereby, other than the obligation of the
Trustee to make payments to Certificateholders as hereinafter set forth shall
terminate upon:

               (i) the repurchase by or at the direction of the Seller or its
        designee of all Mortgage Loans and all related REO Property remaining in
        the Trust at a price equal to (a) 100% of the Outstanding Principal
        Balance of each Mortgage Loan (other than a Mortgage Loan related to REO
        Property) as of the date of repurchase, net of the principal portion of
        any unreimbursed Monthly Advances made by the purchaser, together with
        interest at the applicable Mortgage Interest Rate accrued but unpaid to,
        but not including, the first day of the month of repurchase, plus (b)
        the appraised value of any related REO Property, less the good faith
        estimate of the Seller of liquidation expenses to be incurred in
        connection with its disposal thereof (but not more than the Outstanding
        Principal Balance of the related Mortgage Loan, together with interest
        at the applicable Mortgage Interest Rate accrued on that balance but
        unpaid to, but not including, the first day of the month of repurchase),
        such appraisal to be calculated by an appraiser mutually agreed upon by
        the Seller and the Trustee at the expense of the Seller; or

               (ii) the later of the making of the final payment or other
        liquidation, or any advance with respect thereto, of the last Mortgage
        Loan remaining in the Trust Fund or the disposition of all property
        acquired with respect to any Mortgage Loan; PROVIDED, HOWEVER, that in
        the event that an advance has been made, but not yet recovered, at the
        time of such termination, the Person having made such advance shall be
        entitled to receive, notwithstanding such termination, any payments
        received subsequent thereto with respect to which such advance was made;
        or

               (iii) the payment to Certificateholders of all amounts required
        to be paid to them pursuant to this Agreement.

        (b) In no event, however, shall the Trust created hereby continue beyond
the expiration of 21 years from the death of the last survivor of the
descendants of Joseph P. Kennedy, the late Ambassador of the United States to
the Court of St. James's, living on the date of this Agreement.

                                      -111-

<PAGE>

        (c) The right of the Seller or its designee to repurchase all the
Mortgage Loans pursuant to Subsection 10.01(a)(i) above shall be exercisable
only if (i) the aggregate Scheduled Principal Balance of the Mortgage Loans at
the time of any such repurchase is less than 10% of the portion of the Cut-off
Date Balance or (ii) the Seller, based upon an Opinion of Counsel, has
determined that the REMIC status of the REMIC I or REMIC II has been lost or
that a substantial risk exists that such REMIC status will be lost for the
then-current taxable year. At any time thereafter, in the case of (i) or (ii)
above, the Seller may elect to terminate the REMIC I or REMIC II at any time,
and upon such election, the Seller or its designee, shall repurchase all the
Mortgage Loans.

        (d) The Trustee shall give notice of any termination to the
Certificateholders, with a copy to the Master Servicer, the Securities
Administrator and the Rating Agencies, upon which the Certificateholders shall
surrender their Certificates to the Trustee for payment of the final
distribution and cancellation. Such notice shall be given by letter, mailed not
earlier than the l5th day and not later than the 25th day of the month next
preceding the month of such final distribution, and shall specify (i) the
Distribution Date upon which final payment of the Certificates will be made upon
presentation and surrender of the Certificates at the office of the Trustee
therein designated, (ii) the amount of any such final payment and (iii) that the
Record Date otherwise applicable to such Distribution Date is not applicable,
payments being made only upon presentation and surrender of the Certificates at
the office of the Trustee therein specified.

        (e) If the option of the Seller to repurchase or cause the repurchase of
all the Mortgage Loans under Subsection 10.01 (a)(i) above is exercised, the
Seller and/or its designee shall deliver to the Trustee for deposit in the
Distribution Account, by the Business Day prior to the applicable Distribution
Date, an amount equal to the repurchase price for the Mortgage Loans being
purchased by it and all property acquired with respect to such Mortgage Loans
remaining in REMIC I and REMIC II. Upon presentation and surrender of the
Certificates by the Certificateholders, the Trustee shall distribute to the
Certificateholders an amount determined as follows: with respect to each
Certificate (other than the Class R Certificates), the outstanding Current
Principal Amount, plus with respect to each Certificate (other than the Class R
Certificates), one month's interest thereon at the applicable Pass-Through Rate;
and with respect to the Class R Certificates, the percentage interest evidenced
thereby multiplied by the difference, if any, between the above described
repurchase price and the aggregate amount to be distributed to the Holders of
the Certificates (other than the Class R Certificates). If the proceeds with
respect to the Group I Mortgage Loans are not sufficient to pay all of the Group
I Certificates in full, any such deficiency will be allocated first, to the
Subordinate Certificates, in inverse order of their numerical designation, and
then to the Group I Senior Certificates on a PRO RATA basis. If the proceeds
with respect to the Group II Mortgage Loans are not sufficient to pay all of the
Group II Certificates in full, any such deficiency will be allocated first, to
the Subordinate Certificates, in inverse order of their numerical designation,
and then to the Group II Senior Certificates. If the proceeds with respect to
the Group III Mortgage Loans are not sufficient to pay all of the Group III
Certificates in full, any such deficiency will be allocated first, to the
Subordinate Certificates, in inverse order of their numerical designation, and
then to the Group III Senior Certificates. If the proceeds with respect to the
Group IV Mortgage Loans are not sufficient to pay all of the Group IV
Certificates in full, any such deficiency will be allocated first, to the

                                      -112-

<PAGE>

Subordinate Certificates, in inverse order of their numerical designation, and
then to the Group IV Senior Certificates. If the proceeds with respect to the
Group V Mortgage Loans are not sufficient to pay all of the Group V Certificates
in full, any such deficiency will be allocated first, to the Subordinate
Certificates, in inverse order of their numerical designation, and then to the
Group V Senior Certificates. Upon deposit of the required repurchase price and
following such final Distribution Date, the Trustee shall release promptly to
the Seller and/or its designee the Mortgage Files for the remaining applicable
Mortgage Loans, and the Accounts with respect thereto shall terminate, subject
to the Trustee's obligation to hold any amounts payable to Certificateholders in
trust without interest pending final distributions pursuant to Subsection
10.01(g). Any other amounts remaining in the Accounts will belong to the Seller.
Upon deposit of the required repurchase price and following such final
Distribution Date, the Trustee shall release promptly to the Seller and/or its
designee, as the case may be, the Mortgage Files for the remaining Mortgage
Loans, and the Accounts with respect thereto shall terminate, subject to the
Trustee's obligation to hold any amounts payable to Certificateholders in trust
without interest pending final distributions pursuant to Subsection 10.01(g).

        (f) In the event that this Agreement is terminated by reason of the
payment or liquidation of all Mortgage Loans or the disposition of all property
acquired with respect to all Mortgage Loans under Subsection 10.01(a)(ii) above,
the Master Servicer shall deliver to the Trustee for deposit in the Distribution
Account all distributable amounts remaining in the Master Servicer Collection
Account. Upon the presentation and surrender of the Certificates, the Trustee
shall distribute to the remaining Certificateholders, in accordance with their
respective interests, all distributable amounts remaining in the Distribution
Account. Upon deposit by the Master Servicer of such distributable amounts, and
following such final Distribution Date, the Trustee shall release promptly to
the Seller or its designee the Mortgage Files for the remaining Mortgage Loans,
and the Master Servicer Collection Account and the Distribution Account shall
terminate, subject to the Trustee's obligation to hold any amounts payable to
the Certificateholders in trust without interest pending final distributions
pursuant to this Subsection 10.01(g).

        (g) If not all of the Certificateholders shall surrender their
Certificates for cancellation within six months after the time specified in the
above-mentioned written notice, the Trustee shall give a second written notice
to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice, not all the Certificates shall have been
surrendered for cancellation, the Trustee may take appropriate steps, or appoint
any agent to take appropriate steps, to contact the remaining Certificateholders
concerning surrender of their Certificates, and the cost thereof shall be paid
out of the funds and other assets which remain subject to this Agreement.

        Section 10.02. ADDITIONAL TERMINATION REQUIREMENTS. (a) If the option of
the Seller to repurchase all the Mortgage Loans under Subsection 10.01(a)(i)
above is exercised, the Trust Fund and each of REMIC I and REMIC II shall be
terminated in accordance with the following additional requirements, unless the
Trustee has been furnished with an Opinion of Counsel to the effect that the
failure of the Trust to comply with the requirements of this Section 10.02 will
not (i) result in the

                                      -113-

<PAGE>

imposition of taxes on "prohibited transactions" as defined in Section 860F of
the Code on each of REMIC I and REMIC II or (ii) cause any REMIC to fail to
qualify as a REMIC at any time that any Regular Certificates are outstanding:

               (i) within 90 days prior to the final Distribution Date, at the
        written direction of the Seller, the Trustee, as agent for the
        respective Tax Matters Persons, shall adopt a plan of complete
        liquidation of REMIC I and REMIC II in the case of a termination under
        Subsection 10.01(a)(i), or a plan of complete liquidation of REMIC I in
        the case of a termination under Subsection 10.01(c), provided to it by
        the Seller meeting the requirements of a "qualified liquidation" under
        Section 860F of the Code and any regulations thereunder.

               (ii) the Seller shall notify the Trustee at the commencement of
        such 90-day liquidation period and, at or prior to the time of making of
        the final payment on the Certificates, the Trustee shall cause the sale
        or other disposal of all remaining assets of the Trust Fund in
        accordance with the terms hereof; and

               (iii) at or after the time of adoption of such a plan of complete
        liquidation of any of REMIC I and REMIC II and at or prior to the final
        Distribution Date, the Trustee shall sell for cash all of the assets of
        the Trust to or at the direction of the Seller, and REMIC I and REMIC
        II, as applicable, shall terminate at such time.

        (b) By their acceptance of the Residual Certificates, the Holders
thereof hereby (i) agree to adopt such a plan of complete liquidation of the
REMIC upon the written request of the Seller, and to take such action in
connection therewith as may be reasonably requested by the Seller and (ii)
appoint the Seller as their attorney-in-fact, with full power of substitution,
for purposes of adopting such a plan of complete liquidation. The Trustee shall
adopt such plan of liquidation by filing the appropriate statement on the final
tax return of each REMIC. Upon complete liquidation or final distribution of all
of the assets of the Trust Fund, the Trust Fund and each of REMIC I and REMIC II
shall terminate.

                                      -114-

<PAGE>

                                   ARTICLE XI

                            Miscellaneous Provisions

        Section 11.01. INTENT OF PARTIES. The parties intend that each of REMIC
I and REMIC II shall be treated as a REMIC for federal income tax purposes and
that the provisions of this Agreement should be construed in furtherance of this
intent.

        Section 11.02. AMENDMENT. (a) This Agreement may be amended from time to
time by EMC, the Seller, the Master Servicer, the Securities Administrator and
the Trustee, and the Servicing Agreements may be amended from time to time by
EMC, the Master Servicer and the Trustee, without notice to or the consent of
any of the Certificateholders, to cure any ambiguity, to correct or supplement
any provisions herein or therein that may be defective or inconsistent with any
other provisions herein or therein, to comply with any changes in the Code or to
make any other provisions with respect to matters or questions arising under
this Agreement which shall not be inconsistent with the provisions of this
Agreement; PROVIDED, HOWEVER, that such action shall not, as evidenced by an
Opinion of Independent Counsel, addressed to the Trustee, adversely affect in
any material respect the interests of any Certificateholder.

        (b) This Agreement may also be amended from time to time by EMC, the
Master Servicer, the Seller, the Securities Administrator and the Trustee, and
the Servicing Agreements may also be amended from time to time by the Master
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing Fractional Undivided Interests aggregating not less than 51% of the
Trust Fund or of the applicable Class or Classes, if such amendment affects only
such Class or Classes, for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Certificateholders; PROVIDED, HOWEVER,
that no such amendment shall (i) reduce in any manner the amount of, or delay
the timing of, payments received on Mortgage Loans which are required to be
distributed on any Certificate without the consent of the Holder of such
Certificate, (ii) reduce the aforesaid percentage of Certificates the Holders of
which are required to consent to any such amendment, without the consent of the
Holders of all Certificates then outstanding, or (iii) cause REMIC I or REMIC II
to fail to qualify as a REMIC for federal income tax purposes, as evidenced by
an Opinion of Independent Counsel which shall be provided to the Trustee other
than at the Trustee's expense. Notwithstanding any other provision of this
Agreement, for purposes of the giving or withholding of consents pursuant to
Section 11.02(b), Certificates registered in the name of or held for the benefit
of the Seller, the Securities Administrator, the Master Servicer, or the Trustee
or any Affiliate thereof shall be entitled to vote their Fractional Undivided
Interests with respect to matters affecting such Certificates.

        (c) Promptly after the execution of any such amendment, the Trustee
shall furnish a copy of such amendment or written notification of the substance
of such amendment to each Certificateholder, with a copy to the Rating Agencies.

                                      -115-

<PAGE>

        (d) In the case of an amendment under Subsection 11.02(b) above, it
shall not be necessary for the Certificateholders to approve the particular form
of such an amendment. Rather, it shall be sufficient if the Certificateholders
approve the substance of the amendment. The manner of obtaining such consents
and of evidencing the authorization of the execution thereof by
Certificateholders shall be subject to such reasonable regulations as the
Trustee may prescribe.

        (e) Prior to the execution of any amendment to this Agreement, the
Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating
that the execution of such amendment is authorized or permitted by this
Agreement. The Trustee and the Securities Administrator may, but shall not be
obligated to, enter into any such amendment which affects the Trustee's or the
Securities Administrator's own respective rights, duties or immunities under
this Agreement.

        Section 11.03. RECORDATION OF AGREEMENT. To the extent permitted by
applicable law, this Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the Mortgaged Properties are situated, and
in any other appropriate public recording office or elsewhere. The Seller shall
effect such recordation, at the expense of the Trust upon the request in writing
of a Certificateholder, but only if such direction is accompanied by an Opinion
of Counsel (provided at the expense of the Certificateholder requesting
recordation) to the effect that such recordation would materially and
beneficially affect the interests of the Certificateholders or is required by
law.

        Section 11.04. LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS. (a) The death
or incapacity of any Certificateholder shall not terminate this Agreement or the
Trust, nor entitle such Certificateholder's legal representatives or heirs to
claim an accounting or to take any action or proceeding in any court for a
partition or winding up of the Trust, nor otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.

        (b) Except as expressly provided in this Agreement, no
Certificateholders shall have any right to vote or in any manner otherwise
control the operation and management of the Trust, or the obligations of the
parties hereto, nor shall anything herein set forth, or contained in the terms
of the Certificates, be construed so as to establish the Certificateholders from
time to time as partners or members of an association; nor shall any
Certificateholders be under any liability to any third Person by reason of any
action taken by the parties to this Agreement pursuant to any provision hereof.

        (c) No Certificateholder shall have any right by virtue of any provision
of this Agreement to institute any suit, action or proceeding in equity or at
law upon, under or with respect to this Agreement against the Seller, the
Securities Administrator, the Master Servicer or any successor to any such
parties unless (i) such Certificateholder previously shall have given to the
Trustee a written notice of a continuing default, as herein provided, (ii) the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% of the Trust Fund shall have made written request upon the
Trustee to institute such action, suit or proceeding in its own name as Trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as it
may require

                                      -116-

<PAGE>

against the costs and expenses and liabilities to be incurred therein or
thereby, and (iii) the Trustee, for 60 days after its receipt of such notice,
request and offer of indemnity, shall have neglected or refused to institute any
such action, suit or proceeding.

        (d) No one or more Certificateholders shall have any right by virtue of
any provision of this Agreement to affect the rights of any other
Certificateholders or to obtain or seek to obtain priority or preference over
any other such Certificateholder, or to enforce any right under this Agreement,
except in the manner herein provided and for the equal, ratable and common
benefit of all Certificateholders. For the protection and enforcement of the
provisions of this Section 11.04, each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

        Section 11.05. ACTS OF CERTIFICATEHOLDERS. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Agreement to be given or taken by Certificateholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Certificateholders in person or by an agent duly appointed in writing.
Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where it is expressly required, to the Seller. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Agreement and conclusive in favor of the Trustee and the Seller,
if made in the manner provided in this Section 11.05.

        (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his or her individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his or her authority. The fact and date of the execution of any such
instrument or writing, or the authority of the individual executing the same,
may also be proved in any other manner which the Trustee deems sufficient.

        (c) The ownership of Certificates (notwithstanding any notation of
ownership or other writing on such Certificates, except an endorsement in
accordance with Section 5.02 made on a Certificate presented in accordance with
Section 5.04) shall be proved by the Certificate Register, and neither the
Trustee, the Securities Administrator, the Seller, the Master Servicer nor any
successor to any such parties shall be affected by any notice to the contrary.

        (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action of the holder of any Certificate shall bind every future
holder of the same Certificate and the holder of every Certificate issued upon
the registration of transfer or exchange thereof, if applicable, or in lieu
thereof with respect to anything done, omitted or suffered to be done by the
Trustee, the Securities Administrator, the Seller, the Master Servicer or any
successor to any such party in reliance thereon, whether or not notation of such
action is made upon such Certificates.

                                      -117-

<PAGE>

        (e) In determining whether the Holders of the requisite percentage of
Certificates evidencing Fractional Undivided Interests have given any request,
demand, authorization, direction, notice, consent or waiver hereunder,
Certificates owned by the Trustee, the Securities Administrator, the Seller, the
Master Servicer or any Affiliate thereof shall be disregarded, except as
otherwise provided in Section 11.02(b) and except that, in determining whether
the Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Certificates which the
Trustee knows to be so owned shall be so disregarded. Certificates which have
been pledged in good faith to the Trustee, the Securities Administrator, the
Seller, the Master Servicer or any Affiliate thereof may be regarded as
outstanding if the pledgor establishes to the satisfaction of the Trustee the
pledgor's right to act with respect to such Certificates and that the pledgor is
not an Affiliate of the Trustee, the Securities Administrator, the Seller, or
the Master Servicer, as the case may be.

        Section 11.06. GOVERNING LAW. THIS AGREEMENT AND THE CERTIFICATES SHALL
BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO ITS CONFLICT OF LAWS RULES AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

        Section 11.07. NOTICES. All demands and notices hereunder shall be in
writing and shall be deemed given when delivered at (including delivery by
facsimile) or mailed by registered mail, return receipt requested, postage
prepaid, or by recognized overnight courier, to (i) in the case of the Seller,
245 Park Avenue, New York, New York 10167, Attention: Vice President-Servicing,
telecopier number: (212) 272-5591, or to such other address as may hereafter be
furnished to the other parties hereto in writing; (ii) in the case of the
Trustee, at its Corporate Trust Office, or such other address as may hereafter
be furnished to the other parties hereto in writing; (iii) in the case of the
EMC, 245 Park Avenue, New York, New York 10167, Attention: Vice
President-Servicing, telecopier number: (212) 272-5591, or to such other address
as may hereafter be furnished to the other parties hereto in writing; (iv) in
the case of the Master Servicer or Securities Administrator, Wells Fargo Bank
Minnesota, National Association, 11000 Broken Land Parkway, Columbia, Maryland
21044 (Attention: BART 2001-6), facsimile no.: (410) 884-2360, or such other
address as may hereafter be furnished to the other parties hereto in writing; or
(v) in the case of the Rating Agencies, Moody's Investors Service, Inc., 99
Church Street, 4th Floor, New York, New York 10004, and Standard & Poor's, a
division of the McGraw-Hill Companies, Inc., 55 Water Street, 41st Floor, New
York, New York, 10041, Attention: Residential Mortgage Surveillance. Any notice
delivered to the Seller, the Master Servicer, the Securities Administrator or
the Trustee under this Agreement shall be effective only upon receipt. Any
notice required or permitted to be mailed to a Certificateholder, unless
otherwise provided herein, shall be given by first-class mail, postage prepaid,
at the address of such Certificateholder as shown in the Certificate Register.
Any notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have been duly given when mailed, whether or not the
Certificateholder receives such notice.

                                      -118-

<PAGE>

        Section 11.08. SEVERABILITY OF PROVISIONS. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severed from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the holders thereof.

        Section 11.09. SUCCESSORS AND ASSIGNS. The provisions of this Agreement
shall be binding upon and inure to the benefit of the respective successors and
assigns of the parties hereto.

        Section 11.10. ARTICLE AND SECTION HEADINGS. The article and section
headings herein are for convenience of reference only, and shall not limit or
otherwise affect the meaning hereof.

        Section 11.11. COUNTERPARTS. This Agreement may be executed in two or
more counterparts each of which when so executed and delivered shall be an
original but all of which together shall constitute one and the same instrument.

        Section 11.12. NOTICE TO RATING AGENCIES. The article and section
headings herein are for convenience of reference only, and shall not limited or
otherwise affect the meaning hereof. The Trustee shall promptly provide notice
to each Rating Agency with respect to each of the following of which it has
actual knowledge:

        1.   Any material change or amendment to this Agreement or the Servicing
Agreements;

        2.     The occurrence of any Event of Default that has not been cured;

        3.     The resignation or termination of the Master Servicer, the
Trustee or the Securities Administrator;

        4.     The repurchase or substitution of Mortgage Loans;

        5.     The final payment to Certificateholders; and

        6.     Any change in the location of the Master Servicer Collection
Account or the Distribution Account.

                                      -119-

<PAGE>

        IN WITNESS WHEREOF, the Seller, the Trustee, the Master Servicer and the
Securities Administrator have caused their names to be signed hereto by their
respective officers thereunto duly authorized as of the day and year first above
written.

                                   STRUCTURED ASSET MORTGAGE
                                   INVESTMENTS INC., as Seller

                                   By:
                                      ------------------------------------------
                                         Name:  Baron Silverstein
                                         Title:    Vice President

                                   LASALLE BANK NATIONAL ASSOCIATION, as
                                   Trustee

                                   By:
                                      ------------------------------------------
                                         Name:
                                         Title:

                                   WELLS FARGO BANK MINNESOTA, NATIONAL
                                   ASSOCIATION, as Master Servicer

                                   By:
                                      ------------------------------------------
                                         Name: Peter J. Masterman
                                         Title:   Vice President

                                   WELLS FARGO BANK MINNESOTA, NATIONAL
                                      ASSOCIATION, as Securities Administrator

                                   By:
                                      ------------------------------------------
                                         Name: Peter J. Masterman
                                         Title:   Vice President

                                   EMC MORTGAGE CORPORATION

                                   By:
                                      ------------------------------------------
                                         Name:
                                         Title:

<PAGE>

Accepted and Agreed as to Sections 2.01, 2.02, 2.03, 2.04 and 9.09(c) in its
  capacity as Mortgage Loan Seller

EMC MORTGAGE CORPORATION

By:
   ------------------------------------------
      Name:
      Title:

<PAGE>

STATE OF NEW YORK                  )
                                   ) ss.:
COUNTY OF NEW YORK                 )

        On the 30th day of August, 2001 before me, a notary public in and for
said State, personally appeared ____________________, known to me to be a
____________________ of Structured Asset Mortgage Investments Inc., the
corporation that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

        IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                           ---------------------------
                                                 Notary Public
[Notarial Seal]

<PAGE>

STATE OF ILLINOIS                  )
                                   ) ss.:
COUNTY OF                          )

        On the 30th day of August, 2001 before me, a notary public in and for
said State, personally appeared ____________________, known to me to be a
____________________ of LaSalle Bank National Association, the corporation that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

        IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                           ---------------------------
                                                 Notary Public
[Notarial Seal]

<PAGE>

STATE OF MARYLAND                  )
                                   ) ss.:
COUNTY OF HOWARD                   )

        On the 30th day of August, 2001 before me, a notary public in and for
said State, personally appeared Peter J. Masterman, known to me to be a Vice
President of Wells Fargo Bank Minnesota, National Association, the corporation
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

        IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                           ---------------------------
                                                 Notary Public

[Notarial Seal]

<PAGE>

STATE OF MARYLAND                  )
                                   ) ss.:
COUNTY OF HOWARD                   )

        On the 30th day of August, 2001 before me, a notary public in and for
said State, personally appeared Peter J. Masterman, known to me to be a Vice
President of Wells Fargo Bank Minnesota, National Association, the corporation
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

        IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                           ---------------------------
                                                 Notary Public

[Notarial Seal]

<PAGE>

 STATE OF NEW YORK                 )
                                   ) ss.:
COUNTY OF NEW YORK                 )

        On the 30th day of August, 2001 before me, a notary public in and for
said State, personally appeared ______________________, known to me to be a
____________________ of EMC Mortgage Corporation, the corporation that executed
the within instrument, and also known to me to be the person who executed it on
behalf of said corporation, and acknowledged to me that such corporation
executed the within instrument.

        IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                           ---------------------------
                                                 Notary Public
[Notarial Seal]

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